XM Radio 2011 Annual Report Download - page 125

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SIRIUS XM RADIO INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(17) Commitments and Contingencies
The following table summarizes our expected contractual cash commitments as of December 31, 2011:
2012 2013 2014 2015 2016 Thereafter Total
Long-term debt
obligations(1) ..... $ 1,623 $ 779,636 $550,182 $1,057,000 $ — $ 700,000 $3,088,441
Cash interest
payments(1) ...... 288,338 288,208 186,935 113,433 53,375 106,750 1,037,039
Satellite and
transmission ...... 60,517 5,526 13,296 13,156 3,455 18,638 114,588
Programming and
content .......... 238,792 182,885 157,106 151,531 8,750 — 739,064
Marketing and
distribution ....... 46,153 17,555 12,816 11,644 8,617 3,192 99,977
Satellite incentive
payments ......... 11,577 12,660 12,615 12,010 12,913 74,989 136,764
Operating lease
obligations ....... 34,662 31,291 26,135 28,528 18,422 195,213 334,251
Other .............. 29,681 10,659 1,602 268 182 — 42,392
Total(2) ............ $711,343 $1,328,420 $960,687 $1,387,570 $105,714 $1,098,782 $5,592,516
(1) Includes captial lease obligations.
(2) The table does not include our reserve for uncertain tax positions, which at December 31, 2011 totaled $1,524, as the
specific timing of any cash payments relating to this obligation cannot be projected with reasonable certainty.
Long-term debt obligations. Long-term debt obligations include principal payments on outstanding debt
and capital lease obligations.
Cash interest payments. Cash interest payments include interest due on outstanding debt through maturity.
Satellite and transmission. We have entered into agreements with third parties to operate and maintain the
off-site satellite telemetry, tracking and control facilities and certain components of our terrestrial repeater
networks. We have also entered into various agreements to design and construct a satellite and related launch
vehicle for use in our systems.
Programming and content. We have entered into various programming agreements. Under the terms of
these agreements, our obligations may include fixed payments, advertising commitments and revenue sharing
arrangements.
Marketing and distribution. We have entered into various marketing, sponsorship and distribution
agreements to promote our brand and are obligated to make payments to sponsors, retailers, automakers and
radio manufacturers under these agreements. Certain programming and content agreements also require us to
purchase advertising on properties owned or controlled by the licensors. We also reimburse automakers for
certain engineering and development costs associated with the incorporation of satellite radios into vehicles they
manufacture. In addition, in the event certain new products are not shipped by a distributor to its customers
within 90 days of the distributor’s receipt of goods, we have agreed to purchase and take title to the product.
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