Comcast 2014 Annual Report Download - page 83

Table of Contents
Capitalized film and television costs, as well as stage play production costs, are subject to impairment testing when certain
triggering events are identified. If the fair value of a production were to fall below its unamortized cost, we would record an
adjustment for the amount by which the unamortized capitalized costs exceed the production’
s fair value. The fair value
assessment is generally based on estimated future discounted cash flows, which are supported by our internal forecasts.
Adjustments to capitalized film and stage play production costs of $26 million, $167 million and $161 million were recorded in 2014,
2013 and 2012, respectively.
Income Taxes
We base our provision for income taxes on our current period income, changes in our deferred income tax assets and liabilities,
income tax rates, changes in estimates of our uncertain tax positions, and tax planning opportunities available in the jurisdictions in
which we operate. We prepare and file tax returns based on our interpretation of tax laws and regulations, and we record estimates
based on these judgments and interpretations.
From time to time, we engage in transactions in which the tax consequences may be subject to uncertainty. In these cases, we
evaluate our tax positions using the recognition threshold and the measurement attribute in accordance with the accounting
guidance related to uncertain tax positions. Examples of these transactions include business acquisitions and dispositions,
including consideration paid or received in connection with these transactions, certain financing transactions, and the allocation of
income among state and local taxing jurisdictions. Significant judgment is required in assessing and estimating the tax
consequences of these transactions. We determine whether it is more likely than not that a tax position will be sustained on
examination, including the resolution of any related appeals or litigation processes, based on the technical merits of the position. In
evaluating whether a tax position has met the more-likely-than-
not recognition threshold, we presume that the position will be
examined by the appropriate taxing authority that has full knowledge of all relevant information. A tax position that meets the more-
likely-than-
not recognition threshold is measured to determine the amount of benefit to be recognized in our financial
statements. The tax position is measured at the largest amount of benefit that has a greater than 50% likelihood of being realized
when the position is ultimately resolved.
We adjust our estimates periodically to reflect changes in circumstances in ongoing examinations by and settlements with the
various taxing authorities, as well as changes in tax laws, regulations and precedent. We believe that adequate accruals have been
made for income taxes. When uncertain tax positions are ultimately resolved, either individually or in the aggregate, differences
between our estimated amounts and the actual amounts are not expected to have a material adverse effect on our consolidated
financial position but could possibly be material to our consolidated results of operations or cash flow for any one period. In
September 2014, we reduced our accruals for uncertain tax positions and the related accrued interest on these tax positions. The
reduction resulted in a decrease of $724 million in income tax expense, which excludes the benefits of uncertain tax positions for
which we have been indemnified. As of December 31, 2014, our uncertain tax positions and related accrued interest were $1.2
billion and $452 million, respectively.
Comcast 2014 Annual Report on Form 10-K
78