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|CHARTER COMMUNICATIONS, INC. /MO/ filed this Form 8-K on 04/07/2016|
BRIGHT HOUSE NETWORKS, LLC AND SUBSIDARIES
Notes to Consolidated Financial Statements
December 31, 2015, 2014 and 2013
Accounts receivable are recorded at net realizable value. The Company maintains an allowance for doubtful accounts, which is determined after considering past collection experience, aging of accounts receivable, general economic factors, and other considerations.
Property, plant, and equipment are recorded at cost. Additions to the Company’s distribution systems include material, labor, and overhead. Depreciation is calculated using the straight‑line method over the estimated useful lives as follows:
Gains and losses on dispositions of property are reported as disposal of assets, net, in the accompanying consolidated statements of income.
Investments in which the Company has significant influence, but less than controlling voting interest, are accounted for under the equity method. Investments in which the Company does not have significant influence are accounted for under the cost method.
The Company writes down an investment to fair value if it is determined that the investment has incurred an other‑than‑temporary decline in value. The Company evaluates available financial information and quoted market prices, where available, to determine fair value (note 5).
The excess of purchase price over the fair value of net tangible and identifiable intangible assets acquired is included in goodwill on the date of acquisition. Goodwill is not amortized.
Intangible assets include cable television franchises acquired in business combinations. These assets are deemed to have an indefinite useful life and are not amortized.
Intangible assets also include costs incurred in negotiating and renewing cable franchise agreements and other contractual rights, such as deferred right‑of‑way costs. These assets have a finite useful life and are amortized on a straight‑line basis over their respective contract terms as follows: