Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

v3.10.0.1
Intangible Assets
 6 Months Ended
Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
Intangible Assets
Our intangible assets include the following:
 
 
 
June 30, 2018
 
December 31, 2017
 
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

Trademarks
Indefinite
 
250,800

 
—

 
250,800

 
250,800

 
—

 
250,800

Definite life intangible assets:
 
 
 

 
 

 
 

 
 

 
 

 
 

Subscriber relationships
9 years
 
—

 
—

 
—

 
380,000

 
(380,000
)
 
—

OEM relationships
15 years
 
220,000

 
(68,444
)
 
151,556

 
220,000

 
(61,111
)
 
158,889

Licensing agreements
12 years
 
45,289

 
(36,193
)
 
9,096

 
45,289

 
(34,350
)
 
10,939

Software and technology
7 years
 
33,872

 
(17,857
)
 
16,015

 
43,915

 
(25,351
)
 
18,564

Total intangible assets
 
 
$
2,633,615

 
$
(122,494
)
 
$
2,511,121

 
$
3,023,658

 
$
(500,812
)
 
$
2,522,846



Indefinite Life Intangible Assets
We have identified our FCC licenses and the XM and Automatic Labs Inc. trademarks 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 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 June 30, 2018, there were no indicators of impairment, and no impairment loss was recognized for intangible assets with indefinite lives during the three and six months ended June 30, 2018 and 2017.
Definite Life Intangible Assets
Amortization expense for all definite life intangible assets was $5,863 and $12,098 for the three months ended June 30, 2018 and 2017, respectively, and $11,725 and $23,626 for the six months ended June 30, 2018 and 2017, respectively. We retired definite lived intangible assets of $390,043 during the six months ended June 30, 2018 primarily related to fully amortized subscriber relationships. There were no retirements of definite lived intangible assets during the six months ended June 30, 2017. The expected amortization expense for the remaining period in 2018, each of the fiscal years 2019 through 2022 and for periods thereafter is as follows:
Years ending December 31,
 
Amount
2018 (remaining)
 
$
11,413

2019
 
22,701

2020
 
22,121

2021
 
16,678

2022
 
15,542

Thereafter
 
88,212

Total definite life intangible assets, net
 
$
176,667