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[] 0 d 0 J 0 j 3 M 499 249.75 m 563 249.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 273 235.75 m 348 235.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 273 211.75 m 348 211.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 273 209.75 m 348 209.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352 235.75 m 427 235.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352 211.75 m 427 211.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352 209.75 m 427 209.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 235.75 m 495 235.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 211.75 m 495 211.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 209.75 m 495 209.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 235.75 m 563 235.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 211.75 m 563 211.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 209.75 m 563 209.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 284.45 684.98 Td (For) Tj ET Q q 0 0 0 rg BT 296.82 684.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 311.33 684.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 324.53 684.98 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.20 684.98 Td (For) Tj ET Q q 0 0 0 rg BT 448.57 684.98 Td ( the Six Months Ended June 30,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 670.00 Td (\(in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 302.00 669.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 381.00 669.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.50 669.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.50 669.98 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 655.42 Td (Revenue:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 640.42 Td (Subscriber revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.50 640.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 640.42 Td (1,138,962) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.50 640.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.15 640.42 Td (1,1) Tj ET Q q 0 0 0 rg BT 395.65 640.42 Td (1) Tj ET Q q 0 0 0 rg BT 400.65 640.42 Td (1,01) Tj ET Q q 0 0 0 rg BT 418.15 640.42 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.50 640.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 640.42 Td (2,256,046) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.50 640.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 640.42 Td (2,189,268) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 625.42 Td (Advertising revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.65 625.42 Td (47,242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 625.42 Td (40,178) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 625.42 Td (89,290) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 625.42 Td (76,194) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 610.42 Td (Equipment revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.65 610.42 Td (36,840) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 610.42 Td (29,674) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 610.42 Td (71,929) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 610.42 Td (59,332) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 595.42 Td (Music royalty fee and other revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 595.42 Td (209,255) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.65 595.42 Td (166,706) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 595.42 Td (390,136) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 595.42 Td (316,841) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 580.42 Td (T) Tj ET Q q 0 0 0 rg BT 58.26 580.42 Td (otal revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 580.42 Td (1,432,299) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.15 580.42 Td (1,347,569) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 580.42 Td (2,807,401) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 580.42 Td (2,641,635) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 565.42 Td (Operating expenses:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 550.42 Td (Cost of services:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 535.42 Td (Revenue share and royalties) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 535.42 Td (404,284) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.65 535.42 Td (292,893) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 535.42 Td (714,416) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 535.42 Td (570,193) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 520.42 Td (Programming and content) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 520.42 Td (105,650) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 520.42 Td (96,255) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 520.42 Td (206,486) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 520.42 Td (191,799) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 505.42 Td (Customer service and billing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.65 505.42 Td (95,582) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 505.42 Td (95,324) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 505.42 Td (189,447) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 505.42 Td (192,099) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 490.42 Td (Satellite and transmission) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.65 490.42 Td (23,478) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 490.42 Td (19,603) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 490.42 Td (46,200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 490.42 Td (40,179) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 475.42 Td (Cost of equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.65 475.42 Td (7,674) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 475.42 Td (9,371) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 475.42 Td (14,771) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 475.42 Td (16,283) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 460.42 Td (Subscriber acquisition costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 460.42 Td (1) Tj ET Q q 0 0 0 rg BT 316.65 460.42 Td (19,778) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.65 460.42 Td (125,154) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 460.42 Td (242,471) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 460.42 Td (252,642) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 445.42 Td (Sales and marketing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 445.42 Td (1) Tj ET Q q 0 0 0 rg BT 316.65 445.42 Td (19,435) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.65 445.42 Td (106,707) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 445.42 Td (226,146) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 445.42 Td (203,616) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 430.42 Td (Engineering, design and development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.65 430.42 Td (27,485) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 430.42 Td (27,783) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 430.42 Td (58,122) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 430.42 Td (51,600) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 415.42 Td (General and administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.65 415.42 Td (92,683) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 415.42 Td (84,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 415.42 Td (177,289) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 415.42 Td (162,808) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 400.42 Td (Depreciation and amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.65 400.42 Td (74,623) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 400.42 Td (73,519) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 400.42 Td (146,835) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 400.42 Td (150,223) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 385.42 Td (T) Tj ET Q q 0 0 0 rg BT 58.26 385.42 Td (otal operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 385.42 Td (1,070,672) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.65 385.42 Td (931,216) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 385.42 Td (2,022,183) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 385.42 Td (1,831,442) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 370.42 Td (Income from operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 370.42 Td (361,627) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.65 370.42 Td (416,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 370.42 Td (785,218) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 370.42 Td (810,193) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 355.42 Td (Other income \(expense\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 340.42 Td (Interest expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.30 340.47 Td (\(86,917) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.15 340.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.30 340.47 Td (\(82,794) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.15 340.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.30 340.47 Td (\(176,706) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 340.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 340.47 Td (\(164,451) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 340.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 325.42 Td (Other income \(expense\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.65 325.42 Td (88,212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.30 325.47 Td (\(1) Tj ET Q q 0 0 0 rg BT 400.63 325.47 Td (1,937) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.15 325.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 325.42 Td (124,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 325.47 Td (\(3,074) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 325.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 310.42 Td (T) Tj ET Q q 0 0 0 rg BT 58.26 310.42 Td (otal other income \(expense\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.65 310.42 Td (1,295) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.30 310.47 Td (\(94,731) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.15 310.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.30 310.47 Td (\(52,606) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 310.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 310.47 Td (\(167,525) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 310.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 295.42 Td (Income before income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 295.42 Td (362,922) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.65 295.42 Td (321,622) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 295.42 Td (732,612) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 295.42 Td (642,668) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 280.42 Td (Income tax expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.30 280.47 Td (\(70,570) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.15 280.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.30 280.47 Td (\(1) Tj ET Q q 0 0 0 rg BT 395.63 280.47 Td (19,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.15 280.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.30 280.47 Td (\(150,819) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 280.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 280.47 Td (\(233,486) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 280.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 265.42 Td (Net income attributable to Sirius XM Radio Inc.'s) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 255.42 Td (sole stockholder) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.50 255.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 255.42 Td (292,352) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.50 255.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.65 255.42 Td (202,109) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.50 255.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 255.42 Td (581,793) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.50 255.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 255.42 Td (409,182) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 240.42 Td (Foreign currency translation adjustment, net of tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.30 240.47 Td (\(8,242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.15 240.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 240.42 Td (2,763) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.30 240.47 Td (\(17,826) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 240.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 240.42 Td (2,746) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 225.42 Td (T) Tj ET Q q 0 0 0 rg BT 57.91 225.42 Td (otal comprehensive income attributable to Sirius) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 215.42 Td (XM Radio Inc.'s sole stockholder) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.50 215.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 215.42 Td (284,1) Tj ET Q q 0 0 0 rg BT 334.15 215.42 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.50 215.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.65 215.42 Td (204,872) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.50 215.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 215.42 Td (563,967) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.50 215.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 215.42 Td (41) Tj ET Q q 0 0 0 rg BT 536.65 215.42 Td (1,928) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.20 187.25 Td (See accompanying notes to the unaudited consolidated financial statements.) 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rg BT 530.65 652.42 Td (69,022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 638.32 Td (Receivables, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 637.42 Td (247,148) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 637.42 Td (241,727) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 623.32 Td (Inventory) Tj ET Q q 0 0 0 rg BT 102.05 623.32 Td (, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 622.42 Td (18,967) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 622.42 Td (20,199) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 608.32 Td (Related party current assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 607.42 Td (13,692) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 607.42 Td (10,284) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 593.32 Td (Prepaid expenses and other current assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 592.42 Td (138,015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 592.42 Td (129,669) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 578.32 Td (T) Tj ET Q q 0 0 0 rg BT 81.26 578.32 Td (otal current assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 577.42 Td (481,338) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 577.42 Td (470,901) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 563.32 Td (Property and equipment, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 562.42 Td (1,468,930) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 562.42 Td (1,462,766) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 548.32 Td (Intangible assets, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 547.42 Td (2,51) Tj ET Q q 0 0 0 rg BT 456.65 547.42 Td (1,121) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 547.42 Td (2,522,846) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 533.32 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 532.42 Td (2,286,582) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 532.42 Td (2,286,582) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 518.32 Td (Related party long-term assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 517.42 Td (8,028,101) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 517.42 Td (7,522,007) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 503.32 Td (Deferred tax assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 502.42 Td (371,303) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 502.42 Td (505,528) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 488.32 Td (Other long-term assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 487.42 Td (128,543) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 487.42 Td (1) Tj ET Q q 0 0 0 rg BT 530.65 487.42 Td (18,671) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 473.32 Td (T) Tj ET Q q 0 0 0 rg BT 93.26 473.32 Td (otal assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.50 472.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.15 472.42 Td (15,275,918) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 472.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.15 472.42 Td (14,889,301) Tj ET 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/F1 10.00 Tf ET q 0 0 0 rg BT 518.15 397.42 Td (1,881,825) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 383.32 Td (Current maturities of long-term debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 382.42 Td (4,660) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 382.42 Td (5,105) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 368.32 Td (Related party current liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 367.42 Td (4,103) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 367.42 Td (2,839) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 353.32 Td (T) Tj ET Q q 0 0 0 rg BT 80.91 353.32 Td (otal current liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 352.42 Td (2,904,987) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 352.42 Td (2,795,274) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 338.32 Td (Deferred revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 337.42 Td (160,286) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 337.42 Td (174,579) Tj ET Q BT 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/F1 10.00 Tf ET q 0 0 0 rg BT 439.15 262.42 Td (9,631,218) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 262.42 Td (9,826,984) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 248.32 Td (Commitments and contingencies \(Note 13\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 233.32 Td (Stockholder equity:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 217.42 Td (Common stock, par value $0.001; 9,000,000 shares authorized; 1 share issued and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 207.42 Td (outstanding at June 30, 2018 and December 31, 2017, respectively) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 207.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 207.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 193.32 Td (Accumulated other comprehensive income, net of tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 192.42 Td (4,594) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 192.42 Td (18,407) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 178.32 Td (Additional paid-in capital) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 177.42 Td (8,679,538) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 177.42 Td (8,679,538) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 162.42 Td (Accumulated deficit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.80 162.47 Td (\(3,039,432) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 162.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.80 162.47 Td (\(3,635,628) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 162.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 148.32 Td (T) Tj ET Q q 0 0 0 rg BT 93.26 148.32 Td (otal stockholder equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 147.42 Td (5,644,700) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 147.42 Td (5,062,317) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 133.32 Td (T) Tj ET Q q 0 0 0 rg BT 92.91 133.32 Td (otal liabilities and stockholder equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.50 132.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.15 132.42 Td (15,275,918) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 132.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.15 132.42 Td (14,889,301) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.20 102.45 Td (See accompanying notes to the unaudited consolidated financial statements.) 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Td ( ST) Tj ET Q q 0 0 0 rg BT 429.43 536.25 Td (OCKHOLDER EQUITY) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 362.35 524.25 Td (\(UNAUDITED\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 466.75 312.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 348.50 466.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 352.50 466.75 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 466.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 466.75 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.50 466.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 466.75 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 552.50 466.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 556.50 466.75 64.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 620.50 466.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 624.50 466.75 64.00 -14.00 re f /GS0 gs 0.8 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Tj ET Q q 0 0 0 rg BT 388.80 470.98 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.95 470.98 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.30 492.83 Td (Accumulated ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.85 484.83 Td (Other) Tj ET Q q 0 0 0 rg BT 530.14 484.83 Td ( ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 493.40 476.83 Td (Compr) Tj ET Q q 0 0 0 rg BT 517.70 476.83 Td (ehensive ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 495.85 468.88 Td (Income \(Loss\) ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 569.75 486.98 Td (Additional) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 575.55 478.98 Td (Paid-in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 575.30 470.98 Td (Capital) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 633.30 478.98 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 644.65 470.98 Td (Deficit) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 715.25 486.98 Td (T) Tj ET Q q 0 0 0 rg BT 719.85 486.98 Td (otal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 703.40 478.98 Td 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720.15 429.32 Td (563,967) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 39.00 415.32 Td (Balance at June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.65 415.32 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.00 415.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.65 415.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.00 415.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 415.32 Td (4,594) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 415.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 576.65 415.32 Td (8,679,538) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 627.00 415.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 641.30 415.32 Td (\(3,039,432) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 684.65 415.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 695.00 415.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 712.65 415.32 Td (5,644,700) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.20 381.25 Td (See accompanying notes to the unaudited consolidated financial statements.) 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w 0 i [] 0 d 0 J 0 j 3 M 487 677.75 m 562 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408 663.75 m 483 663.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 663.75 m 562 663.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408 663.75 m 483 663.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 663.75 m 562 663.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408 377.75 m 483 377.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 377.75 m 562 377.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408 286.75 m 483 286.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 286.75 m 562 286.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408 221.75 m 483 221.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408 208.75 m 483 208.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 221.75 m 562 221.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 208.75 m 562 208.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408 182.75 m 483 182.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408 170.75 m 483 170.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408 168.75 m 483 168.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 182.75 m 562 182.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 170.75 m 562 170.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 168.75 m 562 168.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 424.20 681.98 Td (For) Tj ET Q q 0 0 0 rg BT 436.57 681.98 Td ( the Six Months Ended June 30,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 668.00 Td (\(in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.00 667.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.00 667.98 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 654.32 Td (Cash flows from operating activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 641.32 Td (Net income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.50 641.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 641.32 Td (581,793) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 641.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 641.32 Td (409,182) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 628.32 Td (Adjustments to reconcile net income to net cash provided by operating activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 615.32 Td (Depreciation and amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 615.32 Td (146,835) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 615.32 Td (150,223) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 602.32 Td (Non-cash interest expense, net of amortization of premium) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 602.32 Td (4,713) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 602.32 Td (4,231) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 589.32 Td (Provision for doubtful accounts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 589.32 Td (23,944) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 589.32 Td (27,377) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 576.32 Td (Amortization of deferred income related to equity method investment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.30 576.37 Td (\(1,388) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 576.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 576.37 Td (\(1,388) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 576.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 563.32 Td (Loss on unconsolidated entity investments, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 563.32 Td (64) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 563.32 Td (2,183) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 550.32 Td (Gain on fair value instrument) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.30 550.37 Td (\(1) Tj ET Q q 0 0 0 rg BT 451.63 550.37 Td (17,449) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 550.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 550.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 537.32 Td (Dividend received from unconsolidated entity investment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 537.32 Td (1,366) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 537.32 Td (3,606) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 524.32 Td (Share-based payment expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 524.32 Td (70,448) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 524.32 Td (59,697) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 511.32 Td (Deferred income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 511.32 Td (134,044) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 511.32 Td (220,415) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 498.32 Td (Changes in operating assets and liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 485.32 Td (Receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.30 485.37 Td (\(29,364) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 485.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.30 485.37 Td (\(38,063) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 485.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 472.32 Td (Inventory) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 472.32 Td (1,232) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 472.32 Td (2,492) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 459.32 Td (Related party) Tj ET Q q 0 0 0 rg BT 122.76 459.32 Td (, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.30 459.37 Td (\(43,868) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 459.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.30 459.37 Td (\(12,928) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 459.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 446.32 Td (Prepaid expenses and other current assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 446.37 Td (\(177) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 446.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 446.37 Td (\(6,617) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 446.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 433.32 Td (Other long-term assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 433.32 Td (8,356) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 433.32 Td (5,937) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 420.32 Td (Accounts payable and accrued expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 420.32 Td (58,502) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.30 420.37 Td (\(84,501) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 420.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 407.32 Td (Accrued interest) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.30 407.37 Td (\(9,399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 407.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 407.37 Td (\(7,042) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 407.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 394.32 Td (Deferred revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 394.32 Td (85,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 394.32 Td (30,779) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 381.32 Td (Other long-term liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 381.32 Td (7,863) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 381.32 Td (4,358) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 368.32 Td (Net cash provided by operating activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 368.32 Td (922,615) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 368.32 Td (769,941) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 355.32 Td (Cash flows from investing activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 342.32 Td (Additions to property and equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.30 342.37 Td (\(174,273) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 342.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.30 342.37 Td (\(1) Tj ET Q q 0 0 0 rg BT 530.63 342.37 Td (19,517) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 342.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 329.32 Td (Purchases of other investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.30 329.37 Td (\(7,138) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 329.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 329.37 Td (\(7,355) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 329.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 316.32 Td (Acquisition of business, net of cash acquired) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 316.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.30 316.37 Td (\(107,056) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 316.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 303.32 Td (Investments in related parties and other equity investees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.30 303.37 Td (\(6,138) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 303.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.30 303.37 Td (\(302,526) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 303.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 290.32 Td (Repayment from \(loan to\) related party) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 290.32 Td (3,242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.30 290.37 Td (\(130,794) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 290.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 277.32 Td (Net cash used in investing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.30 277.37 Td (\(184,307) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 277.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.30 277.37 Td (\(667,248) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 277.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 264.32 Td (Cash flows from financing activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 251.32 Td (Intercompany financing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.30 251.37 Td (\(432,899) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 251.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.30 251.37 Td (\(877,462) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 251.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 238.32 Td (Revolving credit facility) Tj ET Q q 0 0 0 rg BT 160.92 238.32 Td (, net of deferred financing costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.30 238.37 Td (\(302,61) Tj ET Q q 0 0 0 rg BT 474.13 238.37 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 238.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 238.32 Td (610,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 225.32 Td (Principal payments of long-term borrowings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.30 225.37 Td (\(7,717) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 225.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 225.37 Td (\(6,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 225.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 212.32 Td (Net cash used in financing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.30 212.37 Td (\(743,227) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 212.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.30 212.37 Td (\(273,462) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 212.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 199.32 Td (Net decrease in cash, cash equivalents and restricted cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.30 199.37 Td (\(4,919) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 199.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.30 199.37 Td (\(170,769) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 199.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 186.32 Td (Cash, cash equivalents and restricted cash at beginning of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 186.32 Td (79,374) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 186.32 Td (223,828) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 173.32 Td (Cash, cash equivalents and restricted cash at end of period) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 284.75 177.85 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.50 173.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 173.32 Td (74,455) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 173.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 173.32 Td (53,059) Tj ET Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 153.45 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 153.45 Td (The following table reconciles cash, cash equivalents and restricted cash per the statement of cash flows to the balance sheet. ) Tj ET Q q 0 0 0 rg BT 528.67 153.45 Td (The ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 142.65 Td (restricted cash balances are primarily due to letters of credit which have been issued to the landlords of leased of) Tj ET Q q 0 0 0 rg BT 481.43 142.65 Td (fice space. ) Tj ET Q q 0 0 0 rg BT 521.49 142.65 Td (The terms ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 131.85 Td (of the letters of credit primarily extend beyond one year) Tj ET Q q 0 0 0 rg BT 277.18 131.85 Td (.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 77.00 111.35 229.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.00 111.35 51.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 111.35 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.00 111.35 72.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 111.35 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.00 111.35 51.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 111.35 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 111.35 72.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 77.00 89.35 229.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.00 89.35 51.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 89.35 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.00 89.35 72.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 89.35 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.00 89.35 51.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 89.35 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 89.35 72.00 -11.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 111.35000000000002 m 357 111.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361 111.35000000000002 m 433 111.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 111.35000000000002 m 488 111.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 111.35000000000002 m 564 111.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 111.35000000000002 m 357 111.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 78.35000000000002 m 357 78.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 68.35000000000002 m 357 68.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 66.35000000000002 m 357 66.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361 78.35000000000002 m 433 78.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361 68.35000000000002 m 433 68.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361 66.35000000000002 m 433 66.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 78.35000000000002 m 488 78.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 68.35000000000002 m 488 68.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 66.35000000000002 m 488 66.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 78.35000000000002 m 564 78.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 68.35000000000002 m 564 68.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 66.35000000000002 m 564 66.35000000000002 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 310.65 114.11 Td (June 30, 2018) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 368.25 114.11 Td (December) Tj ET Q q 0 0 0 rg BT 398.50 114.11 Td ( 31, 2017) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 441.65 114.11 Td (June 30, 2017) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 499.25 114.11 Td (December) Tj ET Q q 0 0 0 rg BT 529.44 114.11 Td ( 31, 2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 79.50 103.30 Td (Cash and cash equivalents) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.50 103.30 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 331.75 103.30 Td (63,516) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.50 103.30 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.80 103.30 Td (69,022) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 439.50 103.30 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 462.75 103.30 Td (42,738) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.50 103.30 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 534.80 103.30 Td (213,939) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 79.50 92.30 Td (Restricted cash included in Prepaid expenses and other current assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 341.80 92.30 Td (150) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 417.80 92.30 Td (244) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 472.80 92.30 Td (432) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 552.80 92.30 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 79.50 81.30 Td (Restricted cash included in Other long-term assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 331.75 81.30 Td (10,789) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.80 81.30 Td (10,108) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.80 81.30 Td (9,889) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 542.80 81.30 Td (9,889) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 79.50 70.30 Td (T) Tj ET Q q 0 0 0 rg BT 83.83 70.30 Td (otal cash, cash equivalents and restricted cash at end of period) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.50 70.30 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 331.75 70.30 Td (74,455) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 363.50 70.30 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 407.80 70.30 Td (79,374) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 439.50 70.30 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 462.75 70.30 Td (53,059) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.50 70.30 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 534.80 70.30 Td (223,828) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.20 52.85 Td (See accompanying notes to the unaudited consolidated financial statements.) Tj ET Q endstream endobj 15 0 obj <>] /Rotate 0 /Contents 16 0 R>> endobj 16 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 740.25 Td (SIRIUS XM RADIO INC. ) Tj ET Q q 0 0 0 rg BT 315.43 740.25 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.05 728.25 Td (\(a wholly-owned subsidiary of Sirius XM Holdings Inc.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 161.95 716.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 221.77 716.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 256.32 716.25 Td (A) Tj ET Q q 0 0 0 rg BT 262.80 716.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 327.72 716.25 Td ( CASH FLOWS - Continued) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.35 704.25 Td (\(UNAUDITED\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 662.75 359.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 662.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 662.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 662.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 634.75 359.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 634.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 634.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 634.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 606.75 359.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 606.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 606.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 606.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 578.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 578.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 578.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 578.75 75.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 676.75 m 484 676.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484 676.75 m 488 676.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 676.75 m 563 676.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 676.75 m 484 676.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 662.75 m 484 662.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 676.75 m 563 676.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 662.75 m 563 662.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 662.75 m 484 662.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 662.75 m 563 662.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 681.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 425.20 680.98 Td (For) Tj ET Q q 0 0 0 rg BT 437.57 680.98 Td ( the Six Months Ended June 30,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 667.00 Td (\(in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.00 666.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.00 666.98 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 653.32 Td (Supplemental Disclosure of Cash and Non-Cash Flow Information) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 639.32 Td (Cash paid during the period for:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 625.32 Td (Interest, net of amounts capitalized) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 625.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 625.32 Td (178,850) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 625.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 625.32 Td (164,147) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 611.32 Td (Income taxes paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 611.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.65 611.32 Td (5,625) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 611.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 611.32 Td (12,264) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 597.32 Td (Non-cash investing and financing activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 583.32 Td (Capital lease obligations incurred to acquire assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 583.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 583.32 Td (499) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 583.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 583.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 568.42 Td (Other comprehensive loss \(income\), net of tax benefit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 568.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 568.42 Td (17,826) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 568.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 568.47 Td (\(2,746) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 568.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.20 540.25 Td (See accompanying notes to the unaudited consolidated financial statements.) Tj ET Q endstream endobj 17 0 obj <>] /Rotate 0 /Contents 18 0 R>> endobj 18 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 760.60 Td (SIRIUS XM RADIO INC. ) Tj ET Q q 0 0 0 rg BT 315.43 760.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.05 748.60 Td (\(a wholly-owned subsidiary of Sirius XM Holdings Inc.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 175.30 736.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 211.52 736.60 Td (T) Tj ET Q q 0 0 0 rg BT 218.01 736.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 288.11 736.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 367.29 736.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 381.28 736.60 Td (A) Tj ET Q q 0 0 0 rg BT 387.76 736.60 Td (TEMENTS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.35 724.60 Td (\(UNAUDITED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.75 712.60 Td (\(Dollars and shar) Tj ET Q q 0 0 0 rg BT 252.02 712.60 Td (es in thousands, except per) Tj ET Q q 0 0 0 rg BT 366.02 712.60 Td ( shar) Tj ET Q q 0 0 0 rg BT 387.23 712.60 Td (e amounts\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (\(1\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 683.10 Td (Business & Basis of Pr) Tj ET Q q 0 0 0 rg BT 172.44 683.10 Td (esentation) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.00 665.10 Td (Business) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 647.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 647.10 Td (e transmit music, sports, entertainment, comedy) Tj ET Q q 0 0 0 rg BT 276.11 647.10 Td (, talk, news, traf) Tj ET Q q 0 0 0 rg BT 340.35 647.10 Td (fic and weather channels, as well as infotainment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (services, in the United States on a subscription fee basis through our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.28 635.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.28 635.10 Td ( proprietary satellite radio systems.Subscribers can ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (also receive music and other channels, plus features such as SiriusXM On Demand, over our Internet radio service, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (through applications for mobile devices, home devices and other consumer electronic equipment.) Tj ET Q q 0 0 0 rg BT 443.36 611.10 Td (W) Tj ET Q q 0 0 0 rg BT 452.00 611.10 Td (e also provide connected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (vehicle services.Our connected vehicle services are designed to enhance the safety) Tj ET Q q 0 0 0 rg BT 383.97 599.10 Td (, security and driving experience for vehicle ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (operators while providing marketing and operational benefits to automakers and their dealers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 563.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 563.10 Td (e have agreements with every major automaker \(OEMs\) to of) Tj ET Q q 0 0 0 rg BT 339.58 563.10 Td (fer satellite radio in their vehicles, through which we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (acquire the majority of our subscribers. ) Tj ET Q q 0 0 0 rg BT 208.99 551.10 Td (W) Tj ET Q q 0 0 0 rg BT 217.63 551.10 Td (e also acquire subscribers through marketing to owners and lessees of previously ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (owned vehicles that include factory-installed satellite radios that are not currently subscribing to our services. Our satellite ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.10 Td (radios are primarily distributed through automakers, retailers, and our website. Satellite radio services are also of) Tj ET Q q 0 0 0 rg BT 503.34 527.10 Td (fered to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.10 Td (customers of certain rental car companies.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 491.10 Td (Our primary source of revenue is subscription fees, with most of our customers subscribing to annual, semi-annual, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (quarterly or monthly plans.) Tj ET Q q 0 0 0 rg BT 163.19 479.10 Td (W) Tj ET Q q 0 0 0 rg BT 171.82 479.10 Td (e of) Tj ET Q q 0 0 0 rg BT 186.91 479.10 Td (fer discounts for prepaid, longer) Tj ET Q q 0 0 0 rg BT 315.28 479.10 Td (-term subscription plans, as well as a multiple subscription ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (discount.) Tj ET Q q 0 0 0 rg BT 90.71 467.10 Td (W) Tj ET Q q 0 0 0 rg BT 99.34 467.10 Td (e also derive revenue from activation and other fees, the sale of advertising on select non-music channels, the direct ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (sale of satellite radios and accessories, and other ancillary services, such as our weather) Tj ET Q q 0 0 0 rg BT 399.24 455.10 Td (, traf) Tj ET Q q 0 0 0 rg BT 417.93 455.10 Td (fic and data services.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 431.10 Td (In many cases, a subscription to our radio services is included with the purchase of new or previously owned vehicles. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (The length of these subscriptions varies but is typically ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.51 419.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.50 419.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.28 419.10 Td (twelve months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.88 419.10 Td (.) Tj ET Q q 0 0 0 rg BT 371.20 419.10 Td (W) Tj ET Q q 0 0 0 rg BT 379.84 419.10 Td (e receive payments for these subscriptions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (from certain automakers.) Tj ET Q q 0 0 0 rg BT 154.55 407.10 Td (W) Tj ET Q q 0 0 0 rg BT 163.19 407.10 Td (e also reimburse various automakers for certain costs associated with satellite radios installed in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (new vehicles and pay revenue share to various automakers. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 371.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.94 371.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.77 371.10 Td (, Liberty Media Corporation \(Liberty Media\) beneficially owned, directly and indirectly) Tj ET Q q 0 0 0 rg BT 517.11 371.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 359.10 Td (70%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.09 359.10 Td ( of the outstanding shares of Holdings' common stock.) Tj ET Q q 0 0 0 rg BT 350.14 359.10 Td (As a result, Holdings is a controlled company for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.10 Td (the purposes of the NASDAQ corporate governance requirements.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.00 321.60 Td (Basis of Presentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 305.10 Td (The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.10 Td (accepted accounting principles \(GAAP\). Certain numbers in our prior period consolidated financial statements and footnotes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.10 Td (have been reclassified or consolidated to conform to our current period presentation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 257.10 Td (The unaudited consolidated financial statements for Sirius XM for the quarterly period ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.22 257.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.05 257.10 Td ( are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.10 Td (essentially identical to the unaudited consolidated financial statements included in Holdings' Form 10-Q for the quarterly period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 233.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 233.10 Td (, filed with the SEC on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.87 233.10 Td (July 25, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.04 233.10 Td (, with the following exceptions: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 209.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 209.10 Td (As a result of our corporate reor) Tj ET Q q 0 0 0 rg BT 213.60 209.10 Td (ganization ef) Tj ET Q q 0 0 0 rg BT 265.34 209.10 Td (fective November 15, 2013, all of the outstanding shares of Sirius XM's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 197.10 Td (common stock were converted, on a share for share basis, into identical shares of common stock of Holdings and all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 185.10 Td (equity-related transactions, including repurchases of Holdings' common stock, dividend payments on shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 173.10 Td (Holdings' common stock, the issuance of equity related to stock-based compensation to Sirius XM employees, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 161.10 Td (Holdings' directors and third parties and the issuance of Holdings' common stock related to the recapitalization of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 149.10 Td (Sirius XM Canada have been reported as related party transactions within Sirius XM's unaudited consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 137.10 Td (financial statements. Refer to Note 9 for additional information related to related party transactions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 113.10 Td (All significant intercompany transactions have been eliminated in consolidation. In the opinion of our management, all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 101.10 Td (normal recurring adjustments necessary for a fair presentation of our unaudited consolidated financial statements as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.45 101.10 Td (June30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 89.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 89.10 Td ( and for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.82 89.10 Td (three and six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.86 89.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.73 89.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.56 89.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.00 89.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.00 89.10 Td ( have been made. Interim results are not necessarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 77.10 Td (indicative of the results that may be expected for a full year) Tj ET Q q 0 0 0 rg BT 286.91 77.10 Td (. ) Tj ET Q q 0 0 0 rg BT 294.23 77.10 Td (This Quarterly Report should be read together with our ) Tj ET Q q 0 0 0 rg BT 516.67 77.10 Td (Annual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 65.10 Td (Report for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.18 65.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.76 65.10 Td (, which is available on our website at http://investor) Tj ET Q q 0 0 0 rg BT 439.11 65.10 Td (.siriusxm.com/investor) Tj ET Q q 0 0 0 rg BT 530.57 65.10 Td (-) Tj ET Q endstream endobj 19 0 obj <>] /Rotate 0 /Contents 20 0 R>> endobj 20 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 760.60 Td (SIRIUS XM RADIO INC. ) Tj ET Q q 0 0 0 rg BT 315.43 760.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.05 748.60 Td (\(a wholly-owned subsidiary of Sirius XM Holdings Inc.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.60 736.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.82 736.60 Td (T) Tj ET Q q 0 0 0 rg BT 191.31 736.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.41 736.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.59 736.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.58 736.60 Td (A) Tj ET Q q 0 0 0 rg BT 361.06 736.60 Td (TEMENTS - Continued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.35 724.60 Td (\(UNAUDITED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.75 712.60 Td (\(Dollars and shar) Tj ET Q q 0 0 0 rg BT 252.02 712.60 Td (es in thousands, except per) Tj ET Q q 0 0 0 rg BT 366.02 712.60 Td ( shar) Tj ET Q q 0 0 0 rg BT 387.23 712.60 Td (e amounts\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (overview/default.aspx#dividend-tab2, and with Holdings) Tj ET Q q 0 0 0 rg BT 280.10 695.10 Td ( ) Tj ET Q q 0 0 0 rg BT 282.04 695.10 Td (Annual Report on Form 10-K for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.38 695.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.97 695.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (which was filed with the SEC on January 31, 2018.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 659.10 Td (Public companies, including our parent Holdings, are required to disclose certain information about their reportable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (operating segments. Operating segments are defined as significant components of an enterprise for which separate financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (information is available and is evaluated on a regular basis by the chief operating decision maker in deciding how to allocate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (resources to an individual segment and in assessing performance of the segment. ) Tj ET Q q 0 0 0 rg BT 374.50 623.10 Td (W) Tj ET Q q 0 0 0 rg BT 383.14 623.10 Td (e have determined that we have one ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (reportable segment as our chief operating decision maker) Tj ET Q q 0 0 0 rg BT 278.18 611.10 Td (, our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 376.58 611.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 394.49 611.10 Td (, assesses performance and allocates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (resources based on the consolidated results of operations of our business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 575.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 575.10 Td (e have evaluated events subsequent to the balance sheet date and prior to the furnishing of this Quarterly Report for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (three and six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.54 563.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.42 563.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.25 563.10 Td ( and have determined that no events have occurred that would require adjustment to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (our unaudited consolidated financial statements.For a discussion of subsequent events that do not require adjustment to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (unaudited consolidated financial statements refer to Note 15.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 513.60 Td (Use of Estimates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 495.60 Td (The preparation of financial statements in conformity with GAAP) Tj ET Q q 0 0 0 rg BT 339.95 495.60 Td ( requires management to make estimates and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 483.60 Td (assumptions that af) Tj ET Q q 0 0 0 rg BT 126.53 483.60 Td (fect the amounts reported in the financial statements and footnotes.Estimates, by their nature, are based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 471.60 Td (judgment and available information.) Tj ET Q q 0 0 0 rg BT 199.46 471.60 Td (Actual results could dif) Tj ET Q q 0 0 0 rg BT 292.87 471.60 Td (fer materially from those estimates.Significant estimates inherent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 459.60 Td (in the preparation of the accompanying unaudited consolidated financial statements include asset impairment, depreciable lives ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 447.60 Td (of our satellites, share-based payment expense, and income taxes.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 423.60 Td (\(2\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 423.60 Td (Summary of Significant ) Tj ET Q q 0 0 0 rg BT 180.12 423.60 Td (Accounting Policies) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 405.60 Td (Fair V) Tj ET Q q 0 0 0 rg BT 93.90 405.60 Td (alue Measurements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 387.60 Td (For assets and liabilities required to be reported at fair value, GAAP) Tj ET Q q 0 0 0 rg BT 349.83 387.60 Td ( provides a hierarchy that prioritizes inputs to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 375.60 Td (valuation techniques used to measure fair value into three broad levels. Level 1 inputs are based on unadjusted quoted prices in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 363.60 Td (active markets for identical instruments. Level 2 inputs are inputs, other than quoted market prices included within Level 1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 351.60 Td (that are observable for the asset or liability) Tj ET Q q 0 0 0 rg BT 219.62 351.60 Td (, either directly or indirectly) Tj ET Q q 0 0 0 rg BT 331.43 351.60 Td (. Level 3 inputs are unobservable inputs for the asset or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 339.60 Td (liability) Tj ET Q q 0 0 0 rg BT 79.96 339.60 Td (. ) Tj ET Q q 0 0 0 rg BT 86.91 339.60 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.35 339.60 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.18 339.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.62 339.60 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.20 339.60 Td (, the carrying amounts of cash and cash equivalents, receivables, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 327.60 Td (accounts payable approximated fair value due to the short-term nature of these instruments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 303.60 Td (Our assets and liabilities measured at fair value were as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 256.10 142.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 191.00 256.10 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 256.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 235.00 256.10 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 256.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.00 256.10 39.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 256.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.00 256.10 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 256.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 256.10 39.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 256.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 256.10 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 256.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 256.10 39.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 256.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 256.10 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 221.10 142.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 191.00 221.10 40.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 231.00 221.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 235.00 221.10 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 221.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 285.00 221.10 39.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 221.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.00 221.10 47.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 221.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 221.10 39.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 221.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 221.10 46.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.00 221.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 221.10 39.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 221.10 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.00 221.10 47.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191 279.1 m 231 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231 279.1 m 235 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 235 279.1 m 281 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281 279.1 m 285 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 279.1 m 324 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 279.1 m 328 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 279.1 m 375 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 279.1 m 418 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 279.1 m 422 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 279.1 m 468 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 279.1 m 472 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 279.1 m 511 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 279.1 m 515 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 279.1 m 562 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191 279.1 m 231 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191 256.1 m 231 256.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231 279.1 m 235 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 235 279.1 m 281 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 235 256.1 m 281 256.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281 279.1 m 285 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 279.1 m 324 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 256.1 m 324 256.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 279.1 m 328 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 279.1 m 375 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 256.1 m 375 256.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 279.1 m 418 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 256.1 m 418 256.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 279.1 m 422 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 279.1 m 468 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 256.1 m 468 256.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 279.1 m 472 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 279.1 m 511 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 256.1 m 511 256.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 279.1 m 515 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 279.1 m 562 279.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 256.1 m 562 256.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191 256.1 m 231 256.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 235 256.1 m 281 256.1 l s BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.50 283.56 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 256.35 283.55 Td (June 30, 2018) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 433.70 283.55 Td (December) Tj ET Q q 0 0 0 rg BT 472.51 283.55 Td ( 31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 51.50 260.56 Td () Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 196.60 260.55 Td (Level 1) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 243.60 260.55 Td (Level2) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 290.10 260.55 Td (Level 3) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 331.85 269.55 Td (T) Tj ET Q q 0 0 0 rg BT 337.03 269.55 Td (otalFair) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 340.15 260.55 Td (V) Tj ET Q q 0 0 0 rg BT 345.82 260.55 Td (alue) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 384.10 260.55 Td (Level 1) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 430.60 260.55 Td (Level2) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 477.10 260.55 Td (Level 3) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 518.85 269.55 Td (T) Tj ET Q q 0 0 0 rg BT 524.03 269.55 Td (otalFair) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 527.15 260.55 Td (V) Tj ET Q q 0 0 0 rg BT 532.82 260.55 Td (alue) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 51.50 246.55 Td (Assets:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 193.50 246.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 237.50 246.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 287.50 246.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.50 246.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.50 246.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.50 246.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.50 246.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.50 246.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.50 233.36 Td (Pandora Media, Inc. \(Pandora\) - ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.50 224.36 Td (investment ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 105.24 228.44 Td (\(a\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 218.50 225.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 237.50 225.56 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 248.25 225.56 Td (597,921) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 311.50 225.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.50 225.56 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 342.25 225.56 Td (597,921) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.50 225.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.50 225.56 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 435.25 225.56 Td (480,472) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 498.50 225.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.50 225.56 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.25 225.56 Td (480,472) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 57.50 211.55 Td (Liabilities:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 193.50 211.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 237.50 211.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 287.50 211.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.50 211.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.50 211.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.50 211.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 474.50 211.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.50 211.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 63.50 197.56 Td (Debt ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 83.24 201.64 Td (\(b\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 218.50 197.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 237.50 197.56 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 241.50 197.56 Td (6,342,699) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 311.50 197.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.50 197.56 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.50 197.56 Td (6,342,699) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.50 197.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.50 197.56 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 428.50 197.56 Td (6,987,473) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 498.50 197.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 517.50 197.56 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 522.50 197.56 Td (6,987,473) Tj ET Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 179.80 Td (\(a\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 179.80 Td (During the year ended December 31, 2017, we completed a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 292.92 179.80 Td ($480,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 326.67 179.80 Td ( investment in Pandora. ) Tj ET Q q 0 0 0 rg BT 415.99 179.80 Td (W) Tj ET Q q 0 0 0 rg BT 423.76 179.80 Td (e have elected the fair value option to ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 169.00 Td (account for this investment. Refer to Note 9 for information on this transaction. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 158.20 Td (\(b\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 158.20 Td (The fair value for non-publicly traded debt is based upon estimates from a market maker and brokerage firm. Refer to Note 10 for ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 147.40 Td (information related to the carrying value of our debt as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 285.68 147.40 Td (June30, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.92 147.40 Td ( and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 353.42 147.40 Td (December31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.14 147.40 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.00 129.40 Td (Accumulated Other Comprehensive Income \(Loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 111.40 Td (Accumulated other comprehensive income of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.15 111.40 Td ($4,594) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.65 111.40 Td (was primarily comprised of the cumulative foreign currency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 99.40 Td (translation adjustments related to our investment in and loan to Sirius XM Canada Holdings Inc. \(Sirius XM Canada\) \(refer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 87.40 Td (to Note 9 for additional information\). During the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.46 87.40 Td (three and six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.50 87.40 Td ( ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.38 87.40 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.21 87.40 Td (, we recorded a foreign currency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 75.40 Td (translation adjustment loss of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.49 75.40 Td ($8,242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.99 75.40 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.42 75.40 Td ($17,826) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.92 75.40 Td ( net of tax of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.52 75.40 Td ($2,663) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.02 75.40 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.46 75.40 Td ($5,735) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.96 75.40 Td (, respectively) Tj ET Q q 0 0 0 rg BT 429.62 75.40 Td (. In addition, we reclassified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 63.40 Td (stranded tax ef) Tj ET Q q 0 0 0 rg BT 108.18 63.40 Td (fects of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.39 63.40 Td ($4,013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.89 63.40 Td ( related to the adoption of ) Tj ET Q q 0 0 0 rg BT 272.86 63.40 Td (Accounting Standards Update \("ASU"\) 2018-02, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 470.99 63.40 Td (Income Statement - ) Tj ET Q endstream endobj 21 0 obj <>] /Rotate 0 /Contents 22 0 R>> endobj 22 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 760.60 Td (SIRIUS XM RADIO INC. ) Tj ET Q q 0 0 0 rg BT 315.43 760.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.05 748.60 Td (\(a wholly-owned subsidiary of Sirius XM Holdings Inc.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.60 736.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.82 736.60 Td (T) Tj ET Q q 0 0 0 rg BT 191.31 736.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.41 736.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.59 736.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.58 736.60 Td (A) Tj ET Q q 0 0 0 rg BT 361.06 736.60 Td (TEMENTS - Continued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.35 724.60 Td (\(UNAUDITED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.75 712.60 Td (\(Dollars and shar) Tj ET Q q 0 0 0 rg BT 252.02 712.60 Td (es in thousands, except per) Tj ET Q q 0 0 0 rg BT 366.02 712.60 Td ( shar) Tj ET Q q 0 0 0 rg BT 387.23 712.60 Td (e amounts\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (9) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (Reporting Compr) Tj ET Q q 0 0 0 rg BT 119.41 695.10 Td (ehensive Income \(T) Tj ET Q q 0 0 0 rg BT 196.23 695.10 Td (opic 220\): Reclassification of Certain T) Tj ET Q q 0 0 0 rg BT 354.47 695.10 Td (ax Effects fr) Tj ET Q q 0 0 0 rg BT 402.42 695.10 Td (om ) Tj ET Q q 0 0 0 rg BT 416.96 695.10 Td (Accumulated Other Compr) Tj ET Q q 0 0 0 rg BT 524.90 695.10 Td (ehensive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (Income,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.43 683.10 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.25 683.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.87 683.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.75 683.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.58 683.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 657.60 Td (Recent ) Tj ET Q q 0 0 0 rg BT 97.95 657.60 Td (Accounting Pronouncements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 633.60 Td (In June 2018, the Financial ) Tj ET Q q 0 0 0 rg BT 187.04 633.60 Td (Accounting Standards Board \(F) Tj ET Q q 0 0 0 rg BT 317.66 633.60 Td (ASB\) issued ) Tj ET Q q 0 0 0 rg BT 374.33 633.60 Td (ASU 2018-07, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 435.16 633.60 Td (Compensation-Stock ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 621.60 Td (Compensation \(T) Tj ET Q q 0 0 0 rg BT 117.75 621.60 Td (opic 718\): Impr) Tj ET Q q 0 0 0 rg BT 180.70 621.60 Td (ovements to Nonemployee Shar) Tj ET Q q 0 0 0 rg BT 306.13 621.60 Td (e-Based Payment ) Tj ET Q q 0 0 0 rg BT 378.14 621.60 Td (Accounting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.68 621.60 Td (, which simplifies the accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 609.60 Td (for share-based payments made to nonemployees so the accounting for such payments is substantially the same as those made ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 597.60 Td (to employees. Under this ) Tj ET Q q 0 0 0 rg BT 153.93 597.60 Td (ASU, share based awards to nonemployees will be measured at fair value on the grant date of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 585.60 Td (awards, entities will need to assess the probability of satisfying performance conditions if any are present, and awards will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 573.60 Td (continue to be classified according to ) Tj ET Q q 0 0 0 rg BT 200.56 573.60 Td (Accounting Standards Codification \(ASC\) 718 upon vesting which eliminates the need ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 561.60 Td (to reassess classification upon vesting, consistent with awards granted to employees. ) Tj ET Q q 0 0 0 rg BT 392.58 561.60 Td (This ) Tj ET Q q 0 0 0 rg BT 412.30 561.60 Td (ASU is ef) Tj ET Q q 0 0 0 rg BT 451.57 561.60 Td (fective for fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 549.60 Td (beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. ) Tj ET Q q 0 0 0 rg BT 533.64 549.60 Td (W) Tj ET Q q 0 0 0 rg BT 542.27 549.60 Td (e are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 537.60 Td (in the process of evaluating the impact of adoption of this ) Tj ET Q q 0 0 0 rg BT 281.95 537.60 Td (ASU on our consolidated financial statements.