Comcast 2013 Annual Report Download - page 101

Table of Contents
Comcast Corporation
Impairment Testing of Investments
We review our investment portfolio each reporting period to determine whether there are identified events or circumstances that
would indicate there is a decline in the fair value that would be considered other than temporary. For our nonpublic investments, if
there are no identified events or circumstances that would have a significant adverse effect on the fair value of the investment, then
the fair value is not estimated. If an investment is deemed to have experienced an other-than-
temporary decline below its cost
basis, we reduce the carrying amount of the investment to its quoted or estimated fair value, as applicable, and establish a new
cost basis for the investment. For our AFS and cost method investments, we record the impairment to investment income (loss),
net. For our equity method investments, we record the impairment to other income (expense), net. During 2013, we recorded $249
million of impairment charges to our equity method investments, which were primarily related to a regional sports cable network
based in Houston, Texas.
Note 7: Property and Equipment
Property and equipment are stated at cost. We capitalize improvements that extend asset lives and expense repairs and
maintenance costs as incurred. We record depreciation using the straight-line method over the asset’
s estimated useful life. For
assets that are sold or retired, we remove the applicable cost and accumulated depreciation and, unless the gain or loss on
disposition is presented separately, we recognize it as a component of depreciation expense.
We capitalize the costs associated with the construction of and improvements to our cable transmission and distribution facilities,
costs associated with acquiring and deploying new customer premise equipment, and costs associated with installation of our
services in accordance with accounting guidance related to cable television companies. Costs capitalized include all direct labor
and materials, as well as various indirect costs. All costs incurred in connection with subsequent disconnects and reconnects are
expensed as they are incurred.
We evaluate the recoverability of our property and equipment whenever events or substantive changes in circumstances indicate
that the carrying amount may not be recoverable. The evaluation is based on the cash flows generated by the underlying asset
groups, including estimated future operating results, trends or other determinants of fair value. If the total of the expected future
undiscounted cash flows were less than the carrying amount of the asset group, we would recognize an impairment charge to the
extent the carrying amount of the asset group exceeded its estimated fair value. Unless presented separately, the impairment
charge is included as a component of depreciation expense.
December 31 (in millions)
Weighted-
Average
Original Useful Life
As of December 31, 2013
2013
2012
Cable distribution system
11 years
$
30,498
$
29,528
Customer premise equipment
6 years
25,949
24,763
Other equipment
5 years
6,826
5,909
Buildings and leasehold improvements
21 years
8,057
5,468
Land
—
1,084
989
Property and equipment, at cost
72,414
66,657
Less: Accumulated depreciation
42,574
39,425
Property and equipment, net
$
29,840
$
27,232
Comcast 2013 Annual Report on Form 10
-
K
96