Comcast 2015 Annual Report Download - page 163

NBCUniversal Media, LLC
Impairment Testing of Investments
We review our investment portfolio each reporting period to determine whether there are identified events or
circumstances that would indicate there is a decline in the fair value that would be considered other than
temporary. For our nonpublic investments, if there are no identified events or circumstances that would have
a significant adverse effect on the fair value of the investment, then the fair value is not estimated. If an
investment is deemed to have experienced an other-than-temporary decline below its cost basis, we reduce
the carrying amount of the investment to its quoted or estimated fair value, as applicable, and establish a new
cost basis for the investment. For our available-for-sale securities and cost method investments, we record
the impairment to investment income (loss), net. For our equity method investments, we record the impair-
ment to other income (expense), net. In 2013, we recorded $249 million of impairment charges to our equity
method investments, which primarily related to a regional sports cable network based in Houston, Texas.
Note 8: Property and Equipment
December 31 (in millions)
Weighted-Average
Original Useful Life
as of December 31, 2015 2015 2014
Buildings and leasehold improvements 27 years $ 6,543 $ 5,780
Furniture, fixtures and equipment 9 years 3,457 2,930
Construction in process N/A 1,339 775
Land N/A 961 820
Property and equipment, at cost 12,300 10,305
Less: Accumulated depreciation 2,779 2,167
Property and equipment, net $ 9,521 $ 8,138
Property and equipment are stated at cost. We capitalize improvements that extend asset lives and expense
repairs and maintenance costs as incurred. We record depreciation using the straight-line method over the
asset’s estimated useful life. For assets that are sold or retired, we remove the applicable cost and accumu-
lated depreciation and, unless the gain or loss on disposition is presented separately, we recognize it as a
component of depreciation expense.
We evaluate the recoverability of our property and equipment 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 carry-
ing 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 depreciation expense.
Acquisitions of Real Estate Properties
Real estate acquisitions in 2013 included our purchase from GE of certain properties we occupy at 30 Rock-
efeller Plaza in New York City and CNBC’s headquarters in Englewood Cliffs, New Jersey. Other purchases in
2013 included our acquisition of a business whose primary asset is a property located at 10 Universal City
Plaza, which is adjacent to our Universal theme park in Hollywood, California. The purchase price of these
acquisitions is included in the caption “acquisitions of real estate properties” in our consolidated statement of
cash flows.
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