XM Radio 2008 Annual Report Download - page 76

XM has agreements with General Motors (“GM”) and American Honda Motor Co., Inc. (“American Honda”),
both of which hold shares of our stock and have one representative each on our board of directors. GM and
American Honda install XM radios and promote the XM radio service, and XM will make available use of
bandwidth. Subscription revenues received from GM and American Honda for these programs are reported as a
component of subscriber revenue.
We recorded total revenue from GM, primarily consisting of subscriber revenue, of $16,803 for the year ended
December 31, 2008. We recorded total revenue from American Honda, primarily consisting of subscriber revenue,
of $7,504 for the year ended December 31, 2008.
We rely on GM and American Honda for marketing and we are responsible for certain revenue share payments
to these related parties. We recognized Sales and marketing expense with GM of $47,090 for the year ended
December 31, 2008. We recognized Sales and marketing expense with American Honda of $4,248 for the year
ended December 31, 2008. We recognized Revenue share and royalties expense with GM of $36,305 and American
Honda of $2,051 for the year ended December 31, 2008.
As of December 31, 2008, we recorded, within Related party current assets, $10,132 and $94,444 of amounts
due from GM and prepaid expenses with GM, respectively. As of December 31, 2008, we recorded, within Related
party long-term assets, $116,296 of prepaid expenses with GM. As of December 31, 2008, we recorded $2,194
within Related party current assets for amounts due from American Honda.
As of December 31, 2008, we recorded $63,023 within Related party current liabilities for amounts due to GM.
As of December 31, 2008, we recorded $4,190 within Related party current liabilities for amounts due to American
Honda.
(11) Investments
Investments consist of the following:
2008 2007
December 31,
Marketable securities........................................... $ 10,525 $ 469
Restricted investments .......................................... 141,250 53,000
Embedded derivative accounted for separately from the host contract ....... 2 —
Equity method investments ...................................... 8,873 —
Total investments............................................ $160,650 $53,469
SIRIUS Canada
We have a 49.9% economic interest in SIRIUS Canada. Our investment in SIRIUS Canada is recorded using
the equity method since we have a significant influence, but less than a controlling voting interest in SIRIUS
Canada. Under this method, our investment in SIRIUS Canada, originally recorded at cost, is adjusted quarterly to
recognize our proportionate share of net earnings or losses as they occur, rather than at the time dividends or other
distributions are received, limited to the extent of our investment in, advances to and commitments to fund SIRIUS
Canada. Our share of net earnings or losses of SIRIUS Canada is recorded to Equity in net loss of equity method
investment in our consolidated statements of operations. We recorded $4,745, $0 and $4,445 for the years ended
December 31, 2008, 2007 and 2006, respectively, for our share of SIRIUS Canada’s net loss. As of December 31,
2008, the carrying value of our equity method investment was $0.
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SIRIUS XM RADIO INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)