Inventories and Theatrical Film and Television Production Costs

12 Months Ended

Dec. 31, 2019

Inventories and Theatrical Film and Television Production Costs

NOTE 11. INVENTORIES AND THEATRICAL FILM AND TELEVISION PRODUCTION COSTS

Film and television production costs are stated at the lower of cost, less accumulated amortization, or fair value and include the unamortized cost of completed theatrical films and television episodes, theatrical films and television series in production and undeveloped film and television rights. The amount of capitalized film and television production costs recognized as broadcast, programming and operations expenses for a given period is determined using the film forecast computation method. As of January 1, 2019, we reclassified $2,274 of our programming inventory costs from “Other current assets” to “Other Assets” in connection with the adoption of ASU 2019-02 (see Note 1).

The following table summarizes inventories and theatrical film and television production costs as of December 31:

		2019		2018
Inventories:
Programming costs, less amortization¹		$	4,599	$	4,097
Other inventory, primarily DVD and Blu-ray Discs			96		146
Total inventories			4,695		4,243
Less: current portion of inventory			(96)		(2,420)
Total noncurrent inventories			4,599		1,823

Theatrical film production costs:²
Released, less amortization			392		451
Completed and not released			437		435
In production			1,475		866
Development and pre-production			171		159

Television production costs:²
Released, less amortization			1,752		965
Completed and not released			1,344		1,087
In production			2,207		1,898
Development and pre-production			57		29
Total theatrical film and television production costs			7,835		5,890
Total noncurrent inventories and theatrical film and television production costs		$	12,434	$	7,713
¹	Includes the costs of certain programming rights, primarily sports, for which payments have been made prior to the related
	rights being received.
²	Does not include $5,967, and $7,826 of acquired film and television library intangible assets as of December 31, 2019, and 2018,
	respectively, which are included in “Other Intangible Assets – Net” on our consolidated balance sheet.

Approximately 95% of unamortized film costs for released theatrical and television content are expected to be amortized within three years from December 31, 2019. In addition, approximately $2,195 of the film costs of released and completed and not released theatrical and television product are expected to be amortized during 2020.