| Summary of Related Party Balances |
We had the following related party balances associated with Sirius XM Canada:
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December 31, 2015
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December 31, 2014
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Related party current assets
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$
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5,941
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|
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$
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4,344
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Related party long-term assets
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$
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—
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$
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3,000
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Related party current liabilities
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$
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2,840
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|
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$
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4,340
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Related party long-term liabilities
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|
$
|
10,795
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|
|
$
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13,635
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| Schedule of Related Party Revenues and Other Income |
We recorded the following revenue and other income associated with Sirius XM Canada in our consolidated statements of comprehensive income:
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For the Years Ended December 31,
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2015
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2014
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2013
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Revenue (a)
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$
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56,397
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$
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49,691
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$
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48,935
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Other income
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Share of net earnings (b)
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$
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—
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$
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7,889
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$
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5,865
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Dividends (c)
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$
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12,645
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$
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7,628
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|
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$
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—
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(a)
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Under our agreements with Sirius XM Canada, we currently receive a percentage-based royalty of 10% and 15% for certain types of subscription revenue earned by Sirius XM Canada for Sirius and XM platforms, respectively; and additional royalties for premium services and royalties for activation fees and reimbursements for other charges. We record revenue from Sirius XM Canada as Other revenue in our consolidated statements of comprehensive income. The license and services agreement entered into with Sirius Canada will expire in 2017. The license agreement entered into with XM Canada will expire in 2020.
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(b)
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We recognize our proportionate share of earnings or losses of Sirius XM Canada as they occur as a component of Other income in our consolidated statements of comprehensive income on a one month lag. This amount included amortization related to the equity method intangible assets of $363 and $1,454 for the years ended December 31, 2014 and 2013, respectively, and for 2014, this also included a gain of $1,251 related to the fair value received in excess of the carrying value associated with the redemption of our investment in Sirius XM Canada’s 8% convertible unsecured subordinated debentures in February 2014. As of December 31, 2015, we had $840 in losses related to our investment in Sirius XM Canada that we had not recorded in our consolidated financial statements since our investment balance is zero. Future equity income will be offset by these losses prior to recording equity income in our results.
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(c)
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Sirius XM Canada paid gross dividends to us of $15,645, $43,492 and $16,796 during the years ended December 31, 2015, 2014 and 2013, respectively. These dividends were first recorded as a reduction to our investment balance in Sirius XM Canada to the extent a balance existed and then as Other income for the remaining portion.
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