SIRIUS XM RADIO INC.
(Exact name of company as specified in its charter)
QUARTERLY REPORT
For the Quarterly Period Ended March 31, 2022
Explanatory Note
Sirius XM Radio Inc. ("Sirius XM") is furnishing this Quarterly Report for the quarterly period ended March 31, 2022 (the "Quarterly Report") in order to comply with the reporting obligations in the indentures governing its 3.125% Senior Notes due 2026, 5.00% Senior Notes due 2027, 4.00% Senior Notes due 2028, 5.50% Senior Notes due 2029, 4.125% Senior Notes due 2030 and 3.875% Senior Notes due 2031 (collectively, the "Notes").
Before making any investment decisions in Sirius XM or Sirius XM Holdings Inc. ("Holdings"), investors should read the following unaudited consolidated financial statements and Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") of Sirius XM in conjunction with Holdings' Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022 and Holdings' other reports available through the Securities and Exchange Commission website atwww.sec.govand our website at www.siriusxm.com, and with Sirius XM's other reports available through our website. Holdings' Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2022 is hereby incorporated by reference except for Section 9A and Exhibits 31.1, 31.2, 32.1 and 32.2 contained therein. Sirius XM is a wholly-owned subsidiary of Holdings and Holdings has no operations independent of Sirius XM. Refer to Note 1 to the unaudited consolidated financial statements included within this Quarterly Report for an explanation of differences between Sirius XM and Holdings' unaudited consolidated financial statements.
The terms "Sirius XM," "we," "us," "our," and the "Company," as used herein and unless otherwise stated or indicated by context, refer to Sirius XM Radio Inc. and its subsidiaries. "Pandora" refers to Sirius XM's wholly owned subsidiary Pandora Media, LLC (the successor to Pandora Media, Inc.) and its subsidiaries.
SIRIUS XM RADIO INC. AND SUBSIDIARIES
TABLE OF CONTENTS
Consolidated Statements of Comprehensive Income for the three months ended March 31, 2022 and 20212
Consolidated Balance Sheets as of March 31, 2022 and December 31, 20213
Consolidated Statements of Stockholders' Equity (Deficit) for the three months ended March 31, 2022 and 20214
Consolidated Statements of Cash Flows for the three months ended March 31, 2022 and 2021 5
Notes to Consolidated Financial Statements 7
Management's Discussion and Analysis of Financial Condition and Results of Operations 26
1
(in millions)
Revenue:
Subscriber revenue
SIRIUS XM RADIO INC. AND SUBSIDIARIES
(a wholly-owned subsidiary of Sirius XM Holdings Inc.) CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
For the Three Months Ended March 31,2022
2021
$
1,713 $ 1,611
Advertising revenue
383 354
Equipment revenue
53 57
Other revenue
37 36
Total revenue Operating expenses: Cost of services:
2,186 2,058
Revenue share and royalties
670 640
Programming and content
140 130
Customer service and billing
125 117
Transmission
51 48
Cost of equipment
3 4
Subscriber acquisition costs Sales and marketing
90 86
272 217
Engineering, design and development General and administrative Depreciation and amortization
67 64
123 121
135 132
- 245
Impairment, restructuring and acquisition costs Total operating expenses
1,676 1,804
510 254
Income from operations Other (expense) income:
Interest expense
(101) (98)
Other income (expense)
1 (5)
(100) (103)
(100) 62
Total other (expense) income Income before income taxes Income tax (expense) benefit
Net income attributable to Sirius XM Radio Inc.'s sole stockholder
410 151
$
310
$ 213
Foreign currency translation adjustment, net of tax
8 5
Total comprehensive income attributable to Sirius XM Radio Inc.'s sole stockholder
$
See accompanying notes to the unaudited consolidated financial statements.
318
$ 218
2
(in millions, except per share data)
Current assets:
650 722
Cash and cash equivalents Receivables, net
Related party current assets
SIRIUS XM RADIO INC. AND SUBSIDIARIES
(a wholly-owned subsidiary of Sirius XM Holdings Inc.)
CONSOLIDATED BALANCE SHEETS
March 31, 2022
December 31, 2021
ASSETS
(unaudited)
$
76 $ 191
13 21
Prepaid expenses and other current assets
317 246
Total current assets
1,056 1,180
1,458 1,450
3,165 3,136
Property and equipment, net Intangible assets, net Goodwill
3,166 3,186
Related party long-term assets Deferred tax assets
6,584 5,317
211 211
Operating lease right-of-use assets Other long-term assets
346 358
216 223
Total assets
$
16,202
$ 15,061
LIABILITIES AND STOCKHOLDER EQUITY
Current liabilities:
$
1,179 $ 1,299
Accounts payable and accrued expenses Accrued interest
71 173
1,451 1,454
68 5
Current portion of deferred revenue Operating lease current liabilities Related party current liabilities
91 97
52 49
Total current liabilities Long-term deferred revenue Long-term debt
2,821 2,980
9,860 8,875
512 478
150 150
Deferred tax liabilities Operating lease liabilities Other long-term liabilities
Total liabilities
344 362
13,778 12,942
Commitments and contingencies (Note 14)
Stockholder equity:
Common stock, par value $0.001 per share; 9,000 shares authorized; 0.001 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively
Accumulated other comprehensive income, net of tax
- 23
- 15
Additional paid-in capital
2,180 2,180
Accumulated deficit
221 (76)
Total stockholder equity
2,424 2,119
Total liabilities and stockholder equity
$
16,202
See accompanying notes to the unaudited consolidated financial statements.
$ 15,061
3
SIRIUS XM RADIO INC. AND SUBSIDIARIES
(a wholly-owned subsidiary of Sirius XM Holdings Inc.) CONSOLIDATED STATEMENTS OF STOCKHOLDER EQUITY
(UNAUDITED)
For the Three Months Ended March 31, 2022
Common Stock
(in millions)
AccumulatedOther ComprehensiveSharesAdditionalAmount
Paid-in Capital
IncomeAccumulated
DeficitTotal Stockholder
Equity
Balance at December 31, 2021
$
$
(76) $ 2,119
Tax Sharing Agreement with Liberty Media Comprehensive income, net of tax
Balance at March 31, 2022
- $ - -
-
- $ - -
$
-
$
For the Three Months Ended March 31, 2021
15 - 8
2,180 - -
23
(13) (13)
310 318
$
2,180
$
221
$ 2,424
Common Stock
(in millions)
-
$
-
$
20
$
8,680
$
(1,180) $ 7,520
Shares
Balance at December 31, 2020 Comprehensive income, net of tax Balance at March 31, 2021
- $ -
AccumulatedOther ComprehensiveAmount
- $ -
Additional
Income
15 $ 5
See accompanying notes to the unaudited consolidated financial statements.
Paid-in Capital
Accumulated
DeficitTotal Stockholder
Equity
8,680 -
$
(1,393) $ 7,302
213 218
4
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Sirius XM Holdings Inc. published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 15:12:03 UTC.