XM Radio 2013 Annual Report Download - page 129

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COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollar amounts in thousands, unless otherwise stated)
Sirius XM
Sirius XM and its wholly-owned subsidiaries are included in the consolidated federal income tax returns of
Holdings. However, due to the differences in the Income before income taxes balances between Holdings and
Sirius XM in our consolidated statements of comprehensive income, the following table shows the significant
elements contributing to the difference between the federal tax expense (benefit) at the statutory rate and at Sirius
XM’s effective rate:
For the Years Ended December 31,
2013 2012 2011
Federal tax expense, at statutory rate ................... $ 67,684 $ 166,064 $ 154,418
State income tax expense, net of federal benefit .......... 4,467 16,606 15,751
State income rate changes ........................... 8,666 2,251 3,851
Non-deductible expenses ............................ 699 477 457
Change in valuation allowance ........................ (4,228) (3,195,651) (166,452)
Fair value of debt instrument ......................... 178,704 — —
Other, net ........................................ 3,885 12,019 6,209
Income tax expense (benefit) ....................... $259,877 $(2,998,234) $ 14,234
(18) Quarterly Financial Data — Unaudited
Our quarterly results of operations are summarized below:
Sirius XM Holdings Inc.
For the Three Months Ended
March 31 June 30 September 30 December 31
2013
Total revenue ............................ $897,398 $ 940,110 $ 961,509 $1,000,078
Cost of services .......................... $(330,257) $ (331,465) $(336,464) $ (396,304)
Income from operations .................... $246,931 $ 267,736 $ 284,529 $ 245,357
Net income ............................. $123,602 $ 125,522 $ 62,894 $ 65,197
Net income per common share — basic (1) .... $ 0.02 $ 0.02 $ 0.01 $ 0.01
Net income per common share — diluted (1) . . . $ 0.02 $ 0.02 $ 0.01 $ 0.01
2012
Total revenue ............................ $804,722 $ 837,543 $ 867,360 $ 892,415
Cost of services .......................... $(292,309) $ (293,975) $(314,204) $ (328,882)
Income from operations .................... $199,238 $ 227,942 $ 231,749 $ 213,096
Net income ............................. $107,774 $3,134,170 $ 74,514 $ 156,244
Net income per common share — basic (1) .... $ 0.02 $ 0.49 $ 0.01 $ 0.02
Net income per common share — diluted (1) . . . $ 0.02 $ 0.48 $ 0.01 $ 0.02
(1) The sum of quarterly net income per share applicable to common stockholders (basic and diluted) does not necessarily
agree to the net income per share for the year due to the timing of common stock issuances.
F-47