XM Radio 2013 Annual Report Download - page 113

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COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollar amounts in thousands, unless otherwise stated)
Liberty Media would be converted into the right to receive 0.0760 of a new non-voting share of Liberty Series C
common stock. Holdings’ Board of Directors has formed a Special Committee to consider Liberty Media’s
proposal.
Liberty Media has advised us that as of December 31, 2013 and 2012 it also owned the following:
December 31,
2013
December 31,
2012
7% Exchangeable Senior Subordinated Notes due 2014 .............. $11,000 $ 11,000
8.75% Senior Notes due 2015 .................................. — 150,000
7.625% Senior Notes due 2018 ................................. — 50,000
Total principal debt .......................................... 11,000 211,000
Less: discounts ............................................ 41 2,094
Total carrying value of debt .................................... $10,959 $208,906
During the year ended December 31, 2013, we redeemed $150,000 of our 8.75% Senior Notes due 2015 and
$50,000 of our 7.625% Senior Notes due 2018 held by Liberty Media as part of the redemption of these Notes in
their entirety.
As of December 31, 2013 and 2012, we recorded $64 and $3,980, respectively, related to accrued interest
with Liberty Media to Related party current liabilities. We recognized Interest expense associated with debt held
by Liberty Media of $13,514, $30,931 and $35,681 for the years ended December 31, 2013, 2012 and 2011,
respectively. The fair value of the derivative associated with the share repurchase agreement with Liberty Media
was $15,702 as of December 31, 2013 and is recorded in Holdings’ consolidated balance sheet in Related party
current liabilities, with changes in fair value recorded to Holdings’ statements of comprehensive income.
Sirius XM Canada
In June 2011, Canadian Satellite Radio Holdings Inc., the former parent company of XM Canada, and Sirius
Canada completed a transaction to combine their operations (“the Canada Merger”). In January 2013, Canadian
Satellite Radio Holdings Inc. changed its name to Sirius XM Canada Holdings Inc. The combined company
operates as Sirius XM Canada.
We own approximately 46,700,000 Class A shares on a converted basis of Sirius XM Canada Holdings Inc.
representing a 37.5% equity interest and a 25.0% voting interest.
We had the following Related party current asset balances attributable to Sirius XM Canada at
December 31, 2013 and 2012:
December 31,
2013
December 31,
2012
Deferred programming costs and accrued interest .................. $2,782 $ 4,350
Dividends receivable ......................................... — 6,176
Chip set and other services reimbursement ........................ 2,387 2,641
Fair value of host contract of debenture .......................... 3,641 —
Fair value of embedded derivative of debenture .................... 57 —
Total .................................................... $8,867 $13,167
F-31