XM Radio 2010 Annual Report Download - page 107
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In connection with the Merger, $250,000 of the purchase price was allocated to the XM trademark. As of
December 31, 2010, 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, 2010 and December 31, 2010, the fair value of our indefinite
intangible assets substantially exceeded its carrying value and therefore was not at risk of 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 definite life intangible assets was $65,915, $76,587 and $35,789 for the years ended
December 31, 2010, 2009 and 2008, respectively. Expected amortization expense for each of the fiscal years
through December 31, 2015 and for periods thereafter is as follows:
Year Ending December 31, Amount
2011 ............................................................... $ 58,850
2012 ............................................................... 53,420
2013 ............................................................... 47,097
2014 ............................................................... 38,619
2015 ............................................................... 37,293
Thereafter ........................................................... 60,267
Total definite life intangibles assets, net ..................................... $295,546
(6) Subscriber Revenue
Subscriber revenue consists of subscription fees, revenue derived from agreements with certain daily rental
fleet operators, non-refundable activation and other fees as well as the effects of rebates. 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:
2010 2009 2008
For the Years Ended December 31,
Subscription fees ............................... $2,398,790 $2,266,809 $1,529,726
Activation fees ................................. 16,028 21,837 23,025
Effect of rebates ............................... (644) (1,143) (3,832)
Total subscriber revenue ........................ $2,414,174 $2,287,503 $1,548,919
F-19
SIRIUS XM RADIO INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)