XM Radio 2015 Annual Report Download - page 108

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No impairment losses were recorded for goodwill during the years ended December 31, 2015,
2014 and 2013. As of December 31, 2015, the cumulative balance of goodwill impairments
recorded since the July 2008 merger (the “Merger”) between our wholly owned subsidiary, Vernon
Merger Corporation, and XM Satellite Radio Holdings Inc. (“XM”), was $4,766,190, which was
recognized during the year ended December 31, 2008.
(9) Intangible Assets
Our intangible assets include the following:
Weighted
Average
Useful Lives
Gross
Carrying
Value
Accumulated
Amortization
Net
Carrying
Value
Gross
Carrying
Value
Accumulated
Amortization
Net
Carrying
Value
December 31, 2015 December 31, 2014
Indefinite life intangible
assets:
FCC licenses . ...... Indefinite $2,083,654 $ — $2,083,654 $2,083,654 $ — $2,083,654
Trademark .......... Indefinite 250,000 — 250,000 250,000 — 250,000
Definite life intangible
assets:
Subscriber
relationships ...... 9 years 380,000 (336,822) 43,178 380,000 (305,755) 74,245
OEM relationships. . . 15 years 220,000 (31,778) 188,222 220,000 (17,111) 202,889
Licensing
agreements . ...... 12 years 45,289 (26,977) 18,312 45,289 (23,290) 21,999
Proprietary software . 8 years 27,215 (17,752) 9,463 27,215 (15,691) 11,524
Developed
technology . . ...... 10 years 2,000 (1,483) 517 2,000 (1,283) 717
Leasehold interests. . 7.4 years 132 (132) — 132 (114) 18
Total intangible
assets .......... $3,008,290 $(414,944) $2,593,346 $3,008,290 $(363,244) $2,645,046
Indefinite Life Intangible Assets
We have identified our FCC licenses and the XM trademark as indefinite life intangible assets
after considering the expected use of the assets, the regulatory and economic environment within
which they are used and the effects of obsolescence on their use.
We hold FCC licenses to operate our satellite digital audio radio service and provide ancillary
services. The following table outlines the years in which each of our satellite licenses expires:
FCC satellite licenses
Expiration
year
SIRIUS FM-1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2017
SIRIUS FM-2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2017
SIRIUS FM-3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2017
SIRIUS FM-5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2017
SIRIUS FM-6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2022
XM-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2021
XM-4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2022
XM-5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2018
Our XM-1 satellite is operating under Special Temporary Authority from the FCC and is in the
process of being de-orbited. Prior to expiration of our FCC licenses, we are required to apply for a
renewal of our FCC licenses. The renewal and extension of our licenses, including temporary
licenses, is reasonably certain at minimal cost, which is expensed as incurred. Each of the FCC
F-17
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars and shares in thousands, except per share amounts)