Comcast 2015 Annual Report Download - page 97

Comcast Corporation
Note 8: Property and Equipment
December 31 (in millions)
Weighted-Average
Original Useful Life
As of December 31, 2015 2015 2014
Cable distribution system 11 years $ 32,586 $ 31,655
Customer premise equipment 6 years 28,559 27,086
Other equipment 7 years 8,539 7,860
Buildings and leasehold improvements 25 years 10,829 8,650
Land N/A 1,252 1,112
Property and equipment, at cost 81,765 76,363
Less: Accumulated depreciation 48,100 45,410
Property and equipment, net $ 33,665 $ 30,953
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.
In accordance with accounting guidance related to cable television companies, we capitalize the costs asso-
ciated with the construction of and improvements to our cable transmission and distribution facilities, costs
associated with acquiring and deploying new customer premise equipment, and costs associated with
installation of our services. Costs capitalized include all direct costs for labor and materials, as well as various
indirect costs. All costs incurred in connection with subsequent disconnects and reconnects are expensed as
they are incurred.
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 NBCUniversal’s purchase from GE of certain properties NBCUni-
versal occupies at 30 Rockefeller Plaza in New York City and CNBC’s headquarters in Englewood Cliffs, New
Jersey. Other purchases in 2013 included NBCUniversal’s 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, Cal-
ifornia, and our acquisition of an 80% interest in a business whose primary asset is our corporate
headquarters in Philadelphia, Pennsylvania. The purchase price of these acquisitions is included in the cap-
tion “acquisitions and construction of real estate properties” in our consolidated statement of cash flows.
Comcast 2015 Annual Report on Form 10-K 94