Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

v3.8.0.1
Intangible Assets
 9 Months Ended
Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
Intangible Assets
Our intangible assets include the following:
 
 
 
September 30, 2017
 
December 31, 2016
 
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
 
250,800

 
—

 
250,800

 
250,000

 
—

 
250,000

Definite life intangible assets:
 
 
 

 
 

 
 

 
 

 
 

 
 

Subscriber relationships
9 years
 
380,000

 
(380,000
)
 
—

 
380,000

 
(364,893
)
 
15,107

OEM relationships
15 years
 
220,000

 
(57,444
)
 
162,556

 
220,000

 
(46,444
)
 
173,556

Licensing agreements
12 years
 
45,289

 
(33,428
)
 
11,861

 
45,289

 
(30,664
)
 
14,625

Software and technology
7 years
 
43,915

 
(24,077
)
 
19,838

 
29,215

 
(21,356
)
 
7,859

Total intangible assets
 
 
$
3,023,658

 
$
(494,949
)
 
$
2,528,709

 
$
3,008,158

 
$
(463,357
)
 
$
2,544,801



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. As part of the Automatic acquisition in April 2017, we have also identified $800 related to its trademark.
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 satellite licenses expires:
FCC satellite licenses
 
Expiration year
SIRIUS FM-5
 
2025
SIRIUS FM-6
 
2022
XM-3
 
2021
XM-4
 
2022
XM-5
 
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 radio spectrum, which is a renewable, reusable resource that does not deplete or exhaust over time.
Our annual impairment assessment of our identifiable indefinite life 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. As of September 30, 2017, there were no indicators of impairment, and no impairment loss was recorded, for intangible assets with indefinite lives during the three and nine months ended September 30, 2017 and 2016.
Definite Life Intangible Assets
As part of the Automatic acquisition in April 2017, $14,700 was allocated to identifiable intangible assets subject to amortization and relates to the assessed fair value of software and technology. Amortization expense for all definite life intangible assets was $7,966 and $12,080 for the three months ended September 30, 2017 and 2016, respectively, and $31,592 and $36,778 for the nine months ended September 30, 2017 and 2016, respectively. Expected amortization expense for the remaining period in 2017, each of the fiscal years 2018 through 2021 and for periods thereafter is as follows:
Years ending December 31,
 
Amount
2017 (remaining)
 
$
5,863

2018
 
23,138

2019
 
22,701

2020
 
22,121

2021
 
16,678

Thereafter
 
103,754

Total definite life intangible assets, net
 
$
194,255