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f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 515.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 515.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 515.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 485.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 485.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 485.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 485.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 455.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 455.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 455.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 455.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 425.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 425.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 425.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 425.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 395.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 395.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 395.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 395.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 365.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 365.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 365.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 365.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 335.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 335.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 335.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 335.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 305.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 305.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 305.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 305.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 275.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 275.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 275.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 275.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 245.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 245.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 245.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 245.75 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 409 680.75 m 484 680.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484 680.75 m 488 680.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 680.75 m 563 680.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 680.75 m 484 680.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 665.75 m 484 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 680.75 m 563 680.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 665.75 m 563 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 590.75 m 484 590.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 590.75 m 563 590.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 395.75 m 484 395.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 395.75 m 563 395.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 380.75 m 484 380.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 380.75 m 563 380.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 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245.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 231.75 m 563 231.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 229.75 m 563 229.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 417.20 684.98 Td (For) Tj ET Q q 0 0 0 rg BT 429.57 684.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 444.08 684.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 457.28 684.98 Td (ee Months Ended Mar) Tj ET Q q 0 0 0 rg BT 533.80 684.98 Td (ch 31,) 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 438.00 669.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.00 669.98 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 411.50 640.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 640.42 Td (1,1) Tj ET Q q 0 0 0 rg BT 452.65 640.42 Td (17,084) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 640.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 640.42 Td (1,078,257) 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 452.65 625.42 Td (42,048) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 625.42 Td (36,016) 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 452.65 610.42 Td (35,089) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 610.42 Td (29,658) 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 447.65 595.42 Td (180,881) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 595.42 Td (150,135) 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 440.15 580.42 Td (1,375,102) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 580.42 Td (1,294,066) Tj ET Q BT /F1 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531.65 490.42 Td (20,576) 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 457.65 475.42 Td (7,097) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 475.42 Td (6,912) 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 447.65 460.42 Td (122,693) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 460.42 Td (127,488) 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 447.65 445.42 Td (106,71) Tj ET Q q 0 0 0 rg BT 475.15 445.42 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 445.42 Td (96,909) 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 452.65 430.42 Td (30,637) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 430.42 Td (23,817) 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 452.65 415.42 Td (84,606) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 415.42 Td (78,201) 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 452.65 400.42 Td (72,212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 400.42 Td (76,704) 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 447.65 385.42 Td (951,51) Tj ET Q q 0 0 0 rg BT 475.15 385.42 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 385.42 Td (900,226) 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 447.65 370.42 Td (423,591) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 370.42 Td (393,840) 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 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taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 295.42 Td (369,690) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 295.42 Td (321,046) 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 449.30 280.47 Td (\(80,249) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 280.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 280.47 Td (\(1) Tj ET Q q 0 0 0 rg BT 531.63 280.47 Td (13,973) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 280.42 Td (\)) 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 sole stockholder) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 265.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 265.42 Td (289,441) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 265.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 265.42 Td (207,073) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 250.42 Td (Foreign currency translation adjustment, net of tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.30 250.47 Td (\(9,584) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 250.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 250.47 Td (\(17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 250.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 235.42 Td (T) Tj ET Q q 0 0 0 rg BT 57.91 235.42 Td (otal comprehensive income attributable to Sirius XM Radio Inc.'s sole stockholder) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 235.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 235.42 Td (279,857) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 235.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 235.42 Td (207,056) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.20 207.25 Td (See accompanying notes to the unaudited consolidated financial statements.) 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0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 128.75 m 562 128.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 126.75 m 562 126.75 l s BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 697.00 Td (\(in thousands, except per shar) Tj ET Q q 0 0 0 rg BT 147.86 697.00 Td (e data\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 418.50 696.98 Td (Mar) Tj ET Q q 0 0 0 rg BT 433.53 696.98 Td (ch 31, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.75 696.98 Td (December) Tj ET Q q 0 0 0 rg BT 526.25 696.98 Td ( 31, 2017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 209.35 683.48 Td (ASSETS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.95 682.43 Td (\(unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 668.32 Td (Current assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 653.32 Td (Cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.50 652.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 652.42 Td (78,539) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 652.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 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 (244,779) 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 (17,353) 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 (12,877) 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 (147,077) 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 (500,625) 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 (1,464,394) 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 (2,516,984) 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 (7,871,473) 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 (430,619) 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 (122,289) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.15 472.42 Td (15,192,966) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 472.42 Td ($) 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 Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 124.20 458.48 Td (LIABILITIES ) Tj ET Q q 0 0 0 rg BT 187.85 458.48 Td (AND ST) Tj ET Q q 0 0 0 rg BT 224.06 458.48 Td (OCKHOLDER EQUITY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 443.32 Td (Current liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 428.32 Td (Accounts payable and accrued expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.50 427.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 427.42 Td (732,766) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 427.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 427.42 Td (768,077) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 413.32 Td (Accrued interest) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 412.42 Td (84,384) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 412.42 Td (137,428) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 398.32 Td (Current portion of deferred revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 397.42 Td (1,910,432) Tj ET Q BT /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 (4,91) Tj ET Q q 0 0 0 rg BT 474.15 382.42 Td (1) 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 (3,923) 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 (2,736,416) 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 (165,956) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 323.32 Td (Long-term debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 322.42 Td (6,807,448) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 322.42 Td (6,741,243) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 308.32 Td (Related party long-term liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 307.42 Td (6,742) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 307.42 Td (7,364) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 293.32 Td (Deferred tax liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 292.42 Td (8,169) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 292.42 Td (8,169) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 278.32 Td (Other long-term liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 277.42 Td (107,645) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 277.42 Td (100,355) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 263.32 Td (T) Tj ET Q q 0 0 0 rg BT 93.26 263.32 Td (otal liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 262.42 Td (9,832,376) 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 March 31, 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 451.65 192.42 Td (12,836) 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 (\(3,331,784) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 162.42 Td (\)) 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 (5,360,590) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.15 132.42 Td (15,192,966) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 132.42 Td ($) 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.) Tj ET Q endstream endobj 11 0 obj <>] /Rotate 0 /Contents 12 0 R>> endobj 12 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 50 591.2669921875 m 120.9521484375 591.2669921875 l s q 0 0 1 rg BT 50.00 592.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 592.60 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 393.50 33.60 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 291.80 560.25 Td (SIRIUS XM RADIO INC. ) Tj ET Q q 0 0 0 rg BT 405.43 560.25 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 277.05 548.25 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 254.85 536.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 314.67 536.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 349.23 536.25 Td (A) Tj ET Q q 0 0 0 rg BT 355.70 536.25 Td (TEMENT) Tj ET Q q 0 0 0 rg BT 398.86 536.25 Td ( OF) Tj ET Q q 0 0 0 rg BT 414.88 536.25 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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1 rg /GS0 gs 688.50 438.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 692.50 438.75 64.00 -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 352.5 500.75 m 416.5 500.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 500.75 m 420.5 500.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.5 500.75 m 484.5 500.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352.5 466.75 m 416.5 466.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.5 466.75 m 484.5 466.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 466.75 m 552.5 466.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 556.5 466.75 m 620.5 466.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 624.5 466.75 m 688.5 466.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 692.5 466.75 m 756.5 466.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352.5 466.75 m 416.5 466.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.5 466.75 m 484.5 466.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 466.75 m 552.5 466.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 556.5 466.75 m 620.5 466.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 624.5 466.75 m 688.5 466.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 692.5 466.75 m 756.5 466.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352.5 424.75 m 416.5 424.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.5 424.75 m 484.5 424.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 424.75 m 552.5 424.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 556.5 424.75 m 620.5 424.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 624.5 424.75 m 688.5 424.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 692.5 424.75 m 756.5 424.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352.5 411.75 m 416.5 411.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352.5 409.75 m 416.5 409.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.5 411.75 m 484.5 411.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.5 409.75 m 484.5 409.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 411.75 m 552.5 411.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 409.75 m 552.5 409.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 556.5 411.75 m 620.5 411.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 556.5 409.75 m 620.5 409.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 624.5 411.75 m 688.5 411.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 624.5 409.75 m 688.5 409.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 692.5 411.75 m 756.5 411.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 692.5 409.75 m 756.5 409.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 39.00 504.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.65 504.98 Td (Common Stock) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 39.00 471.46 Td (\(in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 372.50 470.98 Td (Shar) 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 (\(Loss\) Income) 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 (Stockholder) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 712.40 470.98 Td (Equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 39.00 457.32 Td (Balance at December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.65 457.32 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.00 457.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.65 457.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.00 457.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.15 457.32 Td (18,407) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 457.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 576.65 457.32 Td (8,679,538) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 627.00 457.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 641.30 457.32 Td (\(3,635,628) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 684.65 457.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 695.00 457.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 712.65 457.32 Td (5,062,317) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 39.00 443.32 Td (Cumulative 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(279,857) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 39.00 415.32 Td (Balance at March 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.65 415.32 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.00 415.32 Td ($) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.15 415.32 Td (12,836) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 415.32 Td ($) 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 (\(3,331,784) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 684.65 415.32 Td (\)) 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 (5,360,590) 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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ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 576.37 Td (\(694) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 576.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.80 576.37 Td (\(694) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 576.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 563.32 Td (Gain on unconsolidated entity investments, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 563.37 Td (\(981) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 563.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 563.37 Td (\(3,014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 563.32 Td (\)) 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 448.30 550.37 Td (\(31,375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 550.32 Td (\)) 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 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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 (2,846) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 472.32 Td (3,391) 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 453.30 459.37 Td (\(6,365) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 459.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 459.37 Td (\(5,801) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 459.32 Td (\)) 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 453.30 446.37 Td (\(9,240) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 446.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 446.37 Td (\(7,930) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 446.32 Td (\)) 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 (5,349) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 433.32 Td (1,691) 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 448.30 420.37 Td (\(56,495) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 420.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.30 420.37 Td (\(1) Tj ET Q q 0 0 0 rg BT 530.63 420.37 Td (10,018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 420.32 Td (\)) 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 448.30 407.37 Td (\(53,044) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 407.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.30 407.37 Td (\(32,746) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 407.32 Td (\)) 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 (65,876) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 394.32 Td (27,937) 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 (7,290) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 381.32 Td (5,781) 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 (391,389) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 368.32 Td (293,716) 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 448.30 342.37 Td (\(81,405) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 342.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.30 342.37 Td (\(53,365) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 342.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 329.32 Td (Purchases of restricted and other investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.30 329.37 Td (\(6,831) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 329.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 329.37 Td (\(7,021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 329.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 316.32 Td (Repayment of related party loan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 316.32 Td (3,242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 316.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 303.32 Td (Net cash used in investing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.30 303.37 Td (\(84,994) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 303.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.30 303.37 Td (\(60,386) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 303.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 290.32 Td (Cash flows from financing activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 277.32 Td (Intercompany financing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.30 277.37 Td (\(358,156) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 277.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.30 277.37 Td (\(353,1) Tj ET Q q 0 0 0 rg BT 548.13 277.37 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 277.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 264.32 Td (Net borrowings related to revolving credit facility) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 264.32 Td (65,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 264.32 Td (140,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 251.32 Td (Principal payments of long-term borrowings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.30 251.37 Td (\(3,816) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 251.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 251.37 Td (\(3,669) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 251.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 238.32 Td (Net cash used in financing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.30 238.37 Td (\(296,972) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 238.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.30 238.37 Td (\(216,781) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 238.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 225.32 Td (Net increase in cash, cash equivalents and restricted cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 225.32 Td (9,423) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 225.32 Td (16,549) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 212.32 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 451.65 212.32 Td (79,374) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 212.32 Td (223,828) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 199.32 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 284.75 203.85 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.50 199.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 199.32 Td (88,797) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 199.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 199.32 Td (240,377) Tj ET Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 179.45 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 179.45 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 528.67 179.45 Td (The ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 168.65 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 481.43 168.65 Td (fice space. ) Tj ET Q q 0 0 0 rg BT 521.49 168.65 Td (The terms ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 157.85 Td (of the letters of credit primarily extend beyond one year) Tj ET Q q 0 0 0 rg BT 277.18 157.85 Td (.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 77.00 123.35 248.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 123.35 51.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.00 123.35 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 123.35 51.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.00 123.35 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 123.35 51.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 123.35 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 123.35 51.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 77.00 101.35 248.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.00 101.35 51.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.00 101.35 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 101.35 51.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.00 101.35 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 101.35 51.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 101.35 4.00 -11.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 101.35 51.00 -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 325 123.35000000000002 m 376 123.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 123.35000000000002 m 431 123.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 123.35000000000002 m 486 123.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 123.35000000000002 m 541 123.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 123.35000000000002 m 376 123.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 90.35000000000002 m 376 90.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 78.35000000000002 m 376 78.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 76.35000000000002 m 376 76.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 90.35000000000002 m 431 90.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 78.35000000000002 m 431 78.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 76.35000000000002 m 431 76.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 90.35000000000002 m 486 90.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 78.35000000000002 m 486 78.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 76.35000000000002 m 486 76.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 90.35000000000002 m 541 90.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 78.35000000000002 m 541 78.35000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 76.35000000000002 m 541 76.35000000000002 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 334.70 134.11 Td (Mar) Tj ET Q q 0 0 0 rg BT 347.85 134.11 Td (ch 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 343.00 127.11 Td (2018) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 384.65 134.11 Td (December) Tj ET Q q 0 0 0 rg BT 414.90 134.11 Td ( 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 398.00 127.11 Td (2017) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 444.70 134.11 Td (Mar) Tj ET Q q 0 0 0 rg BT 457.85 134.11 Td (ch 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 453.00 127.11 Td (2017) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 494.65 134.11 Td (December) Tj ET Q q 0 0 0 rg BT 524.84 134.11 Td ( 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 508.00 127.11 Td (2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 79.50 115.30 Td (Cash and cash equivalents) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 327.50 115.30 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 350.75 115.30 Td (78,539) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 382.50 115.30 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.75 115.30 Td (69,022) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.50 115.30 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.75 115.30 Td (230,488) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.50 115.30 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 511.75 115.30 Td (213,939) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 79.50 104.30 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 360.80 104.30 Td (150) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 415.80 104.30 Td (244) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 474.80 104.30 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 529.80 104.30 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 79.50 93.30 Td (Restricted cash included in Other long-term assets) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 350.75 93.30 Td (10,108) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.75 93.30 Td (10,108) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 464.80 93.30 Td (9,889) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 519.80 93.30 Td (9,889) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 79.50 81.60 Td (T) Tj ET Q q 0 0 0 rg BT 83.83 81.60 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 327.50 81.60 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 350.75 81.60 Td (88,797) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 382.50 81.60 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 405.75 81.60 Td (79,374) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 437.50 81.60 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.75 81.60 Td (240,377) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 492.50 81.60 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 511.75 81.60 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 56.85 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 417.20 680.98 Td (For) Tj ET Q q 0 0 0 rg BT 429.57 680.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 444.08 680.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 457.28 680.98 Td (ee Months Ended Mar) Tj ET Q q 0 0 0 rg BT 533.80 680.98 Td (ch 31,) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 625.32 Td (139,176) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 625.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 625.32 Td (1) Tj ET Q q 0 0 0 rg BT 531.65 625.32 Td (10,655) 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 536.65 611.32 Td (6,215) 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, net of tax benefit for related party) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 568.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.65 568.42 Td (9,584) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 568.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 568.42 Td (17) 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 certain cases, a subscription to our radio services is included in the sale or lease price of new or previously owned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (vehicles. ) Tj ET Q q 0 0 0 rg BT 87.08 419.10 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 310.10 419.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.08 419.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.86 419.10 Td (twelve months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.46 419.10 Td (.) Tj ET Q q 0 0 0 rg BT 408.78 419.10 Td (W) Tj ET Q q 0 0 0 rg BT 417.42 419.10 Td (e receive payments for these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (subscriptions from certain automakers.) Tj ET Q q 0 0 0 rg BT 209.83 407.10 Td (W) Tj ET Q q 0 0 0 rg BT 218.47 407.10 Td (e also reimburse various automakers for certain costs associated with satellite radios ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (installed in 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 (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.54 371.10 Td (, Liberty Media Corporation \(Liberty Media\) beneficially owned, directly and indirectly) Tj ET Q q 0 0 0 rg BT 524.87 371.10 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 (71%) 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 (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.82 257.10 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 (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.48 233.10 Td (, filed with the SEC on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.08 233.10 Td (April 25, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.69 233.10 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 49.50 89.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.10 89.10 Td ( and for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.41 89.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.35 89.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.22 89.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.82 89.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.26 89.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.26 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 months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.43 563.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.31 563.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.91 563.10 Td ( and have determined that no events have occurred that would require adjustment to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (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 (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.95 339.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.39 339.60 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.97 339.60 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 252.70 283.55 Td (Mar) Tj ET Q q 0 0 0 rg BT 269.61 283.55 Td (ch 31, 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 ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 248.25 225.56 Td (51) Tj ET Q q 0 0 0 rg BT 257.25 225.56 Td (1,847) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 311.50 225.