Revenue

6 Months Ended

Jun. 30, 2018



	Three Months Ended June 30						Six Months Ended June 30
(in millions)	2018			2017			2018			2017
Residential:
Video	$	5,628		$	5,740		$	11,287		$	11,446
High-Speed Internet	4,262			3,898			8,419			7,740
Voice	994			1,034			2,000			2,068
Business services	1,761			1,585			3,487			3,128
Advertising	666			626			1,248			1,180
Other	399			374			787			745
Total Cable Communications^(a)	13,710			13,257			27,228			26,307

Distribution	1,684			1,550			3,571			3,112
Advertising	938			906			1,926			1,732
Content licensing and other	294			240			613			492
Total Cable Networks	2,916			2,696			6,110			5,336

Advertising	1,387			1,270			3,752			2,549
Content licensing	481			523			1,003			1,026
Distribution and other	523			448			1,133			874
Total Broadcast Television	2,391			2,241			5,888			4,449

Theatrical	540			837			963			1,488
Content licensing	648			684			1,381			1,418
Home entertainment	225			334			473			620
Other	297			287			540			583
Total Filmed Entertainment	1,710			2,142			3,357			4,109

Total Theme Parks	1,361			1,314			2,642			2,432
Headquarters and Other	15			9			29			17
Eliminations^(b)	(80		)	(84		)	(183		)	(172		)
Total NBCUniversal	8,313			8,318			17,843			16,171

Corporate and Other	255			205			646			413
Eliminations^(b)	(543		)	(494		)	(1,191		)	(1,018		)
Total revenue	$	21,735		$	21,286		$	44,526		$	41,873


(a)	For both the three and six months ended June 30, 2018, 2.7% of Cable Communications segment revenue was derived from franchise and other regulatory fees. For both the three and six months ended June 30, 2017, 2.8% of Cable Communications segment revenue was derived from franchise and other regulatory fees.


(b)	Included in Eliminations are transactions that our segments enter into with one another. See Note 2 for a description of these transactions.

We operate primarily in the United States, but also in select international markets primarily in Europe and Asia. The table below summarizes revenue by geographic location.



	Three Months Ended June 30				Six Months Ended June 30
(in millions)	2018		2017		2018		2017
United States	$	19,931	$	19,073	$	40,816	$	37,905
Foreign	1,804		2,213		3,710		3,968
Total revenue	$	21,735	$	21,286	$	44,526	$	41,873

No single customer accounted for a significant amount of revenue in any period presented.

Cable Communications Segment

Residential

Our Cable Communications segment generates revenue from residential customers subscribing to our video, high-speed Internet, voice, and security and automation services, which we market individually and as bundled services at a discounted rate in the United States. Revenue from residential customers that purchase bundled services at a discounted rate is allocated between the separate services based on the respective stand-alone selling prices. The stand-alone selling prices are determined based on the current prices at which we separately sell the cable services. Significant judgment is used to determine performance obligations that should be accounted for separately and the allocation of revenue when services are combined in a bundle. Revenue related to our security and automation services is reported in other revenue.

We recognize revenue from residential cable services as the services are provided on a monthly basis. Subscription rates and related charges vary according to the services and features customers receive. Customers are typically billed in advance and pay on a monthly basis. Installation fees are deferred and recognized as revenue over the period of benefit to the customer, which is less than a year for residential customers. While a portion of our residential customers are subject to contracts for their cable services, which are typically 2 years in length, based on our evaluation of the terms of these contracts, we recognize revenue for these cable services on a basis that is consistent with our customers that are not subject to contracts. Our cable services generally involve customer premise equipment, such as set-top boxes, cable modems and wireless gateways. The timing and pattern of recognition for customer premise equipment revenue are consistent with those of our residential cable services. Sales commissions related to our residential customers are expensed as incurred, as the related period of benefit is less than a year.

Under the terms of our cable franchise agreements, we are generally required to pay the cable franchising authority an amount based on our gross video revenue. We generally pass these and other similar fees through to our cable services customers and classify these fees in the respective cable service revenue, with the corresponding costs included in other operating and administrative expenses.

Business Services

Our Cable Communications segment generates revenue from business customers subscribing to a variety of products and services. Our small business services offerings primarily include high-speed Internet services, as well as voice and video services, similar to those that we provide to our residential customers, and also include cloud-based solutions that provide file sharing, online backup and web conferencing, among other features. We also offer Ethernet network services that connect multiple locations and provide higher downstream and upstream speed options to medium-sized customers and larger enterprises, as well as advanced voice services. In addition, we provide cellular backhaul services to mobile network operators to help these customers manage their network bandwidth.

Recently, we have expanded our enterprise service offerings to include a software-defined networking product and our managed solutions business to offer enterprise customers support related to Wi-Fi networks, router management, network security, business continuity risks and other services. We primarily offer our enterprise service offerings to Fortune 1000 companies and other large enterprises with multiple locations both within and outside of our cable distribution footprint where we have agreements with other companies to use their networks to provide coverage.