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 513.60 Td (In February 2016, F) Tj ET Q q 0 0 0 rg BT 155.75 513.60 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 204.65 513.60 Td (ASU 2016-02, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 265.48 513.60 Td (Leases \(T) Tj ET Q q 0 0 0 rg BT 303.18 513.60 Td (opic 842\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.23 513.60 Td (. ) Tj ET Q q 0 0 0 rg BT 346.05 513.60 Td (This ) Tj ET Q q 0 0 0 rg BT 365.77 513.60 Td (ASU requires a company to recognize lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 501.60 Td (assets and liabilities arising from operating leases in the statement of financial position. ) Tj ET Q q 0 0 0 rg BT 401.45 501.60 Td (This ) Tj ET Q q 0 0 0 rg BT 421.18 501.60 Td (ASU does not significantly change ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 489.60 Td (the previous lease guidance for how a lessee should recognize the recognition, measurement, and presentation of expenses and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 477.60 Td (cash flows arising from a lease. ) Tj ET Q q 0 0 0 rg BT 177.52 477.60 Td (Additionally) Tj ET Q q 0 0 0 rg BT 227.42 477.60 Td (, the criteria for classifying a finance lease versus an operating lease are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 465.60 Td (substantially the same as the previous guidance. ) Tj ET Q q 0 0 0 rg BT 243.71 465.60 Td (This ) Tj ET Q q 0 0 0 rg BT 263.44 465.60 Td (ASU is ef) Tj ET Q q 0 0 0 rg BT 302.70 465.60 Td (fective for fiscal years beginning after December 15, 2018, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 453.60 Td (including interim periods within those fiscal years, and early adoption is permitted. ) Tj ET Q q 0 0 0 rg BT 384.24 453.60 Td (The F) Tj ET Q q 0 0 0 rg BT 407.11 453.60 Td (ASB recently issued an exposure draft ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 441.60 Td (amending certain aspects of the new leasing standard. ) Tj ET Q q 0 0 0 rg BT 269.24 441.60 Td (The proposed amendment allows adoption of the standard as of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 429.60 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 429.60 Td (fective date without restating prior periods. ) Tj ET Q q 0 0 0 rg BT 234.63 429.60 Td (W) Tj ET Q q 0 0 0 rg BT 243.27 429.60 Td (e plan to adopt this ) Tj ET Q q 0 0 0 rg BT 321.32 429.60 Td (ASU on January 1, 2019. ) Tj ET Q q 0 0 0 rg BT 427.24 429.60 Td (W) Tj ET Q q 0 0 0 rg BT 435.88 429.60 Td (e expect the adoption of ) Tj ET Q q 0 0 0 rg BT 533.90 429.60 Td (ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 417.60 Td (2016-02 will result in the recognition of right-of-use assets and lease liabilities on our consolidated balance sheets for operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 405.60 Td (leases.) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 76.50 381.60 Td (Recently ) Tj ET Q q 0 0 0 rg BT 114.17 381.60 Td (Adopted ) Tj ET Q q 0 0 0 rg BT 150.19 381.60 Td (Accounting Policies) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 76.50 357.60 Td (ASU 2014-09, Revenue - Revenue fr) Tj ET Q q 0 0 0 rg BT 220.51 357.60 Td (om Contracts with Customers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.69 357.60 Td (. In May 2014, the F) Tj ET Q q 0 0 0 rg BT 423.39 357.60 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 472.29 357.60 Td (ASU 2014-09 which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 345.60 Td (requires entities to recognize revenues when control of the promised goods or services is transferred to customers at an amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 333.60 Td (that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. In addition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 321.60 Td (the standard requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 309.60 Td (with customers. ) Tj ET Q q 0 0 0 rg BT 117.64 309.60 Td (W) Tj ET Q q 0 0 0 rg BT 126.28 309.60 Td (e adopted ) Tj ET Q q 0 0 0 rg BT 166.82 309.60 Td (ASU 2014-09, and all related amendments, which established ) Tj ET Q q 0 0 0 rg BT 415.66 309.60 Td (ASC ) Tj ET Q q 0 0 0 rg BT 437.43 309.60 Td (T) Tj ET Q q 0 0 0 rg BT 442.84 309.60 Td (opic 606 \(the "new revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 297.60 Td (standard"\), ef) Tj ET Q q 0 0 0 rg BT 103.38 297.60 Td (fective as of January 1, 2018. ) Tj ET Q q 0 0 0 rg BT 225.66 297.60 Td (W) Tj ET Q q 0 0 0 rg BT 234.29 297.60 Td (e adopted the new revenue standard using the modified retrospective method by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 285.60 Td (recognizing the cumulative ef) Tj ET Q q 0 0 0 rg BT 168.44 285.60 Td (fect of initially applying the new revenue standard to all non-completed contracts as of January 1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 273.60 Td (2018 as an adjustment to opening ) Tj ET Q q 0 0 0 rg BT 185.59 273.60 Td (Accumulated deficit in the period of adoption. Results for reporting periods beginning after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 261.60 Td (January 1, 2018 are presented under the new revenue standard, while prior period amounts are not adjusted and continue to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 249.60 Td (reported in accordance with our historic accounting under ) Tj ET Q q 0 0 0 rg BT 283.12 249.60 Td (T) Tj ET Q q 0 0 0 rg BT 288.53 249.60 Td (opic 605.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 225.60 Td (The new revenue standard primarily impacts how we account for revenue share payments and also has other immaterial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 213.60 Td (impacts.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 189.60 Td (Revenue Share - Paid ) Tj ET Q q 0 0 0 rg BT 165.18 189.60 Td (T) Tj ET Q q 0 0 0 rg BT 170.94 189.60 Td (rials) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 165.60 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 165.60 Td (e previously recorded revenue share related to paid trials as Revenue share and royalties expense. Under the new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 153.60 Td (revenue standard, we have recorded these revenue share payments as a reduction to revenue as the payments do not transfer a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 141.60 Td (distinct good or service to us. Prior to the adoption, we recognized revenue share related to paid trial subscriptions as the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 129.60 Td (Current portion of deferred revenue. Under the new revenue standard, we reclassified the revenue share related to paid trial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 117.60 Td (subscriptions existing as of the date of adoption from Current portion of deferred revenue to ) Tj ET Q q 0 0 0 rg BT 419.68 117.60 Td (Accounts payable and accrued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 105.60 Td (expenses. For new paid trial subscriptions, the net amount of the paid trial subscription will be recorded as deferred revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 93.60 Td (and the portion of revenue share will be recorded to ) Tj ET Q q 0 0 0 rg BT 258.31 93.60 Td (Accounts payable and accrued expenses.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 69.60 Td (Other Impacts) Tj ET Q endstream endobj 23 0 obj <>] /Rotate 0 /Contents 24 0 R>> endobj 24 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 760.60 Td (SIRIUS XM RADIO INC. ) Tj ET Q q 0 0 0 rg BT 315.43 760.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.05 748.60 Td (\(a wholly-owned subsidiary of Sirius XM Holdings Inc.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.60 736.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.82 736.60 Td (T) Tj ET Q q 0 0 0 rg BT 191.31 736.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.41 736.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.59 736.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.58 736.60 Td (A) Tj ET Q q 0 0 0 rg BT 361.06 736.60 Td (TEMENTS - Continued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.35 724.60 Td (\(UNAUDITED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.75 712.60 Td (\(Dollars and shar) Tj ET Q q 0 0 0 rg BT 252.02 712.60 Td (es in thousands, except per) Tj ET Q q 0 0 0 rg BT 366.02 712.60 Td ( shar) Tj ET Q q 0 0 0 rg BT 387.23 712.60 Td (e amounts\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 695.10 Td (Other impacts of the new revenue standard include:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 671.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 671.10 Td (Activation fees were previously recognized over the expected subscriber life using the straight-line method. Under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 659.10 Td (new revenue standard, the activation fees have been recognized over a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.25 659.10 Td (one month) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.75 659.10 Td ( period from activation as the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 647.10 Td (activation fees are non-refundable and they do not convey a material right. ) Tj ET Q q 0 0 0 rg BT 388.16 647.10 Td (As of January 1, 2018, we reduced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 635.10 Td (deferred revenue related to activation fees of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.79 635.10 Td ($8,260) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.29 635.10 Td (, net of tax, to ) Tj ET Q q 0 0 0 rg BT 351.78 635.10 Td (Accumulated deficit.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 611.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 611.10 Td (Loyalty payments to OEMs were previously expensed when incurred as Subscriber acquisition costs. Under the new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 599.10 Td (revenue standard, these costs have been capitalized in Prepaid expenses and other current assets as costs to obtain a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 587.10 Td (contract and these costs will be amortized to Subscriber acquisition costs over an average self-pay subscriber life of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 575.10 Td (that OEM. ) Tj ET Q q 0 0 0 rg BT 132.17 575.10 Td (As of January 1, 2018, we capitalized previously expensed loyalty payments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.53 575.10 Td ($10,156) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.03 575.10 Td (, net of tax, to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 563.10 Td (Prepaid expenses and other current assets by reducing ) Tj ET Q q 0 0 0 rg BT 303.21 563.10 Td (Accumulated deficit.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 539.10 Td (These changes do not have a material impact to our financial statements.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 76.50 515.10 Td (ASU 2018-02, Income Statement - Reporting Compr) Tj ET Q q 0 0 0 rg BT 285.26 515.10 Td (ehensive Income \(T) Tj ET Q q 0 0 0 rg BT 362.09 515.10 Td (opic 220\): Reclassification of Certain T) Tj ET Q q 0 0 0 rg BT 520.32 515.10 Td (ax Effects ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 503.10 Td (fr) Tj ET Q q 0 0 0 rg BT 55.80 503.10 Td (om ) Tj ET Q q 0 0 0 rg BT 70.34 503.10 Td (Accumulated Other Compr) Tj ET Q q 0 0 0 rg BT 178.28 503.10 Td (ehensive Income.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.14 503.10 Td ( In February 2018, the F) Tj ET Q q 0 0 0 rg BT 346.10 503.10 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 395.00 503.10 Td (ASU 2018-02 to amend its standard on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (comprehensive income to provide an option for an entity to reclassify the stranded tax ef) Tj ET Q q 0 0 0 rg BT 403.65 491.10 Td (fects of the ) Tj ET Q q 0 0 0 rg BT 450.39 491.10 Td (T) Tj ET Q q 0 0 0 rg BT 455.80 491.10 Td (ax Cuts and Jobs ) Tj ET Q q 0 0 0 rg BT 525.25 491.10 Td (Act \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (T) Tj ET Q q 0 0 0 rg BT 59.35 479.10 Td (ax ) Tj ET Q q 0 0 0 rg BT 70.74 479.10 Td (Act\) that was passed in December 2017 from accumulated other comprehensive income \(AOCI\) directly to retained ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (earnings. ) Tj ET Q q 0 0 0 rg BT 88.20 467.10 Td (The stranded tax ef) Tj ET Q q 0 0 0 rg BT 164.92 467.10 Td (fects result from the remeasurement of deferred tax assets and liabilities which were originally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (recorded in comprehensive income but whose remeasurement is reflected in the income statement. ) Tj ET Q q 0 0 0 rg BT 448.34 455.10 Td (The guidance is ef) Tj ET Q q 0 0 0 rg BT 521.74 455.10 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (for interim and fiscal years beginning after December 15, 2018, with early adoption permitted. ) Tj ET Q q 0 0 0 rg BT 432.53 443.10 Td (W) Tj ET Q q 0 0 0 rg BT 441.17 443.10 Td (e elected to adopt ) Tj ET Q q 0 0 0 rg BT 513.36 443.10 Td (ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (2018-02 ef) Tj ET Q q 0 0 0 rg BT 92.92 431.10 Td (fective January 1, 2018 and reclassified the stranded tax ef) Tj ET Q q 0 0 0 rg BT 327.09 431.10 Td (fects due to the ) Tj ET Q q 0 0 0 rg BT 390.22 431.10 Td (T) Tj ET Q q 0 0 0 rg BT 395.63 431.10 Td (ax ) Tj ET Q q 0 0 0 rg BT 407.01 431.10 Td (Act of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.78 431.10 Td ($4,013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.28 431.10 Td ( related to the currency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (translation adjustment from our investment balance and note receivable with Sirius XM Canada from ) Tj ET Q q 0 0 0 rg BT 456.61 419.10 Td (AOCI to ) Tj ET Q q 0 0 0 rg BT 493.28 419.10 Td (Accumulated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (deficit.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.54 407.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 383.10 Td (The cumulative ef) Tj ET Q q 0 0 0 rg BT 149.06 383.10 Td (fect of the changes made to our consolidated balance sheet as of January 1, 2018 for the adoption of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (ASU 2014-09 and ) Tj ET Q q 0 0 0 rg BT 124.22 371.10 Td (ASU 2018-02 are included in the table below) Tj ET Q q 0 0 0 rg BT 304.92 371.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 312.60 190.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 239.00 312.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 312.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 312.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 312.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 312.60 78.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 312.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 312.60 79.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 282.60 190.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 239.00 282.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 282.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 282.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 282.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 282.60 78.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 282.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 282.60 79.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 252.60 190.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 239.00 252.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 252.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 252.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 252.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 252.60 78.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 252.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 252.60 79.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 222.60 190.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 239.00 222.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 222.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 222.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 222.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 222.60 78.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 222.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 222.60 79.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 192.60 190.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 239.00 192.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 192.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 192.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 192.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 192.60 78.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 192.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 192.60 79.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 162.60 190.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 239.00 162.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 162.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 162.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 162.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 162.60 78.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 162.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 162.60 79.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 132.60 190.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 239.00 132.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 132.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 132.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 132.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 132.60 78.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 132.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 132.60 79.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239 327.6 m 316 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 327.6 m 397 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 327.6 m 479 327.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 327.6 m 562 327.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 259.10 339.83 Td (Balance at) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 244.75 331.83 Td (December) Tj ET Q q 0 0 0 rg BT 279.25 331.83 Td ( 31, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 324.00 339.83 Td (Adjustments Due to) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.65 331.83 Td (ASU 2014-09) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.50 339.83 Td (Adjustments Due to) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 417.15 331.83 Td (ASU 2018-02) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.10 339.83 Td (Balance at) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 494.75 331.83 Td (January 1, 2018) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 317.28 Td (Balance Sheet) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 51.5 300.71259765625 m 78.1650390625 300.71259765625 l s q 0 0 0 rg BT 51.50 302.28 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 287.27 Td (Prepaid expenses and other current assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.50 287.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.65 287.27 Td (129,669) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.50 287.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.65 287.27 Td (8,262) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.50 287.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 287.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.50 287.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 287.27 Td (137,931) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 272.27 Td (Other long-term assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.65 272.27 Td (1) Tj ET Q q 0 0 0 rg BT 284.65 272.27 Td (18,671) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.65 272.27 Td (2,576) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 272.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 272.27 Td (121,247) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 257.27 Td (Deferred tax assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.65 257.27 Td (505,528) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.30 257.32 Td (\(5,915) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 257.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 257.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 257.27 Td (499,613) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 51.5 225.71259765625007 m 97.61328125 225.71259765625007 l s q 0 0 0 rg BT 51.50 227.28 Td (Liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 212.27 Td (Accounts payable and accrued expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.65 212.27 Td (768,077) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 212.27 Td (32,399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 212.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 212.27 Td (800,476) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 197.27 Td (Current portion of deferred revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.15 197.27 Td (1,881,825) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.30 197.32 Td (\(41,902) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 197.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 197.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 197.27 Td (1,839,923) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 182.27 Td (Deferred revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.65 182.27 Td (174,579) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.30 182.32 Td (\(3,990) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 182.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 182.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 182.27 Td (170,589) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 51.5 150.71259765624995 m 83.7314453125 150.71259765624995 l s q 0 0 0 rg BT 51.50 152.28 Td (Equity:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 137.27 Td (Accumulated deficit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.80 137.32 Td (\(3,635,628) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.15 137.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 137.27 Td (18,416) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.30 137.32 Td (\(4,013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 137.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.80 137.32 Td (\(3,621,225) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 137.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 122.27 Td (AOCI, net of tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.65 122.27 Td (18,407) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.15 122.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 122.27 Td (4,013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 122.27 Td (22,420) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 94.10 Td (The following table illustrates the impact of adopting ) Tj ET Q q 0 0 0 rg BT 291.45 94.10 Td (ASU 2014-09 on our unaudited consolidated statement of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (comprehensive income. ) Tj ET Q q 0 0 0 rg BT 149.29 82.10 Td (The adoption of ) Tj ET Q q 0 0 0 rg BT 215.11 82.10 Td (ASU 2018-02 did not impact our unaudited consolidated statement of comprehensive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (income.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 25 0 obj <>] /Rotate 0 /Contents 26 0 R>> endobj 26 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 760.60 Td (SIRIUS XM RADIO INC. ) Tj ET Q q 0 0 0 rg BT 315.43 760.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.05 748.60 Td (\(a wholly-owned subsidiary of Sirius XM Holdings Inc.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.60 736.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.82 736.60 Td (T) Tj ET Q q 0 0 0 rg BT 191.31 736.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.41 736.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.59 736.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.58 736.60 Td (A) Tj ET Q q 0 0 0 rg BT 361.06 736.60 Td (TEMENTS - Continued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.35 724.60 Td (\(UNAUDITED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.75 712.60 Td (\(Dollars and shar) Tj ET Q q 0 0 0 rg BT 252.02 712.60 Td (es in thousands, except per) Tj ET Q q 0 0 0 rg BT 366.02 712.60 Td ( shar) Tj ET Q q 0 0 0 rg BT 387.23 712.60 Td (e amounts\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.15 33.60 Td (1) Tj ET Q q 0 0 0 rg BT 305.78 33.60 Td (1) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 647.50 146.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 195.00 647.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.00 647.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 252.00 647.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.00 647.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.00 647.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 647.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 647.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 647.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 647.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 647.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 647.50 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 617.50 146.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 195.00 617.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.00 617.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 252.00 617.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.00 617.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.00 617.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 617.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 617.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 617.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 617.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 617.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 617.50 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 587.50 146.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 195.00 587.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.00 587.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 252.00 587.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.00 587.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.00 587.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 587.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 587.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 587.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 587.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 587.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 587.50 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 557.50 146.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 195.00 557.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.00 557.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 252.00 557.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.00 557.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.00 557.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 557.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 557.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 557.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 557.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 557.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 557.50 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 527.50 146.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 195.00 527.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 248.00 527.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 252.00 527.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.00 527.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.00 527.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 527.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 527.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 527.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 527.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.00 527.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.00 527.50 67.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 195 688.5 m 248 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 248 688.5 m 252 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 252 688.5 m 305 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305 688.5 m 309 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309 688.5 m 377 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 688.5 m 434 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 688.5 m 438 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 688.5 m 491 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 688.5 m 495 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 688.5 m 562 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 195 661.5 m 248 661.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 252 661.5 m 305 661.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309 661.5 m 377 661.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 661.5 m 434 661.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 661.5 m 491 661.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 661.5 m 562 661.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 211.45 692.73 Td (For) Tj ET Q q 0 0 0 rg BT 223.82 692.73 Td ( the ) Tj ET Q q 0 0 0 rg BT 238.33 692.73 Td (Thr) Tj ET Q q 0 0 0 rg BT 251.53 692.73 Td (ee Months Ended June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.70 692.73 Td (For) Tj ET Q q 0 0 0 rg BT 414.07 692.73 Td ( the Six Months Ended June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 199.55 665.73 Td (As Reported) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 261.40 680.58 Td (Impact of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 261.95 672.58 Td (Adopting) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 255.65 664.58 Td (ASU 2014-09) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 312.30 680.58 Td (Balances ) Tj ET Q q 0 0 0 rg BT 344.38 680.58 Td (W) Tj ET Q q 0 0 0 rg BT 352.23 680.58 Td (ithout) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 313.35 672.58 Td (Adoption of ) Tj ET Q q 0 0 0 rg BT 355.58 672.58 Td (ASU) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 329.15 664.58 Td (2014-09) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 385.55 665.73 Td (As Reported) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.40 680.58 Td (Impact of ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.95 672.58 Td (Adopting ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 441.65 664.58 Td (ASU 2014-09) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.80 680.58 Td (Balances ) Tj ET Q q 0 0 0 rg BT 529.88 680.58 Td (W) Tj ET Q q 0 0 0 rg BT 537.73 680.58 Td (ithout ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.85 672.58 Td (Adoption of ) Tj ET Q q 0 0 0 rg BT 541.08 672.58 Td (ASU ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 514.65 664.58 Td (2014-09) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 652.18 Td (Income Statement) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 51.5 635.61259765625 m 92.0517578125 635.61259765625 l s q 0 0 0 rg BT 51.50 637.18 Td (Revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 622.17 Td (Subscriber revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.50 622.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.10 622.17 Td (1,138,962) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.50 622.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.65 622.17 Td (23,787) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.50 622.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.15 622.17 Td (1,162,749) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.50 622.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.10 622.17 Td (2,256,046) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.50 622.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 622.17 Td (48,179) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.50 622.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 622.17 Td (2,304,225) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 51.5 590.61259765625 m 90.953125 590.61259765625 l s q 0 0 0 rg BT 51.50 592.18 Td (Expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 577.17 Td (Revenue share and royalties) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.60 577.17 Td (404,284) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.65 577.17 Td (22,235) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 577.17 Td (426,519) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.60 577.17 Td (714,416) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 577.17 Td (44,304) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 577.17 Td (758,720) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 562.17 Td (Subscriber acquisition costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.60 562.17 Td (1) Tj ET Q q 0 0 0 rg BT 216.60 562.17 Td (19,778) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.15 562.17 Td (800) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 562.17 Td (120,578) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.60 562.17 Td (242,471) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 562.17 Td (1,845) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 562.17 Td (244,316) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 547.17 Td (Income tax expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.30 547.17 Td (\(70,570) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.15 547.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.80 547.17 Td (\(146) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.15 547.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.30 547.22 Td (\(70,716) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 547.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.30 547.22 Td (\(150,819) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.15 547.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.80 547.22 Td (\(418) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 547.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.30 547.22 Td (\(151,237) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 547.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 517.17 Td (Net Income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.50 517.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.60 517.17 Td (292,352) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.50 517.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.15 517.17 Td (606) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.50 517.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 517.17 Td (292,958) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.50 517.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.60 517.17 Td (581,793) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.50 517.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 517.17 Td (1,612) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.50 517.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 517.17 Td (583,405) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 489.00 Td (The adoption of the new revenue standard did not have a material impact on our unaudited consolidated balance sheet as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 477.00 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 477.00 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.16 477.00 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 76.50 453.00 Td (ASU 2016-18,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.16 453.00 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 135.66 453.00 Td (Statement of Cash Flows \(T) Tj ET Q q 0 0 0 rg BT 245.86 453.00 Td (opic 230\): Restricted Cash. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.84 453.00 Td (In November 2016, the F) Tj ET Q q 0 0 0 rg BT 460.91 453.00 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 509.81 453.00 Td (ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 441.00 Td (2016-18, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 87.83 441.00 Td (Statement of Cash Flows \(T) Tj ET Q q 0 0 0 rg BT 198.03 441.00 Td (opic 230\): Restricted Cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.51 441.00 Td (. ) Tj ET Q q 0 0 0 rg BT 312.83 441.00 Td (This ) Tj ET Q q 0 0 0 rg BT 332.55 441.00 Td (ASU updates the guidance related to the statement of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 429.00 Td (cash flows and requires that the statement include restricted cash with cash and cash equivalents when reconciling beginning ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 417.00 Td (and ending cash. ) Tj ET Q q 0 0 0 rg BT 121.24 417.00 Td (The guidance was ef) Tj ET Q q 0 0 0 rg BT 203.52 417.00 Td (fective for fiscal years beginning after December 15, 2017, including interim periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 405.00 Td (within that reporting period. ) Tj ET Q q 0 0 0 rg BT 167.07 405.00 Td (W) Tj ET Q q 0 0 0 rg BT 175.71 405.00 Td (e adopted this ) Tj ET Q q 0 0 0 rg BT 233.20 405.00 Td (ASU ef) Tj ET Q q 0 0 0 rg BT 263.29 405.00 Td (fective January 1, 2018. ) Tj ET Q q 0 0 0 rg BT 363.54 405.00 Td (As a result of the adoption, we have added ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 393.00 Td (restricted cash to the reconciliation of beginning and ending cash and cash equivalents and included a reconciliation of total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 381.00 Td (cash, cash equivalents and restricted cash to the balance sheet for each period presented in the unaudited consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 369.00 Td (statements of cash flows.) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 345.00 Td (\(3\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 345.00 Td (Revenues) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 321.00 Td (Adoption of the new r) Tj ET Q q 0 0 0 rg BT 169.65 321.00 Td (evenue standard) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 297.00 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 297.00 Td (e adopted the new revenue standard using the modified retrospective method by recognizing the cumulative ef) Tj ET Q q 0 0 0 rg BT 526.19 297.00 Td (fect of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 285.00 Td (initially applying the new revenue standard to all non-completed contracts as of January 1, 2018 as an adjustment to opening ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 273.00 Td (Accumulated deficit in the period of adoption.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.72 273.00 Td ( Results for reporting periods beginning after January 1, 2018 are presented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 261.00 Td (under the new revenue standard, while prior period amounts are not adjusted and continue to be reported in accordance with our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 249.00 Td (historic accounting under ) Tj ET Q q 0 0 0 rg BT 153.08 249.00 Td (ASC ) Tj ET Q q 0 0 0 rg BT 174.86 249.00 Td (T) Tj ET Q q 0 0 0 rg BT 180.27 249.00 Td (opic 605.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 225.00 Td (Disaggr) Tj ET Q q 0 0 0 rg BT 109.65 225.00 Td (egation of Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 201.00 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 201.00 Td (e disaggregate our revenues as shown in the unaudited consolidated statements of comprehensive income.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 177.00 Td (Natur) Tj ET Q q 0 0 0 rg BT 101.87 177.00 Td (e of goods and services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 153.00 Td (The following is a description of principal activities from which we generate our revenue, including from subscribers, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 141.00 Td (advertising, and sales of equipment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.35 141.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 117.00 Td (Subscription Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.54 117.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 93.00 Td (Subscription revenue consists primarily of subscription fees and other ancillary subscription based revenues. Revenue is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 81.00 Td (recognized on a straight line basis when the performance obligations to provide each service for the period are satisfied, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 69.00 Td (is over time as our subscription services are continuously transmitted and can be consumed by customers at any time. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 57.00 Td (Consumers purchasing or leasing a vehicle with a factory-installed satellite radio typically receive between a three and twelve ) Tj ET Q endstream endobj 27 0 obj <>] /Rotate 0 /Contents 28 0 R>> endobj 28 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 760.60 Td (SIRIUS XM RADIO INC. ) Tj ET Q q 0 0 0 rg BT 315.43 760.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.05 748.60 Td (\(a wholly-owned subsidiary of Sirius XM Holdings Inc.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.60 736.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.82 736.60 Td (T) Tj ET Q q 0 0 0 rg BT 191.31 736.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.41 736.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.59 736.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.58 736.60 Td (A) Tj ET Q q 0 0 0 rg BT 361.06 736.60 Td (TEMENTS - Continued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.35 724.60 Td (\(UNAUDITED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.75 712.60 Td (\(Dollars and shar) Tj ET Q q 0 0 0 rg BT 252.02 712.60 Td (es in thousands, except per) Tj ET Q q 0 0 0 rg BT 366.02 712.60 Td ( shar) Tj ET Q q 0 0 0 rg BT 387.23 712.60 Td (e amounts\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (month subscription to our service.In certain cases, the subscription fees for these consumers are prepaid by the applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (automaker) Tj ET Q q 0 0 0 rg BT 91.15 683.10 Td (. Prepaid subscription fees received from certain automakers or directly from consumers are recorded as deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (revenue and amortized to revenue ratably over the service period which commences upon sale and activation. ) Tj ET Q q 0 0 0 rg BT 492.10 671.10 Td (Activation fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (are recognized over one month as the activation fees are non-refundable and do not provide for a material right to the customer) Tj ET Q q 0 0 0 rg BT 556.80 659.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (There is no revenue recognized for unpaid trial subscriptions. In some cases we pay a loyalty fee to the OEM when we receive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (a certain amount of payments from self-pay customers acquired from that OEM. ) Tj ET Q q 0 0 0 rg BT 375.88 635.10 Td (These fees are considered incremental costs to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (obtain a contract and are, therefore, recognized as an asset and amortized to Subscriber acquisition costs over an average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (subscriber life of that OEM. Revenue share and loyalty fees paid to the OEM of) Tj ET Q q 0 0 0 rg BT 371.45 611.10 Td (fering a paid trial are accounted for as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (reduction of revenue as the payment does not provide a distinct good or service.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.40 599.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 575.10 Td (Advertising Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.20 575.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 551.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 551.10 Td (e recognize revenue from the sale of advertising as performance obligations are satisfied upon airing of the advertising; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (therefore, revenue is recognized at a point in time when each advertising spot is transmitted. ) Tj ET Q q 0 0 0 rg BT 422.71 539.10 Td (Agency fees are calculated based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.10 Td (on a stated percentage applied to gross billing revenue for our advertising inventory and are reported as a reduction of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.10 Td (advertising revenue.) Tj ET Q q 0 0 0 rg BT 135.03 515.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 184.93 515.10 Td (, we pay certain third parties a percentage of advertising revenue.) Tj ET Q q 0 0 0 rg BT 450.37 515.10 Td (Advertising revenue is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.10 Td (recorded gross of such revenue share payments as we control the advertising service, including the ability to establish pricing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (and we are primarily responsible for providing the service.) Tj ET Q q 0 0 0 rg BT 288.59 491.10 Td (Advertising revenue share payments are recorded to Revenue share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (and royalties during the period in which the advertising is transmitted.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.27 479.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 455.10 Td (Equipment Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.87 455.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 431.10 Td (Equipment revenue and royalties from the sale of satellite radios, components and accessories are recognized when the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (performance obligation is satisfied and control is transferred, which is generally upon shipment. Revenue is recognized net of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (discounts and rebates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 407.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 383.10 Td (Music Royalty Fee and Other Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.30 383.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 359.10 Td (Music Royalty Fee and Other Revenue primarily consists of U.S. music royalty fees \("MRF"\). ) Tj ET Q q 0 0 0 rg BT 458.87 359.10 Td (The related costs we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.10 Td (incur for the right to broadcast music and other programming are recorded as Revenue share and royalties expense.Fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 335.10 Td (received from subscribers for the MRF are recorded as deferred revenue and amortized to revenue ratably over the service ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.10 Td (period as the royalties relate to the subscription services which are continuously delivered to our customers.) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 299.10 Td (Deferr) Tj ET Q q 0 0 0 rg BT 104.63 299.10 Td (ed Revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 153.79 299.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 275.10 Td (Customers generally pay for the services in advance of the performance obligation and therefore these prepayments are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.10 Td (recorded as deferred revenue. ) Tj ET Q q 0 0 0 rg BT 172.58 263.10 Td (The deferred revenue is recognized as revenue in our unaudited consolidated statement of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.10 Td (comprehensive income as the services are provided. Changes in the liability balance during the period ended June 30, 2018 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.10 Td (was not materially impacted by other factors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.27 239.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 215.10 Td (T) Tj ET Q q 0 0 0 rg BT 82.43 215.10 Td (ransaction Price ) Tj ET Q q 0 0 0 rg BT 154.08 215.10 Td (Allocated to the Remaining Performance Obligations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.44 215.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 191.10 Td (As the majority of our contracts are one year or less, we have utilized the optional exemption under ) Tj ET Q q 0 0 0 rg BT 476.09 191.10 Td (ASC 606-10-50-14 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.10 Td (and will not disclose information about the remaining performance obligations for contracts which have original expected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.10 Td (durations of one year or less. ) Tj ET Q q 0 0 0 rg BT 169.47 167.10 Td (As of June 30, 2018, less than ten percent of our total deferred revenue balance related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.10 Td (contracts that extended beyond one year) Tj ET Q q 0 0 0 rg BT 209.71 155.10 Td (. ) Tj ET Q q 0 0 0 rg BT 217.03 155.10 Td (These contracts primarily include prepaid data trials which are typically provided for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.10 Td (three to five years as well as for self-pay customers who prepay for their audio subscriptions for up to three years in advance. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (These amounts will be recognized on a straight-line basis as our services are provided.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.50 131.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 107.10 Td (\(4\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 107.10 Td (Receivables, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 89.10 Td (Receivables, net, includes customer accounts receivable, receivables from distributors and other receivables.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.49 89.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 65.10 Td (Customer accounts receivable, net, includes receivables from our subscribers and other customers, including advertising, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 53.10 Td (and is stated at amounts due, net of an allowance for doubtful accounts. Our allowance for doubtful accounts is based upon our ) Tj ET Q endstream endobj 29 0 obj <>] /Rotate 0 /Contents 30 0 R>> endobj 30 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 760.60 Td (SIRIUS XM RADIO INC. ) Tj ET Q q 0 0 0 rg BT 315.43 760.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.05 748.60 Td (\(a wholly-owned subsidiary of Sirius XM Holdings Inc.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.60 736.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.82 736.60 Td (T) Tj ET Q q 0 0 0 rg BT 191.31 736.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.41 736.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.59 736.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.58 736.60 Td (A) Tj ET Q q 0 0 0 rg BT 361.06 736.60 Td (TEMENTS - Continued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.35 724.60 Td (\(UNAUDITED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.75 712.60 Td (\(Dollars and shar) Tj ET Q q 0 0 0 rg BT 252.02 712.60 Td (es in thousands, except per) Tj ET Q q 0 0 0 rg BT 366.02 712.60 Td ( shar) Tj ET Q q 0 0 0 rg BT 387.23 712.60 Td (e amounts\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (assessment of various factors.) Tj ET Q q 0 0 0 rg BT 173.73 695.10 Td (W) Tj ET Q q 0 0 0 rg BT 182.37 695.10 Td (e consider historical experience, the age of the receivable balances, current economic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (conditions and other factors that may af) Tj ET Q q 0 0 0 rg BT 208.16 683.10 Td (fect the counterparty) Tj ET Q q 0 0 0 rg BT 293.67 683.10 Td (s ability to pay) Tj ET Q q 0 0 0 rg BT 352.18 683.10 Td (.Bad debt expense is included in Customer service ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (and billing expense in our unaudited consolidated statements of comprehensive income.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.35 671.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 647.10 Td (Receivables from distributors primarily include billed and unbilled amounts due from OEMs for services included in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (sale or lease price of vehicles, as well as billed amounts due from wholesale distributors of our satellite radios.Other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (receivables primarily include amounts due from manufacturers of our radios, modules and chipsets where we are entitled to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (subsidies and royalties based on the number of units produced.) Tj ET Q q 0 0 0 rg BT 305.38 611.10 Td (W) Tj ET Q q 0 0 0 rg BT 314.02 611.10 Td (e have not established an allowance for doubtful accounts for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (our receivables from distributors or other receivables as we have historically not experienced any significant collection issues ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (with OEMs or other third parties.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 563.10 Td (Receivables, net, consists of the following:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 537.60 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 537.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 537.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 537.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 507.60 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 507.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 507.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 507.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 477.60 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 477.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 477.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 477.60 75.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 537.6 m 484 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 537.6 m 563 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 537.6 m 484 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 537.6 m 563 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 507.6 m 484 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 507.6 m 563 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 462.6 m 484 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 448.6 m 484 448.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 446.6 m 484 446.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 462.6 m 563 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 448.6 m 563 448.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 446.6 m 563 446.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 542.27 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.75 541.83 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.75 541.83 Td (December) Tj ET Q q 0 0 0 rg BT 527.25 541.83 Td ( 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 527.27 Td (Gross customer accounts receivable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 527.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 527.27 Td (105,764) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 527.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 527.27 Td (100,342) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 512.27 Td (Allowance for doubtful accounts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.30 512.32 Td (\(8,302) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 512.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 512.32 Td (\(9,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 512.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 497.27 Td (Customer accounts receivable, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 497.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 497.27 Td (97,462) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 497.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 497.27 Td (90,842) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 482.27 Td (Receivables from distributors) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 482.27 Td (121,407) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 482.27 Td (121,410) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 467.27 Td (Other receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 467.27 Td (28,279) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 467.27 Td (29,475) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 452.27 Td (T) Tj ET Q q 0 0 0 rg BT 69.91 452.27 Td (otal receivables, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 452.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 452.27 Td (247,148) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 452.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 452.27 Td (241,727) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 424.10 Td (\(5\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 424.10 Td (Inventory) Tj ET Q q 0 0 0 rg BT 118.17 424.10 Td (, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 406.10 Td (Inventory consists of finished goods, refurbished goods, chipsets and other raw material components used in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (manufacturing radios and connected vehicle devices. Inventory is stated at the lower of cost or market.) Tj ET Q q 0 0 0 rg BT 465.00 394.10 Td (W) Tj ET Q q 0 0 0 rg BT 473.64 394.10 Td (e record an estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (allowance for inventory that is considered slow moving or obsolete or whose carrying value is in excess of net realizable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (value.) Tj ET Q q 0 0 0 rg BT 78.47 370.10 Td (The provision related to products purchased for resale in our direct to consumer distribution channel and components ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (held for resale by us is reported as a component of Cost of equipment in our unaudited consolidated statements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (comprehensive income.) Tj ET Q q 0 0 0 rg BT 149.29 346.10 Td (The provision related to inventory consumed in our OEM channel is reported as a component of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (Subscriber acquisition costs in our unaudited consolidated statements of comprehensive income.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.24 334.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 310.10 Td (Inventory) Tj ET Q q 0 0 0 rg BT 114.73 310.10 Td (, net, consists of the following:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 284.60 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 284.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 284.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 284.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 254.60 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 254.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 254.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 254.60 75.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 284.6 m 484 284.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 284.6 m 563 284.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 284.6 m 484 284.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 284.6 m 563 284.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 239.60000000000002 m 484 239.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 239.60000000000002 m 563 239.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 239.60000000000002 m 484 239.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 225.60000000000002 m 484 225.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 223.60000000000002 m 484 223.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 239.60000000000002 m 563 239.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 225.60000000000002 m 563 225.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 223.60000000000002 m 563 223.60000000000002 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 289.27 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.75 288.83 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.75 288.83 Td (December) Tj ET Q q 0 0 0 rg BT 527.25 288.83 Td ( 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 274.27 Td (Raw materials) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 274.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.65 274.27 Td (5,615) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 274.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 274.27 Td (6,489) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 259.27 Td (Finished goods) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 259.27 Td (18,915) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 259.27 Td (21,225) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 244.27 Td (Allowance for obsolescence) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.30 244.32 Td (\(5,563) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 244.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 244.32 Td (\(7,515) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 244.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 229.27 Td (T) Tj ET Q q 0 0 0 rg BT 69.91 229.27 Td (otal inventory) Tj ET Q q 0 0 0 rg BT 125.08 229.27 Td (, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 229.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 229.27 Td (18,967) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 229.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 229.27 Td (20,199) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 201.10 Td (\(6\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 201.10 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 183.10 Td (Goodwill represents the excess of the purchase price over the estimated fair value of the net tangible and identifiable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 171.10 Td (intangible assets acquired in business combinations. Our annual impairment assessment of our single reporting unit is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 159.10 Td (performed as of the fourth quarter of each year) Tj ET Q q 0 0 0 rg BT 236.23 159.10 Td (, and an assessment is performed at other times if an event occurs or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 147.10 Td (circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. ) Tj ET Q q 0 0 0 rg BT 538.79 147.10 Td (ASC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 135.10 Td (350, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 69.50 135.10 Td (Intangibles - Goodwill and Other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.38 135.10 Td (, states that an entity should perform its annual or interim goodwill impairment test by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 123.10 Td (comparing the fair value of a reporting unit with its carrying amount and recognize an impairment char) Tj ET Q q 0 0 0 rg BT 461.39 123.10 Td (ge for the amount by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 111.10 Td (which the carrying amount exceeds the reporting unit) Tj ET Q q 0 0 0 rg BT 265.82 111.10 Td (s fair value. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 87.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.94 87.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.77 87.10 Td (, there were no indicators of impairment, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.49 87.10 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.49 87.10 Td ( impairment losses were recorded for goodwill ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 75.10 Td (during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.83 75.10 Td (three and six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.87 75.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.74 75.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.57 75.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.01 75.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.01 75.10 Td (.) Tj ET Q q 0 0 0 rg BT 306.96 75.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.40 75.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.23 75.10 Td (, the cumulative balance of goodwill ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 63.10 Td (impairments recorded since the July 2008 mer) Tj ET Q q 0 0 0 rg BT 234.27 63.10 Td (ger \(the Mer) Tj ET Q q 0 0 0 rg BT 288.50 63.10 Td (ger\) between our wholly owned subsidiary) Tj ET Q q 0 0 0 rg BT 463.08 63.10 Td (, ) Tj ET Q q 0 0 0 rg BT 467.90 63.10 Td (V) Tj ET Q q 0 0 0 rg BT 474.01 63.10 Td (ernon Mer) Tj ET Q q 0 0 0 rg BT 515.76 63.10 Td (ger ) Tj ET Q endstream endobj 31 0 obj <>] /Rotate 0 /Contents 32 0 R>> endobj 32 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 760.60 Td (SIRIUS XM RADIO INC. ) Tj ET Q q 0 0 0 rg BT 315.43 760.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.05 748.60 Td (\(a wholly-owned subsidiary of Sirius XM Holdings Inc.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.60 736.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.82 736.60 Td (T) Tj ET Q q 0 0 0 rg BT 191.31 736.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.41 736.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.59 736.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.58 736.60 Td (A) Tj ET Q q 0 0 0 rg BT 361.06 736.60 Td (TEMENTS - Continued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.35 724.60 Td (\(UNAUDITED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.75 712.60 Td (\(Dollars and shar) Tj ET Q q 0 0 0 rg BT 252.02 712.60 Td (es in thousands, except per) Tj ET Q q 0 0 0 rg BT 366.02 712.60 Td ( shar) Tj ET Q q 0 0 0 rg BT 387.23 712.60 Td (e amounts\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (Corporation, and XM Satellite Radio Holdings Inc. \(XM\), was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.67 695.10 Td ($4,766,190) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.67 695.10 Td (, which was recognized during the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (December31, 2008.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (\(7\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 659.10 Td (Intangible ) Tj ET Q q 0 0 0 rg BT 122.35 659.10 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 641.10 Td (Our intangible assets include the following:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 588.60 131.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 588.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 588.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 588.60 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.00 588.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.00 588.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.00 588.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 588.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 588.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 588.60 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 588.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 588.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 588.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 588.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 560.60 131.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 560.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 560.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 560.60 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.00 560.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.00 560.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.00 560.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 560.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 560.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 560.60 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 560.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 560.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 560.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 560.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 532.60 131.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 532.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 532.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 532.60 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.00 532.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.00 532.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.00 532.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 532.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 532.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 532.60 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 532.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 532.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 532.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 532.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 504.60 131.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 504.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 504.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 504.60 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.00 504.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.00 504.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.00 504.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 504.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 504.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 504.60 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 504.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 504.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 504.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 504.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 476.60 131.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 476.60 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 476.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 476.60 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.00 476.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.00 476.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.00 476.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 476.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 476.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 476.60 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 476.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 476.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 476.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 476.60 52.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 617.6 m 284 617.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284 617.6 m 288 617.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288 617.6 m 340 617.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340 617.6 m 344 617.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 617.6 m 396 617.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 617.6 m 451 617.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451 617.6 m 455 617.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 617.6 m 507 617.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 617.6 m 511 617.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 617.6 m 563 617.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181 588.6 m 229 588.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 588.6 m 284 588.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288 588.6 m 340 588.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 588.6 m 396 588.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 588.6 m 451 588.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 588.6 m 507 588.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 588.6 m 563 588.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 476.6 m 284 476.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 462.6 m 284 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 460.6 m 284 460.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288 476.6 m 340 476.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288 462.6 m 340 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288 460.6 m 340 460.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 476.6 m 396 476.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 462.6 m 396 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 460.6 m 396 460.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 476.6 m 451 476.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 462.6 m 451 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 460.6 m 451 460.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 476.6 m 507 476.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 462.6 m 507 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 460.6 m 507 460.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 476.6 m 563 476.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 462.6 m 563 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 460.6 m 563 460.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 621.17 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 183.50 621.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.75 621.83 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.75 621.83 Td (December) Tj ET Q q 0 0 0 rg BT 483.32 621.83 Td ( 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 593.27 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 188.25 608.83 Td (W) Tj ET Q q 0 0 0 rg BT 196.03 608.83 Td (eighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 190.55 600.83 Td (A) Tj ET Q q 0 0 0 rg BT 196.03 600.83 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 183.50 592.83 Td (UsefulLives) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 248.05 608.83 Td (Gr) Tj ET Q q 0 0 0 rg BT 257.75 608.83 Td (oss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 242.20 600.83 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 248.35 592.83 Td (V) Tj ET Q q 0 0 0 rg BT 253.76 592.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.80 600.83 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.60 592.83 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 346.70 600.83 Td (NetCarrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.85 592.83 Td (V) Tj ET Q q 0 0 0 rg BT 365.26 592.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.05 608.83 Td (Gr) Tj ET Q q 0 0 0 rg BT 424.75 608.83 Td (oss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 409.20 600.83 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.35 592.83 Td (V) Tj ET Q q 0 0 0 rg BT 420.76 592.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.80 600.83 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.60 592.83 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 513.70 600.83 Td (NetCarrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.85 592.83 Td (V) Tj ET Q q 0 0 0 rg BT 531.89 592.83 Td (alue) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 579.86 Td (Indefinite life intangible assets:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 579.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 280.50 579.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 336.50 579.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 392.50 579.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.50 579.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.50 579.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.50 579.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 64.50 565.86 Td (FCC licenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 190.50 565.06 Td (Indefinite) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 235.50 565.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 244.50 565.06 Td (2,083,654) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 290.50 565.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 327.50 565.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 346.50 565.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.50 565.06 Td (2,083,654) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 402.50 565.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.50 565.06 Td (2,083,654) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 457.50 565.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.50 565.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 513.50 565.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 523.50 565.06 Td (2,083,654) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 64.50 551.86 Td (T) Tj ET Q q 0 0 0 rg BT 69.68 551.86 Td (rademarks) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 190.50 551.06 Td (Indefinite) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.25 551.06 Td (250,800) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 327.50 551.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.25 551.06 Td (250,800) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.25 551.06 Td (250,800) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.50 551.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.25 551.06 Td (250,800) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 537.86 Td (Definite life intangible assets:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 537.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 280.50 537.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 336.50 537.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 392.50 537.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.50 537.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.50 537.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.50 537.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 64.50 523.86 Td (Subscriber relationships) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 199.75 523.06 Td (9 years) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 271.50 523.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 327.50 523.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.50 523.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.25 523.06 Td (380,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 471.25 523.06 Td (\(380,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.50 523.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 523.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 64.50 509.86 Td (OEM relationships) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 195.25 509.06 Td (15 years) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.25 509.06 Td (220,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 308.75 509.06 Td (\(68,444) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 336.50 509.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.25 509.06 Td (151,556) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.25 509.06 Td (220,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.75 509.06 Td (\(61,1) Tj ET Q q 0 0 0 rg BT 494.50 509.06 Td (1) Tj ET Q q 0 0 0 rg BT 499.00 509.06 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.50 509.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.25 509.06 Td (158,889) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 64.50 495.86 Td (Licensing agreements) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 195.25 495.06 Td (12 years) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.75 495.06 Td (45,289) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 308.75 495.06 Td (\(36,193) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 336.50 495.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 372.25 495.06 Td (9,096) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 422.75 495.06 Td (45,289) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.75 495.06 Td (\(34,350) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.50 495.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.75 495.06 Td (10,939) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 64.50 481.86 Td (Software and technology) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 199.75 481.06 Td (7 years) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.75 481.06 Td (33,872) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 308.75 481.06 Td (\(17,857) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 336.50 481.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 367.75 481.06 Td (16,015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 422.75 481.06 Td (43,915) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.75 481.06 Td (\(25,351) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.50 481.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.75 481.06 Td (18,564) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 467.86 Td (T) Tj ET Q q 0 0 0 rg BT 81.37 467.86 Td (otal intangible assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 466.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 235.50 466.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 244.50 466.06 Td (2,633,615) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 290.50 466.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 304.25 466.06 Td (\(122,494) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 336.50 466.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 346.50 466.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.50 466.06 Td (2,51) Tj ET Q q 0 0 0 rg BT 372.25 466.06 Td (1,121) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 402.50 466.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.50 466.06 Td (3,023,658) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 457.50 466.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 471.25 466.06 Td (\(500,812) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.50 466.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 513.50 466.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 523.50 466.06 Td (2,522,846) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.00 438.10 Td (Indefinite Life Intangible ) Tj ET Q q 0 0 0 rg BT 170.13 438.10 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 420.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 420.10 Td (e have identified our FCC licenses and the XM and ) Tj ET Q q 0 0 0 rg BT 292.32 420.10 Td (Automatic Labs Inc. trademarks as indefinite life intangible assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 408.10 Td (after considering the expected use of the assets, the regulatory and economic environment within which they are used and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 396.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 396.10 Td (fects of obsolescence on their use. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 372.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 372.10 Td (e hold FCC licenses to operate our satellite digital audio radio service and provide ancillary services. ) Tj ET Q q 0 0 0 rg BT 490.67 372.10 Td (The following ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 360.10 Td (table outlines the years in which each of our satellite licenses expires: ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 334.60 402.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 334.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 334.60 106.