Comcast 2014 Annual Report Download - page 164

Table of Contents
NBCUniversal Media, LLC
Note 5: Related Party Transactions
In the ordinary course of our business, we enter into transactions with Comcast.
We generate revenue from Comcast primarily from the distribution of our cable network programming and, to a lesser extent, the
sale of advertising and the licensing of our owned programming, and we incur expenses primarily related to various support
services provided by Comcast to us.
In 2013, as part of the Comcast cash management process, we and Comcast entered into a revolving credit agreement under
which we can borrow up to $3 billion from Comcast and Comcast can borrow up to $3 billion from us. Amounts owed by us to
Comcast under the revolving credit agreement, including accrued interest, are presented under the caption “
note payable to
Comcast”
in our consolidated balance sheet. The revolving credit agreements bear interest at floating rates equal to the interest
rate under the Comcast and Comcast Cable Communications, LLC revolving credit facility (the “Comcast revolving credit facility”
).
The interest rate on the Comcast revolving credit facility consists of a base rate plus a borrowing margin that is determined based
on Comcast’s credit rating. As of December 31, 2014, the borrowing margin for London Interbank Offered Rate-
based borrowings
was 1.00%.
In addition, Comcast is the counterparty to one of our contractual obligations. As of both December 31, 2014 and 2013, the carrying
value of the liability associated with this contractual obligation was $383 million.
The following tables present transactions with Comcast and its consolidated subsidiaries that are included in our consolidated
financial statements.
Consolidated Balance Sheet
Consolidated Statement of Income
Distributions to NBCUniversal Holdings
In addition to the transactions presented in the table above, we make distributions to NBCUniversal Holdings on a periodic basis to
enable its owners to meet their obligations to pay taxes on taxable income generated by our businesses. We also make quarterly
distributions to NBCUniversal Holdings to enable it to make its required quarterly payments to NBCUniversal Enterprise at an initial
annual rate of 8.25% on the $9.4 billion aggregate liquidation preference of its preferred units. These distributions are presented
under the caption “distributions to member”
in our consolidated statement of cash flows. Following the close of the redemption
transaction, none of these distributions to NBCUniversal Holdings are attributable to GE.
December 31 (in millions)
2014
2013
Transactions with Comcast and Consolidated Subsidiaries
Receivables, net
$
229
$
228
Accounts payable and accrued expenses related to trade creditors
$
47
$
56
Accrued expenses and other current liabilities
$
8
$
37
Note payable to Comcast
$
865
$
799
Other noncurrent liabilities
$
383
$
383
Year ended December 31 (in millions)
2014
2013
2012
Transactions with Comcast and Consolidated Subsidiaries
Revenue
$
1,315
$
1,262
$
1,228
Operating costs and expenses
$
(162
)
$
(190
)
$
(175
)
Other income (expense)
$
(43
)
$
—
$
—
159
Comcast 2014 Annual Report on Form 10
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