XM Radio 2014 Annual Report Download - page 127

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Satellites
We currently own a fleet of nine operating satellites. The chart below provides certain
information on these satellites:
Satellite Designation Year Delivered
Estimated
End of
Depreciable
Life
FM-1* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2000 2013
FM-2* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2000 2013
FM-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2000 2015
FM-5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2009 2024
FM-6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2013 2028
XM-1* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2001 2013
XM-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005 2020
XM-4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006 2021
XM-5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010 2025
* Satellite was fully depreciated as of December 31, 2014 but is still in operation.
(12) Related Party Transactions
In the normal course of business, we enter into transactions with related parties. We had the
following related party balances at December 31, 2014 and 2013:
2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
Related party
current assets
Related party
long-term assets
Related party
current liabilities
Related party
current debt
Related party
long-term
liabilities
Liberty Media ....... $ — $ 278 $ — $ — $ — $15,766 $— $10,959 $ — $ —
Sirius XM Canada . . . 4,344 8,867 3,000 27,619 4,340 4,554 — — 13,635 16,337
M-Way.............. — — — 2,545 — — — — — —
Total . . ......... $4,344 $9,145 $3,000 $30,164 $4,340 $20,320 $— $10,959 $13,635 $16,337
Liberty Media
Liberty Media has beneficially owned over 50% of our outstanding common stock since January
2013 and has two executives and one director on our board of directors. Gregory B. Maffei, the
President and Chief Executive Officer of Liberty Media, is the Chairman of our board of directors.
On October 9, 2013, we entered into an agreement with Liberty Media to repurchase $500,000
of our common stock from Liberty Media. Pursuant to that agreement, we repurchased $160,000 of
our common stock from Liberty Media in 2013. As of December 31, 2013, $15,702 was recorded to
Related party current liabilities for the fair value of the derivative associated with the share
repurchase agreement with Liberty Media as there were certain terms in the forward purchase
contract that could cause the obligation to not be fulfilled. As a result, the instrument was a liability
and was marked to fair value with any gain or loss recorded to our consolidated statements of
comprehensive income. On April 25, 2014, we completed the final purchase installment under this
share repurchase agreement and repurchased $340,000 of our shares of common stock from
Liberty Media at a price of $3.66 per share. We recognized $34,485 and $20,393 to Loss on
change in value of derivatives in our consolidated statements of comprehensive income related to
this agreement during the years ended December 31, 2014 and December 31, 2013, respectively.
F-21
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollar amounts in thousands, unless otherwise stated)