XM Radio 2014 Annual Report Download - page 96

outstanding 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 in 2012 were primarily due to the repayment of the remaining balance of our
then outstanding 13% Senior Notes due 2013 and our then outstanding 9.75% Senior Secured
Notes due 2015, partially offset by the issuance of our 5.25% Senior Notes due 2022 and the
exercise of 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 for repurchase an aggregate of
$6,000,000 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, pursuant to pre-set trading plans meeting the requirements of Rule 10b5-1 under the
Exchange Act, in privately negotiated transactions, including transactions with Liberty Media and its
affiliates, or otherwise.
As of December 31, 2014, our cumulative repurchases since December 2012 under our stock
repurchase program totaled 1,259,274,498 shares for $4,285,192, and $1,714,808 remained
available under our stock repurchase program. We expect to fund future repurchases through a
combination of cash on hand, cash generated by operations and future borrowings.
Debt Covenants
The indentures governing Sirius XM’s senior notes, and the agreement governing Sirius XM’s
Credit Facility include restrictive covenants. As of December 31, 2014, we were in compliance with
such covenants. For a discussion of our “Debt Covenants,” refer to Note 14 to our consolidated
financial statements in this Annual Report.
Off-Balance Sheet Arrangements
We do not have any significant off-balance sheet arrangements other than those disclosed in
Note 17 to our consolidated financial statements in this Annual Report that are reasonably likely to
have a material effect on our financial condition, results of operations, liquidity, capital expenditures
or capital resources.
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