Comcast 2011 Annual Report Download - page 73

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Intangible Assets
Intangible assets primarily consist of our estimates of fair value for customer relationships with advertisers
and multichannel video providers, each with an estimated useful life not to exceed 20 years, and indefinite-
lived trade names and FCC licenses.
Relationships with advertisers and multichannel video providers were valued using a multiperiod cash flow
model, a form of the income approach. This measure of fair value requires considerable judgments about
future events, including contract renewal estimates, attrition and technology changes.
In determining the estimated lives and method of amortization for finite-lived intangibles, we use the method
and life that most closely follows the undiscounted cash flows over the estimated life of the asset.
Trade names were valued using the relief-from-royalty method, a form of the income approach. This measure
of fair value requires considerable judgment about the value a market participant would be willing to pay in
order to achieve the benefits associated with the trade name.
FCC licenses were valued using the Greenfield method, a form of the income approach. This measure of fair
value captures the future income potential assuming the license is used by a hypothetical start-up operation.
Guarantees and Other Obligations
Contractual obligations were adjusted to market rates using a combination of discounted cash flows or mar-
ket assumptions, when available.
Redeemable Noncontrolling Interest
The fair value component of the redeemable noncontrolling interest in NBCUniversal Holdings is based on an
income approach, including assumptions related to expected future net cash flows, the timing and nature of
tax attributes, and the redemption features.
Item 7A: Quantitative and Qualitative Disclosures About Market Risk
Interest Rate Risk Management
We maintain a mix of fixed-rate and variable-rate debt and we are exposed to the market risk of adverse
changes in interest rates. In order to manage the cost and volatility relating to the interest cost of our out-
standing debt, we enter into various interest rate risk management derivative transactions in accordance with
our policies.
We monitor our exposure to the risk of adverse changes in interest rates through the use of techniques that
include market value and sensitivity analyses. We do not engage in any speculative or leveraged derivative
transactions.
Our interest rate derivative financial instruments, which may include swaps, rate locks, caps and collars, repre-
sent an integral part of our interest rate risk management program. Our interest rate derivative financial
instruments reduced the portion of our total debt at fixed rates to 87.1% from 98.5% as of December 31,
2011. In 2011, 2010 and 2009, the effect of our interest rate derivative financial instruments was a decrease
in our interest expense of approximately $136 million, $132 million and $104 million, respectively. Interest rate
derivative financial instruments may have a significant effect on our interest expense in the future.
71 Comcast 2011 Annual Report on Form 10-K