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.50 225.56 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 342.25 225.56 Td (51) Tj ET Q q 0 0 0 rg BT 351.25 225.56 Td (1,847) 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 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 ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 241.50 197.56 Td (6,756,559) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 311.50 197.56 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 330.50 197.56 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 335.50 197.56 Td (6,756,559) 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 (March31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 342.91 147.40 Td ( and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 360.41 147.40 Td (December31, 2017) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 431.13 147.40 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 ($12,836) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.65 111.40 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 months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.39 87.40 Td ( ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.27 87.40 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.87 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 ($9,584) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.99 75.40 Td ( net of tax of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.58 75.40 Td ($3,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.08 75.40 Td (. In addition, we recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.82 75.40 Td ($4,013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.32 75.40 Td ( related to the adoption of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 63.40 Td (Accounting Standards Update \("ASU"\) 2018-02, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 247.63 63.40 Td (Income Statement - Reporting Compr) Tj ET Q q 0 0 0 rg BT 397.23 63.40 Td (ehensive Income \(T) Tj ET Q q 0 0 0 rg BT 474.06 63.40 Td (opic 220\): ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 51.40 Td (Reclassification of Certain T) Tj ET Q q 0 0 0 rg BT 163.86 51.40 Td (ax Effects fr) Tj ET Q q 0 0 0 rg BT 211.80 51.40 Td (om ) Tj ET Q q 0 0 0 rg BT 226.35 51.40 Td (Accumulated Other Compr) Tj ET Q q 0 0 0 rg BT 334.29 51.40 Td (ehensive Income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.64 51.40 Td (.) 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 /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 695.25 Td (Recent ) Tj ET Q q 0 0 0 rg BT 97.95 695.25 Td (Accounting Pronouncements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 671.25 Td (In February 2016, the Financial ) Tj ET Q q 0 0 0 rg BT 204.81 671.25 Td (Accounting Standards Board \(F) Tj ET Q q 0 0 0 rg BT 335.43 671.25 Td (ASB\) issued ) Tj ET Q q 0 0 0 rg BT 392.10 671.25 Td (ASU 2016-02, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 452.93 671.25 Td (Leases \(T) Tj ET Q q 0 0 0 rg BT 490.63 671.25 Td (opic 842\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.67 671.25 Td (. ) Tj ET Q q 0 0 0 rg BT 533.49 671.25 Td (This ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.25 Td (ASU requires a company to recognize lease assets and liabilities arising from operating leases in the statement of financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.25 Td (position. ) Tj ET Q q 0 0 0 rg BT 86.55 647.25 Td (This ) Tj ET Q q 0 0 0 rg BT 106.27 647.25 Td (ASU does not significantly change the previous lease guidance for how a lessee should recognize the recognition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.25 Td (measurement, and presentation of expenses and cash flows arising from a lease. ) Tj ET Q q 0 0 0 rg BT 370.51 635.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 420.41 635.25 Td (, the criteria for classifying a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.25 Td (finance lease versus an operating lease are substantially the same as the previous guidance. ) Tj ET Q q 0 0 0 rg BT 415.57 623.25 Td (The amendments in this ) Tj ET Q q 0 0 0 rg BT 513.33 623.25 Td (ASU are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 611.25 Td (fective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.25 Td (adoption is permitted. ) Tj ET Q q 0 0 0 rg BT 139.30 599.25 Td (This ) Tj ET Q q 0 0 0 rg BT 159.03 599.25 Td (ASU must be adopted using a modified retrospective approach. ) Tj ET Q q 0 0 0 rg BT 414.90 599.25 Td (W) Tj ET Q q 0 0 0 rg BT 423.53 599.25 Td (e plan to adopt this ) Tj ET Q q 0 0 0 rg BT 501.58 599.25 Td (ASU on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.25 Td (January 1, 2019. ) Tj ET Q q 0 0 0 rg BT 120.42 587.25 Td (W) Tj ET Q q 0 0 0 rg BT 129.06 587.25 Td (e are in the process of evaluating the impact of adoption of this ) Tj ET Q q 0 0 0 rg BT 383.15 587.25 Td (ASU on our consolidated financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.25 Td (statements. ) Tj ET Q q 0 0 0 rg BT 99.03 575.25 Td (W) Tj ET Q q 0 0 0 rg BT 107.67 575.25 Td (e currently believe the most significant changes will be related to the recognition of right-of-use assets and lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.25 Td (liabilities on our consolidated balance sheets for operating leases.) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 76.50 539.25 Td (Recently ) Tj ET Q q 0 0 0 rg BT 114.17 539.25 Td (Adopted ) Tj ET Q q 0 0 0 rg BT 150.19 539.25 Td (Accounting Policies) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 76.50 515.25 Td (ASU 2014-09, Revenue - Revenue fr) Tj ET Q q 0 0 0 rg BT 220.51 515.25 Td (om Contracts with Customers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.69 515.25 Td (. In May 2014, the F) Tj ET Q q 0 0 0 rg BT 423.39 515.25 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 472.29 515.25 Td (ASU 2014-09 which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.25 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 49.50 491.25 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 49.50 479.25 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 49.50 467.25 Td (with customers. ) Tj ET Q q 0 0 0 rg BT 117.64 467.25 Td (W) Tj ET Q q 0 0 0 rg BT 126.28 467.25 Td (e adopted ) Tj ET Q q 0 0 0 rg BT 166.82 467.25 Td (ASU 2014-09, and all related amendments, which established ) Tj ET Q q 0 0 0 rg BT 415.66 467.25 Td (Accounting Standards Codification ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.25 Td (\(ASC\) ) Tj ET Q q 0 0 0 rg BT 86.81 455.25 Td (T) Tj ET Q q 0 0 0 rg BT 92.22 455.25 Td (opic 606 \(the "new revenue standard"\), ef) Tj ET Q q 0 0 0 rg BT 258.75 455.25 Td (fective as of January 1, 2018. ) Tj ET Q q 0 0 0 rg BT 381.03 455.25 Td (W) Tj ET Q q 0 0 0 rg BT 389.67 455.25 Td (e adopted the new revenue standard using ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.25 Td (the modified retrospective method by recognizing the cumulative ef) Tj ET Q q 0 0 0 rg BT 320.89 443.25 Td (fect of initially applying the new revenue standard to all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.25 Td (non-completed contracts as of January 1, 2018 as an adjustment to opening ) Tj ET Q q 0 0 0 rg BT 351.93 431.25 Td (Accumulated deficit in the period of adoption. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.25 Td (Results for reporting periods beginning after January 1, 2018 are presented under the new revenue standard, while prior period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.25 Td (amounts are not adjusted and continue to be reported in accordance with our historic accounting under ) Tj ET Q q 0 0 0 rg BT 461.40 407.25 Td (T) Tj ET Q q 0 0 0 rg BT 466.81 407.25 Td (opic 605.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 383.25 Td (The new revenue standard primarily impacts how we account for revenue share payments as well as other immaterial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.25 Td (impacts.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 347.25 Td (Revenue Share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 323.25 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 323.25 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 49.50 311.25 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 49.50 299.25 Td (distinct good or service to us. Prior to the adoption, a portion of deferred revenue was for the revenue share related to paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.25 Td (trials. Under the new revenue standard, we reclassified the revenue share related to paid trials existing as of the date of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.25 Td (adoption from Current portion of deferred revenue to ) Tj ET Q q 0 0 0 rg BT 263.88 275.25 Td (Accounts payable and accrued expenses. For new paid trials, the net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.25 Td (amount of the paid trial will be recorded as deferred revenue and the portion of revenue share will be recorded to ) Tj ET Q q 0 0 0 rg BT 502.93 263.25 Td (Accounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.25 Td (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 76.50 227.25 Td (Other Impacts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 203.25 Td (Other impacts of the new revenue standard include:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 179.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 179.25 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 85.50 167.25 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 369.25 167.25 Td (one month) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.75 167.25 Td ( period from activation as the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 155.25 Td (activation fees are non-refundable and they do not convey a material right. ) Tj ET Q q 0 0 0 rg BT 388.16 155.25 Td (As of January 1, 2018, we reduced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 143.25 Td (deferred revenue related to activation fees of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.79 143.25 Td ($8,260) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.29 143.25 Td (, net of tax, to ) Tj ET Q q 0 0 0 rg BT 351.78 143.25 Td (Accumulated deficit.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 119.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 119.25 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 85.50 107.25 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 95.25 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 83.25 Td (that OEM. ) Tj ET Q q 0 0 0 rg BT 132.17 83.25 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 83.25 Td ($10,156) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.03 83.25 Td (, net of tax, to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 71.25 Td (Prepaid expenses and other current assets by reducing ) Tj ET Q q 0 0 0 rg BT 303.21 71.25 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 47.25 Td (These changes do not have a material impact to our financial statements.) Tj ET Q BT /F1 10.00 Tf ET 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 /F3 10.00 Tf ET q 0 0 0 rg BT 76.50 695.10 Td (ASU 2018-02, Income Statement - Reporting Compr) Tj ET Q q 0 0 0 rg BT 285.26 695.10 Td (ehensive Income \(T) Tj ET Q q 0 0 0 rg BT 362.09 695.10 Td (opic 220\): Reclassification of Certain T) Tj ET Q q 0 0 0 rg BT 520.32 695.10 Td (ax Effects ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (fr) Tj ET Q q 0 0 0 rg BT 55.80 683.10 Td (om ) Tj ET Q q 0 0 0 rg BT 70.34 683.10 Td (Accumulated Other Compr) Tj ET Q q 0 0 0 rg BT 178.28 683.10 Td (ehensive Income.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.14 683.10 Td ( In February 2018, the F) Tj ET Q q 0 0 0 rg BT 346.10 683.10 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 395.00 683.10 Td (ASU 2018-02 to amend its standard on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 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 403.65 671.10 Td (fects of the ) Tj ET Q q 0 0 0 rg BT 450.39 671.10 Td (T) Tj ET Q q 0 0 0 rg BT 455.80 671.10 Td (ax Cuts and Jobs ) Tj ET Q q 0 0 0 rg BT 525.25 671.10 Td (Act \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (T) Tj ET Q q 0 0 0 rg BT 59.35 659.10 Td (ax ) Tj ET Q q 0 0 0 rg BT 70.74 659.10 Td (Act\) 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 49.50 647.10 Td (earnings. ) Tj ET Q q 0 0 0 rg BT 88.20 647.10 Td (The stranded tax ef) Tj ET Q q 0 0 0 rg BT 164.92 647.10 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 49.50 635.10 Td (recorded in comprehensive income but whose remeasurement is reflected in the income statement. ) Tj ET Q q 0 0 0 rg BT 448.34 635.10 Td (The guidance is ef) Tj ET Q q 0 0 0 rg BT 521.74 635.10 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (for interim and fiscal years beginning after December 15, 2018, with early adoption permitted. ) Tj ET Q q 0 0 0 rg BT 432.53 623.10 Td (W) Tj ET Q q 0 0 0 rg BT 441.17 623.10 Td (e elected to early adopt ) Tj ET Q q 0 0 0 rg BT 535.84 623.10 Td (ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (2018-02 ef) Tj ET Q q 0 0 0 rg BT 92.92 611.10 Td (fective January 1, 2018 and reclassified the stranded tax ef) Tj ET Q q 0 0 0 rg BT 327.09 611.10 Td (fects due to the ) Tj ET Q q 0 0 0 rg BT 390.22 611.10 Td (T) Tj ET Q q 0 0 0 rg BT 395.63 611.10 Td (ax ) Tj ET Q q 0 0 0 rg BT 407.01 611.10 Td (Act of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.78 611.10 Td ($4,013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.28 611.10 Td ( related to the currency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (translation adjustment from our investment balance and note receivable with Sirius XM Canada from ) Tj ET Q q 0 0 0 rg BT 456.61 599.10 Td (AOCI to ) Tj ET Q q 0 0 0 rg BT 493.28 599.10 Td (Accumulated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (deficit.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.54 587.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 563.10 Td (The cumulative ef) Tj ET Q q 0 0 0 rg BT 149.06 563.10 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 49.50 551.10 Td (ASU 2014-09 and ) Tj ET Q q 0 0 0 rg BT 124.22 551.10 Td (ASU 2018-02 are included in the table below) Tj ET Q q 0 0 0 rg BT 304.92 551.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 492.60 190.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 239.00 492.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 492.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 492.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 492.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 492.60 78.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 492.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 492.60 79.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 462.60 190.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 239.00 462.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 462.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 462.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 462.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 462.60 78.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 462.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 462.60 79.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 432.60 190.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 239.00 432.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 432.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 432.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 432.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 432.60 78.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 432.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 432.60 79.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 402.60 190.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 239.00 402.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 402.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 402.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 402.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 402.60 78.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 402.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 402.60 79.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 372.60 190.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 239.00 372.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 372.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 372.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 372.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 372.60 78.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 372.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 372.60 79.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 342.60 190.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 239.00 342.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 342.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.00 342.60 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 342.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 342.60 78.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 342.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 342.60 79.00 -15.00 re f /GS0 gs 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 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239 507.6 m 316 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 507.6 m 397 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 507.6 m 479 507.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 507.6 m 562 507.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 259.10 519.83 Td (Balance at) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 244.75 511.83 Td (December) Tj ET Q q 0 0 0 rg BT 279.25 511.83 Td ( 31, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 324.00 519.83 Td (Adjustments Due to) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.65 511.83 Td (ASU 2014-09) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.50 519.83 Td (Adjustments Due to) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 417.15 511.83 Td (ASU 2018-02) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.10 519.83 Td (Balance at) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 494.75 511.83 Td (January 1, 2018) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 497.28 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 51.5 480.71259765625 m 78.1650390625 480.71259765625 l s q 0 0 0 rg BT 51.50 482.28 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 467.27 Td (Prepaid expenses and other current assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.50 467.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.65 467.27 Td (129,669) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.50 467.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.65 467.27 Td (8,262) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.50 467.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 467.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.50 467.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 467.27 Td (137,931) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 452.27 Td (Other long-term assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.65 452.27 Td (1) Tj ET Q q 0 0 0 rg BT 284.65 452.27 Td (18,671) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.65 452.27 Td (2,576) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 452.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 452.27 Td (121,247) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 437.27 Td (Deferred tax assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.65 437.27 Td (505,528) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.30 437.32 Td (\(5,915) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 437.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 437.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 437.27 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 51.5 405.71259765625 m 97.61328125 405.71259765625 l s q 0 0 0 rg BT 51.50 407.28 Td (Liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 392.27 Td (Accounts payable and accrued expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.65 392.27 Td (768,077) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 392.27 Td (32,399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 392.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 392.27 Td (800,476) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 377.27 Td (Current portion of deferred revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.15 377.27 Td (1,881,825) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.30 377.32 Td (\(41,902) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 377.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 377.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 377.27 Td (1,839,923) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 362.27 Td (Deferred revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.65 362.27 Td (174,579) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.30 362.32 Td (\(3,990) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 362.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 362.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 362.27 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 51.5 330.71259765625 m 83.7314453125 330.71259765625 l s q 0 0 0 rg BT 51.50 332.28 Td (Equity:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 317.27 Td (Accumulated deficit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.80 317.32 Td (\(3,635,628) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.15 317.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 317.27 Td (18,416) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.30 317.32 Td (\(4,013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 317.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.80 317.32 Td (\(3,621,225) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 317.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 302.27 Td (AOCI, net of tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.65 302.27 Td (18,407) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.15 302.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 302.27 Td (4,013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 302.27 Td (22,420) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 274.10 Td (The following table illustrates the impact that adopting ) Tj ET Q q 0 0 0 rg BT 298.12 274.10 Td (ASU 2014-09 has had on our reported results in the unaudited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (consolidated statement of comprehensive income. ) Tj ET Q q 0 0 0 rg BT 253.98 262.10 Td (The adoption of ) Tj ET Q q 0 0 0 rg BT 319.80 262.10 Td (ASU 2018-02 did not impact our unaudited consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (statement of comprehensive income.) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 185.60 259.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.00 185.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 185.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.00 185.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 185.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 185.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 155.60 259.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.00 155.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 155.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.00 155.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 155.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 155.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 125.60 259.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.00 125.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 125.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.00 125.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 125.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 125.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 95.60 259.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.00 95.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 95.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.00 95.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 95.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 95.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 65.60 259.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.00 65.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.00 65.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.00 65.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 65.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 65.60 82.00 -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 308 226.60000000000002 m 390 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390 226.60000000000002 m 394 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394 226.60000000000002 m 476 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 226.60000000000002 m 480 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480 226.60000000000002 m 562 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308 199.60000000000002 m 390 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394 199.60000000000002 m 476 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480 199.60000000000002 m 562 199.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 357.20 230.83 Td (For) Tj ET Q q 0 0 0 rg BT 369.57 230.83 Td ( the ) Tj ET Q q 0 0 0 rg BT 384.08 230.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 397.28 230.83 Td (ee Months Ended Mar) Tj ET Q q 0 0 0 rg BT 473.80 230.83 Td (ch 31, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 327.05 203.83 Td (As Reported) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.15 211.83 Td (Impact of ) Tj ET Q q 0 0 0 rg BT 436.03 211.83 Td (Adopting) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 412.15 203.83 Td (ASU 2014-09) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 490.30 218.68 Td (Balances ) Tj ET Q q 0 0 0 rg BT 522.38 218.68 Td (W) Tj ET Q q 0 0 0 rg BT 530.23 218.68 Td (ithout) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.35 210.68 Td (Adoption of ) Tj ET Q q 0 0 0 rg BT 533.58 210.68 Td (ASU) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.15 202.68 Td (2014-09) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 190.28 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 51.5 173.71259765625007 m 92.0517578125 173.71259765625007 l s q 0 0 0 rg BT 51.50 175.28 Td (Revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 160.27 Td (Subscriber revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.50 160.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.15 160.27 Td (1,1) Tj ET Q q 0 0 0 rg BT 358.65 160.27 Td (17,084) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.50 160.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.65 160.27 Td (24,392) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.50 160.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 160.27 Td (1,141,476) 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 51.5 128.71259765625007 m 90.953125 128.71259765625007 l s q 0 0 0 rg BT 51.50 130.28 Td (Expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 115.27 Td (Revenue share and royalties) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.65 115.27 Td (310,132) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.65 115.27 Td (22,069) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 115.27 Td (332,201) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 100.27 Td (Subscriber acquisition costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.65 100.27 Td (122,693) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.65 100.27 Td (1,046) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 100.27 Td (123,739) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 85.27 Td (Income tax expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.30 85.32 Td (\(80,249) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.15 85.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.80 85.32 Td (\(277) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.15 85.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.30 85.32 Td (\(80,526) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 85.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 55.27 Td (Net Income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.50 55.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.65 55.27 Td (289,441) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.50 55.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.65 55.27 Td (1,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.50 55.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 55.27 Td (290,441) 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 BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 683.10 Td (The adoption of the new revenue standard did not have a material impact to our unaudited consolidated balance sheet as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 671.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.93 671.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 76.50 647.10 Td (ASU 2016-18,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.16 647.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 135.66 647.10 Td (Statement of Cash Flows \(T) Tj ET Q q 0 0 0 rg BT 245.86 647.10 Td (opic 230\): Restricted Cash. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.84 647.10 Td (In November 2016, the F) Tj ET Q q 0 0 0 rg BT 460.91 647.10 Td (ASB issued ) Tj ET Q q 0 0 0 rg BT 509.81 647.10 Td (ASU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (2016-18, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 87.83 635.10 Td (Statement of Cash Flows \(T) Tj ET Q q 0 0 0 rg BT 198.03 635.10 Td (opic 230\): Restricted Cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.51 635.10 Td (. ) Tj ET Q q 0 0 0 rg BT 312.83 635.10 Td (This ) Tj ET Q q 0 0 0 rg BT 332.55 635.10 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 49.50 623.10 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 49.50 611.10 Td (and ending cash. ) Tj ET Q q 0 0 0 rg BT 121.24 611.10 Td (The guidance is ef) Tj ET Q q 0 0 0 rg BT 194.64 611.10 Td (fective for fiscal years beginning after December 15, 2017, including interim periods within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (that reporting period, and we adopted this ) Tj ET Q q 0 0 0 rg BT 218.35 599.10 Td (ASU ef) Tj ET Q q 0 0 0 rg BT 248.44 599.10 Td (fective January 1, 2018. ) Tj ET Q q 0 0 0 rg BT 348.69 599.10 Td (As a result of the adoption, we have added restricted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (cash to the reconciliation of beginning and ending cash and cash equivalents and included a reconciliation of total cash, cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.10 Td (equivalents and restricted cash to the balance sheet for each period presented in the unaudited consolidated statements of cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (flows. Refer to the unaudited consolidated statements of cash flows for the impacts of this adoption.) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (\(3\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 539.10 Td (Revenues) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 515.10 Td (Adoption of the new r) Tj ET Q q 0 0 0 rg BT 169.65 515.10 Td (evenue standard) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 491.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 491.10 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 526.19 491.10 Td (fect of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 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 49.50 467.10 Td (Accumulated deficit in the period of adoption.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.72 467.10 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 49.50 455.10 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 49.50 443.10 Td (historic accounting under ) Tj ET Q q 0 0 0 rg BT 153.46 443.10 Td (T) Tj ET Q q 0 0 0 rg BT 158.87 443.10 Td (opic 605.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 419.10 Td (Disaggr) Tj ET Q q 0 0 0 rg BT 109.65 419.10 Td (egation of Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 395.10 Td (The following table presents the revenues disaggregated by revenue source:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 331.60 334.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.50 331.60 87.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 331.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 331.60 87.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 301.60 334.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.50 301.60 87.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 301.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 301.60 87.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 271.60 334.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.50 271.60 87.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.50 271.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 271.60 87.00 -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 383.5 359.6 m 470.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470.5 359.6 m 474.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 359.6 m 561.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383.5 359.6 m 470.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383.5 346.6 m 470.5 346.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470.5 359.6 m 474.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470.5 346.6 m 474.5 346.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 359.6 m 561.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 346.6 m 561.5 346.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 271.6 m 561.5 271.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383.5 271.6 m 470.5 271.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383.5 257.6 m 470.5 257.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383.5 255.60000000000002 m 470.5 255.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 271.6 m 561.5 271.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 257.6 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 474.5 255.60000000000002 m 561.5 255.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 403.70 363.83 Td (For) Tj ET Q q 0 0 0 rg BT 416.07 363.83 Td ( the ) Tj ET Q q 0 0 0 rg BT 430.58 363.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 443.78 363.83 Td (ee Months Ended Mar) Tj ET Q q 0 0 0 rg BT 520.30 363.83 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 418.50 350.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 506.45 350.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 522.45 354.46 Td (\(1\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 336.28 Td (T) Tj ET Q q 0 0 0 rg BT 58.30 336.28 Td (ypes of Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 321.27 Td (Subscription Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.00 321.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 321.27 Td (1,1) Tj ET Q q 0 0 0 rg BT 439.15 321.27 Td (17,084) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.00 321.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 321.27 Td (1,078,257) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 306.27 Td (Advertising Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 306.27 Td (42,048) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 306.27 Td (36,016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 291.27 Td (Equipment Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 291.27 Td (35,089) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 291.27 Td (29,658) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 276.27 Td (Music Royalty Fee and Other Revenue) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 207.80 280.80 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.15 276.27 Td (180,881) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 276.27 Td (150,135) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 261.28 Td (T) Tj ET Q q 0 0 0 rg BT 57.75 261.28 Td (otal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.00 261.