Comcast 2014 Annual Report Download - page 108

Table of Contents
Comcast Corporation
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. We did not recognize any material impairment charges in any of the periods
presented.
Finite-Lived Intangible Assets
Estimated Amortization Expense of Finite-Lived Intangible Assets
Finite-
lived intangible assets are subject to amortization and consist primarily of customer relationships acquired in business
combinations, software, cable franchise renewal costs, contractual operating rights, and intellectual property rights. Our finite-
lived
intangible assets are amortized primarily on a straight-
line basis over their estimated useful life or the term of the associated
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 other 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 finite-
lived intangible assets 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)
2015
$
1,619
2016
$
1,457
2017
$
1,296
2018
$
1,053
2019
$
842
103
Comcast 2014 Annual Report on Form 10-
K