XM Radio 2014 Annual Report Download - page 137

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(17) Commitments and Contingencies
The following table summarizes our expected contractual cash commitments as of December
31, 2014:
2015 2016 2017 2018 2019 Thereafter Total
Debt
obligations . . $ 7,482 $ 4,266 $380,928 $ 78 $ — $4,150,000 $4,542,754
Cash interest
payments . . . 240,874 240,551 240,803 228,063 228,063 711,750 1,890,104
Satellite and
transmission 15,364 4,594 3,643 4,170 4,187 12,719 44,677
Programming
and content. 231,272 109,903 74,816 60,150 48,333 60,000 584,474
Marketing and
distribution . . 31,645 13,114 9,185 8,298 6,218 1,538 69,998
Satellite
incentive
payments . . . 11,511 12,367 13,296 14,302 10,652 43,527 105,655
Operating
lease
obligations . . 49,408 43,634 36,636 34,036 29,224 200,884 393,822
Other . . . . . . . . . 66,462 13,829 2,479 895 150 50 83,865
Total(1). . . . $654,018 $442,258 $761,786 $349,992 $326,827 $5,180,468 $7,715,349
(1) The table does not include our reserve for uncertain tax positions, which at December 31, 2014
totaled $1,432, as the specific timing of any cash payments cannot be projected with reasonable
certainty.
Debt obligations. Debt obligations include principal payments on outstanding debt and capital
lease obligations.
Cash interest payments. Cash interest payments include interest due on outstanding debt and
capital lease payments through maturity.
Satellite and transmission. We have entered into agreements with third parties to operate and
maintain the off-site satellite telemetry, tracking and control facilities and certain components of our
terrestrial repeater networks.
Programming and content. We have entered into various programming agreements. Under the
terms of these agreements, our obligations include fixed payments, advertising commitments and
revenue sharing arrangements. Our future revenue sharing costs are dependent upon many factors
and are difficult to estimate; therefore, they are not included in our minimum contractual cash
commitments.
Marketing and distribution. We have entered into various marketing, sponsorship and
distribution agreements to promote our brand and are obligated to make payments to sponsors,
retailers, automakers and radio manufacturers under these agreements. Certain programming and
content agreements also require us to purchase advertising on properties owned or controlled by
the licensors. We also reimburse automakers for certain engineering and development costs
associated with the incorporation of satellite radios into new vehicles they manufacture. In addition,
in the event certain new products are not shipped by a distributor to its customers within 90 days of
the distributor’s receipt of goods, we have agreed to purchase and take title to the product.
Satellite incentive payments. Boeing Satellite Systems International, Inc., the manufacturer of
certain of our in-orbit satellites, may be entitled to future in-orbit performance payments with respect
F-31
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollar amounts in thousands, unless otherwise stated)