XM Radio 2014 Annual Report Download - page 129

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(b) During the year ended December 31, 2014, our share of Sirius XM Canada’s net earnings
included a gain of $1,251 related to the fair value received in excess of the carrying value
associated with the redemption of our investment in Sirius XM Canada’s 8% convertible
unsecured subordinated debentures in February 2014. Sirius XM Canada declared dividends to
us of $43,492, $16,796 and $7,749 during the years ended December 31, 2014, 2013 and 2012,
respectively. These dividends are first recorded as a reduction to our investment balance in
Sirius XM Canada to the extent a balance exists and then as Interest and investment income for
the remaining portion. This amount includes amortization related to the equity method intangible
assets of $363, $1,454 and $974 for the years ended December 31, 2014, 2013 and 2012,
respectively.
(c) We recognized Interest expense associated with the portion of the 7% Exchangeable Senior
Subordinated Notes due 2014, the portion of the 7.625% Senior Notes due 2018, and the portion
of the 8.75% Senior Notes due 2015 held by Liberty Media through December 2014, October
2013 and August 2013, respectively.
M-Way
During the year ended December 31, 2014, we evaluated our investment in M-Way Solutions
GmbH (“M-Way”) and determined that there was an other than temporary decline in its fair value.
As a result, we reduced our investment balance to zero and recognized a loss of $2,342 in Other
(loss) income in our consolidated statements of comprehensive income during the year ended
December 31, 2014. In November 2014, we sold our investment in M-Way and recognized a loss of
$353 in Engineering, design and development in connection with this transaction in our consolidated
statements of comprehensive income during the year ended December 31, 2014.
(13) Investments
Long Term Restricted Investments
Restricted investments relate to reimbursement obligations under letters of credit issued for the
benefit of lessors of our office space. As of December 31, 2014 and 2013 our Long-term restricted
investments were $5,922 and $5,718, respectively.
(14) Debt
Our debt as of December 31, 2014 and 2013 consisted of the following:
Issuer /
Borrower Issued Debt
Maturity
Date Interest Payable
Principal
Amount
December 31,
2014
December 31,
2013
Carrying value at
Sirius XM(a) ...... August 2008 7% Exchangeable
Senior Subordinated
Notes (the
“Exchangeable
Notes”)
December 1,
2014
semi-annually
on June 1 and
December 1
$ — $ — $ 500,481
Sirius XM(a)(b) ..... May 2013 4.25% Senior Notes
(the “4.25% Notes”)
May 15,
2020
semi-annually
on May 15 and
November 15
500,000 495,529 494,809
Sirius XM(a)(b) ..... September
2013
5.875% Senior Notes
(the “5.875% Notes”)
October 1,
2020
semi-annually
on April 1 and
October 1
650,000 643,790 642,914
Sirius XM(a)(b) ..... August 2013 5.75% Senior Notes
(the “5.75% Notes”)
August 1,
2021
semi-annually
on February 1
and August 1
600,000 595,091 594,499
F-23
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollar amounts in thousands, unless otherwise stated)