XM Radio 2008 Annual Report Download - page 33

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(9) The following tables reconcile our GAAP Results of operations to our non-GAAP pro forma unadjusted results
of operations:
As Reported
Predecessor
Financial
Information
Purchase Price
Accounting
Adjustments(a)
Allocation of
Share-based
Payment
Expense Pro Forma
Unaudited for the Years Ended December 31, 2008
Revenue:
Subscriber revenue, including effects of
rebates . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,543,951 $ 664,850 $ 38,533 $ — $2,247,334
Advertising revenue, net of agency fees . . . 47,190 22,743 — — 69,933
Equipment revenue . . . . . . . . . . . . . . . . . . 56,001 13,397 — — 69,398
Other revenue . . . . . . . . . . . . . . . . . . . . . . 16,850 30,204 3,021 — 50,075
Total revenue . . . . . . . . . . . . . . . . . . . . . . . . 1,663,992 731,194 41,554 — 2,436,740
Operating expenses (depreciation and
amortization shown separately below)(1)
Cost of services:
Satellite and transmission. . . . . . . . . . . . 59,279 46,566 424 (7,084) 99,185
Programming and content . . . . . . . . . . . 312,189 117,156 34,667 (17,374) 446,638
Revenue share and royalties . . . . . . . . . . 280,852 166,606 30,504 — 477,962
Customer service and billing . . . . . . . . . 165,036 82,947 193 (3,981) 244,195
Cost of equipment . . . . . . . . . . . . . . . . . 46,091 20,013 — — 66,104
Sales and marketing . . . . . . . . . . . . . . . . . 231,937 126,054 5,393 (21,088) 342,296
Subscriber acquisition costs . . . . . . . . . . . . 371,343 174,083 31,714 (14) 577,126
General and administrative . . . . . . . . . . . . 213,142 116,444 1,083 (63,637) 267,032
Engineering, design and development. . . . . 40,496 23,045 400 (11,441) 52,500
Impairment of goodwill . . . . . . . . . . . . . . . 4,766,190 — (4,766,190) — —
Depreciation and amortization . . . . . . . . . . 203,752 88,749 (46,930) — 245,571
Share-based payment expense . . . . . . . . . . — — — 124,619 124,619
Restructuring and related costs . . . . . . . . . 10,434 — — — 10,434
Total operating expenses . . . . . . . . . . . . . . . . 6,700,741 961,663 (4,708,742) — 2,953,662
Loss from operations . . . . . . . . . . . . . . . . . (5,036,749) (230,469) 4,750,296 — (516,922)
Other income (expense)
Interest and investment income . . . . . . . . . 9,079 3,013 — — 12,092
Interest expense, net of amounts
capitalized . . . . . . . . . . . . . . . . . . . . . . . (144,833) (73,937) (16,885) — (235,655)
Loss from redemption of debt . . . . . . . . . . (98,203) — — — (98,203)
Loss on investments . . . . . . . . . . . . . . . . . (30,507) (13,010) — — (43,517)
Other (expense) income . . . . . . . . . . . . . . . (9,599) (6,543) — — (16,142)
Total other expense . . . . . . . . . . . . . . . . . . . . (274,063) (90,477) (16,885) — (381,425)
Loss before income taxes . . . . . . . . . . . . . (5,310,812) (320,946) 4,733,411 — (898,347)
Income tax expense . . . . . . . . . . . . . . . . . . (2,476) (1,512) — — (3,988)
Net loss . . . . . . . . . . . . . . . . . . . . . . . . $(5,313,288) $(322,458) $ 4,733,411 $ — $ (902,335)
(1) Amounts related to share-based payment expense included in operating expenses were as follows:
Satellite and transmission . . . . . . . . . . . . . . . . . . . . . . $ 4,236 $ 2,745 $ 103 $— $ 7,084
Programming and content . . . . . . . . . . . . . . . . . . . . . . 12,148 4,949 277 — 17,374
Customer service and billing . . . . . . . . . . . . . . . . . . . 1,920 1,869 192 — 3,981
Sales and marketing . . . . . . . . . . . . . . . . . . . . . . . . . . 13,541 7,047 500 — 21,088
Subscriber acquisition costs . . . . . . . . . . . . . . . . . . . . 14 — — — 14
General and administrative . . . . . . . . . . . . . . . . . . . . . 49,354 13,200 1,083 — 63,637
Engineering, design and development . . . . . . . . . . . . . 6,192 4,675 574 — 11,441
Total share-based payment expense . . . . . . . . . . . . . . . $87,405 $34,485 $2,729 $— $124,619
(a) Includes impairment of goodwill.
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