Investments

9 Months Ended

Sep. 30, 2016

Note 6: Investments

			September 30,		December 31,
(in millions)			2016		2015
Fair Value Method		$	166	$	167
Equity Method:
	Atairos		363		-
	Hulu		286		184
	Other		563		494
			1,212		678
Cost Method:
	AirTouch		1,595		1,583
	Other		938		902
			2,533		2,485
Total investments			3,911		3,330
Less: Current investments			54		106
Noncurrent investments		$	3,857	$	3,224

Investment Income (Loss), Net
		Three Months Ended				Nine Months Ended
		September 30				September 30
(in millions)		2016		2015		2016		2015
Gains on sales and exchanges of investments, net		$	24	$	3	$	39	$	7
Investment impairment losses			(7)		(15)		(28)		(46)
Unrealized gains (losses) on securities underlying prepaid
	forward sale agreements		-		-		-		42
Mark to market adjustments on derivative component of prepaid
	forward sale agreements and indexed debt instruments		(4)		(5)		(3)		(42)
Interest and dividend income			31		27		91		83
Other, net			36		(36)		69		(20)
Investment income (loss), net		$	80	$	(26)	$	168	$	24

Equity Method

The Weather Channel

On January 29, 2016, following a legal restructuring at The Weather Channel, we and the other investors sold the entity holding The Weather Channel’s product and technology businesses to IBM. Following the close of the transaction, we continue to hold an investment in The Weather Channel cable network through a new holding company. As a result of the sale of our investment, we recognized a pretax gain for the nine months ended September 30, 2016 of $108 million in other income (expense), net.

During the nine months ended September 30, 2015, The Weather Channel recorded an impairment charge related to goodwill. We recorded an expense of $252 million that represents NBCUniversal’s proportionate share of this impairment charge in equity in net income (losses) of investees, net in our condensed consolidated statement of income.

Atairos

In 2015, we entered into an agreement to establish Atairos Group, Inc. (“Atairos”), a strategic company focused on investing in and operating companies in a range of industries and business sectors, both domestically and internationally. The agreement became effective as of January 1, 2016. Atairos has a term of up to 12 years and is controlled by management companies led by our former CFO through interests that carry all of the voting rights. We are the only investor other than our former CFO and the other management company employees. We have committed to fund up to $4 billion in the aggregate at any one time in Atairos, subject to certain offsets, and $40 million annually to fund a management fee, subject to certain adjustments, while the management company investors have committed to fund up to $100 million (with at least $40 million to be funded by our former CFO, subject to his continued role with Atairos). Our economic interests do not carry voting rights and obligate us to absorb approximately 99% of any losses and provide us the right to receive approximately 86.5% of any residual returns in Atairos, in either case on a cumulative basis.

We have concluded that Atairos is a VIE, that we do not have the power to direct the activities that most significantly impact the economic performance of Atairos as we have no voting rights and only certain consent rights, and that we are not a related party with our former CFO or the management companies. We therefore do not consolidate Atairos and account for this investment as an equity method investment. There are no other liquidity arrangements, guarantees, or other financial commitments between Comcast and Atairos, and therefore our maximum risk of financial loss is our investment balance and remaining unfunded capital commitment.

For the nine months ended September 30, 2016, we made capital contributions totaling $399 million to Atairos.

Hulu

In August 2016, Time Warner Inc. acquired a 10% interest in Hulu, LLC (“Hulu”), which diluted our interest in Hulu from 33% to 30%. For a period not to exceed three years, Time Warner may put its shares to Hulu or Hulu may call Time Warner’s shares under certain limited circumstances arising from regulatory review. Given the contingent nature of the put and call options, we recorded a deferred gain of $159 million and a corresponding increase to our investment in Hulu as a result of the dilution. The deferred gain will be recognized in other income (expense), net if and when the options expire unexercised.

For the three and nine months ended September 30, 2016, we recognized our proportionate share of losses of $43 million and $108 million, respectively, related to our investment in Hulu. For the three and nine months ended September 30, 2015, we recognized our proportionate share of losses of $19 million and $43 million, respectively, related to our investment in Hulu.

Cost Method

AirTouch

We hold two series of preferred stock of Verizon Americas, Inc., formerly known as AirTouch Communications, Inc. (“AirTouch”), a subsidiary of Verizon Communications Inc., which are redeemable in April 2020. As of September 30, 2016, the estimated fair value of the AirTouch preferred stock and the estimated fair value of the associated liability related to the redeemable subsidiary preferred shares issued by one of our consolidated subsidiaries were each $1.7 billion. The estimated fair values 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.

NBCUniversal Media LLC [Member]

Investments

Note 6: Investments

			September 30,		December 31,
(in millions)			2016		2015
Fair Value Method		$	5	$	10
Equity Method:
	Hulu		286		184
	Other		367		313
			653		497
Cost Method			493		458
Total investments		$	1,151	$	965

Equity Method

The Weather Channel

During the nine months ended September 30, 2015, The Weather Channel recorded an impairment charge related to goodwill. We recorded an expense of $252 million that represents our proportionate share of this impairment charge in equity in net income (losses) of investees, net in our condensed consolidated statement of income.

Hulu