XM Radio 2010 Annual Report Download - page 83

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(In thousands) As Reported
Purchase Price
Accounting
Adjustments
Allocation of
Share-Based
Payment Expense Adjusted
Unaudited for the Year Ended December 31, 2009
Revenue:
Subscriber revenue, including effects of
rebates ....................... $2,287,503 $ 46,814 $ — $2,334,317
Advertising revenue, net of agency
fees .......................... 51,754 — — 51,754
Equipment revenue ................ 50,352 — — 50,352
Other revenue . ................... 83,029 7,251 — 90,280
Total revenue . . . ................... $2,472,638 $ 54,065 $ — $2,526,703
Operating expenses
Cost of services:
Revenue share and royalties ........ 397,210 89,780 — 486,990
Programming and content ......... 308,121 72,069 (9,720) 370,470
Customer service and billing ....... 234,456 453 (2,504) 232,405
Satellite and transmission .......... 84,033 1,339 (3,202) 82,170
Cost of equipment ............... 40,188 — — 40,188
Subscriber acquisition costs .......... 340,506 61,164 — 401,670
Sales and marketing ............... 228,956 13,507 (10,264) 232,199
Engineering, design and development. . . 41,031 977 (5,856) 36,152
General and administrative .......... 227,554 1,602 (47,236) 181,920
Depreciation and amortization(a) ...... 309,450 — — 309,450
Restructuring, impairments and related
costs ......................... 32,807 — — 32,807
Share-based payment expense(b) ...... — — 78,782 78,782
Total operating expenses .............. $2,244,312 $240,891 $ — $2,485,203
(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, 2009 was $106,000.
(b) Amounts related to share-based payment expense included in operating expenses were as follows:
Programming and content . . . . . . . . . . . . . . . . . . . $ 9,064 $ 656 $— $ 9,720
Customer service and billing . . . . . . . . . . . . . . . . . 2,051 453 — 2,504
Satellite and transmission . . . . . . . . . . . . . . . . . . . 2,745 457 — 3,202
Sales and marketing . . . . . . . . . . . . . . . . . . . . . . . 9,608 656 — 10,264
Engineering, design and development . . . . . . . . . . . 4,879 977 — 5,856
General and administrative . . . . . . . . . . . . . . . . . . 45,634 1,602 — 47,236
Total share-based payment expense. . . . . . . . . . . . . $73,981 $4,801 $— $78,782
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