Annual report pursuant to Section 13 and 15(d)

Goodwill and Other Intangible Assets

v2.4.1.9
Goodwill and Other Intangible Assets
12 Months Ended
Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

(9)Goodwill and Other Intangible Assets

 

Changes in the carrying amount of goodwill are as follows:

 

 

 

 

 

 

 

 

 

 

SIRIUS XM

    

Other

    

Total

 

Balance at January 1, 2013

 

NA

 

200 

 

200 

 

Acquisitions (a)

$

14,165 

 

 

14,165 

 

Balance at December 31, 2013

 

14,165 

 

200 

 

14,365 

 

Acquisitions (b)

 

 —

 

24 

 

24 

 

Broadband Spin-Off

 

 —

 

(46)

 

(46)

 

Other

 

 —

 

 

 

Balance at December 31, 2014

$

14,165 

 

180 

 

14,345 

 


(a)

The increase to SIRIUS XM goodwill was the result of the acquisition of a controlling interest in SIRIUS XM in January 2013 and SIRIUS XM's acquisition of Agero in November 2013, see note 3 for further discussion.

(b)

TruePosition made an acquisition during the year ended December 31, 2014.

 

Other intangible assets not subject to amortization, not separately disclosed, are tradenames ($930 million) at December 31, 2014 and 2013 and franchise rights owned by ANLBC ($143 million) as of December 31, 2014 and 2013. 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's FCC licenses are currently scheduled to expire in 2017, 2018, 2021 and 2022. Prior to expiration, SIRIUS XM 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 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, 2014

 

December 31, 2013

 

 

    

Gross

    

 

    

Net

    

Gross

    

 

    

Net

 

 

 

carrying

 

Accumulated

 

carrying

 

carrying

 

Accumulated

 

carrying

 

 

 

amount

 

amortization

 

amount

 

amount

 

amortization

 

amount

 

 

 

amounts in millions

 

Customer relationships

 

$

838 

 

(122)

 

716 

 

838 

 

(65)

 

773 

 

Licensing agreements

 

 

316 

 

(52)

 

264 

 

316 

 

(22)

 

294 

 

Other

 

 

462 

 

(346)

 

116 

 

433 

 

(300)

 

133 

 

Total

 

$

1,616 

 

(520)

 

1,096 

 

1,587 

 

(387)

 

1,200 

 

 

Customer relationships are amortized over 10-15 years and licensing agreements are amortized over 15 years. Amortization expense was $150 million, $115 million and $19 million for the years ended December 31, 2014, 2013 and 2012, respectively. Based on its amortizable intangible assets as of December 31, 2014, Liberty expects that amortization expense will be as follows for the next five years (amounts in millions):

 

 

 

 

 

 

 

2015

    

$

158 

 

2016

 

$

137 

 

2017

 

$

105 

 

2018

 

$

95 

 

2019

 

$

96