We recognize revenue from business services as the services are provided on a monthly basis. Substantially all of our business customers are initially under contracts, with terms typically ranging from 2 years for small and medium-sized businesses to up to 5 years for larger enterprises. At any given time, the amount of future revenue to be earned related to fixed pricing under existing agreements is equal to approximately half of our annual business services revenue, of which the substantial majority will be recognized within 2 years. Customers with contracts may only discontinue service in accordance with the terms of their contracts. We receive payments from business customers based on a billing schedule established in our contracts, which is typically on a monthly basis. Installation revenue related to our business services customers and sales commissions are generally deferred and recognized over the respective contract terms.

Advertising

Our Cable Communications segment generates revenue from the sale of advertising and from our advanced advertising business. As part of our distribution agreements with cable networks, we generally receive an allocation of scheduled advertising time on cable networks that we sell to local, regional and national advertisers. In most cases, the available advertising units are sold by our sales force. We also represent the advertising sales efforts of other multichannel video providers in some markets. Since we are acting as the principal in these arrangements, we record the advertising that is sold in advertising revenue and the fees paid to multichannel video providers in other operating and administrative expenses. In some cases, we work with representation firms as an extension of our sales force to sell a portion of the advertising units allocated to us and record the revenue net of agency commissions. In addition, we generate revenue from the sale of advertising online and on our On Demand service. We enter into advertising arrangements with customers and have determined that a contract exists once all terms and conditions are agreed upon, typically when the number of advertising units is specifically identified and the timing of airing is scheduled. Advertisements are generally aired or viewed within one year once all terms and conditions are agreed upon. Advertising revenue is recognized in the period in which advertisements are aired or viewed. Payment terms vary by contract, although terms generally require payment within 30 to 60 days from when advertisements are aired or viewed. Our advanced advertising business provide technology, tools, marketplace solutions and data-driven insights to various customers in the media industry to more effectively engage with their targeted audiences. Revenue earned from our advanced advertising business is recognized when services are provided.

NBCUniversal Segments

Distribution

Our Cable Networks segment generates distribution revenue from the distribution of our cable network programming to traditional and virtual multichannel video providers. Our Broadcast Television segment generates distribution revenue from the fees received under retransmission consent agreements and associated fees received from NBC-affiliated local broadcast television stations.

Distribution revenue is recognized as programming is provided on a monthly basis, generally under multiyear agreements. Monthly fees received under distribution agreements with multichannel video providers are generally based on the number of subscribers. Payment terms and conditions vary by contract type, although terms generally include payment within 30 to 60 days.

Advertising

Our Cable Networks and Broadcast Television segments generate advertising revenue from the sale of advertising on our cable and broadcast networks, our owned local broadcast television stations, and various digital properties.

We enter into advertising arrangements with customers and have determined that a contract exists once all terms and conditions are agreed upon, typically when the number of advertising units is specifically identified and the timing of airing is scheduled. Advertisements are generally aired or viewed within one year once all terms are agreed upon. Advertising revenue is recognized, net of agency commissions, in the period in which advertisements are aired or viewed and payment occurs thereafter, generally within 30 days. In some instances, we guarantee audience ratings for the advertisements. To the extent there is a shortfall in contracts where the ratings were guaranteed, a portion of the revenue is deferred until the shortfall is settled, typically by providing additional advertising units generally within one year of the original airing.

Theatrical

Our Filmed Entertainment segment theatrical revenue is generated from the worldwide theatrical release of our produced and acquired films for exhibition in movie theaters and is affected by the timing, nature and number of films released in movie theaters and their acceptance by audiences. Theatrical revenue is also affected by the number of exhibition screens, ticket prices, the percentage of ticket sale retention by the exhibitors and the popularity of competing films at the time our films are released. We recognize theatrical revenue as the films are viewed and exhibited in theaters and payment generally occurs within 60 days after exhibition.

Content Licensing

Our Cable Networks, Broadcast Television and Filmed Entertainment segments generate revenue from the licensing of our owned film and television content in the United States and internationally to cable, broadcast and premium networks and subscription video on demand services. Our content licensing agreements generally include fixed pricing and span multiple years. For example, following a film’s theatrical release, our Filmed Entertainment segment may license the exhibition rights of a film to different customers over multiple successive distribution windows.

We recognize revenue when the content is delivered and available for use by the licensee. When the term of an existing agreement is renewed or extended, we recognize revenue at the later of when the content is available or when the renewal or extension period begins. Payment terms and conditions vary by contract type, although payments are generally collected over the license term. The amount of future revenue to be earned related to fixed pricing under existing agreements primarily relates to our Filmed Entertainment segment, which at any given time equals approximately 1 to 2 years of our annual Filmed Entertainment content licensing revenue. The substantial majority of this revenue will be recognized within 2 years. This amount may fluctuate from period to period depending on the timing of the release and the availability of content under existing agreements and may not represent the total content licensing revenue expected to be recognized as it does not include revenue from future agreements or from variable pricing or optional purchases under existing agreements.