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 261.27 Td (1,375,102) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.00 261.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 261.27 Td (1,294,066) Tj ET Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 240.30 Td (\(1\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 240.30 Td (Prior period amounts have not been adjusted under the modified retrospective method.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 229.50 Td (\(2\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 229.50 Td (Music Royalty Fee and Other Revenue includes revenue of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 291.69 229.50 Td ($1,813) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 316.44 229.50 Td ( related to purchase price accounting adjustments which are not ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 218.70 Td (subject to the new revenue standard.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 194.70 Td (Natur) Tj ET Q q 0 0 0 rg BT 101.87 194.70 Td (e of goods and services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 170.70 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 49.50 158.70 Td (advertising, and sales of equipment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.35 158.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 134.70 Td (Subscription Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.54 134.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 110.70 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 98.70 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 86.70 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 74.70 Td (Consumers purchasing or leasing a vehicle with a factory-installed satellite radio typically receive between a three and twelve ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 62.70 Td (month subscription to our service.In certain cases, the subscription fee 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 50.70 Td (automaker) Tj ET Q q 0 0 0 rg BT 91.15 50.70 Td (. Prepaid subscription fees received from certain automakers or directly from consumers are recorded as deferred ) 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 (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 492.10 695.10 Td (Activation fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 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 556.80 683.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 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 49.50 659.10 Td (a certain amount of payments from self-pay customers acquired from that OEM. ) Tj ET Q q 0 0 0 rg BT 375.88 659.10 Td (These fees are considered incremental costs to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 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 49.50 635.10 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 371.45 635.10 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 49.50 623.10 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 369.40 623.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 599.10 Td (Advertising Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.20 599.10 Td ( ) 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 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 49.50 563.10 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 422.71 563.10 Td (Agency fees are calculated based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 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 49.50 539.10 Td (advertising revenue.) Tj ET Q q 0 0 0 rg BT 135.03 539.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 184.93 539.10 Td (, we pay certain third parties a percentage of advertising revenue.) Tj ET Q q 0 0 0 rg BT 450.37 539.10 Td (Advertising revenue is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.10 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 49.50 515.10 Td (and we are primarily responsible for providing the service.) Tj ET Q q 0 0 0 rg BT 288.59 515.10 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 49.50 503.10 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 330.27 503.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 479.10 Td (Equipment Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.87 479.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 455.10 Td (Equipment revenue 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 49.50 443.10 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 49.50 431.10 Td (discounts and rebates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 431.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 407.10 Td (Music Royalty Fee and Other Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.30 407.10 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 primarily consists of U.S. music royalty fees \("MRF"\). ) Tj ET Q q 0 0 0 rg BT 458.87 383.10 Td (The related costs we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 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 49.50 359.10 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 49.50 347.10 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 76.50 323.10 Td (Deferr) Tj ET Q q 0 0 0 rg BT 104.63 323.10 Td (ed Revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 153.79 323.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 299.10 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 49.50 287.10 Td (recorded as deferred revenue. ) Tj ET Q q 0 0 0 rg BT 172.58 287.10 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 49.50 275.10 Td (comprehensive income as the services are provided. Changes in the contract liability balance during the period ended March ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.10 Td (31, 2018 was not materially impacted by other factors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.77 263.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 239.10 Td (T) Tj ET Q q 0 0 0 rg BT 82.43 239.10 Td (ransaction Price ) Tj ET Q q 0 0 0 rg BT 154.08 239.10 Td (Allocated to the Remaining Performance Obligations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.44 239.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 215.10 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 476.09 215.10 Td (ASC 606-10-50-14 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 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 49.50 191.10 Td (durations of one year or less. ) Tj ET Q q 0 0 0 rg BT 169.47 191.10 Td (As of March, 31, 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 49.50 179.10 Td (contracts that extended beyond one year) Tj ET Q q 0 0 0 rg BT 209.71 179.10 Td (. ) Tj ET Q q 0 0 0 rg BT 217.03 179.10 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 49.50 167.10 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 49.50 155.10 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 395.50 155.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (\(4\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 131.10 Td (Receivables, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 113.10 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 511.49 113.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 89.10 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 77.10 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 BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 65.10 Td (assessment of various factors.) Tj ET Q q 0 0 0 rg BT 173.73 65.10 Td (W) Tj ET Q q 0 0 0 rg BT 182.37 65.10 Td (e consider historical experience, the age of the receivable balances, current economic ) 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 (conditions and other factors that may af) Tj ET Q q 0 0 0 rg BT 208.16 695.10 Td (fect the counterparty) Tj ET Q q 0 0 0 rg BT 293.67 695.10 Td (s ability to pay) Tj ET Q q 0 0 0 rg BT 352.18 695.10 Td (.Bad debt expense is included in Customer service ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 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 401.35 683.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 659.10 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 49.50 647.10 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 49.50 635.10 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 49.50 623.10 Td (subsidies and royalties based on the number of units produced.) Tj ET Q q 0 0 0 rg BT 305.38 623.10 Td (W) Tj ET Q q 0 0 0 rg BT 314.02 623.10 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 49.50 611.10 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 49.50 599.10 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 76.50 575.10 Td (Receivables, net, consists of the following:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 549.60 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 549.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 549.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 549.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 519.60 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 519.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 519.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 519.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 489.60 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 489.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 489.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 489.60 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 409 549.6 m 484 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 549.6 m 563 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 549.6 m 484 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 549.6 m 563 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 519.6 m 484 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 519.6 m 563 519.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 474.6 m 484 474.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 460.6 m 484 460.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 458.6 m 484 458.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 474.6 m 563 474.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 460.6 m 563 460.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 458.6 m 563 458.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 554.27 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.50 553.83 Td (Mar) Tj ET Q q 0 0 0 rg BT 434.53 553.83 Td (ch 31, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.75 553.83 Td (December) Tj ET Q q 0 0 0 rg BT 527.25 553.83 Td ( 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 539.27 Td (Gross customer accounts receivable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 539.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 539.27 Td (99,761) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 539.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 539.27 Td (100,342) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 524.27 Td (Allowance for doubtful accounts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.30 524.32 Td (\(8,820) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 524.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 524.32 Td (\(9,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 524.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 509.27 Td (Customer accounts receivable, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 509.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 509.27 Td (90,941) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 509.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 509.27 Td (90,842) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 494.27 Td (Receivables from distributors) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 494.27 Td (125,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 494.27 Td (121,410) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 479.27 Td (Other receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 479.27 Td (28,621) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 479.27 Td (29,475) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 464.27 Td (T) Tj ET Q q 0 0 0 rg BT 69.91 464.27 Td (otal receivables, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 464.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 464.27 Td (244,779) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 464.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 464.27 Td (241,727) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 436.10 Td (\(5\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 436.10 Td (Inventory) Tj ET Q q 0 0 0 rg BT 118.17 436.10 Td (, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 418.10 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 49.50 406.10 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 465.00 406.10 Td (W) Tj ET Q q 0 0 0 rg BT 473.64 406.10 Td (e record an estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 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 49.50 382.10 Td (value.) Tj ET Q q 0 0 0 rg BT 78.47 382.10 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 49.50 370.10 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 49.50 358.10 Td (comprehensive income.) Tj ET Q q 0 0 0 rg BT 149.29 358.10 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 49.50 346.10 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 435.24 346.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 322.10 Td (Inventory) Tj ET Q q 0 0 0 rg BT 114.73 322.10 Td (, net, consists of the following:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 296.60 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 296.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 296.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 296.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 266.60 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 266.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 266.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 266.60 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 409 296.6 m 484 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 296.6 m 563 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 296.6 m 484 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 296.6 m 563 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 251.60000000000002 m 484 251.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 251.60000000000002 m 563 251.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 251.60000000000002 m 484 251.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 237.60000000000002 m 484 237.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 235.60000000000002 m 484 235.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 251.60000000000002 m 563 251.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 237.60000000000002 m 563 237.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 235.60000000000002 m 563 235.60000000000002 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 301.27 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.50 300.83 Td (Mar) Tj ET Q q 0 0 0 rg BT 434.53 300.83 Td (ch 31, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.75 300.83 Td (December) Tj ET Q q 0 0 0 rg BT 527.25 300.83 Td ( 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 286.27 Td (Raw materials) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 286.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.65 286.27 Td (4,345) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 286.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 286.27 Td (6,489) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 271.27 Td (Finished goods) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 271.27 Td (19,162) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 271.27 Td (21,225) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 256.27 Td (Allowance for obsolescence) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.30 256.32 Td (\(6,154) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 256.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 256.32 Td (\(7,515) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 256.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 241.27 Td (T) Tj ET Q q 0 0 0 rg BT 69.91 241.27 Td (otal inventory) Tj ET Q q 0 0 0 rg BT 125.08 241.27 Td (, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 241.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 241.27 Td (17,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 241.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 241.27 Td (20,199) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 213.10 Td (\(6\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 213.10 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 195.10 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 49.50 183.10 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 49.50 171.10 Td (performed as of the fourth quarter of each year) Tj ET Q q 0 0 0 rg BT 236.23 171.10 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 49.50 159.10 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 538.79 159.10 Td (ASC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 147.10 Td (350, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 69.50 147.10 Td (Intangibles - Goodwill and Other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.38 147.10 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 49.50 135.10 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 461.39 135.10 Td (ge for the amount by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 123.10 Td (which the carrying amount exceeds the reporting unit) Tj ET Q q 0 0 0 rg BT 265.82 123.10 Td (s fair value. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 99.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.94 99.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.54 99.10 Td (, there were no indicators of impairment, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.26 99.10 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.26 99.10 Td ( impairment losses were recorded for goodwill ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 87.10 Td (during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.83 87.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.76 87.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.64 87.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.23 87.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.67 87.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.67 87.10 Td (.) Tj ET Q q 0 0 0 rg BT 283.62 87.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.06 87.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.66 87.10 Td (, the cumulative balance of goodwill ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 75.10 Td (impairments recorded since the July 2008 mer) Tj ET Q q 0 0 0 rg BT 234.27 75.10 Td (ger \(the Mer) Tj ET Q q 0 0 0 rg BT 288.50 75.10 Td (ger\) between our wholly owned subsidiary) Tj ET Q q 0 0 0 rg BT 463.08 75.10 Td (, ) Tj ET Q q 0 0 0 rg BT 467.90 75.10 Td (V) Tj ET Q q 0 0 0 rg BT 474.01 75.10 Td (ernon Mer) Tj ET Q q 0 0 0 rg BT 515.76 75.10 Td (ger ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 63.10 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 63.10 Td ($4,766,190) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.67 63.10 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 51.10 Td (December31, 2008.) 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 /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (\(7\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 683.10 Td (Intangible ) Tj ET Q q 0 0 0 rg BT 122.35 683.10 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 665.10 Td (Our intangible assets include the following:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 612.60 131.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 612.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 612.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 612.60 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.00 612.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.00 612.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.00 612.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 612.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 612.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 612.60 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 612.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 612.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 612.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 612.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 584.60 131.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 584.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 584.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 584.60 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.00 584.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.00 584.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.00 584.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 584.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 584.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 584.60 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 584.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 584.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 584.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 584.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 556.60 131.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 556.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 556.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 556.60 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.00 556.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.00 556.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.00 556.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 556.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 556.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 556.60 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 556.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 556.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 556.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 556.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 528.60 131.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 528.60 48.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 528.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 528.60 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.00 528.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.00 528.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.00 528.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 528.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 528.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 528.60 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 528.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 528.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 528.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 528.60 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 500.60 131.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 181.00 500.60 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 500.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 500.60 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.00 500.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.00 500.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.00 500.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 500.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 500.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 500.60 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 451.00 500.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 455.00 500.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 500.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 500.60 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 233 641.6 m 284 641.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284 641.6 m 288 641.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288 641.6 m 340 641.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340 641.6 m 344 641.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 641.6 m 396 641.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 641.6 m 451 641.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451 641.6 m 455 641.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 641.6 m 507 641.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 641.6 m 511 641.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 641.6 m 563 641.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 181 612.6 m 229 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 612.6 m 284 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288 612.6 m 340 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 612.6 m 396 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 612.6 m 451 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 612.6 m 507 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 612.6 m 563 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 500.6 m 284 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 486.6 m 284 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 484.6 m 284 484.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288 500.6 m 340 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288 486.6 m 340 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288 484.6 m 340 484.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 500.6 m 396 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 486.6 m 396 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 484.6 m 396 484.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 500.6 m 451 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 486.6 m 451 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 484.6 m 451 484.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 500.6 m 507 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 486.6 m 507 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 484.6 m 507 484.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 500.6 m 563 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 486.6 m 563 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 484.6 m 563 484.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 645.17 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 183.50 645.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 287.50 645.83 Td (Mar) Tj ET Q q 0 0 0 rg BT 302.53 645.83 Td (ch 31, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.75 645.83 Td (December) Tj ET Q q 0 0 0 rg BT 483.32 645.83 Td ( 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 617.27 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 188.25 632.83 Td (W) Tj ET Q q 0 0 0 rg BT 196.03 632.83 Td (eighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 190.55 624.83 Td (A) Tj ET Q q 0 0 0 rg BT 196.03 624.83 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 183.50 616.83 Td (UsefulLives) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 248.05 632.83 Td (Gr) Tj ET Q q 0 0 0 rg BT 257.75 632.83 Td (oss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 242.20 624.83 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 248.35 616.83 Td (V) Tj ET Q q 0 0 0 rg BT 253.76 616.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.80 624.83 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.60 616.83 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 346.70 624.83 Td (NetCarrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.85 616.83 Td (V) Tj ET Q q 0 0 0 rg BT 365.26 616.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.05 632.83 Td (Gr) Tj ET Q q 0 0 0 rg BT 424.75 632.83 Td (oss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 409.20 624.83 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.35 616.83 Td (V) Tj ET Q q 0 0 0 rg BT 420.76 616.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.80 624.83 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.60 616.83 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 513.70 624.83 Td (NetCarrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.85 616.83 Td (V) Tj ET Q q 0 0 0 rg BT 531.89 616.83 Td (alue) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 603.86 Td (Indefinite life intangible assets:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 603.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 280.50 603.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 336.50 603.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 392.50 603.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.50 603.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.50 603.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.50 603.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 64.50 589.86 Td (FCC licenses) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 190.50 589.06 Td (Indefinite) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 235.50 589.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 244.50 589.06 Td (2,083,654) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 290.50 589.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 327.50 589.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 346.50 589.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.50 589.06 Td (2,083,654) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 402.50 589.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.50 589.06 Td (2,083,654) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 457.50 589.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.50 589.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 513.50 589.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 523.50 589.06 Td (2,083,654) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 64.50 575.86 Td (T) Tj ET Q q 0 0 0 rg BT 69.68 575.86 Td (rademarks) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 190.50 575.06 Td (Indefinite) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.25 575.06 Td (250,800) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 327.50 575.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.25 575.06 Td (250,800) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.25 575.06 Td (250,800) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 494.50 575.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.25 575.06 Td (250,800) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 561.86 Td (Definite life intangible assets:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 561.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 280.50 561.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 336.50 561.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 392.50 561.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 447.50 561.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.50 561.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 559.50 561.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 64.50 547.86 Td (Subscriber relationships) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 199.75 547.06 Td (9 years) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 271.50 547.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 327.50 547.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 383.50 547.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.25 547.06 Td (380,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 471.25 547.06 Td (\(380,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.50 547.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 550.50 547.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 64.50 533.86 Td (OEM relationships) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 195.25 533.06 Td (15 years) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 251.25 533.06 Td (220,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 308.75 533.06 Td (\(64,778) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 336.50 533.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 363.25 533.06 Td (155,222) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 418.25 533.06 Td (220,000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.75 533.06 Td (\(61,1) Tj ET Q q 0 0 0 rg BT 494.50 533.06 Td (1) Tj ET Q q 0 0 0 rg BT 499.00 533.06 Td (1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.50 533.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 530.25 533.06 Td (158,889) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 64.50 519.86 Td (Licensing agreements) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 195.25 519.06 Td (12 years) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.75 519.06 Td (45,289) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 308.75 519.06 Td (\(35,271) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 336.50 519.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 367.75 519.06 Td (10,018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 422.75 519.06 Td (45,289) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.75 519.06 Td (\(34,350) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.50 519.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.75 519.06 Td (10,939) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 64.50 505.86 Td (Software and technology) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 199.75 505.06 Td (7 years) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 255.75 505.06 Td (33,872) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 308.75 505.06 Td (\(16,582) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 336.50 505.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 367.75 505.06 Td (17,290) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 422.75 505.06 Td (43,915) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 475.75 505.06 Td (\(25,351) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.50 505.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 534.75 505.06 Td (18,564) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 491.86 Td (T) Tj ET Q q 0 0 0 rg BT 81.37 491.86 Td (otal intangible assets) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 490.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 235.50 490.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 244.50 490.06 Td (2,633,615) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 290.50 490.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 304.25 490.06 Td (\(1) Tj ET Q q 0 0 0 rg BT 311.75 490.06 Td (16,631) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 336.50 490.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 346.50 490.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.50 490.06 Td (2,516,984) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 402.50 490.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.50 490.06 Td (3,023,658) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 457.50 490.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 471.25 490.06 Td (\(500,812) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 503.50 490.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 513.50 490.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 523.50 490.06 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 63.00 462.10 Td (Indefinite Life Intangible ) Tj ET Q q 0 0 0 rg BT 170.13 462.10 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 444.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 444.10 Td (e have identified our FCC licenses and the XM and ) Tj ET Q q 0 0 0 rg BT 292.32 444.10 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 49.50 432.10 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 49.50 420.