XML 42 R17.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Intangible Assets | 12 Months Ended
--- | ---
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets | Intangible Assets Our intangible assets include the following:
|  |  | December 31, 2019 |  | December 31, 2018
| 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 |  |  | (90 | ) |  | 130 |  |  | 220 |  |  | (76 | ) |  | 144 |
Licensing agreements | 12 years |  | 45 |  |  | (42 | ) |  | 3 |  |  | 45 |  |  | (38 | ) |  | 7 |
Software and technology | 7 years |  | 35 |  |  | (25 | ) |  | 10 |  |  | 35 |  |  | (20 | ) |  | 15 |
Due to Pandora Acquisition: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Indefinite life intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trademarks | Indefinite |  | $ | 331 |  |  | $ | — |  |  | $ | 331 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Definite life intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships | 8 years |  | 403 |  |  | (49 | ) |  | 354 |  |  | — |  |  | — |  |  | — |
Software and technology | 5 years |  | 373 |  |  | (69 | ) |  | 304 |  |  | — |  |  | — |  |  | — |
Total intangible assets |  |  | $ | 3,742 |  |  | $ | (275 | ) |  | $ | 3,467 |  |  | $ | 2,635 |  |  | $ | (134 | ) |  | $ | 2,501 |
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. As part of the Pandora Acquisition, we also identified $331 related to its trademarks, for which the fair value was determined using the relief from royalty method as of the acquisition date. 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. ASC 350-30-35, Intangibles - Goodwill and Other, provides for an option to first perform a qualitative assessment to determine whether it is more likely than not that an asset is impaired. If the qualitative assessment supports that it is more likely than not that the fair value of the asset exceeds its carrying value, a quantitative impairment test is not required. If the qualitative assessment does not support the fair value of the asset, then a quantitative assessment is performed. 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. We completed qualitative assessments of our FCC licenses and XM, Pandora and Automatic trademarks during the fourth quarter of 2019, 2018 and 2017. As of the date of our annual assessment for 2019, 2018 and 2017, our qualitative impairment assessment of the fair value of our indefinite intangible assets indicated that the fair value of such assets substantially exceeded their carrying value and therefore was not at risk of impairment. No impairment loss was recognized for intangible assets with indefinite lives during the years ended December 31, 2019, 2018 and 2017. Definite Life Intangible Assets Definite-lived intangible assets are amortized over their respective estimated useful lives to their estimated residual values, in a pattern that reflects when the economic benefits will be consumed, and are reviewed for impairment under the provisions of ASC 360-10-35, Property, Plant and Equipment/Overall/Subsequent Measurement. We review intangible assets subject to amortization for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the expected cash flows, undiscounted and without interest, is less than the carrying amount of the asset, an impairment loss is recognized in an amount by which the carrying amount of the asset exceeds its fair value. No impairments were recorded for intangible assets with definite lives during the years ended December 31, 2019, 2018 and 2017. Amortization expense for all definite life intangible assets was $141, $23 and $38 for the years ended December 31, 2019, 2018 and 2017, respectively. We retired definite lived intangible assets of $390 during the year ended December 31, 2018 primarily related to fully amortized subscriber relationships and acquired proprietary software. There were no retirements of definite lived intangible assets during the years ended December 31, 2019 and 2017. As part of the Pandora Acquisition, $776 was allocated to identifiable intangible assets subject to amortization and related to the assessed fair value of customer relationships and software and technology, which was determined by using the multi-period excess earnings method and the relief from royalty method, respectively, as of the acquisition date. 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 |  | $ | 152 |
2021 |  | 146 |
2022 |  | 144 |
2023 |  | 134 |
2024 |  | 69 |
Thereafter |  | 156 |
Total definite life intangible assets, net |  | $ | 801 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_IntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration