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COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share amounts)
F-38
Property, plant and equipment (including equipment under capital leases) consist of the following assets,
which are depreciated or amortized on a straight-line basis over the estimated useful lives shown below:
December 31, Estimated
2013
2012
Useful Lives
Customer equipment ...........................................................
.
$ 2,104,305
$ 2,305,503
3 to 5 years
Headends and related equipment .........................................
.
1,276,819
1,144,797
4 to 25 years
Central office equipment ....................................................
.
758,691
716,825
5 to 10 years
Infrastructur e ......................................................................
.
5,651,633
5,467,960
3 to 25 years
Equipment and software .....................................................
.
1,386,848
1,464,483
3 to 10 years
Construction in progress (including materials and supplies) .
.
113,260
84,746
Furniture and fixtures .........................................................
.
92,631
98,202
5 to 12 years
Transportation equipment ...................................................
.
201,806
224,641
5 to 18 years
Buildings and building improvements .................................
.
279,614
264,839
10 to 40 years
Leasehold improvements ....................................................
.
362,932
373,601
Term of lease
Land ..................................................................................
.
14,662
14,662
12,243,201
12,160,259
Less accumulated depreciation and amortization .................
.
(9,264,848)
(9,230,326)
$ 2,978,353
$ 2,929,933
During the years ended December 31, 2013 and 2012, the Company capitalized certain costs aggregating
$127,390 and $135,136, respectively, related to the acquisition and development of internal use software,
which are included in the table above.
Depreciation expense on property, plant and equipment (including capital leases) for the years ended
December 31, 2013, 2012 and 2011 amounted to $858,899, $879,242 and $819,286 (including
impairment charges of $10,997, $829 and $1,887 in 2013, 2012 and 2011), respectively.
At December 31, 2013 and 2012, the gross amount of equipment and related accumulated amortization
recorded under capital leases were as follows:
December 31,
2013 2012
Equipment .......................................................................................................
.
$ 65,454 $ 84,700
Less accumulated amortization .........................................................................
.
(31,138) (36,870)
$ 34,316 $ 47,830
NOTE 7. OPERATING LEASES
The Company leases certain office, production, and transmission facilities under terms of leases expiring
at various dates through 2031. The leases generally provide for escalating rentals over the term of the
lease plus certain real estate taxes and other costs or credits. Costs associated with such operating leases
are recognized on a straight-line basis over the initial lease term. The difference between rent expense
and rent paid is recorded as deferred rent. In addition, the Company rents space on utility poles for its
operations. The Company's pole rental agreements are for varying terms, and management anticipates
renewals as they expire. Rent expense, including pole rentals, for the years ended December 31, 2013,
2012 and 2011 amounted to $75,553, $78,472 and $75,856, respectively.