Sirius XM Holdings Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Leases

Leases

3 Months Ended

Mar. 31, 2019

We have operating and finance leases for offices, terrestrial repeaters, data centers and certain equipment. Our leases have remaining lease terms of less than 1 year to 19 years, some of which may include options to extend the leases for up to 5 years, and some of which may include options to terminate the leases within 1 year. We elected the practical expedient to account for the lease and non-lease components as a single component. Additionally, we elected the practical expedient to not recognize right-of-use assets or lease liabilities for short-term leases, which are those leases with a term of twelve months or less at the lease commencement date.

The components of lease expense were as follows:



	For the Three Months Ended March 31,
	2019
Operating lease cost	$	17
Finance lease cost
Amortization of right-of-use assets	1
Sublease income	(1		)
Total lease cost	$	17

Supplemental cash flow information related to leases was as follows:



	For the Three Months Ended March 31,
	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	17
Financing cash flows from finance leases	$	1

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	2

Supplemental balance sheet information related to leases was as follows:



	March 31, 2019
Operating Leases
Operating lease right-of-use assets	$	428

Operating lease current liabilities	46
Operating lease liabilities	397
Total operating lease liabilities	$	443



	March 31, 2019
Finance Leases
Property and equipment, gross	$	31
Accumulated depreciation	(22		)
Property and equipment, net	$	9

Current maturities of debt	$	4
Long-term debt	1
Total finance lease liabilities	$	5



	March 31, 2019
Weighted Average Remaining Lease Term
Operating leases	10 years
Finance leases	2 years



	March 31, 2019
Weighted Average Discount Rate
Operating leases	5.3	%
Finance leases	1.9	%

Maturities of lease liabilities were as follows:



	Operating Leases			Finance Leases
Year ending December 31,
2019 (remaining)	$	48		$	3
2020	70			2
2021	59			1
2022	56			—
2023	53			—
Thereafter	290			—
Total future minimum lease payments	576			6
Less imputed interest	(133		)	(1		)
Total	$	443		$	5

As of March 31, 2019, we had entered into an additional operating lease for office space that has not yet commenced of $33. This operating lease will commence in the second quarter of 2019 with a lease term of 11 years.

Leases

The components of lease expense were as follows:



	For the Three Months Ended March 31,
	2019
Operating lease cost	$	17
Finance lease cost
Amortization of right-of-use assets	1
Sublease income	(1		)
Total lease cost	$	17

Supplemental cash flow information related to leases was as follows:



	For the Three Months Ended March 31,
	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	17
Financing cash flows from finance leases	$	1

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	2

Supplemental balance sheet information related to leases was as follows:



	March 31, 2019
Operating Leases
Operating lease right-of-use assets	$	428

Operating lease current liabilities	46
Operating lease liabilities	397
Total operating lease liabilities	$	443



	March 31, 2019
Finance Leases
Property and equipment, gross	$	31
Accumulated depreciation	(22		)
Property and equipment, net	$	9

Current maturities of debt	$	4
Long-term debt	1
Total finance lease liabilities	$	5



	March 31, 2019
Weighted Average Remaining Lease Term
Operating leases	10 years
Finance leases	2 years



	March 31, 2019
Weighted Average Discount Rate
Operating leases	5.3	%
Finance leases	1.9	%

Maturities of lease liabilities were as follows:



	Operating Leases			Finance Leases
Year ending December 31,
2019 (remaining)	$	48		$	3
2020	70			2
2021	59			1
2022	56			—
2023	53			—
Thereafter	290			—
Total future minimum lease payments	576			6
Less imputed interest	(133		)	(1		)
Total	$	443		$	5