Comcast 2015 Annual Report Download - page 118

Comcast Corporation
(b) Beginning in 2014, Fandango, our movie ticketing and entertainment business that was previously presented in our Cable Networks
segment, is now presented in the Filmed Entertainment segment to reflect the change in our management reporting presentation. Due to
immateriality, prior period amounts have not been adjusted.
(c) The revenue and operating costs and expenses associated with our broadcast of the 2015 Super Bowl were reported in our Broadcast
Television segment. The revenue and operating costs and expenses associated with our broadcast of the 2014 Sochi Olympics were
reported in our Cable Networks and Broadcast Television segments.
(d) As disclosed in Note 11, we changed our method of accounting for a contractual obligation that involves an interest in the revenue of
certain theme parks. As a result of the change, beginning in the fourth quarter of 2015, amounts payable based on current period rev-
enue are presented in operating costs and expenses. Amounts paid through the third quarter of 2015 were included in other income
(expense), net in our consolidated statement of income. For segment reporting purposes, we have adjusted periods prior to the fourth
quarter of 2015 to reflect management reporting presentation for this expense on a consistent basis for all periods in the Theme Parks
segment, which resulted in an offsetting adjustment in NBCUniversal Eliminations. Therefore, we have reduced our Theme Parks segment
operating income before depreciation and amortization and operating income by $63 million, $72 million and $61 million in 2015, 2014
and 2013, respectively, while corresponding amounts have been reflected in NBCUniversal Eliminations to reconcile to consolidated
operating income.
(e) NBCUniversal Headquarters and Other activities include costs associated with overhead, allocations, personnel costs and headquarter
initiatives.
(f) Included in Eliminations are transactions that our segments enter into with one another. The most common types of transactions are the
following:
• our Cable Networks and Broadcast Television segments generate revenue by selling programming to our
Cable Communications segment, which represents a substantial majority of the revenue elimination amount
• our Cable Communications segment generates revenue by selling advertising and by selling the use of satellite
feeds to our Cable Networks segment
• our Filmed Entertainment and Broadcast Television segments generate revenue by licensing content to our
Cable Networks segment
• our Cable Communications segment receives incentives offered by our Cable Networks segment in con-
nection with its distribution of the Cable Networks’ content that are recorded as a reduction to programming
expenses
(g) Revenue from customers located outside of the United States, primarily in Europe and Asia, in 2015, 2014 and 2013 was $5.8 billion,
$4.4 billion and $4.8 billion, respectively. No single customer accounted for a significant amount of revenue in any period.
(h) We use operating income (loss) before depreciation and amortization, excluding impairment charges related to fixed and intangible assets
and gains or losses from the sale of assets, if any, as the measure of profit or loss for our operating segments. This measure eliminates
the significant level of noncash depreciation and amortization expense that results from the capital-intensive nature of certain of our busi-
nesses and from intangible assets recognized in business combinations. Additionally, it is unaffected by our capital structure or
investment activities. We use this measure to evaluate our consolidated operating performance and the operating performance of our
operating segments and to allocate resources and capital to our operating segments. It is also a significant performance measure in our
annual incentive compensation programs. We believe that this measure is useful to investors because it is one of the bases for comparing
our operating performance with that of other companies in our industries, although our measure may not be directly comparable to sim-
ilar measures used by other companies. This measure should not be considered a substitute for operating income (loss), net income
(loss) attributable to Comcast Corporation, net cash provided by operating activities, or other measures of performance or liquidity we
have reported in accordance with GAAP.
115 Comcast 2015 Annual Report on Form 10-K