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 308.60 402.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 308.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 308.60 106.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 282.60 402.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 282.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 282.60 106.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 334.6 m 452 334.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 334.6 m 562 334.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 338.83 Td (FCC satellite licenses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 481.55 338.83 Td (Expirationyear) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 325.17 Td (SIRIUS FM-5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.50 325.17 Td (2025) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 312.17 Td (SIRIUS FM-6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.50 312.17 Td (2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 299.17 Td (XM-3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.50 299.17 Td (2021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 286.17 Td (XM-4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.50 286.17 Td (2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 273.17 Td (XM-5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.50 273.17 Td (2018) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 246.10 Td (Prior to expiration, we are required to apply for a renewal of our FCC licenses.) Tj ET Q q 0 0 0 rg BT 397.78 246.10 Td (The renewal and extension of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (licenses is reasonably certain at minimal cost, which is expensed as incurred.Each of the FCC licenses authorizes us to use the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.10 Td (radio spectrum, which is a renewable, reusable resource that does not deplete or exhaust over time.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 198.10 Td (Our annual impairment assessment of our identifiable indefinite life intangible assets is performed as of the fourth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 186.10 Td (quarter of each year) Tj ET Q q 0 0 0 rg BT 128.62 186.10 Td (. ) Tj ET Q q 0 0 0 rg BT 135.56 186.10 Td (An assessment is performed at other times if an event occurs or circumstances change that would more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.10 Td (likely than not reduce the fair value of the asset below its carrying value. If the carrying value of the intangible assets exceeds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 162.10 Td (its fair value, an impairment loss is recognized. ) Tj ET Q q 0 0 0 rg BT 243.06 162.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.50 162.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.33 162.10 Td (, there were no indicators of impairment, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.05 162.10 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.05 162.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.10 Td (impairment loss was recognized for intangible assets with indefinite lives during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.87 150.10 Td (three and six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.91 150.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.78 150.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.61 150.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 138.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 138.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.44 138.10 Td (.) Tj ET Q endstream endobj 33 0 obj <>] /Rotate 0 /Contents 34 0 R>> endobj 34 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 760.60 Td (SIRIUS XM RADIO INC. ) Tj ET Q q 0 0 0 rg BT 315.43 760.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.05 748.60 Td (\(a wholly-owned subsidiary of Sirius XM Holdings Inc.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.60 736.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.82 736.60 Td (T) Tj ET Q q 0 0 0 rg BT 191.31 736.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.41 736.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.59 736.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.58 736.60 Td (A) Tj ET Q q 0 0 0 rg BT 361.06 736.60 Td (TEMENTS - Continued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.35 724.60 Td (\(UNAUDITED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.75 712.60 Td (\(Dollars and shar) Tj ET Q q 0 0 0 rg BT 252.02 712.60 Td (es in thousands, except per) Tj ET Q q 0 0 0 rg BT 366.02 712.60 Td ( shar) Tj ET Q q 0 0 0 rg BT 387.23 712.60 Td (e amounts\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (15) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.00 695.25 Td (Definite Life Intangible ) Tj ET Q q 0 0 0 rg BT 162.90 695.25 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 671.25 Td (Amortization expense for all definite life intangible assets was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.92 671.25 Td ($5,863) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.42 671.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.86 671.25 Td ($12,098) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.36 671.25 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.74 671.25 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.67 671.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.55 671.25 Td (June30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 659.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 659.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 659.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 161.60 659.25 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.54 659.25 Td ($1) Tj ET Q q 0 0 0 rg BT 193.17 659.25 Td (1,725) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.67 659.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.11 659.25 Td ($23,626) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.61 659.25 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.98 659.25 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.60 659.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.48 659.25 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.31 659.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.75 659.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.75 659.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 519.41 659.25 Td (. ) Tj ET Q q 0 0 0 rg BT 526.73 659.25 Td (W) Tj ET Q q 0 0 0 rg BT 535.36 659.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.25 Td (retired definite lived intangible assets of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.78 647.25 Td ($390,043) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.28 647.25 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.11 647.25 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.72 647.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.60 647.25 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.43 647.25 Td ( primarily related to fully ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.25 Td (amortized subscriber relationships. ) Tj ET Q q 0 0 0 rg BT 194.00 635.25 Td (There were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.75 635.25 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.75 635.25 Td ( retirements of definite lived intangible assets during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.74 635.25 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.36 635.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.25 Td (June30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 623.25 Td (. ) Tj ET Q q 0 0 0 rg BT 112.65 623.25 Td (The expected amortization expense for the remaining period in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.72 623.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.72 623.25 Td (, each of the fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.83 623.25 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.83 623.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.94 623.25 Td (2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.94 623.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.25 Td (and for periods thereafter is as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 587.75 434.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 587.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 587.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 559.75 434.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 559.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 559.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 531.75 434.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 531.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 531.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 503.75 434.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 503.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 503.75 75.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 587.75 m 484 587.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 587.75 m 563 587.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 503.75 m 563 503.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 503.75 m 563 503.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 490.75 m 563 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 488.75 m 563 488.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 591.98 Td (Y) Tj ET Q q 0 0 0 rg BT 57.39 591.98 Td (ears ending December) Tj ET Q q 0 0 0 rg BT 133.23 591.98 Td ( 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 510.95 591.98 Td (Amount) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 578.32 Td (2018 \(remaining\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 578.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 578.32 Td (1) Tj ET Q q 0 0 0 rg BT 536.65 578.32 Td (1,413) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 564.32 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 564.32 Td (22,701) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 550.32 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 550.32 Td (22,121) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 536.32 Td (2021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 536.32 Td (16,678) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 522.32 Td (2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 522.32 Td (15,542) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 508.32 Td (Thereafter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 508.32 Td (88,212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 494.32 Td (T) Tj ET Q q 0 0 0 rg BT 69.91 494.32 Td (otal definite life intangible assets, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 494.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 494.32 Td (176,667) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (\(8\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 466.25 Td (Pr) Tj ET Q q 0 0 0 rg BT 86.87 466.25 Td (operty and Equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 442.25 Td (Property and equipment, net, consists of the following:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 416.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 416.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 416.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 416.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 386.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 386.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 386.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 386.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 356.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 356.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 356.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 356.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 326.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 326.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 326.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 326.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 296.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 296.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 296.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 296.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 266.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 266.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 266.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 266.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 236.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 236.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 236.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 236.75 75.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 416.75 m 484 416.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 416.75 m 563 416.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 416.75 m 484 416.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 416.75 m 563 416.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 266.75 m 484 266.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 266.75 m 563 266.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 236.75 m 484 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 236.75 m 563 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 236.75 m 484 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 222.75 m 484 222.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 220.75 m 484 220.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 236.75 m 563 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 222.75 m 563 222.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 220.75 m 563 220.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 421.42 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.75 420.98 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.75 420.98 Td (December) Tj ET Q q 0 0 0 rg BT 527.25 420.98 Td ( 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 406.42 Td (Satellite system) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 406.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 406.42 Td (1,586,794) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 406.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 406.42 Td (1,586,794) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 391.42 Td (T) Tj ET Q q 0 0 0 rg BT 58.26 391.42 Td (errestrial repeater network) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 391.42 Td (124,904) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 391.42 Td (123,254) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 376.42 Td (Leasehold improvements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 376.42 Td (59,477) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 376.42 Td (57,635) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 361.42 Td (Broadcast studio equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 361.42 Td (101,338) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 361.42 Td (96,582) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 346.42 Td (Capitalized software and hardware) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 346.42 Td (719,433) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 346.42 Td (639,516) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 331.42 Td (Satellite telemetry) Tj ET Q q 0 0 0 rg BT 125.20 331.42 Td (, tracking and control facilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 331.42 Td (74,201) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 331.42 Td (69,147) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 316.42 Td (Furniture, fixtures, equipment and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 316.42 Td (98,849) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 316.42 Td (96,965) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 301.42 Td (Land) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 301.42 Td (38,41) Tj ET Q q 0 0 0 rg BT 475.15 301.42 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 301.42 Td (38,41) Tj ET Q q 0 0 0 rg BT 554.15 301.42 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 286.42 Td (Building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 286.42 Td (61,844) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 286.42 Td (61,824) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 271.42 Td (Construction in progress) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 271.42 Td (347,196) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 271.42 Td (301,153) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 256.42 Td (T) Tj ET Q q 0 0 0 rg BT 70.26 256.42 Td (otal property and equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 256.42 Td (3,212,447) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 256.42 Td (3,071,281) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 241.42 Td (Accumulated depreciation and amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.80 241.47 Td (\(1,743,517) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 241.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.80 241.47 Td (\(1,608,515) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 241.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 226.42 Td (Property and equipment, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 226.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 226.42 Td (1,468,930) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 226.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 226.42 Td (1,462,766) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 198.25 Td (Construction in progress consists of the following:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 172.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 172.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 172.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 172.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 142.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 142.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 142.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 142.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 112.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 112.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 112.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 112.75 75.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 172.75 m 484 172.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 172.75 m 563 172.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 172.75 m 484 172.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 172.75 m 563 172.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 112.75 m 484 112.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 112.75 m 563 112.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 112.75 m 484 112.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 98.75 m 484 98.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 96.75 m 484 96.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 112.75 m 563 112.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 98.75 m 563 98.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 96.75 m 563 96.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 177.42 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.75 176.98 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.75 176.98 Td (December) Tj ET Q q 0 0 0 rg BT 527.25 176.98 Td ( 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 162.42 Td (Satellite system) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 162.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 162.42 Td (231,047) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 162.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 162.42 Td (183,243) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 147.42 Td (T) Tj ET Q q 0 0 0 rg BT 58.26 147.42 Td (errestrial repeater network) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.65 147.42 Td (2,972) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 147.42 Td (2,515) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 132.42 Td (Capitalized software and hardware) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 132.42 Td (95,555) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 132.42 Td (94,456) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 117.42 Td (Other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 117.42 Td (17,622) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 117.42 Td (20,939) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 102.42 Td (Construction in progress) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 102.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 102.42 Td (347,196) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 102.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 102.42 Td (301,153) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 74.25 Td (Depreciation and amortization expense on property and equipment was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.90 74.25 Td ($68,760) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.40 74.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.84 74.25 Td ($61,421) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.34 74.25 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.72 74.25 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.65 74.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 62.25 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 62.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.77 62.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.77 62.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 197.43 62.25 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.37 62.25 Td ($135,1) Tj ET Q q 0 0 0 rg BT 246.50 62.25 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.50 62.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.94 62.25 Td ($126,597) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.44 62.25 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.81 62.25 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.43 62.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.31 62.25 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.14 62.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.58 62.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.58 62.25 Td (, ) Tj ET Q endstream endobj 35 0 obj <>] /Rotate 0 /Contents 36 0 R>> endobj 36 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 760.60 Td (SIRIUS XM RADIO INC. ) Tj ET Q q 0 0 0 rg BT 315.43 760.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.05 748.60 Td (\(a wholly-owned subsidiary of Sirius XM Holdings Inc.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.60 736.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.82 736.60 Td (T) Tj ET Q q 0 0 0 rg BT 191.31 736.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.41 736.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.59 736.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.58 736.60 Td (A) Tj ET Q q 0 0 0 rg BT 361.06 736.60 Td (TEMENTS - Continued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.35 724.60 Td (\(UNAUDITED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.75 712.60 Td (\(Dollars and shar) Tj ET Q q 0 0 0 rg BT 252.02 712.60 Td (es in thousands, except per) Tj ET Q q 0 0 0 rg BT 366.02 712.60 Td ( shar) Tj ET Q q 0 0 0 rg BT 387.23 712.60 Td (e amounts\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 695.10 Td (.) Tj ET Q q 0 0 0 rg BT 104.48 695.10 Td (W) Tj ET Q q 0 0 0 rg BT 113.12 695.10 Td (e retired property and equipment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.51 695.10 Td ($14,760) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.01 695.10 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.83 695.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.45 695.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.33 695.10 Td (June30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.16 695.10 Td (. ) Tj ET Q q 0 0 0 rg BT 471.48 695.10 Td (There were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.22 695.10 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.22 695.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (retirements of property and equipment during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.16 683.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.78 683.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.66 683.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.49 683.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 659.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 659.10 Td (e capitalize a portion of the interest on funds borrowed to finance the construction and launch of our satellites. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (Capitalized interest is recorded as part of the asset) Tj ET Q q 0 0 0 rg BT 252.76 647.10 Td (s cost and depreciated over the satellite) Tj ET Q q 0 0 0 rg BT 412.14 647.10 Td (s useful life. Capitalized interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (costs were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.93 635.10 Td ($2,901) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.43 635.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.87 635.10 Td ($1,005) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.37 635.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.74 635.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.68 635.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.55 635.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.38 635.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.82 635.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.82 635.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 428.48 635.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.42 635.10 Td ($5,155) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.92 635.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.36 635.10 Td ($1,723) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.86 635.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.12 623.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 623.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.83 623.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.26 623.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.26 623.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 269.92 623.10 Td (, which related to the construction of our SXM-7 and SXM-8 satellites. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.50 593.10 Td (Satellites) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 575.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.94 575.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.77 575.10 Td (, we owned a fleet of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.13 575.10 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.67 575.10 Td ( satellites.) Tj ET Q q 0 0 0 rg BT 304.48 575.10 Td (The chart below provides certain information on our satellites as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 563.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.16 563.10 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 531.60 355.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 531.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 531.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 531.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 531.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 501.60 355.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 501.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 501.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 501.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 501.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 471.60 355.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 471.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 471.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 471.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 471.60 75.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 531.6 m 405 531.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 531.6 m 484 531.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 531.6 m 563 531.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 192.45 535.83 Td (Satellite Description) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.70 535.83 Td (Y) Tj ET Q q 0 0 0 rg BT 425.59 535.83 Td (ear) Tj ET Q q 0 0 0 rg BT 436.55 535.83 Td (Deliver) Tj ET Q q 0 0 0 rg BT 463.28 535.83 Td (ed) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 495.20 543.83 Td (Estimated End of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 496.70 535.83 Td (Depr) Tj ET Q q 0 0 0 rg BT 513.88 535.83 Td (eciable Life) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 521.27 Td (SIRIUS FM-5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 521.27 Td (2009) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.50 521.27 Td (2024) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 506.27 Td (SIRIUS FM-6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 506.27 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.50 506.27 Td (2028) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 491.27 Td (XM-3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 491.27 Td (2005) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.50 491.27 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 476.27 Td (XM-4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 476.27 Td (2006) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.50 476.27 Td (2021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 461.27 Td (XM-5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 461.27 Td (2010) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.50 461.27 Td (2025) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 433.10 Td (\(9\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 433.10 Td (Related Party ) Tj ET Q q 0 0 0 rg BT 137.96 433.10 Td (T) Tj ET Q q 0 0 0 rg BT 143.89 433.10 Td (ransactions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 409.10 Td (In the normal course of business, we enter into transactions with related parties such as Liberty Media, Sirius XM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 397.10 Td (Canada and Pandora.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 373.10 Td (Liberty Media) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 356.60 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.94 356.60 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.77 356.60 Td (, Liberty Media beneficially owned, directly and indirectly) Tj ET Q q 0 0 0 rg BT 390.76 356.60 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.02 356.60 Td (70%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.35 356.60 Td ( of the outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.60 Td (shares of Holdings' common stock. Liberty Media has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.71 344.60 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.71 344.60 Td ( executives and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.85 344.60 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.29 344.60 Td ( of its directors on Holdings' board of directors. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.60 Td (Gregory B. Maf) Tj ET Q q 0 0 0 rg BT 113.47 332.60 Td (fei, the President and Chief Executive Of) Tj ET Q q 0 0 0 rg BT 277.96 332.60 Td (ficer of Liberty Media, is the Chairman of Holdings) Tj ET Q q 0 0 0 rg BT 487.99 332.60 Td ( board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.60 Td (directors.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 296.60 Td (Sirius XM Holdings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 280.10 Td (Sirius XM is a wholly-owned subsidiary of Holdings. Holdings has no operations independent of Sirius XM. ) Tj ET Q q 0 0 0 rg BT 518.70 280.10 Td (All equity-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 268.10 Td (related transactions, including repurchases of Holdings' common stock, dividend payments on shares of Holdings' common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 256.10 Td (stock, the issuance of equity related to stock-based compensation for Sirius XM employees, Holdings' directors and third ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 244.10 Td (parties and the issuance of Holdings' common stock related to the recapitalization of Sirius XM Canada have been reported as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 232.10 Td (related party transactions within our unaudited consolidated financial statements. ) Tj ET Q q 0 0 0 rg BT 378.39 232.10 Td (The stock-based compensation for Sirius XM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 220.10 Td (employees, Holdings' directors and third parties has been recorded in our unaudited consolidated financial statements. ) Tj ET Q q 0 0 0 rg BT 525.98 220.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 208.10 Td (Related party long-term assets balance as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.04 208.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.88 208.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.31 208.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.90 208.10 Td ( of Sirius XM includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.51 208.10 Td ($6,976,764) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.51 208.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 196.10 Td ($6,559,927) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 196.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 147.16 196.10 Td (, primarily for net amounts due from Holdings in connection with these equity-related transactions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 172.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.05 172.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.67 172.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.54 172.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.37 172.10 Td (, we used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.36 172.10 Td ($432,899) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.86 172.10 Td ( of our cash for the purchase and retirement of shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 160.10 Td (Holdings' common stock under Holdings' repurchase program and payment of a cash dividend on Holdings' common stock. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 148.10 Td (This amount is included in our Related party long-term asset balance as a receivable due from Holdings.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 124.10 Td (Sirius XM Canada) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 106.10 Td (On May 25, 2017, we completed a recapitalization of Sirius XM Canada \(the T) Tj ET Q q 0 0 0 rg BT 397.44 106.10 Td (ransaction\), which is now a privately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (held corporation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 70.10 Td (Following the ) Tj ET Q q 0 0 0 rg BT 134.65 70.10 Td (T) Tj ET Q q 0 0 0 rg BT 140.41 70.10 Td (ransaction, we hold a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.88 70.10 Td (70%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.21 70.10 Td ( equity interest and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.08 70.10 Td (33%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.41 70.10 Td ( voting interest in Sirius XM Canada, with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (remainder of the voting power and equity interests held by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.10 58.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.10 58.10 Td ( of Sirius XM Canada) Tj ET Q q 0 0 0 rg BT 391.65 58.10 Td (s previous shareholders. ) Tj ET Q q 0 0 0 rg BT 492.83 58.10 Td (The total ) Tj ET Q endstream endobj 37 0 obj <>] /Rotate 0 /Contents 38 0 R>> endobj 38 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 760.60 Td (SIRIUS XM RADIO INC. ) Tj ET Q q 0 0 0 rg BT 315.43 760.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.05 748.60 Td (\(a wholly-owned subsidiary of Sirius XM Holdings Inc.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.60 736.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.82 736.60 Td (T) Tj ET Q q 0 0 0 rg BT 191.31 736.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.41 736.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.59 736.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.58 736.60 Td (A) Tj ET Q q 0 0 0 rg BT 361.06 736.60 Td (TEMENTS - Continued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.35 724.60 Td (\(UNAUDITED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.75 712.60 Td (\(Dollars and shar) Tj ET Q q 0 0 0 rg BT 252.02 712.60 Td (es in thousands, except per) Tj ET Q q 0 0 0 rg BT 366.02 712.60 Td ( shar) Tj ET Q q 0 0 0 rg BT 387.23 712.60 Td (e amounts\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (consideration from us to Sirius XM Canada, excluding transaction costs, during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.55 695.10 Td (year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.76 695.10 Td ( ended December 31, 2017 was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td ($308,526) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 683.10 Td (, which included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.87 683.10 Td ($129,676) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.37 683.10 Td ( in cash and Holdings issued common stock with an aggregate value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.70 683.10 Td ($178,850) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.20 683.10 Td ( to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (holders of the shares of Sirius XM Canada acquired in the ) Tj ET Q q 0 0 0 rg BT 283.98 671.10 Td (T) Tj ET Q q 0 0 0 rg BT 289.74 671.10 Td (ransaction. ) Tj ET Q q 0 0 0 rg BT 338.15 671.10 Td (W) Tj ET Q q 0 0 0 rg BT 346.79 671.10 Td (e received common stock, non-voting common stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (and preferred stock of Sirius XM Canada. Sirius XM and Holdings own, in the aggregate, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.59 659.10 Td (590,950) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.09 659.10 Td ( shares of preferred stock of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (Sirius XM Canada, which has a liquidation preference of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.99 647.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.43 647.10 Td ( Canadian dollar per share.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 623.10 Td (In connection with the ) Tj ET Q q 0 0 0 rg BT 168.52 623.10 Td (T) Tj ET Q q 0 0 0 rg BT 174.27 623.10 Td (ransaction, we also made a contribution in the form of a loan to Sirius XM Canada in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (aggregate amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.19 611.10 Td ($130,794) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.69 611.10 Td (. ) Tj ET Q q 0 0 0 rg BT 179.01 611.10 Td (The loan is denominated in Canadian dollars and is considered a long-term investment with any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (unrealized gains or losses reported within ) Tj ET Q q 0 0 0 rg BT 217.79 599.10 Td (Accumulated other comprehensive \(loss\) income. ) Tj ET Q q 0 0 0 rg BT 421.16 599.10 Td (The loan has a term of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.34 599.10 Td (fifteen ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.60 587.10 Td (, bears interest at a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.10 587.10 Td (7.62%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.93 587.10 Td ( per annum and includes customary covenants and events of default, including an event of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.10 Td (default relating to Sirius XM Canada) Tj ET Q q 0 0 0 rg BT 200.30 575.10 Td (s failure to maintain specified leverage ratios. ) Tj ET Q q 0 0 0 rg BT 387.55 575.10 Td (The terms of the loan require Sirius XM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (Canada to prepay a portion of the outstanding principal amount of the loan within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.87 563.10 Td (sixty days) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.14 563.10 Td ( of the end of each fiscal year in an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (amount equal to any cash on hand in excess of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.78 551.10 Td (C$10,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.95 551.10 Td ( at the last day of the financial year if all tar) Tj ET Q q 0 0 0 rg BT 451.41 551.10 Td (get dividends have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (paid in full. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.43 539.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.05 539.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.92 539.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.75 539.10 Td (, Sirius XM Canada repaid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.18 539.10 Td ($3,242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.68 539.10 Td ( of the principal amount of the loan.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 515.10 Td (In connection with the ) Tj ET Q q 0 0 0 rg BT 168.52 515.10 Td (T) Tj ET Q q 0 0 0 rg BT 174.27 515.10 Td (ransaction, we also entered into a Services ) Tj ET Q q 0 0 0 rg BT 345.88 515.10 Td (Agreement and an ) Tj ET Q q 0 0 0 rg BT 421.13 515.10 Td (Advisory Services ) Tj ET Q q 0 0 0 rg BT 496.68 515.10 Td (Agreement with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.10 Td (Sirius XM Canada. Each agreement has a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.33 503.10 Td (thirty) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.00 503.10 Td ( year term. Pursuant to the Services ) Tj ET Q q 0 0 0 rg BT 383.85 503.10 Td (Agreement, Sirius XM Canada pays us ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.43 503.10 Td (25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.76 503.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (of its gross revenues on a monthly basis through December 31, 2021 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.33 491.10 Td (30%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.66 491.10 Td ( of its gross revenues on a monthly basis ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (thereafter) Tj ET Q q 0 0 0 rg BT 87.25 479.10 Td (. Pursuant to the ) Tj ET Q q 0 0 0 rg BT 156.69 479.10 Td (Advisory Services ) Tj ET Q q 0 0 0 rg BT 232.24 479.10 Td (Agreement, Sirius XM Canada pays us ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.82 479.10 Td (5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.15 479.10 Td ( of its gross revenues on a monthly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (basis. ) Tj ET Q q 0 0 0 rg BT 76.82 467.10 Td (These agreements superseded and replaced the former agreements between Sirius XM Canada and its predecessors and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (us. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 431.10 Td (Sirius XM Canada is accounted for as an equity method investment, and its results are not consolidated in our unaudited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (consolidated financial statements. Sirius XM Canada does not meet the requirements for consolidation as we do not have the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (ability to direct the most significant activities that impact Sirius XM Canada's economic performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 383.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 383.10 Td (e had the following related party balances associated with Sirius XM Canada:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 357.60 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.00 357.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 357.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 357.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 327.60 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.00 327.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 327.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 327.60 75.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408 357.6 m 483 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 357.6 m 562 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408 357.6 m 483 357.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 421.75 361.83 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.75 361.83 Td (December) Tj ET Q q 0 0 0 rg BT 526.25 361.83 Td ( 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 347.27 Td (Related party current assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.50 347.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 347.27 Td (13,692) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 347.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 347.27 Td (10,284) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 332.27 Td (Related party long-term assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.50 332.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 332.27 Td (453,416) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 332.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 332.27 Td (481,608) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 317.27 Td (Related party current liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.50 317.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 317.27 Td (4,103) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 317.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 317.27 Td (2,839) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 302.27 Td (Related party long-term liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.50 302.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 302.27 Td (6,269) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 302.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 302.27 Td (7,364) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 274.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.94 274.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.77 274.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.21 274.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.80 274.10 Td (, our related party current asset balance included amounts due under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (Services ) Tj ET Q q 0 0 0 rg BT 85.33 262.10 Td (Agreement and ) Tj ET Q q 0 0 0 rg BT 148.64 262.10 Td (Advisory Services ) Tj ET Q q 0 0 0 rg BT 224.18 262.10 Td (Agreement and certain amounts related to transactions outside the scope of the new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (services arrangements. Our related party long-term assets balance as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.83 250.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.66 250.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.09 250.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.68 250.10 Td ( included the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (carrying value of our investment balance in Sirius XM Canada of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.59 238.10 Td ($323,226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.09 238.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.53 238.10 Td ($341,214) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.03 238.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 460.69 238.10 Td (, and, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.79 238.10 Td (June30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 226.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 226.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.52 226.10 Td (, also included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.06 226.10 Td ($130,190) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.56 226.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.00 226.10 Td ($140,073) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.50 226.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 375.16 226.10 Td (, for the long-term value of the outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (loan to Sirius XM Canada. Our related party liabilities as of each of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.26 214.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.09 214.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.53 214.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.11 214.10 Td ( included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.54 214.10 Td ($2,776) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.04 214.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (the current portion of deferred revenue and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.14 202.10 Td ($3,700) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.64 202.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.08 202.10 Td ($5,088) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.58 202.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 351.24 202.10 Td (, for the long-term portion of deferred revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (recorded as of the Mer) Tj ET Q q 0 0 0 rg BT 139.83 190.10 Td (ger date related to agreements with legacy XM Canada, now Sirius XM Canada.) Tj ET Q q 0 0 0 rg BT 466.22 190.10 Td (These costs are being ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (amortized on a straight line basis through 2020.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 154.10 Td (Sirius XM Canada paid gross dividends to us of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.66 154.10 Td ($408) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.66 154.10 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.48 154.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.41 154.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.29 154.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.12 154.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.56 154.10 Td ($1,439) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.06 154.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td ($3,796) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 142.10 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.83 142.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.44 142.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.32 142.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.15 142.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.59 142.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.59 142.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 343.25 142.10 Td (. Sirius XM Canada did ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.97 142.10 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.97 142.10 Td (t pay any dividends to us ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.83 130.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.76 130.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.64 130.10 Td (June30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.47 130.10 Td (.Dividends are first recorded as a reduction to our investment balance in Sirius ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (XM Canada to the extent a balance exists and then as Other income for any remaining portion.) Tj ET Q endstream endobj 39 0 obj <>] /Rotate 0 /Contents 40 0 R>> endobj 40 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 760.60 Td (SIRIUS XM RADIO INC. ) Tj ET Q q 0 0 0 rg BT 315.43 760.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.05 748.60 Td (\(a wholly-owned subsidiary of Sirius XM Holdings Inc.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.60 736.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.82 736.60 Td (T) Tj ET Q q 0 0 0 rg BT 191.31 736.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.41 736.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.59 736.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.58 736.60 Td (A) Tj ET Q q 0 0 0 rg BT 361.06 736.60 Td (TEMENTS - Continued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.35 724.60 Td (\(UNAUDITED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.75 712.60 Td (\(Dollars and shar) Tj ET Q q 0 0 0 rg BT 252.02 712.60 Td (es in thousands, except per) Tj ET Q q 0 0 0 rg BT 366.02 712.60 Td ( shar) Tj ET Q q 0 0 0 rg BT 387.23 712.60 Td (e amounts\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 695.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 695.10 Td (e recorded the following revenue and other income associated with Sirius XM Canada in our unaudited consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (statements of comprehensive income:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 644.60 215.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 264.00 644.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 644.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 644.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 644.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 644.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 644.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 644.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 614.60 215.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 264.00 614.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 614.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 614.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 614.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 614.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 614.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 614.60 68.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264 657.6 m 339 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 657.6 m 343 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 657.6 m 418 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 657.6 m 490 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 657.6 m 494 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 657.6 m 562 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264 657.6 m 339 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264 644.6 m 339 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 657.6 m 418 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 644.6 m 418 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 657.6 m 490 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 644.6 m 490 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 657.6 m 494 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 657.6 m 562 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 644.6 m 562 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264 644.6 m 339 644.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 662.27 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 275.45 663.28 Td (For) Tj ET Q q 0 0 0 rg BT 287.82 663.28 Td ( the ) Tj ET Q q 0 0 0 rg BT 302.33 663.28 Td (Thr) Tj ET Q q 0 0 0 rg BT 315.53 663.28 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 431.20 663.28 Td (For) Tj ET Q q 0 0 0 rg BT 443.57 663.28 Td ( the Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 51.50 649.68 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 293.00 649.28 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 372.00 649.28 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.50 649.28 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 519.50 649.28 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 634.27 Td (Revenue ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 88.99 638.80 Td (\(a\)\(b\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.50 634.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.65 634.27 Td (23,273) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 634.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.65 634.27 Td (28,129) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.50 634.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 634.27 Td (47,370) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.50 634.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 634.27 Td (40,345) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 619.27 Td (Other income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.50 619.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 619.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 604.27 Td (Share of net earnings ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 150.69 608.80 Td (\(b\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.50 604.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.80 604.32 Td (\(896) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.15 604.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 604.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.30 604.32 Td (\(5,197) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 604.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.50 604.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.15 604.27 Td (85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.50 604.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 604.32 Td (\(2,183) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 604.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 589.27 Td (Interest income ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 127.92 593.80 Td (\(c\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.50 589.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.65 589.27 Td (2,557) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 589.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.15 589.27 Td (803) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.50 589.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 589.27 Td (5,204) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.50 589.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 589.27 Td (803) Tj ET Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 568.30 Td (\(a\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 568.30 Td (Prior to the ) Tj ET Q q 0 0 0 rg BT 119.08 568.30 Td (T) Tj ET Q q 0 0 0 rg BT 124.26 568.30 Td (ransaction, under our former agreements with Sirius XM Canada, we received a percentage-based fee of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 501.86 568.30 Td (10%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 518.35 568.30 Td ( and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 535.85 568.30 Td (15%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 552.34 568.30 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 557.50 Td (for certain types of subscription revenue earned by Sirius XM Canada for the use of the Sirius and XM platforms, respectively) Tj ET Q q 0 0 0 rg BT 531.04 557.50 Td (, and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 546.70 Td (additional fees for premium services and fees for activation fees and reimbursements for other char) Tj ET Q q 0 0 0 rg BT 433.20 546.70 Td (ges.) Tj ET Q q 0 0 0 rg BT 451.78 546.70 Td (W) Tj ET Q q 0 0 0 rg BT 459.55 546.70 Td (e record revenue from ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 535.90 Td (Sirius XM Canada as Other revenue in our unaudited consolidated statements of comprehensive income.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 525.10 Td (\(b\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 525.10 Td (Prior to the ) Tj ET Q q 0 0 0 rg BT 119.08 525.10 Td (T) Tj ET Q q 0 0 0 rg BT 124.26 525.10 Td (ransaction, we recognized our proportionate share of revenue and earnings or losses attributable to Sirius XM Canada on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 514.30 Td (a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 82.74 514.30 Td (one) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 95.74 514.30 Td ( month lag. ) Tj ET Q q 0 0 0 rg BT 140.49 514.30 Td (As a result of the ) Tj ET Q q 0 0 0 rg BT 204.06 514.30 Td (T) Tj ET Q q 0 0 0 rg BT 209.24 514.30 Td (ransaction, there is no longer a ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 321.95 514.30 Td (one) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 334.95 514.30 Td (-month lag and Sirius XM Canada changed its fiscal year) Tj ET Q q 0 0 0 rg BT 540.96 514.30 Td (-end ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 503.50 Td (to December 31 to align with us. For the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 226.72 503.50 Td (three and six months) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 301.46 503.50 Td ( ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 327.45 503.50 Td (June30, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.70 503.50 Td (, Share of net earnings included ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 493.91 503.50 Td ($61) Tj ET Q q 0 0 0 rg BT 507.08 503.50 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 511.58 503.50 Td ( and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 529.07 503.50 Td ($1,234) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 553.82 503.50 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 492.70 Td (respectively) Tj ET Q q 0 0 0 rg BT 119.40 492.70 Td (, of amortization related to equity method intangible assets.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 481.90 Td (\(c\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 481.90 Td (This interest income relates to the loan to Sirius XM Canada and is recorded as Other income in our unaudited consolidated statements ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 471.10 Td (of comprehensive income.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.50 447.10 Td (Pandora) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 429.10 Td (On September 22, 2017, we completed a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.73 429.10 Td ($480,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.23 429.10 Td ( investment in Pandora. Pursuant to an Investment ) Tj ET Q q 0 0 0 rg BT 484.76 429.10 Td (Agreement with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 417.10 Td (Pandora, we purchased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.47 417.10 Td (480) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.47 417.10 Td ( shares of Pandora) Tj ET Q q 0 0 0 rg BT 235.83 417.10 Td (s Series ) Tj ET Q q 0 0 0 rg BT 268.61 417.10 Td (A) Tj ET Q q 0 0 0 rg BT 275.28 417.10 Td ( Convertible Preferred Stock, par value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.39 417.10 Td ($0.0001) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.89 417.10 Td ( per share \(the Series ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 405.10 Td (A) Tj ET Q q 0 0 0 rg BT 56.17 405.10 Td ( Preferred Stock\), for an aggregate purchase price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.73 405.10 Td ($480,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.23 405.10 Td (. ) Tj ET Q q 0 0 0 rg BT 317.18 405.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.62 405.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.45 405.10 Td (, the Series ) Tj ET Q q 0 0 0 rg BT 443.55 405.10 Td (A) Tj ET Q q 0 0 0 rg BT 450.22 405.10 Td ( Preferred Stock, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 393.10 Td (accrued but unpaid dividends, represents a stake of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.08 393.10 Td (18%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.41 393.10 Td ( of Pandora's common stock outstanding and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 381.10 Td (approximately a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.70 381.10 Td (15%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.03 381.10 Td ( interest on an as-converted basis. Pandora operates an internet-based music discovery platform, of) Tj ET Q q 0 0 0 rg BT 532.49 381.10 Td (fering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 369.10 Td (a personalized experience for listeners.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 345.10 Td (The Series ) Tj ET Q q 0 0 0 rg BT 120.93 345.10 Td (A) Tj ET Q q 0 0 0 rg BT 127.60 345.10 Td ( Preferred Stock is convertible at the option of the holders at any time into shares of common stock of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 333.10 Td (Pandora \(Pandora Common Stock\) at an initial conversion price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.76 333.10 Td ($10.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.26 333.10 Td ( per share of Pandora Common Stock and an initial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 321.10 Td (conversion rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.19 321.10 Td (95.2381) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.69 321.10 Td ( shares of Pandora Common Stock per share of Series ) Tj ET Q q 0 0 0 rg BT 373.87 321.10 Td (A) Tj ET Q q 0 0 0 rg BT 380.54 321.10 Td ( Preferred Stock, subject to certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 309.10 Td (customary anti-dilution adjustments. Holders of the Series ) Tj ET Q q 0 0 0 rg BT 286.96 309.10 Td (A) Tj ET Q q 0 0 0 rg BT 293.63 309.10 Td ( Preferred Stock are entitled to a cumulative dividend at the rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 297.10 Td (6.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.33 297.10 Td ( per annum, payable quarterly in arrears, if and when declared. Pandora has the option to pay dividends in cash when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 285.10 Td (authorized by their Board and declared by Pandora or accumulate dividends in lieu of paying cash. ) Tj ET Q q 0 0 0 rg BT 448.82 285.10 Td (Any conversion of Series ) Tj ET Q q 0 0 0 rg BT 552.13 285.10 Td (A) Tj ET Q q 0 0 0 rg BT 558.80 285.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 273.10 Td (Preferred Stock may be settled by Pandora, at its option, in shares of Pandora Common Stock, cash or any combination thereof. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 261.10 Td (However) Tj ET Q q 0 0 0 rg BT 85.75 261.10 Td (, unless and until Pandora) Tj ET Q q 0 0 0 rg BT 191.57 261.10 Td (s stockholders have approved the issuance of greater than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.99 261.10 Td (19.99%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.82 261.10 Td ( of the outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 249.10 Td (Pandora Common Stock, the Series ) Tj ET Q q 0 0 0 rg BT 193.38 249.10 Td (A) Tj ET Q q 0 0 0 rg BT 200.05 249.10 Td ( Preferred Stock may not be converted into more than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.20 249.10 Td (19.99%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.03 249.10 Td ( of Pandora) Tj ET Q q 0 0 0 rg BT 496.91 249.10 Td (s outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 237.10 Td (Pandora Common Stock as of June 9, 2017. ) Tj ET Q q 0 0 0 rg BT 229.58 237.10 Td (The liquidation preference of the Series ) Tj ET Q q 0 0 0 rg BT 390.08 237.10 Td (A) Tj ET Q q 0 0 0 rg BT 396.75 237.10 Td ( Preferred Stock, including accrued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 225.10 Td (dividends of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.72 225.10 Td ($25,684) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.22 225.10 Td (, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.27 225.10 Td ($505,684) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.77 225.10 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.93 225.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.76 225.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 201.10 Td (The investment includes a mandatory redemption feature on any date from and after September 22, 2022 whereby we, at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 189.10 Td (our option, may require Pandora to purchase the Series ) Tj ET Q q 0 0 0 rg BT 271.11 189.10 Td (A) Tj ET Q q 0 0 0 rg BT 277.78 189.10 Td ( Preferred Stock at a price equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.83 189.10 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.16 189.10 Td ( of the liquidation preference ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 177.10 Td (plus accrued but unpaid dividends for) Tj ET Q q 0 0 0 rg BT 199.90 177.10 Td (, at the election of Pandora, cash, shares of Pandora Common Stock or a combination ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 165.10 Td (thereof, and as such the investment qualifies as a debt security under ) Tj ET Q q 0 0 0 rg BT 325.80 165.10 Td (ASC 320, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 367.76 165.10 Td (Investments-Debt and Equity Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.77 165.10 Td (. ) Tj ET Q q 0 0 0 rg BT 532.72 165.10 Td (As the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 153.10 Td (investment includes a conversion option, we have elected to account for this investment under the fair value option to reduce ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 141.10 Td (the accounting asymmetry that would otherwise arise when recognizing the changes in the fair value of available-for) Tj ET Q q 0 0 0 rg BT 515.79 141.10 Td (-sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 129.10 Td (investments. Under the fair value option, any gains \(losses\) associated with the change in fair value will be recognized in Other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 117.10 Td (income within our unaudited consolidated statements of comprehensive income. ) Tj ET Q q 0 0 0 rg BT 375.25 117.10 Td (An ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.97 117.10 Td ($86,074) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.47 117.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.91 117.10 Td ($1) Tj ET Q q 0 0 0 rg BT 451.54 117.10 Td (17,449) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.04 117.10 Td ( unrealized gain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 105.10 Td (associated with this investment was recognized during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.44 105.10 Td (three and six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.48 105.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.36 105.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.19 105.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 504.85 105.10 Td (, as Other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 93.10 Td (income in our unaudited consolidated statements of comprehensive income. ) Tj ET Q q 0 0 0 rg BT 357.84 93.10 Td (The fair value of our investment, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 81.10 Td (accrued dividends, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.63 81.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.46 81.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.90 81.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.48 81.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.04 81.10 Td ($597,921) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.54 81.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.97 81.10 Td ($480,472) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.47 81.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 470.13 81.10 Td (, and is recorded as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 69.10 Td (related party long-term asset within our unaudited consolidated balance sheets. ) Tj ET Q q 0 0 0 rg BT 369.77 69.10 Td (This investment does not meet the requirements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 57.10 Td (for the equity method of accounting as it does not qualify as in-substance common stock.) Tj ET Q endstream endobj 41 0 obj <>] /Rotate 0 /Contents 42 0 R>> endobj 42 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 760.60 Td (SIRIUS XM RADIO INC. ) Tj ET Q q 0 0 0 rg BT 315.43 760.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.05 748.60 Td (\(a wholly-owned subsidiary of Sirius XM Holdings Inc.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.60 736.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.82 736.60 Td (T) Tj ET Q q 0 0 0 rg BT 191.31 736.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.41 736.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.59 736.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.58 736.60 Td (A) Tj ET Q q 0 0 0 rg BT 361.06 736.60 Td (TEMENTS - Continued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.35 724.60 Td (\(UNAUDITED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.75 712.60 Td (\(Dollars and shar) Tj ET Q q 0 0 0 rg BT 252.02 712.60 Td (es in thousands, except per) Tj ET Q q 0 0 0 rg BT 366.02 712.60 Td ( shar) Tj ET Q q 0 0 0 rg BT 387.23 712.60 Td (e amounts\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 695.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 695.10 Td (e have appointed James E. Meyer) Tj ET Q q 0 0 0 rg BT 219.13 695.10 Td (, our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 317.53 695.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 335.45 695.10 Td (, David J. Frear) Tj ET Q q 0 0 0 rg BT 396.97 695.10 Td (, our Senior Executive ) Tj ET Q q 0 0 0 rg BT 488.71 695.10 Td (V) Tj ET Q q 0 0 0 rg BT 495.33 695.10 Td (ice President ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 141.24 683.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 159.15 683.10 Td (, and Gregory B. Maf) Tj ET Q q 0 0 0 rg BT 245.06 683.10 Td (fei, the Chairman of Holdings' Board of Directors, to Pandora) Tj ET Q q 0 0 0 rg BT 494.86 683.10 Td (s Board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (Directors pursuant to our designation rights under the Investment ) Tj ET Q q 0 0 0 rg BT 312.50 671.10 Td (Agreement. Mr) Tj ET Q q 0 0 0 rg BT 376.10 671.10 Td (. Maf) Tj ET Q q 0 0 0 rg BT 397.58 671.10 Td (fei also serves as the Chairman of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (Pandora's Board of Directors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 635.10 Td (Our right to designate directors will fall away once we and our af) Tj ET Q q 0 0 0 rg BT 337.34 635.10 Td (filiates fail to beneficially own shares of Series ) Tj ET Q q 0 0 0 rg BT 527.28 635.10 Td (A) Tj ET Q q 0 0 0 rg BT 533.95 635.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (Preferred Stock and/or Pandora Common Stock issued upon conversion thereof equal to \(on an as-converted basis\) at least 50% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (of the number of shares of Pandora Common Stock issuable upon conversion of the Series ) Tj ET Q q 0 0 0 rg BT 413.04 611.10 Td (A) Tj ET Q q 0 0 0 rg BT 419.71 611.10 Td ( Preferred Stock purchased under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (the Investment ) Tj ET Q q 0 0 0 rg BT 110.60 599.10 Td (Agreement. Following the earlier to occur of \(i\)September 22, 2019 and \(ii\)the date on which we and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 587.10 Td (filiates fail to beneficially own shares of Series ) Tj ET Q q 0 0 0 rg BT 247.03 587.10 Td (A) Tj ET Q q 0 0 0 rg BT 253.70 587.10 Td ( Preferred Stock and/or Pandora Common Stock that were issued upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.10 Td (conversion thereof equal to \(on an as-converted basis\) at least 75% of the number of shares of Pandora Common Stock issuable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (upon conversion of the Series ) Tj ET Q q 0 0 0 rg BT 170.31 563.10 Td (A) Tj ET Q q 0 0 0 rg BT 176.98 563.10 Td ( Preferred Stock purchased under the Investment ) Tj ET Q q 0 0 0 rg BT 373.86 563.10 Td (Agreement, we have the right to designate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (only two directors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 527.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 527.10 Td (e are subject to certain standstill restrictions, including, among other things, that we are restricted from acquiring ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.10 Td (additional securities of Pandora until December 9, 2018.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 491.10 Td (Except as to matters that may be voted upon separately by holders of the Series ) Tj ET Q q 0 0 0 rg BT 395.58 491.10 Td (A) Tj ET Q q 0 0 0 rg BT 402.25 491.10 Td ( Preferred Stock, we are entitled to vote ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (as a single class with the holders of Pandora Common Stock on an as-converted basis \(up to a maximum of 19.99% of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (Pandora Common Stock outstanding on June 9, 2017, unless stockholder approval has been received\). ) Tj ET Q q 0 0 0 rg BT 463.13 467.10 Td (W) Tj ET Q q 0 0 0 rg BT 471.77 467.10 Td (e are also entitled to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (separate class vote with respect to certain amendments to Pandora) Tj ET Q q 0 0 0 rg BT 316.35 455.10 Td (s or) Tj ET Q q 0 0 0 rg BT 330.89 455.10 Td (ganizational documents, issuances by Pandora of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (securities that are senior to, or equal in priority with, the Series ) Tj ET Q q 0 0 0 rg BT 303.32 443.10 Td (A) Tj ET Q q 0 0 0 rg BT 309.99 443.10 Td ( Preferred Stock and the incurrence of certain indebtedness by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (Pandora.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 407.10 Td (Upon certain change of control events involving Pandora, Pandora is required to repurchase all of the Series ) Tj ET Q q 0 0 0 rg BT 510.81 407.10 Td (A) Tj ET Q q 0 0 0 rg BT 517.48 407.10 Td ( Preferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (Stock at a price equal to the greater of \(1\)an amount in cash equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.73 395.10 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.06 395.10 Td ( of the liquidation preference thereof plus all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (accrued but unpaid dividends through June 9, 2022 \(assuming such shares of Series ) Tj ET Q q 0 0 0 rg BT 385.55 383.10 Td (A) Tj ET Q q 0 0 0 rg BT 392.22 383.10 Td ( Preferred Stock remain outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (through such date\) and \(2\)the consideration the holders would have received if they had converted their shares of Series ) Tj ET Q q 0 0 0 rg BT 533.23 371.10 Td (A) Tj ET Q q 0 0 0 rg BT 539.90 371.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (Preferred Stock into Pandora Common Stock immediately prior to the change of control event \(disregarding the 19.99% cap\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 335.10 Td (Beginning on September 22, 2020, if the volume weighted average price per share of Pandora Common Stock exceeds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.10 Td ($18.375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 323.10 Td (, as may be adjusted, for at least ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.51 323.10 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.51 323.10 Td ( trading days in any period of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.76 323.10 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.76 323.10 Td ( consecutive trading days, Pandora may redeem all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.10 Td (of the outstanding Series ) Tj ET Q q 0 0 0 rg BT 150.60 311.10 Td (A) Tj ET Q q 0 0 0 rg BT 157.27 311.10 Td ( Preferred Stock at a price equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.32 311.10 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.65 311.10 Td ( of the liquidation preference thereof plus all accrued but ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.10 Td (unpaid dividends for) Tj ET Q q 0 0 0 rg BT 131.86 299.10 Td (, at the election of Pandora, cash, shares of Pandora Common Stock or a combination thereof, provided ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.10 Td (that, unless stockholder approval has been received, Pandora may not settle the redemption for shares of Pandora Common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.10 Td (Stock to the extent the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.42 275.10 Td (19.99%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.25 275.10 Td ( cap would be exceeded. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 251.10 Td (Pursuant to a registration rights agreement entered into with Pandora, Sirius XM has certain customary registration rights ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.10 Td (with respect to the Series ) Tj ET Q q 0 0 0 rg BT 151.98 239.10 Td (A) Tj ET Q q 0 0 0 rg BT 158.65 239.10 Td ( Preferred Stock and Pandora Common Stock issued upon conversion thereof.) Tj ET Q endstream endobj 43 0 obj <>] /Rotate 0 /Contents 44 0 R>> endobj 44 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 760.60 Td (SIRIUS XM RADIO INC. ) Tj ET Q q 0 0 0 rg BT 315.43 760.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.05 748.60 Td (\(a wholly-owned subsidiary of Sirius XM Holdings Inc.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.60 736.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.82 736.60 Td (T) Tj ET Q q 0 0 0 rg BT 191.31 736.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.41 736.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.59 736.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.58 736.60 Td (A) Tj ET Q q 0 0 0 rg BT 361.06 736.60 Td (TEMENTS - Continued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.35 724.60 Td (\(UNAUDITED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.75 712.60 Td (\(Dollars and shar) Tj ET Q q 0 0 0 rg BT 252.02 712.60 Td (es in thousands, except per) Tj ET Q q 0 0 0 rg BT 366.02 712.60 Td ( shar) Tj ET Q q 0 0 0 rg BT 387.23 712.60 Td (e amounts\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (20) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 695.25 Td (\(10\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 695.25 Td (Debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 671.25 Td (Our debt as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.93 671.25 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.76 671.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.20 671.