XM Radio 2001 Annual Report Download - page 47

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XM SATELLiTE RADiO 2 001 Annual Report
(6) Goodwill and Other Intangible Assets
On July 7, 1999, Motient acquired a former investor’s remaining debt and equity interests in the Company in exchange
for approximately 8,600,000 shares of Motient’s common stock. Concurrent with Motient’s acquisition of the remaining
interest in the Company, the Company recognized goodwill and other intangible assets of $51,6 24,0 00, which has been
allocated as follows (in thousands):
DARS License ................................... $ 25,024
Goodwill ........................................... 13,738
Programming agreements ................. 8,000
Receiver agreements ....................... 4,600
Other intangibles............................... 262
$ 51,624
(7) Other Assets
Other assets consist of the following at December 31, 2000 and 2001 (in thousands):
December 3 1,
2000 2001
14% senior secured notes deferred financing fees ...................... $ 8 ,493 $ 8,858
7.75% convertible subordinated notes deferred financing fee ...... — 2,665
Mortgage deferred financing fees ............................................... — 496
Loan payable deferred financing fees ......................................... — 943
Refundable deposits and other long-term prepaid expenses .......... 1,44 4 1,726
9,937 14,688
Less accumulated amortization ............................................ (672) (2,167)
Other assets, net.................................................................. $ 9,26 5 $ 12,52 1
(8) Long-Term Debt
Long-term debt at December 31 , 2000 and 2001 consist of the following (in thousands):
December 3 1,
2000 20 01
14% senior secured notes ......................................................... $ 325,0 00 $ 325,000
Less unamortized discount on 14% senior secured notes ....... (63,702) (60,694)
7.75% convertible subordinated notes ....................................... — 79,057
Mortgage ................................................................................. — 28,90 9
Loan payable............................................................................. — 35,000
Capital leases............................................................................ 1,923 6,158
Total long-term debt.............................................................. 263,221 413,4 30
Less current installments ...................................................... (556) (1,91 0)
Long-term debt, excluding current installments ...................... $ 262,665 $ 411,520
(a) 14% Senior Secured Notes
On March 15, 2000, the Company closed a private placement of 325,0 00 units, each unit consisting of $1,000
principal amount of 14% senior secured notes due 2010 of XMSR and one warrant to purchase 8.024815 shares
of the Company’s Class A common stock at a price of $49.50 per share. The Company realized net proceeds
of $191,500,000, excluding $123,000,000 used to acquire securities that will be used to pay interest payments
due under the notes for the first three years. The $32 5,000,000 face value of the notes was offset by a discount
of $65,746,000 associated with the fair value of the related warrants. The Company had amortized $2 ,044,000
and $5,052,000 of the discount through December 31 , 2000 and 2001, respectively. See note 10(f) for further
discussion regarding adjustments that have occurred to the related warrants.
FiNANCiALS 2001
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