XM Radio 2012 Annual Report Download - page 79
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Unaudited For the Year Ended December 31, 2011
(in thousands) As Reported
Purchase Price
Accounting
Adjustments
Allocation of
Share-based
Payment Expense Adjusted
Revenue:
Subscriber revenue .............. $2,595,414 $ 3,659 $ — $2,599,073
Advertising revenue, net of agency
fees ........................ 73,672 — — 73,672
Equipment revenue .............. 71,051 — — 71,051
Other revenue .................. 274,387 7,251 — 281,638
Total revenue .................... $3,014,524 $ 10,910 $ — $3,025,434
Operating expenses
Cost of services:
Revenue share and royalties ..... $ 471,149 $126,941 $ — $ 598,090
Programming and content ....... 281,234 49,172 (6,212) 324,194
Customer service and billing .... 259,719 18 (1,502) 258,235
Satellite and transmission ....... 75,902 313 (2,678) 73,537
Cost of equipment ............. 33,095 — — 33,095
Subscriber acquisition costs ....... 434,482 85,491 — 519,973
Sales and marketing ............. 222,773 15,233 (8,193) 229,813
Engineering, design and
development ................. 53,435 31 (4,851) 48,615
General and administrative ........ 238,738 59 (29,933) 208,864
Depreciation and amortization (a) . . 267,880 — — 267,880
Share-based payment expense (b) . . — — 53,369 53,369
Total operating expenses ........... $2,338,407 $277,258 $ — $2,615,665
(a) Purchase price accounting adjustments included above exclude the incremental depreciation and amortization associated
with the $785,000 stepped up basis in property, equipment and intangible assets as a result of the Merger. The increased
depreciation and amortization for the year ended December 31, 2011 was $59,000.
(b) Amounts related to share-based payment expense included in operating expenses were as follows:
Programming and content .......... $ 6,185 $ 27 $— $ 6,212
Customer service and billing ........ 1,484 18 — 1,502
Satellite and transmission ........... 2,659 19 — 2,678
Sales and marketing ............... 8,166 27 — 8,193
Engineering, design and
development ................... 4,820 31 — 4,851
General and administrative .......... 29,874 59 — 29,933
Total share-based payment expense . . . $53,188 $181 $— $53,369
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