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.78 671.25 Td ( consisted of the following:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 615.75 40.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 90.00 615.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.00 615.75 47.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 141.00 615.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 145.00 615.75 78.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 615.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 615.75 60.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 615.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 615.75 62.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 615.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 615.75 68.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 615.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 615.75 59.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 615.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 615.75 71.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 557.75 40.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 90.00 557.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.00 557.75 47.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 141.00 557.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 145.00 557.75 78.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 557.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 557.75 60.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 557.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 557.75 62.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 557.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 557.75 68.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 557.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 557.75 59.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 557.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 557.75 71.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 499.75 40.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 90.00 499.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.00 499.75 47.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 141.00 499.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 145.00 499.75 78.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 499.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 499.75 60.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 499.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 499.75 62.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 499.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 499.75 68.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 499.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 499.75 59.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 499.75 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 499.75 71.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 441.75 40.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 90.00 441.75 4.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 94.00 441.75 47.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 141.00 441.75 4.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 145.00 441.75 78.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 441.75 4.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 441.75 60.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 287.00 441.75 4.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 291.00 441.75 62.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 353.00 441.75 4.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.00 441.75 68.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 441.75 4.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 441.75 59.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 441.75 4.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 441.75 71.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 391.75 375.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 391.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 391.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 391.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 391.75 71.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 365.75 375.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 365.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 365.75 59.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 365.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 365.75 71.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 644.75 m 488 644.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 644.75 m 492 644.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 644.75 m 563 644.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 615.75 m 90 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 94 615.75 m 141 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 145 615.75 m 223 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227 615.75 m 287 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 615.75 m 353 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 615.75 m 425 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 615.75 m 488 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 615.75 m 563 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 391.75 m 488 391.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 391.75 m 563 391.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 352.75 m 488 352.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 340.75 m 488 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 338.75 m 488 338.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 352.75 m 563 352.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 340.75 m 563 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 338.75 m 563 338.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 648.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 96.50 648.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 147.50 648.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 229.50 648.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 293.50 648.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.50 648.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.25 648.98 Td (Carrying value) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 514.02 652.61 Td (\(a\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.09 648.98 Td ( at) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 57.00 627.98 Td (Issuer) Tj ET Q q 0 0 0 rg BT 77.75 627.98 Td ( / ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.95 619.98 Td (Borr) Tj ET Q q 0 0 0 rg BT 69.24 619.98 Td (ower) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 106.10 619.98 Td (Issued) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 175.25 619.98 Td (Debt) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 231.95 619.98 Td (Maturity Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 293.65 619.98 Td (Inter) Tj ET Q q 0 0 0 rg BT 310.83 619.98 Td (est Payable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.90 627.98 Td (Principal ) Tj ET Q q 0 0 0 rg BT 393.23 627.98 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 362.90 619.98 Td (at June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.75 619.98 Td (June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 494.75 619.98 Td (December) Tj ET Q q 0 0 0 rg BT 529.25 619.98 Td ( 31, 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 607.70 Td (Sirius XM ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 599.70 Td (\(b\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 96.50 607.70 Td (July 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 147.50 607.70 Td (3.875% Senior Notes) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 229.50 607.70 Td (August 1, 2022) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 607.70 Td (semi-annually on ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 599.70 Td (February 1and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 591.70 Td (August 1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.50 607.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.80 607.70 Td (1,000,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.50 607.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 458.80 607.70 Td (992,81) Tj ET Q q 0 0 0 rg BT 480.80 607.70 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.50 607.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 607.70 Td (992,01) Tj ET Q q 0 0 0 rg BT 555.80 607.70 Td (1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 578.70 Td (Sirius XM ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 570.70 Td (\(b\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 96.50 578.70 Td (May 2013) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 147.50 578.70 Td (4.625% Senior Notes) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 229.50 578.70 Td (May 15, 2023) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 578.70 Td (semi-annually on ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 570.70 Td (May15and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 562.70 Td (November15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 395.80 578.70 Td (500,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 458.80 578.70 Td (496,923) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 578.70 Td (496,646) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 549.70 Td (Sirius XM ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 541.70 Td (\(b\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 96.50 549.70 Td (May 2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 147.50 549.70 Td (6.00% Senior Notes) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 229.50 549.70 Td (July 15, 2024) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 549.70 Td (semi-annually on ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 541.70 Td (January15 and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 533.70 Td (July15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.80 549.70 Td (1,500,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 452.75 549.70 Td (1,488,758) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 527.80 549.70 Td (1,488,002) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 520.70 Td (Sirius XM ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 512.70 Td (\(b\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 96.50 520.70 Td (March 2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 147.50 520.70 Td (5.375% Senior Notes) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 229.50 520.70 Td (April 15, 2025) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 520.70 Td (semi-annually on) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 512.70 Td (April15and) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 504.70 Td (October15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.80 520.70 Td (1,000,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 458.80 520.70 Td (991,777) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 520.70 Td (991,285) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 491.70 Td (Sirius XM ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 483.70 Td (\(b\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 96.50 491.70 Td (May 2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 147.50 491.70 Td (5.375% Senior Notes) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 229.50 491.70 Td (July 15, 2026) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 491.70 Td (semi-annually on) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 483.70 Td (January 15and) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 475.70 Td (July15) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.80 491.70 Td (1,000,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 458.80 491.70 Td (990,597) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 491.70 Td (990,138) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 462.70 Td (Sirius XM ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 454.70 Td (\(b\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 96.50 462.70 Td (July 2017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 147.50 462.70 Td (5.00% Senior Notes) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 229.50 462.70 Td (August 1, 2027) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 462.70 Td (semi-annually on) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 454.70 Td (February 1and) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 446.70 Td (August 1) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.80 462.70 Td (1,500,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 452.75 462.70 Td (1,486,728) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 527.80 462.70 Td (1,486,162) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 433.70 Td (Sirius XM ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 425.70 Td (\(c\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 96.50 433.70 Td (December ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 96.50 425.70 Td (2012) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 147.50 433.70 Td (Senior Secured ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 147.50 425.70 Td (Revolving Credit ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 147.50 417.70 Td (Facility \(the "Credit ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 147.50 409.70 Td (Facility"\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 229.50 433.70 Td (June 29, 2023) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 433.70 Td (variable fee paid ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 425.70 Td (quarterly) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 389.80 433.70 Td (1,750,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.80 433.70 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.80 433.70 Td (300,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 396.70 Td (Sirius XM) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 96.50 396.70 Td (V) Tj ET Q q 0 0 0 rg BT 101.39 396.70 Td (arious) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 147.50 396.70 Td (Capital leases) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 229.50 396.70 Td (V) Tj ET Q q 0 0 0 rg BT 234.39 396.70 Td (arious) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 293.50 396.70 Td ( n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.70 396.70 Td ( n/a) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.80 396.70 Td (8,324) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.80 396.70 Td (10,597) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 383.70 Td (T) Tj ET Q q 0 0 0 rg BT 56.83 383.70 Td (otal Debt) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 452.75 383.70 Td (6,455,918) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 527.80 383.70 Td (6,754,841) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 370.70 Td (Less: total current maturities) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.80 370.70 Td (4,660) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 370.70 Td (5,105) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 64.50 357.70 Td (Less: total deferred financing costs for Notes) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 466.80 357.70 Td (7,969) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 541.80 357.70 Td (8,493) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 344.70 Td (T) Tj ET Q q 0 0 0 rg BT 56.83 344.70 Td (otal long-term debt) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 431.50 344.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 452.75 344.70 Td (6,443,289) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.50 344.70 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 527.80 344.70 Td (6,741,243) Tj ET Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 323.45 Td (\(a\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 323.45 Td (The carrying value of the obligations is net of any remaining unamortized original issue discount.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 312.65 Td (\(b\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 312.65 Td (Substantially all of our domestic wholly-owned subsidiaries have guaranteed these notes.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 301.85 Td (\(c\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 301.85 Td (In June 2018, we entered into an amendment to extend the maturity of the Credit Facility to June 2023. Our obligations under the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 291.05 Td (Credit Facility are guaranteed by certain of our material domestic subsidiaries and are secured by a lien on substantially all of our ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 280.25 Td (assets and the assets of our material domestic subsidiaries.Interest on borrowings is payable on a monthly basis and accrues at a rate ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 269.45 Td (based on LIBOR plus an applicable rate.) Tj ET Q q 0 0 0 rg BT 227.04 269.45 Td (W) Tj ET Q q 0 0 0 rg BT 234.82 269.45 Td (e are also required to pay a variable fee on the average daily unused portion of the Credit ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 258.65 Td (Facility which is payable on a quarterly basis.) Tj ET Q q 0 0 0 rg BT 245.79 258.65 Td (The variable rate for the unused portion of the Credit Facility was ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 484.72 258.65 Td (0.25%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 507.97 258.65 Td ( per annum as ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 247.85 Td (of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 86.25 247.85 Td (June30, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 136.49 247.85 Td (. Our outstanding borrowings under the Credit Facility are classified as Long-term debt within our unaudited ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 237.05 Td (consolidated balance sheets due to the long-term maturity of this debt.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.50 213.05 Td (Covenants and Restrictions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 195.05 Td (Under the Credit Facility) Tj ET Q q 0 0 0 rg BT 177.10 195.05 Td (, we must comply with a debt maintenance covenant that cannot exceed a total leverage ratio, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 183.05 Td (calculated as consolidated total debt to consolidated operating cash flow) Tj ET Q q 0 0 0 rg BT 337.92 183.05 Td (, of 5.0 to 1.0.) Tj ET Q q 0 0 0 rg BT 398.85 183.05 Td (The Credit Facility generally requires ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 171.05 Td (compliance with certain covenants that restrict our ability to, among other things, \(i\)incur additional indebtedness, \(ii\)incur ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 159.05 Td (liens, \(iii\)pay dividends or make certain other restricted payments, investments or acquisitions, \(iv\)enter into certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 147.05 Td (transactions with af) Tj ET Q q 0 0 0 rg BT 127.63 147.05 Td (filiates, \(v\)mer) Tj ET Q q 0 0 0 rg BT 189.37 147.05 Td (ge or consolidate with another person, \(vi\)sell, assign, lease or otherwise dispose of all or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 135.05 Td (substantially all of our assets, and \(vii\)make voluntary prepayments of certain debt, in each case subject to exceptions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 111.05 Td (The indentures governing our notes restrict our non-guarantor subsidiaries' ability to create, assume, incur or guarantee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 99.05 Td (additional indebtedness without such non-guarantor subsidiary guaranteeing each such series of notes on a pari passu ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 87.05 Td (basis.) Tj ET Q q 0 0 0 rg BT 76.82 87.05 Td (The indentures governing the notes also contain covenants that, among other things, limit our ability and the ability of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 75.05 Td (our subsidiaries to create certain liens; enter into sale/leaseback transactions; and mer) Tj ET Q q 0 0 0 rg BT 391.13 75.05 Td (ge or consolidate.) Tj ET Q endstream endobj 45 0 obj <>] /Rotate 0 /Contents 46 0 R>> endobj 46 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 760.60 Td (SIRIUS XM RADIO INC. ) Tj ET Q q 0 0 0 rg BT 315.43 760.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.05 748.60 Td (\(a wholly-owned subsidiary of Sirius XM Holdings Inc.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.60 736.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.82 736.60 Td (T) Tj ET Q q 0 0 0 rg BT 191.31 736.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.41 736.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.59 736.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.58 736.60 Td (A) Tj ET Q q 0 0 0 rg BT 361.06 736.60 Td (TEMENTS - Continued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.35 724.60 Td (\(UNAUDITED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.75 712.60 Td (\(Dollars and shar) Tj ET Q q 0 0 0 rg BT 252.02 712.60 Td (es in thousands, except per) Tj ET Q q 0 0 0 rg BT 366.02 712.60 Td ( shar) Tj ET Q q 0 0 0 rg BT 387.23 712.60 Td (e amounts\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 695.10 Td (Under our debt agreements, the following generally constitute an event of default: \(i\)a default in the payment of interest; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (\(ii\)a default in the payment of principal; \(iii\)failure to comply with covenants; \(iv\)failure to pay other indebtedness after final ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (maturity or acceleration of other indebtedness exceeding a specified amount; \(v\)certain events of bankruptcy; \(vi\)a judgment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (for payment of money exceeding a specified aggregate amount; and \(vii\)voidance of subsidiary guarantees, subject to grace ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (periods where applicable.If an event of default occurs and is continuing, our debt could become immediately due and payable.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 623.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 623.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.83 623.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.27 623.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.85 623.10 Td (, we were in compliance with our debt covenants.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (\(1) Tj ET Q q 0 0 0 rg BT 57.28 599.10 Td (1\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 599.10 Td (Stockholder) Tj ET Q q 0 0 0 rg BT 127.99 599.10 Td ( Equity) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.00 581.10 Td (Common Stock, par value ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 172.17 581.10 Td ($0.001) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 199.67 581.10 Td ( per share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 563.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 563.10 Td (e are authorized to issue up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.04 563.10 Td (9,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.04 563.10 Td ( shares of common stock. ) Tj ET Q q 0 0 0 rg BT 353.41 563.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.86 563.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.69 563.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.13 563.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.13 563.10 Td (, there were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.54 563.10 Td (one ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (thousand) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.61 551.10 Td ( shares of common stock of Sirius XM issued and outstanding, which were owned by Holdings.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.00 527.10 Td (Preferred Stock, par value ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 173.82 527.10 Td ($0.001) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 201.32 527.10 Td ( per share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 509.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 509.10 Td (e are authorized to issue up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.04 509.10 Td (50,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.54 509.10 Td ( shares of undesignated preferred stock with a liquidation preference of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.93 509.10 Td ($0.001) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.43 509.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.10 Td (per share. ) Tj ET Q q 0 0 0 rg BT 93.19 497.10 Td (There were no shares of preferred stock issued or outstanding as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 497.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.48 497.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.92 497.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.92 497.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 473.10 Td (\(12\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 473.10 Td (Benefit Plans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 455.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 455.10 Td (e recognized share-based payment expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.61 455.10 Td ($36,215) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.11 455.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.54 455.10 Td ($30,251) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.04 455.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.42 455.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.36 455.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.23 455.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.06 455.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td ($70,448) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 443.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.44 443.10 Td ($59,697) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.94 443.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.32 443.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.93 443.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.81 443.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.64 443.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.08 443.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.08 443.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 385.74 443.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 413.10 Td (2015 Long-T) Tj ET Q q 0 0 0 rg BT 120.19 413.10 Td (erm Stock Incentive Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 395.10 Td (In May 2015, Holdings' stockholders approved the Sirius XM Holdings Inc. 2015 Long-T) Tj ET Q q 0 0 0 rg BT 436.34 395.10 Td (erm Stock Incentive Plan \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (2015 Plan\).Employees, consultants and members of Holdings' board of directors are eligible to receive awards under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (2015 Plan.) Tj ET Q q 0 0 0 rg BT 97.10 371.10 Td (The 2015 Plan provides for the grant of stock options, restricted stock awards, restricted stock units and other stock-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (based awards that the compensation committee of Holdings' board of directors deems appropriate.Stock-based awards granted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.10 Td (under the 2015 Plan are generally subject to a graded vesting requirement, which is generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.93 347.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.92 347.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.69 347.10 Td (four years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.95 347.10 Td ( from the grant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 335.10 Td (date.Stock options generally expire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.07 335.10 Td (ten years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.88 335.10 Td ( from the date of grant.Restricted stock units include performance-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.10 Td (restricted stock units \(PRSUs\), the vesting of which are subject to the achievement of performance goals and the employee's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.10 Td (continued employment and generally clif) Tj ET Q q 0 0 0 rg BT 213.71 311.10 Td (f vest on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.36 311.10 Td (third) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.25 311.10 Td ( anniversary of the grant date. Each restricted stock unit entitles the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.10 Td (holder to receive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.19 299.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.63 299.10 Td ( share of common stock upon vesting.) Tj ET Q q 0 0 0 rg BT 289.99 299.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.44 299.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.27 299.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.27 299.10 Td (171,619) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.77 299.10 Td ( shares of common stock were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.10 Td (available for future grants under the 2015 Plan.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 257.10 Td (Other Plans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 239.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 239.10 Td (e maintain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.57 239.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.55 239.10 Td ( other share-based benefit plans the Sirius XM Radio Inc. 2009 Long-T) Tj ET Q q 0 0 0 rg BT 446.84 239.10 Td (erm Stock Incentive Plan, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.10 Td (the XM 2007 Stock Incentive Plan and the ) Tj ET Q q 0 0 0 rg BT 221.69 227.10 Td (Amended and Restated Sirius Satellite Radio 2003 Long-T) Tj ET Q q 0 0 0 rg BT 456.79 227.10 Td (erm Stock Incentive Plan. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.10 Td (Excluding dividend equivalent units granted as a result of a declared dividend, no further awards may be made under these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td (plans.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 179.10 Td (The following table summarizes the weighted-average assumptions used to compute the fair value of options granted to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.10 Td (employees and members of Holdings' board of directors:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 130.60 221.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.00 130.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.00 130.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 130.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 130.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 130.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 130.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 130.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 100.60 221.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.00 100.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.00 100.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 100.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.00 100.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 100.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 100.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 100.60 70.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270 143.60000000000002 m 340 143.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340 143.60000000000002 m 344 143.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 143.60000000000002 m 414 143.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 143.60000000000002 m 488 143.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 143.60000000000002 m 492 143.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 143.60000000000002 m 562 143.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270 130.60000000000002 m 340 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 130.60000000000002 m 414 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 130.60000000000002 m 488 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 130.60000000000002 m 562 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270 130.60000000000002 m 340 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 130.60000000000002 m 414 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 130.60000000000002 m 488 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 130.60000000000002 m 562 130.60000000000002 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 147.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 276.45 147.83 Td (For) Tj ET Q q 0 0 0 rg BT 288.82 147.83 Td ( the ) Tj ET Q q 0 0 0 rg BT 303.33 147.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 316.53 147.83 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 429.20 147.83 Td (For) Tj ET Q q 0 0 0 rg BT 441.57 147.83 Td ( the Six Months Ended June 30,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 134.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.50 134.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 370.50 134.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 444.50 134.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 518.50 134.83 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 121.17 Td (Risk-free interest rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.05 120.27 Td (2.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.05 120.27 Td (1.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.05 120.27 Td (2.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.05 120.27 Td (1.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 106.17 Td (Expected life of options years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.75 105.27 Td (3.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.75 105.27 Td (4.35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.75 105.27 Td (3.54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.75 105.27 Td (4.07) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 91.17 Td (Expected stock price volatility) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.30 90.27 Td (22%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.30 90.27 Td (26%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.30 90.27 Td (22%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.30 90.27 Td (26%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 76.17 Td (Expected dividend yield) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.05 75.27 Td (0.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.05 75.27 Td (0.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.05 75.27 Td (0.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.05 75.27 Td (0.8%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 53.10 Td (There were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.24 53.10 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.24 53.10 Td ( options granted to third parties during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.32 53.10 Td (three and six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.37 53.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.24 53.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.07 53.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.51 53.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.51 53.10 Td (.) Tj ET Q endstream endobj 47 0 obj <>] /Rotate 0 /Contents 48 0 R>> endobj 48 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 760.60 Td (SIRIUS XM RADIO INC. ) Tj ET Q q 0 0 0 rg BT 315.43 760.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.05 748.60 Td (\(a wholly-owned subsidiary of Sirius XM Holdings Inc.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.60 736.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.82 736.60 Td (T) Tj ET Q q 0 0 0 rg BT 191.31 736.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.41 736.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.59 736.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.58 736.60 Td (A) Tj ET Q q 0 0 0 rg BT 361.06 736.60 Td (TEMENTS - Continued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.35 724.60 Td (\(UNAUDITED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.75 712.60 Td (\(Dollars and shar) Tj ET Q q 0 0 0 rg BT 252.02 712.60 Td (es in thousands, except per) Tj ET Q q 0 0 0 rg BT 366.02 712.60 Td ( shar) Tj ET Q q 0 0 0 rg BT 387.23 712.60 Td (e amounts\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 671.10 Td (The following table summarizes stock option activity under Holdings' share-based plans for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.71 671.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.33 671.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 659.10 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 603.60 257.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.00 603.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.00 603.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.00 603.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 603.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.00 603.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 603.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 603.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 573.60 257.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.00 573.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.00 573.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.00 573.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 573.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.00 573.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 573.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 573.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 543.60 257.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.00 543.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.00 543.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.00 543.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 543.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.00 543.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 543.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 543.60 61.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 603.6 m 368 603.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 603.6 m 433 603.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 603.6 m 498 603.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 603.6 m 563 603.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 603.6 m 368 603.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 543.6 m 368 543.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 529.6 m 368 529.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 527.6 m 368 527.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 608.27 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 323.40 607.83 Td (Options) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.40 631.83 Td (W) Tj ET Q q 0 0 0 rg BT 391.96 631.83 Td (eighted-) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 388.05 623.83 Td (A) Tj ET Q q 0 0 0 rg BT 393.23 623.83 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 387.60 615.83 Td (Exer) Tj ET Q q 0 0 0 rg BT 403.89 615.83 Td (cise) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 375.25 607.83 Td (Price Per) Tj ET Q q 0 0 0 rg BT 406.86 607.83 Td ( Shar) Tj ET Q q 0 0 0 rg BT 425.16 607.83 Td (e) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.40 639.83 Td (W) Tj ET Q q 0 0 0 rg BT 456.96 639.83 Td (eighted-) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.05 631.83 Td (A) Tj ET Q q 0 0 0 rg BT 458.23 631.83 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.30 623.83 Td (Remaining) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.30 615.83 Td (Contractual) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 444.55 607.83 Td (T) Tj ET Q q 0 0 0 rg BT 449.15 607.83 Td (erm \(Y) Tj ET Q q 0 0 0 rg BT 472.47 607.83 Td (ears\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 514.50 623.83 Td (Aggr) Tj ET Q q 0 0 0 rg BT 531.68 623.83 Td (egate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.30 615.83 Td (Intrinsic) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.35 607.83 Td (V) Tj ET Q q 0 0 0 rg BT 527.39 607.83 Td (alue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 593.27 Td (Outstanding as of December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.65 593.27 Td (280,457) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.50 593.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 593.27 Td (3.76) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 579.17 Td (Granted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.65 578.27 Td (10,617) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.50 578.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 578.27 Td (6.44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 564.17 Td (Exercised) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.30 563.32 Td (\(41,644) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.15 563.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.50 563.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 563.27 Td (3.18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 549.17 Td (Forfeited, cancelled or expired) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.30 548.32 Td (\(1,926) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.15 548.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.50 548.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 548.27 Td (4.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 534.17 Td (Outstanding as of June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.65 533.27 Td (247,504) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.50 533.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 533.27 Td (3.96) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.00 533.27 Td (6.40) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 533.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 533.27 Td (695,499) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 519.17 Td (Exercisable as of June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.65 518.27 Td (1) Tj ET Q q 0 0 0 rg BT 336.65 518.27 Td (15,544) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.50 518.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 518.27 Td (3.40) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.00 518.27 Td (5.30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 518.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 518.27 Td (389,015) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 496.10 Td (The weighted average grant date fair value per share of stock options granted during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.08 496.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.70 496.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.58 496.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.41 496.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 484.10 Td (was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.55 484.10 Td ($1.19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.05 484.10 Td (.) Tj ET Q q 0 0 0 rg BT 97.37 484.10 Td (The total intrinsic value of stock options exercised during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.09 484.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.70 484.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.58 484.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.41 484.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.85 484.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.85 484.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 472.10 Td ($139,812) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 472.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.44 472.10 Td ($47,572) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.94 472.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 191.60 472.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 448.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 448.10 Td (e recognized share-based payment expense associated with stock options of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.04 448.10 Td ($20,776) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.54 448.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.97 448.10 Td ($20,125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.47 448.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.85 448.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.78 448.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 436.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 436.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.71 436.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.15 436.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.15 436.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 223.81 436.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.75 436.10 Td ($40,435) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.25 436.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.68 436.10 Td ($39,637) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.18 436.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.56 436.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.18 436.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.06 436.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.89 436.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.32 436.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.32 436.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 424.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 424.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 400.10 Td (The following table summarizes the restricted stock unit, including PRSU, activity under our share-based plans for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 388.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.12 388.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 388.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.83 388.10 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 48.00 348.60 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.00 348.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.00 348.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 348.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 48.00 318.60 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.00 318.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.00 318.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 318.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 48.00 288.60 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.00 288.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.00 288.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 288.60 75.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 348.6 m 482 348.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 348.6 m 561 348.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 348.6 m 482 348.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 288.6 m 482 288.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 274.6 m 482 274.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 272.6 m 482 272.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 353.27 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.50 352.83 Td (Shar) Tj ET Q q 0 0 0 rg BT 448.80 352.83 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.55 368.83 Td (Grant Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 505.15 360.83 Td (Fair) Tj ET Q q 0 0 0 rg BT 519.67 360.83 Td ( ) Tj ET Q q 0 0 0 rg BT 521.52 360.83 Td (V) Tj ET Q q 0 0 0 rg BT 526.56 360.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 506.15 352.83 Td (Per) Tj ET Q q 0 0 0 rg BT 517.99 352.83 Td ( Shar) Tj ET Q q 0 0 0 rg BT 536.30 352.83 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.50 338.27 Td (Nonvested as of December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.65 338.27 Td (31,323) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.50 338.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 338.27 Td (4.54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.50 323.27 Td (Granted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.65 323.27 Td (7,123) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.50 323.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 323.27 Td (6.27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.50 308.27 Td (V) Tj ET Q q 0 0 0 rg BT 75.17 308.27 Td (ested) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.30 308.32 Td (\(3,518) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.15 308.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.50 308.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 308.27 Td (3.92) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.50 293.27 Td (Forfeited) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.80 293.32 Td (\(569) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.15 293.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.50 293.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 293.27 Td (4.80) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.50 278.27 Td (Nonvested as of June 30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.65 278.27 Td (34,359) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.50 278.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 278.27 Td (4.93) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 256.10 Td (The total intrinsic value of restricted stock units, including PRSUs, vesting during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.73 256.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.35 256.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.22 256.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.05 256.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 244.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 244.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.44 244.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.99 244.10 Td ($22,656) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.49 244.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.93 244.10 Td ($4,802) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.43 244.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 239.09 244.10 Td (. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.14 244.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.75 244.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.63 244.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.46 244.10 Td (, we granted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.11 244.10 Td (3,768) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.61 244.10 Td ( PRSUs to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 232.10 Td (certain employees. ) Tj ET Q q 0 0 0 rg BT 129.29 232.10 Td (W) Tj ET Q q 0 0 0 rg BT 137.92 232.10 Td (e believe it is probable that the performance tar) Tj ET Q q 0 0 0 rg BT 326.55 232.10 Td (get applicable to these PRSUs will be achieved.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 208.10 Td (In connection with the cash dividends paid during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.39 208.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.01 208.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.89 208.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.72 208.10 Td (, we granted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.37 208.10 Td (126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.37 208.10 Td ( restricted stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 196.10 Td (units, including PRSUs, in accordance with the terms of existing award agreements. ) Tj ET Q q 0 0 0 rg BT 387.85 196.10 Td (These grants did not result in any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 184.10 Td (additional incremental share-based payment expense being recognized during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.43 184.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.05 184.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.92 184.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.75 184.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 160.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 160.10 Td (e recognized share-based payment expense associated with restricted stock units, including PRSUs, of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.42 160.10 Td ($15,439) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.92 160.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 148.10 Td ($10,126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 148.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.38 148.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.31 148.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.19 148.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.02 148.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.46 148.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.46 148.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 342.12 148.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.06 148.10 Td ($30,013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.56 148.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.99 148.10 Td ($20,060) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.49 148.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.87 148.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.49 148.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 136.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.33 136.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.77 136.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.77 136.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 197.43 136.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 112.10 Td (T) Tj ET Q q 0 0 0 rg BT 82.91 112.10 Td (otal unrecognized compensation costs related to unvested share-based payment awards for stock options and restricted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 100.10 Td (stock units, including PRSUs, granted to employees, members of Holdings' board of directors and third parties at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 100.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.83 100.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 88.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 88.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.02 88.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.57 88.10 Td ($251,588) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.07 88.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.51 88.10 Td ($241,521) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.01 88.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 312.67 88.10 Td (.) Tj ET Q q 0 0 0 rg BT 319.99 88.10 Td (The total unrecognized compensation costs at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.93 88.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.76 88.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 76.10 Td (are expected to be recognized over a weighted-average period of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.47 76.10 Td (1.72) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.97 76.10 Td ( years.) Tj ET Q endstream endobj 49 0 obj <>] /Rotate 0 /Contents 50 0 R>> endobj 50 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 760.60 Td (SIRIUS XM RADIO INC. ) Tj ET Q q 0 0 0 rg BT 315.43 760.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.05 748.60 Td (\(a wholly-owned subsidiary of Sirius XM Holdings Inc.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.60 736.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.82 736.60 Td (T) Tj ET Q q 0 0 0 rg BT 191.31 736.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.41 736.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.59 736.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.58 736.60 Td (A) Tj ET Q q 0 0 0 rg BT 361.06 736.60 Td (TEMENTS - Continued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.35 724.60 Td (\(UNAUDITED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.75 712.60 Td (\(Dollars and shar) Tj ET Q q 0 0 0 rg BT 252.02 712.60 Td (es in thousands, except per) Tj ET Q q 0 0 0 rg BT 366.02 712.60 Td ( shar) Tj ET Q q 0 0 0 rg BT 387.23 712.60 Td (e amounts\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (23) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.50 695.25 Td (401\(k\) Savings Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 677.25 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 677.25 Td (e sponsor the Sirius XM Radio Inc. 401\(k\) Savings Plan \(the Sirius XM Plan\) for eligible employees. ) Tj ET Q q 0 0 0 rg BT 502.84 677.25 Td (The Sirius ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.25 Td (XM Plan allows eligible employees to voluntarily contribute from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.39 665.25 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.72 665.25 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.50 665.25 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.83 665.25 Td ( of their pre-tax eligible earnings, subject to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 653.25 Td (certain defined limits. ) Tj ET Q q 0 0 0 rg BT 139.29 653.25 Td (W) Tj ET Q q 0 0 0 rg BT 147.93 653.25 Td (e match ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.80 653.25 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.13 653.25 Td ( of an employee) Tj ET Q q 0 0 0 rg BT 267.05 653.25 Td (s voluntary contributions per pay period on the first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.62 653.25 Td (6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.95 653.25 Td ( of an employee) Tj ET Q q 0 0 0 rg BT 555.87 653.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 641.25 Td (pre-tax salary up to a maximum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.29 641.25 Td (3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.62 641.25 Td ( of eligible compensation.) Tj ET Q q 0 0 0 rg BT 312.30 641.25 Td (W) Tj ET Q q 0 0 0 rg BT 320.94 641.25 Td (e may also make additional discretionary matching, true-up ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 629.25 Td (matching and non-elective contributions to the Sirius XM Plan.Employer matching contributions under the Sirius XM Plan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 617.25 Td (vest at a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.08 617.25 Td (33.33%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.91 617.25 Td ( for each year of employment and are fully vested after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.31 617.25 Td (three years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.89 617.25 Td ( of employment for all current and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.25 Td (future contributions.Our cash employer matching contributions are not used to purchase shares of Holdings' common stock on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 593.25 Td (the open market, unless the employee elects Holdings' common stock as their investment option for this contribution.) Tj ET Q q 0 0 0 rg BT 523.25 593.25 Td (W) Tj ET Q q 0 0 0 rg BT 531.89 593.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 581.25 Td (recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.86 581.25 Td ($2,159) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.36 581.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.80 581.25 Td ($1,835) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.30 581.25 Td ( in expense during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.39 581.25 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.33 581.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.21 581.25 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.04 581.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.47 581.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.47 581.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 475.13 581.25 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.07 581.25 Td ($4,028) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.57 581.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.25 Td ($3,517) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 569.25 Td ( in expense during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.81 569.25 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.43 569.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.31 569.25 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.14 569.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.57 569.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.57 569.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 388.24 569.25 Td (, in connection with the Sirius XM Plan.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.50 539.25 Td (Sirius XM Holdings Inc. Deferred Compensation Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 521.25 Td (In 2015, Holdings' adopted the Sirius XM Holdings Inc. Deferred Compensation Plan \(the DCP\). ) Tj ET Q q 0 0 0 rg BT 480.17 521.25 Td (The DCP) Tj ET Q q 0 0 0 rg BT 517.30 521.25 Td ( allows ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 509.25 Td (members of Holdings' board of directors and certain eligible employees to defer all or a portion of their base salary) Tj ET Q q 0 0 0 rg BT 508.55 509.25 Td (, cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.25 Td (incentive compensation and/or board of directors) Tj ET Q q 0 0 0 rg BT 248.41 497.25 Td ( cash compensation, as applicable. Pursuant to the terms of the DCP) Tj ET Q q 0 0 0 rg BT 522.24 497.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 485.25 Td (Holdings or any of its subsidiaries may elect to make additional contributions beyond amounts deferred by participants, but is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 473.25 Td (under no obligation to do so. Holdings has established a grantor \(or rabbi\) trust to facilitate the payment of its obligations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 461.25 Td (under the DCP) Tj ET Q q 0 0 0 rg BT 107.83 461.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 437.25 Td (Contributions to the DCP) Tj ET Q q 0 0 0 rg BT 178.34 437.25 Td (, net of withdrawals, for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.65 437.25 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.58 437.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.46 437.25 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.29 437.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.72 437.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.72 437.25 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 437.25 Td ($307) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.15 437.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.59 437.25 Td ($334) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.59 437.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 425.25 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 425.25 Td (, and for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.98 425.25 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.59 425.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.47 425.25 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.30 425.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.74 425.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.74 425.25 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.17 425.25 Td ($7,138) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.67 425.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.11 425.25 Td ($7,355) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.61 425.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 467.27 425.25 Td (. ) Tj ET Q q 0 0 0 rg BT 474.22 425.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.66 425.25 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.49 425.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 413.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.02 413.25 Td (, the fair value of the investments held in the trust were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.01 413.25 Td ($22,375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.51 413.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.95 413.25 Td ($14,641) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.45 413.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 505.11 413.25 Td (, which is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.25 Td (included in Other long-term assets in our unaudited consolidated balance sheets and are classified as trading securities. ) Tj ET Q q 0 0 0 rg BT 529.45 401.25 Td (T) Tj ET Q q 0 0 0 rg BT 535.20 401.25 Td (rading ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.25 Td (gains and losses associated with these investments are recorded in Other income within our unaudited consolidated statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.25 Td (of comprehensive income. ) Tj ET Q q 0 0 0 rg BT 160.12 377.25 Td (The associated liability is recorded within Other long-term liabilities in our unaudited consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.25 Td (balance sheets, and any increase or decrease in the liability is recorded in General and administration expense within our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.25 Td (unaudited consolidated statements of comprehensive income. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.09 353.25 Td (three and six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.13 353.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.01 353.25 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.84 353.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.28 353.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.28 353.25 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.25 Td (recorded an immaterial amount of unrealized gains on investments held in the trust.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 317.25 Td (\(13\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 317.25 Td (Commitments and Contingencies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 299.25 Td (The following table summarizes our expected contractual cash commitments as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.78 299.25 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.61 299.25 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 276.75 119.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 169.00 276.75 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 276.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 276.75 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.00 276.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 276.75 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 276.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 276.75 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 276.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.00 276.75 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.00 276.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 276.75 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 276.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 276.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 248.75 119.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 169.00 248.75 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 248.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 248.75 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.00 248.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 248.75 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 248.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 248.75 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 248.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.00 248.75 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.00 248.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 248.75 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 248.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 248.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 220.75 119.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 169.00 220.75 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 220.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 220.75 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.00 220.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 220.75 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 220.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 220.75 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 220.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.00 220.75 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.00 220.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 220.75 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 220.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 220.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 192.75 119.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 169.00 192.75 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 192.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 192.75 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.00 192.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 192.75 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 192.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 192.75 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 192.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.00 192.75 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.00 192.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 192.75 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 192.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 192.75 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 164.75 119.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 169.00 164.75 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.00 164.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 224.00 164.75 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.00 164.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.00 164.75 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 164.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 164.75 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 164.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.00 164.75 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.00 164.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 164.75 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 164.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.00 164.75 55.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 169 276.75 m 220 276.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 276.75 m 277 276.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281 276.75 m 334 276.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338 276.75 m 390 276.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394 276.75 m 447 276.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451 276.75 m 504 276.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 276.75 m 563 276.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 169 276.75 m 220 276.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 169 164.75 m 220 164.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 164.75 m 277 164.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281 164.75 m 334 164.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338 164.75 m 390 164.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394 164.75 m 447 164.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451 164.75 m 504 164.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 164.75 m 563 164.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 169 151.75 m 220 151.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 169 149.75 m 220 149.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 151.75 m 277 151.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 149.75 m 277 149.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281 151.75 m 334 151.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281 149.75 m 334 149.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338 151.75 m 390 151.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338 149.75 m 390 149.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394 151.75 m 447 151.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394 149.75 m 447 149.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451 151.75 m 504 151.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451 149.75 m 504 149.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 151.75 m 563 151.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 149.75 m 563 149.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 186.00 280.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 242.00 280.83 Td (2019) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 299.00 280.83 Td (2020) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 355.50 280.83 Td (2021) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 412.00 280.83 Td (2022) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.70 280.83 Td (Ther) Tj ET Q q 0 0 0 rg BT 475.44 280.83 Td (eafter) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.25 280.83 Td (T) Tj ET Q q 0 0 0 rg BT 530.85 280.83 Td (otal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 267.32 Td (Debt obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.50 267.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.65 267.32 Td (2,455) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.50 267.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.65 267.32 Td (3,935) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.50 267.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.65 267.32 Td (1,207) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.50 267.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.15 267.32 Td (727) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.50 267.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.10 267.32 Td (1,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.50 267.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.10 267.32 Td (5,500,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.50 267.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.10 267.32 Td (6,508,324) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 253.32 Td (Cash interest payments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.60 253.32 Td (168,407) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.60 253.32 Td (338,887) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.60 253.32 Td (338,844) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.60 253.32 Td (338,817) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.60 253.32 Td (338,81) Tj ET Q q 0 0 0 rg BT 438.10 253.32 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.60 253.32 Td (919,243) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.10 253.32 Td (2,443,009) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 239.32 Td (Satellite and transmission) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.65 239.32 Td (59,557) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.65 239.32 Td (94,922) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.65 239.32 Td (51,056) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 239.32 Td (4,347) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 239.32 Td (2,428) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 239.32 Td (4,288) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 239.32 Td (216,598) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 225.32 Td (Programming and content) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.60 225.32 Td (136,122) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.60 225.32 Td (251,953) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.60 225.32 Td (207,728) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.60 225.32 Td (1) Tj ET Q q 0 0 0 rg BT 358.60 225.32 Td (18,706) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.65 225.32 Td (52,475) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.60 225.32 Td (162,938) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 225.32 Td (929,922) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 211.32 Td (Sales and marketing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.65 211.32 Td (9,990) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.65 211.32 Td (12,817) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.65 211.32 Td (7,701) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 211.32 Td (7,446) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 211.32 Td (1,644) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.15 211.32 Td (203) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 211.32 Td (39,801) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 197.32 Td (Satellite incentive payments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.65 197.32 Td (8,001) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.65 197.32 Td (10,652) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.65 197.32 Td (10,197) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 197.32 Td (8,574) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 197.32 Td (8,558) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.65 197.32 Td (61,767) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 197.32 Td (107,749) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 183.32 Td (Operating lease obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.65 183.32 Td (19,499) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.65 183.32 Td (44,983) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.65 183.32 Td (42,779) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.65 183.32 Td (37,416) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.65 183.32 Td (34,096) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.60 183.32 Td (143,628) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 183.32 Td (322,401) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 169.32 Td (Royalties and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.60 169.32 Td (230,132) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.60 169.32 Td (139,285) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.60 169.32 Td (103,414) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.65 169.32 Td (86,253) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.65 169.32 Td (23,199) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 169.32 Td (33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 169.32 Td (582,316) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 155.32 Td (T) Tj ET Q q 0 0 0 rg BT 63.91 155.32 Td (otal ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 81.41 159.39 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.50 155.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.60 155.32 Td (634,163) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.50 155.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.60 155.32 Td (897,434) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.50 155.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.60 155.32 Td (762,926) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.50 155.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.60 155.32 Td (602,286) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.50 155.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.10 155.32 Td (1,461,21) Tj ET Q q 0 0 0 rg BT 438.10 155.32 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.50 155.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.10 155.32 Td (6,792,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.50 155.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.10 155.32 Td (1) Tj ET Q q 0 0 0 rg BT 519.10 155.32 Td (1,150,120) Tj ET Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 134.45 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 134.45 Td (The table does not include our reserve for uncertain tax positions, which at ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 347.92 134.45 Td (June30, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.16 134.45 Td ( totaled ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 427.15 134.45 Td ($15,344) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 456.40 134.45 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 110.45 Td (Debt obligations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.94 110.45 Td (Debt obligations include principal payments on outstanding debt and capital lease obligations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 86.45 Td (Cash inter) Tj ET Q q 0 0 0 rg BT 119.08 86.45 Td (est payments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.95 86.45 Td (Cash interest payments include interest due on outstanding debt and capital lease payments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 74.45 Td (through maturity) Tj ET Q q 0 0 0 rg BT 116.34 74.45 Td (.) Tj ET Q endstream endobj 51 0 obj <>] /Rotate 0 /Contents 52 0 R>> endobj 52 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 760.60 Td (SIRIUS XM RADIO INC. ) Tj ET Q q 0 0 0 rg BT 315.43 760.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.05 748.60 Td (\(a wholly-owned subsidiary of Sirius XM Holdings Inc.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.60 736.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.82 736.60 Td (T) Tj ET Q q 0 0 0 rg BT 191.31 736.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.41 736.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.59 736.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.58 736.60 Td (A) Tj ET Q q 0 0 0 rg BT 361.06 736.60 Td (TEMENTS - Continued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.35 724.60 Td (\(UNAUDITED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.75 712.60 Td (\(Dollars and shar) Tj ET Q q 0 0 0 rg BT 252.02 712.60 Td (es in thousands, except per) Tj ET Q q 0 0 0 rg BT 366.02 712.60 Td ( shar) Tj ET Q q 0 0 0 rg BT 387.23 712.60 Td (e amounts\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (24) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 695.10 Td (Satellite and transmission.