Comcast 2014 Annual Report Download - page 167

Table of Contents
NBCUniversal Media, LLC
Note 7: Investments
Equity Method
We use the equity method to account for investments in which we have the ability to exercise significant influence over the
investee’
s operating and financial policies or where we hold significant partnership or LLC interests. Equity method investments are
recorded at cost and are adjusted to recognize (1) our proportionate share of the investee’
s net income or loss after the date of
investment, (2) amortization of the recorded investment that exceeds our share of the book value of the investee’
s net assets,
(3) additional contributions made and dividends received, and (4) impairments resulting from other-than-
temporary declines in fair
value. Gains or losses on the sale of equity method investments are recorded to other income (expense), net. If an equity method
investee were to issue additional securities that would change our proportionate share of the entity, we would recognize the
change, if any, as a gain or loss in our consolidated statement of income.
The Weather Channel
In June 2013, we received a distribution from The Weather Channel Holding Corp. (“The Weather Channel”)
of $152 million, of
which $128 million was recorded as a return of our investment in The Weather Channel and included under the caption
“
return of
capital from investees” in our consolidated statement of cash flows.
Hulu
In July 2013, we entered into an agreement to provide capital contributions totaling $247 million to Hulu, LLC (“Hulu”),
which we
had previously accounted for as a cost method investment. This represented an agreement to provide our first capital contribution
to Hulu since Comcast acquired its interest in Hulu as part of the joint venture transaction; therefore, we began to apply the equity
method of accounting for this investment. The change in the method of accounting for this investment required us to recognize our
proportionate share of Hulu’s accumulated losses from the date of the joint venture transaction through July 2013.
Cost Method
We use the cost method to account for investments not accounted for under the fair value method or the equity method.
Impairment Testing of Investments
We review our investment portfolio each reporting period to determine whether there are identified events or circumstances that
would indicate there is a decline in the fair value that would be considered other than temporary. For our nonpublic investments, if
there are no identified events or circumstances that would have a significant adverse effect on the fair value of the investment, then
the fair value is not estimated. If an investment is deemed to have experienced an other-than-
temporary decline below its cost
basis, we reduce the carrying amount of the investment to its quoted or estimated fair value, as applicable, and establish a new
cost basis for the investment. For our available-for-
sale securities and cost method investments, we record the impairment to
investment income (loss), net. For our equity method investments, we record the impair-
December 31 (in millions)
2014
2013
Fair Value Method
$
10
$
11
Equity Method:
The Weather Channel
335
333
Hulu
167
187
Other
338
332
840
852
Cost Method
32
21
Total investments
$
882
$
884
Comcast 2014 Annual Report on Form 10
-
K
162