XM Radio 2015 Annual Report Download - page 109

licenses authorizes us to use the radio spectrum, which is a renewable, reusable resource that
does not deplete or exhaust over time.
ASU 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment, established an option
to first perform a qualitative assessment to determine whether it is more likely than not that an
asset is impaired. If the qualitative assessment supports that it is more likely than not that the fair
value of the asset exceeds its carrying value, a quantitative impairment test is not required. If the
qualitative assessment does not support the fair value of the asset, then a quantitative assessment
is performed. Our annual impairment assessment of our indefinite intangible assets is performed as
of the fourth quarter of each year. An assessment is performed at other times if an event occurs or
circumstances change that would more likely than not reduce the fair value of the asset below its
carrying value. If the carrying value of the intangible assets exceeds its fair value, an impairment
loss is recognized in an amount equal to that excess.
We completed qualitative assessments of our FCC licenses and XM trademark during the
fourth quarter of 2015, 2014 and 2013. As of the date of our annual assessment for 2015, 2014
and 2013, our qualitative impairment assessment of the fair value of our indefinite intangible assets
indicated that such assets substantially exceeded their carrying value and therefore was not at risk
of impairment. No impairments were recorded for intangible assets with indefinite lives during the
years ended December 31, 2015, 2014, and 2013.
Definite Life Intangible Assets
Definite-lived intangible assets are amortized over their respective estimated useful lives to their
estimated residual values, in a pattern that reflects when the economic benefits will be consumed,
and are reviewed for impairment under the provisions of ASC 360-10-35, Property, Plant and
Equipment/Overall/Subsequent Measurement. We review intangible assets subject to amortization
for impairment whenever events or circumstances indicate that the carrying amount of an asset may
not be recoverable. If the sum of the expected cash flows, undiscounted and without interest, is
less than the carrying amount of the asset, an impairment loss is recognized 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 2015, 2014 or 2013.
Amortization expense for all definite life intangible assets was $51,700, $55,016 and $50,011
for the years ended December 31, 2015, 2014 and 2013, respectively. Expected amortization
expense for each of the fiscal years 2016 through 2020 and for periods thereafter is as follows:
Years ending December 31, Amount
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 48,545
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,882
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,463
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,026
2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,446
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119,330
Total definite life intangible assets, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $259,692
(10) 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.
F-18
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars and shares in thousands, except per share amounts)