Comcast 2014 Annual Report Download - page 107

Table of Contents
Comcast Corporation
test goodwill for impairment at the reporting unit level. To determine our reporting units, we evaluate the components one level
below the segment level and we aggregate the components if they have similar economic characteristics. As a result of this
assessment, our reporting units are the same as our five reportable segments. We evaluate the determination of our reporting units
used to test for impairment periodically or whenever events or substantive changes in circumstances occur. The assessment of
recoverability may first consider qualitative factors to determine whether the existence of events or circumstances leads to a
determination that it is more likely than not that the fair value of a reporting unit 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. The quantitative assessment considers if the carrying amount of a reporting unit exceeds its fair value, in which
case an impairment charge is recorded to the extent the carrying amount of the reporting unit’
s goodwill exceeds its implied fair
value. Unless presented separately, the impairment charge is included as a component of amortization expense.
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 cable 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.
2014
2013
December 31 (in millions)
Weighted-
Average
Original Useful Life
as of December 31, 2014
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
3,083
3,089
FCC licenses
N/A
651
652
Finite
-
Lived Intangible Assets:
Customer relationships
19 years
15,129
$
(5,495
)
15,037
$
(4,772
)
Software
5 years
5,040
(2,832
)
4,271
(2,405
)
Cable franchise renewal costs and contractual operating
rights
10 years
1,418
(792
)
1,360
(745
)
Patents and other technology rights
8 years
373
(330
)
361
(307
)
Other agreements and rights
20 years
1,456
(721
)
1,433
(645
)
Total
$
86,514
$
(10,170
)
$
85,567
$
(8,874
)
Comcast 2014 Annual Report on Form 10
-
K
102