Comcast 2013 Annual Report Download - page 167

Table of Contents
NBCUniversal Media, LLC
Indefinite-Lived Intangible Assets
Indefinite-lived intangible assets consist of trade names and FCC licenses. We assess the recoverability of our indefinite-
lived
intangible assets annually, or more frequently whenever events or substantive changes in circumstances indicate that the assets
might be impaired. We evaluate the unit of account used to test for impairment of our 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 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 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.
Finite-Lived Intangible Assets
Estimated Amortization Expense of Finite-Lived Intangibles
Finite-
lived intangible assets are subject to amortization and consist primarily of customer relationships acquired in business
combinations, intellectual property rights and software. Our finite-lived intangible assets are amortized primarily on a straight-
line
basis over their estimated useful life or the term of the respective agreement.
We capitalize direct development costs associated with internal-
use software, including external direct costs of material and
services and payroll costs for employees devoting time to these software projects. We also capitalize costs associated with the
purchase of software licenses. We include these costs in intangible assets and amortize them on a straight-
line basis over a period
not to exceed five years. We expense maintenance and training costs, as well as costs incurred during the preliminary stage of a
project, as they are incurred. We capitalize initial operating system software costs and amortize them over the life of the associated
hardware.
We evaluate the recoverability of our intangible assets subject to amortization 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 amortization expense.
(in millions)
2014
$
771
2015
$
762
2016
$
739
2017
$
740
2018
$
734
Comcast 2013 Annual Report on Form 10
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K
162