Comcast 2015 Annual Report Download - page 165

NBCUniversal Media, LLC
Indefinite-Lived Intangible Assets
Indefinite-lived intangible assets consist of trade names and FCC licenses. We assess the recoverability of
our indefinite-lived intangible assets annually, or more frequently whenever events or substantive changes in
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 per-
formed 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, cur-
rent 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
(in millions)
2016 $ 812
2017 $ 789
2018 $ 776
2019 $ 777
2020 $ 781
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 generally 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 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 amortization expense.
Comcast 2015 Annual Report on Form 10-K 162