| Summary of Related Party Balances |
We had the following related party balances at September 30, 2014 and December 31, 2013:
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Related party current assets |
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Related party long-term assets |
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Related party current liabilities |
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Related party current debt |
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Related party long-term liabilities |
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2014 |
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2013 |
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2014 |
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2013 |
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2014 |
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2013 |
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2014 |
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2013 |
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2014 |
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2013 |
Liberty Media |
$ |
53 |
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$ |
278 |
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$ |
— |
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$ |
— |
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$ |
257 |
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$ |
15,766 |
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$ |
10,992 |
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$ |
10,959 |
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$ |
— |
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$ |
— |
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Sirius XM Canada |
3,953 |
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8,867 |
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1,679 |
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27,619 |
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3,011 |
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4,554 |
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— |
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— |
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14,345 |
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16,337 |
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M-Way |
— |
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— |
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— |
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2,545 |
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— |
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— |
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— |
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— |
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— |
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— |
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Total |
$ |
4,006 |
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$ |
9,145 |
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$ |
1,679 |
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$ |
30,164 |
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$ |
3,268 |
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$ |
20,320 |
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$ |
10,992 |
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$ |
10,959 |
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$ |
14,345 |
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$ |
16,337 |
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| Schedule of Related Party Revenue and Expenses |
We recorded the following revenue and expenses associated with our related parties which were recorded in our unaudited consolidated statements of comprehensive income:
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For the Three Months Ended September 30, |
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For the Nine Months Ended September 30, |
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2014 |
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2013 |
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2014 |
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2013 |
Sirius XM Canada: |
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Revenue (a) |
$ |
11,963 |
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$ |
10,669 |
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$ |
36,303 |
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$ |
33,980 |
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Share of net earnings (b) |
$ |
6,302 |
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$ |
1,449 |
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$ |
9,610 |
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$ |
2,831 |
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Liberty Media: |
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Expenses (c) |
$ |
(281 |
) |
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$ |
(3,619 |
) |
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$ |
(837 |
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$ |
(12,978 |
) |
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(a) |
Under our agreements with Sirius XM Canada, we receive a percentage-based royalty for certain types of subscription revenue earned by Sirius XM Canada for the distribution of Sirius and XM channels, 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. |
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(b) |
Our share of Sirius XM Canada's net earnings is recorded to Interest and investment income in our unaudited consolidated statements of comprehensive income on a one month lag. During the nine months ended September 30, 2014, our share of Sirius XM Canada’s net earnings 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. Sirius XM Canada declared dividends to us of $4,591 and $4,727 during the three months ended September 30, 2014 and 2013, respectively, and $39,046 and $12,209 during the nine months ended September 30, 2014 and 2013, respectively. These dividends were recorded as a reduction to our investment balance in Sirius XM Canada through the second quarter of 2014 and as Interest and investment income beginning in the third quarter of 2014. This amount includes amortization related to the equity method intangible assets of $0 and $364 for the three months ended September 30, 2014 and 2013, respectively, and $363 and $1,091 for the nine months ended September 30, 2014 and 2013, respectively.
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(c) |
We recognize Interest expense associated with the portion of the 7% Exchangeable Senior Subordinated Notes due 2014 held by Liberty Media. |
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