XM Radio 2010 Annual Report Download - page 106

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(5) Intangible Assets
Intangible assets consisted of the following:
Weighted Average
Useful Lives
Gross
Carrying
Value
Accumulated
Amortization
Net Carrying
Value
Gross
Carrying
Value
Accumulated
Amortization
Net Carrying
Value
December 31, 2010 December 31, 2009
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 (144,325) 235,675 380,000 (91,186) 288,814
Licensing
agreements . . . . . . 9.1 years 75,000 (23,721) 51,279 75,000 (13,906) 61,094
Proprietary software . . 6 years 16,552 (9,566) 6,986 16,552 (6,823) 9,729
Developed
technology . . . . . . . 10 years 2,000 (483) 1,517 2,000 (283) 1,717
Leasehold interests . . . 7.4 years 132 (43) 89 132 (25) 107
Total intangible
assets . . . . . . . . $2,807,338 $(178,138) $2,629,200 $2,807,338 $(112,223) $2,695,115
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 licenses expires:
FCC License Expiration Year
SIRIUS FM-1 satellite ............................................... 2017
SIRIUS FM-2 satellite ............................................... 2017
SIRIUS FM-3 satellite ............................................... 2017
SIRIUS FM-4 ground spare satellite ..................................... 2017
SIRIUS FM-5 satellite ............................................... 2017
XM-1 satellite ..................................................... 2014
XM-2 satellite ..................................................... 2014
XM-3 satellite ..................................................... 2013
XM-4 satellite ..................................................... 2014
XM-5 satellite ..................................................... 2018
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.
F-18
SIRIUS XM RADIO INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)