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 420.10 Td (fects of obsolescence on their use. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 396.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 396.10 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 490.67 396.10 Td (The following ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 384.10 Td (table outlines the years in which each of our satellite licenses expires: ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 358.60 402.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 358.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 358.60 106.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 332.60 402.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 332.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 332.60 106.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 306.60 402.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 306.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 306.60 106.00 -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 50 358.6 m 452 358.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 358.6 m 562 358.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 362.83 Td (FCC satellite licenses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 481.55 362.83 Td (Expirationyear) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 349.17 Td (SIRIUS FM-5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.50 349.17 Td (2025) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 336.17 Td (SIRIUS FM-6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.50 336.17 Td (2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 323.17 Td (XM-3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.50 323.17 Td (2021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 310.17 Td (XM-4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.50 310.17 Td (2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 297.17 Td (XM-5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.50 297.17 Td (2018) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 270.10 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 397.78 270.10 Td (The renewal and extension of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.10 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 49.50 246.10 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 77.50 222.10 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 49.50 210.10 Td (quarter of each year) Tj ET Q q 0 0 0 rg BT 128.62 210.10 Td (. ) Tj ET Q q 0 0 0 rg BT 135.56 210.10 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 49.50 198.10 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 49.50 186.10 Td (its fair value, an impairment loss is recognized. ) Tj ET Q q 0 0 0 rg BT 243.06 186.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.50 186.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.10 186.10 Td (, there were no indicators of impairment, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.82 186.10 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.82 186.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.10 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 388.87 174.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.80 174.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.68 174.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.27 174.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 162.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 162.10 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 ($5,862) 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 ($1) Tj ET Q q 0 0 0 rg BT 385.49 671.25 Td (1,528) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.99 671.25 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.37 671.25 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.30 671.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.18 671.25 Td (March31, ) 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 (. ) Tj ET Q q 0 0 0 rg BT 168.92 659.25 Td (W) Tj ET Q q 0 0 0 rg BT 177.56 659.25 Td (e retired definite lived intangible assets of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.78 659.25 Td ($390,043) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.28 659.25 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.10 659.25 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.04 659.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.91 659.25 Td (March31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 647.25 Td (. ) Tj ET Q q 0 0 0 rg BT 76.82 647.25 Td (There were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.56 647.25 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.56 647.25 Td ( retirements of definite lived intangible assets during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.56 647.25 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.49 647.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.37 647.25 Td (March31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.97 647.25 Td (. Expected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.25 Td (amortization expense for the remaining period in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.49 635.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.49 635.25 Td (, each of the fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.60 635.25 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.60 635.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.71 635.25 Td (2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.71 635.25 Td ( and for periods thereafter is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.25 Td (as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 599.75 434.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 599.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 599.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 571.75 434.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 571.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 571.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 543.75 434.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 543.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 543.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 515.75 434.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 515.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 515.75 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 50 599.75 m 484 599.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 599.75 m 563 599.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 515.75 m 563 515.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 515.75 m 563 515.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 502.75 m 563 502.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 500.75 m 563 500.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 603.98 Td (Y) Tj ET Q q 0 0 0 rg BT 57.39 603.98 Td (ears ending December) Tj ET Q q 0 0 0 rg BT 133.23 603.98 Td ( 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 510.95 603.98 Td (Amount) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 590.32 Td (2018 \(remaining\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 590.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 590.32 Td (17,276) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 576.32 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 576.32 Td (22,701) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 562.32 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 562.32 Td (22,121) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 548.32 Td (2021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 548.32 Td (16,678) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 534.32 Td (2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 534.32 Td (15,542) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 520.32 Td (Thereafter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 520.32 Td (88,212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 506.32 Td (T) Tj ET Q q 0 0 0 rg BT 69.91 506.32 Td (otal definite life intangible assets, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 506.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 506.32 Td (182,530) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (\(8\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 478.25 Td (Pr) Tj ET Q q 0 0 0 rg BT 86.87 478.25 Td (operty and Equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 454.25 Td (Property and equipment, net, consists of the following:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 428.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 428.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 428.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 428.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 398.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 398.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 398.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 398.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 368.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 368.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 368.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 368.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 338.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 338.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 338.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 338.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 308.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 308.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 308.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 308.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 278.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 278.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 278.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 278.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 248.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 248.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 248.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 248.75 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 409 428.75 m 484 428.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 428.75 m 563 428.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 428.75 m 484 428.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 428.75 m 563 428.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 278.75 m 484 278.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 278.75 m 563 278.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 248.75 m 484 248.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 248.75 m 563 248.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 248.75 m 484 248.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 234.75 m 484 234.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 232.75 m 484 232.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 248.75 m 563 248.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 234.75 m 563 234.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 232.75 m 563 232.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 433.42 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.50 432.98 Td (Mar) Tj ET Q q 0 0 0 rg BT 434.53 432.98 Td (ch 31, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.75 432.98 Td (December) Tj ET Q q 0 0 0 rg BT 527.25 432.98 Td ( 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 418.42 Td (Satellite system) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 418.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 418.42 Td (1,586,794) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 418.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 418.42 Td (1,586,794) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 403.42 Td (T) Tj ET Q q 0 0 0 rg BT 58.26 403.42 Td (errestrial repeater network) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 403.42 Td (124,620) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 403.42 Td (123,254) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 388.42 Td (Leasehold improvements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 388.42 Td (59,184) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 388.42 Td (57,635) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 373.42 Td (Broadcast studio equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 373.42 Td (100,240) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 373.42 Td (96,582) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 358.42 Td (Capitalized software and hardware) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 358.42 Td (692,594) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 358.42 Td (639,516) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 343.42 Td (Satellite telemetry) Tj ET Q q 0 0 0 rg BT 125.20 343.42 Td (, tracking and control facilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 343.42 Td (71,336) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 343.42 Td (69,147) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 328.42 Td (Furniture, fixtures, equipment and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 328.42 Td (98,052) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 328.42 Td (96,965) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 313.42 Td (Land) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 313.42 Td (38,41) Tj ET Q q 0 0 0 rg BT 475.15 313.42 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 313.42 Td (38,41) Tj ET Q q 0 0 0 rg BT 554.15 313.42 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 298.42 Td (Building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 298.42 Td (61,823) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 298.42 Td (61,824) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 283.42 Td (Construction in progress) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 283.42 Td (306,205) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 283.42 Td (301,153) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 268.42 Td (T) Tj ET Q q 0 0 0 rg BT 70.26 268.42 Td (otal property and equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 268.42 Td (3,139,259) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 268.42 Td (3,071,281) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 253.42 Td (Accumulated depreciation and amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.80 253.47 Td (\(1,674,865) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.15 253.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.80 253.47 Td (\(1,608,515) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 253.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 238.42 Td (Property and equipment, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 238.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 238.42 Td (1,464,394) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 238.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 238.42 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 76.50 210.25 Td (Construction in progress consists of the following:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 184.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 184.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 184.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 184.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 154.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 154.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 154.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 154.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 124.75 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 124.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 124.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 124.75 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 409 184.75 m 484 184.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 184.75 m 563 184.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 184.75 m 484 184.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 184.75 m 563 184.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 124.75 m 484 124.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 124.75 m 563 124.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 124.75 m 484 124.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 110.75 m 484 110.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 108.75 m 484 108.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 124.75 m 563 124.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 110.75 m 563 110.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 108.75 m 563 108.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 189.42 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.50 188.98 Td (Mar) Tj ET Q q 0 0 0 rg BT 434.53 188.98 Td (ch 31, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.75 188.98 Td (December) Tj ET Q q 0 0 0 rg BT 527.25 188.98 Td ( 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 174.42 Td (Satellite system) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 174.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 174.42 Td (206,757) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 174.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 174.42 Td (183,243) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 159.42 Td (T) Tj ET Q q 0 0 0 rg BT 58.26 159.42 Td (errestrial repeater network) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.65 159.42 Td (2,689) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 159.42 Td (2,515) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 144.42 Td (Capitalized software and hardware) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 144.42 Td (78,641) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 144.42 Td (94,456) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 129.42 Td (Other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 129.42 Td (18,1) Tj ET Q q 0 0 0 rg BT 470.15 129.42 Td (18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 129.42 Td (20,939) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 114.42 Td (Construction in progress) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.50 114.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 114.42 Td (306,205) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.50 114.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 114.42 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 86.25 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 86.25 Td ($66,350) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.40 86.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.84 86.25 Td ($65,176) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.34 86.25 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.72 86.25 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.65 86.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 74.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.10 74.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.54 74.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.54 74.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 205.20 74.25 Td (.) Tj ET Q q 0 0 0 rg BT 212.52 74.25 Td (W) Tj ET Q q 0 0 0 rg BT 221.16 74.25 Td (e retired property and equipment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.54 74.25 Td ($13,81) Tj ET Q q 0 0 0 rg BT 392.67 74.25 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.67 74.25 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.50 74.25 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.43 74.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 62.25 Td (March31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.10 62.25 Td (. ) Tj ET Q q 0 0 0 rg BT 120.42 62.25 Td (There were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.16 62.25 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.16 62.25 Td ( retirements of property and equipment during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.33 62.25 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.26 62.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.14 62.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.73 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 77.50 695.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 695.10 Td (e capitalize a portion of the interest on funds borrowed to finance the construction and launch of our satellites and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (launch vehicles. Capitalized interest is recorded as part of the asset) Tj ET Q q 0 0 0 rg BT 319.68 683.10 Td (s cost and depreciated over the satellite) Tj ET Q q 0 0 0 rg BT 479.06 683.10 Td (s useful life. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (Capitalized interest costs were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.90 671.10 Td ($2,254) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.40 671.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.84 671.10 Td ($718) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.84 671.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.21 671.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.15 671.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.03 671.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.62 671.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.06 671.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.06 671.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 508.72 671.10 Td (, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (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 63.50 629.10 Td (Satellites) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 611.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.94 611.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.54 611.10 Td (, we owned a fleet of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.89 611.10 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.44 611.10 Td ( satellites.) Tj ET Q q 0 0 0 rg BT 312.25 611.10 Td (The chart below provides certain information on our satellites ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.16 599.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.76 599.10 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 567.60 355.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 567.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 567.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.00 567.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 567.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 537.60 355.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 537.60 4.00 -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 50.00 507.60 355.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 405.00 507.60 4.00 -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 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 567.6 m 405 567.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 567.6 m 484 567.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 567.6 m 563 567.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 192.45 571.83 Td (Satellite Description) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.70 571.83 Td (Y) Tj ET Q q 0 0 0 rg BT 425.59 571.83 Td (ear) Tj ET Q q 0 0 0 rg BT 436.55 571.83 Td (Deliver) Tj ET Q q 0 0 0 rg BT 463.28 571.83 Td (ed) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 495.20 579.83 Td (Estimated End of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 496.70 571.83 Td (Depr) Tj ET Q q 0 0 0 rg BT 513.88 571.83 Td (eciable Life) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 557.27 Td (SIRIUS FM-5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 557.27 Td (2009) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.50 557.27 Td (2024) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 542.27 Td (SIRIUS FM-6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 542.27 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.50 542.27 Td (2028) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 527.27 Td (XM-3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 527.27 Td (2005) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.50 527.27 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 512.27 Td (XM-4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 512.27 Td (2006) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.50 512.27 Td (2021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 497.27 Td (XM-5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 497.27 Td (2010) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.50 497.27 Td (2025) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 469.10 Td (\(9\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 469.10 Td (Related Party ) Tj ET Q q 0 0 0 rg BT 137.96 469.10 Td (T) Tj ET Q q 0 0 0 rg BT 143.89 469.10 Td (ransactions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 445.10 Td (In the normal course of business, we enter into transactions with related parties. Our related parties are Liberty Media, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 433.10 Td (Sirius XM Canada and Pandora.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 409.10 Td (Liberty Media) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 392.60 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.94 392.60 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.54 392.60 Td (, Liberty Media beneficially owned, directly and indirectly) Tj ET Q q 0 0 0 rg BT 398.53 392.60 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.79 392.60 Td (71%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.12 392.60 Td ( of the outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.60 Td (shares of Holdings' common stock. Liberty Media has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.71 380.60 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.71 380.60 Td ( executives and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.85 380.60 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.29 380.60 Td ( of its directors on Holdings' board of directors. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.60 Td (Gregory B. Maf) Tj ET Q q 0 0 0 rg BT 113.47 368.60 Td (fei, the President and Chief Executive Of) Tj ET Q q 0 0 0 rg BT 277.96 368.60 Td (ficer of Liberty Media, is the Chairman of Holdings) Tj ET Q q 0 0 0 rg BT 487.99 368.60 Td ( board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.60 Td (directors.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 332.60 Td (Sirius XM Holdings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 316.10 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 518.70 316.10 Td (All equity-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 304.10 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 49.50 292.10 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 49.50 280.10 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 49.50 268.10 Td (related party transactions within our unaudited consolidated financial statements. ) Tj ET Q q 0 0 0 rg BT 378.39 268.10 Td (The stock-based compensation for Sirius XM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 256.10 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 525.98 256.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 244.10 Td (Related party long-term assets balance as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.04 244.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.64 244.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.08 244.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.67 244.10 Td ( of Sirius XM includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.27 244.10 Td ($6,893,678) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.27 244.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 232.10 Td ($6,559,927) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 232.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 147.16 232.10 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 76.50 208.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.05 208.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.98 208.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.86 208.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.46 208.10 Td (, we used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.45 208.10 Td ($358,156) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.95 208.10 Td ( of our cash for the purchase and retirement of shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 196.10 Td (of 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 49.50 184.10 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 67.50 160.10 Td (Sirius XM Canada) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 142.10 Td (On May 25, 2017, we completed a recapitalization of Sirius XM Canada \(the T) Tj ET Q q 0 0 0 rg BT 397.44 142.10 Td (ransaction\), which is now a privately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (held corporation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 106.10 Td (Following the ) Tj ET Q q 0 0 0 rg BT 134.65 106.10 Td (T) Tj ET Q q 0 0 0 rg BT 140.41 106.10 Td (ransaction, we hold a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.88 106.10 Td (70%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.21 106.10 Td ( equity interest and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.08 106.10 Td (33%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.41 106.10 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 94.10 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 94.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.10 94.10 Td ( of Sirius XM Canada) Tj ET Q q 0 0 0 rg BT 391.65 94.10 Td (s previous shareholders. ) Tj ET Q q 0 0 0 rg BT 492.83 94.10 Td (The total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 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 82.10 Td (year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.76 82.10 Td ( ended December 31, 2017 was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td ($308,526) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 70.10 Td (, which included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.87 70.10 Td ($129,676) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.37 70.10 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 70.10 Td ($178,850) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.20 70.10 Td ( to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (holders of the shares of Sirius XM Canada acquired in the ) Tj ET Q q 0 0 0 rg BT 283.98 58.10 Td (T) Tj ET Q q 0 0 0 rg BT 289.74 58.10 Td (ransaction. ) Tj ET Q q 0 0 0 rg BT 338.15 58.10 Td (W) Tj ET Q q 0 0 0 rg BT 346.79 58.10 Td (e received common stock, non-voting common stock ) 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 (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 413.59 695.10 Td (590,950) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.09 695.10 Td ( shares of preferred stock of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 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 279.99 683.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.43 683.10 Td ( Canadian dollar per share.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 659.10 Td (In connection with the ) Tj ET Q q 0 0 0 rg BT 168.52 659.10 Td (T) Tj ET Q q 0 0 0 rg BT 174.27 659.10 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 49.50 647.10 Td (aggregate amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.19 647.10 Td ($130,794) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.69 647.10 Td (. ) Tj ET Q q 0 0 0 rg BT 179.01 647.10 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 49.50 635.10 Td (unrealized gains or losses reported within ) Tj ET Q q 0 0 0 rg BT 217.79 635.10 Td (Accumulated other comprehensive \(loss\) income. ) Tj ET Q q 0 0 0 rg BT 421.16 635.10 Td (The loan has a term of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.34 635.10 Td (fifteen ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.60 623.10 Td (, bears interest at a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.10 623.10 Td (7.62%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.93 623.10 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 49.50 611.10 Td (default relating to Sirius XM Canada) Tj ET Q q 0 0 0 rg BT 200.30 611.10 Td (s failure to maintain specified leverage ratios. ) Tj ET Q q 0 0 0 rg BT 387.55 611.10 Td (The terms of the loan require Sirius XM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 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 378.87 599.10 Td (sixty days) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.14 599.10 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 49.50 587.10 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 237.78 587.10 Td (C$10,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.95 587.10 Td ( at the last day of the financial year if all tar) Tj ET Q q 0 0 0 rg BT 451.41 587.10 Td (get dividends have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.10 Td (paid in full. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.43 575.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.36 575.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.24 575.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.84 575.10 Td (, Sirius XM Canada repaid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.26 575.10 Td ($3,242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.76 575.10 Td ( of the principal amount of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (loan.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 539.10 Td (In connection with the ) Tj ET Q q 0 0 0 rg BT 168.52 539.10 Td (T) Tj ET Q q 0 0 0 rg BT 174.27 539.10 Td (ransaction, we also entered into a Services ) Tj ET Q q 0 0 0 rg BT 345.88 539.10 Td (Agreement and an ) Tj ET Q q 0 0 0 rg BT 421.13 539.10 Td (Advisory Services ) Tj ET Q q 0 0 0 rg BT 496.68 539.10 Td (Agreement with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.10 Td (Sirius XM Canada. Each agreement has a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.33 527.10 Td (thirty) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.00 527.10 Td ( year term. Pursuant to the Services ) Tj ET Q q 0 0 0 rg BT 383.85 527.10 Td (Agreement, Sirius XM Canada pays us ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.43 527.10 Td (25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.76 527.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.10 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 343.33 515.10 Td (30%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.66 515.10 Td ( of its gross revenues on a monthly basis ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.10 Td (thereafter) Tj ET Q q 0 0 0 rg BT 87.25 503.10 Td (. Pursuant to the ) Tj ET Q q 0 0 0 rg BT 156.69 503.10 Td (Advisory Services ) Tj ET Q q 0 0 0 rg BT 232.24 503.10 Td (Agreement, Sirius XM Canada pays us ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.82 503.10 Td (5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.15 503.10 Td ( of its gross revenues on a monthly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (basis. ) Tj ET Q q 0 0 0 rg BT 76.82 491.10 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 49.50 479.10 Td (us. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 455.10 Td (Sirius XM Canada is accounted for as an equity method investment, and its results are not consolidated in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 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 49.50 431.10 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 77.50 407.