Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

v3.20.1
Intangible Assets
 3 Months Ended
Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
Intangible Assets
Our intangible assets include the following:
 
 
 
March 31, 2020
 
December 31, 2019
 
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
 
$
2,084

 
$
—

 
$
2,084

 
$
2,084

 
$
—

 
$
2,084

Trademarks
Indefinite
 
251

 
—

 
251

 
251

 
—

 
251

Definite life intangible assets:
 
 
 

 
 

 
 

 
 

 
 

 
 

OEM relationships
15 years
 
220

 
(94
)
 
126

 
220

 
(90
)
 
130

Licensing agreements
12 years
 
45

 
(43
)
 
2

 
45

 
(42
)
 
3

Software and technology
7 years
 
35

 
(26
)
 
9

 
35

 
(25
)
 
10

Due to Pandora Acquisition:



















Indefinite life intangible assets:



















Trademarks
Indefinite

$
331


$
—


$
331


$
331


$
—


$
331

Definite life intangible assets:



















Customer relationships
8 years

403


(62
)

341


403


(49
)

354

Software and technology
5 years

373


(88
)

285


373


(69
)

304

Total intangible assets
 
 
$
3,742

 
$
(313
)
 
$
3,429

 
$
3,742

 
$
(275
)
 
$
3,467



Indefinite Life Intangible Assets
We have identified our FCC licenses and XM, Pandora and Automatic 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. Each of the FCC licenses authorizes us to use radio spectrum, a reusable resource that does not deplete or exhaust over time.
Our annual impairment assessment of our identifiable indefinite lived 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 in an amount equal to that excess. As of March 31, 2020, there were no indicators of impairment, and no impairment loss was recognized for intangible assets with indefinite lives during the three months ended March 31, 2020 and 2019.
Definite Life Intangible Assets
Amortization expense for all definite life intangible assets was $38 and $27 for the three months ended March 31, 2020 and 2019, respectively. There were no retirements of definite lived intangible assets during the three months ended March 31, 2020.
The expected amortization expense for each of the fiscal years 2020 through 2024 and for periods thereafter is as follows:
Years ending December 31,
 
Amount
2020 (remaining)
 
$
114

2021
 
146

2022
 
144

2023
 
134

2024
 
69

Thereafter
 
156

Total definite life intangible assets, net
 
$
763