XM Radio 2012 Annual Report Download - page 80

Download and view the complete annual report

Please find page 80 of the 2012 XM Radio annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

Unaudited For the Year Ended December 31, 2010
(in thousands) As Reported
Purchase Price
Accounting
Adjustments
Allocation of
Share-based
Payment Expense Adjusted
Revenue:
Subscriber revenue .............. $2,414,174 $ 14,655 $ — $2,428,829
Advertising revenue, net of agency
fees ........................ 64,517 — — 64,517
Equipment revenue .............. 71,355 — — 71,355
Other revenue .................. 266,946 7,251 — 274,197
Total revenue .................... $2,816,992 $ 21,906 $ — $2,838,898
Operating expenses
Cost of services:
Revenue share and royalties ..... $ 435,410 $107,967 $ — $ 543,377
Programming and content ....... 305,914 57,566 (10,267) 353,213
Customer service and billing .... 241,680 281 (2,207) 239,754
Satellite and transmission ....... 80,947 1,170 (3,397) 78,720
Cost of equipment ............. 35,281 — — 35,281
Subscriber acquisition costs ....... 413,041 79,439 — 492,480
Sales and marketing ............. 215,454 13,983 (9,423) 220,014
Engineering, design and
development ................. 45,390 520 (5,868) 40,042
General and administrative ........ 240,970 906 (32,147) 209,729
Depreciation and amortization (a) . . 273,691 — — 273,691
Restructuring, impairments and
related costs ................. 63,800 — — 63,800
Share-based payment expense (b) . . — — 63,309 63,309
Total operating expenses ........... $2,351,578 $261,832 $ — $2,613,410
(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, 2010 was $68,000.
(b) Amounts related to share-based payment expense included in operating expenses were as follows:
Programming and content .......... $ 9,817 $ 450 $— $10,267
Customer service and billing ........ 1,926 281 — 2,207
Satellite and transmission ........... 3,109 288 — 3,397
Sales and marketing ............... 8,996 427 — 9,423
Engineering, design and
development ................... 5,348 520 — 5,868
General and administrative .......... 31,241 906 — 32,147
Total share-based payment expense . . . $60,437 $2,872 $— $63,309
24