Sirius XM Holdings Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill for the twelve months ended December 31, 2015 are as follows:



	Goodwill
	(in thousands)
Balance as of December 31, 2014	$	—
Goodwill resulting from business combinations	303,875
Balance as of December 31, 2015	$	303,875

The following summarizes information regarding the gross carrying amounts and accumulated amortization of intangibles:



		As of December 31, 2014							As of December 31, 2015
	Weighted average remaining useful lives (in years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value		Gross Carrying Amount		Accumulated Amortization			Net Carrying Value
		(in thousands)
Finite-lived intangible assets
Patents	8.5	$	8,030	$	(1,091	)	$	6,939	$	8,030	$	(1,824	)	$	6,206
Developed technology	4.7	—		—			—		56,050		(1,265		)	54,785
Customer relationships - clients	7.8	—		—			—		37,300		(777		)	36,523
Customer relationships - users	1.7	—		—			—		1,940		(318		)	1,622
Trade names	7.3	—		—			—		11,720		(304		)	11,416
Total finite-lived intangible assets	6.2	$	8,030	$	(1,091	)	$	6,939	$	115,040	$	(4,488	)	$	110,552

Indefinite-lived intangible assets
FCC license - broadcast radio		$	—	$	—		$	—	$	193	$	—		$	193

Total intangible assets		$	8,030	$	(1,091	)	$	6,939	$	115,233	$	(4,488	)	$	110,745

Amortization expense of intangible assets was $0.4 million, $0.7 million and $3.4 million for the eleven months ended December 31, 2013 and the twelve months ended December 31, 2014 and 2015, respectively.

The following is a schedule of future amortization expense related to finite-lived intangible assets as of December 31, 2015.



	As of December 31, 2015
	(in thousands)
2016	$	20,437
2017	20,002
2018	17,649
2019	17,129
2020	15,896
Thereafter	19,439
Total future amortization expense	$	110,552

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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