Comcast 2009 Annual Report Download - page 42

Table of Contents
Comcast 2009 Annual Report on Form 10-K
34
those determined in the July 1, 2009 annual impairment
testing. The table below illustrates the impairment related to
our Cable divisions that would have occurred had the
hypothetical reductions in fair value existed at the time of our
last annual impairment testing.
Income Taxes
We base our provision for income taxes on our current period
income, changes in our deferred income tax assets and
liabilities, income tax rates, changes in estimates of our
uncertain tax positions, and tax planning opportunities
available in the jurisdictions in which we operate. We prepare
and file tax returns based on our interpretation of tax laws
and regulations, and we record estimates based on these
judgments and interpretations.
From time to time, we engage in transactions in which the tax
consequences may be subject to uncertainty. In these cases,
we evaluate our tax positions using the recognition threshold
and the measurement attribute in accordance with the
accounting guidance related to uncertain tax positions.
Examples of these transactions include business acquisitions
and disposals, including
Percent Hypothetical Reduction in Fair Value and
Related Impairment
(in millions)
10%
15%
20%
25%
Eastern Division
($412)
($1,284)
($2,155)
($3,027)
NorthCentral Division
($800)
($1,686)
($2,571)
($3,456)
Southern Division — — — —
West Division — ($
306)
($1,186)
($2,066)
($1,212)
($3,276)
($5,912)
($8,549)
consideration paid or received in connection with these
transactions, and certain financing transactions. Significant
judgment is required in assessing and estimating the tax
consequences of these transactions. We determine whether
it is more likely than not that a tax position will be sustained
on examination, including the resolution of any related
appeals or litigation processes, based on the technical merits
of 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 our financial statements. The tax position is
measured at the largest amount of benefit that has a greater
than 50% likelihood of being realized when the position is
ultimately resolved.
We adjust our estimates periodically to reflect changes in
circumstances in ongoing examinations by and settlements
with the various taxing authorities, as well as changes in tax
laws, regulations and precedent. We believe that adequate
accruals have been made for income taxes. When uncertain
tax positions are ultimately resolved, either individually or in
the aggregate, differences between our estimated amounts
and the actual amounts 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. As of
December 31, 2009, our uncertain tax positions and related
accrued interest were approximately $1.185 billion and $519
million, respectively.