v2.4.0.8
Intangible Assets
12 Months Ended
Dec. 31, 2013
Goodwill And Intangible Assets Disclosure [Abstract]  
Intangible Assets

8. Intangible Assets

Our intangible assets are comprised of indefinite- and finite-lived intangible assets. We own the rights to both 3MHz of ATG spectrum in the nationwide 800 MHz Commercial Air-Ground Radiotelephone band (the “3 MHz FCC License”), which is used in the operation of our ATG network, and the 1 MHz FCC License acquired in the Airfone Acquisition. Together we refer to the 3 MHz FCC License and the 1 MHz FCC License as the “FCC Licenses”. While the FCC Licenses were issued with 10-year terms, such licenses are subject to renewal by the FCC, and renewals of licenses held by others have occurred routinely and at nominal cost. Moreover, we have determined that there are currently no legal, regulatory, contractual, competitive, economic, or other factors that limit the useful life of the FCC Licenses. As a result, the FCC Licenses are treated as indefinite-lived intangible assets which we do not amortize. We reevaluate the useful life of the FCC Licenses each year to determine whether events and circumstances continue to support an indefinite useful life. Our annual impairment assessment of the FCC Licenses for 2013, 2012, and 2011 indicated no impairment.

We amortize our finite-lived intangible assets on a straight-line basis over their estimated useful lives.

Our software relates to the development of internal use software which is used to run our network and support our service offerings. Software also includes software embedded in the equipment that we sell to our customers within the BA segment.

As of December 31 2013 and 2012, our goodwill balance, all of which related to our BA segment, was $0.6 million.

Our intangible assets, other than goodwill, as of December 31, 2013 and 2012 were as follows (in thousands, except for weighted average remaining useful life):

 

     Weighted
Average

Remaining
Useful Life
(in years)
     As of December 31, 2013      As of December 31, 2012  
        Gross
Carrying
Amount
     Accumulated
Amortization
    Net
Carrying
Amount
     Gross
Carrying
Amount
     Accumulated
Amortization
    Net
Carrying
Amount
 

Amortized intangible assets:

                  

Software

     3.2       $ 58,689       $ (27,558   $ 31,131       $ 58,765       $ (35,263   $ 23,502   

Patents

     5.6         500         —          500         —           —          —     

Trademark/trade name (1)

     4.3         3,072         (2,885     187         2,852         (2,852     —     

Aircell Axxess technology

     1.1         4,129         (3,827     302         4,129         (3,549     580   

OEM and dealer relationships

     3.1         6,724         (4,650     2,074         6,724         (3,978     2,746   

Service customer relationships (1)

     6.3         8,081         (1,710     6,371         981         (981     —     
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total amortized intangible assets

        81,195         (40,630     40,565         73,451         (46,623     26,828   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Unamortized intangible assets:

                  

FCC Licenses (1)

        32,283         —          32,283         31,319         —          31,319   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total intangible assets

      $ 113,478       $ (40,630   $ 72,848       $ 104,770       $ (46,623   $ 58,147   
     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

 

(1) See Note 7, “Airfone Acquisition” for further information.

Amortization expense for the years ended December 31, 2013, 2012 and 2011 was $9.2 million, $7.4 million and $10.1 million, respectively.

 

Amortization expense for each of the next five years and thereafter is estimated to be as follows (in thousands):

 

Years ending December 31,    Amortization
Expense
 

2014

   $ 11,730   

2015

   $ 9,714   

2016

   $ 7,926   

2017

   $ 4,023   

2018

   $ 2,635   

Thereafter

   $ 4,537   

Actual future amortization expense could differ from the estimated amount as the result of future investments and other factors.