XM Radio 2010 Annual Report Download - page 112

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We recorded the following revenue from XM Canada as Other revenue in our consolidated statements of
operations:
2010 2009 2008
For the Years Ended December 31,
Amortization of XM Canada deferred income ................. $ 2,776 $ 2,776 $1,156
Subscriber and activation fee royalties ....................... 10,313 11,603 97
Licensing fee revenue ................................... 4,500 6,000 2,500
Advertising reimbursements ............................... 1,083 1,067 366
Total revenue from XM Canada .......................... $18,672 $21,446 $4,119
General Motors and American Honda
We have a long-term distribution agreement with General Motors Company (“GM”). GM had a representative
on our board of directors and was considered a related party through May 27, 2010. During the term of the
agreement, GM has agreed to distribute the XM service. We subsidize a portion of the cost of satellite radios and
makes incentive payments to GM when the owners of GM vehicles with factory- or dealer- installed satellite radios
become self-paying subscribers. We also share with GM a percentage of the subscriber revenue attributable to GM
vehicles with factory- or dealer- installed satellite radios. As part of the agreement, GM provides certain call-center
related services directly to subscribers who are also GM customers for which we reimburse GM.
We make bandwidth available to OnStar Corporation for audio and data transmissions to owners of enabled
GM vehicles, regardless of whether the owner is a subscriber. OnStar’s use of our bandwidth must be in compliance
with applicable laws, must not compete or adversely interfere with our business, and must meet our quality
standards. We also granted to OnStar a certain amount of time to use our studios on an annual basis and agreed to
provide certain audio content for distribution on OnStar’s services.
We have a long-term distribution agreement with American Honda. American Honda had a representative on
our board of directors and was considered a related party through May 27, 2010. We have an agreement to make a
certain amount of its bandwidth available to American Honda. American Honda’s use of our bandwidth must be in
compliance with applicable laws, must not compete or adversely interfere with our business, and must meet our
quality standards. This agreement remains in effect so long as American Honda holds a certain amount of its
investment in us. We make incentive payments to American Honda for each purchaser of a Honda or Acura vehicle
that becomes a self-paying subscriber and shares with American Honda a portion of the subscriber revenue
attributable to Honda and Acura vehicles with installed satellite radios.
As of May 27, 2010, the following aggregate assets and liabilities related to GM and American Honda were
reclassified from related party to non-related party:
Balance sheet line item:
Related party current assets .............................................. $107,908
Related party long term assets ............................................ 73,016
Related party current liabilities ............................................ 57,996
F-24
SIRIUS XM RADIO INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)