v3.6.0.2
Significant Transactions
12 Months Ended
Dec. 31, 2016
Business Acquisition [Line Items]  
Significant Transactions
Note 5: Significant Transactions
2016
DreamWorks Animation
On August 22, 2016, we acquired all of the outstanding stock of DreamWorks Animation for $3.8 billion. DreamWorks Animation’s stockholders received $41 in cash for each share of DreamWorks Animation common stock. DreamWorks Animation creates animated feature films, television series and specials, live entertainment and related consumer products. The results of operations for DreamWorks Animation are reported in our Filmed Entertainment segment following the acquisition date.
Preliminary Allocation of Purchase Price
The transaction was accounted for under the acquisition method of accounting and, accordingly, the assets and liabilities are to be recorded at their fair market values as of the acquisition date. We recorded the acquired assets and liabilities of DreamWorks Animation at their estimated fair values based on preliminary valuation analyses. In valuing acquired assets and liabilities, fair value estimates are primarily based on Level 3 inputs including future expected cash flows, market rate assumptions and discount rates. The fair value of the assumed debt was primarily based on quoted market values. The fair value of the liability related to a tax receivable agreement that DreamWorks Animation had previously entered into with one of its former stockholders (the “tax receivable agreement”) was based on the contractual settlement provisions in the agreement. Further, we recorded the deferred income taxes based on our estimates of the tax basis of the acquired net assets and the valuation allowances based on the expected use of net operating loss carryforwards. The goodwill is not deductible for tax purposes. We will adjust the assets and liabilities as valuations are completed and we obtain information necessary to complete the analyses, but no later than one year from the acquisition date.
The table below presents the preliminary allocation of the purchase price to the assets and liabilities of DreamWorks Animation.
Preliminary Allocation of Purchase Price
 
(in millions)
 
Film and television costs (see Note 6)
$
854

Intangible assets (see Note 9)
164

Working capital
248

Debt (see Note 10)
(381
)
Tax receivable agreement
(146
)
Deferred income taxes (see Note 14)
366

Other noncurrent assets and liabilities
137

Identifiable net assets (liabilities) acquired
1,242

Noncontrolling interest
(89
)
Goodwill (see Note 9)
2,620

Cash consideration transferred
$
3,773


The tax receivable agreement was settled immediately following the acquisition and the payment was recorded as an operating activity in our consolidated statement of cash flows. In addition, we repaid all of the assumed debt of DreamWorks Animation.
Revenue and net income attributable to the acquisition of DreamWorks Animation were not material for 2016.
2015
Universal Studios Japan
On November 13, 2015, NBCUniversal acquired a 51% economic interest in Universal Studios Japan for $1.5 billion.
Universal Studios Japan is a VIE based on the governance structure and we consolidate Universal Studios Japan since 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 NBCUniversal’s 51% interest. Universal Studios Japan’s results of operations are reported in our Theme Parks segment following the acquisition date.
Allocation of Purchase Price
The transaction was accounted for under the acquisition method of accounting and, accordingly, the acquired assets and liabilities and the 49% noncontrolling interest were recorded at their estimated fair values. In 2016, we updated the allocation of the purchase price for Universal Studios Japan based on final valuation analyses, which primarily resulted in increases to property and equipment and intangible assets and a decrease in goodwill. The changes did not have a material impact on our consolidated financial statements. The goodwill is not deductible for tax purposes.
The table below presents the allocation of the purchase price to the assets and liabilities of Universal Studios Japan.
Allocation of Purchase Price
 
(in millions)
  
Property and equipment (see Note 8)
$
780

Intangible assets (see Note 9)
323

Working capital
(33
)
Debt (see Note 10)
(3,271
)
Other noncurrent assets and liabilities
17

Identifiable net assets (liabilities) acquired
(2,184
)
Noncontrolling interest
(1,440
)
Goodwill (see Note 9)
5,123

Cash consideration transferred
$
1,499


Actual and Unaudited Pro Forma Results
Our consolidated revenue in 2016 and 2015 included $1.4 billion and $169 million, respectively, from the acquisition of Universal Studios Japan. Our net income attributable to Comcast Corporation in 2016 and 2015 included $124 million and $18 million, respectively, from the acquisition of Universal Studios Japan.
The following unaudited pro forma information has been presented as if the acquisition of Universal Studios Japan occurred on January 1, 2014. This information is primarily based on historical results of operations, adjusted for the allocation of purchase price, and is not necessarily indicative of what our results would have been had we operated Universal Studios Japan since January 1, 2014. No pro forma adjustments have been made for our transaction-related expenses.
Year ended December 31 (in millions, except per share amounts)
2015

2014

Revenue
$
75,563

$
69,860

Net income
$
8,591

$
8,704

Net income attributable to Comcast Corporation
$
8,253

$
8,435

Basic earnings per common share attributable to Comcast Corporation shareholders
$
3.32

$
3.27

Diluted earnings per common share attributable to Comcast Corporation shareholders
$
3.28

