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the position. In evaluating whether a tax position has met the more-
likely-than-not recognition threshold, we presume that the position
will be examined by the appropriate taxing authority that has full
knowledge of all relevant information. A tax position that meets the
more-likely-than-not recognition threshold is measured to determine
the amount of benefit to be recognized in the financial statements.
The tax position is measured at the largest amount of benefit that is
greater than 50% likely of being realized upon ultimate settlement.
We adjust our estimates periodically because of ongoing examina-
tions by and settlements with the various taxing authorities, as well
as changes in tax laws, regulations and precedent. The effects on
our financial statements of income tax uncertainties that arise in
connection with business combinations and those associated with
entities acquired in business combinations are discussed in Note 2
to our consolidated financial statements. We believe that adequate
accruals have been made for income taxes. Differences between
the estimated and actual amounts determined upon ultimate reso-
lution, individually or in the aggregate, are not expected to have a
material adverse effect on our consolidated financial position but
could possibly be material to our consolidated results of oper-
ations or cash flow for any one period.
Legal Contingencies
We are subject to legal, regulatory and other proceedings and
claims that arise in the ordinary course of our business and, in
certain cases, those that we assume from an acquired entity in a
business combination. We record an estimated liability for those
proceedings and claims arising in the ordinary course of business
based upon the probable and reasonably estimable criteria con-
tained in SFAS No. 5, “Accounting for Contingencies.” We review
outstanding claims with internal as well as external counsel to
assess the probability and the estimates of loss. We reassess the
risk of loss as new information becomes available, and we adjust
liabilities as appropriate. The actual cost of resolving a claim may
be substantially different from the amount of the liability recorded.
Differences between the estimated and actual amounts
determined upon ultimate resolution, individually or in the
aggregate, are not expected to have a material adverse effect on
our consolidated financial position but could possibly be material
to our consolidated results of operations or cash flow for any one
period.
33 Comcast 2007 Annual Report on Form 10-K