Summary of Related Party Balances |
We had the following related party balances associated with Sirius XM Canada:
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|
September 30, 2015
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|
|
December 31, 2014
|
|
Related party current assets
|
|
$
|
8,725
|
|
|
$
|
4,344
|
|
Related party long-term assets
|
|
$
|
—
|
|
|
$
|
3,000
|
|
Related party current liabilities
|
|
$
|
3,013
|
|
|
$
|
4,340
|
|
Related party long-term liabilities
|
|
$
|
11,505
|
|
|
$
|
13,635
|
|
|
Schedule of Related Party Revenues and Other Income |
We recorded the following revenue and other income associated with Sirius XM Canada in our unaudited consolidated statements of comprehensive income:
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|
For the Three Months Ended September 30,
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|
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For the Nine Months Ended September 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Revenue (a)
|
|
$
|
17,941
|
|
|
$
|
11,963
|
|
|
$
|
44,437
|
|
|
$
|
36,303
|
|
Other income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of net earnings (b)
|
|
$
|
—
|
|
|
$
|
1,711
|
|
|
$
|
—
|
|
|
$
|
5,019
|
|
Dividends (c)
|
|
$
|
3,891
|
|
|
$
|
4,591
|
|
|
$
|
8,880
|
|
|
$
|
4,591
|
|
(a)
|
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; 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 unaudited consolidated statements of comprehensive income. The license and services agreement entered into with legacy Sirius Canada will expire in 2017. The license agreement entered into with legacy XM Canada will expire in 2020.
|
(b)
|
We recognize our proportionate share of earnings or losses of Sirius XM Canada as they occur as a component of Other income in our unaudited consolidated statements of comprehensive income on a one month lag. This amount included amortization related to the equity method intangible assets of $363 for the nine months ended September 30, 2014. As of September 30, 2015, we had $3,439 in losses related to our investment in Sirius XM Canada that we had not recorded in our unaudited 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.
|
(c)
|
Sirius XM Canada declared dividends to us of $3,891 and $4,591 during the three months ended September 30, 2015 and 2014, respectively, and $11,881 and $39,046 during the nine months ended September 30, 2015 and 2014, 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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