Annual report pursuant to Section 13 and 15(d)

Goodwill and Other Intangible Assets

v3.19.3.a.u2
Goodwill and Other Intangible Assets
12 Months Ended
Dec. 31, 2019
Goodwill and Other 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, 2018

$

14,247

3,956

180

18,383

Acquisitions

3

3

Balance at December 31, 2018

14,250

3,956

180

18,386

Acquisitions (a)

1,553

1,553

Balance at December 31, 2019

$

15,803

3,956

180

19,939

(a) See note 5 for details regarding Sirius XM Holdings’ acquisition of Pandora.

Other Intangible Assets Not Subject to Amortization

Other intangible assets not subject to amortization, not separately disclosed, are trademarks ($1,262 million and $931 million) at December 31, 2019 and 2018 and franchise rights owned by Braves Holdings ($143 million) as of December 31, 2019 and 2018. 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 2022 and 2025 and the FCC licenses for its XM satellites expire in 2021, 2022 and 2028. 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, 2019

December 31, 2018

 

    

Gross

    

    

Net

    

Gross

    

    

Net

 

carrying

Accumulated

carrying

carrying

Accumulated

carrying

 

amount

amortization

amount

amount

amortization

amount

 

amounts in millions

 

FIA Agreement

$

3,630

(543)

3,087

3,630

(346)

3,284

Customer relationships

3,086

 

(1,123)

 

1,963

 

2,684

 

(795)

 

1,889

Licensing agreements

 

316

 

(185)

 

131

 

316

 

(162)

 

154

Other

 

1,636

 

(877)

 

759

 

1,047

 

(659)

 

388

Total

$

8,668

 

(2,728)

 

5,940

 

7,677

 

(1,962)

 

5,715

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 $790 million, $654 million and $594 million for the years ended December 31, 2019, 2018 and 2017, respectively. Based on its amortizable intangible assets as of December 31, 2019, Liberty expects that amortization expense will be as follows for the next five years (amounts in millions):

2020

    

$

790

2021

$

738

2022

$

584

2023

$

523

2024

$

405