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.89 695.10 Td (W) Tj ET Q q 0 0 0 rg BT 202.53 695.10 Td (e have entered into agreements with several third parties to design, build, launch and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (insure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.44 683.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.44 683.10 Td ( satellites, SXM-7 and SXM-8. ) Tj ET Q q 0 0 0 rg BT 220.70 683.10 Td (W) Tj ET Q q 0 0 0 rg BT 229.33 683.10 Td (e also have entered into agreements with third parties to operate and maintain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (satellite telemetry) Tj ET Q q 0 0 0 rg BT 120.21 671.10 Td (, tracking and control facilities and certain components of our terrestrial repeater networks.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 647.10 Td (Pr) Tj ET Q q 0 0 0 rg BT 87.13 647.10 Td (ogramming and content.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.18 647.10 Td (W) Tj ET Q q 0 0 0 rg BT 203.81 647.10 Td (e have entered into various programming and content agreements. Under the terms of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (these agreements, our obligations include fixed payments, advertising commitments and revenue sharing arrangements. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (certain of these agreements, the future revenue sharing costs are dependent upon many factors and are dif) Tj ET Q q 0 0 0 rg BT 471.09 623.10 Td (ficult to estimate; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (therefore, they are not included in our minimum contractual cash commitments.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 587.10 Td (Sales and marketing.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.66 587.10 Td (W) Tj ET Q q 0 0 0 rg BT 180.29 587.10 Td (e have entered into various marketing, sponsorship and distribution agreements to promote our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.10 Td (brand and are obligated to make payments to sponsors, retailers, automakers and radio manufacturers under these agreements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (Certain programming and content agreements also require us to purchase advertising on properties owned or controlled by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (licensors.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 527.10 Td (Satellite incentive payments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.63 527.10 Td (Boeing Satellite Systems International, Inc., the manufacturer of certain of our in-orbit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.10 Td (satellites, may be entitled to future in-orbit performance payments with respect to XM-3 and XM-4 meeting their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.37 515.10 Td (fifteen) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.46 515.10 Td (-year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.10 Td (design life, which we expect to occur) Tj ET Q q 0 0 0 rg BT 198.06 503.10 Td (.Boeing may also be entitled to up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.76 503.10 Td ($10,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.26 503.10 Td ( of additional incentive payments if our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (XM-4 satellite continues to operate above baseline specifications during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.52 491.10 Td (five years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.66 491.10 Td ( beyond the satellite) Tj ET Q q 0 0 0 rg BT 477.69 491.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.08 491.10 Td (fifteen) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.18 491.10 Td (-year design ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (life, which is currently not expected to occur) Tj ET Q q 0 0 0 rg BT 227.77 479.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 455.10 Td (Space Systems/Loral, the manufacturer of certain of our in-orbit satellites, may be entitled to future in-orbit performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (payments with respect to XM-5, SIRIUS FM-5 and SIRIUS FM-6 meeting their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.53 443.10 Td (fifteen) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.63 443.10 Td (-year design life, which we expect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (occur) Tj ET Q q 0 0 0 rg BT 71.16 431.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 407.10 Td (Operating lease obligations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.66 407.10 Td (W) Tj ET Q q 0 0 0 rg BT 210.30 407.10 Td (e have entered into both cancelable and non-cancelable operating leases for of) Tj ET Q q 0 0 0 rg BT 522.47 407.10 Td (fice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (space, equipment and terrestrial repeaters. ) Tj ET Q q 0 0 0 rg BT 220.07 395.10 Td (These leases provide for minimum lease payments, additional operating expense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (char) Tj ET Q q 0 0 0 rg BT 66.53 383.10 Td (ges, leasehold improvements and rent escalations that have initial terms ranging from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.59 383.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.03 383.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.81 383.10 Td (fifteen years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.50 383.10 Td (, and certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (leases have options to renew) Tj ET Q q 0 0 0 rg BT 163.26 371.10 Td (. ) Tj ET Q q 0 0 0 rg BT 168.08 371.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 193.71 371.10 Td (fect of the rent holidays and rent concessions are recognized on a straight-line basis over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (the lease term, including reasonably assured renewal periods.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 335.10 Td (Royalties and other) Tj ET Q q 0 0 0 rg BT 154.71 335.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.21 335.10 Td (W) Tj ET Q q 0 0 0 rg BT 175.85 335.10 Td (e have entered into certain music royalty arrangements that include fixed payments. ) Tj ET Q q 0 0 0 rg BT 515.54 335.10 Td (W) Tj ET Q q 0 0 0 rg BT 524.18 335.10 Td (e have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.10 Td (also entered into various agreements with third parties for general operating purposes. In addition to the minimum contractual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.10 Td (cash commitments described above, we have entered into other variable cost arrangements. ) Tj ET Q q 0 0 0 rg BT 416.96 311.10 Td (These future costs are dependent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.10 Td (upon many factors and are dif) Tj ET Q q 0 0 0 rg BT 169.00 299.10 Td (ficult to anticipate; however) Tj ET Q q 0 0 0 rg BT 281.05 299.10 Td (, these costs may be substantial. ) Tj ET Q q 0 0 0 rg BT 410.85 299.10 Td (W) Tj ET Q q 0 0 0 rg BT 419.49 299.10 Td (e may enter into additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.10 Td (programming, distribution, marketing and other agreements that contain similar variable cost provisions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 263.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 263.10 Td (e also have a surety bond of approximately $45,000 primarily used as security against non-performance in the normal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.10 Td (course of business. ) Tj ET Q q 0 0 0 rg BT 127.64 251.10 Td (W) Tj ET Q q 0 0 0 rg BT 136.28 251.10 Td (e do not have any other significant of) Tj ET Q q 0 0 0 rg BT 285.22 251.10 Td (f-balance sheet financing arrangements that are reasonably likely to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.10 Td (have a material ef) Tj ET Q q 0 0 0 rg BT 120.66 239.10 Td (fect on our financial condition, results of operations, liquidity) Tj ET Q q 0 0 0 rg BT 366.07 239.10 Td (, capital expenditures or capital resources.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.50 209.10 Td (Legal Proceedings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 191.10 Td (In the ordinary course of business, we are a defendant or party to various claims and lawsuits, including those discussed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.10 Td (below) Tj ET Q q 0 0 0 rg BT 73.29 179.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 155.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 155.10 Td (e record a liability when we believe that it is both probable that a liability will be incurred, and the amount of loss can ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.10 Td (be reasonably estimated. ) Tj ET Q q 0 0 0 rg BT 150.39 143.10 Td (W) Tj ET Q q 0 0 0 rg BT 159.03 143.10 Td (e evaluate developments in legal matters that could af) Tj ET Q q 0 0 0 rg BT 373.77 143.10 Td (fect the amount of liability that has been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (previously accrued and make adjustments as appropriate.Significant judgment is required to determine both probability and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.10 Td (the estimated amount of a loss or potential loss.) Tj ET Q q 0 0 0 rg BT 244.56 119.10 Td (W) Tj ET Q q 0 0 0 rg BT 253.20 119.10 Td (e may be unable to reasonably estimate the reasonably possible loss or range ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.10 Td (of loss for a particular legal contingency for various reasons, including, among others, because: \(i\) the damages sought are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.10 Td (indeterminate; \(ii\)the proceedings are in the relative early stages; \(iii\)there is uncertainty as to the outcome of pending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 83.10 Td (proceedings \(including motions and appeals\); \(iv\)there is uncertainty as to the likelihood of settlement and the outcome of any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 71.10 Td (negotiations with respect thereto; \(v\)there remain significant factual issues to be determined or resolved; \(vi\)the relevant law is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 59.10 Td (unsettled; or \(vii\) the proceedings involve novel or untested legal theories.In such instances, there may be considerable ) Tj ET Q endstream endobj 53 0 obj <>] /Rotate 0 /Contents 54 0 R>> endobj 54 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.80 760.60 Td (SIRIUS XM RADIO INC. ) Tj ET Q q 0 0 0 rg BT 315.43 760.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 187.05 748.60 Td (\(a wholly-owned subsidiary of Sirius XM Holdings Inc.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.60 736.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.82 736.60 Td (T) Tj ET Q q 0 0 0 rg BT 191.31 736.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.41 736.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.59 736.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.58 736.60 Td (A) Tj ET Q q 0 0 0 rg BT 361.06 736.60 Td (TEMENTS - Continued ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.35 724.60 Td (\(UNAUDITED\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.75 712.60 Td (\(Dollars and shar) Tj ET Q q 0 0 0 rg BT 252.02 712.60 Td (es in thousands, except per) Tj ET Q q 0 0 0 rg BT 366.02 712.60 Td ( shar) Tj ET Q q 0 0 0 rg BT 387.23 712.60 Td (e amounts\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (uncertainty regarding the ultimate resolution of such matters, including the likelihood or magnitude of a possible eventual loss, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (if any) Tj ET Q q 0 0 0 rg BT 71.90 683.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 76.50 659.10 Td (SoundExchange Royalty Claims) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.81 659.10 Td (. On June 7, 2018, we entered into an agreement with SoundExchange, Inc., the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (or) Tj ET Q q 0 0 0 rg BT 57.65 647.10 Td (ganization that collects and distributes sound recording royalties pursuant to our statutory license, to settle the cases titled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (SoundExchange, Inc. v) Tj ET Q q 0 0 0 rg BT 141.60 635.10 Td (. Sirius XM Radio, Inc., No.13-cv-1290-RJL) Tj ET Q q 0 0 0 rg BT 320.66 635.10 Td ( \(D.D.C.\), and SoundExchange, Inc. v) Tj ET Q q 0 0 0 rg BT 472.48 635.10 Td (. Sirius XM Radio, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (Inc., No.17-cv-02666-RJL) Tj ET Q q 0 0 0 rg BT 155.22 623.10 Td ( \(D.D.C.\). ) Tj ET Q q 0 0 0 rg BT 199.94 623.10 Td (A) Tj ET Q q 0 0 0 rg BT 206.61 623.10 Td ( description of these actions is contained in our prior public filings. In connection with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (the settlement, we made a one-time lump sum payment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.60 611.10 Td ($150,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.10 611.10 Td ( to SoundExchange on July 6, 2018. ) Tj ET Q q 0 0 0 rg BT 470.35 611.10 Td (The settlement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (resolved all outstanding claims, including ongoing audits, under our statutory license for sound recordings for the period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (January 1, 2007 through December 31, 2017.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 76.50 563.10 Td (T) Tj ET Q q 0 0 0 rg BT 81.14 563.10 Td (elephone Consumer Pr) Tj ET Q q 0 0 0 rg BT 172.98 563.10 Td (otection ) Tj ET Q q 0 0 0 rg BT 207.51 563.10 Td (Act Suits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.78 563.10 Td (. On March 13, 2017, ) Tj ET Q q 0 0 0 rg BT 333.42 563.10 Td (Thomas Buchanan, individually and on behalf of all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (others similarly situated, filed a class action complaint against us in the United States District Court for the Northern District of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (T) Tj ET Q q 0 0 0 rg BT 54.91 539.10 Td (exas, Dallas Division. ) Tj ET Q q 0 0 0 rg BT 147.49 539.10 Td (The plaintif) Tj ET Q q 0 0 0 rg BT 194.24 539.10 Td (f in this action alleges that we violated the ) Tj ET Q q 0 0 0 rg BT 365.40 539.10 Td (T) Tj ET Q q 0 0 0 rg BT 370.81 539.10 Td (elephone Consumer Protection ) Tj ET Q q 0 0 0 rg BT 496.06 539.10 Td (Act of 1991 \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.10 Td (TCP) Tj ET Q q 0 0 0 rg BT 71.36 527.10 Td (A\) by) Tj ET Q q 0 0 0 rg BT 98.20 527.10 Td (, among other things, making telephone solicitations to persons on the National Do-Not-Call registry) Tj ET Q q 0 0 0 rg BT 500.54 527.10 Td (, a database ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.10 Td (established to allow consumers to exclude themselves from telemarketing calls unless they consent to receive the calls in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.10 Td (signed, written agreement, and making calls to consumers in violation of our internal Do-Not-Call registry) Tj ET Q q 0 0 0 rg BT 474.86 503.10 Td (. ) Tj ET Q q 0 0 0 rg BT 482.18 503.10 Td (The plaintif) Tj ET Q q 0 0 0 rg BT 528.92 503.10 Td (f is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (seeking various forms of relief, including statutory damages of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.32 491.10 Td (five hundred) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.14 491.10 Td ( dollars for each violation of the ) Tj ET Q q 0 0 0 rg BT 484.75 491.10 Td (TCP) Tj ET Q q 0 0 0 rg BT 502.17 491.10 Td (A) Tj ET Q q 0 0 0 rg BT 508.84 491.10 Td ( or) Tj ET Q q 0 0 0 rg BT 519.27 491.10 Td (, in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (alternative, treble damages of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.05 479.10 Td (fifteen hundred) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.42 479.10 Td ( dollars for each knowing and willful violation of the ) Tj ET Q q 0 0 0 rg BT 468.63 479.10 Td (TCP) Tj ET Q q 0 0 0 rg BT 486.05 479.10 Td (A) Tj ET Q q 0 0 0 rg BT 492.72 479.10 Td ( and a permanent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (injunction prohibiting us from making, or having made, any calls to land lines that are listed on the National Do-Not-Call ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (registry or our internal Do-Not-Call registry) Tj ET Q q 0 0 0 rg BT 225.19 455.10 Td (. ) Tj ET Q q 0 0 0 rg BT 230.01 455.10 Td (W) Tj ET Q q 0 0 0 rg BT 238.65 455.10 Td (e believe we have substantial defenses to the claims asserted in this action, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (we intend to defend this action vigorously) Tj ET Q q 0 0 0 rg BT 217.15 443.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 76.50 419.10 Td (Other Matters) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.44 419.10 Td (.In the ordinary course of business, we are a defendant in various other lawsuits and arbitration ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (proceedings, including derivative actions; actions filed by subscribers, both on behalf of themselves and on a class action basis; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (former employees; parties to contracts or leases; and owners of patents, trademarks, copyrights or other intellectual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (property) Tj ET Q q 0 0 0 rg BT 82.73 383.10 Td (.None of these other matters, in our opinion, is likely to have a material adverse ef) Tj ET Q q 0 0 0 rg BT 416.33 383.10 Td (fect on our business, financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (condition or results of operations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 347.10 Td (\(14\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 347.10 Td (Income ) Tj ET Q q 0 0 0 rg BT 110.48 347.10 Td (T) Tj ET Q q 0 0 0 rg BT 116.23 347.10 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 329.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.61 329.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.54 329.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.42 329.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.25 329.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.69 329.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.69 329.10 Td (, income tax expense was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.10 329.10 Td ($70,570) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.60 329.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.04 329.10 Td ($1) Tj ET Q q 0 0 0 rg BT 450.66 329.10 Td (19,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.16 329.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 530.83 329.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.10 Td ($150,819) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 317.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.44 317.10 Td ($233,486) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.94 317.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.32 317.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.93 317.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.81 317.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.64 317.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.08 317.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.08 317.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 395.74 317.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 293.10 Td (Our ef) Tj ET Q q 0 0 0 rg BT 102.14 293.10 Td (fective tax rate for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.92 293.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.85 293.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.73 293.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.56 293.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.00 293.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.00 293.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.55 293.10 Td (19.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.38 293.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.82 293.10 Td (37.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 293.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 513.31 293.10 Td (. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 281.10 Td (fective tax rate for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.87 281.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.49 281.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.36 281.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.19 281.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.63 281.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.63 281.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.18 281.10 Td (20.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.01 281.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.45 281.10 Td (36.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.28 281.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 459.94 281.10 Td (. ) Tj ET Q q 0 0 0 rg BT 467.26 281.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 492.90 281.10 Td (fective tax rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.10 Td (for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.38 269.10 Td (three and six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.42 269.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.30 269.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.13 269.10 Td ( was primarily impacted by the reduced federal income tax rate as a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.10 Td (the ) Tj ET Q q 0 0 0 rg BT 64.04 257.10 Td (T) Tj ET Q q 0 0 0 rg BT 69.45 257.10 Td (ax ) Tj ET Q q 0 0 0 rg BT 80.83 257.10 Td (Act and the recognition of excess tax benefits related to share based compensation. ) Tj ET Q q 0 0 0 rg BT 417.48 257.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 443.11 257.10 Td (fective tax rate for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.89 257.10 Td (three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.10 Td (and six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.06 245.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.93 245.10 Td (June30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.76 245.10 Td ( was impacted by the recognition of excess tax benefits related to share based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.10 Td (compensation. ) Tj ET Q q 0 0 0 rg BT 112.36 233.10 Td (W) Tj ET Q q 0 0 0 rg BT 121.00 233.10 Td (e estimate our ef) Tj ET Q q 0 0 0 rg BT 187.18 233.10 Td (fective tax rate for the year ending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.38 233.10 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.96 233.10 Td ( will be approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.72 233.10 Td (22%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.05 233.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 209.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.94 209.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.77 209.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.21 209.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.80 209.10 Td (, we had a valuation allowance related to deferred tax assets of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.74 209.10 Td ($52,405) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.24 209.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.10 Td ($52,883) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 197.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 134.66 197.10 Td (, that were not likely to be realized due to certain net operating loss limitations and acquired net operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.10 Td (losses that were not more likely than not going to be utilized.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 161.10 Td (\(15\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 161.10 Td (Subsequent Events) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 137.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.22 137.10 Td (July18, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.39 137.10 Td (, Holdings' board of directors declared a quarterly dividend on Holdings' common stock in the amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 125.10 Td ($0.01) Tj ET Q q 0 0 0 rg BT 82.46 125.10 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.46 125.10 Td ( per share of Holdings' common stock payable on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.27 125.10 Td (August31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.67 125.10 Td ( to Holdings' stockholders of record as of the close ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.10 Td (of business on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.67 113.10 Td (August10, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.06 113.10 Td (.) Tj ET Q endstream endobj 55 0 obj <>] /Rotate 0 /Contents 56 0 R>> endobj 56 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (26) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (MANAGEMENTS DISCUSSION ) Tj ET Q q 0 0 0 rg BT 200.02 742.25 Td (AND ) Tj ET Q q 0 0 0 rg BT 223.64 742.25 Td (ANAL) Tj ET Q q 0 0 0 rg BT 251.05 742.25 Td (YSIS OF) Tj ET Q q 0 0 0 rg BT 289.31 742.25 Td ( FINANCIAL) Tj ET Q q 0 0 0 rg BT 347.92 742.25 Td ( CONDITION ) Tj ET Q q 0 0 0 rg BT 411.27 742.25 Td (AND RESUL) Tj ET Q q 0 0 0 rg BT 467.86 742.25 Td (TS OF) Tj ET Q q 0 0 0 rg BT 496.11 742.25 Td ( OPERA) Tj ET Q q 0 0 0 rg BT 532.87 742.25 Td (TIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 727.25 Td (All amounts referenced in this discussion and analysis are in thousands, except per subscriber and per installation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 715.25 Td (amounts, unless otherwise stated.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 694.25 Td (The following discussion and analysis of our financial condition and results of operations should be read in conjunction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (with our unaudited consolidated financial statements and related notes included elsewhere in this Quarterly Report and with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td (Holdings' ) Tj ET Q q 0 0 0 rg BT 90.42 670.25 Td (Annual Report on Form 10-K for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.76 670.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.34 670.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (Special Note Regarding Forward-Looking Statements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 628.25 Td (The following cautionary statements identify important factors that could cause our actual results to dif) Tj ET Q q 0 0 0 rg BT 489.48 628.25 Td (fer materially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 616.25 Td (from those projected in forward-looking statements made in this Quarterly Report and in other reports and documents ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 604.25 Td (published by us from time to time. ) Tj ET Q q 0 0 0 rg BT 189.99 604.25 Td (Any statements about our beliefs, plans, objectives, expectations, assumptions, future events ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 592.25 Td (or performance are not historical facts and may be forward-looking. ) Tj ET Q q 0 0 0 rg BT 323.88 592.25 Td (These statements are often, but not always, made through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 580.25 Td (the use of words or phrases such as will likely result, are expected to, will continue, is anticipated, estimated, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 568.25 Td (intend, plan, projection and outlook. ) Tj ET Q q 0 0 0 rg BT 232.71 568.25 Td (Any forward-looking statements are qualified in their entirety by reference to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 556.25 Td (factors discussed throughout this Quarterly Report and in other reports and documents published by us from time to time, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 544.25 Td (particularly the risk factors described under Risk Factors in PartI, Item1A, of Holdings' Form 10-K for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 532.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.58 532.25 Td ( and Management) Tj ET Q q 0 0 0 rg BT 207.44 532.25 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 276.61 532.25 Td (Analysis of Financial Condition and Results of Operations herein and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 520.25 Td (in PartII, Item7, of Holdings' ) Tj ET Q q 0 0 0 rg BT 172.62 520.25 Td (Annual Report on Form 10-K for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.96 520.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.54 520.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 496.25 Td (Among the significant factors that could cause our actual results to dif) Tj ET Q q 0 0 0 rg BT 357.57 496.25 Td (fer materially from those expressed in the forward-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 484.25 Td (looking statements are:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 466.85 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 466.85 Td (we face substantial competition and that competition is likely to increase over time;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 449.45 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 449.45 Td (our ability to retain subscribers or increase the number of subscribers is uncertain;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 432.05 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 432.05 Td (our ability to profitably attract and retain subscribers as our marketing ef) Tj ET Q q 0 0 0 rg BT 376.56 432.05 Td (forts reach more price-sensitive consumers is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 414.65 Td (uncertain;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 397.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 397.25 Td (if we fail to protect the security of personal information about our customers, we could be subject to costly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 379.85 Td (government enforcement actions and private litigation and our reputation could suf) Tj ET Q q 0 0 0 rg BT 417.94 379.85 Td (fer;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 362.45 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 362.45 Td (our service may experience harmful interference from new wireless operations;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 345.05 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 345.05 Td (we engage in extensive marketing ef) Tj ET Q q 0 0 0 rg BT 232.15 345.05 Td (forts and the continued ef) Tj ET Q q 0 0 0 rg BT 334.15 345.05 Td (fectiveness of those ef) Tj ET Q q 0 0 0 rg BT 423.10 345.05 Td (forts are an important part of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 327.65 Td (business;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 310.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 310.25 Td (consumer protection laws and their enforcement could damage our business;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 292.85 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 292.85 Td (we may not realize the benefits of acquisitions or other strategic investments and initiatives;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 275.45 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 275.45 Td (the unfavorable outcome of pending or future litigation could have a material adverse impact on our operations and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 258.05 Td (financial condition;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 240.65 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 240.65 Td (the market for music rights is changing and is subject to significant uncertainties;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 223.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 223.25 Td (our business depends in lar) Tj ET Q q 0 0 0 rg BT 194.13 223.25 Td (ge part upon the auto industry;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 205.85 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 205.85 Td (general economic conditions can af) Tj ET Q q 0 0 0 rg BT 227.43 205.85 Td (fect our business;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 188.45 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 188.45 Td (existing or future laws and regulations could harm our business;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 171.05 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 171.05 Td (failure of our satellites would significantly damage our business;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 153.65 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 153.65 Td (interruption or failure of our information technology and communications systems could negatively impact our results ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 136.25 Td (and our brand;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 118.85 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 118.85 Td (rapid technological and industry changes and new entrants could adversely impact our services;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 101.45 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 101.45 Td (failure of third parties to perform could adversely af) Tj ET Q q 0 0 0 rg BT 294.07 101.45 Td (fect our business;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 84.05 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 84.05 Td (failure to comply with FCC requirements could damage our business;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 66.65 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 66.65 Td (we may from time to time modify our business plan, and these changes could adversely af) Tj ET Q q 0 0 0 rg BT 446.28 66.65 Td (fect us and our financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 49.25 Td (condition;) Tj ET Q endstream endobj 57 0 obj <>] /Rotate 0 /Contents 58 0 R>> endobj 58 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 742.10 Td (we have a significant amount of indebtedness, and our debt contains certain covenants that restrict our operations;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 724.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 724.70 Td (our studios, terrestrial repeater networks, satellite uplink facilities or other ground facilities could be damaged by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 707.30 Td (natural catastrophes or terrorist activities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 689.90 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 689.90 Td (Holdings' principal stockholder has significant influence, including over actions requiring stockholder approval, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 672.50 Td (its interests may dif) Tj ET Q q 0 0 0 rg BT 164.42 672.50 Td (fer from the interests of other holders of Holdings' common stock; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 655.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 655.10 Td (Holdings is a controlled company within the meaning of the NASDAQ listing rules and, as a result, qualify for) Tj ET Q q 0 0 0 rg BT 537.73 655.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 637.70 Td (rely on, exemptions from certain corporate governance requirements; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 620.30 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 620.30 Td (our business may be impaired by third-party intellectual property rights.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 596.30 Td (Because the risk factors referred to above could cause actual results or outcomes to dif) Tj ET Q q 0 0 0 rg BT 395.80 596.30 Td (fer materially from those expressed in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 584.30 Td (any forward-looking statements made by us or on our behalf, you should not place undue reliance on any of these forward-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 572.30 Td (looking statements. In addition, any forward-looking statement speaks only as of the date on which it is made, and we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 560.30 Td (undertake no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 548.30 Td (on which the statement is made, to reflect the occurrence of unanticipated events or otherwise, except as required by law) Tj ET Q q 0 0 0 rg BT 531.66 548.30 Td (. New ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 536.30 Td (factors emer) Tj ET Q q 0 0 0 rg BT 99.51 536.30 Td (ge from time to time, and it is not possible for us to predict which will arise or to assess with any precision the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 524.30 Td (impact of each factor on our business or the extent to which any factor) Tj ET Q q 0 0 0 rg BT 331.45 524.30 Td (, or combination of factors, may cause actual results to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 512.30 Td (dif) Tj ET Q q 0 0 0 rg BT 60.93 512.30 Td (fer materially from those contained in any forward-looking statements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 488.30 Td (Executive Summary) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 470.30 Td (W) Tj ET Q q 0 0 0 rg BT 86.64 470.30 Td (e transmit music, sports, entertainment, comedy) Tj ET Q q 0 0 0 rg BT 277.61 470.30 Td (, talk, news, traf) Tj ET Q q 0 0 0 rg BT 341.85 470.30 Td (fic and weather channels, as well as infotainment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 458.30 Td (services, in the United States on a subscription fee basis through our two proprietary satellite radio systems.Subscribers can ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 446.30 Td (also receive music and other channels, plus features such as SiriusXM On Demand, over our Internet radio service, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 434.30 Td (through applications for mobile devices, home devices and other consumer electronic equipment.) Tj ET Q q 0 0 0 rg BT 443.86 434.30 Td (W) Tj ET Q q 0 0 0 rg BT 452.50 434.30 Td (e also provide connected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 422.30 Td (vehicle services.Our connected vehicle services are designed to enhance the safety) Tj ET Q q 0 0 0 rg BT 384.47 422.30 Td (, security and driving experience for vehicle ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.30 Td (operators while providing marketing and operational benefits to automakers and their dealers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 386.30 Td (W) Tj ET Q q 0 0 0 rg BT 86.64 386.30 Td (e have agreements with every major automaker \(OEMs\) to of) Tj ET Q q 0 0 0 rg BT 341.08 386.30 Td (fer satellite radio in their vehicles, through which we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 374.30 Td (acquire the majority of our subscribers.) Tj ET Q q 0 0 0 rg BT 211.99 374.30 Td (W) Tj ET Q q 0 0 0 rg BT 220.63 374.30 Td (e also acquire subscribers through marketing to owners and lessees of previously ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 362.30 Td (owned vehicles that include factory-installed satellite radios that are not currently subscribing to our services.Our satellite ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.30 Td (radios are primarily distributed through automakers; retailers; and our website. Satellite radio services are also of) Tj ET Q q 0 0 0 rg BT 504.39 350.30 Td (fered to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.30 Td (customers of certain rental car companies.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 314.30 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.44 314.30 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.27 314.30 Td (, we had approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.63 314.30 Td (33.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.13 314.30 Td ( million subscribers of which approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.54 314.30 Td (28.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.04 314.30 Td ( million were self-pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 302.30 Td (subscribers and approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.69 302.30 Td (5.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.19 302.30 Td ( million were paid promotional subscribers. Our subscriber totals include subscribers under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 290.30 Td (our regular pricing plans; discounted pricing plans; subscribers that have prepaid, including payments either made or due from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 278.30 Td (automakers for subscriptions included in the sale or lease price of a vehicle; subscribers to our Internet services who do not also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.30 Td (have satellite radio subscriptions; and certain subscribers to our weather) Tj ET Q q 0 0 0 rg BT 337.56 266.30 Td (, traf) Tj ET Q q 0 0 0 rg BT 356.26 266.30 Td (fic, and data services who do not also have satellite ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.30 Td (radio subscriptions. Subscribers and subscription related revenues and expenses associated with the Sirius XM Canada service, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.30 Td (which had approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.14 242.30 Td (2.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.64 242.30 Td ( million subscribers as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.68 242.30 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.51 242.30 Td (, and connected vehicle services are not included in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.30 Td (subscriber count or subscriber) Tj ET Q q 0 0 0 rg BT 170.04 230.30 Td (-based operating metrics. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 206.30 Td (Our primary source of revenue is subscription fees, with most of our customers subscribing to annual, semi-annual, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.30 Td (quarterly or monthly plans.) Tj ET Q q 0 0 0 rg BT 163.69 194.30 Td (W) Tj ET Q q 0 0 0 rg BT 172.32 194.30 Td (e of) Tj ET Q q 0 0 0 rg BT 187.41 194.30 Td (fer discounts for prepaid subscription plans, as well as a multiple subscription discount.) Tj ET Q q 0 0 0 rg BT 542.17 194.30 Td (W) Tj ET Q q 0 0 0 rg BT 550.81 194.30 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.30 Td (also derive revenue from activation and other fees, the sale of advertising on select non-music channels, the direct sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 170.30 Td (satellite radios and accessories, and other ancillary services, such as our weather) Tj ET Q q 0 0 0 rg BT 370.86 170.30 Td (, traf) Tj ET Q q 0 0 0 rg BT 389.56 170.30 Td (fic and data services. ) Tj ET Q q 0 0 0 rg BT 483.22 170.30 Td (W) Tj ET Q q 0 0 0 rg BT 491.86 170.30 Td (e provide traf) Tj ET Q q 0 0 0 rg BT 545.54 170.30 Td (fic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 158.30 Td (services to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.24 158.30 Td (8.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.74 158.30 Td ( million vehicles.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 134.30 Td (In many cases, a subscription to our radio service is included with the purchase of new or previously owned vehicles. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 122.30 Td (The length of these subscriptions varies but is typically three to twelve months.) Tj ET Q q 0 0 0 rg BT 371.70 122.30 Td (W) Tj ET Q q 0 0 0 rg BT 380.34 122.30 Td (e receive payments for these subscriptions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 110.30 Td (from certain automakers.) Tj ET Q q 0 0 0 rg BT 155.05 110.30 Td (W) Tj ET Q q 0 0 0 rg BT 163.69 110.30 Td (e also reimburse various automakers for certain costs associated with satellite radios installed in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 98.30 Td (new vehicles and pay revenue share to various automakers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 74.30 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.44 74.30 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.27 74.30 Td (, Liberty Media beneficially owned, directly and indirectly) Tj ET Q q 0 0 0 rg BT 392.26 74.30 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.52 74.30 Td (70%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.85 74.30 Td ( of the outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 62.30 Td (shares of Holdings' common stock.) Tj ET Q q 0 0 0 rg BT 194.84 62.30 Td (As a result, Holdings is a controlled company for the purposes of the NASDAQ ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 50.30 Td (corporate governance requirements.) 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Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 694.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.64 694.10 Td (e hold an investment in Pandora Media, Inc. \(Pandora\), which operates an internet-based music discovery platform, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 682.10 Td (fering a personalized experience for listeners. ) Tj ET Q q 0 0 0 rg BT 244.73 682.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.17 682.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.00 682.10 Td (, our interest in Pandora represented an approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (18%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.33 670.10 Td ( interest in Pandora's outstanding common stock, and an approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.91 670.10 Td (15%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.24 670.10 Td ( interest on an as-converted basis.) 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1 rg /GS0 gs 434.75 236.75 36.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.75 236.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.75 236.75 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.75 236.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.75 236.75 32.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 51.75 206.75 110.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 161.75 206.75 51.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.75 206.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 216.75 206.75 51.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.75 206.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.75 206.75 51.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.75 206.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.75 206.75 51.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.75 206.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.75 206.75 49.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.75 206.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.75 206.75 36.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.75 206.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.75 206.75 49.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.75 206.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.75 206.75 32.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 51.75 156.75 110.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 161.75 156.75 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.75 156.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 216.75 156.75 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 267.75 156.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 271.75 156.75 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.75 156.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.75 156.75 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.75 156.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.75 156.75 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.75 156.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.75 156.75 36.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.75 156.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.75 156.75 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 523.75 156.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 527.75 156.75 32.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.75 685.75 m 430.75 685.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.75 685.75 m 434.75 685.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.75 685.75 m 470.75 685.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470.75 685.75 m 474.75 685.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.75 685.75 m 523.75 685.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 523.75 685.75 m 527.75 685.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 527.75 685.75 m 559.75 685.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 161.75 664.75 m 212.75 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212.75 664.75 m 216.75 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.75 664.75 m 267.75 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.75 664.75 m 322.75 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322.75 664.75 m 326.75 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.75 664.75 m 377.75 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.75 664.75 m 430.75 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.75 664.75 m 434.75 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.75 664.75 m 470.75 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470.75 664.75 m 474.75 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.75 664.75 m 523.75 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 523.75 664.75 m 527.75 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 527.75 664.75 m 559.75 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 161.75 651.75 m 212.75 651.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.75 651.75 m 267.75 651.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.75 664.75 m 322.75 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.75 651.75 m 322.75 651.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322.75 664.75 m 326.75 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.75 664.75 m 377.75 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.75 651.75 m 377.75 651.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.75 651.75 m 430.75 651.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.75 651.75 m 470.75 651.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.75 651.75 m 523.75 651.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 527.75 651.75 m 559.75 651.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 161.75 566.75 m 212.75 566.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.75 566.75 m 267.75 566.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.75 566.75 m 322.75 566.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.75 566.75 m 377.75 566.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.75 566.75 m 430.75 566.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.75 566.75 m 523.75 566.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 161.75 281.75 m 212.75 281.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.75 281.75 m 267.75 281.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.75 281.75 m 322.75 281.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.75 281.75 m 377.75 281.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.75 281.75 m 430.75 281.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.75 281.75 m 523.75 281.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 161.75 266.75 m 212.75 266.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.75 266.75 m 267.75 266.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.75 266.75 m 322.75 266.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.75 266.75 m 377.75 266.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.75 266.75 m 430.75 266.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.75 266.75 m 523.75 266.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 161.75 206.75 m 212.75 206.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.75 206.75 m 267.75 206.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.75 206.75 m 322.75 206.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.75 206.75 m 377.75 206.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.75 206.75 m 430.75 206.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.75 206.75 m 523.75 206.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 161.75 181.75 m 212.75 181.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.75 181.75 m 267.75 181.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.75 181.75 m 322.75 181.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.75 181.75 m 377.75 181.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.75 181.75 m 430.75 181.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.75 181.75 m 523.75 181.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 161.75 141.75 m 212.75 141.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 161.75 107.75 m 212.75 107.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 161.75 105.75 m 212.75 105.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.75 141.75 m 267.75 141.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.75 107.75 m 267.75 107.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.75 105.75 m 267.75 105.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.75 141.75 m 322.75 141.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.75 107.75 m 322.75 107.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271.75 105.75 m 322.75 105.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.75 141.75 m 377.75 141.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.75 107.75 m 377.75 107.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.75 105.75 m 377.75 105.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.75 141.75 m 430.75 141.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.75 107.75 m 430.75 107.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.75 105.75 m 430.75 105.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.75 141.75 m 523.75 141.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.75 107.75 m 523.75 107.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.75 105.75 m 523.75 105.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.55 689.98 Td (2018 vs 2017 Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 164.45 676.98 Td (For) Tj ET Q q 0 0 0 rg BT 176.82 676.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 191.33 676.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 204.53 676.98 Td (ee Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 200.00 668.98 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 279.20 676.98 Td (For) Tj ET Q q 0 0 0 rg BT 291.57 676.98 Td ( the Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 310.00 668.98 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.45 668.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 414.71 668.98 Td (ee Months) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.30 668.98 Td (Six Months) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 178.75 655.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 233.75 655.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 288.75 655.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 343.75 655.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.70 655.98 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.25 655.98 Td (%) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.70 655.98 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 539.25 655.98 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 641.42 Td (Revenue:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.25 626.42 Td (Subscriber revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.25 626.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.85 626.42 Td (1,138,962) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.25 626.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.85 626.42 Td (1,1) Tj ET Q q 0 0 0 rg BT 236.35 626.42 Td (1) Tj ET Q q 0 0 0 rg BT 241.35 626.42 Td (1,01) Tj ET Q q 0 0 0 rg BT 258.85 626.42 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.25 626.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.85 626.42 Td (2,256,046) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.25 626.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.85 626.42 Td (2,189,268) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.25 626.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.40 626.42 Td (27,951) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.55 626.42 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.90 626.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.25 626.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.40 626.42 Td (66,778) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.55 626.42 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 626.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.25 611.42 Td (Advertising revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.40 611.42 Td (47,242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.40 611.42 Td (40,178) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.40 611.42 Td (89,290) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.40 611.42 Td (76,194) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.40 611.42 Td (7,064) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.55 611.42 Td (18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.90 611.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.40 611.42 Td (13,096) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.55 611.42 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 611.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.25 596.42 Td (Equipment revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.40 596.42 Td (36,840) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.40 596.42 Td (29,674) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.40 596.42 Td (71,929) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.40 596.42 Td (59,332) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.40 596.42 Td (7,166) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.55 596.42 Td (24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.90 596.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.40 596.42 Td (12,597) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.55 596.42 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 596.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.25 581.42 Td (Music royalty fee) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.25 571.42 Td (and other revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.35 571.42 Td (209,255) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.35 571.42 Td (166,706) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.35 571.42 Td (390,136) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.35 571.42 Td (316,841) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.40 571.42 Td (42,549) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.55 571.42 Td (26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.90 571.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.40 571.42 Td (73,295) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.55 571.42 Td (23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 571.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 546.42 Td (T) Tj ET Q q 0 0 0 rg BT 60.01 546.42 Td (otal revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.85 546.42 Td (1,432,299) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.85 546.42 Td (1,347,569) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.85 546.42 Td (2,807,401) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.85 546.42 Td (2,641,635) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.40 546.42 Td (84,730) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.55 546.42 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.90 546.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.35 546.42 Td (165,766) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.55 546.42 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 546.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 531.42 Td (Operating expenses:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.25 531.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.25 531.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.25 516.42 Td (Cost of services:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.25 516.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.25 516.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.25 501.42 Td (Revenue share and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.25 491.42 Td (royalties) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.35 491.42 Td (404,284) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.35 491.42 Td (292,893) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.35 491.42 Td (714,416) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.35 491.42 Td (570,193) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.35 491.42 Td (1) Tj ET Q q 0 0 0 rg BT 399.35 491.42 Td (1) Tj ET Q q 0 0 0 rg BT 404.35 491.42 Td (1,391) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.55 491.42 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.90 491.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.35 491.42 Td (144,223) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.55 491.42 Td (25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 491.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.25 476.42 Td (Programming and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.25 466.42 Td (content) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.35 466.42 Td (105,650) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.40 466.42 Td (96,255) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.35 466.42 Td (206,486) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.35 466.42 Td (191,799) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.40 466.42 Td (9,395) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.55 466.42 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.90 466.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.40 466.42 Td (14,687) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.55 466.42 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 466.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.25 451.42 Td (Customer service) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.25 441.42 Td (and billing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.40 441.42 Td (95,582) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.40 441.42 Td (95,324) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.35 441.42 Td (189,447) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.35 441.42 Td (192,099) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.90 441.42 Td (258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.55 441.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.90 441.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.05 441.47 Td (\(2,652) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.90 441.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.20 441.42 Td (\(1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.55 441.42 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.25 426.42 Td (Satellite and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.25 416.42 Td (transmission) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.40 416.42 Td (23,478) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.40 416.42 Td (19,603) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.40 416.42 Td (46,200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.40 416.42 Td (40,179) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.40 416.42 Td (3,875) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.55 416.42 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.90 416.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.40 416.42 Td (6,021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.55 416.42 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 416.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.25 401.42 Td (Cost of equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.40 401.42 Td (7,674) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.40 401.42 Td (9,371) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.40 401.42 Td (14,771) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.40 401.42 Td (16,283) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.05 401.47 Td (\(1,697) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.90 401.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.20 401.42 Td (\(18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.55 401.42 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.05 401.47 Td (\(1,512) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.90 401.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.20 401.42 Td (\(9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.55 401.42 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 386.42 Td (Subscriber acquisition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 376.42 Td (costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.35 376.42 Td (1) Tj ET Q q 0 0 0 rg BT 181.35 376.42 Td (19,778) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.35 376.42 Td (125,154) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.35 376.42 Td (242,471) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.35 376.42 Td (252,642) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.05 376.47 Td (\(5,376) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.90 376.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.20 376.42 Td (\(4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.55 376.42 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.05 376.47 Td (\(10,171) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.90 376.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.20 376.42 Td (\(4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.55 376.42 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 361.42 Td (Sales and marketing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.35 361.42 Td (1) Tj ET Q q 0 0 0 rg BT 181.35 361.42 Td (19,435) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.35 361.42 Td (106,707) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.35 361.42 Td (226,146) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.35 361.42 Td (203,616) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.40 361.42 Td (12,728) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.55 361.42 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.90 361.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.40 361.42 Td (22,530) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.55 361.42 Td (1) Tj ET Q q 0 0 0 rg BT 542.55 361.42 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 361.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 346.42 Td (Engineering, design and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 336.42 Td (development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.40 336.42 Td (27,485) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.40 336.42 Td (27,783) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.40 336.42 Td (58,122) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.40 336.42 Td (51,600) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.55 336.47 Td (\(298) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.90 336.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.20 336.42 Td (\(1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.55 336.42 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.40 336.42 Td (6,522) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.55 336.42 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 336.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 321.42 Td (General and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 311.42 Td (administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.40 311.42 Td (92,683) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.40 311.42 Td (84,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.35 311.42 Td (177,289) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.35 311.42 Td (162,808) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.40 311.42 Td (8,076) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.55 311.42 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.90 311.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.40 311.42 Td (14,481) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.55 311.42 Td (9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 311.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 296.42 Td (Depreciation and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 286.42 Td (amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.40 286.42 Td (74,623) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.40 286.42 Td (73,519) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.35 286.42 Td (146,835) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.35 286.42 Td (150,223) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.40 286.42 Td (1,104) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.55 286.42 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.90 286.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.05 286.47 Td (\(3,388) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.90 286.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.20 286.42 Td (\(2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.55 286.42 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 271.42 Td (T) Tj ET Q q 0 0 0 rg BT 60.01 271.42 Td (otal operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.85 271.42 Td (1,070,672) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.35 271.42 Td (931,216) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.85 271.42 Td (2,022,183) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.85 271.42 Td (1,831,442) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.35 271.42 Td (139,456) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.55 271.42 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.90 271.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.35 271.42 Td (190,741) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.55 271.42 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 271.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.25 256.42 Td (Income from operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.35 256.42 Td (361,627) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.35 256.42 Td (416,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.35 256.42 Td (785,218) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.35 256.42 Td (810,193) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.05 256.47 Td (\(54,726) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.90 256.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.20 256.42 Td (\(13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.55 256.42 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.05 256.47 Td (\(24,975) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.90 256.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.20 256.42 Td (\(3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.55 256.42 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 241.42 Td (Other income \(expense\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.25 226.42 Td (Interest expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.05 226.42 Td (\(86,917) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.90 226.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.05 226.42 Td (\(82,794) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.90 226.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.05 226.47 Td (\(176,706) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.90 226.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.05 226.47 Td (\(164,451) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.90 226.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.05 226.47 Td (\(4,123) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.90 226.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.20 226.42 Td (\(5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.55 226.42 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.05 226.47 Td (\(12,255) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.90 226.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.20 226.42 Td (\(7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.55 226.42 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.25 211.42 Td (Other income \(expense\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.40 211.42 Td (88,212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.05 211.42 Td (\(1) Tj ET Q q 0 0 0 rg BT 241.38 211.42 Td (1,937) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.90 211.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.35 211.42 Td (124,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.05 211.47 Td (\(3,074) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.90 211.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.35 211.42 Td (100,149) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.45 211.42 Td (nm) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.35 211.42 Td (127,174) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.45 211.42 Td (nm) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 196.42 Td (T) Tj ET Q q 0 0 0 rg BT 60.01 196.42 Td (otal other income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 186.42 Td (\(expense\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.40 186.42 Td (1,295) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.05 186.42 Td (\(94,731) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.90 186.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.05 186.47 Td (\(52,606) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.90 186.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.05 186.47 Td (\(167,525) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.90 186.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.40 186.42 Td (96,026) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.55 186.42 Td (101) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.90 186.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.35 186.42 Td (1) Tj ET Q q 0 0 0 rg BT 492.35 186.42 Td (14,919) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.55 186.42 Td (69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 186.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 171.42 Td (Income before income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 161.42 Td (taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.35 161.42 Td (362,922) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.35 161.42 Td (321,622) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.35 161.42 Td (732,612) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.35 161.42 Td (642,668) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.40 161.42 Td (41,300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.55 161.42 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.90 161.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.40 161.42 Td (89,944) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.55 161.42 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 161.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 146.42 Td (Income tax expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.05 146.42 Td (\(70,570) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.90 146.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.05 146.42 Td (\(1) Tj ET Q q 0 0 0 rg BT 236.38 146.42 Td (19,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.90 146.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.05 146.47 Td (\(150,819) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.90 146.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.05 146.47 Td (\(233,486) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.90 146.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.40 146.42 Td (48,943) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.55 146.42 Td (41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.90 146.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.40 146.42 Td (82,667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.55 146.42 Td (35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 146.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 131.42 Td (Net income attributable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 121.42 Td (to Sirius XM Radio Inc.'s) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 111.42 Td (sole stockholder) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.25 111.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.35 111.42 Td (292,352) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.25 111.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.35 111.42 Td (202,109) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.25 111.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.35 111.42 Td (581,793) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.25 111.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.35 111.42 Td (409,182) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.25 111.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.40 111.42 Td (90,243) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.55 111.42 Td (45) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.90 111.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.25 111.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.35 111.42 Td (172,61) Tj ET Q q 0 0 0 rg BT 514.85 111.42 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.55 111.42 Td (42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 111.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 93.45 Td (nm - not meaningful) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.50 63.45 Td (T) Tj ET Q q 0 0 0 rg BT 68.69 63.45 Td (otal Revenue) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 45.45 Td (Subscriber Revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.69 45.45 Td (includes subscription, activation and other fees.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.92 45.45 Td ( ) Tj ET Q endstream endobj 63 0 obj <>] /Rotate 0 /Contents 64 0 R>> endobj 64 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 742.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 742.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 742.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 742.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 742.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 742.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 742.10 Td (, subscriber revenue was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.48 742.10 Td ($1,138,962) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.48 742.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.92 742.10 Td ($1,1) Tj ET Q q 0 0 0 rg BT 466.05 742.10 Td (1) Tj ET Q q 0 0 0 rg BT 470.68 742.10 Td (1,01) Tj ET Q q 0 0 0 rg BT 487.81 742.10 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.81 742.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 545.47 742.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.47 742.10 Td (an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 730.10 Td (increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.25 730.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.58 730.10 Td (3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.91 730.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.74 730.10 Td ($27,951) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.24 730.10 Td (. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.85 730.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.47 730.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.35 730.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.18 730.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.62 730.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.62 730.10 Td (, subscriber revenue was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.41 730.10 Td ($2,256,046) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.41 730.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 718.10 Td ($2,189,268) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 718.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 174.16 718.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.16 718.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.85 718.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.18 718.10 Td (3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.51 718.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.34 718.10 Td ($66,778) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.84 718.10 Td (. ) Tj ET Q q 0 0 0 rg BT 303.66 718.10 Td (The increases were primarily attributable to a 5% increase in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 706.10 Td (daily weighted average number of subscribers. Subscriber revenue was negatively impacted by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.37 706.10 Td ($23,787) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.87 706.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.31 706.10 Td ($48,179) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.81 706.10 Td (, for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 694.10 Td (the three and six months ended June 30, 2018, respectively) Tj ET Q q 0 0 0 rg BT 311.63 694.10 Td (, from the adoption of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.06 694.10 Td (Accounting Standards Update \("ASU"\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 682.10 Td (2014-09, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 114.83 682.10 Td (Revenue - Revenue fr) Tj ET Q q 0 0 0 rg BT 199.68 682.10 Td (om Contracts with Customers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.86 682.10 Td (, and all related amendments, which established ) Tj ET Q q 0 0 0 rg BT 511.86 682.10 Td (Accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 670.10 Td (Standards Codification \("ASC"\) ) Tj ET Q q 0 0 0 rg BT 207.53 670.10 Td (T) Tj ET Q q 0 0 0 rg BT 212.94 670.10 Td (opic 606 \(the "new revenue standard"\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.88 670.10 Td (, ef) Tj ET Q q 0 0 0 rg BT 379.46 670.10 Td (fective as of January 1, 2018.