XM Radio 2014 Annual Report Download - page 125

as the amount by which the carrying amount of the asset exceeds its fair value. No impairment was
recorded to our intangible assets with definite lives in 2014, 2013 or 2012.
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. The fair value of the OEM relationships and proprietary
software acquired from the acquisition of the connected vehicle business of Agero are being
amortized over their estimated weighted average useful lives of 15 and 10 years, respectively.
Amortization expense for all definite life intangible assets was $55,016, $50,011 and $53,620
for the years ended December 31, 2014, 2013 and 2012, respectively. Expected amortization
expense for each of the fiscal years 2015 through 2019 and for periods thereafter is as follows:
Years ending December 31, Amount
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 51,700
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,545
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,882
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,463
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,026
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137,776
Total definite life intangible assets, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $311,392
(10) Interest Costs
We capitalized a portion of the interest on funds borrowed as part of the cost of constructing
our satellites and related launch vehicles. We primarily capitalized interest associated with our FM-6
satellite and related launch vehicle for the years ended December 31, 2013 and 2012. We also
incurred interest costs on our debt instruments and on our satellite incentive agreements. The
following is a summary of our interest costs:
2014 2013 2012
For the Years Ended December 31,
Interest costs charged to expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $269,010 $204,671 $265,321
Interest costs capitalized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480 26,445 31,982
Total interest costs incurred. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $269,490 $231,116 $297,303
Included in interest costs incurred is non-cash interest expense, consisting of amortization
related to original issue discounts, premiums and deferred financing fees, of $21,039, $21,698 and
$35,924 for the years ended December 31, 2014, 2013 and 2012, respectively.
(11) Property and Equipment
Property and equipment, including satellites, are stated at cost, less accumulated depreciation.
Equipment under capital leases is stated at the present value of minimum lease payments.
Depreciation is calculated using the straight-line method over the following estimated useful life of
the asset:
F-19
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollar amounts in thousands, unless otherwise stated)