XM Radio 2015 Annual Report Download - page 121

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(16) Commitments and Contingencies
The following table summarizes our expected contractual cash commitments as of December 31,
2015:
2016 2017 2018 2019 2020 Thereafter Total
Debt obligations . . $ 4,764 $ 3,840 $ 2,810 $ 1,478 $1,490,000 $4,000,000 $5,502,892
Cash interest
payments . . . . . . 294,797 294,651 294,543 294,467 278,147 736,188 2,192,793
Satellite and
transmission . . . 10,814 3,166 4,171 4,161 3,858 8,972 35,142
Programming and
content . . . . . . . . 246,899 225,519 204,569 187,644 163,332 298,650 1,326,613
Marketing and
distribution . . . . . 19,969 13,282 12,379 10,108 4,646 4,600 64,984
Satellite incentive
payments . . . . . . 11,780 13,296 14,302 10,652 7,918 35,609 93,557
Operating lease
obligations . . . . . 44,749 42,978 41,619 37,165 34,594 179,147 380,252
Other . . . . . . . . . . . . 68,665 14,429 4,686 559 360 40 88,739
Total(1) . . . . . . . $702,437 $611,161 $579,079 $546,234 $1,982,855 $5,263,206 $9,684,972
(1) The table does not include our reserve for uncertain tax positions, which at December 31, 2015
totaled $3,525, as the specific timing of any cash payments cannot be projected with reasonable
certainty.
Debt obligations. Debt obligations include principal payments on outstanding debt and capital
lease obligations.
Cash interest payments. Cash interest payments include interest due on outstanding debt and
capital lease payments through maturity.
Satellite and transmission. We have entered into agreements with third parties to operate and
maintain the off-site satellite telemetry, tracking and control facilities and certain components of our
terrestrial repeater networks.
Programming and content. We have entered into various programming agreements. Under the
terms of these agreements, our obligations include fixed payments, advertising commitments and
revenue sharing arrangements. Our future revenue sharing costs are dependent upon many factors
and are difficult to estimate; therefore, they are not included in our minimum contractual cash
commitments.
Marketing and distribution. We have entered into various marketing, sponsorship and
distribution agreements to promote our brand and are obligated to make payments to sponsors,
retailers, automakers and radio manufacturers under these agreements. Certain programming and
content agreements also require us to purchase advertising on properties owned or controlled by
the licensors. We also reimburse automakers for certain engineering and development costs
associated with the incorporation of satellite radios into new vehicles they manufacture. In addition,
in the event certain new products are not shipped by a distributor to its customers within 90 days of
the distributor’s receipt of goods, we have agreed to purchase and take title to the product.
Satellite incentive payments. Boeing Satellite Systems International, Inc., the manufacturer of
certain of our in-orbit satellites, may be entitled to future in-orbit performance payments with respect
to XM-3 and XM-4 meeting their fifteen-year design life. Boeing may also be entitled to additional
incentive payments up to $10,000 if our XM-4 satellite continues to operate above baseline
specifications during the five years beyond the satellite’s fifteen-year design life.
F-30
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars and shares in thousands, except per share amounts)