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 646.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 646.10 Td (e expect subscriber revenues to increase based on the growth of our subscriber base, increases in the average price ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (char) Tj ET Q q 0 0 0 rg BT 66.53 634.10 Td (ged and the sale of additional services to subscribers.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 610.10 Td (Advertising Revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.47 610.10 Td (includes the sale of advertising on certain non-music channels.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 586.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 586.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 586.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 586.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 586.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 586.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 586.10 Td (, advertising revenue was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.82 586.10 Td ($47,242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.32 586.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.76 586.10 Td ($40,178) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.26 586.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 524.92 586.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.92 586.10 Td (an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 574.10 Td (increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.25 574.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.58 574.10 Td (18%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.91 574.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.74 574.10 Td ($7,064) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.24 574.10 Td (. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.85 574.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.47 574.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.35 574.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.18 574.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.62 574.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.62 574.10 Td (, advertising revenue was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.75 574.10 Td ($89,290) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.25 574.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 562.10 Td ($76,194) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.00 562.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 161.66 562.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.66 562.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.35 562.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.68 562.10 Td (17%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.01 562.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.84 562.10 Td ($13,096) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.34 562.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.66 562.10 Td (The increases were primarily due to a greater number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 550.10 Td (advertising spots sold and transmitted as well as increases in rates char) Tj ET Q q 0 0 0 rg BT 359.30 550.10 Td (ged per spot.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 526.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 526.10 Td (e expect our advertising revenue to continue to grow as more advertisers are attracted to our national platform and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (growing subscriber base and as we launch additional non-music channels.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 490.10 Td (Equipment Revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.69 490.10 Td (includes revenue from the sale of satellite radios, components and accessories as well as the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (connected vehicle devices and royalty revenue on chipset modules.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 454.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 454.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 454.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 454.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 454.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 454.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 454.10 Td (, equipment revenue was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.60 454.10 Td ($36,840) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.10 454.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.54 454.10 Td ($29,674) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.04 454.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 522.70 454.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.70 454.10 Td (an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 442.10 Td (increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.25 442.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.58 442.10 Td (24%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.91 442.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.74 442.10 Td ($7,166) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.24 442.10 Td (. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.85 442.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.47 442.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.35 442.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.18 442.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.62 442.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.62 442.10 Td (, equipment revenue was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.53 442.10 Td ($71,929) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.03 442.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 430.10 Td ($59,332) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.00 430.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 161.66 430.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.66 430.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.35 430.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.68 430.10 Td (21%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.01 430.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.84 430.10 Td ($12,597) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.34 430.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.66 430.10 Td (The increases were driven by additional royalty revenue due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 418.10 Td (our transition to a new generation of chipsets and revenue from the sales of connected vehicle devices, partially of) Tj ET Q q 0 0 0 rg BT 533.10 418.10 Td (fset by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 406.10 Td (lower satellite radio sales to consumers.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 382.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 382.10 Td (e expect equipment revenue to increase as royalty revenues associated with certain new chipsets increases.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 358.10 Td (Music Royalty Fee and Other Revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.66 358.10 Td (includes amounts earned from subscribers for the U.S. Music Royalty Fee, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (service and advisory revenue from our Canadian af) Tj ET Q q 0 0 0 rg BT 253.96 346.10 Td (filiate, our connected vehicle services, and ancillary revenues.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 322.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 322.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 322.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 322.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 322.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 322.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 322.10 Td (, other revenue was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.93 322.10 Td ($209,255) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.43 322.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.87 322.10 Td ($166,706) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.37 322.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 511.03 322.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.03 322.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.72 322.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 310.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.33 310.10 Td (26%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.66 310.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.49 310.10 Td ($42,549) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.99 310.10 Td (. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.60 310.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.22 310.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.09 310.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.92 310.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.36 310.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.36 310.10 Td (, other revenue was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.61 310.10 Td ($390,136) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.11 310.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.54 310.10 Td ($316,841) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.04 310.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 298.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 124.16 298.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.16 298.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.85 298.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.18 298.10 Td (23%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.51 298.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.34 298.10 Td ($73,295) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.84 298.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.16 298.10 Td (The increases were primarily driven by U.S. Music Royalty Fee revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 286.10 Td (due to subscribers paying at a higher rate and an increase in the number of subscribers, higher revenue generated from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 274.10 Td (our connected vehicle services, and revenue from Sirius XM Canada, which was mitigated by a one-time activation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 262.10 Td (revenue resolution with Sirius XM Canada recorded in the second quarter of 2017.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 238.10 Td (Other revenue is expected to increase due to an increase in U.S. Music Royalty Fees as subscribers migrate to the new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (rate and as our subscriber base grows.) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.50 196.10 Td (Operating Expenses) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 178.10 Td (Revenue Shar) Tj ET Q q 0 0 0 rg BT 132.38 178.10 Td (e and Royalties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.53 178.10 Td (include royalties for transmitting content and web streaming as well as automaker) Tj ET Q q 0 0 0 rg BT 523.54 178.10 Td (, content ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (provider and advertising revenue share.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 142.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 142.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 142.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 142.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 142.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 142.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 142.10 Td (, revenue share and royalties were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.23 142.10 Td ($404,284) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.73 142.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.17 142.10 Td ($292,893) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.67 142.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 130.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 124.16 130.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.16 130.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.85 130.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.18 130.10 Td (38%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.51 130.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.34 130.10 Td ($1) Tj ET Q q 0 0 0 rg BT 230.97 130.10 Td (1) Tj ET Q q 0 0 0 rg BT 235.60 130.10 Td (1,391) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.10 130.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.04 130.10 Td (increased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.79 130.10 Td ( as a percentage of total revenue. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.22 130.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.84 130.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 118.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.33 118.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.77 118.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.77 118.10 Td (, revenue share and royalties were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.31 118.10 Td ($714,416) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.81 118.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.25 118.10 Td ($570,193) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.75 118.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 457.41 118.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.41 118.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.11 118.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.44 118.10 Td (25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.77 118.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 106.10 Td ($144,223) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 106.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.94 106.10 Td (increased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.69 106.10 Td ( as a percentage of total revenue. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.83 106.10 Td (The increases were primarily due to a $69,144 char) Tj ET Q q 0 0 0 rg BT 514.84 106.10 Td (ge related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 94.10 Td (to the legal settlement that resolved all outstanding claims, including ongoing audits, under our statutory license for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 82.10 Td (sound recordings for the period January 1, 2007 through December 31, 2017, an increase in the statutory royalty rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 70.10 Td (applicable to our use of post-1972 recordings, which increased from 1) Tj ET Q q 0 0 0 rg BT 356.32 70.10 Td (1% in 2017 to 15.5% in 2018 and overall greater ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 58.10 Td (revenues subject to revenue share with the automakers. ) Tj ET Q q 0 0 0 rg BT 301.79 58.10 Td (The increase was partially of) Tj ET Q q 0 0 0 rg BT 417.12 58.10 Td (fset by approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.81 58.10 Td ($22,235) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.31 58.10 Td ( and ) Tj ET Q endstream endobj 65 0 obj <>] /Rotate 0 /Contents 66 0 R>> endobj 66 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 742.10 Td ($44,304) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.00 742.10 Td (, for the three and six months ended June 30, 2018, respectively) Tj ET Q q 0 0 0 rg BT 363.29 742.10 Td (, related to the adoption of the new revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 730.10 Td (standard ef) Tj ET Q q 0 0 0 rg BT 120.46 730.10 Td (fective as of January 1, 2018.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 706.10 Td (e expect our revenue share and royalty costs to increase as our revenues grow and as a result of the increase in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (royalty rate.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 670.10 Td (Pr) Tj ET Q q 0 0 0 rg BT 87.13 670.10 Td (ogramming and Content ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.41 670.10 Td (includes costs to acquire, create, promote and produce content. ) Tj ET Q q 0 0 0 rg BT 441.02 670.10 Td (W) Tj ET Q q 0 0 0 rg BT 449.66 670.10 Td (e have entered into various ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (agreements with third parties for music and non-music programming that require us to pay license fees and other amounts.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 634.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 634.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 634.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 634.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 634.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 634.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 634.10 Td (, programming and content expenses were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.02 634.10 Td ($105,650) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.52 634.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.96 634.10 Td ($96,255) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.46 634.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 622.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 124.16 622.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.16 622.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.85 622.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.18 622.10 Td (10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.51 622.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.34 622.10 Td ($9,395) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.84 622.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.78 622.10 Td (increased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.54 622.10 Td ( as a percentage of total revenue. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.96 622.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.58 622.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 610.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.33 610.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.77 610.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.77 610.10 Td (, programming and content expenses were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.10 610.10 Td ($206,486) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.60 610.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.04 610.10 Td ($191,799) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.54 610.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 490.20 610.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.20 610.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.89 610.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 598.10 Td (8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.83 598.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.66 598.10 Td ($14,687) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.16 598.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.10 598.10 Td (increased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.85 598.10 Td ( as a percentage of total revenue. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.99 598.10 Td (The increases were primarily due to increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 586.10 Td (personnel-related costs, programming operations costs related to subscriber events, and higher music license fees.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 562.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 562.10 Td (e expect our programming and content expenses to increase as we of) Tj ET Q q 0 0 0 rg BT 360.58 562.10 Td (fer additional programming, and renew or replace ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (expiring agreements.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 526.10 Td (Customer Service and Billing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.04 526.10 Td (includes costs associated with the operation and management of internal and third party ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (customer service centers, and our subscriber management systems as well as billing and collection costs, bad debt expense, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (transaction fees.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 478.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 478.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 478.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 478.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 478.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 478.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 478.10 Td (, customer service and billing expenses were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.74 478.10 Td ($95,582) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.24 478.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.68 478.10 Td ($95,324) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.18 478.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 466.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 124.16 466.10 Td (, a slight increase of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.91 466.10 Td ($258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.91 466.10 Td (, but ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.19 466.10 Td (decreased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.60 466.10 Td ( as a percentage of total revenue. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.03 466.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.65 466.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.52 466.10 Td (June30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 454.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.50 454.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.94 454.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.94 454.10 Td (, customer service and billing expenses were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.99 454.10 Td ($189,447) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.49 454.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.93 454.10 Td ($192,099) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.43 454.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 464.09 454.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.09 454.10 Td (a decrease) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.44 454.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.77 454.10 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.10 454.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 442.10 Td ($2,652) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 442.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.94 442.10 Td (decreased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.35 442.10 Td ( as a percentage of total revenue. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.49 442.10 Td (The increased expenses for the three month period was driven ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 430.10 Td (primarily by increased transaction fees from a lar) Tj ET Q q 0 0 0 rg BT 273.18 430.10 Td (ger subscriber base and overhead costs, of) Tj ET Q q 0 0 0 rg BT 441.55 430.10 Td (fset by lower call center costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 418.10 Td (due to lower agent and contact rates, and bad debt expense. ) Tj ET Q q 0 0 0 rg BT 318.45 418.10 Td (The decreased expenses for the six month period was driven ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 406.10 Td (by lower call center costs due to lower agent and contact rates, and bad debt expense, partially of) Tj ET Q q 0 0 0 rg BT 464.22 406.10 Td (fset by increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 394.10 Td (transaction fees from a lar) Tj ET Q q 0 0 0 rg BT 180.71 394.10 Td (ger subscriber base and overhead costs.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 370.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 370.10 Td (e expect our customer service and billing expenses to increase as our subscriber base grows.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 346.10 Td (Satellite and T) Tj ET Q q 0 0 0 rg BT 135.28 346.10 Td (ransmission ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.12 346.10 Td (consists of costs associated with the operation and maintenance of our terrestrial repeater ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (networks; satellites; satellite telemetry) Tj ET Q q 0 0 0 rg BT 202.42 334.10 Td (, tracking and control systems; satellite uplink facilities; studios; and delivery of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (Internet streaming and connected vehicle services.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 298.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 298.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 298.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 298.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 298.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 298.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 298.10 Td (, satellite and transmission expenses were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.81 298.10 Td ($23,478) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.31 298.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.75 298.10 Td ($19,603) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.25 298.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 286.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 124.16 286.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.16 286.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.85 286.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.18 286.10 Td (20%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.51 286.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.34 286.10 Td ($3,875) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.84 286.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.78 286.10 Td (increased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.54 286.10 Td ( as a percentage of total revenue. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.96 286.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.58 286.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 274.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.33 274.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.77 274.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.77 274.10 Td (, satellite and transmission expenses were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.89 274.10 Td ($46,200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.39 274.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.83 274.10 Td ($40,179) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.33 274.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 477.99 274.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.99 274.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.68 274.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.01 274.10 Td (15%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.34 274.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 262.10 Td (or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.33 262.10 Td ($6,021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.83 262.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.77 262.10 Td (increased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.52 262.10 Td ( as a percentage of total revenue. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.66 262.10 Td (The increases were primarily driven by higher wireless costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 250.10 Td (associated with our connected vehicle services and higher Internet streaming costs.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 226.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 226.10 Td (e expect satellite and transmission expenses to increase as costs associated with our investment in Internet streaming ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (increase.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 190.10 Td (Cost of Equipment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.44 190.10 Td (includes costs from the sale of satellite radios, components and accessories as well as connected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (vehicle devices, and provisions for inventory allowance attributable to products purchased for resale in our direct to consumer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (distribution channels.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 142.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 142.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 142.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 142.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 142.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 142.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 142.10 Td (, cost of equipment was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.89 142.10 Td ($7,674) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.39 142.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.83 142.10 Td ($9,371) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.33 142.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 507.99 142.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.99 142.10 Td (a decrease) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.34 142.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 130.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.33 130.10 Td (18%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.66 130.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.49 130.10 Td ($1,697) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.99 130.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.93 130.10 Td (decreased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.34 130.10 Td ( as a percentage of equipment revenue. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.21 130.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.83 130.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.70 130.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.53 130.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 118.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.50 118.10 Td (, cost of equipment was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.70 118.10 Td ($14,771) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.20 118.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.64 118.10 Td ($16,283) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.14 118.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 330.80 118.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.80 118.10 Td (a decrease) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 118.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.48 118.10 Td (9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.81 118.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.64 118.10 Td ($1,512) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.14 118.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.08 118.10 Td (decreased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.50 118.10 Td ( as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 106.10 Td (percentage of equipment revenue. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.81 106.10 Td (The decreases were primarily due to lower satellite radio sales to consumers.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 82.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 82.10 Td (e expect cost of equipment to fluctuate with changes in sales of aftermarket radios.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 58.10 Td (Subscriber ) Tj ET Q q 0 0 0 rg BT 123.15 58.10 Td (Acquisition Costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.93 58.10 Td (include hardware subsidies paid to radio manufacturers, distributors and automakers; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (subsidies paid for chipsets and certain other components used in manufacturing radios; device royalties for certain radios and ) Tj ET Q endstream endobj 67 0 obj <>] /Rotate 0 /Contents 68 0 R>> endobj 68 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (chipsets; product warranty obligations; and freight. ) Tj ET Q q 0 0 0 rg BT 256.21 742.10 Td (The majority of subscriber acquisition costs are incurred and expensed in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (advance of acquiring a subscriber) Tj ET Q q 0 0 0 rg BT 183.33 730.10 Td (. Subscriber acquisition costs do not include advertising costs, marketing, loyalty payments to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (distributors and dealers of satellite radios or revenue share payments to automakers and retailers of satellite radios.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 694.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 694.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 694.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 694.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 694.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 694.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 694.10 Td (, subscriber acquisition costs were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.10 694.10 Td ($1) Tj ET Q q 0 0 0 rg BT 432.73 694.10 Td (19,778) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.23 694.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.66 694.10 Td ($125,154) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.16 694.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 682.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 124.16 682.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.16 682.10 Td (a decrease) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.51 682.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.84 682.10 Td (4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.17 682.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.00 682.10 Td ($5,376) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.50 682.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.44 682.10 Td (decreased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.86 682.10 Td ( as a percentage of total revenue. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.28 682.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 682.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 670.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.33 670.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.77 670.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.77 670.10 Td (, subscriber acquisition costs were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.18 670.10 Td ($242,471) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.68 670.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.12 670.10 Td ($252,642) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.62 670.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 458.28 670.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.28 670.10 Td (a decrease) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.63 670.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.96 670.10 Td (4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.29 670.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 658.10 Td ($10,171) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.00 658.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.94 658.10 Td (decreased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.35 658.10 Td ( as a percentage of total revenue. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.49 658.10 Td (The decreases were driven by reductions to OEM hardware ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 646.10 Td (subsidy rates, lower subsidized costs related to the transition of chipsets, and a decrease in the volume of installations.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 622.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 622.10 Td (e expect subscriber acquisition costs to fluctuate with OEM installations and aftermarket volume; however) Tj ET Q q 0 0 0 rg BT 512.56 622.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (subsidized chipsets cost is expected to decline as we transition to a new generation of chipsets.) Tj ET Q q 0 0 0 rg BT 433.10 610.10 Td (W) Tj ET Q q 0 0 0 rg BT 441.74 610.10 Td (e intend to continue to of) Tj ET Q q 0 0 0 rg BT 541.81 610.10 Td (fer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (subsidies and other incentives to induce OEMs to include our technology in their vehicles.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 574.10 Td (Sales and Marketing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.76 574.10 Td (includes costs for marketing, advertising, media and production, including promotional events and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (sponsorships; cooperative marketing; and personnel. Marketing costs include expenses related to direct mail, outbound ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (telemarketing and email communications.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 526.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 526.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 526.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 526.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 526.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 526.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 526.10 Td (, sales and marketing expenses were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.13 526.10 Td ($1) Tj ET Q q 0 0 0 rg BT 440.76 526.10 Td (19,435) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.26 526.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.70 526.10 Td ($106,707) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.20 526.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 514.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 124.16 514.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.16 514.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.85 514.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.18 514.10 Td (12%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.51 514.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.34 514.10 Td ($12,728) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.84 514.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.78 514.10 Td (increased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.54 514.10 Td ( as a percentage of total revenue. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.96 514.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.58 514.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 502.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.33 502.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.77 502.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.77 502.10 Td (, sales and marketing expenses were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.21 502.10 Td ($226,146) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.71 502.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 502.10 Td ($203,616) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 502.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 466.31 502.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.31 502.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.01 502.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.34 502.10 Td (1) Tj ET Q q 0 0 0 rg BT 533.97 502.10 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.30 502.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 490.10 Td ($22,530) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.00 490.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.94 490.10 Td (increased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.69 490.10 Td ( as a percentage of total revenue. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.83 490.10 Td (The increases were primarily due to additional subscriber ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 478.10 Td (communications, retention programs and acquisition campaigns, as well as higher personnel-related costs.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 454.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 454.10 Td (e anticipate that sales and marketing expenses will increase as we expand programs to retain our existing subscribers, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (win back former subscribers, and attract new subscribers.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 418.10 Td (Engineering, Design and Development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.52 418.10 Td (consists primarily of compensation and related costs to develop chipsets and new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (products and services, including streaming and connected vehicle services, research and development for broadcast information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (systems and costs associated with the incorporation of our radios into new vehicles manufactured by automakers.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 370.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 370.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 370.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 370.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 370.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 370.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 370.10 Td (, engineering, design and development expenses were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.11 370.10 Td ($27,485) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.61 370.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 358.10 Td ($27,783) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.00 358.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 161.66 358.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.66 358.10 Td (a decrease) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.01 358.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.34 358.10 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.67 358.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.50 358.10 Td ($298) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 358.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.44 358.10 Td (decreased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.86 358.10 Td ( as a percentage of total revenue. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.28 358.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.90 358.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 346.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.88 346.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.71 346.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.15 346.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.15 346.10 Td (, engineering, design and development expenses were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.57 346.10 Td ($58,122) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.07 346.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.51 346.10 Td ($51,600) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.01 346.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 552.67 346.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 334.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.19 334.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.52 334.10 Td (13%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.85 334.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.68 334.10 Td ($6,522) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.18 334.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.12 334.10 Td (increased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.88 334.10 Td ( as a percentage of total revenue. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.01 334.10 Td (The decrease for the three month period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 322.10 Td (was driven by lower costs associated with the development of video streaming and our connected vehicle services, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 310.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 120.47 310.10 Td (fset by higher costs associated with the development of our audio streaming product. ) Tj ET Q q 0 0 0 rg BT 464.37 310.10 Td (The increase for the six ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 298.10 Td (month period was driven by the additional costs associated with our connected vehicle services and the development of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 286.10 Td (our audio streaming product; partially of) Tj ET Q q 0 0 0 rg BT 238.78 286.10 Td (fset by lower costs associated with the development of our video streaming ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 274.10 Td (product.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 250.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 250.10 Td (e expect engineering, design and development expenses to increase in future periods as we continue to develop our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (infrastructure, products and services.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 214.10 Td (General and ) Tj ET Q q 0 0 0 rg BT 130.09 214.10 Td (Administrative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.47 214.10 Td (primarily consists of compensation and related costs for personnel and facilities, and include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (costs related to our finance, legal, human resources and information technologies departments.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 178.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 178.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 178.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 178.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 178.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 178.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 178.10 Td (, general and administrative expenses were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.78 178.10 Td ($92,683) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.28 178.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.72 178.10 Td ($84,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.22 178.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 166.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 124.16 166.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.16 166.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.85 166.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.18 166.10 Td (10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.51 166.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.34 166.10 Td ($8,076) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.84 166.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.78 166.10 Td (increased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.54 166.10 Td ( as a percentage of total revenue. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.96 166.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.58 166.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 154.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.33 154.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.77 154.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.77 154.10 Td (, general and administrative expenses were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.87 154.10 Td ($177,289) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.37 154.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.80 154.10 Td ($162,808) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.30 154.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 492.96 154.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.96 154.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.66 154.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 142.10 Td (9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.83 142.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.66 142.10 Td ($14,481) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.16 142.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.10 142.10 Td (increased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.85 142.10 Td ( as a percentage of total revenue. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.99 142.10 Td (The increases were primarily driven by higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 130.10 Td (personnel-related costs and a one-time sales and use tax, partially of) Tj ET Q q 0 0 0 rg BT 348.72 130.10 Td (fset by lower legal costs.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 106.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 106.10 Td (e expect our general and administrative expenses to increase to support the growth of our business.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 82.10 Td (Depr) Tj ET Q q 0 0 0 rg BT 97.68 82.10 Td (eciation and ) Tj ET Q q 0 0 0 rg BT 149.71 82.10 Td (Amortization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.44 82.10 Td (represents the recognition in earnings of the cost of assets used in operations, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (our satellite constellations, property) Tj ET Q q 0 0 0 rg BT 192.15 70.10 Td (, equipment and intangible assets, over their estimated service lives.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 69 0 obj <>] /Rotate 0 /Contents 70 0 R>> endobj 70 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 742.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 742.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 742.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 742.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 742.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 742.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 742.10 Td (, depreciation and amortization expense was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.34 742.10 Td ($74,623) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.84 742.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.28 742.10 Td ($73,519) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.78 742.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 730.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 124.16 730.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.16 730.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.85 730.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.18 730.10 Td (2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.51 730.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.34 730.10 Td ($1,104) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.84 730.10 Td (, but ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.12 730.10 Td (decreased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.54 730.10 Td ( as a percentage of total revenue. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.96 730.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.58 730.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 718.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.33 718.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.77 718.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.77 718.10 Td (, depreciation and amortization expense was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.42 718.10 Td ($146,835) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.92 718.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.36 718.10 Td ($150,223) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.86 718.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 498.52 718.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.52 718.10 Td (a decrease) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.87 718.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 706.10 Td (2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.83 706.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.66 706.10 Td ($3,388) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.16 706.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.10 706.10 Td (decreased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.51 706.10 Td ( as a percentage of total revenue. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.65 706.10 Td (The increase for the three month period was driven by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 694.10 Td (additional assets placed in-service, partially of) Tj ET Q q 0 0 0 rg BT 261.81 694.10 Td (fset by lower amortization expense due to our subscriber relationships and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 682.10 Td (certain software assets being fully amortized during 2017. ) Tj ET Q q 0 0 0 rg BT 313.47 682.10 Td (The decrease for the six month period was driven by lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 670.10 Td (amortization expense due to our subscriber relationships and certain software assets being fully amortized during 2017, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 658.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 120.47 658.10 Td (fset by additional assets placed in-service.) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.50 628.10 Td (Other Income \(Expense\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 610.10 Td (Inter) Tj ET Q q 0 0 0 rg BT 96.57 610.10 Td (est Expense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.99 610.10 Td (includes interest on outstanding debt.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 586.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 586.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 586.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 586.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 586.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 586.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 586.10 Td (, interest expense was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.38 586.10 Td ($86,917) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.88 586.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.32 586.10 Td ($82,794) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.82 586.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 510.48 586.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.48 586.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.17 586.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 574.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.33 574.10 Td (5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.66 574.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.49 574.10 Td ($4,123) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.99 574.10 Td (. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.60 574.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.22 574.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.09 574.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.92 574.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.36 574.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.36 574.10 Td (, interest expense was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.05 574.10 Td ($176,706) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.55 574.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.99 574.10 Td ($164,451) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.49 574.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 562.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 124.16 562.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.16 562.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.85 562.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.18 562.10 Td (7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.51 562.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.34 562.10 Td ($12,255) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.84 562.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.16 562.10 Td (The increases were primarily due to higher average debt.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 538.10 Td (Other Income \(Expense\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.73 538.10 Td (primarily) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 214.95 538.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.45 538.10 Td (includes realized and unrealized gains and losses, interest and dividend income, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (share of the income or loss of Sirius XM Canada, and transaction costs related to non-operating investments.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 502.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 502.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 502.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 502.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 502.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 502.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 502.10 Td (, other income \(expense\) was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.09 502.10 Td ($88,212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.59 502.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.03 502.10 Td ($\(1) Tj ET Q q 0 0 0 rg BT 467.98 502.10 Td (1,937\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.81 502.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 546.48 502.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 490.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 490.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.23 490.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.10 490.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.93 490.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.37 490.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.37 490.10 Td (, other income \(expense\) was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.77 490.10 Td ($124,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.27 490.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.71 490.10 Td ($\(3,074\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.87 490.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 538.53 490.10 Td (. For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 478.10 Td (the three and six months ended June 30, 2018, other income was driven by unrealized gains of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.12 478.10 Td ($86,074) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.62 478.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.06 478.10 Td ($1) Tj ET Q q 0 0 0 rg BT 517.69 478.10 Td (17,449) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.19 478.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 466.10 Td (from a fair value adjustment of our investment in Pandora, respectively) Tj ET Q q 0 0 0 rg BT 361.04 466.10 Td (, and interest earned on our loan to Sirius XM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 454.10 Td (Canada. For the three and six months ended June 30, 2017, other loss was driven by transaction costs associated with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 442.10 Td (our investment in Pandora and our share of Sirius XM Canada's net loss.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.50 412.10 Td (Income T) Tj ET Q q 0 0 0 rg BT 102.30 412.10 Td (axes) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 394.10 Td (Income T) Tj ET Q q 0 0 0 rg BT 114.07 394.10 Td (ax Expense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.83 394.10 Td (includes the change in our deferred tax assets, foreign withholding taxes and current federal and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (state tax expenses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 364.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 364.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 364.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 364.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 364.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 364.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 364.10 Td (, income tax expense was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.10 364.10 Td ($70,570) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.60 364.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.04 364.10 Td ($1) Tj ET Q q 0 0 0 rg BT 449.66 364.10 Td (19,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.16 364.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 529.83 364.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 352.10 Td ($150,819) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 352.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.44 352.10 Td ($233,486) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.94 352.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.32 352.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.93 352.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.81 352.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.64 352.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.08 352.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.08 352.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 422.74 352.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 328.10 Td (Our ef) Tj ET Q q 0 0 0 rg BT 102.14 328.10 Td (fective tax rate for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.92 328.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.85 328.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.73 328.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.56 328.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.00 328.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.00 328.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.55 328.10 Td (19.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.38 328.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.82 328.10 Td (37.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 328.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 513.31 328.10 Td (. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 316.10 Td (ef) Tj ET Q q 0 0 0 rg BT 84.09 316.10 Td (fective tax rate for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.87 316.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.49 316.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.36 316.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.19 316.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.63 316.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.63 316.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.18 316.10 Td (20.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.01 316.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.45 316.10 Td (36.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.28 316.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 486.94 316.10 Td (. ) Tj ET Q q 0 0 0 rg BT 494.26 316.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 519.90 316.10 Td (fective tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 304.10 Td (rate for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.86 304.10 Td (three and six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.90 304.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.78 304.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.61 304.10 Td ( was primarily impacted by the reduced federal income tax rate as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 292.10 Td (result of the ) Tj ET Q q 0 0 0 rg BT 126.58 292.10 Td (T) Tj ET Q q 0 0 0 rg BT 131.99 292.10 Td (ax ) Tj ET Q q 0 0 0 rg BT 143.38 292.10 Td (Act and the recognition of excess tax benefits related to share based compensation. ) Tj ET Q q 0 0 0 rg BT 480.03 292.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 505.66 292.10 Td (fective tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 280.10 Td (rate for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.86 280.10 Td (three and six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.90 280.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.78 280.10 Td (June30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.61 280.10 Td ( was impacted by the recognition of excess tax benefits related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 268.10 Td (share based compensation. ) Tj ET Q q 0 0 0 rg BT 188.23 268.10 Td (W) Tj ET Q q 0 0 0 rg BT 196.87 268.10 Td (e estimate our ef) Tj ET Q q 0 0 0 rg BT 263.04 268.10 Td (fective tax rate for the year ending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.25 268.10 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.83 268.10 Td ( will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 256.10 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.76 256.10 Td (22%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.09 256.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (Key Financial and Operating Performance Metrics) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 208.10 Td (In this section, we present certain financial performance measures some of which are not calculated and presented in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 196.10 Td (accordance with generally accepted accounting principles in the United States \(Non-GAAP\), which include free cash flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 184.10 Td (and adjusted EBITDA. ) Tj ET Q q 0 0 0 rg BT 146.74 184.10 Td (W) Tj ET Q q 0 0 0 rg BT 155.38 184.10 Td (e also present certain operating performance measures, which include average monthly revenue per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 172.10 Td (subscriber) Tj ET Q q 0 0 0 rg BT 90.70 172.10 Td (, or ) Tj ET Q q 0 0 0 rg BT 105.98 172.10 Td (ARPU; customer service and billing expenses, per average subscriber; and subscriber acquisition cost, or SAC, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 160.10 Td (per installation. Our adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 207.19 160.10 Td ( excludes the impact of share-based payment expense and certain purchase price ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 148.10 Td (accounting adjustments related to the mer) Tj ET Q q 0 0 0 rg BT 216.71 148.10 Td (ger of Sirius and XM \(the Mer) Tj ET Q q 0 0 0 rg BT 343.16 148.10 Td (ger\). ) Tj ET Q q 0 0 0 rg BT 370.65 148.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 420.55 148.10 Td (, when applicable, our adjusted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 136.10 Td (EBITDA) Tj ET Q q 0 0 0 rg BT 86.11 136.10 Td ( metric excludes the ef) Tj ET Q q 0 0 0 rg BT 176.44 136.10 Td (fect of significant items that do not relate to the on-going performance of our business.) Tj ET Q q 0 0 0 rg BT 528.11 136.10 Td (W) Tj ET Q q 0 0 0 rg BT 536.74 136.10 Td (e use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 124.10 Td (these Non-GAAP) Tj ET Q q 0 0 0 rg BT 120.45 124.10 Td ( financial and operating performance measures to manage our business, to set operational goals and as a basis ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 112.10 Td (for determining performance-based compensation for our employees. See the accompanying glossary on pages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.46 112.10 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.46 112.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.57 112.10 Td (42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.57 112.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 100.10 Td (for more details and for the reconciliation to the most directly comparable GAAP) Tj ET Q q 0 0 0 rg BT 375.08 100.10 Td ( measure \(where applicable\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 76.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.64 76.10 Td (e believe these Non-GAAP) Tj ET Q q 0 0 0 rg BT 195.40 76.10 Td ( financial and operating performance measures provide useful information to investors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 64.10 Td (regarding our financial condition and results of operations. ) Tj ET Q q 0 0 0 rg BT 287.25 64.10 Td (W) Tj ET Q q 0 0 0 rg BT 295.89 64.10 Td (e believe investors find these Non-GAAP) Tj ET Q q 0 0 0 rg BT 461.87 64.10 Td ( financial and operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 52.10 Td (performance measures useful in evaluating our core trends because they provide a direct view of our underlying costs. ) Tj ET Q q 0 0 0 rg BT 524.93 52.10 Td (W) Tj ET Q q 0 0 0 rg BT 533.56 52.10 Td (e ) Tj ET Q endstream endobj 71 0 obj <>] /Rotate 0 /Contents 72 0 R>> endobj 72 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (believe investors use our adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 223.57 742.10 Td ( to estimate our current enterprise value and to make investment decisions. ) Tj ET Q q 0 0 0 rg BT 524.69 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 533.33 742.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (believe free cash flow provides useful supplemental information to investors regarding our cash available for future subscriber ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (acquisitions and capital expenditures, to repurchase or retire debt, to acquire other companies and our ability to return capital to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (stockholders. By providing these Non-GAAP) Tj ET Q q 0 0 0 rg BT 234.06 706.10 Td ( financial and operating performance measures, together with the reconciliations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (to the most directly comparable GAAP) Tj ET Q q 0 0 0 rg BT 205.98 694.10 Td ( measure \(where applicable\), we believe we are enhancing investors' understanding of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (our business and our results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 658.10 Td (Our Non-GAAP) Tj ET Q q 0 0 0 rg BT 143.46 658.10 Td ( financial measures should be viewed in addition to, and not as an alternative for or superior to, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (reported results prepared in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 256.04 646.10 Td (.In addition, our Non-GAAP) Tj ET Q q 0 0 0 rg BT 375.38 646.10 Td ( financial measures may not be comparable to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (similarly-titled measures by other companies.Please refer to the glossary \(pages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.29 634.10 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.29 634.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.40 634.10 Td (42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.40 634.10 Td (\) for a further discussion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (such Non-GAAP) Tj ET Q q 0 0 0 rg BT 118.24 622.10 Td ( financial and operating performance measures and reconciliations to the most directly comparable GAAP) Tj ET Q q 0 0 0 rg BT 542.44 622.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (measure \(where applicable\). Subscribers and subscription related revenues and expenses associated with our connected vehicle ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (services and Sirius XM Canada are not included in our subscriber count or subscriber) Tj ET Q q 0 0 0 rg BT 391.66 598.10 Td (-based operating metrics.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 574.10 Td (Set forth below are our subscriber balances as of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.38 574.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.88 574.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.71 574.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.21 574.10 Td (compared to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.91 574.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.41 574.10 Td (June30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.24 574.10 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 521.60 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 521.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 521.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 521.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 521.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 521.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 521.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 521.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 491.60 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 491.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 491.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 491.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 491.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 491.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 491.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 491.60 70.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 536.6 m 340.5 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 536.6 m 344.5 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 536.6 m 414.5 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 536.6 m 488.5 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 536.6 m 492.5 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 536.6 m 562.5 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 521.6 m 340.5 521.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 521.6 m 414.5 521.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 521.6 m 488.5 521.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 521.6 m 562.5 521.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 521.6 m 340.5 521.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 521.6 m 414.5 521.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 521.6 m 488.5 521.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 521.6 m 562.5 521.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 491.6 m 340.5 491.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 477.6 m 340.5 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 475.6 m 340.5 475.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 491.6 m 414.5 491.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 477.6 m 414.5 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 475.6 m 414.5 475.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 491.6 m 488.5 491.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 477.6 m 488.5 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 475.6 m 488.5 475.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 317.95 540.83 Td (As of June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.30 540.83 Td (2018 vs 2017 Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 297.00 525.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.00 525.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.95 525.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.00 525.83 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 511.06 Td (Self-pay subscribers) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 312.25 511.06 Td (28,203) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.25 511.06 Td (26,675) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.75 511.06 Td (1,528) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.00 511.06 Td (6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 511.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 496.06 Td (Paid promotional subscribers) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 316.75 496.06 Td (5,292) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 390.75 496.06 Td (5,372) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.00 496.06 Td (\(80) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.00 496.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.00 496.06 Td (\(1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.50 496.06 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 481.06 Td (Ending subscribers ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 123.99 485.14 Td (\(a\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 312.25 481.06 Td (33,495) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.25 481.06 Td (32,048) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.75 481.06 Td (1,447) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.00 481.06 Td (5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 481.06 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 466.30 Td (\(a\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 466.30 Td (Amounts may not sum as a result of rounding.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 442.30 Td (The following table contains our Non-GAAP) Tj ET Q q 0 0 0 rg BT 257.43 442.30 Td ( financial and operating performance measures which are based on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.30 Td (adjusted results of operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.30 430.30 Td (three and six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.34 430.30 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.21 430.30 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.04 430.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.48 430.30 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.48 430.30 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.98 430.30 Td ( ) Tj ET Q q 0 0 0 rg BT 412.80 430.30 Td (The ) Tj ET Q q 0 0 0 rg BT 430.30 430.30 Td (ARPU and SAC, per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.30 Td (installation, metrics for the three months ended June 30, 2018 have been reduced due to the adoption of the new revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.30 Td (standard as of January 1, 2018 by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.64 406.30 Td ($0.24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.14 406.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.57 406.30 Td ($0.24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.07 406.30 Td (, respectively) Tj ET Q q 0 0 0 rg BT 303.74 406.30 Td (. ) Tj ET Q q 0 0 0 rg BT 311.05 406.30 Td (The ) Tj ET Q q 0 0 0 rg BT 328.55 406.30 Td (ARPU and SAC, per installation, metrics for the six ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.30 Td (months ended June 30, 2018 have been reduced due to the adoption of the new revenue standard as of January 1, 2018 by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.47 394.30 Td ($0.24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.97 394.30 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.30 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.94 382.30 Td ($0.28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.44 382.30 Td (, respectively) Tj ET Q q 0 0 0 rg BT 142.10 382.30 Td (. For more information regarding the impact on these metrics, refer to the glossary) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.67 382.30 Td ( \(pages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.77 382.30 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.77 382.30 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.30 Td (42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 370.30 Td (\). For more information regarding the adoption of the new revenue standard, refer to Note 2 to our unaudited consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.30 Td (financial statements of this Quarterly Report.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 297.80 110.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 297.80 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 208.50 297.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.50 297.80 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 260.50 297.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 264.50 297.80 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 297.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 297.80 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 297.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 297.80 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 297.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 297.80 34.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 297.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.50 297.80 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.50 297.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 526.50 297.80 36.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 260.80 110.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 260.80 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 208.50 260.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.50 260.80 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 260.50 260.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 264.50 260.80 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 260.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 260.80 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 260.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 260.80 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 260.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 260.80 34.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 260.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.50 260.80 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.50 260.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 526.50 260.80 36.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 223.80 110.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 223.80 48.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 208.50 223.80 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.50 223.80 48.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 260.50 223.80 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 264.50 223.80 51.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 223.80 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 223.80 51.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 223.80 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 223.80 53.