XM Radio 2013 Annual Report Download - page 68

significant costs to improve our terrestrial repeater network and broadcast and administrative infrastructure. Our
FM-6 satellite was launched during the fourth quarter of 2013.
The increase in cash flows used in investing activities was primarily due to the investment in Sirius XM
Connected Vehicle Services Inc., satellite launch-related payments, an increase in spending to enhance our
terrestrial repeater network, and the purchase of certain long-lead parts for a future satellite.
Cash Flows Used in Financing Activities
Cash flows used in financing activities consists of the issuance and repayment of long-term debt and related
party debt, cash flows resulting from the exercise of stock options and the purchase of common stock under our
share repurchase program. Proceeds from long-term debt, related party debt and equity issuances have been used
to fund our operations, acquire the connected vehicle business of Agero, Inc., construct and launch new satellites
and invest in other infrastructure improvements.
Cash flows used in financing activities in 2013 were primarily due to the repurchase of approximately
520,257,866 shares of common stock under our share repurchase program for approximately $1,762,360, and the
redemption of $800,000 of our 8.75% Senior Notes due 2015 and $700,000 of our 7.625% Senior Notes due
2018. In 2013, we issued $650,000 aggregate principal amount of 5.875% Senior Notes due 2020, $600,000
aggregate principal amount of 5.75% Senior Notes due 2021, $500,000 aggregate principal amount of 4.25%
Senior Notes due 2020, and $500,000 aggregate principal amount of 4.625% Senior Notes due 2023. Cash flows
used in financing activities during 2012 were due to the repayment of the remaining balances of $778,500 of our
13% Senior Notes due 2013 and $257,000 of our 9.75% Senior Secured Notes due 2015, partially offset by the
issuance $400,000 aggregate principal amount of 5.25% Senior Notes due 2022 and the proceeds received from
the exercise of stock options.
Future Liquidity and Capital Resource Requirements
Based upon our current business plans, we expect to fund operating expenses, capital expenditures, working
capital requirements, interest payments, taxes and scheduled maturities of our debt with existing cash, cash flow
from operations and borrowings under our Credit Facility. We believe that we have sufficient cash and cash
equivalents as well as debt capacity to cover our estimated short-term and long-term funding needs, stock
repurchases and strategic opportunities.
Our ability to meet our debt and other obligations depends on our future operating performance and on
economic, financial, competitive and other factors. We continually review our operations for opportunities to
adjust the timing of expenditures to ensure that sufficient resources are maintained.
We regularly evaluate our business plans and strategy. These evaluations often result in changes to our
business plans and strategy, some of which may be material and significantly change our cash requirements.
These changes in our business plans or strategy may include: the acquisition of unique or compelling
programming; the introduction of new features or services; significant new or enhanced distribution
arrangements; investments in infrastructure, such as satellites, equipment or radio spectrum; and acquisitions,
including acquisitions that are not directly related to our satellite radio business.
Stock Repurchase Program
Since December 2012, our board of directors has approved $4,000,000 for repurchases of our common
stock. Our board of directors did not establish an end date for this stock repurchase program. Shares of common
stock may be purchased from time to time on the open market and in privately negotiated transactions, including
transactions with Liberty Media and its affiliates.
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