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NBCUniversal Media, LLC
lion of outstanding debt securities of Comcast and CCCL Parent. We also fully and unconditionally guarantee
the Comcast revolving credit facility, of which no amounts were outstanding as of December 31, 2015.
We do not, however, guarantee the obligations of NBCUniversal Enterprise with respect to its $4 billion
aggregate principal amount of senior notes, $1.35 billion revolving credit facility and associated commercial
paper program, or $725 million liquidation preference of Series A cumulative preferred stock.
Note 11: Fair Value Measurements
The accounting guidance related to financial assets and financial liabilities (“financial instruments”) establishes
a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valu-
ation techniques (market approach, income approach and cost approach). Our assessment of the
significance of a particular input to the fair value measurement requires judgment and may affect the valuation
of financial instruments and their classification within the fair value hierarchy.
Our financial instruments that are accounted for at fair value on a recurring basis were not material for all
periods presented.
As a result of the acquisition of the Universal Orlando theme park in 2011, we assumed a contractual obliga-
tion that involves an interest held by a third party in the revenue of certain theme parks. The arrangement
provides the counterparty with the right to periodic payments associated with current period revenue and,
beginning in 2017, the option to require us to purchase the interest for cash in an amount based on a con-
tractually specified formula. The arrangement was recognized at fair value at the time of the acquisition and
the fair value has been adjusted periodically since the acquisition with the expectation that the arrangement
would be settled in 2017, or shortly thereafter. It has a current carrying value of $1.1 billion and adjustments
to fair value, as well as the periodic payments, have been presented in other income (expense), net in our
consolidated statement of income.
As a result of the continuing process of obtaining additional information and revising estimates, including in
2015 the estimated impact on the arrangement of the Universal Studios Japan transaction and the planned
development of a theme park in China, we no longer expect the settlement of the arrangement in 2017, or
shortly thereafter. Accordingly, in the fourth quarter of 2015, we concluded that we should no longer adjust
the arrangement to fair value and it is no longer presented in the recurring fair value measurements table. We
also concluded that the amounts that are payable based on current period revenue should be presented in
other operating and administrative expenses. We believe these changes are preferable because they better
reflect the economic substance of the arrangement as a revenue participation similar to those that exist in our
film and television agreements. The change in our method of accounting coupled with the change in like-
lihood of the settlement result in the method being applied prospectively, similar to a change in estimate. See
Note 17 for the treatment of this change in method in our segment reporting presentation.
Nonrecurring Fair Value Measurements
We have assets that are required to be recorded at fair value on a nonrecurring basis when certain circum-
stances occur. In the case of film, television or stage play production costs, when an event or change in
circumstance occurs that may indicate that the fair value of a production is less than its unamortized costs,
we determine the fair value of the production and record an adjustment for the amount by which the
unamortized capitalized costs exceed the production’s fair value. The estimated fair value of a production is
based on Level 3 inputs that primarily use an analysis of future expected cash flows. Adjustments to cap-
italized film and stage play production costs of $42 million, $26 million and $167 million were recorded in
2015, 2014 and 2013, respectively.
Comcast 2015 Annual Report on Form 10-K 164