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 223.80 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 223.80 34.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 223.80 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.50 223.80 53.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.50 223.80 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 526.50 223.80 36.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 177.80 110.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 177.80 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 208.50 177.80 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.50 177.80 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 260.50 177.80 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 264.50 177.80 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 177.80 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 177.80 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 177.80 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 177.80 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 177.80 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 177.80 34.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 177.80 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.50 177.80 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.50 177.80 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 526.50 177.80 36.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 148.80 110.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 148.80 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 208.50 148.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.50 148.80 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 260.50 148.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 264.50 148.80 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 148.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 148.80 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 148.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 148.80 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 148.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 148.80 34.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 148.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.50 148.80 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.50 148.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 526.50 148.80 36.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 102.80 110.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 102.80 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 208.50 102.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 212.50 102.80 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 260.50 102.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 264.50 102.80 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 102.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 102.80 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 102.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 102.80 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 102.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 102.80 34.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 102.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.50 102.80 53.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 522.50 102.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 526.50 102.80 36.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 332.79999999999995 m 427.5 332.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 332.79999999999995 m 431.5 332.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 332.79999999999995 m 465.5 332.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465.5 332.79999999999995 m 469.5 332.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 332.79999999999995 m 522.5 332.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522.5 332.79999999999995 m 526.5 332.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 526.5 332.79999999999995 m 562.5 332.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 160.5 311.79999999999995 m 208.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 208.5 311.79999999999995 m 212.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212.5 311.79999999999995 m 260.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 311.79999999999995 m 315.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315.5 311.79999999999995 m 319.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 311.79999999999995 m 370.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 311.79999999999995 m 427.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 311.79999999999995 m 431.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 311.79999999999995 m 465.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 311.79999999999995 m 522.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522.5 311.79999999999995 m 526.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 526.5 311.79999999999995 m 562.5 311.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 160.5 297.79999999999995 m 208.5 297.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212.5 297.79999999999995 m 260.5 297.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 297.79999999999995 m 315.5 297.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 297.79999999999995 m 370.5 297.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 297.79999999999995 m 427.5 297.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 297.79999999999995 m 465.5 297.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 297.79999999999995 m 522.5 297.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 526.5 297.79999999999995 m 562.5 297.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 160.5 260.79999999999995 m 208.5 260.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 260.79999999999995 m 315.5 260.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 160.5 260.79999999999995 m 208.5 260.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 160.5 247.79999999999995 m 208.5 247.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 160.5 245.79999999999995 m 208.5 245.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212.5 260.79999999999995 m 260.5 260.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212.5 247.79999999999995 m 260.5 247.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212.5 245.79999999999995 m 260.5 245.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 260.79999999999995 m 315.5 260.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 247.79999999999995 m 315.5 247.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 245.79999999999995 m 315.5 245.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 260.79999999999995 m 370.5 260.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 247.79999999999995 m 370.5 247.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 245.79999999999995 m 370.5 245.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 260.79999999999995 m 427.5 260.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 247.79999999999995 m 427.5 247.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 245.79999999999995 m 427.5 245.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 260.79999999999995 m 522.5 260.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 247.79999999999995 m 522.5 247.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 245.79999999999995 m 522.5 245.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 160.5 245.79999999999995 m 208.5 245.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 160.5 247.79999999999995 m 208.5 247.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 245.79999999999995 m 315.5 245.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 247.79999999999995 m 315.5 247.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 245.79999999999995 m 427.5 245.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 247.79999999999995 m 427.5 247.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 245.79999999999995 m 522.5 245.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 247.79999999999995 m 522.5 247.79999999999995 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.30 337.03 Td (2018 vs 2017 Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 172.30 324.03 Td (For) Tj ET Q q 0 0 0 rg BT 184.67 324.03 Td ( the ) Tj ET Q q 0 0 0 rg BT 199.18 324.03 Td (Thr) Tj ET Q q 0 0 0 rg BT 212.38 324.03 Td (ee Months) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 183.65 316.03 Td (Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 271.95 324.03 Td (For) Tj ET Q q 0 0 0 rg BT 284.32 324.03 Td ( the Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 302.75 316.03 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 395.20 316.03 Td (Thr) Tj ET Q q 0 0 0 rg BT 408.46 316.03 Td (ee Months) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 496.05 316.03 Td (Six Months) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 176.00 302.03 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 228.00 302.03 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 281.50 302.03 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.50 302.03 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 386.45 302.03 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 444.00 302.03 Td (%) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 481.45 302.03 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 540.00 302.03 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 288.26 Td (Self-pay subscribers) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 187.00 288.26 Td (483) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.00 288.26 Td (466) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.00 288.26 Td (690) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.00 288.26 Td (725) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 407.50 288.26 Td (17) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.00 288.26 Td (4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 457.50 288.26 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 499.50 288.26 Td (\(35) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 511.50 288.26 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.00 288.26 Td (\(5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.50 288.26 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 274.26 Td (Paid promotional) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 265.26 Td (subscribers) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 188.50 265.26 Td (\(54) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 200.50 265.26 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 240.50 265.26 Td (\(20) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 252.50 265.26 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 298.50 265.26 Td (69) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 350.50 265.26 Td (\(23) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 362.50 265.26 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.50 265.26 Td (\(34) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 416.50 265.26 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 438.00 265.26 Td (\(170) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 454.50 265.26 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.50 265.26 Td (92) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 538.00 265.26 Td (400) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 265.26 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 251.26 Td (Net additions ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 103.49 255.34 Td (\(a\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 187.00 251.26 Td (429) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 239.00 251.26 Td (445) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 294.00 251.26 Td (759) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 349.00 251.26 Td (702) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.50 251.26 Td (\(16) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 416.50 251.26 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.00 251.26 Td (\(4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 454.50 251.26 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 502.50 251.26 Td (57) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.00 251.26 Td (8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 251.26 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 237.26 Td (Daily weighted average) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 228.26 Td (number of subscribers) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 175.75 228.26 Td (33,197) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 227.75 228.26 Td (31,746) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 282.75 228.26 Td (33,013) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 337.75 228.26 Td (31,559) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 396.25 228.26 Td (1,451) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.00 228.26 Td (5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 457.50 228.26 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 491.25 228.26 Td (1,454) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.00 228.26 Td (5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 228.26 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 214.26 Td (A) Tj ET Q q 0 0 0 rg BT 59.17 214.26 Td (verage self-pay monthly) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 205.26 Td (churn) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 189.25 205.26 Td (1.6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 200.50 205.26 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 241.25 205.26 Td (1.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 252.50 205.26 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 296.25 205.26 Td (1.7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 307.50 205.26 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 351.25 205.26 Td (1.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 362.50 205.26 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 402.25 205.26 Td (\(0.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 416.50 205.26 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.00 205.26 Td (\(6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 454.50 205.26 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 497.25 205.26 Td (\(0.1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 511.50 205.26 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.00 205.26 Td (\(6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.50 205.26 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 191.26 Td (New vehicle consumer) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 182.26 Td (conversion rate) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 191.50 182.26 Td (39) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 200.50 182.26 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 243.50 182.26 Td (40) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 252.50 182.26 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 298.50 182.26 Td (39) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 307.50 182.26 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 353.50 182.26 Td (40) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 362.50 182.26 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 409.00 182.26 Td (\(1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 416.50 182.26 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.00 182.26 Td (\(3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 454.50 182.26 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.00 182.26 Td (\(1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 511.50 182.26 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.00 182.26 Td (\(3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.50 182.26 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 153.26 Td (ARPU) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 163.00 153.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 180.25 153.26 Td (13.30) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 215.00 153.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 232.25 153.26 Td (13.22) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 267.00 153.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 287.25 153.26 Td (13.13) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.00 153.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 342.25 153.26 Td (13.08) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.00 153.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.75 153.26 Td (0.08) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.00 153.26 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 457.50 153.26 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.00 153.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 495.75 153.26 Td (0.05) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 153.26 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 153.26 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 139.26 Td (SAC, per installation) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 163.00 139.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 180.25 139.26 Td (27.54) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 215.00 139.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 232.25 139.26 Td (31.19) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 267.00 139.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 287.25 139.26 Td (27.86) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.00 139.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 342.25 139.26 Td (30.18) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.00 139.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.75 139.26 Td (\(3.65) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 416.50 139.26 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 442.50 139.26 Td (\(12) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 454.50 139.26 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.00 139.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.75 139.26 Td (\(2.32) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 511.50 139.26 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.00 139.26 Td (\(8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.50 139.26 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 125.26 Td (Customer service and billing) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 116.26 Td (expenses, per average) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 107.26 Td (subscriber) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 163.00 107.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 184.75 107.26 Td (0.89) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 215.00 107.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 236.75 107.26 Td (0.94) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 267.00 107.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 291.75 107.26 Td (0.88) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.00 107.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 346.75 107.26 Td (0.95) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.00 107.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 397.75 107.26 Td (\(0.05) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 416.50 107.26 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.00 107.26 Td (\(5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 454.50 107.26 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.00 107.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.75 107.26 Td (\(0.07) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 511.50 107.26 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.00 107.26 Td (\(7) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.50 107.26 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 93.26 Td (Adjusted EBITDA) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 163.00 93.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 171.25 93.26 Td (543,422) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 215.00 93.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 223.25 93.26 Td (521,936) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 267.00 93.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 271.50 93.26 Td (1,075,271) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.00 93.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 326.50 93.26 Td (1,023,739) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.00 93.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.75 93.26 Td (21,486) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 450.00 93.26 Td (4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 457.50 93.26 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.00 93.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 486.75 93.26 Td (51,532) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.00 93.26 Td (5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 93.26 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 79.26 Td (Free cash flow) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 163.00 79.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 171.25 79.26 Td (486,243) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 215.00 79.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 223.25 79.26 Td (416,725) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 267.00 79.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 278.25 79.26 Td (812,705) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 322.00 79.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 333.25 79.26 Td (665,664) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.00 79.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.75 79.26 Td (69,518) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 445.50 79.26 Td (17) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 457.50 79.26 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.00 79.26 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 482.25 79.26 Td (147,041) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 79.26 Td (22) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 79.26 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 64.50 Td (\(a\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 64.50 Td (Amounts may not sum as a result of rounding.) Tj ET Q endstream endobj 73 0 obj <>] /Rotate 0 /Contents 74 0 R>> endobj 74 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (35) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 742.10 Td (Subscribers. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.72 742.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.22 742.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.05 742.10 Td (, we had approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.41 742.10 Td (33.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.91 742.10 Td ( million subscribers, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.79 742.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.48 742.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.81 742.10 Td (1.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.31 742.10 Td ( million subscribers, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.83 730.10 Td (, from the approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.74 730.10 Td (32.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.24 730.10 Td ( million subscribers as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.29 730.10 Td (June30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.12 730.10 Td (. ) Tj ET Q q 0 0 0 rg BT 348.44 730.10 Td (The increase in total subscribers was primarily due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (growth in our self-pay subscriber base, which increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.71 718.10 Td (1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.60 718.10 Td (, partially of) Tj ET Q q 0 0 0 rg BT 367.57 718.10 Td (fset by an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.94 718.10 Td (80) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.94 718.10 Td ( thousand decrease in paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (promotional subscribers. ) Tj ET Q q 0 0 0 rg BT 153.19 706.10 Td (The increase in self-pay subscribers was primarily from original and subsequent owner trial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (conversions and subscriber win back programs, partially of) Tj ET Q q 0 0 0 rg BT 285.92 694.10 Td (fset by deactivations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 676.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 676.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 676.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 676.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 676.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 676.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 676.10 Td (, net additions were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.50 676.10 Td (429) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.50 676.10 Td ( thousand and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.54 676.10 Td (445) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.54 676.10 Td ( thousand, respectively) Tj ET Q q 0 0 0 rg BT 543.81 676.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.81 676.10 Td (a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 664.10 Td (decrease) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.91 664.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.24 664.10 Td (4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.57 664.10 Td (. Paid promotional net additions declined due to paid promotional ends out-pacing paid-promotional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 652.10 Td (starts during the three months ended June 30, 2018. Self-pay net additions increased due to growth in trial conversions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 640.10 Td (and subscriber win backs and improvements in our non-pay churn.For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.71 640.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.33 640.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.21 640.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.04 640.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.47 640.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.47 640.10 Td (, net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 628.10 Td (additions were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.59 628.10 Td (759) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.59 628.10 Td ( thousand and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.64 628.10 Td (702) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.64 628.10 Td ( thousand, respectively) Tj ET Q q 0 0 0 rg BT 316.91 628.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.91 628.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.60 628.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.93 628.10 Td (8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.26 628.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.76 628.10 Td (For the six month period, growth in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 616.10 Td (paid promotional net additions was due to paid promotional subscription starts out-pacing paid promotional subscription ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 604.10 Td (ends as a result of higher shipments from automakers of) Tj ET Q q 0 0 0 rg BT 300.43 604.10 Td (fering paid promotional subscriptions while self-pay net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 592.10 Td (additions decreased due to growth in vehicle turnover out-pacing growth in trial conversions and subscriber win backs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.70 592.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 568.10 Td (A) Tj ET Q q 0 0 0 rg BT 83.06 568.10 Td (verage Self-pay Monthly Churn ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.91 568.10 Td (is derived by dividing the monthly average of self-pay deactivations for the period by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 556.10 Td (the average number of self-pay subscribers forthe period.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.80 556.10 Td ( \(See accompanying glossary on pages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.98 556.10 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.98 556.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.08 556.10 Td (42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.08 556.10 Td ( for more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 544.10 Td (details.\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 526.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 526.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 526.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 526.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 526.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 526.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 526.10 Td (, our average self-pay monthly churn rate was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.45 526.10 Td (1.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.28 526.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.72 526.10 Td (1.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.55 526.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 514.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 124.16 514.10 Td (. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.77 514.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.39 514.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.26 514.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.09 514.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.53 514.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.53 514.10 Td (, our average self-pay monthly churn rate was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.29 514.10 Td (1.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.13 514.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 502.10 Td (1.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.33 502.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 149.99 502.10 Td (. ) Tj ET Q q 0 0 0 rg BT 157.31 502.10 Td (The decreases in churn were primarily driven by improvements in non-pay and voluntary churn.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 478.10 Td (New V) Tj ET Q q 0 0 0 rg BT 102.78 478.10 Td (ehicle Consumer Conversion Rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.20 478.10 Td (is the percentage of owners and lessees of new vehicles that receive our service ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (and convert to become self-paying subscribers after an initial promotional period. ) Tj ET Q q 0 0 0 rg BT 378.10 466.10 Td (The metric excludes rental and fleet vehicles.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 559.41 466.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (\(See accompanying glossary on pages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.18 454.10 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.18 454.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.29 454.10 Td (42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.29 454.10 Td ( for more details.\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 436.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 436.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 436.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 436.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 436.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 436.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 436.10 Td (, our new vehicle consumer conversion rate was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.34 436.10 Td (39%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.67 436.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.11 436.10 Td (40%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.44 436.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 424.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 124.16 424.10 Td (. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.77 424.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.39 424.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.26 424.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.09 424.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.53 424.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.53 424.10 Td (, our new vehicle consumer conversion rate was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.19 424.10 Td (39%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.52 424.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 412.10 Td (40%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.83 412.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 147.49 412.10 Td (.) Tj ET Q q 0 0 0 rg BT 154.81 412.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.86 412.10 Td (decrease) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.27 412.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.77 412.10 Td (in new vehicle consumer conversion rate was driven primarily by a decline in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 400.10 Td (conversion of first time trial subscribers.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 376.10 Td (ARPU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 376.10 Td (is derived from total earned subscriber revenue \(excluding revenue derived from our connected vehicle services\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 364.10 Td (net advertising revenue and other subscription-related revenue, divided by the number of months in the period, divided by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 352.10 Td (daily weighted average number of subscribers for the period.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.03 352.10 Td ( \(See the accompanying glossary on pages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.92 352.10 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.92 352.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.03 352.10 Td (42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.03 352.10 Td ( for more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 340.10 Td (details.\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 322.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 322.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 322.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 322.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 322.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 322.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 322.10 Td (, ) Tj ET Q q 0 0 0 rg BT 288.14 322.10 Td (ARPU was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.36 322.10 Td ($13.30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.86 322.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.30 322.10 Td ($13.22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.80 322.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 462.46 322.10 Td (. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.07 322.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.69 322.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 310.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.88 310.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.71 310.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.15 310.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.15 310.10 Td (, ) Tj ET Q q 0 0 0 rg BT 202.59 310.10 Td (ARPU was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.82 310.10 Td ($13.13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.32 310.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.76 310.10 Td ($13.08) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.26 310.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 376.92 310.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.24 310.10 Td (The increase in certain of our subscription ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 298.10 Td (rates, including the U. S. Music Royalty Fee, and higher advertising revenue was of) Tj ET Q q 0 0 0 rg BT 411.52 298.10 Td (fset by the impact of the adoption of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 286.10 Td (the new revenue standard, ef) Tj ET Q q 0 0 0 rg BT 190.99 286.10 Td (fective as of January 1, 2018 of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.28 286.10 Td ($0.24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.78 286.10 Td ( for both the three and six month periods, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.52 286.10 Td (and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 274.10 Td (growth in subscription discounts of) Tj ET Q q 0 0 0 rg BT 217.42 274.10 Td (fered through customer acquisition and retention programs.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 250.10 Td (SAC, Per Installation, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.33 250.10 Td (is derived from subscriber acquisition costs and mar) Tj ET Q q 0 0 0 rg BT 376.71 250.10 Td (gins from the sale of radios, components and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (accessories \(excluding connected vehicle services\), divided by the number of satellite radio installations in new vehicles and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (shipments of aftermarket radios for the period.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.83 226.10 Td ( \(See the accompanying glossary on pages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.72 226.10 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.72 226.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.83 226.10 Td (42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.83 226.10 Td ( for more details.\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 208.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 208.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 208.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 208.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 208.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 208.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 208.10 Td (, SAC, per installation, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.90 208.10 Td ($27.54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.40 208.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.84 208.10 Td ($31.19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.34 208.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 523.00 208.10 Td (. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 196.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.12 196.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.00 196.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.83 196.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.26 196.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.26 196.10 Td (, SAC, per installation, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.48 196.10 Td ($27.86) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.98 196.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.41 196.10 Td ($30.18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.91 196.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 483.58 196.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.89 196.10 Td (The decreases ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 184.10 Td (were driven by reductions to OEM hardware subsidy rates, our transition to a new generation of chipsets as well as the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 172.10 Td (impact of the adoption of the new revenue standard, ef) Tj ET Q q 0 0 0 rg BT 294.57 172.10 Td (fective as of January 1, 2018 of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.86 172.10 Td ($0.24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.36 172.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.80 172.10 Td ($0.28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.30 172.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.68 172.10 Td (three and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 160.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.12 160.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.00 160.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.83 160.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 257.49 160.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 136.10 Td (Customer Service and Billing Expenses, Per ) Tj ET Q q 0 0 0 rg BT 257.00 136.10 Td (A) Tj ET Q q 0 0 0 rg BT 262.56 136.10 Td (verage Subscriber) Tj ET Q q 0 0 0 rg BT 334.49 136.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.49 136.10 Td (is derived from total customer service and billing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 124.10 Td (expenses, excluding connected vehicle customer service and billing expenses and share-based payment expense, divided by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 112.10 Td (number of months in the period, divided by the daily weighted average number of subscribers for the period.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.10 112.10 Td ( \(See the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 100.10 Td (accompanying glossary on pages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.91 100.10 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.91 100.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.02 100.10 Td (42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.02 100.10 Td ( for more details.\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 82.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 82.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 82.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 82.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 82.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 82.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 82.10 Td (, customer service and billing expenses, per average subscriber) Tj ET Q q 0 0 0 rg BT 534.86 82.10 Td (, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 70.10 Td ($0.89) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 70.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.44 70.10 Td ($0.94) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.94 70.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 193.60 70.10 Td (. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.21 70.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.83 70.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.70 70.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.53 70.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.97 70.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.97 70.10 Td (, customer service and billing expenses, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 58.10 Td (per average subscriber) Tj ET Q q 0 0 0 rg BT 166.05 58.10 Td (, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.10 58.10 Td ($0.88) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.60 58.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.04 58.10 Td ($0.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.54 58.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 306.20 58.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.70 58.10 Td ( ) Tj ET Q q 0 0 0 rg BT 313.52 58.10 Td (The decreases were primarily related to lower call center ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 46.10 Td (costs due to lower contact rates, agent rates, and bad debt expense.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 75 0 obj <>] /Rotate 0 /Contents 76 0 R>> endobj 76 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (36) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 742.10 Td (Adjusted EBITDA. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.43 742.10 Td (EBITDA) Tj ET Q q 0 0 0 rg BT 190.54 742.10 Td ( is defined as net income before interest expense, income tax expense and depreciation and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (amortization.) Tj ET Q q 0 0 0 rg BT 106.99 730.10 Td (Adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 181.70 730.10 Td ( excludes the impact of other income, loss on extinguishment of debt, other non-cash char) Tj ET Q q 0 0 0 rg BT 540.87 730.10 Td (ges, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (such as certain purchase price accounting adjustments, share-based payment expense, loss on disposal of assets, and legal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (settlements and reserves related to the historical use of sound recordings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.36 706.10 Td ( \(See the accompanying glossary on pages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.25 706.10 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.25 706.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.50 694.10 Td ( for a reconciliation to GAAP) Tj ET Q q 0 0 0 rg BT 177.71 694.10 Td ( and for more details.\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 676.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 676.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 676.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 676.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 676.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 676.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 676.10 Td (, adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 360.62 676.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.17 676.10 Td ($543,422) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.67 676.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.11 676.10 Td ($521,936) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.61 676.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 528.27 676.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.27 676.10 Td (an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 664.10 Td (increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.25 664.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.58 664.10 Td (4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.91 664.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.74 664.10 Td ($21,486) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.24 664.10 Td (. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.85 664.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.47 664.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.35 664.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.18 664.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.62 664.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.62 664.10 Td (, adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 467.55 664.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.10 664.10 Td ($1,075,271) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.10 664.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 652.10 Td ($1,023,739) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 652.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 174.16 652.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.16 652.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.85 652.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.18 652.10 Td (5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.51 652.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.34 652.10 Td ($51,532) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.84 652.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.16 652.10 Td (The increases were due to growth of 6% in total revenue which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 640.10 Td (was primarily a result of the increase in our subscriber base and certain of our subscription rates, additional revenues ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 628.10 Td (from the U.S. Music Royalty Fee, and an increase in other revenue from the new Sirius XM Canada service and advisory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 616.10 Td (agreements as well as lower subscriber acquisition costs. ) Tj ET Q q 0 0 0 rg BT 308.48 616.10 Td (The increases were partially of) Tj ET Q q 0 0 0 rg BT 431.57 616.10 Td (fset by higher revenue share and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 604.10 Td (royalty) Tj ET Q q 0 0 0 rg BT 104.18 604.10 Td (, programming and content, sales and marketing, engineering, design and development, and general and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 592.10 Td (administrative costs.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 568.10 Td (Fr) Tj ET Q q 0 0 0 rg BT 87.13 568.10 Td (ee Cash Flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.62 568.10 Td (includes cash provided by operations, net of additions to property and equipment, and restricted and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 556.10 Td (other investment activity) Tj ET Q q 0 0 0 rg BT 148.27 556.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.77 556.10 Td ( \(See the accompanying glossary on pages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.66 556.10 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.66 556.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.77 556.10 Td (42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.77 556.10 Td ( for a reconciliation to GAAP) Tj ET Q q 0 0 0 rg BT 496.98 556.10 Td ( and for more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 544.10 Td (details.\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 526.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 526.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 526.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 526.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.25 526.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.69 526.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.69 526.10 Td (, free cash flow was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.88 526.10 Td ($486,243) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.38 526.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.81 526.10 Td ($416,725) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.31 526.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 512.97 526.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.97 526.10 Td (an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 514.10 Td (increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.25 514.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.58 514.10 Td ($69,518) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.08 514.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.91 514.10 Td (17%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.24 514.10 Td (. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.85 514.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.47 514.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.35 514.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.18 514.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.62 514.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.62 514.10 Td (, free cash flow was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.80 514.10 Td ($812,705) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.30 514.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 502.10 Td ($665,664) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 502.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 166.66 502.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.66 502.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.35 502.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.68 502.10 Td ($147,041) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.18 502.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.01 502.10 Td (22%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.34 502.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.84 502.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.95 502.10 Td (three month) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.99 502.10 Td ( periods, the increase was driven by higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 490.10 Td (net cash provided by operating activities resulting from improved operating performance, the timing of payments to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 478.10 Td (vendors, and the timing of interest payments, partially of) Tj ET Q q 0 0 0 rg BT 303.49 478.10 Td (fset by an increase in additions to property and equipment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 466.10 Td (resulting from new satellite construction. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.73 466.10 Td (six month) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.46 466.10 Td ( periods, the increase was driven by higher net cash provided ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 454.10 Td (by operating activities resulting from improved operating performance, the timing of payments to vendors, and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 442.10 Td (payment of a legal settlement during the first quarter of 2017, partially of) Tj ET Q q 0 0 0 rg BT 369.28 442.10 Td (fset by an increase in additions to property and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 430.10 Td (equipment resulting from new satellite construction.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.34 430.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 388.10 Td (Liquidity and Capital Resour) Tj ET Q q 0 0 0 rg BT 175.68 388.10 Td (ces) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (Cash Flows for the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 128.90 370.10 Td (six months) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 171.40 370.10 Td ( ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 200.27 370.10 Td (June30, 2018) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 256.65 370.10 Td ( compar) Tj ET Q q 0 0 0 rg BT 289.33 370.10 Td (ed with the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 335.71 370.10 Td (six months) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 378.21 370.10 Td ( ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 407.09 370.10 Td (June30, 2017) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 463.47 370.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 352.10 Td (The following table presents a summary of our cash flow activity for the periods set forth below:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 315.60 279.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.50 315.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 315.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 315.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 315.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 315.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 285.60 279.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.50 285.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 285.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 285.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 285.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 285.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 255.60 279.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.50 255.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 255.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 255.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 255.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 255.60 75.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 328.6 m 404.5 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404.5 328.6 m 408.5 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 328.6 m 483.5 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 315.6 m 404.5 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 328.6 m 483.5 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 315.6 m 483.5 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 315.6 m 562.5 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 315.6 m 404.5 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 315.6 m 483.5 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 270.6 m 404.5 270.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 270.6 m 483.5 270.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 270.6 m 562.5 270.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 240.60000000000002 m 404.5 240.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 240.60000000000002 m 483.5 240.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 240.60000000000002 m 562.5 240.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 226.60000000000002 m 404.5 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 224.60000000000002 m 404.5 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 226.60000000000002 m 483.5 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 224.60000000000002 m 483.5 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 226.60000000000002 m 562.5 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 224.60000000000002 m 562.5 224.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 345.70 332.83 Td (For) Tj ET Q q 0 0 0 rg BT 358.07 332.83 Td ( the Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 358.50 319.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.50 319.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 502.90 319.83 Td (2018 vs 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 305.27 Td (Net cash provided by operating activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.00 305.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.15 305.27 Td (922,615) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.00 305.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 305.27 Td (769,941) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 305.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 305.27 Td (152,674) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 290.27 Td (Net cash used in investing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.80 290.32 Td (\(184,307) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 290.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.80 290.32 Td (\(667,248) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 290.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 290.27 Td (482,941) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 275.27 Td (Net cash used in financing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.80 275.32 Td (\(743,227) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 275.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.80 275.32 Td (\(273,462) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 275.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.80 275.32 Td (\(469,765) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 275.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 260.27 Td (Net decrease in cash, cash equivalents and restricted cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.80 260.32 Td (\(4,919) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 260.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.80 260.32 Td (\(170,769) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 260.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 260.27 Td (165,850) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 245.27 Td (Cash, cash equivalents and restricted cash at beginning of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 245.27 Td (79,374) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 245.27 Td (223,828) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.80 245.32 Td (\(144,454) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 245.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 230.27 Td (Cash, cash equivalents and restricted cash at end of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.00 230.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 230.27 Td (74,455) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.00 230.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 230.27 Td (53,059) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 230.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 230.27 Td (21,396) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 206.10 Td (Cash Flows Pr) Tj ET Q q 0 0 0 rg BT 109.64 206.10 Td (ovided by Operating ) Tj ET Q q 0 0 0 rg BT 194.16 206.10 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 188.10 Td (Cash flows provided by operating activities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.63 188.10 Td (increased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.38 188.10 Td ( by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.38 188.10 Td ($152,674) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.88 188.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.66 188.10 Td ($922,615) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.16 188.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.54 188.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.16 188.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.04 188.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.87 188.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 176.10 Td (from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.94 176.10 Td ($769,941) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.44 176.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.82 176.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.43 176.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.31 176.10 Td (June30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.14 176.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 152.10 Td (Our lar) Tj ET Q q 0 0 0 rg BT 106.42 152.10 Td (gest source of cash provided by operating activities is generated by subscription and subscription-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 140.10 Td (revenues.) Tj ET Q q 0 0 0 rg BT 92.86 140.10 Td (W) Tj ET Q q 0 0 0 rg BT 101.49 140.10 Td (e also generate cash from the sale of advertising on certain non-music channels and the sale of satellite radios, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 128.10 Td (components and accessories.Our primary uses of cash from operating activities include revenue share and royalty payments to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 116.10 Td (distributors, programming and content providers, and payments to radio manufacturers, distributors and automakers. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 104.10 Td (addition, uses of cash from operating activities include payments to vendors to service, maintain and acquire subscribers, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 92.10 Td (general corporate expenditures, and compensation and related costs.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 77 0 obj <>] /Rotate 0 /Contents 78 0 R>> endobj 78 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (37) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (Cash Flows Used in Investing ) Tj ET Q q 0 0 0 rg BT 172.31 742.10 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 724.10 Td (Cash flows used in investing activities in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.09 724.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.71 724.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.58 724.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.41 724.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.85 724.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.85 724.10 Td ( were primarily due to additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 712.10 Td (spending to construct replacement satellites, improve our terrestrial repeater network, for capitalized software, and deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 700.10 Td (compensation. ) Tj ET Q q 0 0 0 rg BT 112.86 700.10 Td (W) Tj ET Q q 0 0 0 rg BT 121.50 700.10 Td (e spent $79,962 and $35,494 to construct replacement satellites during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.59 700.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.21 700.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.09 700.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.92 700.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 688.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.94 688.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.94 688.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 139.60 688.10 Td (. In addition, cash flows used in investing activities in the first half of 2017 were primarily due to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 676.10 Td (investment in Pandora of $172,500, loans to related parties of $130,794, payments to acquire additional ownership in related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 664.10 Td (parties \(net of transaction costs\) of $129,676, and the acquisition of ) Tj ET Q q 0 0 0 rg BT 321.88 664.10 Td (Automatic Labs Inc. for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.46 664.10 Td ($107,056) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.96 664.10 Td ( \(net of cash and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 652.10 Td (restricted cash acquired\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (Cash Flows Used in Financing ) Tj ET Q q 0 0 0 rg BT 176.76 622.10 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 604.10 Td (Cash flows used in financing activities consists of the issuance and repayment of long-term debt, the purchase of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 592.10 Td (common stock under Holdings' share repurchase program and the payment of cash dividends.Proceeds from long-term debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 580.10 Td (have been used to fund our operations, construct and launch new satellites, invest in other infrastructure improvements and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 568.10 Td (purchase shares of Holdings' common stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 544.10 Td (Cash flows used in financing activities in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.19 544.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.81 544.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.68 544.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.51 544.10 Td ( were primarily due to the purchase and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 532.10 Td (retirement of shares of Holdings' common stock under Holdings' repurchase program for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.40 532.10 Td ($334,215) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.90 532.10 Td (, the payment of cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 520.10 Td (dividends on Holdings' common stock of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.79 520.10 Td ($98,684) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.29 520.10 Td ( and repayment under the Credit Facility of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.79 520.10 Td ($302,61) Tj ET Q q 0 0 0 rg BT 456.92 520.10 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.92 520.10 Td (. Cash flows used in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 508.10 Td (financing activities in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.86 508.10 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.48 508.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.35 508.10 Td (June30, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.18 508.10 Td ( were primarily due to the purchase and retirement for $783,824 of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 496.10 Td (shares of Holdings' common stock under Holdings' repurchase program, and the payment of cash dividends of $93,638, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 484.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 484.10 Td (fset by net borrowings of $610,000 under the Credit Facility) Tj ET Q q 0 0 0 rg BT 334.39 484.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (Future Liquidity and Capital Resource Requirements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 436.10 Td (Based upon our current business plans, we expect to fund operating expenses, capital expenditures, including the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 424.10 Td (construction of replacement satellites, working capital requirements, legal settlements, interest payments, taxes and scheduled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 412.10 Td (maturities of our debt with existing cash, cash flow from operations and borrowings under our Credit Facility) Tj ET Q q 0 0 0 rg BT 486.76 412.10 Td (.) Tj ET Q q 0 0 0 rg BT 493.71 412.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 412.10 Td (June30, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 400.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 400.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 400.10 Td ($1,750,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.00 400.10 Td ( was available for future borrowing under our Credit Facility) Tj ET Q q 0 0 0 rg BT 362.33 400.10 Td (.) Tj ET Q q 0 0 0 rg BT 369.65 400.10 Td (W) Tj ET Q q 0 0 0 rg BT 378.29 400.10 Td (e believe that we have suf) Tj ET Q q 0 0 0 rg BT 481.67 400.10 Td (ficient cash and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 388.10 Td (cash equivalents as well as debt capacity to cover our estimated short-term and long-term funding needs of our satellite spend, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 376.10 Td (as well as fund Holdings' stock repurchases, future dividend payments on Holdings' common stock and strategic opportunities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 352.10 Td (Our ability to meet our debt and other obligations depends on our future operating performance and on economic, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 340.10 Td (financial, competitive and other factors. ) Tj ET Q q 0 0 0 rg BT 211.70 340.10 Td (W) Tj ET Q q 0 0 0 rg BT 220.34 340.10 Td (e continually review our operations for opportunities to adjust the timing of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 328.10 Td (expenditures to ensure that suf) Tj ET Q q 0 0 0 rg BT 172.01 328.10 Td (ficient resources are maintained.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 304.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.64 304.10 Td (e regularly evaluate our business plans and strategy) Tj ET Q q 0 0 0 rg BT 291.75 304.10 Td (. ) Tj ET Q q 0 0 0 rg BT 299.07 304.10 Td (These evaluations often result in changes to our business plans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 292.10 Td (and strategy) Tj ET Q q 0 0 0 rg BT 97.94 292.10 Td (, some of which may be material and significantly change our cash requirements. ) Tj ET Q q 0 0 0 rg BT 427.10 292.10 Td (These changes in our business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 280.10 Td (plans or strategy may include: the acquisition of unique or compelling programming; the development and introduction of new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 268.10 Td (features or services; significant new or enhanced distribution arrangements; investments in infrastructure, such as satellites, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 256.10 Td (equipment or radio spectrum; and acquisitions and investments, including acquisitions and investments that are not directly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 244.10 Td (related to our satellite radio business.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (Holdings' Capital Return Pr) Tj ET Q q 0 0 0 rg BT 163.16 214.10 Td (ogram) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 196.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.44 196.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.27 196.10 Td (, Holdings' board of directors had authorized for repurchase an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.57 196.10 Td ($12,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.57 196.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 184.10 Td (Holdings common stock. ) Tj ET Q q 0 0 0 rg BT 154.72 184.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.17 184.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.00 184.10 Td (, Holdings' cumulative repurchases since December 2012 under Holdings' stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 172.10 Td (repurchase program totaled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.89 172.10 Td ($9,694,181) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.89 172.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.83 172.10 Td ($2,305,819) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.83 172.10 Td ( remained available for additional repurchases under Holdings' existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 160.10 Td (stock repurchase program authorization.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 136.10 Td (Shares of common stock may be purchased from time to time on the open market and in privately negotiated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 124.10 Td (transactions, including in accelerated stock repurchase transactions and transactions with Liberty Media and its af) Tj ET Q q 0 0 0 rg BT 504.38 124.10 Td (filiates. ) Tj ET Q q 0 0 0 rg BT 536.42 124.10 Td (W) Tj ET Q q 0 0 0 rg BT 545.05 124.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 112.10 Td (intend to fund the additional repurchases through a combination of cash on hand, cash generated by operations and future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 100.10 Td (borrowings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 76.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.72 76.10 Td (July18, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.89 76.10 Td (, Holdings board of directors declared a quarterly dividend on Holdings' common stock in the amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 64.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.83 64.10 Td ($0.01) Tj ET Q q 0 0 0 rg BT 82.96 64.10 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.96 64.10 Td ( per share of Holdings' common stock payable on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.77 64.10 Td (August31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.17 64.10 Td ( to Holdings' stockholders of record as of the close ) Tj ET Q endstream endobj 79 0 obj <>] /Rotate 0 /Contents 80 0 R>> endobj 80 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (of business on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.17 742.10 Td (August10, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.56 742.10 Td (. Holdings' board of directors expects to declare regular quarterly dividends, in an aggregate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (annual amount of $0.044 per share of Holdings' common stock.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 700.10 Td (Debt Covenants) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 682.10 Td (The indentures governing our senior notes and the agreement governing the Credit Facility include restrictive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (covenants.) Tj ET Q q 0 0 0 rg BT 96.93 670.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.38 670.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.21 670.10 Td (, we were in compliance with such covenants.For a discussion of our Debt Covenants, refer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (to Note 10 to our unaudited consolidated financial statements in this Quarterly Report.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 628.10 Td (Of) Tj ET Q q 0 0 0 rg BT 60.37 628.10 Td (f-Balance Sheet ) Tj ET Q q 0 0 0 rg BT 128.33 628.10 Td (Arrangements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 610.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.64 610.10 Td (e do not have any significant of) Tj ET Q q 0 0 0 rg BT 212.53 610.10 Td (f-balance sheet arrangements other than those disclosed in Note 13 to our unaudited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (consolidated financial statements in this Quarterly Report that are reasonably likely to have a material ef) Tj ET Q q 0 0 0 rg BT 467.72 598.10 Td (fect on our financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (condition, results of operations, liquidity) Tj ET Q q 0 0 0 rg BT 212.11 586.10 Td (, capital expenditures or capital resources.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 556.10 Td (Contractual Cash Commitments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 538.10 Td (For a discussion of our Contractual Cash Commitments, refer to Note 13 to our unaudited consolidated financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (statements in this Quarterly Report.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 496.10 Td (Related Party T) Tj ET Q q 0 0 0 rg BT 114.06 496.10 Td (ransactions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 478.10 Td (For a discussion of Related Party ) Tj ET Q q 0 0 0 rg BT 217.24 478.10 Td (T) Tj ET Q q 0 0 0 rg BT 223.00 478.10 Td (ransactions, refer to Note 9 to our unaudited consolidated financial statements in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (this Quarterly Report.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 436.10 Td (Critical ) Tj ET Q q 0 0 0 rg BT 83.24 436.10 Td (Accounting Policies and Estimates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 418.10 Td (For a discussion of our Critical ) Tj ET Q q 0 0 0 rg BT 208.54 418.10 Td (Accounting Policies and Estimates, refer to Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 516.37 418.10 Td (Analysis ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (of Financial Condition and Results of Operations in our ) Tj ET Q q 0 0 0 rg BT 279.14 406.10 Td (Annual Report for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.75 406.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.34 406.10 Td (. ) Tj ET Q q 0 0 0 rg BT 501.66 406.10 Td (There have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (been no material changes to our critical accounting policies and estimates since ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.88 394.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.47 394.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 376.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.64 376.10 Td (e adopted the new revenue standard using the modified retrospective method by recognizing the cumulative ef) Tj ET Q q 0 0 0 rg BT 527.69 376.10 Td (fect of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 364.10 Td (initially applying the new revenue standard to all non-completed contracts as of January 1, 2018 as an adjustment to opening ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 352.10 Td (Accumulated deficit in the period of adoption.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.22 352.10 Td ( For more information regarding the adoption of the new revenue standard, refer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 340.10 Td (to Note 2 to our unaudited consolidated financial statements of this Quarterly Report.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 316.10 Td (Glossary) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 77 296.53505859375 m 156.46533203125 296.53505859375 l s q 0 0 0 rg BT 77.00 298.10 Td (Adjusted EBITDA) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 156.19 298.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.69 298.10 Td (- EBITDA) Tj ET Q q 0 0 0 rg BT 200.63 298.10 Td ( is defined as net income before interest expense, income tax expense and depreciation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 286.10 Td (and amortization. ) Tj ET Q q 0 0 0 rg BT 151.79 286.10 Td (W) Tj ET Q q 0 0 0 rg BT 160.43 286.10 Td (e adjust EBITDA) Tj ET Q q 0 0 0 rg BT 229.87 286.10 Td ( to exclude the impact of other income as well as certain other char) Tj ET Q q 0 0 0 rg BT 497.63 286.10 Td (ges discussed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 274.10 Td (below) Tj ET Q q 0 0 0 rg BT 100.79 274.10 Td (. ) Tj ET Q q 0 0 0 rg BT 107.74 274.10 Td (Adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 182.45 274.10 Td ( is a Non-GAAP) Tj ET Q q 0 0 0 rg BT 248.47 274.10 Td ( financial measure that excludes \(if applicable\):\(i\) certain adjustments as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 262.10 Td (result of the purchase price accounting for the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.54 262.10 Td ( Mer) Tj ET Q q 0 0 0 rg BT 279.51 262.10 Td (ger) Tj ET Q q 0 0 0 rg BT 291.88 262.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.88 262.10 Td (\(ii\) share-based payment expense and \(iii\) other significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 250.10 Td (operating expense \(income\) that do not relate to the on-going performance of our business. ) Tj ET Q q 0 0 0 rg BT 445.04 250.10 Td (W) Tj ET Q q 0 0 0 rg BT 453.67 250.10 Td (e believe adjusted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 238.10 Td (EBITDA) Tj ET Q q 0 0 0 rg BT 113.11 238.10 Td ( is a useful measure of the underlying trend of our operating performance, which provides useful information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 226.10 Td (about our business apart from the costs associated with our capital structure and purchase price accounting. ) Tj ET Q q 0 0 0 rg BT 510.57 226.10 Td (W) Tj ET Q q 0 0 0 rg BT 519.21 226.10 Td (e believe ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 214.10 Td (investors find this Non-GAAP) Tj ET Q q 0 0 0 rg BT 198.57 214.10 Td ( financial measure useful when analyzing our past operating performance with our current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 202.10 Td (performance and comparing our operating performance to the performance of other communications, entertainment and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 190.10 Td (media companies. ) Tj ET Q q 0 0 0 rg BT 154.02 190.10 Td (W) Tj ET Q q 0 0 0 rg BT 162.65 190.10 Td (e believe investors use adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 327.34 190.10 Td ( to estimate our current enterprise value and to make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 178.10 Td (investment decisions. ) Tj ET Q q 0 0 0 rg BT 167.55 178.10 Td (As a result of lar) Tj ET Q q 0 0 0 rg BT 234.01 178.10 Td (ge capital investments in our satellite radio system, our results of operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 166.10 Td (reflect significant char) Tj ET Q q 0 0 0 rg BT 166.77 166.10 Td (ges for depreciation expense. ) Tj ET Q q 0 0 0 rg BT 288.21 166.10 Td (W) Tj ET Q q 0 0 0 rg BT 296.84 166.10 Td (e believe the exclusion of share-based payment expense is useful ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 154.10 Td (as it is not directly related to the operational conditions of our business. ) Tj ET Q q 0 0 0 rg BT 367.59 154.10 Td (W) Tj ET Q q 0 0 0 rg BT 376.23 154.10 Td (e also believe the exclusion of the legal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 142.10 Td (settlements and reserves related to the historical use of sound recordings, loss on extinguishment of debt and loss on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 130.10 Td (disposal of assets, to the extent they occur during the period, is useful as they are significant expenses not incurred as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 118.10 Td (part of our normal operations for the period.