Comcast 2010 Annual Report Download - page 57

Table of Contents
Comcast 2010 Annual Report on Form 10-K
50
tions, 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 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, 2010, our uncertain tax positions and related
accrued interest were approximately $1.3 billion and
$604 million, respectively.