XM Radio 2012 Annual Report Download - page 100

SIRIUS XM RADIO INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Accumulated Other Comprehensive Income
Accumulated other comprehensive income of $120 at December 31, 2012 was primarily comprised of
foreign currency translation adjustments related to our interest in Sirius XM Canada. During the years ended
December 31, 2012, 2011 and 2010, we recorded a foreign currency translation adjustment of $49, $(140) and
$251, respectively, which is recorded net of taxes of $48, $11 and $63, respectively. In addition, during the year
ended December 31, 2011, we recorded a loss on our XM Canada investment foreign currency translation
adjustment of $6,072. During the year ended December 31, 2010, we recorded an unrealized gain on available-
for-sale securities of $469.
Recent Accounting Pronouncements
In May 2011, the FASB issued ASU 2011-04, Amendments to Achieve Common Fair Value Measurement
and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards (Topic 820) —
Fair Value Measurement, to provide a consistent definition of fair value and ensure that the fair value
measurement and disclosure requirements are similar between U.S. GAAP and International Financial Reporting
Standards. ASU 2011-04 changes certain fair value measurement principles and enhances the disclosure
requirements particularly for Level 3 fair value measurements. This standard is effective for interim and annual
periods beginning after December 15, 2011 and is applied on a prospective basis. We adopted ASU 2011-04 as
of January 1, 2012 and the impact was not material to our consolidated financial statements.
In June 2011, the FASB issued ASU 2011-05, Comprehensive Income (Topic 220), Presentation of
Comprehensive Income, to require an entity to present the total of comprehensive income, the components of net
income, and the components of other comprehensive income either in single continuous statement of
comprehensive income or in two separate but consecutive statements. ASU 2011-05 eliminates the option to
present the components of other comprehensive income as part of the statement of equity. The standard does not
change the items which must be reported in other comprehensive income, how such items are measured or when
they must be reclassified to net income. This standard is effective for interim and annual periods beginning after
December 15, 2011 and is to be applied retrospectively. The FASB has deferred the requirement to present
reclassification adjustments for each component of accumulated other comprehensive income in both net income
and other comprehensive income. Companies are required to either present amounts reclassified out of other
comprehensive income on the face of the financial statements or disclose those amounts in the notes to the
financial statements. During the deferral period, there is no requirement to separately present or disclose the
reclassification adjustments into net income. The effective date of this deferral was consistent with the effective
date of ASU 2011-05. We adopted ASU 2011-05 as of January 1, 2012 and disclosed comprehensive income in
our consolidated statements of comprehensive income. ASU 2011-05 affects financial statement presentation and
has no impact on our results of consolidated financial statements.
In July 2012, the FASB issued ASU 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment.
The guidance gives companies the option to first perform a qualitative assessment to determine whether it is
more likely than not that an indefinite-lived intangible asset is impaired. If the qualitative assessment supports
that it is more likely than not the fair value of the asset exceeds its carrying amount, the company would not be
required to perform a quantitative impairment test. If the qualitative assessment does not support the fair value of
the asset, then a quantitative assessment is performed. ASU 2012-02 is effective for public entities for annual and
interim impairment tests performed for fiscal years beginning after September 15, 2012. We early adopted ASU
2012-02 and performed a qualitative assessment to determine whether our indefinite-lived intangible assets were
impaired as of the fourth quarter of 2012.
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