XM Radio 2011 Annual Report Download - page 87

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QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISKS
As of December 31, 2011, we did not have any derivative financial instruments. We do not hold or issue any
free-standing derivatives. We hold investments in marketable securities consisting of money market funds, and
certificates of deposit and investments in debt and equity securities of other entities. We classify our investments
in marketable securities as available-for-sale. These securities are consistent with the investment objectives
contained within our investment policy. The basic objectives of our investment policy are the preservation of
capital, maintaining sufficient liquidity to meet operating requirements and maximizing yield.
Our debt includes fixed rate instruments and the fair market value of our debt is sensitive to changes in
interest rates. Under our current policies, we do not use interest rate derivative instruments to manage our
exposure to interest rate fluctuations.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
None.
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