Comcast 2015 Annual Report Download - page 93

Comcast Corporation
Upon the occurrence of an event or a change in circumstance that was known or knowable as of the balance
sheet date and that indicates the fair value of a film is less than its unamortized costs, we determine the fair
value of the film and record an impairment charge for the amount by which the unamortized capitalized costs
exceed the film’s fair value.
We enter into cofinancing arrangements with third parties to jointly finance or distribute certain of our film
productions. Cofinancing arrangements can take various forms, but in most cases involve the grant of an
economic interest in a film to an investor. The number of investors and the terms of these arrangements can
vary, although investors generally assume full risk for the portion of the film acquired in these arrangements.
We account for the proceeds received from a third-party investor under these arrangements as a reduction to
our capitalized film costs. In these arrangements, the investor owns an undivided copyright interest in the
film, and therefore in each period we record either a charge or a benefit to programming and production
expenses to reflect the estimate of the third-party investor’s interest in the profit or loss of the film. The esti-
mate of the third-party investor’s interest in the profit or loss of a film is determined using the ratio of actual
revenue earned to date to the ultimate revenue expected to be recognized over the film’s useful life.
We capitalize the costs of programming content that we license but do not own, including rights to multiyear,
live-event sports programming, at the earlier of when payments are made for the programming or when the
license period begins and the content is available for use. We amortize capitalized programming costs as the
associated programs are broadcast. We amortize multiyear, live-event sports programming rights using the
ratio of the current period revenue to the estimated ultimate revenue or under the terms of the contract.
Acquired programming costs are recorded at the lower of unamortized cost or net realizable value on a pro-
gram by program, package, channel or daypart basis. A daypart is an aggregation of programs broadcast
during a particular time of day or programs of a similar type. Programming acquired by our Cable Networks
segment is primarily tested on a channel basis for impairment, whereas programming acquired by our Broad-
cast Television segment is tested on a daypart basis. If we determine that the estimates of future cash flows
are insufficient or if there is no plan to broadcast certain programming, we recognize an impairment charge to
programming and production expenses.
Note 7: Investments
December 31 (in millions) 2015 2014
Fair Value Method $ 167 $ 662
Equity Method:
The Weather Channel —335
Hulu 184 167
Other 494 517
678 1,019
Cost Method:
AirTouch 1,583 1,568
Other 902 488
2,485 2,056
Total investments 3,330 3,737
Less: Current investments 106 602
Noncurrent investments $ 3,224 $ 3,135
Comcast 2015 Annual Report on Form 10-K 90