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Notes to Consolidated Financial Statements Comcast 2006 Annual Report 54
Note 7: Goodwill and Intangible Assets
The December 31, 2005 and 2004 Cable segment goodwill balances exclude $720 million related to discontinued operations. The changes
in the carrying amount of goodwill by business segment (see Note 14) for the periods presented are as follows:
Corporate
(in millions) Cable Programming and Other Total
Balance, December 31, 2004 $ 12,278 $ 824 $ 198 $ 13,300
Settlements and adjustments (50) 89 — 39
Acquisitions 45 53 61 159
Balance, December 31, 2005 12,273 966 259 13,498
Settlements and adjustments (695) 7 — (688)
Acquisitions 432 468 58 958
Balance, December 31, 2006 $ 12,010 $ 1,441 $ 317 $ 13,768
Settlements and adjustments are primarily related to certain pre-acquisition tax liabilities. Acquisitions in 2006 are primarily related to the
Adelphia and Time Warner transactions, and the Susquehanna and E! Entertainment Television transactions.
The gross carrying amount and accumulated amortization of our intangible assets subject to amortization are as follows:
2006 2005
Gross Gross
Carrying Accumulated Carrying Accumulated
December 31 (in millions) Useful Life Amount Amortization Amount Amortization
Franchise-related customer relationships 4 –11 years $ 4,954 $ (3,188) $ 3,273 $ (2,701)
Cable and satellite television distribution rights 5 – 11 years 1,267 (533) 1,333 (685)
Cable franchise renewal costs and contractual
operating rights 10 years 982 (283) 863 (198)
Computer software 1 – 5 years 1,104 (515) 871 (252)
Patents and other technology rights 3 – 12 years 214 (62) 214 (62)
Programming agreements and rights 2 – 4 years 1,026 (782) 772 (520)
Other agreements and rights 2 – 22 years 877 (180) 427 (217)
Total $ 10,424 $ (5,543) $ 7,753 $ (4,635)
Estimated amortization expense for each of the next five years is
as follows:
(in millions) Estimated Amortization
2007 $ 997
2008 751
2009 679
2010 561
2011 375