Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

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Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2023
Intangible Assets  
Intangible Assets

(8)  Goodwill and Other Intangible Assets

Goodwill

Changes in the carrying amount of goodwill are as follows:

Sirius XM Holdings

Formula 1

    

Other

    

Total

 

amounts in millions

Balance at January 1, 2022

$

15,112

3,956

180

19,248

Acquisitions (a)

97

97

Other

(4)

(4)

Balance at December 31, 2022

15,209

3,956

176

19,341

Split-Off

(176)

(176)

Balance at December 31, 2023

$

15,209

3,956

19,165

(a) During January 2022 and May 2022, Sirius XM Holdings completed immaterial acquisitions for total cash consideration of approximately $136 million.

Other Intangible Assets Not Subject to Amortization

Other intangible assets not subject to amortization, not separately disclosed, are trademarks ($1,242 million) at December 31, 2023 and 2022 and franchise rights owned by Braves Holdings ($124 million) as of December 31, 2022. We identified these assets 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. Sirius XM Holdings’ Federal Communications Commission (“FCC”) licenses for its Sirius satellites expire in 2025 and 2030 and the FCC licenses for its XM satellites expire in 2026 and 2029. Prior to expiration, Sirius XM Holdings is required to apply for a renewal of its FCC licenses. The renewal and extension of its licenses is reasonably certain at minimal cost, which is expensed as incurred. Each of the FCC licenses authorizes Sirius XM Holdings to use the broadcast spectrum, which is a renewable, reusable resource that does not deplete or exhaust over time.

Intangible Assets Subject to Amortization

Intangible assets subject to amortization are comprised of the following:

December 31, 2023

December 31, 2022

 

    

Gross

    

    

Net

    

Gross

    

    

Net

 

carrying

Accumulated

carrying

carrying

Accumulated

carrying

 

amount

amortization

amount

amount

amortization

amount

 

amounts in millions

 

FIA Agreement

$

3,630

(1,304)

2,326

3,630

(1,125)

2,505

Customer relationships

3,054

 

(2,180)

 

874

 

3,054

 

(1,936)

 

1,118

Licensing agreements

 

317

 

(243)

 

74

 

359

 

(272)

 

87

Other

 

2,512

 

(1,914)

 

598

 

2,191

 

(1,613)

 

578

Total

$

9,513

 

(5,641)

 

3,872

 

9,234

 

(4,946)

 

4,288

The FIA Agreement is amortized over 35 years, customer relationships are amortized over 10-15 years and licensing agreements are amortized over 15 years. Amortization expense was $760 million, $782 million and $802 million for the years ended December 31, 2023, 2022 and 2021, respectively. Based on its amortizable intangible assets as of December 31, 2023, Liberty expects that amortization expense will be as follows for the next five years (amounts in millions):

2024

    

$

627

2025

$

575

2026

$

413

2027

$

279

2028

$

202

Impairments

As of December 31, 2023, accumulated goodwill impairment losses for Liberty totaled $956 million and related entirely to the Sirius XM Holdings reportable segment.