Comcast 2015 Annual Report Download - page 156

NBCUniversal Media, LLC
Consolidations
In February 2015, the FASB updated the accounting guidance related to consolidation under the variable
interest entity and voting interest entity models. The updated accounting guidance modifies the consolidation
guidance for VIEs, limited partnerships and similar legal entities. The updated guidance is effective for us as
of January 1, 2016. The updated accounting guidance provides companies with alternative methods of adop-
tion. We do not expect the updated accounting guidance to have a material impact on our consolidated
financial statements.
Debt Issuance Costs
In April 2015, the FASB updated the accounting guidance related to the balance sheet presentation of debt
issuance costs. The updated accounting guidance requires that debt issuance costs be presented as a direct
deduction from the associated debt obligation. We have adopted this guidance as of December 31, 2015 and
as a result we have reclassified unamortized debt issuance costs of $12 million as of December 31, 2014
from other noncurrent assets to a reduction of long-term debt on our consolidated balance sheet. As of
December 31, 2015, unamortized debt issuance costs included in long-term debt was $11 million.
Deferred Income Taxes
In November 2015, the FASB updated the accounting guidance related to the balance sheet presentation of
deferred taxes. The updated accounting guidance requires that all deferred tax liabilities and assets be classi-
fied as noncurrent in a classified balance sheet. The current requirement that deferred tax liabilities and
assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by
the amendments in this update. We have adopted this guidance prospectively as of December 31, 2015.
Therefore, prior periods have not been adjusted to reflect this adoption. The adoption of the updated account-
ing guidance did not have a material impact on our consolidated balance sheet.
Note 4: Significant Transactions
2015
Universal Studios Japan
On November 13, 2015, we acquired a 51% economic interest in Universal Studios Japan for $1.5 billion.
The acquisition was funded through cash on hand and borrowings under our commercial paper program.
Universal Studios Japan is a VIE based on the governance structure and we consolidate Universal Studios
Japan as we have the power to direct activities that most significantly impact its economic performance.
There are no liquidity arrangements, guarantees, or other financial commitments between us and Universal
Studios Japan, and therefore our maximum risk of financial loss is our 51% interest. Universal Studios
Japan’s results of operations are reported in our Theme Parks segment following the acquisition date.
Preliminary Allocation of Purchase Price
Due to the limited amount of time since the date of acquisition, the assets and liabilities of Universal Studios
Japan were recorded at their historical carrying values. We will adjust these amounts to fair value as valu-
ations are completed and we obtain information necessary to complete the analyses, but no later than one
year from the acquisition date. The 49% noncontrolling interest in Universal Studios Japan is recorded in the
equity section of our consolidated financial statements and has been recorded based on the total value of
Universal Studios Japan implied in the transaction. For purposes of this preliminary allocation, the excess of
the total value implied in the transaction over the historical carrying value has been recorded as goodwill.
153 Comcast 2015 Annual Report on Form 10-K