Comcast 2014 Annual Report Download - page 97

Table of Contents
Comcast Corporation
Theme Parks Segment
Our Theme Parks segment generates revenue primarily from theme park attendance and per capita spending at our Universal
theme parks in Orlando, Florida and Hollywood, California, as well as from licensing and other fees. We recognize revenue from
advance theme park ticket sales when the tickets are used. For annual passes, we recognize revenue on a straight-
line basis over
the annual period following the initial activation date.
Cable Communications Programming Expenses
Cable Communications programming expenses are the fees we pay to license the programming we distribute to our video
customers. Programming is acquired for distribution to our video customers, generally under multiyear distribution agreements, with
rates typically based on the number of customers that receive the programming, channel positioning and the extent of distribution.
From time to time, these contracts expire and programming continues to be provided under interim arrangements while the parties
negotiate new contractual terms, sometimes with effective dates that affect prior periods. While payments are typically made under
the prior contract’
s terms, the amount of programming expenses recorded during these interim arrangements is based on our
estimates of the ultimate contractual terms expected to be negotiated. Differences between actual amounts determined upon
resolution of negotiations and amounts recorded during these interim arrangements are recorded in the period of resolution.
When our Cable Communications segment receives incentives from cable networks for the licensing of their programming, we defer
a portion of these incentives, which are included in other current and noncurrent liabilities, and recognize them over the term of the
contract as a reduction to programming expenses.
Advertising Expenses
Advertising costs are expensed as incurred.
Cash Equivalents
The carrying amounts of our cash equivalents approximate their fair values. Our cash equivalents consist primarily of money market
funds and U.S. government obligations, as well as commercial paper and certificates of deposit with maturities of three months or
less when purchased.
Derivative Financial Instruments
We use derivative financial instruments to manage our exposure to the risks associated with fluctuations in interest rates, foreign
exchange rates and equity prices. Our objective is to manage the financial and operational exposure arising from these risks by
offsetting gains and losses on the underlying exposures with gains and losses on the derivatives used to economically hedge them.
Our derivative financial instruments are recorded in our consolidated balance sheet at fair value. See Note 7 for additional
information on the derivative component of our prepaid forward sale agreements. The impact of other derivative financial
instruments on our consolidated financial statements was not material for all periods presented.
Asset Retirement Obligations
Certain of our cable franchise agreements and lease agreements contain provisions requiring us to restore facilities or remove
property in the event that the franchise or lease agreement is not renewed. We expect to continually renew our cable franchise
agreements and therefore cannot reasonably estimate any liabilities associated with such agreements. A remote possibility exists
that franchise agreements could be terminated unexpectedly, which could result in us incurring significant expense in complying
with restoration or removal provisions. The disposal obligations related to our properties are not material to our consolidated
financial statements. We do not have any significant liabilities related to asset retirements recorded in our consolidated financial
statements.
Comcast 2014 Annual Report on Form 10
-
K
92