XM Radio 2014 Annual Report Download - page 82

Download and view the complete annual report

Please find page 82 of the 2014 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 149

  • 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
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149

This Annual Report presents information for Sirius XM Holdings Inc. (“Holdings”). The terms
“we,” “us,” “our,” and “our company” as used herein and unless otherwise stated or indicated by
context, refer to Sirius XM Radio Inc. (“Sirius XM”) and its subsidiaries prior to the corporate
reorganization described below and to Holdings and its subsidiaries after such corporate
reorganization.
Sirius XM Holdings Inc.
Effective November 15, 2013, we completed a corporate reorganization. As part of the
reorganization, Holdings replaced Sirius XM as our publicly held corporation and Sirius XM became
a wholly-owned subsidiary of Holdings. Holdings was incorporated in the State of Delaware on
May 21, 2013. Holdings has no operations independent of its subsidiary Sirius XM.
Special Note About Forward-Looking Statements
We have made various statements in this Annual Report that may constitute “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-
looking statements may also be made in our other reports filed with or furnished to the SEC, in our
press releases and in other documents. In addition, from time to time, we, through our
management, may make oral forward-looking statements. Forward-looking statements are subject to
risks and uncertainties, including those identified above, which could cause actual results to differ
materially from such statements. The words “will likely result,” “are expected to,” “will continue,” “is
anticipated,” “estimated,” “believe,” “intend,” “plan,” “may,” “should,” “could,” “would,” “likely,”
“projection,” “outlook” and similar expressions are intended to identify forward-looking statements.
We caution you that the risk factors described above are not exclusive. There may also be other
risks that we are unable to predict at this time that may cause actual results to differ materially
from those in forward-looking statements. New factors emerge from time to time, and it is not
possible for us to predict which will arise or to assess with any precision the impact of each factor
on our business or the extent to which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any forward-looking statements. Readers are
cautioned not to place undue reliance on these forward-looking statements, which speak only as of
the date on which they are made. We undertake no obligation to update publicly or revise any
forward-looking statements, except as required by law.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
(All dollar amounts referenced in this section are in thousands, unless otherwise stated)
Executive Summary
We broadcast music, sports, entertainment, comedy, talk, news, traffic and weather channels,
as well as infotainment services, in the United States on a subscription fee basis through our two
proprietary satellite radio systems. Subscribers can also receive music and other channels, plus
features such as SiriusXM On Demand and MySXM, over our Internet radio service, including
through applications for mobile devices. We are also a leader in providing connected vehicle
services. Our connected vehicle services are designed to enhance the safety, security and driving
experience for vehicle operators while providing marketing and operational benefits to automakers
and their dealers. Subscribers to our connected vehicle services are not included in our subscriber
count or subscriber-based operating metrics.
We have agreements with every major automaker (“OEMs”) to offer satellite radios in their
vehicles from which we acquire a majority of our subscribers. We also acquire subscribers through
marketing to owners of factory-installed satellite radios that are not currently subscribing to our
services. Additionally, we distribute our satellite radios through retail locations nationwide and
through our website. Satellite radio services are also offered to customers of certain daily rental car
companies.
1