XM Radio 2015 Annual Report Download - page 84

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As Reported
Purchase Price
Accounting
Adjustments
Allocation of
Share-based
Payment Expense Adjusted
Unaudited For the Year Ended December 31, 2015
Revenue:
Subscriber revenue. . . . . . . . . . . . . . . . . . $3,824,793 $ — $ — $3,824,793
Advertising revenue . . . . . . . . . . . . . . . . . 122,292 — — 122,292
Equipment revenue. . . . . . . . . . . . . . . . . . 110,923 — — 110,923
Other revenue . . . . . . . . . . . . . . . . . . . . . . 512,050 7,251 — 519,301
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . $4,570,058 $7,251 $ — $4,577,309
Operating expenses
Cost of services:
Revenue share and royalties . . . . . . $1,034,832 $ — $ — $1,034,832
Programming and content . . . . . . . . . 293,091 1,394 (10,325) 284,160
Customer service and billing . . . . . . . 377,908 — (2,982) 374,926
Satellite and transmission . . . . . . . . . 94,609 — (4,147) 90,462
Cost of equipment . . . . . . . . . . . . . . . . 42,724 — — 42,724
Subscriber acquisition costs . . . . . . . . . 532,599 — — 532,599
Sales and marketing . . . . . . . . . . . . . . . . 354,189 — (17,985) 336,204
Engineering, design and development 64,403 — (9,470) 54,933
General and administrative . . . . . . . . . . 324,801 — (39,401) 285,400
Depreciation and amortization(a) . . . . . . 272,214 — — 272,214
Share-based payment expense . . . . . . — — 84,310 84,310
Total operating expenses . . . . . . . . . . . . . . $3,391,370 $1,394 $ — $3,392,764
(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, 2015 was $35,000.
As Reported
Purchase Price
Accounting
Adjustments
Allocation of
Share-based
Payment Expense Adjusted
Unaudited For the Year Ended December 31, 2014
Revenue:
Subscriber revenue. . . . . . . . . . . . . . . . . . $3,554,302 $ — $ — $3,554,302
Advertising revenue . . . . . . . . . . . . . . . . . 100,982 — — 100,982
Equipment revenue. . . . . . . . . . . . . . . . . . 104,661 — — 104,661
Other revenue . . . . . . . . . . . . . . . . . . . . . . 421,150 7,251 — 428,401
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . $4,181,095 $7,251 $ — $4,188,346
Operating expenses
Cost of services:
Revenue share and royalties . . . . . . $ 810,028 $ — $ — $ 810,028
Programming and content . . . . . . . . . 297,313 3,781 (9,180) 291,914
Customer service and billing . . . . . . . 370,585 — (2,780) 367,805
Satellite and transmission . . . . . . . . . 86,013 — (4,091) 81,922
Cost of equipment . . . . . . . . . . . . . . . . 44,397 — — 44,397
Subscriber acquisition costs . . . . . . . . . 493,464 — — 493,464
Sales and marketing . . . . . . . . . . . . . . . . 336,480 — (15,454) 321,026
Engineering, design and development 62,784 — (8,675) 54,109
General and administrative . . . . . . . . . . 293,938 — (38,032) 255,906
Depreciation and amortization(a) . . . . . . 266,423 — — 266,423
Share-based payment expense . . . . . . — — 78,212 78,212
Total operating expenses . . . . . . . . . . . . . . $3,061,425 $3,781 $ — $3,065,206
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