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 407.10 Td (e had the following related party balances associated with Sirius XM Canada:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 381.60 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.00 381.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 381.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 381.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 351.60 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.00 351.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 351.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 351.60 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 408 381.6 m 483 381.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 381.6 m 562 381.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408 381.6 m 483 381.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 418.50 385.83 Td (Mar) Tj ET Q q 0 0 0 rg BT 433.53 385.83 Td (ch 31, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.75 385.83 Td (December) Tj ET Q q 0 0 0 rg BT 526.25 385.83 Td ( 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 371.27 Td (Related party current assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.50 371.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 371.27 Td (12,877) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 371.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 371.27 Td (10,284) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 356.27 Td (Related party long-term assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.50 356.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 356.27 Td (465,948) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 356.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 356.27 Td (481,608) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 341.27 Td (Related party current liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.50 341.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 341.27 Td (3,923) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 341.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 341.27 Td (2,839) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 326.27 Td (Related party long-term liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.50 326.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 326.27 Td (6,742) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 326.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 326.27 Td (7,364) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 298.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.94 298.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.54 298.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.98 298.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.56 298.10 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 49.50 286.10 Td (Services ) Tj ET Q q 0 0 0 rg BT 85.33 286.10 Td (Agreement and ) Tj ET Q q 0 0 0 rg BT 148.64 286.10 Td (Advisory Services ) Tj ET Q q 0 0 0 rg BT 224.18 286.10 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 49.50 274.10 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 338.83 274.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.42 274.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.86 274.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.45 274.10 Td ( included the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 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 313.59 262.10 Td ($332,31) Tj ET Q q 0 0 0 rg BT 345.72 262.10 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.72 262.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.16 262.10 Td ($341,214) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.66 262.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 460.32 262.10 Td (, and, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.42 262.10 Td (March31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 250.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 250.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.52 250.10 Td (, also included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.06 250.10 Td ($133,324) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.56 250.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.00 250.10 Td ($140,073) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.50 250.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 375.16 250.10 Td (, for the long-term value of the outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 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 325.26 238.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.86 238.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.29 238.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.88 238.10 Td ( included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.31 238.10 Td ($2,776) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.81 238.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (for the current portion of deferred revenue and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.30 226.10 Td ($4,394) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.80 226.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.24 226.10 Td ($5,088) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.74 226.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 365.40 226.10 Td (, for the long-term portion of deferred revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (recorded as of the Mer) Tj ET Q q 0 0 0 rg BT 139.83 214.10 Td (ger date related to agreements with legacy XM Canada, now Sirius XM Canada.) Tj ET Q q 0 0 0 rg BT 466.22 214.10 Td (These costs are being ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (amortized on a straight line basis through 2020.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 178.10 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 270.66 178.10 Td ($1,031) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.16 178.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.59 178.10 Td ($3,796) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.09 178.10 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.92 178.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.85 178.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.73 178.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.33 178.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 166.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 122.16 166.10 Td (.Dividends are first recorded as a reduction to our investment balance in Sirius XM Canada to the extent a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (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 49.00 644.60 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.00 644.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 644.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 644.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 614.60 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.00 614.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 614.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 614.60 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 408 657.6 m 483 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 657.6 m 487 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 657.6 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 408 657.6 m 483 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408 644.6 m 483 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 657.6 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 487 644.6 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 408 644.6 m 483 644.6 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 416.20 663.28 Td (For) Tj ET Q q 0 0 0 rg BT 428.57 663.28 Td ( the ) Tj ET Q q 0 0 0 rg BT 443.08 663.28 Td (Thr) Tj ET Q q 0 0 0 rg BT 456.28 663.28 Td (ee Months Ended Mar) Tj ET Q q 0 0 0 rg BT 532.80 663.28 Td (ch 31,) 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 437.00 649.28 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.00 649.28 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 410.50 634.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 634.27 Td (24,097) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 634.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 634.27 Td (12,216) 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 410.50 619.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 619.27 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 410.50 604.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.15 604.27 Td (981) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 604.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 604.27 Td (3,014) 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 410.50 589.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 589.27 Td (2,647) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 589.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 589.27 Td () 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 months) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 273.46 503.50 Td ( ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 299.45 503.50 Td (March31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 356.69 503.50 Td (, Share of net earnings included ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.90 503.50 Td ($623) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 490.90 503.50 Td ( of amortization ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 492.70 Td (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 (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.22 405.10 Td (, the Series ) Tj ET Q q 0 0 0 rg BT 451.32 405.10 Td (A) Tj ET Q q 0 0 0 rg BT 457.99 405.10 Td ( Preferred Stock, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 393.10 Td (including accrued but unpaid dividends, represents a stake of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.35 393.10 Td (19%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.68 393.10 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 (16%) 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 ($18,21) Tj ET Q q 0 0 0 rg BT 128.85 225.10 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.85 225.10 Td (, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.90 225.10 Td ($498,21) Tj ET Q q 0 0 0 rg BT 189.03 225.10 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.03 225.10 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.19 225.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.79 225.10 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 (A) Tj ET Q q 0 0 0 rg BT 381.92 117.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.42 117.10 Td ($31,375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.92 117.10 Td ( unrealized gain was recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 105.10 Td (during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.83 105.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.76 105.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.64 105.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.23 105.10 Td ( as Other income in our unaudited consolidated statements of comprehensive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 93.10 Td (income associated with this investment. ) Tj ET Q q 0 0 0 rg BT 213.46 93.10 Td (The fair value of our investment, including accrued dividends, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.98 93.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.58 93.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 81.10 Td (was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.55 81.10 Td ($51) Tj ET Q q 0 0 0 rg BT 82.18 81.10 Td (1,847) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.68 81.10 Td ( and is recorded as a related party long-term asset within our unaudited consolidated balance sheets. ) Tj ET Q q 0 0 0 rg BT 508.81 81.10 Td (This ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 69.10 Td (investment does not meet the requirements for the equity method of accounting as it does not qualify as in-substance common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 57.10 Td (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 (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.53 671.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.97 671.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.55 671.25 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 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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 359.65 619.98 Td (at Mar) Tj ET Q q 0 0 0 rg BT 383.34 619.98 Td (ch 31, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 431.50 619.98 Td (Mar) Tj ET Q q 0 0 0 rg BT 446.53 619.98 Td (ch 31, 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 147.50 599.70 Td (\(the "3.875% Notes"\)) 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 389.80 607.70 Td (1,000,000) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 458.80 607.70 Td (992,409) 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 147.50 570.70 Td (\(the "4.625% Notes"\)) 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 (496,784) 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 147.50 541.70 Td (\(the "6.00% Notes"\)) 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 (1,488,377) 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 147.50 512.70 Td (\(the "5.375% Notes) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 147.50 504.70 Td (due 2025"\)) 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 (991,529) 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 147.50 483.70 Td (\(the "5.375% Notes) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 147.50 475.70 Td (due 2026"\)) 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 (990,366) 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 147.50 454.70 Td (\(the "5.00% Notes"\)) 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 (1,486,443) 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 16, 2020) 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 458.80 433.70 Td (365,000) 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 (9,684) 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 (6,820,592) 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 (4,91) Tj ET Q q 0 0 0 rg BT 480.80 370.70 Td (1) 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 (8,233) 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 ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 452.75 344.70 Td (6,807,448) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.50 344.70 Td ($) 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 (Our obligations under the Credit Facility are guaranteed by certain of our material domestic subsidiaries and are secured by a lien on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 291.05 Td (substantially all of our assets and the assets of our material domestic subsidiaries.Interest on borrowings is payable on a monthly ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 280.25 Td (basis and accrues at a rate based on LIBOR plus an applicable rate.) Tj ET Q q 0 0 0 rg BT 322.49 280.25 Td (W) Tj ET Q q 0 0 0 rg BT 330.27 280.25 Td (e are also required to pay a variable fee on the average daily ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 269.45 Td (unused portion of the Credit Facility which is payable on a quarterly basis.) Tj ET Q q 0 0 0 rg BT 349.53 269.45 Td (The variable rate for the 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 was ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 122.49 258.65 Td (0.25%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 145.74 258.65 Td ( per annum as of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 207.97 258.65 Td (March31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 265.21 258.65 Td (. Our outstanding borrowings under the Credit Facility are classified as Long-) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 247.85 Td (term debt within our unaudited 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 63.50 223.85 Td (Covenants and Restrictions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 205.85 Td (Under the Credit Facility) Tj ET Q q 0 0 0 rg BT 177.10 205.85 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 49.50 193.85 Td (calculated as consolidated total debt to consolidated operating cash flow) Tj ET Q q 0 0 0 rg BT 337.92 193.85 Td (, of 5.0 to 1.0.) Tj ET Q q 0 0 0 rg BT 398.85 193.85 Td (The Credit Facility generally requires ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 181.85 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 49.50 169.85 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 49.50 157.85 Td (transactions with af) Tj ET Q q 0 0 0 rg BT 127.63 157.85 Td (filiates, \(v\)mer) Tj ET Q q 0 0 0 rg BT 189.37 157.85 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 49.50 145.85 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 77.50 121.85 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 49.50 109.85 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 97.85 Td (basis.) Tj ET Q q 0 0 0 rg BT 76.82 97.85 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 85.85 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 85.85 Td (ge or consolidate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 61.85 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 49.85 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 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 49.50 695.10 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 49.50 683.10 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 49.50 671.10 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 77.50 647.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 647.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.60 647.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.04 647.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.62 647.10 Td (, we were in compliance with our debt covenants.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (\(1) Tj ET Q q 0 0 0 rg BT 57.28 623.10 Td (1\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 623.10 Td (Stockholder) Tj ET Q q 0 0 0 rg BT 127.99 623.10 Td ( Equity) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.00 605.10 Td (Common Stock, par value ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 172.17 605.10 Td ($0.001) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 199.67 605.10 Td ( per share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 587.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 587.10 Td (e are authorized to issue up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.04 587.10 Td (9,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.04 587.10 Td ( shares of common stock. ) Tj ET Q q 0 0 0 rg BT 353.41 587.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.86 587.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.46 587.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.89 587.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.89 587.10 Td (, there were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.31 587.10 Td (one ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.10 Td (thousand) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.61 575.10 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 63.00 551.10 Td (Preferred Stock, par value ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 173.82 551.10 Td ($0.001) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 201.32 551.10 Td ( per share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 533.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 533.10 Td (e are authorized to issue up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.04 533.10 Td (50,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.54 533.10 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 521.93 533.10 Td ($0.001) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.43 533.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 521.10 Td (per share. ) Tj ET Q q 0 0 0 rg BT 93.19 521.10 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 363.65 521.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.25 521.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.69 521.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.69 521.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 497.10 Td (\(12\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 497.10 Td (Benefit Plans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 479.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 479.10 Td (e recognized share-based payment expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.61 479.10 Td ($34,233) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.11 479.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.54 479.10 Td ($29,446) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.04 479.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.42 479.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.36 479.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.23 479.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.83 479.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 467.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 122.16 467.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 437.10 Td (2015 Long-T) Tj ET Q q 0 0 0 rg BT 120.19 437.10 Td (erm Stock Incentive Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 419.10 Td (In May 2015, Holdings' stockholders approved the Sirius XM Holdings Inc. 2015 Long-T) Tj ET Q q 0 0 0 rg BT 436.34 419.10 Td (erm Stock Incentive Plan \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (2015 Plan\).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 49.50 395.10 Td (2015 Plan.) Tj ET Q q 0 0 0 rg BT 97.10 395.10 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 49.50 383.10 Td (based awards that the compensation committee of Holdings' board of directors deem appropriate.Stock-based awards granted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 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 424.93 371.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.92 371.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.69 371.10 Td (four years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.95 371.10 Td ( from the grant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (date.Stock options generally expire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.07 359.10 Td (ten years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.88 359.10 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 49.50 347.10 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 49.50 335.10 Td (continued employment and generally clif) Tj ET Q q 0 0 0 rg BT 213.71 335.10 Td (f vest on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.36 335.10 Td (third) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.25 335.10 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 49.50 323.10 Td (holder to receive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.19 323.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.63 323.10 Td ( share of common stock upon vesting.) Tj ET Q q 0 0 0 rg BT 289.99 323.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.44 323.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.04 323.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.04 323.10 Td (165,795) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.54 323.10 Td ( shares of common stock were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.10 Td (available for future grants under the 2015 Plan.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 281.10 Td (Other Plans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 263.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 263.10 Td (e maintain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.57 263.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.55 263.10 Td ( other share-based benefit plans the Sirius XM Radio Inc. 2009 Long-T) Tj ET Q q 0 0 0 rg BT 446.84 263.10 Td (erm Stock Incentive Plan, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.10 Td (the XM 2007 Stock Incentive Plan and the ) Tj ET Q q 0 0 0 rg BT 221.69 251.10 Td (Amended and Restated Sirius Satellite Radio 2003 Long-T) Tj ET Q q 0 0 0 rg BT 456.79 251.10 Td (erm Stock Incentive Plan. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.10 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 49.50 227.10 Td (plans.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 203.10 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 49.50 191.10 Td (employees:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 146.60 381.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.00 146.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 146.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 146.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 116.60 381.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.00 116.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 116.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 116.60 64.00 -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 430 159.60000000000002 m 494 159.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 159.60000000000002 m 498 159.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 159.60000000000002 m 562 159.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430 146.60000000000002 m 494 146.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 146.60000000000002 m 562 146.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430 146.60000000000002 m 494 146.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 146.60000000000002 m 562 146.60000000000002 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 163.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.20 171.83 Td (For) Tj ET Q q 0 0 0 rg BT 445.57 171.83 Td ( the ) Tj ET Q q 0 0 0 rg BT 460.08 171.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 473.28 171.83 Td (ee Months Ended Mar) Tj ET Q q 0 0 0 rg BT 549.80 171.83 Td (ch) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 490.50 163.83 Td (31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 51.50 150.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.50 150.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.50 150.83 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 137.17 Td (Risk-free interest rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.05 136.27 Td (2.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.05 136.27 Td (1.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 122.17 Td (Expected life of options years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.75 121.27 Td (3.57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.75 121.27 Td (3.71) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 107.17 Td (Expected stock price volatility) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.30 106.27 Td (21%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.30 106.27 Td (26%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 92.17 Td (Expected dividend yield) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.05 91.27 Td (0.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.05 91.27 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 69.10 Td (There were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.24 69.10 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.24 69.10 Td ( options granted to Holdings' board of directors or third parties during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.71 69.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.64 69.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.52 69.10 Td (March31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 57.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 57.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 57.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 57.10 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 (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.64 671.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.10 659.10 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 593.27 Td (3.76) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 579.17 Td (Granted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.65 578.27 Td (6,972) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.50 578.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 578.27 Td (6.12) 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 (\(19,088) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.15 563.27 Td (\)) 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 (3.20) 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 345.80 548.32 Td (\(487) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.15 548.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.50 548.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 548.27 Td (4.68) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 534.17 Td (Outstanding as of March 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.65 533.27 Td (267,854) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.50 533.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 533.27 Td (3.86) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.00 533.27 Td (6.53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 533.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 533.27 Td (638,150) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 519.17 Td (Exercisable as of March 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.65 518.27 Td (1) Tj ET Q q 0 0 0 rg BT 336.65 518.27 Td (13,849) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.50 518.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 518.27 Td (3.24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.00 518.27 Td (5.17) 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 (341,025) 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 (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.02 496.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 496.10 Td (March31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 484.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 484.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.05 484.10 Td ($1.10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.55 484.10 Td (.) Tj ET Q q 0 0 0 rg BT 119.87 484.10 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 367.59 484.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.52 484.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.40 484.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.00 484.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.43 484.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.43 484.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 472.10 Td (was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.55 472.10 Td ($55,205) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.05 472.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.49 472.10 Td ($34,662) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.99 472.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 204.65 472.10 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 ($19,659) 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 ($19,512) 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 (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.48 436.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.91 436.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.91 436.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 231.58 436.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 412.10 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 49.50 400.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.43 400.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.31 400.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.91 400.10 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 48.00 360.60 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.00 360.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.00 360.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 360.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 48.00 330.60 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.00 330.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.00 330.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 330.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 48.00 300.60 359.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.00 300.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.00 300.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 300.60 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 407 360.6 m 482 360.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 360.6 m 561 360.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 360.6 m 482 360.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 300.6 m 482 300.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 286.6 m 482 286.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 284.6 m 482 284.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 365.27 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.50 364.83 Td (Shar) Tj ET Q q 0 0 0 rg BT 448.80 364.83 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.55 380.83 Td (Grant Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 505.15 372.83 Td (Fair) Tj ET Q q 0 0 0 rg BT 519.67 372.83 Td ( ) Tj ET Q q 0 0 0 rg BT 521.52 372.83 Td (V) Tj ET Q q 0 0 0 rg BT 526.56 372.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 506.15 364.83 Td (Per) Tj ET Q q 0 0 0 rg BT 517.99 364.83 Td ( Shar) Tj ET Q q 0 0 0 rg BT 536.30 364.83 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.50 350.27 Td (Nonvested as of December 31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.65 350.27 Td (31,323) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.50 350.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 350.27 Td (4.54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.50 335.27 Td (Granted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.65 335.27 Td (5,049) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.50 335.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 335.27 Td (6.02) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.50 320.27 Td (V) Tj ET Q q 0 0 0 rg BT 75.17 320.27 Td (ested) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.80 320.32 Td (\(150) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.15 320.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.50 320.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 320.27 Td (3.98) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.50 305.27 Td (Forfeited) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.80 305.32 Td (\(148) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.15 305.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.50 305.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 305.27 Td (4.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.50 290.27 Td (Nonvested as of March 31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.65 290.27 Td (36,074) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.50 290.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 290.27 Td (4.75) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 268.10 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 422.73 268.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.66 268.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.54 268.10 Td (March31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 256.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 256.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 256.