Charter 2013 Annual Report Download - page 95

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CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2013, 2012 AND 2011
(dollars in millions, except share or per share data or where indicated)
F- 13
4. Allowance for Doubtful Accounts
Activity in the allowance for doubtful accounts is summarized as follows for the years presented:
Year Ended December 31,
2013 2012 2011
Balance, beginning of period $ 14 $ 16 $ 17
Charged to expense 101 105 117
Uncollected balances written off, net of recoveries (96)(107)(118)
Balance, end of period $ 19 $ 14 $ 16
5. Property, Plant and Equipment
Property, plant and equipment consists of the following as of December 31, 2013 and 2012:
December 31,
2013 2012
Cable distribution systems $ 7,556 $ 6,588
Customer equipment and installations 4,061 3,292
Vehicles and equipment 270 195
Buildings and leasehold improvements 425 342
Furniture, fixtures and equipment 456 352
12,768 10,769
Less: accumulated depreciation (4,787)(3,563)
$ 7,981 $ 7,206
The Company periodically evaluates the estimated useful lives used to depreciate its assets and the estimated amount of assets
that will be abandoned or have minimal use in the future. A significant change in assumptions about the extent or timing of future
asset retirements, or in the Company’s use of new technology and upgrade programs, could materially affect future depreciation
expense.
Depreciation expense for the years ended December 31, 2013, 2012 and 2011 was $1.6 billion, $1.4 billion, and $1.3 billion,
respectively. Property, plant and equipment increased $515 million as a result of cable system acquisitions during the year ended
December 31, 2013.
6. Franchises, Goodwill and Other Intangible Assets
Franchise rights represent the value attributed to agreements or authorizations with local and state authorities that allow access to
homes in cable service areas. For valuation purposes, they are defined as the future economic benefits of the right to solicit and
service potential customers (customer marketing rights), and the right to deploy and market new services to potential customers
(service marketing rights).
Franchise assets are tested for impairment annually, or more frequently as warranted by events or changes in circumstances.
Franchise assets are aggregated into essentially inseparable units of accounting to conduct valuations. The units of accounting
generally represent geographical clustering of our cable systems into groups.