XM Radio 2009 Annual Report Download - page 176

Liberty Media has advised us that as of December 31, 2009 it owned the following principal amounts of our
debt:
2009 2008
December 31,
11.25% Senior Secured Notes due 2013 ................................ $ 87,000 $—
13% Senior Notes due 2013 ........................................ 76,000 —
7% Exchangeable Senior Subordinated Notes due 2014 .................... 11,000 —
95⁄8% Senior Notes due 2013 ........................................ 55,221 —
9.75% Senior Secured Notes due 2015................................. 50,000 —
Total ........................................................ $279,221 $—
As of December 31, 2009, we recorded $8,523 related to accrued interest with Liberty Media to Related party
current liabilities. We recognized Interest expense related to Liberty Media of $79,640 for the year ended
December 31, 2009.
SIRIUS Canada
In 2005, SIRIUS entered into a license and services agreement with SIRIUS Canada. Pursuant to such
agreement, SIRIUS is reimbursed for certain costs incurred to provide SIRIUS Canada service, including certain
costs incurred for the production and distribution of radios, as well as information technology support costs. In
consideration for the rights granted pursuant to this license and services agreement, SIRIUS has the right to receive
a royalty equal to a percentage of SIRIUS Canada’s gross revenues based on subscriber levels (ranging between 5%
to 15%) and the number of Canadian-specific channels made available to SIRIUS Canada. SIRIUS’ investment in
SIRIUS Canada is primarily non-voting shares which carry an 8% cumulative dividend.
We recorded the following revenue from SIRIUS Canada in connection with the agreement above. Royalty
income is included in Other revenue and dividend income is included in Interest and investment income in our
consolidated statements of operations:
2009 2008 2007
For the Years Ended
December 31,
Royalty income.......................................... $5,797 $1,309 $1,159
Dividend income ......................................... 839 199 422
Total revenue from SIRIUS Canada ......................... $6,636 $1,508 $1,581
Receivables recorded relating to royalty income and dividend income were fully utilized to absorb a portion of
our share of the losses generated by SIRIUS Canada during the year ended December 31, 2009. Total costs that have
been or will be reimbursed by SIRIUS Canada for the years ended December 31, 2009, 2008 and 2007 were
$11,031, $14,973 and $7,712, respectively.
XM Canada
In 2005, XM entered into agreements to provide XM Canada with the right to offer XM satellite radio service
in Canada. The agreements have an initial term of ten years and XM Canada has the unilateral option to extend the
term of the agreements for an additional five years at no additional cost beyond the current financial arrangements.
XM Canada has expressed its intent to exercise this option at the end of the initial term of the agreements. XM has
the right to receive a 15% royalty for all subscriber fees earned by XM Canada each month for its basic service and a
nominal activation fee for each gross activation of an XM Canada subscriber on XM’s system. XM Canada is
obligated to pay XM a total of $71,800 for the rights to broadcast and market National Hockey League (“NHL”)
F-22
SIRIUS XM RADIO INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)