XM Radio 2011 Annual Report Download - page 105

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SIRIUS XM RADIO INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(7) Intangible Assets
Intangible assets consisted of the following:
December 31, 2011 December 31, 2010
Weighted Average
Useful Lives
Gross
Carrying
Value
Accumulated
Amortization
Net Carrying
Value
Gross
Carrying
Value
Accumulated
Amortization
Net Carrying
Value
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 ..... 9years 380,000 (191,201) 188,799 380,000 (144,325) 235,675
Licensing
agreements ...... 9.1years 78,897 (34,145) 44,752 78,897 (24,130) 54,767
Proprietary
software ........ 6years 16,552 (11,507) 5,045 16,552 (9,566) 6,986
Developed
technology ...... 10years 2,000 (683) 1,317 2,000 (483) 1,517
Leasehold
interests ........ 7.4years 132 (61) 71 132 (43) 89
Total intangible
assets ........ $2,811,235 $(237,597) $2,573,638 $2,811,235 $(178,547) $2,632,688
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 satellite(1) ................................................... 2017
SIRIUS FM-5 satellite ..................................................... 2017
SIRIUS FM-6 satellite ..................................................... (2)
XM-1 satellite ............................................................ 2014
XM-2 satellite ............................................................ 2014
XM-3 satellite ............................................................ 2013
XM-4 satellite ............................................................ 2014
XM-5 satellite ............................................................ 2018
(1) In 2010, we retired our FM-4 ground spare satellite. We still maintain the FCC license for this satellite.
(2) We hold an FCC license for our FM-6 satellite, which will expire eight years from when this satellite is launched and placed
into operation.
F-17