Comcast 2013 Annual Report Download - page 103

Table of Contents
Comcast Corporation
Intangible Assets
Indefinite-Lived Intangible Assets
Indefinite-
lived intangible assets consist primarily of our cable franchise rights, as well as trade names and FCC licenses. Our cable
franchise rights represent the values 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 cable 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. Our three Cable
Communications divisions represent the unit of account we use to test for impairment for our cable franchise rights. We 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 assessment of recoverability may first consider qualitative factors to determine whether it is more likely than not that the fair
value of an indefinite-
lived intangible asset is less than its carrying amount. 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 that involves significant judgment. When 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 fair 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. Unless presented separately, the impairment charge is
included as a component of amortization expense.
2013
2012
December 31 (in millions)
Weighted-
Average
Original Useful Life
as of December 31, 2013
Gross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Indefinite
-
Lived Intangible Assets:
Franchise rights
N/A
$
59,364
$
59,364
Trade names
N/A
3,089
3,080
FCC licenses
N/A
652
636
Finite-Lived Intangible Assets:
Customer relationships
19 years
15,037
$
(4,772
)
14,970
$
(3,971
)
Cable franchise renewal costs and contractual operating
rights
10 years
1,360
(745
)
1,257
(676
)
Software
5 years
4,271
(2,405
)
3,795
(2,123
)
Patents and other technology rights
9 years
361
(307
)
350
(283
)
Other agreements and rights
20 years
1,433
(645
)
1,414
(609
)
Total
$
85,567
$
(8,874
)
$
84,866
$
(7,662
)
Comcast 2013 Annual Report on Form 10
-
K
98