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 256.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.49 256.10 Td ($925) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.49 256.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.93 256.10 Td ($1,745) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.43 256.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 249.09 256.10 Td (. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.14 256.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.07 256.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.95 256.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.55 256.10 Td (, we granted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.19 256.10 Td (2,499) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.69 256.10 Td ( PRSUs to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 244.10 Td (certain employees. ) Tj ET Q q 0 0 0 rg BT 129.29 244.10 Td (W) Tj ET Q q 0 0 0 rg BT 137.92 244.10 Td (e believe it is probable that the performance tar) Tj ET Q q 0 0 0 rg BT 326.55 244.10 Td (get applicable to these PRSUs will be achieved.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 220.10 Td (In connection with the cash dividend paid during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.50 220.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.44 220.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.31 220.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.91 220.10 Td (, we granted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.56 220.10 Td (69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.56 220.10 Td ( restricted stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 208.10 Td (units, including PRSUs, in accordance with the terms of existing award agreements. ) Tj ET Q q 0 0 0 rg BT 387.85 208.10 Td (These grants did not result in any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 196.10 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 377.43 196.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.36 196.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.24 196.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.84 196.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 172.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 172.10 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 497.42 172.10 Td ($14,574) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.92 172.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 160.10 Td ($9,934) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 160.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.38 160.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.31 160.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.19 160.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.79 160.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.22 160.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.22 160.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 344.89 160.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 136.10 Td (T) Tj ET Q q 0 0 0 rg BT 82.91 136.10 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 49.50 124.10 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 504.00 124.10 Td (March31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 112.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 112.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 112.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.52 112.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.07 112.10 Td ($259,076) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.57 112.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.01 112.10 Td ($241,521) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.51 112.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 335.17 112.10 Td (.) Tj ET Q q 0 0 0 rg BT 342.49 112.10 Td (The total unrecognized compensation costs at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 100.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.10 100.10 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 376.57 100.10 Td (2.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.07 100.10 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 ($1,869) 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 ($1,682) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.30 581.25 Td ( in expense during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.11 581.25 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.04 581.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.92 581.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.52 581.25 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.46 581.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.46 581.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 500.12 581.25 Td (, in connection ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.25 Td (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 (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.05 437.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.49 437.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.49 437.25 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.92 437.25 Td ($6,831) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.42 437.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 425.25 Td ($7,021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 425.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 129.66 425.25 Td (. ) Tj ET Q q 0 0 0 rg BT 136.61 425.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.05 425.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.65 425.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.09 425.25 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.67 425.25 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 49.50 413.25 Td ($21,672) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 413.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.44 413.25 Td ($14,641) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.94 413.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 186.60 413.25 Td (, which is included in Other long-term assets in our unaudited consolidated balance sheets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.25 Td (and are classified as trading securities. ) Tj ET Q q 0 0 0 rg BT 208.15 401.25 Td (T) Tj ET Q q 0 0 0 rg BT 213.90 401.25 Td (rading gains and losses associated with these investments are recorded in Other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.25 Td (income within our unaudited consolidated statements of comprehensive income. ) Tj ET Q q 0 0 0 rg BT 375.62 389.25 Td (The associated liability is recorded within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.25 Td (Other long-term liabilities in our unaudited consolidated balance sheets, and any increase or decrease in the liability is recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.25 Td (in General and administration expense within our unaudited consolidated statements of comprehensive income. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.32 365.25 Td (three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.25 Td (months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.95 353.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 353.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.42 353.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.86 353.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.86 353.25 Td (, we recorded an immaterial amount of unrealized losses and gains, respectively) Tj ET Q q 0 0 0 rg BT 529.82 353.25 Td (, on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.25 Td (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 (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.38 299.25 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 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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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.65 267.32 Td (3,810) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.50 267.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.65 267.32 Td (3,938) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.50 267.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.60 267.32 Td (366,208) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.50 267.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.15 267.32 Td (728) 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 (6,874,684) 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 (218,042) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.60 253.32 Td (350,883) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.60 253.32 Td (343,499) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.60 253.32 Td (334,381) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.60 253.32 Td (334,375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.60 253.32 Td (915,938) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.10 253.32 Td (2,497,1) Tj ET Q q 0 0 0 rg BT 549.10 253.32 Td (18) 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 183.60 239.32 Td (100,797) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.65 239.32 Td (94,898) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.65 239.32 Td (51,034) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 239.32 Td (4,325) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 239.32 Td (2,416) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 239.32 Td (4,287) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 239.32 Td (257,757) 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 (233,954) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.60 225.32 Td (31) Tj ET Q q 0 0 0 rg BT 250.60 225.32 Td (1,250) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.60 225.32 Td (262,417) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.60 225.32 Td (177,665) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.65 225.32 Td (51,975) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.60 225.32 Td (162,438) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.10 225.32 Td (1,199,699) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 211.32 Td (Marketing and distribution) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.65 211.32 Td (16,264) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.65 211.32 Td (13,892) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.65 211.32 Td (8,827) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 211.32 Td (7,801) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 211.32 Td (1,608) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.15 211.32 Td (188) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 211.32 Td (48,580) 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 188.65 197.32 Td (10,824) 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 (1) Tj ET Q q 0 0 0 rg BT 531.65 197.32 Td (10,572) 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 (30,162) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.65 183.32 Td (42,668) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.65 183.32 Td (40,424) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.65 183.32 Td (34,612) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.65 183.32 Td (30,619) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.60 183.32 Td (127,404) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 183.32 Td (305,889) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 169.32 Td (Other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.65 169.32 Td (35,981) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.65 169.32 Td (31,216) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.65 169.32 Td (12,625) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 169.32 Td (1,987) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.15 169.32 Td (51) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 169.32 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 169.32 Td (81,880) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.60 155.32 Td (649,834) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.50 155.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.60 155.32 Td (859,397) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.50 155.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.10 155.32 Td (1,095,231) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.50 155.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.60 155.32 Td (570,073) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.50 155.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.10 155.32 Td (1,429,602) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.50 155.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.10 155.32 Td (6,772,042) 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 (1,376,179) 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 (March31, 2018) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 405.15 134.45 Td ( totaled ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 434.14 134.45 Td ($13,832) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 463.39 134.45 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 agreements. Under the terms of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (agreements, our obligations include fixed payments, advertising commitments and revenue sharing arrangements. Our future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (revenue sharing costs are dependent upon many factors and are dif) Tj ET Q q 0 0 0 rg BT 315.88 623.10 Td (ficult to estimate; therefore, they are not included in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (minimum contractual cash commitments.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 587.10 Td (Marketing and distribution.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.33 587.10 Td (W) Tj ET Q q 0 0 0 rg BT 206.97 587.10 Td (e have entered into various marketing, sponsorship and distribution agreements to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.10 Td (promote our brand and are obligated to make payments to sponsors, retailers, automakers and radio manufacturers under these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (agreements. Certain programming and content agreements also require us to purchase advertising on properties owned or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (controlled by the licensors. ) Tj ET Q q 0 0 0 rg BT 160.13 551.10 Td (W) Tj ET Q q 0 0 0 rg BT 168.76 551.10 Td (e also reimburse automakers for certain costs associated with the incorporation of satellite radios ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (into new vehicles they manufacture.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 515.10 Td (Satellite incentive payments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.63 515.10 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 49.50 503.10 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 504.37 503.10 Td (fifteen) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.46 503.10 Td (-year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (design life, which we expect to occur) Tj ET Q q 0 0 0 rg BT 198.06 491.10 Td (.Boeing may also be entitled to up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.76 491.10 Td ($10,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.26 491.10 Td ( of additional incentive payments if our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 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 355.52 479.10 Td (five years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.66 479.10 Td ( beyond the satellite) Tj ET Q q 0 0 0 rg BT 477.69 479.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.08 479.10 Td (fifteen) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.18 479.10 Td (-year design ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (life.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 443.10 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 49.50 431.10 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 372.53 431.10 Td (fifteen) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.63 431.10 Td (-year design life, which we expect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (occur) Tj ET Q q 0 0 0 rg BT 71.16 419.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 395.10 Td (Operating lease obligations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.66 395.10 Td (W) Tj ET Q q 0 0 0 rg BT 210.30 395.10 Td (e have entered into both cancelable and non-cancelable operating leases for of) Tj ET Q q 0 0 0 rg BT 522.47 395.10 Td (fice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (space, equipment and terrestrial repeaters. ) Tj ET Q q 0 0 0 rg BT 220.07 383.10 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 49.50 371.10 Td (char) Tj ET Q q 0 0 0 rg BT 66.53 371.10 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 410.59 371.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.03 371.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.81 371.10 Td (fifteen years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.50 371.10 Td (, and certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (leases have options to renew) Tj ET Q q 0 0 0 rg BT 163.26 359.10 Td (. ) Tj ET Q q 0 0 0 rg BT 168.08 359.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 193.71 359.10 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 49.50 347.10 Td (the lease term, including reasonably assured renewal periods.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 323.10 Td (Other) Tj ET Q q 0 0 0 rg BT 99.72 323.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.22 323.10 Td (W) Tj ET Q q 0 0 0 rg BT 120.86 323.10 Td (e have entered into various agreements with third parties for general operating purposes. In addition to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.10 Td (minimum contractual cash commitments described above, we have entered into agreements with other variable cost ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.10 Td (arrangements. ) Tj ET Q q 0 0 0 rg BT 108.18 299.10 Td (These future costs are dependent upon many factors and are dif) Tj ET Q q 0 0 0 rg BT 361.23 299.10 Td (ficult to anticipate; however) Tj ET Q q 0 0 0 rg BT 473.29 299.10 Td (, these costs may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.10 Td (substantial. ) Tj ET Q q 0 0 0 rg BT 97.09 287.10 Td (W) Tj ET Q q 0 0 0 rg BT 105.73 287.10 Td (e may enter into additional programming, distribution, marketing and other agreements that contain similar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.10 Td (variable cost provisions.) Tj ET Q q 0 0 0 rg BT 151.80 275.10 Td (The cost of Holdings' common stock acquired in Holdings' capital return program but not paid for as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.10 Td (of) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 57.83 263.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 263.10 Td (March31, 2018) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 123.93 263.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.43 263.10 Td (was) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 141.98 263.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.48 263.10 Td (also) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 160.59 263.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.09 263.10 Td (included in this category) Tj ET Q q 0 0 0 rg BT 261.02 263.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 239.10 Td (In addition to the expected contractual cash commitments above, we also have a surety bond of approximately $45,000 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.10 Td (primarily used as security against non-performance in the normal course of business. ) Tj ET Q q 0 0 0 rg BT 391.17 227.10 Td (W) Tj ET Q q 0 0 0 rg BT 399.80 227.10 Td (e do not have any other significant of) Tj ET Q q 0 0 0 rg BT 548.74 227.10 Td (f-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.10 Td (balance sheet financing arrangements that are reasonably likely to have a material ef) Tj ET Q q 0 0 0 rg BT 386.94 215.10 Td (fect on our financial condition, results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td (operations, liquidity) Tj ET Q q 0 0 0 rg BT 129.40 203.10 Td (, capital expenditures or capital resources.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.50 173.10 Td (Legal Proceedings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 155.10 Td (In the ordinary course of business, we are a defendant or party to various claims and lawsuits, including the following ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.10 Td (discussed below) Tj ET Q q 0 0 0 rg BT 114.12 143.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 119.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 119.10 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 49.50 107.10 Td (be reasonably estimated. ) Tj ET Q q 0 0 0 rg BT 150.39 107.10 Td (W) Tj ET Q q 0 0 0 rg BT 159.03 107.10 Td (e evaluate developments in legal matters that could af) Tj ET Q q 0 0 0 rg BT 373.77 107.10 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 95.10 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 83.10 Td (the estimated amount of a loss or potential loss.) Tj ET Q q 0 0 0 rg BT 244.56 83.10 Td (W) Tj ET Q q 0 0 0 rg BT 253.20 83.10 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 71.10 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 59.10 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 47.10 Td (proceedings \(including motions and appeals\); \(iv\)there is uncertainty as to the likelihood of settlement and the outcome of any ) Tj ET Q 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 (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 49.50 683.10 Td (unsettled; or \(vii\) the proceedings involve novel or untested legal theories.In such instances, there may be considerable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (uncertainty regarding the ultimate resolution of such matters, including a possible eventual loss, if any) Tj ET Q q 0 0 0 rg BT 458.19 671.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 76.50 647.10 Td (SoundExchange Royalty Claims) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.81 647.10 Td (. In ) Tj ET Q q 0 0 0 rg BT 222.58 647.10 Td (August 2013, SoundExchange, Inc. filed a complaint in the United States District ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (Court for the District of Columbia \(SoundExchange I\) alleging that we underpaid royalties for statutory licenses in violation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (of the regulations established by the Copyright Royalty Board for the 2007-2012 period. SoundExchange principally alleges ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (that we improperly reduced our gross revenues subject to royalties by deducting revenue attributable to pre-1972 recordings and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (Premier package revenue that was not separately char) Tj ET Q q 0 0 0 rg BT 268.38 599.10 Td (ged as required by the regulations. ) Tj ET Q q 0 0 0 rg BT 415.37 599.10 Td (W) Tj ET Q q 0 0 0 rg BT 424.01 599.10 Td (e believe that we properly applied ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (the gross revenue exclusions contained in the regulations established by the Copyright Royalty Board. SoundExchange is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.10 Td (seeking compensatory damages of not less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.95 575.10 Td ($50,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.45 575.10 Td ( and up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.67 575.10 Td ($100,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.17 575.10 Td ( or more, payment of late fees and interest, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (attorneys) Tj ET Q q 0 0 0 rg BT 88.74 563.10 Td ( fees and costs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 539.10 Td (In ) Tj ET Q q 0 0 0 rg BT 86.78 539.10 Td (August 2014, the United States District Court for the District of Columbia, in response to our motion to dismiss the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.10 Td (complaint, stayed the case on the grounds that it properly should be pursued in the first instance before the Copyright Royalty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.10 Td (Board rather than the District Court.In its opinion, the District Court concluded that the gross revenue exclusions in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.10 Td (regulations established by the Copyright Royalty Board for the 2007-2012 period were ambiguous and did not, on their face, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (make clear whether our royalty calculation approaches were permissible under the regulations. In December 2014, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (SoundExchange filed a petition with the Copyright Royalty Board requesting an order interpreting the applicable regulations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 455.10 Td (On September 1) Tj ET Q q 0 0 0 rg BT 141.11 455.10 Td (1, 2017, the Copyright Royalty Board issued a ruling concluding that we correctly interpreted the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (revenue exclusions applicable to pre-1972 recordings. Given the limitations on its jurisdiction, the Copyright Royalty Board ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (deferred to further proceedings in the District Court the question of whether we properly applied those pre-1972 revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (exclusions when calculating our royalty payments. ) Tj ET Q q 0 0 0 rg BT 257.04 419.10 Td (The Judges also concluded that we improperly claimed a revenue exclusion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (based on our Premier package upchar) Tj ET Q q 0 0 0 rg BT 199.53 407.10 Td (ge, because, in the Judges) Tj ET Q q 0 0 0 rg BT 305.42 407.10 Td ( view) Tj ET Q q 0 0 0 rg BT 326.71 407.10 Td (, the portion of the package that contained programming ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (that did not include sound recordings was not of) Tj ET Q q 0 0 0 rg BT 242.06 395.10 Td (fered for a separate char) Tj ET Q q 0 0 0 rg BT 342.92 395.10 Td (ge. ) Tj ET Q q 0 0 0 rg BT 364.11 395.10 Td (W) Tj ET Q q 0 0 0 rg BT 372.75 395.10 Td (e have filed a notice of appeal of this ruling to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (the United States Court of ) Tj ET Q q 0 0 0 rg BT 155.88 383.10 Td (Appeals for the District of Columbia Circuit. ) Tj ET Q q 0 0 0 rg BT 340.38 383.10 Td (W) Tj ET Q q 0 0 0 rg BT 349.02 383.10 Td (e expect that the ruling by the Copyright Royalty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (Board in this matter will be transmitted back to the District Court for further proceedings, such as adjudication of claims ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (relating to damages and defenses, although those proceedings may be delayed pending the appeal of the Judges) Tj ET Q q 0 0 0 rg BT 497.22 359.10 Td ( interpretive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.10 Td (decision. ) Tj ET Q q 0 0 0 rg BT 90.14 347.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.78 347.10 Td (e believe we have substantial defenses to SoundExchange claims that can be asserted in the District Court, and will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 335.10 Td (continue to defend this action vigorously) Tj ET Q q 0 0 0 rg BT 212.43 335.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 311.10 Td (This matter is captioned ) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 175.3623046875 309.7669921875 m 361.0751953125 309.7669921875 l s q 0 0 0 rg BT 175.36 311.10 Td (SoundExchange, Inc. v) Tj ET Q q 0 0 0 rg BT 267.47 311.10 Td (. Sirius XM Radio, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.08 311.10 Td (, No.13-cv-1290-RJL) Tj ET Q q 0 0 0 rg BT 446.52 311.10 Td ( \(D.D.C.\); the Copyright ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.10 Td (Royalty Board referral was adjudicated under the caption ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 281.08 299.10 Td (Determination of Rates and T) Tj ET Q q 0 0 0 rg BT 399.04 299.10 Td (erms for Pr) Tj ET Q q 0 0 0 rg BT 444.78 299.10 Td (eexisting Subscription ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 287.10 Td (Services and Satellite Digital ) Tj ET Q q 0 0 0 rg BT 168.74 287.10 Td (Audio Radio Services,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.33 287.10 Td ( United States Copyright Royalty Board, No. 2006-1 CRB ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.10 Td (DSTRA.Information concerning SoundExchange I is publicly available in filings under the docket numbers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 251.10 Td (On December 12, 2017, SoundExchange filed second action against us under the Copyright ) Tj ET Q q 0 0 0 rg BT 454.03 251.10 Td (Act in the United States ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.10 Td (District Court for the District of Columbia \(SoundExchange II\). ) Tj ET Q q 0 0 0 rg BT 318.42 239.10 Td (This action includes claims that SoundExchange has also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.10 Td (attempted to add to the SoundExchange I litigation through a proposed amended complaint. SoundExchange alleges that we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.10 Td (have systematically underpaid it for our statutory license by impermissible understating our gross revenues, as defined in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td (applicable regulations and, in certain cases, understating the performances of recordings on our internet radio service. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.10 Td (Specifically) Tj ET Q q 0 0 0 rg BT 96.61 191.10 Td (, the complaint in SoundExchange II alleges that: from at least 2013 through the present, we improperly excluded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.10 Td (from gross revenues a portion of our revenues received from our Premier and ) Tj ET Q q 0 0 0 rg BT 360.78 179.10 Td (All ) Tj ET Q q 0 0 0 rg BT 375.51 179.10 Td (Access packages attributable to premium ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.10 Td (channels; at least between 2010 and 2012, we improperly excluded late fees received from subscribers from the calculation of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.10 Td (gross revenues; at least between 2010 and 2012, we improperly excluded certain credits, adjustments and bad debt for which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.10 Td (the underlying revenues had never been included in the first instance; at least between 2010 and 2012, we improperly deducted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (from gross revenues certain transaction fees and other expenses - for instance, credit card processing fees, collection fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.10 Td (sales and use taxes - that are purportedly not permitted by the Copyright Royalty Board regulations; at least between 2010 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.10 Td (2012, we improperly deducted amounts attributable to performances of recordings claimed to be directly licensed on both our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.10 Td (satellite radio and internet radio services, even though they were not; at least between 2010 and 2012, we improperly excluded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 83.10 Td (from royalty calculations performances of recordings less than thirty seconds long under the provisions of the Copyright ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 71.10 Td (Royalty Board regulations and the ) Tj ET Q q 0 0 0 rg BT 189.01 71.10 Td (W) Tj ET Q q 0 0 0 rg BT 197.65 71.10 Td (ebcaster Settlement ) Tj ET Q q 0 0 0 rg BT 277.62 71.10 Td (Agreement; from 2010 through 2012, we excluded from royalty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 59.10 Td (calculations performances of songs on our internet radio services that we claimed we were unable to identify; we owe ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 47.10 Td (associated late fees for the previously identified underpayments under the applicable Copyright Royalty Board regulations; and ) 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 /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 (26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (we have underpaid SoundExchange by an amount exceeding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.97 695.10 Td (10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.30 695.10 Td ( of the royalty payment and we are therefore obligated to pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (the reasonable costs of an audit. ) Tj ET Q q 0 0 0 rg BT 182.05 683.10 Td (W) Tj ET Q q 0 0 0 rg BT 190.69 683.10 Td (e believe that we properly applied in all material respects the regulations established by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (Copyright Royalty Board. SoundExchange is seeking compensatory damages in an amount to be determined at trial from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (alleged underpayments, unspecified late fees and penalties pursuant to the Copyright Royalty Board) Tj ET Q q 0 0 0 rg BT 452.44 659.10 Td (s regulations and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 647.10 Td (ebcaster Settlement ) Tj ET Q q 0 0 0 rg BT 138.11 647.10 Td (Agreement and costs, including reasonable attorney fees and expenses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 623.10 Td (This matter is titled ) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 157.0419921875 621.7669921875 m 342.7548828125 621.7669921875 l s q 0 0 0 rg BT 157.04 623.10 Td (SoundExchange, Inc. v) Tj ET Q q 0 0 0 rg BT 249.15 623.10 Td (. Sirius XM Radio, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.75 623.10 Td (, No.17-cv-02666-RJL) Tj ET Q q 0 0 0 rg BT 433.20 623.10 Td ( \(D.D.C.\).Information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (concerning SoundExchange II is publicly available in filings under the docket number) Tj ET Q q 0 0 0 rg BT 393.57 611.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 587.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.94 587.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.54 587.10 Td (, we concluded a loss, in excess of our recorded liabilities, was considered remote in connection ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.10 Td (with SoundExchange I or SoundExchange II. ) Tj ET Q q 0 0 0 rg BT 235.39 575.10 Td (The assumptions underlying our conclusions may change from time to time and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (the actual loss may vary from the amounts recorded.