XM Radio 2015 Annual Report Download - page 79

retirement of shares of our common stock under our repurchase program for $2,018,254 and
repayments under the Credit Facility. Cash flows used in financing activities in 2014 were primarily
due to the purchase of shares of our common stock under our repurchase program for $2,496,799
and repayments under the Credit Facility. In 2014, we issued $1,500,000 aggregate principal
amount of 6.00% Senior Notes due 2024. Cash flows used in financing activities in 2013 were
primarily due to the purchase of shares of our common stock under our share repurchase program
for $1,762,360, and the extinguishment of $800,000 of our then outstanding 8.75% Senior Notes
due 2015 and $700,000 of our then outstanding 7.625% Senior Notes due 2018. In 2013, we
issued $650,000 aggregate principal amount of 5.875% Senior Notes due 2020, $600,000
aggregate principal amount of 5.75% Senior Notes due 2021, $500,000 aggregate principal amount
of 4.25% Senior Notes due 2020 and $500,000 aggregate principal amount of 4.625% Senior Notes
due 2023.
Future Liquidity and Capital Resource Requirements
Based upon our current business plans, we expect to fund operating expenses, capital
expenditures, working capital requirements, legal settlements, interest payments, taxes and
scheduled maturities of our debt with existing cash, cash flow from operations and borrowings
under our Credit Facility. As of December 31, 2015, $1,410,000 was available for future borrowing
under our Credit Facility. We believe that we have sufficient cash and cash equivalents as well as
debt capacity to cover our estimated short-term and long-term funding needs, as well as fund stock
repurchases and any strategic opportunities.
Our ability to meet our debt and other obligations depends on our future operating performance
and on economic, financial, competitive and other factors. We continually review our operations for
opportunities to adjust the timing of expenditures to ensure that sufficient resources are maintained.
We regularly evaluate our business plans and strategy. These evaluations often result in
changes to our business plans and strategy, some of which may be material and significantly
change our cash requirements. These changes in our business plans or strategy may include: the
acquisition of unique or compelling programming; the introduction of new features or services;
significant new or enhanced distribution arrangements; investments in infrastructure, such as
satellites, equipment or radio spectrum; and acquisitions, including acquisitions that are not directly
related to our satellite radio business.
Stock Repurchase Program
Since December 2012, our board of directors approved for repurchase an aggregate of
$8,000,000 of our common stock. Our board of directors did not establish an end date for this stock
repurchase program. Shares of common stock may be purchased from time to time on the open
market, pursuant to pre-set trading plans meeting the requirements of Rule 10b5-1 under the
Exchange Act, in privately negotiated transactions, including transactions with Liberty Media and its
affiliates, or otherwise.
As of December 31, 2015, our cumulative repurchases since December 2012 under our stock
repurchase program totaled 1,783,496 shares for $6,301,140, and $1,698,860 remained available
under our stock repurchase program. We expect to fund future repurchases through a combination
of cash on hand, cash generated by operations and future borrowings.
Debt Covenants
The indentures governing Sirius XM’s senior notes, and the agreement governing the Credit
Facility include restrictive covenants. As of December 31, 2015, we were in compliance with such
covenants. For a discussion of our “Debt Covenants,” refer to Note 13 to our consolidated financial
statements in this Annual Report.
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