For our content licensing agreements that also include variable pricing, such as pricing based on the number of subscribers to a subscription video on demand service, we generally recognize revenue for variable pricing as the content is delivered and available and as the variable amounts become known.

Home Entertainment

Our Filmed Entertainment segment generates revenue from the sale of our produced and acquired films on standard-definition digital video discs and Blu-ray discs (together, “DVDs”) and through digital distribution services. Our Cable Networks and Broadcast Television networks also generate revenue from the sale of owned programming on DVDs and through digital distribution services, which is reported in other revenue. We recognize revenue from DVD sales, net of estimated returns and customer incentives, on the date that DVDs are delivered to and made available for sale by retailers. Payment terms generally include payment within 60 to 90 days from delivery to the retailer.

Theme Parks

Our Theme Parks segment generates revenue primarily from ticket sales and guest spending at our Universal theme parks in Orlando, Florida; Hollywood, California; and Osaka, Japan. Guest spending includes in-park spending on food, beverages and merchandise. We recognize revenue from theme park ticket sales when the tickets are used, generally within a year from the date of purchase. For annual passes, we generally recognize revenue on a straight-line basis over the period the pass is available to be used. We recognize revenue from guest spending at the point of sale.

Condensed Consolidated Balance Sheet

The following tables summarize our accounts receivable and other balances that are not separately presented in our condensed consolidated balance sheet that relate to the recognition of revenue and collection of the related cash, as well as deferred costs associated with our contracts with customers.



(in millions)	June 30, 2018		December 31, 2017
Receivables, gross	$	9,142	$	9,122
Less: Allowance for doubtful accounts	295		288
Receivables, net	$	8,847	$	8,834



(in millions)	June 30, 2018		December 31, 2017
Noncurrent receivables, net (included in other noncurrent assets, net)	$	1,191	$	1,184
Contract acquisition and fulfillment costs (included in other noncurrent assets, net)	$	929	$	922
Noncurrent deferred revenue (included in other noncurrent liabilities)	$	530	$	497

In our Cable Communications segment, we manage credit risk by screening applicants through the use of internal customer information, identification verification tools and credit bureau data, as well as offering customers the opportunity to establish automatic monthly payments. If a customer’s account is delinquent, various measures are used to collect outstanding amounts, including termination of the customer’s cable services.

Accounting Standards Update 2014-09 [Member] | NBCUniversal Media LLC [Member]

Revenue [Line Items]

Revenue



	Three Months Ended June 30						Six Months Ended June 30
(in millions)	2018			2017			2018			2017
Distribution	$	1,684		$	1,550		$	3,571		$	3,112
Advertising	938			906			1,926			1,732
Content licensing and other	294			240			613			492
Total Cable Networks	2,916			2,696			6,110			5,336

Advertising	1,387			1,270			3,752			2,549
Content licensing	481			523			1,003			1,026
Distribution and other	523			448			1,133			874
Total Broadcast Television	2,391			2,241			5,888			4,449

Theatrical	540			837			963			1,488
Content licensing	648			684			1,381			1,418
Home entertainment	225			334			473			620
Other	297			287			540			583
Total Filmed Entertainment	1,710			2,142			3,357			4,109

Total Theme Parks	1,361			1,314			2,642			2,432
Headquarters and Other	15			9			29			17
Eliminations^(a)	(80		)	(84		)	(183		)	(172		)
Total revenue	$	8,313		$	8,318		$	17,843		$	16,171


(a)	Included in Eliminations are transactions that our segments enter into with one another. See Note 2 for a description of these transactions.

We operate primarily in the United States, but also in select international markets primarily in Europe and Asia. The table below summarizes revenue by geographic location.



	Three Months Ended June 30				Six Months Ended June 30
(in millions)	2018		2017		2018		2017
United States	$	6,533	$	6,139	$	14,187	$	12,256
Foreign	1,780		2,179		3,656		3,915
Total revenue	$	8,313	$	8,318	$	17,843	$	16,171

No single customer accounted for a significant amount of revenue in any period presented.

Distribution

Advertising

Theatrical

Content Licensing

Home Entertainment

Theme Parks

Condensed Consolidated Balance Sheet



(in millions)	June 30, 2018		December 31, 2017
Receivables, gross	$	7,097	$	7,055
Less: Allowance for doubtful accounts	95		88
Receivables, net	$	7,002	$	6,967



(in millions)	June 30, 2018		December 31, 2017
Noncurrent receivables, net (included in other noncurrent assets, net)	$	1,091	$	1,093
Noncurrent deferred revenue (included in other noncurrent liabilities)	$	424	$	392