Comcast 2015 Annual Report Download - page 155

NBCUniversal Media, LLC
Filmed Entertainment Segment
Our Filmed Entertainment segment generates revenue primarily from the worldwide distribution of our pro-
duced and acquired films for exhibition in movie theaters, from the licensing of our owned and acquired films
through various distribution platforms, and from the sale of our owned and acquired films on standard-
definition video discs and Blu-ray discs (together, “DVDs”) and through digital distribution services. Our
Filmed Entertainment segment also generates revenue from producing and licensing live stage plays, from the
distribution of filmed entertainment produced by third parties, and from Fandango, our movie ticketing and
entertainment business. We recognize revenue from the distribution of films to movie theaters when the films
are exhibited. We recognize revenue from the licensing of a film when the film is available for use by the
licensee, and when certain other conditions are met. We recognize revenue from DVD sales, net of estimated
returns and customer incentives, on the date that DVDs are delivered to and made available for sale by
retailers.
Theme Parks Segment
Our Theme Parks segment generates revenue primarily from ticket sales and guest spending at our Universal
theme parks in Orlando, Florida; Hollywood, California; and, as of November 2015, Osaka, Japan, 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 period following the acti-
vation date.
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 certifi-
cates 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
foreign exchange rates and interest rates. 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. The impact
of our derivative financial instruments on our consolidated financial statements was not material for all periods
presented.
Note 3: Recent Accounting Pronouncements
Revenue Recognition
In May 2014, the Financial Accounting Standards Board (“FASB”) updated the accounting guidance related to
revenue recognition. The updated accounting guidance provides a single, contract-based revenue recognition
model to help improve financial reporting by providing clearer guidance on when an entity should recognize
revenue, and by reducing the number of standards to which an entity has to refer. In July 2015, the FASB
voted to defer the effective date by one year to December 15, 2017 for annual reporting periods beginning
after that date. The updated accounting guidance provides companies with alternative methods of adoption.
We are currently in the process of determining the impact that the updated accounting guidance will have on
our consolidated financial statements and our method of adoption.
Comcast 2015 Annual Report on Form 10-K 152