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 76.50 539.10 Td (T) Tj ET Q q 0 0 0 rg BT 81.14 539.10 Td (elephone Consumer Pr) Tj ET Q q 0 0 0 rg BT 172.98 539.10 Td (otection ) Tj ET Q q 0 0 0 rg BT 207.51 539.10 Td (Act Suits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.78 539.10 Td (. On March 13, 2017, ) Tj ET Q q 0 0 0 rg BT 333.42 539.10 Td (Thomas Buchanan, individually and on behalf of all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.10 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 49.50 515.10 Td (T) Tj ET Q q 0 0 0 rg BT 54.91 515.10 Td (exas, Dallas Division. ) Tj ET Q q 0 0 0 rg BT 147.49 515.10 Td (The plaintif) Tj ET Q q 0 0 0 rg BT 194.24 515.10 Td (f in this action alleges that we violated the ) Tj ET Q q 0 0 0 rg BT 365.40 515.10 Td (T) Tj ET Q q 0 0 0 rg BT 370.81 515.10 Td (elephone Consumer Protection ) Tj ET Q q 0 0 0 rg BT 496.06 515.10 Td (Act of 1991 \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.10 Td (TCP) Tj ET Q q 0 0 0 rg BT 71.36 503.10 Td (A\) by) Tj ET Q q 0 0 0 rg BT 98.20 503.10 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 500.54 503.10 Td (, a database ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 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 49.50 479.10 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 474.86 479.10 Td (. ) Tj ET Q q 0 0 0 rg BT 482.18 479.10 Td (The plaintif) Tj ET Q q 0 0 0 rg BT 528.92 479.10 Td (f is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 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 303.32 467.10 Td (five hundred) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.14 467.10 Td ( dollars for each violation of the ) Tj ET Q q 0 0 0 rg BT 484.75 467.10 Td (TCP) Tj ET Q q 0 0 0 rg BT 502.17 467.10 Td (A) Tj ET Q q 0 0 0 rg BT 508.84 467.10 Td ( or) Tj ET Q q 0 0 0 rg BT 519.27 467.10 Td (, in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (alternative, treble damages of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.05 455.10 Td (fifteen hundred) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.42 455.10 Td ( dollars for each knowing and willful violation of the ) Tj ET Q q 0 0 0 rg BT 468.63 455.10 Td (TCP) Tj ET Q q 0 0 0 rg BT 486.05 455.10 Td (A) Tj ET Q q 0 0 0 rg BT 492.72 455.10 Td ( and a permanent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 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 49.50 431.10 Td (registry or our internal Do-Not-Call registry) Tj ET Q q 0 0 0 rg BT 225.19 431.10 Td (. ) Tj ET Q q 0 0 0 rg BT 230.01 431.10 Td (W) Tj ET Q q 0 0 0 rg BT 238.65 431.10 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 49.50 419.10 Td (we intend to defend this action vigorously) Tj ET Q q 0 0 0 rg BT 217.15 419.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 76.50 395.10 Td (Other Matters) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.44 395.10 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 49.50 383.10 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 49.50 371.10 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 49.50 359.10 Td (property) Tj ET Q q 0 0 0 rg BT 82.73 359.10 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 416.33 359.10 Td (fect on our business, financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.10 Td (condition or results of operations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 323.10 Td (\(14\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 323.10 Td (Income ) Tj ET Q q 0 0 0 rg BT 110.48 323.10 Td (T) Tj ET Q q 0 0 0 rg BT 116.23 323.10 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 305.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.61 305.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.59 305.10 Td ( months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.42 305.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.02 305.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.46 305.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.46 305.10 Td (, income tax expense was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.87 305.10 Td ($80,249) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.37 305.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.80 305.10 Td ($1) Tj ET Q q 0 0 0 rg BT 458.43 305.10 Td (13,973) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.93 305.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 538.59 305.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 281.10 Td (Our ef) Tj ET Q q 0 0 0 rg BT 103.14 281.10 Td (fective tax rate for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.92 281.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.85 281.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.73 281.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.33 281.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.77 281.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.77 281.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.32 281.10 Td (21.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.15 281.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.59 281.10 Td (35.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.42 281.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 522.08 281.10 Td (. ) Tj ET Q q 0 0 0 rg BT 529.40 281.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 269.10 Td (fective tax rate for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.87 269.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.80 269.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.68 269.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.28 269.10 Td ( was 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. ) Tj ET Q q 0 0 0 rg BT 102.59 257.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 128.23 257.10 Td (fective tax rate for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.01 257.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.94 257.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.82 257.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.42 257.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.85 257.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.85 257.10 Td ( was impacted by the recognition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.10 Td (excess tax benefits related to share based compensation. ) Tj ET Q q 0 0 0 rg BT 278.68 245.10 Td (W) Tj ET Q q 0 0 0 rg BT 287.32 245.10 Td (e estimate our ef) Tj ET Q q 0 0 0 rg BT 353.49 245.10 Td (fective tax rate for the year ending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.70 245.10 Td (December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.10 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 233.10 Td ( will be approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.25 233.10 Td (24%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.58 233.10 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 (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.54 209.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.98 209.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.56 209.10 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 516.51 209.10 Td ($52,459) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.01 209.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 197.10 Td ($52,883) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.94 197.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 151.60 197.10 Td (, that were not likely to be realized due to certain net operating loss limitations and acquired net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.10 Td (operating 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 77.50 143.10 Td (For the period from ) Tj ET Q q 0 0 0 rg BT 158.04 143.10 Td (April 1, 2018 to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.88 143.10 Td (April23, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.49 143.10 Td (, we repurchased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.45 143.10 Td ($14,028) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.95 143.10 Td ( of Holdings' common stock on the open ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (market, including fees and commissions.) 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 /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 59 0 obj <>] /Rotate 0 /Contents 60 0 R>> endobj 60 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 (28) 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 (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.04 314.30 Td (, we had approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.40 314.30 Td (33.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.90 314.30 Td ( million subscribers of which approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.31 314.30 Td (27.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.81 314.30 Td ( million were self-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 302.30 Td (pay subscribers and approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.63 302.30 Td (5.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.13 302.30 Td ( million were paid promotional subscribers. Our subscriber totals include subscribers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 290.30 Td (under our regular pricing plans; discounted pricing plans; subscribers that have prepaid, including payments either made or due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 278.30 Td (from automakers for subscriptions included in the sale or lease price of a vehicle; subscribers to our Internet services who do ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.30 Td (not also have satellite radio subscriptions; and certain subscribers to our weather) Tj ET Q q 0 0 0 rg BT 371.45 266.30 Td (, traf) Tj ET Q q 0 0 0 rg BT 390.15 266.30 Td (fic, and data services who do not also have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.30 Td (satellite radio subscriptions. Subscribers and subscription related revenues and expenses associated with the Sirius XM Canada ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.30 Td (service, which had approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.45 242.30 Td (2.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.95 242.30 Td ( million subscribers as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.99 242.30 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.59 242.30 Td (, and connected vehicle services are not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.30 Td (included in our subscriber count or subscriber) Tj ET Q q 0 0 0 rg BT 233.09 230.30 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 (7.8) 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 certain cases, a subscription to our radio services is included in the sale or lease price of new vehicles or previously ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 122.30 Td (owned vehicles. ) Tj ET Q q 0 0 0 rg BT 119.24 122.30 Td (The length of these subscriptions varies but is typically three to twelve months.) Tj ET Q q 0 0 0 rg BT 440.94 122.30 Td (W) Tj ET Q q 0 0 0 rg BT 449.58 122.30 Td (e receive payments for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 110.30 Td (these subscriptions from certain automakers.) Tj ET Q q 0 0 0 rg BT 233.38 110.30 Td (W) Tj ET Q q 0 0 0 rg BT 242.02 110.30 Td (e also reimburse various automakers for certain costs associated with satellite ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 98.30 Td (radios installed in new vehicles and pay revenue share to certain 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 (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.04 74.30 Td (, Liberty Media beneficially owned, directly and indirectly) Tj ET Q q 0 0 0 rg BT 400.03 74.30 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.29 74.30 Td (71%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.62 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.) Tj ET Q endstream endobj 61 0 obj <>] /Rotate 0 /Contents 62 0 R>> endobj 62 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 (29) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.64 742.10 Td (e hold an equity method investment in Sirius XM Canada Holdings Inc. \(Sirius XM Canada\), which of) Tj ET Q q 0 0 0 rg BT 506.38 742.10 Td (fers satellite ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (radio services in Canada. ) Tj ET Q q 0 0 0 rg BT 154.97 730.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.41 730.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.01 730.10 Td (, we owned an approximate 70% equity interest and 33% voting interest in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (Sirius XM Canada.) 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 (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.77 682.10 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 (19%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.33 670.10 Td ( interest in Pandora's then outstanding common stock, and an approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.63 670.10 Td (16%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.96 670.10 Td ( interest on an as-converted basis.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (Results of Operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 628.10 Td (Set forth below are our results of operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.16 628.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.10 628.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.97 628.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.57 628.10 Td ( compared with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.99 628.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.92 628.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 616.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.38 616.10 Td (March31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.98 616.10 Td (.) 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ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 368.25 580.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.20 580.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.25 580.83 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 566.27 Td (Revenue:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.25 551.27 Td (Subscriber revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.25 551.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.90 551.27 Td (1,1) Tj ET Q q 0 0 0 rg BT 306.40 551.27 Td (17,084) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.25 551.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.90 551.27 Td (1,078,257) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.25 551.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.40 551.27 Td (38,827) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.55 551.27 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 551.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.25 536.27 Td (Advertising revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.40 536.27 Td (42,048) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.40 536.27 Td (36,016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.40 536.27 Td (6,032) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.55 536.27 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 536.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.25 521.27 Td (Equipment revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.40 521.27 Td (35,089) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.40 521.27 Td (29,658) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.40 521.27 Td (5,431) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.55 521.27 Td (18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 521.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.25 506.27 Td (Music royalty fee and other revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.40 506.27 Td (180,881) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.40 506.27 Td (150,135) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.40 506.27 Td (30,746) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.55 506.27 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 506.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 491.27 Td (T) Tj ET Q q 0 0 0 rg BT 60.01 491.27 Td (otal revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.90 491.27 Td (1,375,102) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.90 491.27 Td (1,294,066) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.40 491.27 Td (81,036) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.55 491.27 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 491.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 476.27 Td (Operating expenses:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.25 476.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.25 476.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.25 461.27 Td (Cost of services:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.25 461.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.25 461.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.25 446.27 Td (Revenue share and royalties) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.40 446.27 Td (310,132) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.40 446.27 Td (277,300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.40 446.27 Td (32,832) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.55 446.27 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 446.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.25 431.27 Td (Programming and content) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.40 431.27 Td (100,836) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.40 431.27 Td (95,544) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.40 431.27 Td (5,292) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.55 431.27 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 431.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.25 416.27 Td (Customer service and billing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.40 416.27 Td (93,865) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.40 416.27 Td (96,775) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.05 416.32 Td (\(2,910) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.90 416.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.20 416.27 Td (\(3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.55 416.27 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.25 401.27 Td (Satellite and transmission) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.40 401.27 Td (22,722) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.40 401.27 Td (20,576) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.40 401.27 Td (2,146) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.55 401.27 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 401.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.25 386.27 Td (Cost of equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.40 386.27 Td (7,097) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.40 386.27 Td (6,912) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.90 386.27 Td (185) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.55 386.27 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 386.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 371.27 Td (Subscriber acquisition costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.40 371.27 Td (122,693) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.40 371.27 Td (127,488) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.05 371.32 Td (\(4,795) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.90 371.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.20 371.27 Td (\(4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.55 371.27 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 356.27 Td (Sales and marketing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.40 356.27 Td (106,71) Tj ET Q q 0 0 0 rg BT 328.90 356.27 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.40 356.27 Td (96,909) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.40 356.27 Td (9,802) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.55 356.27 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 356.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 341.27 Td (Engineering, design and development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.40 341.27 Td (30,637) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.40 341.27 Td (23,817) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.40 341.27 Td (6,820) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.55 341.27 Td (29) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 341.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 326.27 Td (General and administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.40 326.27 Td (84,606) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.40 326.27 Td (78,201) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.40 326.27 Td (6,405) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.55 326.27 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 326.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 311.27 Td (Depreciation and amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.40 311.27 Td (72,212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.40 311.27 Td (76,704) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.05 311.32 Td (\(4,492) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.90 311.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.20 311.27 Td (\(6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.55 311.27 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 296.27 Td (T) Tj ET Q q 0 0 0 rg BT 60.01 296.27 Td (otal operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.40 296.27 Td (951,51) Tj ET Q q 0 0 0 rg BT 328.90 296.27 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.40 296.27 Td (900,226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.40 296.27 Td (51,285) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.55 296.27 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 296.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.25 281.27 Td (Income from operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.40 281.27 Td (423,591) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.40 281.27 Td (393,840) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.40 281.27 Td (29,751) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.55 281.27 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 281.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 266.27 Td (Other income \(expense\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.25 251.27 Td (Interest expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.05 251.32 Td (\(89,789) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.90 251.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.05 251.32 Td (\(81,657) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.90 251.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.05 251.32 Td (\(8,132) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.90 251.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.20 251.27 Td (\(10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.55 251.27 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.25 236.27 Td (Other income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.40 236.27 Td (35,888) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.40 236.27 Td (8,863) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.40 236.27 Td (27,025) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.55 236.27 Td (305) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 236.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 221.27 Td (T) Tj ET Q q 0 0 0 rg BT 60.01 221.27 Td (otal other expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.05 221.32 Td (\(53,901) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.90 221.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.05 221.32 Td (\(72,794) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.90 221.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.40 221.27 Td (18,893) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.55 221.27 Td (26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 221.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 206.27 Td (Income before income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.40 206.27 Td (369,690) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.40 206.27 Td (321,046) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.40 206.27 Td (48,644) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.55 206.27 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 206.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 191.27 Td (Income tax expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.05 191.32 Td (\(80,249) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.90 191.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.05 191.32 Td (\(1) Tj ET Q q 0 0 0 rg BT 380.38 191.32 Td (13,973) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.90 191.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.40 191.27 Td (33,724) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.55 191.27 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 191.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.25 176.27 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 54.25 166.27 Td (sole stockholder) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.25 166.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.40 166.27 Td (289,441) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.25 166.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.40 166.27 Td (207,073) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.25 166.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.40 166.27 Td (82,368) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.55 166.27 Td (40) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 166.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.50 129.10 Td (T) Tj ET Q q 0 0 0 rg BT 68.69 129.10 Td (otal Revenue) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 111.10 Td (Subscriber Revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.69 111.10 Td (includes subscription, activation and other fees.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 87.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 87.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 87.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 87.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 87.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 87.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 87.10 Td (, subscriber revenue was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.25 87.10 Td ($1,1) Tj ET Q q 0 0 0 rg BT 409.38 87.10 Td (17,084) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.88 87.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.32 87.10 Td ($1,078,257) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.32 87.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 553.98 87.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 75.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.19 75.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.52 75.10 Td (4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.85 75.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.68 75.10 Td ($38,827) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.18 75.10 Td (. ) Tj ET Q q 0 0 0 rg BT 203.50 75.10 Td (The increase was primarily attributable to a 5% increase in the daily weighted average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 63.10 Td (number of subscribers for the three months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.55 63.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.15 63.10 Td (, partially of) Tj ET Q q 0 0 0 rg BT 390.12 63.10 Td (fset by approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.82 63.10 Td ($24,392) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.32 63.10 Td ( from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 51.10 Td (impact of the adoption of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.53 51.10 Td (Accounting Standards Update \("ASU"\) 2014-09, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 377.66 51.10 Td (Revenue - Revenue fr) Tj ET Q q 0 0 0 rg BT 462.52 51.10 Td (om Contracts with ) 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 /F3 10.00 Tf ET q 0 0 0 rg BT 76.50 742.10 Td (Customers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.28 742.10 Td (, and all related amendments, which established ) Tj ET Q q 0 0 0 rg BT 312.28 742.10 Td (Accounting Standards Codification \("ASC"\) ) Tj ET Q q 0 0 0 rg BT 492.46 742.10 Td (T) Tj ET Q q 0 0 0 rg BT 497.87 742.10 Td (opic 606 \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 730.10 Td ("new revenue standard"\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.18 730.10 Td (, ef) Tj ET Q q 0 0 0 rg BT 187.76 730.10 Td (fective as of January 1, 2018.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 706.10 Td (e expect subscriber revenues to increase based on the growth of our subscriber base, increases in certain of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (subscription rates and the sale of additional services to subscribers.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 670.10 Td (Advertising Revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.47 670.10 Td (includes the sale of advertising on certain non-music channels.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 646.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 646.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 646.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 646.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 646.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 646.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 646.10 Td (, advertising revenue was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.59 646.10 Td ($42,048) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.09 646.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.53 646.10 Td ($36,016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.03 646.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 532.69 646.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.69 646.10 Td (an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 634.10 Td (increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.25 634.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.58 634.10 Td (17%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.91 634.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.74 634.10 Td ($6,032) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.24 634.10 Td (. ) Tj ET Q q 0 0 0 rg BT 191.56 634.10 Td (The increase was primarily due to a greater number of advertising spots sold and transmitted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 622.10 Td (as well as increases in rates char) Tj ET Q q 0 0 0 rg BT 205.70 622.10 Td (ged per spot.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 598.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 598.10 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 49.50 586.10 Td (growing subscriber base and as we launch additional non-music channels.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 562.10 Td (Equipment Revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.69 562.10 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 49.50 550.10 Td (connected vehicle devices and royalty revenue on chipset modules.) 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 (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 526.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 526.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 526.10 Td (, equipment revenue was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.37 526.10 Td ($35,089) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.87 526.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.30 526.10 Td ($29,658) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.80 526.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 530.46 526.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.46 526.10 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 (18%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.91 514.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.74 514.10 Td ($5,431) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.24 514.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.56 514.10 Td (The increase was driven by additional royalty revenue due to our transition to a new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 502.10 Td (generation of chipsets and revenue from the sales of connected vehicle devices, partially of) Tj ET Q q 0 0 0 rg BT 440.62 502.10 Td (fset by lower radio sales to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 490.10 Td (consumers.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 466.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 466.10 Td (e expect equipment revenue to increase due to royalty revenues associated with certain modules related to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (transition to a new generation of chipsets.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 430.10 Td (Music Royalty Fee and Other Revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.66 430.10 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 49.50 418.10 Td (service and advisory revenue from our Canadian af) Tj ET Q q 0 0 0 rg BT 253.96 418.10 Td (filiate, our connected vehicle services, and ancillary revenues.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 394.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 394.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 394.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 394.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 394.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 394.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 394.10 Td (, other revenue was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.70 394.10 Td ($180,881) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.20 394.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.64 394.10 Td ($150,135) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.14 394.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 518.80 394.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.80 394.10 Td (an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 382.10 Td (increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.25 382.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.58 382.10 Td (20%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.91 382.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.74 382.10 Td ($30,746) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.24 382.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.56 382.10 Td (The increase was primarily driven by revenues from the U.S. Music Royalty Fee due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 370.10 Td (subscribers paying at a higher rate and an increase in the number of subscribers as well as higher revenue from the new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 358.10 Td (Sirius XM Canada service and advisory agreements.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 334.10 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 49.50 322.10 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 63.50 292.10 Td (Operating Expenses) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 274.10 Td (Revenue Shar) Tj ET Q q 0 0 0 rg BT 132.38 274.10 Td (e and Royalties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.53 274.10 Td (include royalties for transmitting content and web streaming as well as automaker) Tj ET Q q 0 0 0 rg BT 523.54 274.10 Td (, content ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (provider and advertising revenue share.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 238.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 238.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 238.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 238.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 238.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 238.