XM Radio 2011 Annual Report Download - page 113

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SIRIUS XM RADIO INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
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 we share with American Honda a portion of the subscriber
revenue attributable to Honda and Acura vehicles with installed satellite radios.
We recorded the following total related party revenue from GM and American Honda, primarily consisting
of subscriber revenue, in connection with the agreements above:
For the Years Ended December 31,
2010* 2009
GM ................................................. $12,759 $31,037
American Honda ....................................... 4,990 12,254
Total .............................................. $17,749 $43,291
* GM and American Honda were considered related parties through May 27, 2010.
We have incurred the following related party expenses with GM and American Honda:
For the Years Ended December 31,
2010* 2009
GM
American
Honda GM
American
Honda
Sales and marketing ........................... $13,374 $ — $ 31,595 $ 500
Revenue share and royalties ..................... 15,823 3,167 58,992 6,541
Subscriber acquisition costs ..................... 17,514 1,969 34,895 5,397
Customer service and billing .................... 125 — 268 —
Interest expense, net of amounts capitalized ........ 1,421 — 4,644 —
Total ..................................... $48,257 $5,136 $130,394 $12,438
* GM and American Honda were considered related parties through May 27, 2010.
(12) Investments
Auction Rate Certificates
Auction rate certificates are long-term securities structured to reset their coupon rates by means of an
auction. We accounted for our investment in auction rate certificates as available-for-sale securities. In January
2010, our investment in the auction rate certificates was called by the issuer at par plus accrued interest, or
$9,456, resulting in a gain of $425 in the year ended December 31, 2010.
Long Term Restricted Investments
Restricted investments relate to reimbursement obligations under letters of credit issued for the benefit of
lessors of office space. As of December 31, 2011 and December 31, 2010, our Long-term restricted investments
were $3,973 and $3,396, respectively. During the year ended December 31, 2011, $250 of obligations relating to
these letters of credit were terminated and a new letter of credit agreement was entered into for $826 for
additional space.
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