Comcast 2012 Annual Report Download - page 99

Table of Contents
Intangible Assets
Indefinite-Lived Intangible Assets
Indefinite-
lived intangible assets consist of our cable franchise rights, as well as trade names and FCC licenses. Our cable franchise
rights represent the value we attributed to agreements with state and local authorities that allow access to homes and businesses in
cable service areas acquired in business combinations. We do not amortize our franchise rights because we have determined that
they meet the definition of indefinite-
lived intangible assets since there are no legal, regulatory, contractual, competitive, economic or
other factors which limit the period over which these rights will contribute to our cash flows. We reassess this determination
periodically or whenever events or substantive changes in circumstances occur. Costs we incur in negotiating and renewing cable
franchise agreements are included in other intangible assets and are generally amortized on a straight-
line basis over the term of the
franchise agreement.
We assess the recoverability of our franchise rights and other indefinite-
lived intangible assets annually, or more frequently
whenever events or substantive changes in circumstances indicate that the assets might be impaired. The assessment of
recoverability may first consider qualitative factors to determine whether it is more likely than not that an indefinite-
lived intangible
asset is impaired. A quantitative assessment is performed if the qualitative assessment results in a more likely than not
determination or if a qualitative assessment is not performed. When performing a quantitative assessment, we estimate the fair value
of our cable franchise rights and other indefinite-
lived intangible assets primarily based on a discounted cash flow analysis. In
analyzing the fair values indicated under the discounted cash flow models, we also consider multiples of operating income before
depreciation and amortization generated by the underlying assets, current market transactions, and profitability information. If the
value of our cable franchise rights or other indefinite-
lived intangible assets were less than the carrying amount, we would recognize
an impairment charge for the difference between the estimated fair value and the carrying value of the assets. We also evaluate the
unit of account used to test for impairment of our cable franchise rights and other indefinite-
lived intangible assets periodically or
whenever events or substantive changes in circumstances occur to ensure impairment testing is performed at an appropriate level.
The Cable Communications divisions represent the unit of account we use to test for impairment for our cable franchise rights.
Unless presented separately, the impairment charge is included as a component of amortization expense.
2012
2011
December 31 (in millions)
Weighted-
Average
Original Useful Life
as of December 31, 2012
Gross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Indefinite-Lived Intangible Assets:
Franchise rights
N/A
$
59,364
$
$
59,376
$
Trade names
N/A
3,080
3,006
FCC licenses
N/A
636
636
Finite
-
Lived Intangible Assets:
Customer relationships
18 years
14,970
(3,971
)
15,079
(3,387
)
Cable franchise renewal costs and contractual operating
rights
10 years
1,257
(676
)
1,152
(581
)
Software
5 years
3,795
(2,123
)
3,234
(1,839
)
Patents and other technology rights
9 years
350
(283
)
344
(256
)
Other agreements and rights
14 years
1,414
(609
)
1,379
(602
)
Total
$
84,866
$
(7,662
)
$
84,206
$
(6,665
)
Comcast 2012 Annual Report on Form 10-K
96