Comcast 2014 Annual Report Download - page 170

Table of Contents
NBCUniversal Media, LLC
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. 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, 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 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 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 carryin
g 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
$
777
2016
$
748
2017
$
747
2018
$
743
2019
$
740
165
Comcast 2014 Annual Report on Form 10
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