XM Radio 2013 Annual Report Download - page 108

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COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollar amounts in thousands, unless otherwise stated)
carrying value and therefore was not at risk of failing step one of ASC 350-20, Goodwill. As a result of the
acquisition of the connected vehicle business of Agero in November 2013, we recorded additional goodwill of
$389,462 during the year ended December 31, 2013. No indicators of impairment were noted subsequent to our
annual impairment assessment.
As of December 31, 2013, there were no indicators of impairment, and no impairment loss was recorded for
goodwill during the years ended December 31, 2013, 2012 and 2011. As of December 31, 2013, the cumulative
balance of goodwill impairments recorded since the Merger was $4,766,190, which was recognized during the
year ended December 31, 2008.
During the years ended December 31, 2013 and 2012, we reduced goodwill by $274 and $19,491,
respectively, related to the subsequent exercise of certain stock options and vesting of certain restricted stock
units that were recorded at fair value in connection with the Merger.
(8) Intangible Assets
We recorded intangible assets at fair value related to the Merger that were formerly held by XM Satellite
Radio Holdings Inc. In November 2013, we recorded intangible assets at fair value as a result of the acquisition
of the connected vehicle business of Agero. Our intangible assets include the following:
Weighted
Average
Useful Lives
December 31, 2013 December 31, 2012
Gross
Carrying
Value
Accumulated
Amortization
Net
Carrying
Value
Gross
Carrying
Value
Accumulated
Amortization
Net
Carrying
Value
Due to the Merger:
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 (271,372) 108,628 380,000 (233,317) 146,683
Licensing agreements . . . 9.1 years 45,289 (19,604) 25,685 78,489 (44,161) 34,328
Proprietary software .... 6years 16,552 (13,384) 3,168 16,552 (12,777) 3,775
Developed
technology ......... 10 years 2,000 (1,083) 917 2,000 (883) 1,117
Leasehold interests ..... 7.4years 132 (96) 36 132 (79) 53
Due to connected vehicle
business of Agero:
Definite life intangible
assets:
OEM relationships ..... 15years $ 220,000 $ (2,444) $ 217,556 $ — $ — $ —
Proprietary software .... 10years 10,663 (245) 10,418 — — —
Total intangible
assets ........... $3,008,290 $(308,228) $2,700,062 $2,810,827 $(291,217) $2,519,610
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.
F-26