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 81 0 obj <>] /Rotate 0 /Contents 82 0 R>> endobj 82 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 742.10 Td (Adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 151.72 742.10 Td ( has certain limitations in that it does not take into account the impact to our statements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 730.10 Td (comprehensive income of certain expenses, including share-based payment expense and certain purchase price ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 718.10 Td (accounting for the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.75 718.10 Td ( Mer) Tj ET Q q 0 0 0 rg BT 168.73 718.10 Td (ger) Tj ET Q q 0 0 0 rg BT 180.95 718.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.26 718.10 Td (W) Tj ET Q q 0 0 0 rg BT 196.90 718.10 Td (e endeavor to compensate for the limitations of the Non-GAAP) Tj ET Q q 0 0 0 rg BT 450.08 718.10 Td ( measure presented by also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 706.10 Td (providing the comparable GAAP) Tj ET Q q 0 0 0 rg BT 209.10 706.10 Td ( measure with equal or greater prominence and descriptions of the reconciling items, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 694.10 Td (including quantifying such items, to derive the Non-GAAP) Tj ET Q q 0 0 0 rg BT 313.26 694.10 Td ( measure.Investors that wish to compare and evaluate our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 682.10 Td (operating results after giving ef) Tj ET Q q 0 0 0 rg BT 202.33 682.10 Td (fect for these costs, should refer to net income as disclosed in our unaudited consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 670.10 Td (statements of comprehensive income. Since adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 329.16 670.10 Td ( is a Non-GAAP) Tj ET Q q 0 0 0 rg BT 395.17 670.10 Td ( financial performance measure, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 658.10 Td (calculation of adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 206.13 658.10 Td ( may be susceptible to varying calculations; may not be comparable to other similarly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 646.10 Td (titled measures of other companies; and should not be considered in isolation, as a substitute for) Tj ET Q q 0 0 0 rg BT 460.40 646.10 Td (, or superior to measures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 634.10 Td (of financial performance prepared in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 319.94 634.10 Td (. ) Tj ET Q q 0 0 0 rg BT 327.26 634.10 Td (The reconciliation of net income to the adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 557.20 634.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 622.10 Td (is calculated as follows: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.31 622.10 Td ( ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 585.60 214.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 585.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 585.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 585.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 585.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 585.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 585.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 585.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 555.60 214.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 555.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 555.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 555.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 555.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 555.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 555.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 555.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 525.60 214.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 525.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 525.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 525.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 525.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 525.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 525.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 525.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 495.60 214.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 495.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 495.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 495.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 495.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 495.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 495.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 495.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 465.60 214.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 465.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 465.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 465.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 465.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 465.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 465.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 465.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 435.60 214.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 435.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 435.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 435.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 435.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 435.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 435.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 435.60 68.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 598.6 m 338.5 598.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 598.6 m 342.5 598.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 598.6 m 417.5 598.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 598.6 m 489.5 598.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 598.6 m 493.5 598.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 598.6 m 561.5 598.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 585.6 m 338.5 585.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 585.6 m 417.5 585.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 585.6 m 489.5 585.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 585.6 m 561.5 585.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 585.6 m 338.5 585.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 585.6 m 417.5 585.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 585.6 m 489.5 585.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 585.6 m 561.5 585.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 435.6 m 338.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 435.6 m 417.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 435.6 m 489.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 435.6 m 561.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 435.6 m 338.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 421.6 m 338.5 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 419.6 m 338.5 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 435.6 m 417.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 421.6 m 417.5 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 419.6 m 417.5 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 435.6 m 489.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 421.6 m 489.5 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 419.6 m 489.5 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 435.6 m 561.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 421.6 m 561.5 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 419.6 m 561.5 419.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 274.95 602.83 Td (For) Tj ET Q q 0 0 0 rg BT 287.32 602.83 Td ( the ) Tj ET Q q 0 0 0 rg BT 301.83 602.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 315.03 602.83 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.70 602.83 Td (For) Tj ET Q q 0 0 0 rg BT 443.07 602.83 Td ( the Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 292.50 589.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.50 589.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.00 589.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 519.00 589.83 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 576.17 Td (Net income:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.00 575.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.15 575.27 Td (292,352) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.00 575.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.15 575.27 Td (202,109) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.00 575.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.15 575.27 Td (581,793) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.00 575.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 575.27 Td (409,182) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 561.17 Td (Add back items excluded from ) Tj ET Q q 0 0 0 rg BT 177.52 561.17 Td (Adjusted EBITDA:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 546.17 Td (Purchase price accounting adjustments:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 531.17 Td (Revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.15 530.27 Td (1,813) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.15 530.27 Td (1,813) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.15 530.27 Td (3,626) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 530.27 Td (3,626) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 516.17 Td (Sound recording legal settlements and reserves) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.15 515.27 Td (69,144) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.65 515.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.15 515.27 Td (69,144) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 515.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 501.17 Td (Share-based payment expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.15 500.27 Td (36,215) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.15 500.27 Td (30,251) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.15 500.27 Td (70,448) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 500.27 Td (59,697) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 486.17 Td (Depreciation and amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.15 485.27 Td (74,623) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.15 485.27 Td (73,519) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.15 485.27 Td (146,835) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 485.27 Td (150,223) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 471.17 Td (Interest expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.15 470.27 Td (86,917) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.15 470.27 Td (82,794) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.15 470.27 Td (176,706) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 470.27 Td (164,451) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 456.17 Td (Other \(income\) expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.80 455.32 Td (\(88,212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.65 455.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.15 455.27 Td (1) Tj ET Q q 0 0 0 rg BT 391.15 455.27 Td (1,937) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.80 455.32 Td (\(124,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.65 455.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 455.27 Td (3,074) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 441.17 Td (Income tax expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.15 440.27 Td (70,570) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.15 440.27 Td (1) Tj ET Q q 0 0 0 rg BT 386.15 440.27 Td (19,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.15 440.27 Td (150,819) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 440.27 Td (233,486) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 426.17 Td (Adjusted EBITDA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.00 425.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.15 425.27 Td (543,422) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.00 425.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.15 425.27 Td (521,936) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.00 425.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.65 425.27 Td (1,075,271) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.00 425.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 425.27 Td (1,023,739) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 77 395.53505859375 m 104.7734375 395.53505859375 l s q 0 0 0 rg BT 77.00 397.10 Td (ARPU) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.77 397.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.27 397.10 Td (- is derived from total earned subscriber revenue, advertising revenue and other subscription-related revenue, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 385.10 Td (excluding revenue associated with our connected vehicle services, divided by) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.89 385.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.39 385.10 Td (the number of months in the period, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 373.10 Td (divided by the daily weighted average number of subscribers for the period. Other subscription-related revenue includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 361.10 Td (the U.S. Music Royalty Fee.) Tj ET Q q 0 0 0 rg BT 195.42 361.10 Td (The ) Tj ET Q q 0 0 0 rg BT 212.92 361.10 Td (ARPU for the three and six months ended June 30, 2018 reflects adjustments as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 349.10 Td (result of adopting the new revenue standard as of January 1, 2018. ) Tj ET Q q 0 0 0 rg BT 346.65 349.10 Td (ARPU is calculated as follows:) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 312.60 214.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 312.60 75.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 312.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 312.60 75.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 312.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 312.60 68.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 312.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 312.60 68.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 272.60 214.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 272.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 272.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 272.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 272.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 272.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 272.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 272.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 242.60 214.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 242.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 242.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 242.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 242.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 421.50 242.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 242.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 242.60 68.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 325.6 m 338.5 325.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 325.6 m 342.5 325.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 325.6 m 417.5 325.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 325.6 m 489.5 325.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 325.6 m 493.5 325.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 325.6 m 561.5 325.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 312.6 m 338.5 312.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 312.6 m 417.5 312.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 312.6 m 489.5 312.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 312.6 m 561.5 312.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 312.6 m 338.5 312.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 312.6 m 417.5 312.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 312.6 m 489.5 312.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 312.6 m 561.5 312.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 257.6 m 338.5 257.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 243.60000000000002 m 338.5 243.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 241.60000000000002 m 338.5 241.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 257.6 m 417.5 257.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 243.60000000000002 m 417.5 243.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 241.60000000000002 m 417.5 241.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 257.6 m 489.5 257.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 243.60000000000002 m 489.5 243.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 241.60000000000002 m 489.5 241.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 257.6 m 561.5 257.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 243.60000000000002 m 561.5 243.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 241.60000000000002 m 561.5 241.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 241.60000000000002 m 338.5 241.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 243.60000000000002 m 338.5 243.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 228.60000000000002 m 338.5 228.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 226.60000000000002 m 338.5 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 241.60000000000002 m 417.5 241.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 243.60000000000002 m 417.5 243.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 228.60000000000002 m 417.5 228.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 226.60000000000002 m 417.5 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 241.60000000000002 m 489.5 241.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 243.60000000000002 m 489.5 243.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 228.60000000000002 m 489.5 228.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 226.60000000000002 m 489.5 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 241.60000000000002 m 561.5 241.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 243.60000000000002 m 561.5 243.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 228.60000000000002 m 561.5 228.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 226.60000000000002 m 561.5 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 226.60000000000002 m 338.5 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 228.60000000000002 m 338.5 228.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 213.60000000000002 m 338.5 213.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 211.60000000000002 m 338.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 226.60000000000002 m 417.5 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 228.60000000000002 m 417.5 228.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 213.60000000000002 m 417.5 213.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 211.60000000000002 m 417.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 226.60000000000002 m 489.5 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 228.60000000000002 m 489.5 228.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 213.60000000000002 m 489.5 213.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 211.60000000000002 m 489.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 226.60000000000002 m 561.5 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 228.60000000000002 m 561.5 228.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 213.60000000000002 m 561.5 213.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 211.60000000000002 m 561.5 211.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 274.95 329.83 Td (For) Tj ET Q q 0 0 0 rg BT 287.32 329.83 Td ( the ) Tj ET Q q 0 0 0 rg BT 301.83 329.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 315.03 329.83 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.70 329.83 Td (For) Tj ET Q q 0 0 0 rg BT 443.07 329.83 Td ( the Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 292.50 316.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.50 316.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.00 316.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 519.00 316.83 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 302.27 Td (Subscriber revenue, excluding connected vehicle) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 292.27 Td (services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.00 292.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.65 292.27 Td (1,1) Tj ET Q q 0 0 0 rg BT 307.15 292.27 Td (12,652) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.00 292.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 292.27 Td (1,090,356) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.00 292.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.65 292.27 Td (2,204,901) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.00 292.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 292.27 Td (2,148,410) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 277.27 Td (Add: advertising revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.15 277.27 Td (47,242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.15 277.27 Td (40,178) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.15 277.27 Td (89,290) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 277.27 Td (76,194) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 262.27 Td (Add: other subscription-related revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.15 262.27 Td (165,058) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.15 262.27 Td (128,179) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.15 262.27 Td (305,874) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 262.27 Td (252,647) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 247.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.00 247.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.65 247.27 Td (1,324,952) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.00 247.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 247.27 Td (1,258,713) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.00 247.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.65 247.27 Td (2,600,065) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.00 247.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 247.27 Td (2,477,251) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 232.27 Td (Daily weighted average number of subscribers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.15 232.27 Td (33,197) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.15 232.27 Td (31,746) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.15 232.27 Td (33,013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 232.27 Td (31,559) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 217.27 Td (ARPU) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.00 217.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.15 217.27 Td (13.30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.00 217.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.15 217.27 Td (13.22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.00 217.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.15 217.27 Td (13.13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.00 217.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 217.27 Td (13.08) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 83 0 obj <>] /Rotate 0 /Contents 84 0 R>> endobj 84 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (40) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 742.10 Td (The table below illustrates the impact that the adoption of the new revenue standard had on ) Tj ET Q q 0 0 0 rg BT 443.55 742.10 Td (ARPU for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.60 742.10 Td (three and six ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.45 730.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.33 730.10 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.16 730.10 Td (.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 677.60 148.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 197.50 677.60 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.50 677.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.50 677.60 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 677.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 677.60 68.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 677.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 677.60 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 677.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 677.60 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 677.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 677.60 68.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 637.60 148.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 197.50 637.60 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.50 637.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.50 637.60 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 637.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 637.60 68.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 637.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 637.60 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 637.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 637.60 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 637.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 637.60 68.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 597.60 148.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 197.50 597.60 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.50 597.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.50 597.60 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 597.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 597.60 68.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 597.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 597.60 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 597.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 597.60 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 597.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 597.60 68.00 -25.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197.5 706.6 m 249.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249.5 706.6 m 253.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 706.6 m 305.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 706.6 m 309.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 706.6 m 377.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 706.6 m 433.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 706.6 m 437.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 706.6 m 489.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 706.6 m 493.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 706.6 m 561.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197.5 677.6 m 249.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 677.6 m 305.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 677.6 m 377.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 677.6 m 433.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 677.6 m 489.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 677.6 m 561.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197.5 677.6 m 249.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 677.6 m 305.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 677.6 m 377.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 677.6 m 433.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 677.6 m 489.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 677.6 m 561.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197.5 612.6 m 249.5 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197.5 598.6 m 249.5 598.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197.5 596.6 m 249.5 596.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 612.6 m 305.5 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 598.6 m 305.5 598.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 596.6 m 305.5 596.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 612.6 m 377.5 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 598.6 m 377.5 598.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 596.6 m 377.5 596.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 612.6 m 433.5 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 598.6 m 433.5 598.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 596.6 m 433.5 596.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 612.6 m 489.5 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 598.6 m 489.5 598.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 596.6 m 489.5 596.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 612.6 m 561.5 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 598.6 m 561.5 598.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 596.6 m 561.5 596.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197.5 573.6 m 249.5 573.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197.5 571.6 m 249.5 571.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 596.6 m 305.5 596.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 598.6 m 305.5 598.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 573.6 m 305.5 573.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 571.6 m 305.5 571.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 573.6 m 377.5 573.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 571.6 m 377.5 571.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 573.6 m 433.5 573.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 571.6 m 433.5 571.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 573.6 m 489.5 573.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 571.6 m 489.5 571.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 573.6 m 561.5 573.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 571.6 m 561.5 571.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197.5 571.6 m 249.5 571.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197.5 573.6 m 249.5 573.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197.5 558.6 m 249.5 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197.5 556.6 m 249.5 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 558.6 m 305.5 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 556.6 m 305.5 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 558.6 m 377.5 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 556.6 m 377.5 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 571.6 m 433.5 571.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 573.6 m 433.5 573.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 558.6 m 433.5 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 556.6 m 433.5 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 571.6 m 489.5 571.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 573.6 m 489.5 573.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 558.6 m 489.5 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 556.6 m 489.5 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 571.6 m 561.5 571.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 573.6 m 561.5 573.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 558.6 m 561.5 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 556.6 m 561.5 556.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 212.95 710.83 Td (For) Tj ET Q q 0 0 0 rg BT 225.32 710.83 Td ( the ) Tj ET Q q 0 0 0 rg BT 239.83 710.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 253.03 710.83 Td (ee Months Ended June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.70 710.83 Td (For) Tj ET Q q 0 0 0 rg BT 414.07 710.83 Td ( the Six Months Ended June 30, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 201.55 681.83 Td (As Reported) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 262.40 697.83 Td (Impact of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 262.95 689.83 Td (Adopting) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 256.65 681.83 Td (ASU 2014-09) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 312.80 697.83 Td (Balances ) Tj ET Q q 0 0 0 rg BT 344.95 697.83 Td (W) Tj ET Q q 0 0 0 rg BT 352.81 697.83 Td (ithout) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 313.85 689.83 Td (Adoption of ) Tj ET Q q 0 0 0 rg BT 356.31 689.83 Td (ASU) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 329.65 681.83 Td (2014-09) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 385.55 681.83 Td (As Reported) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.40 697.83 Td (Impact of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.95 689.83 Td (Adopting) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.65 681.83 Td (ASU 2014-09) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 496.80 697.83 Td (Balances ) Tj ET Q q 0 0 0 rg BT 528.88 697.83 Td (W) Tj ET Q q 0 0 0 rg BT 536.73 697.83 Td (ithout) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.85 689.83 Td (Adoption of ) Tj ET Q q 0 0 0 rg BT 540.08 689.83 Td (ASU) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 513.65 681.83 Td (2014-09) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 667.27 Td (Subscriber revenue, excluding) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 657.27 Td (connected vehicle services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.00 657.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.60 657.27 Td (1,1) Tj ET Q q 0 0 0 rg BT 218.10 657.27 Td (12,652) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.00 657.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.15 657.27 Td (23,787) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.00 657.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.65 657.27 Td (1,136,439) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.00 657.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.60 657.27 Td (2,204,901) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 657.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.15 657.27 Td (48,179) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.00 657.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 657.27 Td (2,253,080) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 642.27 Td (Add: advertising revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.15 642.27 Td (47,242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.65 642.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.15 642.27 Td (47,242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 642.27 Td (89,290) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 642.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 642.27 Td (89,290) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 627.27 Td (Add: other subscription-related) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 617.27 Td (revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.10 617.27 Td (165,058) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.65 617.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.15 617.27 Td (165,058) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.10 617.27 Td (305,874) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 617.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 617.27 Td (305,874) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 602.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.00 602.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.60 602.27 Td (1,324,952) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.00 602.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.15 602.27 Td (23,787) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.00 602.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.65 602.27 Td (1,348,739) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.00 602.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.60 602.27 Td (2,600,065) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 602.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.15 602.27 Td (48,179) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.00 602.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 602.27 Td (2,648,244) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 587.27 Td (Daily weighted average number of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 577.27 Td (subscribers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.15 577.27 Td (33,197) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.15 577.27 Td (33,197) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.15 577.27 Td (33,197) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 577.27 Td (33,013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.15 577.27 Td (33,013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 577.27 Td (33,013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 562.27 Td (ARPU) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.00 562.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.15 562.27 Td (13.30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.00 562.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.15 562.27 Td (0.24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.00 562.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.15 562.27 Td (13.54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.00 562.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 562.27 Td (13.13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 562.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 562.27 Td (0.24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.00 562.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 562.27 Td (13.37) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 77 520.53505859375 m 213.748046875 520.53505859375 l s q 0 0 0 rg BT 77.00 522.10 Td (A) Tj ET Q q 0 0 0 rg BT 83.48 522.10 Td (verage self-pay monthly churn) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 213.75 522.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.25 522.10 Td (- is defined as the monthly average of self-pay deactivations for the period divided by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 510.10 Td (the average number of self-pay subscribers for the period.) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 77 484.53505859375 m 341.51904296875 484.53505859375 l s q 0 0 0 rg BT 77.00 486.10 Td (Customer) Tj ET Q q 0 0 0 rg BT 119.03 486.10 Td ( service and billing expenses, per) Tj ET Q q 0 0 0 rg BT 258.29 486.10 Td ( average subscriber) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.43 486.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.93 486.10 Td (- is derived from total customer service and billing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 474.10 Td (expenses, excluding connected vehicle customer service and billing expenses and share-based payment expense, divided ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 462.10 Td (by the number of months in the period, divided by the daily weighted average number of subscribers for the period. ) Tj ET Q q 0 0 0 rg BT 543.64 462.10 Td (W) Tj ET Q q 0 0 0 rg BT 552.28 462.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 450.10 Td (believe the exclusion of share-based payment expense in our calculation of customer service and billing expenses, per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 438.10 Td (average subscriber) Tj ET Q q 0 0 0 rg BT 151.28 438.10 Td (, is useful as share-based payment expense is not directly related to the operational conditions that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 426.10 Td (give rise to variations in the components of our customer service and billing expenses. Customer service and billing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 414.10 Td (expenses, per average subscriber) Tj ET Q q 0 0 0 rg BT 207.65 414.10 Td (, is calculated as follows:) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 377.60 214.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 377.60 72.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 377.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 377.60 72.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 377.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 377.60 71.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 377.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 377.60 71.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 337.60 214.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 337.60 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 337.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 337.60 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 337.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 337.60 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 337.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 337.60 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 307.60 214.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 307.60 72.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 307.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 307.60 72.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 307.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 307.60 71.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 307.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 307.60 71.00 -25.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 390.6 m 335.5 390.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 390.6 m 339.5 390.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 390.6 m 411.5 390.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 390.6 m 486.5 390.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 390.6 m 490.5 390.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 390.6 m 561.5 390.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 377.6 m 335.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 377.6 m 411.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 377.6 m 486.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 377.6 m 561.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 377.6 m 335.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 377.6 m 411.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 377.6 m 486.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 377.6 m 561.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 337.6 m 335.5 337.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 323.6 m 335.5 323.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 321.6 m 335.5 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 337.6 m 411.5 337.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 323.6 m 411.5 323.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 321.6 m 411.5 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 337.6 m 486.5 337.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 323.6 m 486.5 323.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 321.6 m 486.5 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 337.6 m 561.5 337.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 323.6 m 561.5 323.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 321.6 m 561.5 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 321.6 m 335.5 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 323.6 m 335.5 323.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 308.6 m 335.5 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 306.6 m 335.5 306.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 308.6 m 411.5 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 306.6 m 411.5 306.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 308.6 m 486.5 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 306.6 m 486.5 306.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 308.6 m 561.5 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 306.6 m 561.5 306.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 283.6 m 335.5 283.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 281.6 m 335.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 283.6 m 411.5 283.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 281.6 m 411.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 283.6 m 486.5 283.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 281.6 m 486.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 283.6 m 561.5 283.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 281.6 m 561.5 281.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 271.95 394.83 Td (For) Tj ET Q q 0 0 0 rg BT 284.32 394.83 Td ( the ) Tj ET Q q 0 0 0 rg BT 298.83 394.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 312.03 394.83 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.70 394.83 Td (For) Tj ET Q q 0 0 0 rg BT 440.07 394.83 Td ( the Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 291.00 381.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.00 381.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.50 381.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.50 381.83 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 367.27 Td (Customer service and billing expenses, excluding) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 357.27 Td (connected vehicle services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.00 357.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 357.27 Td (89,335) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.00 357.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.15 357.27 Td (90,388) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.00 357.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 357.27 Td (177,068) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 357.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 357.27 Td (182,508) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 342.27 Td (Less: share-based payment expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.80 342.32 Td (\(1,077) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.65 342.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.80 342.32 Td (\(1,029) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.65 342.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.80 342.32 Td (\(2,141) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 342.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 342.32 Td (\(2,040) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 342.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.00 327.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 327.27 Td (88,258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.00 327.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.15 327.27 Td (89,359) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.00 327.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 327.27 Td (174,927) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 327.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 327.27 Td (180,468) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 312.27 Td (Daily weighted average number of subscribers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 312.27 Td (33,197) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.15 312.27 Td (31,746) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 312.27 Td (33,013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 312.27 Td (31,559) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 297.27 Td (Customer service and billing expenses, per average) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 287.27 Td (subscriber) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.00 287.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.15 287.27 Td (0.89) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.00 287.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.15 287.27 Td (0.94) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.00 287.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 287.27 Td (0.88) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 287.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.15 287.27 Td (0.95) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 85 0 obj <>] /Rotate 0 /Contents 86 0 R>> endobj 86 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (41) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 77 740.68505859375 m 138.46484375 740.68505859375 l s q 0 0 0 rg BT 77.00 742.25 Td (Fr) Tj ET Q q 0 0 0 rg BT 87.37 742.25 Td (ee cash flow) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 138.46 742.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.96 742.25 Td (- ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.79 742.25 Td (is derived from cash flow provided by operating activities, net of additions to property and equipment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 730.25 Td (and restricted and other investment activity) Tj ET Q q 0 0 0 rg BT 249.35 730.25 Td (. Free cash flow is a metric that our management and board of directors use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 718.25 Td (to evaluate the cash generated by our operations, net of capital expenditures and other investment activity) Tj ET Q q 0 0 0 rg BT 498.42 718.25 Td (. In a capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 706.25 Td (intensive business, with significant investments in satellites, we look at our operating cash flow) Tj ET Q q 0 0 0 rg BT 458.23 706.25 Td (, net of these investing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 694.25 Td (cash outflows, to determine cash available for future subscriber acquisition and capital expenditures, to repurchase or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 682.25 Td (retire debt, to acquire other companies and to evaluate our ability to return capital to stockholders. ) Tj ET Q q 0 0 0 rg BT 474.18 682.25 Td (W) Tj ET Q q 0 0 0 rg BT 482.82 682.25 Td (e exclude from free ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 670.25 Td (cash flow certain items that do not relate to the on-going performance of our business, such as cash outflows for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 658.25 Td (acquisitions, strategic investments and net loan activity with related parties. ) Tj ET Q q 0 0 0 rg BT 384.24 658.25 Td (W) Tj ET Q q 0 0 0 rg BT 392.87 658.25 Td (e believe free cash flow is an indicator of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 646.25 Td (the long-term financial stability of our business.Free cash flow) Tj ET Q q 0 0 0 rg BT 332.12 646.25 Td (, which is reconciled to Net cash provided by operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 634.25 Td (activities, is a Non-GAAP) Tj ET Q q 0 0 0 rg BT 186.05 634.25 Td ( financial measure.) Tj ET Q q 0 0 0 rg BT 266.67 634.25 Td (This measure can be calculated by deducting amounts under the captions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 622.25 Td (Additions to property and equipment and deducting or adding Restricted and other investment activity from Net cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 610.25 Td (provided by operating activities from the unaudited consolidated statements of cash flows. Free cash flow should be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 598.25 Td (used in conjunction with other GAAP) Tj ET Q q 0 0 0 rg BT 228.00 598.25 Td ( financial performance measures and may not be comparable to free cash flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 586.25 Td (measures presented by other companies.Free cash flow should be viewed as a supplemental measure rather than an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 574.25 Td (alternative measure of cash flows from operating activities, as determined in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 479.08 574.25 Td (.Free cash flow is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 562.25 Td (limited and does not represent remaining cash flows available for discretionary expenditures due to the fact that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 550.25 Td (measure does not deduct the payments required for debt maturities. ) Tj ET Q q 0 0 0 rg BT 350.62 550.25 Td (W) Tj ET Q q 0 0 0 rg BT 359.26 550.25 Td (e believe free cash flow provides useful ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 538.25 Td (supplemental information to investors regarding our current cash flow) Tj ET Q q 0 0 0 rg BT 356.83 538.25 Td (, along with other GAAP) Tj ET Q q 0 0 0 rg BT 456.73 538.25 Td ( measures \(such as cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 526.25 Td (flows from operating and investing activities\), to determine our financial condition, and to compare our operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 514.25 Td (performance to other communications, entertainment and media companies. Free cash flow is calculated as follows:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.23 514.25 Td ( ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 477.75 214.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 477.75 72.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 477.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 477.75 72.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 477.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 477.75 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 477.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 477.75 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 448.75 214.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 448.75 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 448.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 448.75 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 448.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 448.75 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 448.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 448.75 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 418.75 214.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 418.75 72.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 418.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 418.75 72.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 418.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 418.75 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 418.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 418.75 71.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 389.75 214.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 389.75 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 389.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 389.75 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 389.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 389.75 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 389.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 389.75 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 359.75 214.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 359.75 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 359.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 359.75 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 359.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 359.75 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 359.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 359.75 71.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 490.75 m 335.5 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 490.75 m 339.5 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 490.75 m 411.5 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 490.75 m 486.5 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 490.75 m 490.5 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 490.75 m 561.5 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 477.75 m 335.5 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 477.75 m 411.5 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 477.75 m 486.5 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 477.75 m 561.5 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 477.75 m 335.5 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 477.75 m 411.5 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 477.75 m 486.5 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 477.75 m 561.5 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 344.75 m 335.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 330.75 m 335.5 330.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 328.75 m 335.5 328.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 344.75 m 411.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 330.75 m 411.5 330.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 328.75 m 411.5 328.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 344.75 m 486.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 330.75 m 486.5 330.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 328.75 m 486.5 328.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 344.75 m 561.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 330.75 m 561.5 330.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 328.75 m 561.5 328.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 271.95 494.98 Td (For) Tj ET Q q 0 0 0 rg BT 284.32 494.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 298.83 494.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 312.03 494.98 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.70 494.98 Td (For) Tj ET Q q 0 0 0 rg BT 440.07 494.98 Td ( the Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 291.00 481.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.00 481.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.50 481.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.50 481.98 Td (2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 468.48 Td (Cash Flow information) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 454.32 Td (Net cash provided by operating activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.00 453.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.15 453.42 Td (531,226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.00 453.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.15 453.42 Td (476,225) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.00 453.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 453.42 Td (922,615) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 453.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 453.42 Td (769,941) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 439.32 Td (Net cash used in investing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.00 438.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.80 438.47 Td (\(99,313) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.65 438.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.00 438.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.80 438.47 Td (\(606,862) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.65 438.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.00 438.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.80 438.47 Td (\(184,307) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 438.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 438.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 438.47 Td (\(667,248) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 438.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 424.32 Td (Net cash used in financing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.00 423.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.80 423.47 Td (\(446,255) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.65 423.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.00 423.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.80 423.47 Td (\(56,681) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.65 423.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.00 423.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.80 423.47 Td (\(743,227) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 423.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 423.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 423.47 Td (\(273,462) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 423.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 409.48 Td (Fr) Tj ET Q q 0 0 0 rg BT 62.37 409.48 Td (ee Cash Flow) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 395.32 Td (Net cash provided by operating activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.00 394.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.15 394.42 Td (531,226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.00 394.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.15 394.42 Td (476,225) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.00 394.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 394.42 Td (922,615) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 394.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 394.42 Td (769,941) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 380.32 Td (Equity-related transactions for Holdings) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 224.79 384.85 Td ( \(a\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 379.42 Td (48,192) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.15 379.42 Td (6,986) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 379.42 Td (71,501) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 379.42 Td (22,595) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 365.32 Td (Additions to property and equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.80 364.47 Td (\(92,868) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.65 364.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.80 364.47 Td (\(66,152) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.65 364.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.80 364.47 Td (\(174,273) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 364.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 364.47 Td (\(1) Tj ET Q q 0 0 0 rg BT 530.13 364.47 Td (19,517) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 364.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 350.32 Td (Purchases of restricted and other investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.30 349.47 Td (\(307) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.65 349.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.30 349.47 Td (\(334) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.65 349.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.80 349.47 Td (\(7,138) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 349.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 349.47 Td (\(7,355) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 349.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 335.32 Td (Free cash flow) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.00 334.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.15 334.42 Td (486,243) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.00 334.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.15 334.42 Td (416,725) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.00 334.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 334.42 Td (812,705) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 334.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 334.42 Td (665,664) Tj ET Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 318.25 Td (\(a\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 318.25 Td (Subsequent to our corporate reor) Tj ET Q q 0 0 0 rg BT 198.89 318.25 Td (ganization in November 2013, certain equity-related transactions are reported as related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 306.25 Td (party transactions within our consolidated statements of cash flows. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.88 306.25 Td (six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.50 306.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.38 306.25 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.21 306.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.64 306.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.64 306.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 294.25 Td (this included payments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.54 294.25 Td ($71,501) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.04 294.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.48 294.25 Td ($22,595) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.98 294.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 310.64 294.25 Td (, for taxes paid in lieu of shares issued for stock-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 282.25 Td (compensation. ) Tj ET Q q 0 0 0 rg BT 130.86 282.25 Td (These equity-related transactions are classified as Cash flows used in financing activities within Holdings' ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 270.25 Td (consolidated statements of cash flows, and therefore, are adjusted to reflect free cash flow at Sirius XM.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 77 244.68505859375 m 240.1103515625 244.68505859375 l s q 0 0 0 rg BT 77.00 246.25 Td (New vehicle consumer) Tj ET Q q 0 0 0 rg BT 171.79 246.25 Td ( conversion rate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.11 246.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.61 246.25 Td (- is defined as the percentage of owners and lessees of new vehicles that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 234.25 Td (receive our satellite radio service and convert to become self-paying subscribers after the initial promotion period. ) Tj ET Q q 0 0 0 rg BT 537.95 234.25 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 222.25 Td (the time satellite radio enabled vehicles are sold or leased, the owners or lessees generally receive trial subscriptions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 210.25 Td (ranging from three to twelve months. ) Tj ET Q q 0 0 0 rg BT 230.67 210.25 Td (W) Tj ET Q q 0 0 0 rg BT 239.31 210.25 Td (e measure conversion rate three months after the period in which the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 198.25 Td (promotional period ends. ) Tj ET Q q 0 0 0 rg BT 182.08 198.25 Td (The metric excludes rental and fleet vehicles.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 87 0 obj <>] /Rotate 0 /Contents 88 0 R>> endobj 88 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (42) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 77 740.68505859375 m 261.375 740.68505859375 l s q 0 0 0 rg BT 77.00 742.25 Td (Subscriber) Tj ET Q q 0 0 0 rg BT 123.49 742.25 Td ( acquisition cost, per) Tj ET Q q 0 0 0 rg BT 211.09 742.25 Td ( installation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 261.38 742.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.88 742.25 Td (- or SAC, per installation, is derived from subscriber acquisition costs and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 730.25 Td (mar) Tj ET Q q 0 0 0 rg BT 92.37 730.25 Td (gins from the sale of radios and accessories \(excluding connected vehicle services\), divided by the number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 718.25 Td (satellite radio installations in new vehicles and shipments of aftermarket radios for the period.) Tj ET Q q 0 0 0 rg BT 457.26 718.25 Td (The SAC, per installation, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 706.25 Td (for the three and six months ended June30, 2018 reflects adjustments as a result of adopting the new revenue standard as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 694.25 Td (of January 1, 2018. SAC, per installation, is calculated as follows:) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 657.75 214.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 657.75 72.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 657.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 657.75 72.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 657.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 657.75 71.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 657.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 657.75 71.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 607.75 214.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 607.75 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 607.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 607.75 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 607.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 607.75 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 607.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 607.75 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 577.75 214.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 577.75 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 577.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 577.75 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 577.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 577.75 71.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 577.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 577.75 71.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 670.75 m 335.5 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 670.75 m 339.5 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 670.75 m 411.5 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 670.75 m 486.5 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 670.75 m 490.5 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 670.75 m 561.5 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 657.75 m 335.5 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 657.75 m 411.5 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 657.75 m 486.5 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 657.75 m 561.5 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 657.75 m 335.5 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 657.75 m 411.5 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 657.75 m 486.5 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 657.75 m 561.5 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 607.75 m 335.5 607.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 593.75 m 335.5 593.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 591.75 m 335.5 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 607.75 m 411.5 607.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 593.75 m 411.5 593.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 591.75 m 411.5 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 607.75 m 486.5 607.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 593.75 m 486.5 593.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 591.75 m 486.5 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 607.75 m 561.5 607.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 593.75 m 561.5 593.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 591.75 m 561.5 591.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 578.75 m 335.5 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 576.75 m 335.5 576.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 578.75 m 411.5 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 576.75 m 411.5 576.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 578.75 m 486.5 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 576.75 m 486.5 576.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 578.75 m 561.5 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 576.75 m 561.5 576.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 563.75 m 335.5 563.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 561.75 m 335.5 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 563.75 m 411.5 563.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 561.75 m 411.5 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 563.75 m 486.5 563.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 561.75 m 486.5 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 563.75 m 561.5 563.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 561.75 m 561.5 561.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 271.95 674.98 Td (For) Tj ET Q q 0 0 0 rg BT 284.32 674.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 298.83 674.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 312.03 674.98 Td (ee Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.70 674.98 Td (For) Tj ET Q q 0 0 0 rg BT 440.07 674.98 Td ( the Six Months Ended June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 291.00 661.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.00 661.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.50 661.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.50 661.98 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 648.32 Td (Subscriber acquisition costs, excluding connected) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 638.32 Td (vehicle services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.00 637.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.15 637.42 Td (1) Tj ET Q q 0 0 0 rg BT 304.15 637.42 Td (19,778) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.00 637.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.15 637.42 Td (125,154) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.00 637.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 637.42 Td (242,471) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 637.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 637.42 Td (252,642) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 622.42 Td (Less: mar) Tj ET Q q 0 0 0 rg BT 90.97 622.42 Td (gin from sales of radios and accessories,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 612.42 Td (excluding connected vehicle services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.80 612.47 Td (\(28,542) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.65 612.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.80 612.47 Td (\(20,285) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.65 612.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.80 612.47 Td (\(56,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 612.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 612.47 Td (\(43,031) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 612.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.00 597.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 597.42 Td (91,236) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.00 597.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.15 597.42 Td (104,869) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.00 597.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 597.42 Td (186,471) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 597.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 597.42 Td (209,61) Tj ET Q q 0 0 0 rg BT 552.65 597.42 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 583.32 Td (Installations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.15 582.42 Td (3,313) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.15 582.42 Td (3,362) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 582.42 Td (6,693) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 582.42 Td (6,946) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 568.32 Td (SAC, per installation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.00 567.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.15 567.42 Td (27.54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.00 567.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.15 567.42 Td (31.19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.00 567.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 567.42 Td (27.86) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 567.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 567.42 Td (30.18) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 539.25 Td (The table below illustrates the impact that the adoption of the new revenue standard has had on SAC, per installation, for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 527.25 Td (the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.22 527.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.72 527.25 Td (three and six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.76 527.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.64 527.25 Td (June30, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.47 527.25 Td (.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 474.75 150.00 -35.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 199.50 474.75 51.00 -35.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.50 474.75 4.00 -35.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 474.75 53.00 -35.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.50 474.75 4.00 -35.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 474.75 67.00 -35.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.50 474.75 4.00 -35.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 474.75 51.00 -35.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 474.75 4.00 -35.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 474.75 53.00 -35.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 474.75 4.00 -35.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 474.75 67.00 -35.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 404.75 150.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 199.50 404.75 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.50 404.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 404.75 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.50 404.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 404.75 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.50 404.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 404.75 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 404.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 404.75 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 404.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 404.75 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 374.75 150.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 199.50 374.75 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.50 374.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 374.75 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.50 374.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.50 374.75 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.50 374.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 374.75 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 374.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 374.75 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 374.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 374.75 67.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 199.5 503.75 m 250.5 503.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 503.75 m 254.5 503.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 503.75 m 307.5 503.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307.5 503.75 m 311.5 503.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 503.75 m 378.5 503.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 503.75 m 433.5 503.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 503.75 m 437.5 503.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 503.75 m 490.5 503.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 503.75 m 494.5 503.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 503.75 m 561.5 503.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 199.5 474.75 m 250.5 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 474.75 m 307.5 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 474.75 m 378.5 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 474.75 m 433.5 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 474.75 m 490.5 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 474.75 m 561.5 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 199.5 474.75 m 250.5 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 474.75 m 307.5 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311.5 474.75 m 378.5 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 474.75 m 433.5 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 474.75 m 490.5 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 474.75 m 561.5 474.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 199.5 404.75 m 250.5 404.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 199.5 390.75 m 250.5 390.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 199.5 388.75 m 250.5 388.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 404.75 m 307.5 404.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 390.75 m 307.5 390.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 388.75 m 307.5 388.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 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