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Table of Contents
NBCUniversal Media, LLC
Capitalization of Film and Television Costs
We capitalize film and television production costs, including direct costs, production overhead, print costs, development costs and
interest. We amortize capitalized film and television production costs, including acquired libraries, and accrue costs associated with
participation and residual payments to programming and production expense. We generally record the amortization and the
accrued costs using the individual film forecast computation method, which amortizes such costs in the same ratio as the
associated ultimate revenue. Estimates of total revenue and total costs are based on anticipated release patterns, public
acceptance and historical results for similar productions. Unamortized film and television costs, including acquired film and
television libraries, are stated at the lower of unamortized cost or fair value. We do not capitalize costs related to the distribution of
a film to movie theaters or the licensing or sale of a film or television production, which are primarily costs associated with the
marketing and distribution of film and television programming.
In determining the estimated lives and method of amortization of acquired film and television libraries, we generally use the method
and the life that most closely follow the undiscounted cash flows over the estimated life of the asset.
Upon the occurrence of an event or a change in circumstance that was known or knowable as of the balance sheet date and that
indicates the fair value of a film is less than its unamortized costs, we determine the fair value of the film and record an impairment
charge for the amount by which the unamortized capitalized costs exceed the film’s fair value.
We enter into cofinancing arrangements with third parties to jointly finance or distribute certain of our film productions. Cofinancing
arrangements can take various forms, but in most cases involve the grant of an economic interest in a film to an investor. The
number of investors and the terms of these arrangements can vary, although investors generally assume full risk for the portion of
the film acquired in these arrangements. We account for the proceeds received from a third-
party investor under these
arrangements as a reduction to our capitalized film costs. In these arrangements, the investor owns an undivided copyright interest
in the film, and therefore in each period we record either a charge or a benefit to programming and production expense to reflect
the estimate of the third-party investor’s interest in the profit or loss of the film. The estimate of the third-party investor
s interest in
the profit or loss of a film is determined using the ratio of actual revenue earned to date to the ultimate revenue expected to be
recognized over the film’s useful life.
We capitalize the costs of programming content that we license but do not own, including rights to multiyear, live-
event sports
programming, at the earlier of when payments are made for the programming or when the license period begins and the content is
available for use. We amortize capitalized programming costs as the associated programs are broadcast. We amortize multiyear,
live-
event sports programming rights using the ratio of the current period revenue to the estimated total remaining revenue or under
the terms of the contract.
Acquired programming costs are recorded at the lower of unamortized cost or net realizable value on a program by program,
package, channel or daypart basis. A daypart is an aggregation of programs broadcast during a particular time of day or programs
of a similar type. Acquired programming used in our Cable Networks segment is primarily tested on a channel basis for impairment,
whereas acquired programming used in our Broadcast Television segment is tested on a daypart basis. If we determine that the
estimates of future cash flows are insufficient or if there is no plan to broadcast certain programming, we recognize an impairment
charge to programming and production expense.
161
Comcast 2014 Annual Report on Form 10-
K