Comcast 2015 Annual Report Download - page 96

Comcast Corporation
In 2015, 2014 and 2013, we recognized our proportionate share of losses of $106 million, $20 million and
$142 million, respectively, related to our investment in Hulu.
Cost Method
We use the cost method to account for investments not accounted for under the fair value method or the
equity method.
Vox and BuzzFeed
In September 2015, NBCUniversal made an additional investment in Vox Media, Inc. (“Vox Media”) and
acquired an interest in BuzzFeed, Inc. (“BuzzFeed”) for $200 million each in cash. Vox Media is a digital
media company comprised of eight distinct brands. BuzzFeed is a global media company that produces and
distributes original news, entertainment and videos.
AirTouch
We hold two series of preferred stock of Verizon Americas, Inc., formerly known as AirTouch Communica-
tions, Inc. (“AirTouch”), a subsidiary of Verizon Communications Inc., which are redeemable in April 2020. As
of both December 31, 2015 and 2014, the estimated fair value of the AirTouch preferred stock was $1.7 bil-
lion.
The dividend and redemption activity of the AirTouch preferred stock determines the dividend and redemption
payments associated with substantially all of the preferred shares issued by one of our consolidated sub-
sidiaries, which is a VIE. The subsidiary has three series of preferred stock outstanding with an aggregate
redemption value of $1.75 billion. Substantially all of the AirTouch preferred stock is redeemable in April 2020
at a redemption value of $1.65 billion. As of both December 31, 2015 and 2014, the two series of
redeemable subsidiary preferred shares were recorded at $1.6 billion, and those amounts are included in
other noncurrent liabilities. As of both December 31, 2015 and 2014, the liability related to the redeemable
subsidiary preferred shares had an aggregate estimated fair value of $1.7 billion. The estimated fair values of
the AirTouch preferred stock and redeemable subsidiary preferred shares are based on Level 2 inputs that
use pricing models whose inputs are derived primarily from or corroborated by observable market data
through correlation or other means for substantially the full term of the financial instrument. The one non-
redeemable series of subsidiary preferred shares was recorded at $100 million as of both December 31, 2015
and 2014, and those amounts are included in noncontrolling interests in our consolidated balance sheet. The
carrying amount of the nonredeemable subsidiary preferred stock approximates its fair value.
Impairment Testing of Investments
We review our investment portfolio each reporting period to determine whether there are identified events or
circumstances that would indicate there is a decline in the fair value that would be considered other than
temporary. For our nonpublic investments, if there are no identified events or circumstances that would have
a significant adverse effect on the fair value of the investment, then the fair value is not estimated. If an
investment is deemed to have experienced an other-than-temporary decline below its cost basis, we reduce
the carrying amount of the investment to its quoted or estimated fair value, as applicable, and establish a new
cost basis for the investment. For our AFS and cost method investments, we record the impairment to
investment income (loss), net. For our equity method investments, we record the impairment to other income
(expense), net. In 2013, we recorded $249 million of impairment charges to our equity method investments,
which primarily related to a regional sports cable network based in Houston, Texas.
93 Comcast 2015 Annual Report on Form 10-K