$
3.22


Time Warner Cable Merger and Related Divestiture Transactions
On April 24, 2015, we and Time Warner Cable Inc. terminated our planned merger, and we terminated our related agreement with Charter Communications, Inc. to spin off, exchange and sell certain cable systems. In connection with these proposed transactions, we incurred incremental transaction-related expenses of $198 million and $237 million in 2015 and 2014, respectively. The transaction-related expenses are included primarily in other operating and administrative expenses, with $20 million recorded in depreciation and amortization expenses associated with the write-off of certain capitalized costs in 2015.
NBCUniversal Media LLC [Member]  
Business Acquisition [Line Items]  
Significant Transactions
Note 4: Significant Transactions
 
2016
DreamWorks Animation
On August 22, 2016, Comcast acquired all of the outstanding stock of DreamWorks Animation for $3.8 billion. DreamWorks Animation’s stockholders received $41 in cash for each share of DreamWorks Animation common stock. DreamWorks Animation creates animated feature films, television series and specials, live entertainment and related consumer products. 
Following the acquisition, Comcast converted DreamWorks Animation to a limited liability company and contributed its equity to us as a capital contribution. The net assets contributed to us excluded deferred income taxes and other tax-related items recorded by Comcast. The results of operations for DreamWorks Animation are reported in our Filmed Entertainment segment following the acquisition date and are presented as if the equity contribution occurred on the date of Comcast’s acquisition.
Preliminary Allocation of Purchase Price
The transaction was accounted for under the acquisition method of accounting and, accordingly, the assets and liabilities are to be recorded at their fair market values as of the acquisition date. We recorded the acquired assets and liabilities of DreamWorks Animation at their estimated fair values based on preliminary valuation analyses. In valuing acquired assets and liabilities, fair value estimates are primarily based on Level 3 inputs including future expected cash flows, market rate assumptions and discount rates. The fair value of the assumed debt was primarily based on quoted market values. The fair value of the liability related to a tax receivable agreement that DreamWorks Animation had previously entered into with one of its former stockholders (the “tax receivable agreement”) was based on the contractual settlement provisions in the agreement. We will adjust the assets and liabilities as valuations are completed and we obtain information necessary to complete the analyses, but no later than one year from the acquisition date.
The table below presents the preliminary allocation of the purchase price to the assets and liabilities of DreamWorks Animation.
Preliminary Allocation of Purchase Price
 
(in millions)
 
Film and television costs (see Note 6)
$
854

Intangible assets (see Note 9)
164

Working capital
248

Debt (see Note 10)
(381
)
Tax receivable agreement(a)
(146
)
Other noncurrent assets and liabilities and other(b)
503

Identifiable net assets (liabilities) acquired
1,242

Noncontrolling interest
(89
)
Goodwill (see Note 9)
2,620

Cash consideration transferred by Comcast
$
3,773

(a)
The tax receivable agreement was settled immediately following the acquisition and the payment was recorded as an operating activity in our consolidated statement of cash flows. Comcast made a separate cash capital contribution of $146 million to fund the settlement which was recorded as a financing activity in our consolidated statement of cash flows.
(b)
Other included $353 million recorded to member’s capital that represented deferred income tax assets and other tax-related items recorded by Comcast but excluded from the net assets contributed to us.
Revenue and net income attributable to the acquisition of DreamWorks Animation were not material for 2016.
2015
Universal Studios Japan
On November 13, 2015, we acquired a 51% economic interest in Universal Studios Japan for $1.5 billion.
Universal Studios Japan is a VIE based on the governance structure and we consolidate Universal Studios Japan since 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.
Allocation of Purchase Price
The transaction was accounted for under the acquisition method of accounting and, accordingly, the acquired assets and liabilities and the 49% noncontrolling interest were recorded at their estimated fair values. In 2016, we updated the allocation of the purchase price for Universal Studios Japan based on final valuation analyses, which primarily resulted in increases to property and equipment and intangible assets and a decrease in goodwill. The changes did not have a material impact on our consolidated financial statements.
The table below presents the allocation of the purchase price to the assets and liabilities of Universal Studios Japan.
Allocation of Purchase Price
 
(in millions)
  
Property and equipment (see Note 8)
$
780

Intangible assets (see Note 9)
323

Working capital
(33
)
Debt (see Note 10)
(3,271
)
Other noncurrent assets and liabilities and other
17

Identifiable net assets (liabilities) acquired
(2,184
)
Noncontrolling interest
(1,440
)
Goodwill (see Note 9)
5,123

Cash consideration transferred
$
1,499


Actual and Unaudited Pro Forma Results
Our consolidated revenue in 2016 and 2015 included $1.4 billion and $169 million, respectively, from the acquisition of Universal Studios Japan. Our net income attributable to NBCUniversal in 2016 and 2015 included $124 million and $18 million, respectively, from the acquisition of Universal Studios Japan.
The following unaudited pro forma information has been presented as if the acquisition of Universal Studios Japan occurred on January 1, 2014. This information is primarily based on historical results of operations, adjusted for the allocation of purchase price, and is not necessarily indicative of what our results would have been had we operated Universal Studios Japan since January 1, 2014. No pro forma adjustments have been made for our transaction-related expenses.
Year ended December 31 (in millions)
2015

2014

Revenue
$
29,514

$
26,513

Net income
$
3,801

$
3,409

Net income attributable to NBCUniversal
$
3,503

$
3,170