XM Radio 2009 Annual Report Download - page 147

As Reported
Predecessor
Financial
Information
Purchase Price
Accounting
Adjustments(a)
Allocation of
Share-based
Payment Expense Pro Forma
Unaudited for the Year Ended December 31, 2008
(In thousands)
Revenue:
Subscriber revenue, including effects
of rebates . . . . . . . . . . . . . . . . . . . $ 1,548,919 $ 670,870 $ 38,533 $ — $2,258,322
Advertising revenue, net of agency
fees . . . . . . . . . . . . . . . . . . . . . . . 47,190 22,743 — — 69,933
Equipment revenue . . . . . . . . . . . . . . 56,001 13,397 — — 69,398
Other revenue . . . . . . . . . . . . . . . . . . 11,882 24,184 3,021 — 39,087
Total revenue . . . . . . . . . . . . . . . . . . . . 1,663,992 731,194 41,554 — 2,436,740
Operating expenses (depreciation and
amortization shown separately
below)(1)
Cost of services:
Satellite and transmission . . . . . . . . 59,279 46,566 424 (7,084) 99,185
Programming and content . . . . . . . . 312,189 117,156 34,667 (17,374) 446,638
Revenue share and royalties . . . . . . 280,852 166,606 30,504 — 477,962
Customer service and billing. . . . . . 165,036 82,947 193 (3,981) 244,195
Cost of equipment . . . . . . . . . . . . . 46,091 20,013 — — 66,104
Sales and marketing . . . . . . . . . . . . . 231,937 126,054 5,393 (21,088) 342,296
Subscriber acquisition costs . . . . . . . . 371,343 174,083 31,714 (14) 577,126
General and administrative . . . . . . . . . 213,142 116,444 1,083 (63,637) 267,032
Engineering, design and
development . . . . . . . . . . . . . . . . . 40,496 23,045 400 (11,441) 52,500
Impairment of goodwill . . . . . . . . . . . 4,766,190 — (4,766,190) — —
Depreciation and amortization . . . . . . 203,752 88,749 (46,930) — 245,571
Restructuring, impairments and related
costs . . . . . . . . . . . . . . . . . . . . . . 10,434 — — — 10,434
Share-based payment expense. . . . . . . — — — 124,619 124,619
Total operating expenses . . . . . . . . . . . . 6,700,741 961,663 (4,708,742) — 2,953,662
(Loss) income from operations . . . . . . (5,036,749) (230,469) 4,750,296 — (516,922)
Other income (expense) Interest and
investment income . . . . . . . . . . . . . . 9,079 3,013 — — 12,092
Interest expense, net of amounts
capitalized . . . . . . . . . . . . . . . . . . (144,833) (73,937) (16,885) — (235,655)
Loss on extinguishment of debt and
credit facilities, net . . . . . . . . . . . . (98,203) — — — (98,203)
Loss on investments . . . . . . . . . . . . . (30,507) (13,010) — — (43,517)
Other expense. . . . . . . . . . . . . . . . . . (9,599) (6,543) — — (16,142)
Total other expense. . . . . . . . . . . . . . . . (274,063) (90,477) (16,885) — (381,425)
(Loss) income before income taxes . . . (5,310,812) (320,946) 4,733,411 — (898,347)
Income tax expense . . . . . . . . . . . . . . (2,476) (1,512) — — (3,988)
Net (loss) income . . . . . . . . . . . . . $(5,313,288) $(322,458) $ 4,733,411 $ — $ (902,335)
(1) Amounts related to share-based payment expense included in operating expenses were as follows:
Satellite and transmission . . . . . . . . $ 4,236 $ 2,745 $ 103 $ — $ 7,084
Programming and content . . . . . . . . 12,148 4,949 277 — 17,374
Customer service and billing. . . . . . 1,920 1,869 192 — 3,981
Sales and marketing. . . . . . . . . . . . 13,541 7,047 500 — 21,088
Subscriber acquisition costs . . . . . . 14 — — — 14
General and administrative . . . . . . . 49,354 13,200 1,083 — 63,637
Engineering, design and
development . . . . . . . . . . . . . . . 6,192 4,675 574 — 11,441
Total share-based payment
expense. . . . . . . . . . . . . . . . . . . $ 87,405 $ 34,485 $ 2,729 $ — $ 124,619
(a) Includes impairment of goodwill.
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