XM Radio 2013 Annual Report Download - page 116

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COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollar amounts in thousands, unless otherwise stated)
Receivables from royalty and dividend income were utilized to absorb a portion of our share of net losses
generated by Sirius Canada. Total costs reimbursed by Sirius Canada were $5,253 for the year ended
December 31, 2011.
Our share of net earnings or losses of Sirius Canada was recorded to Interest and investment income in our
consolidated statements of comprehensive income on a one month lag. Our share of Sirius Canada’s net loss was
$9,717 for the year ended December 31, 2011. The payments received from Sirius Canada in excess of carrying
value were $6,748 for the year ended December 31, 2011.
XM Canada
We had an equity interest of 21.5% in XM Canada until June 21, 2011 when the Canada Merger closed.
We recorded the following revenue from XM Canada as Other revenue in our consolidated statements of
comprehensive income:
For the Year Ended
December 31,
2011 *
Amortization of XM Canada deferred income ............................. $ 1,388
Subscriber and activation fee royalties ................................... 5,483
Licensing fee revenue ................................................ 3,000
Advertising reimbursements ........................................... 833
Total revenue from XM Canada ...................................... $10,704
* XM Canada combined with Sirius Canada in June 2011.
Our share of net earnings or losses of XM Canada was recorded to Interest and investment income in our
consolidated statements of comprehensive income on a one month lag. Our share of XM Canada’s net loss was
$6,045 for the year ended December 31, 2011.
M-Way
As part of the acquisition of the connected vehicle business of Agero in November 2013, we acquired a 30%
ownership in M-Way Solutions GmbH (“M-Way”), a German mobile software solutions provider, which is
accounted for utilizing the equity method of accounting. We have recorded a $2,545 investment in M-Way in
Related party long-term assets on our consolidated balance sheet. We also acquired an option to purchase the
remaining 70% ownership of M-Way which expires in 2017.
(12) Investments
Long Term Restricted Investments
Restricted investments relate to reimbursement obligations under letters of credit issued for the benefit of
lessors of our office space. As of December 31, 2013 and 2012, our Long-term restricted investments were
$5,718 and $3,999, respectively. During the year ended December 31, 2013, a new letter of credit for $1,719
associated with additional office space was issued for the benefit of a lessor.
F-34