XM Radio 2011 Annual Report Download - page 106

SIRIUS XM RADIO INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Prior to expiration, we are required to apply for a renewal of our FCC licenses. The renewal and extension
of our licenses is reasonably certain at minimal cost, which is expensed as incurred. Each of the FCC licenses
authorizes us to use the broadcast spectrum, which is a renewable, reusable resource that does not deplete or
exhaust over time.
In connection with the Merger, $250,000 of the purchase price was allocated to the XM trademark. As of
December 31, 2011, there were no legal, regulatory or contractual limitations associated with the XM trademark.
Our annual impairment assessment of our indefinite intangible assets is performed as of October 1st of each
year. An assessment is made at other times if events or changes in circumstances indicate that it is more likely
than not that the assets have been impaired. At October 1, 2011 and 2010, the fair value of our indefinite
intangible assets substantially exceeded its carrying value and therefore was not at risk of impairment.
Subsequent to our annual evaluation of the carrying value of goodwill, there were no events or circumstances that
triggered the need for an interim evaluation for impairment.
Definite Life Intangible Assets
Subscriber relationships are amortized on an accelerated basis over 9 years, which reflects the estimated
pattern in which the economic benefits will be consumed. Other definite life intangible assets include certain
licensing agreements, which are amortized over a weighted average useful life of 9.1 years on a straight-line
basis.
Amortization expense for all definite life intangible assets was $59,050, $66,324 and $76,587 for the years
ended December 31, 2011, 2010 and 2009, respectively. Expected amortization expense for each of the fiscal
years through December 31, 2016 and for periods thereafter is as follows:
Year ending December 31, Amount
2012 .................................................................... $ 53,680
2013 .................................................................... 47,357
2014 .................................................................... 38,879
2015 .................................................................... 37,553
2016 .................................................................... 31,959
Thereafter ................................................................ 30,556
Total definite life intangibles assets, net ........................................ $239,984
(8) Subscriber Revenue
Subscriber revenue consists of subscription fees, revenue derived from agreements with certain daily rental
fleet operators, non-refundable activation and other fees. Revenues received from OEMs for subscriptions
included in the sale or lease price of vehicles are also included in subscriber revenue over the service period.
Subscriber revenue consists of the following:
For the Years Ended December 31,
2011 2010 2009
Subscription fees ................................. $2,581,433 $2,398,146 $2,265,666
Activation fees ................................... 13,981 16,028 21,837
Total subscriber revenue ......................... $2,595,414 $2,414,174 $2,287,503
F-18