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 238.10 Td (, revenue share and royalties were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 238.10 Td ($310,132) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.50 238.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.94 238.10 Td ($277,300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.44 238.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 226.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 124.16 226.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.16 226.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.85 226.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.18 226.10 Td (12%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.51 226.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.34 226.10 Td ($32,832) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.84 226.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.78 226.10 Td (increased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.54 226.10 Td ( as a percentage of total revenue. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.67 226.10 Td (The increase was due to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 214.10 Td (41% increase in the statutory royalty rate applicable to our use of post-1972 recordings, which increased from 1) Tj ET Q q 0 0 0 rg BT 523.21 214.10 Td (1% in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 202.10 Td (2017 to 15.5% in 2018 and overall greater revenues subject to revenue share to automakers. ) Tj ET Q q 0 0 0 rg BT 448.42 202.10 Td (The increase was partially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 190.10 Td (of) Tj ET Q q 0 0 0 rg BT 84.65 190.10 Td (fset by approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.35 190.10 Td ($22,069) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.85 190.10 Td ( from the impact of the adoption of the new revenue standard ef) Tj ET Q q 0 0 0 rg BT 461.57 190.10 Td (fective as of January 1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 178.10 Td (2018.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 154.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 154.10 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 49.50 142.10 Td (royalty rate payable for sound recordings contained in the December 2017 initial determination of the Copyright Royalty Board ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (\(the CRB\). On December 14, 2017, the CRB issued its initial determination regarding the post-1972 royalty rate payable by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (us under the statutory license covering the performance of sound recordings over our satellite radio service, and the making of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (ephemeral \(server\) copies in support of such performances, for the five-year period starting January 1, 2018 and ending on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (December 31, 2022. Under the terms of the CRB) Tj ET Q q 0 0 0 rg BT 248.34 94.10 Td (s decision, we are required to pay a royalty of 15.5% of gross revenues, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (subject to exclusions and adjustments, for the five year period.) 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 (Pr) Tj ET Q q 0 0 0 rg BT 87.13 58.10 Td (ogramming and Content ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.41 58.10 Td (includes costs to acquire, create, promote and produce content. ) Tj ET Q q 0 0 0 rg BT 441.02 58.10 Td (W) Tj ET Q q 0 0 0 rg BT 449.66 58.10 Td (e have entered into various ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (agreements with third parties for music and non-music programming that require us to pay license fees and other amounts.) Tj ET Q 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 (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 (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 742.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 742.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 742.10 Td (, programming and content expenses were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.79 742.10 Td ($100,836) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.29 742.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.73 742.10 Td ($95,544) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.23 742.10 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 (6%) 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 ($5,292) 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. ) Tj ET Q q 0 0 0 rg BT 439.67 730.10 Td (The increase was primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 718.10 Td (due to increased personnel-related costs, higher content license costs, and increased programming operations costs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 694.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 694.10 Td (e expect our programming and content expenses to increase as we of) Tj ET Q q 0 0 0 rg BT 360.58 694.10 Td (fer additional programming, and renew or replace ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (expiring agreements.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 658.10 Td (Customer Service and Billing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.04 658.10 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 49.50 646.10 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 49.50 634.10 Td (transaction fees.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 610.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 610.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 610.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 610.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 610.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 610.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 610.10 Td (, customer service and billing expenses were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.51 610.10 Td ($93,865) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.01 610.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.44 610.10 Td ($96,775) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.94 610.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 598.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 124.16 598.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.16 598.10 Td (a decrease) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.51 598.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.84 598.10 Td (3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.17 598.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.00 598.10 Td ($2,910) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.50 598.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.44 598.10 Td (decreased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.86 598.10 Td ( as a percentage of total revenue.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.17 598.10 Td ( ) Tj ET Q q 0 0 0 rg BT 437.99 598.10 Td (The decrease in customer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 586.10 Td (service and billing expense was driven by lower call center costs due to lower agent rates, contact rates, and bad debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 574.10 Td (expense.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 550.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 550.10 Td (e expect our customer service and billing expenses to increase as our subscriber base grows.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 526.10 Td (Satellite and T) Tj ET Q q 0 0 0 rg BT 135.28 526.10 Td (ransmission ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.12 526.10 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 49.50 514.10 Td (networks; satellites; satellite telemetry) Tj ET Q q 0 0 0 rg BT 202.42 514.10 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 49.50 502.10 Td (Internet streaming and connected vehicle services.) Tj ET Q 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 (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 478.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 478.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 478.10 Td (, satellite and transmission expenses were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.58 478.10 Td ($22,722) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.08 478.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.52 478.10 Td ($20,576) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.02 478.10 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 (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.16 466.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.85 466.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.18 466.10 Td (10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.51 466.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.34 466.10 Td ($2,146) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.84 466.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.78 466.10 Td (increased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.54 466.10 Td ( as a percentage of total revenue. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.85 466.10 Td ( ) Tj ET Q q 0 0 0 rg BT 449.67 466.10 Td (The increase was driven by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 454.10 Td (higher wireless costs associated with our connected vehicle services, higher Internet streaming costs, and increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 442.10 Td (personnel-related costs.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 418.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 418.10 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 49.50 406.10 Td (services increase.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 382.10 Td (Cost of Equipment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.44 382.10 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 49.50 370.10 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 49.50 358.10 Td (distribution channels.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 334.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 334.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 334.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 334.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 334.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 334.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 334.10 Td (, cost of equipment was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.66 334.10 Td ($7,097) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.16 334.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.60 334.10 Td ($6,912) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.10 334.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 515.76 334.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.76 334.10 Td (an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 322.10 Td (increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.25 322.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.58 322.10 Td (3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.91 322.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.74 322.10 Td ($185) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.74 322.10 Td (, but ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.02 322.10 Td (decreased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.44 322.10 Td ( as a percentage of equipment revenue. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.19 322.10 Td ( ) Tj ET Q q 0 0 0 rg BT 397.01 322.10 Td (The increase was primarily due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 310.10 Td (incremental costs associated with the sale of connected vehicle devices, partially of) Tj ET Q q 0 0 0 rg BT 409.52 310.10 Td (fset by lower satellite radio sales to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 298.10 Td (consumers.) 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 (W) Tj ET Q q 0 0 0 rg BT 86.14 274.10 Td (e expect cost of equipment to fluctuate with changes in sales.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 250.10 Td (Subscriber ) Tj ET Q q 0 0 0 rg BT 123.15 250.10 Td (Acquisition Costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.93 250.10 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 49.50 238.10 Td (subsidies paid for chipsets and certain other components used in manufacturing radios; device royalties for certain radios and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (chipsets; product warranty obligations; and freight. ) Tj ET Q q 0 0 0 rg BT 256.21 226.10 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 49.50 214.10 Td (advance of, or concurrent with, acquiring a subscriber) Tj ET Q q 0 0 0 rg BT 264.70 214.10 Td (. Subscriber acquisition costs do not include advertising costs, marketing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (loyalty payments to distributors and dealers of satellite radios or revenue share payments to automakers and retailers of satellite ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (radios.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 166.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 166.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 166.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 166.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 166.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 166.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 166.10 Td (, subscriber acquisition costs were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.87 166.10 Td ($122,693) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.37 166.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.80 166.10 Td ($127,488) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.30 166.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 154.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 124.16 154.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.16 154.10 Td (a decrease) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.51 154.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.84 154.10 Td (4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.17 154.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.00 154.10 Td ($4,795) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.50 154.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.44 154.10 Td (decreased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.86 154.10 Td ( as a percentage of total revenue. ) Tj ET Q q 0 0 0 rg BT 437.99 154.10 Td (The decrease was driven by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 142.10 Td (reductions to OEM hardware subsidy rates, lower subsidized costs related to the transition of chipsets, and a decrease in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 130.10 Td (the volume of installations.) Tj ET Q 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 subscriber acquisition costs to fluctuate with OEM installations and aftermarket volume; however) Tj ET Q q 0 0 0 rg BT 512.56 106.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 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 94.10 Td (W) Tj ET Q q 0 0 0 rg BT 441.74 94.10 Td (e intend to continue to of) Tj ET Q q 0 0 0 rg BT 541.81 94.10 Td (fer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (subsidies and other incentives to induce OEMs to include our technology in their vehicles.) 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 /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 742.10 Td (Sales and Marketing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.76 742.10 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 49.50 730.10 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 49.50 718.10 Td (telemarketing and email communications.) Tj ET Q 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 (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 694.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 694.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 694.10 Td (, sales and marketing expenses were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.90 694.10 Td ($106,71) Tj ET Q q 0 0 0 rg BT 471.03 694.10 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.03 694.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.47 694.10 Td ($96,909) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.97 694.10 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 (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.85 682.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.18 682.10 Td (10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.51 682.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.34 682.10 Td ($9,802) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.84 682.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.78 682.10 Td (increased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.54 682.10 Td ( as a percentage of total revenue. ) Tj ET Q q 0 0 0 rg BT 444.67 682.10 Td (The increase was primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 670.10 Td (due to additional subscriber communications, retention programs and acquisition campaigns, as well as higher personnel-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 658.10 Td (related costs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 634.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 634.10 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 49.50 622.10 Td (win back former subscribers, and attract new subscribers.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 598.10 Td (Engineering, Design and Development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.52 598.10 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 49.50 586.10 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 49.50 574.10 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 q 0 0 0 rg BT 76.50 550.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 550.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 550.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 550.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 550.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 550.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 550.10 Td (, engineering, design and development expenses were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.88 550.10 Td ($30,637) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.38 550.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 538.10 Td ($23,817) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.00 538.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 161.66 538.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.66 538.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.35 538.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.68 538.10 Td (29%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.01 538.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.84 538.10 Td ($6,820) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.34 538.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.28 538.10 Td (increased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.04 538.10 Td ( as a percentage of total revenue. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.17 538.10 Td (The increase was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 526.10 Td (driven by the additional costs associated with our connected vehicle services and the development of our audio and video ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 514.10 Td (streaming products.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.50 490.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 490.10 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 49.50 478.10 Td (infrastructure, products and services.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 454.10 Td (General and ) Tj ET Q q 0 0 0 rg BT 130.09 454.10 Td (Administrative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.47 454.10 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 49.50 442.10 Td (costs related to our finance, legal, human resources and information technologies departments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 418.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 418.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 418.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 418.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 418.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 418.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 418.10 Td (, general and administrative expenses were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.55 418.10 Td ($84,606) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.05 418.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.49 418.10 Td ($78,201) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.99 418.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 406.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 124.16 406.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.16 406.10 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.85 406.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.18 406.10 Td (8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.51 406.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.34 406.10 Td ($6,405) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.84 406.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.78 406.10 Td (increased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.54 406.10 Td ( as a percentage of total revenue. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.67 406.10 Td (The increase was primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 394.10 Td (driven by higher personnel-related, and software license and maintenance expense, partially of) Tj ET Q q 0 0 0 rg BT 454.78 394.10 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 77.50 370.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.14 370.10 Td (e expect our general and administrative expenses to increase to support the growth of our business.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 346.10 Td (Depr) Tj ET Q q 0 0 0 rg BT 97.68 346.10 Td (eciation and ) Tj ET Q q 0 0 0 rg BT 149.71 346.10 Td (Amortization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.44 346.10 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 49.50 334.10 Td (our satellite constellations, property) Tj ET Q q 0 0 0 rg BT 192.15 334.10 Td (, equipment and intangible assets, over their estimated service lives.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 310.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 310.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 310.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 310.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 310.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 310.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 310.10 Td (, depreciation and amortization expense was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.11 310.10 Td ($72,212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.61 310.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.05 310.10 Td ($76,704) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.55 310.10 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 (a decrease) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.51 298.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.84 298.10 Td (6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.17 298.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.00 298.10 Td ($4,492) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.50 298.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.44 298.10 Td (decreased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.86 298.10 Td ( as a percentage of total revenue. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.99 298.10 Td (The decrease was driven by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 286.10 Td (lower amortization expense due to our subscriber relationships and certain software assets being fully amortized during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 274.10 Td (2017, partially of) Tj ET Q q 0 0 0 rg BT 145.47 274.10 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 63.50 244.10 Td (Other Income \(Expense\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 226.10 Td (Inter) Tj ET Q q 0 0 0 rg BT 96.57 226.10 Td (est Expense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.99 226.10 Td (includes interest on outstanding debt.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 202.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 202.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 202.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 202.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 202.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 202.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 202.10 Td (, interest expense was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.15 202.10 Td ($89,789) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 202.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.09 202.10 Td ($81,657) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.59 202.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 518.25 202.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.25 202.10 Td (an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 190.10 Td (increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.25 190.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.58 190.10 Td (10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.91 190.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.74 190.10 Td ($8,132) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.24 190.10 Td (. ) Tj ET Q q 0 0 0 rg BT 191.56 190.10 Td (The increase was primarily due to higher average debt.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 166.10 Td (Other Income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.26 166.10 Td (primarily) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 172.47 166.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.97 166.10 Td (includes realized and unrealized gains and losses, interest and dividend income, our share of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (income or loss of Sirius XM Canada, and transaction costs related to non-operating investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 130.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 130.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 130.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 130.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 130.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 130.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 130.10 Td (, other income was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.49 130.10 Td ($35,888) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.99 130.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.43 130.10 Td ($8,863) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.93 130.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 501.59 130.10 Td (. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.20 130.10 Td (three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 118.10 Td (months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.95 118.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.83 118.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.42 118.10 Td (, we recorded an unrealized gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.69 118.10 Td ($31,375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.19 118.10 Td ( from a fair value adjustment of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 106.10 Td (investment in Pandora, interest earned on our loan to Sirius XM Canada, and our share of Sirius XM Canada's net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 94.10 Td (income. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.04 94.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.98 94.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.85 94.10 Td (March31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.45 94.10 Td (, other income was driven by our share of Sirius XM Canada's net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 82.10 Td (income.) Tj ET Q 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 /F4 10.00 Tf ET q 0 0 0 rg BT 63.50 742.25 Td (Income T) Tj ET Q q 0 0 0 rg BT 102.30 742.25 Td (axes) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 724.25 Td (Income T) Tj ET Q q 0 0 0 rg BT 114.07 724.25 Td (ax Expense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.83 724.25 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 49.50 712.25 Td (state tax expenses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 694.25 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 694.25 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 694.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 694.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 694.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 694.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 694.25 Td (, income tax expense was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.87 694.25 Td ($80,249) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.37 694.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.80 694.25 Td ($1) Tj ET Q q 0 0 0 rg BT 457.43 694.25 Td (13,973) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.93 694.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 537.59 694.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 670.25 Td (Our ef) Tj ET Q q 0 0 0 rg BT 102.14 670.25 Td (fective tax rate for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.92 670.25 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.85 670.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.73 670.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.33 670.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.77 670.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.77 670.25 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.32 670.25 Td (21.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.15 670.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.59 670.25 Td (35.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.42 670.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 521.08 670.25 Td (. ) Tj ET Q q 0 0 0 rg BT 528.40 670.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 658.25 Td (ef) Tj ET Q q 0 0 0 rg BT 84.09 658.25 Td (fective tax rate for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.87 658.25 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.80 658.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.68 658.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.28 658.25 Td ( was 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 76.50 646.25 Td (result of the ) Tj ET Q q 0 0 0 rg BT 126.58 646.25 Td (T) Tj ET Q q 0 0 0 rg BT 131.99 646.25 Td (ax ) Tj ET Q q 0 0 0 rg BT 143.38 646.25 Td (Act. ) Tj ET Q q 0 0 0 rg BT 165.14 646.25 Td (The ef) Tj ET Q q 0 0 0 rg BT 190.77 646.25 Td (fective tax rate for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.55 646.25 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.49 646.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.36 646.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.96 646.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.40 646.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.40 646.25 Td ( was impacted by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 634.25 Td (recognition of excess tax benefits related to share based compensation. ) Tj ET Q q 0 0 0 rg BT 364.55 634.25 Td (W) Tj ET Q q 0 0 0 rg BT 373.19 634.25 Td (e estimate our ef) Tj ET Q q 0 0 0 rg BT 439.37 634.25 Td (fective tax rate for the year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 622.25 Td (ending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.22 622.25 Td (December31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.80 622.25 Td ( will be approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.55 622.25 Td (24%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.88 622.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 592.25 Td (Key Financial and Operating Performance Metrics) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 574.25 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 50.00 562.25 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 50.00 550.25 Td (and adjusted EBITDA. ) Tj ET Q q 0 0 0 rg BT 146.74 550.25 Td (W) Tj ET Q q 0 0 0 rg BT 155.38 550.25 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 50.00 538.25 Td (subscriber) Tj ET Q q 0 0 0 rg BT 90.70 538.25 Td (, or ) Tj ET Q q 0 0 0 rg BT 105.98 538.25 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 50.00 526.25 Td (per installation. Our adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 207.19 526.25 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 50.00 514.25 Td (accounting adjustments related to the mer) Tj ET Q q 0 0 0 rg BT 216.71 514.25 Td (ger of Sirius and XM \(the Mer) Tj ET Q q 0 0 0 rg BT 343.16 514.25 Td (ger\). ) Tj ET Q q 0 0 0 rg BT 370.65 514.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 420.55 514.25 Td (, when applicable, our adjusted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (EBITDA) Tj ET Q q 0 0 0 rg BT 86.11 502.25 Td ( metric excludes the ef) Tj ET Q q 0 0 0 rg BT 176.44 502.25 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 528.11 502.25 Td (W) Tj ET Q q 0 0 0 rg BT 536.74 502.25 Td (e use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.25 Td (these Non-GAAP) Tj ET Q q 0 0 0 rg BT 120.45 490.25 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 50.00 478.25 Td (for determining performance-based compensation for our employees. See accompanying glossary on pages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.75 478.25 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.75 478.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.85 478.25 Td (41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.85 478.25 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.25 Td (more details and for the reconciliation to the most directly comparable GAAP) Tj ET Q q 0 0 0 rg BT 360.92 466.25 Td ( measure \(where applicable\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 442.25 Td (W) Tj ET Q q 0 0 0 rg BT 86.64 442.25 Td (e believe these Non-GAAP) Tj ET Q q 0 0 0 rg BT 195.40 442.25 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 50.00 430.25 Td (regarding our financial condition and results of operations. ) Tj ET Q q 0 0 0 rg BT 287.25 430.25 Td (W) Tj ET Q q 0 0 0 rg BT 295.89 430.25 Td (e believe investors find these Non-GAAP) Tj ET Q q 0 0 0 rg BT 461.87 430.25 Td ( financial and operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 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 524.93 418.25 Td (W) Tj ET Q q 0 0 0 rg BT 533.56 418.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (believe investors use our adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 223.57 406.25 Td ( to estimate our current enterprise value and to make investment decisions. ) Tj ET Q q 0 0 0 rg BT 524.69 406.25 Td (W) Tj ET Q q 0 0 0 rg BT 533.33 406.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 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 50.00 382.25 Td (acquisition and capital expenditures, to repurchase or retire debt, to acquire other companies and to evaluate our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.25 Td (return capital to stockholders. By providing these Non-GAAP) Tj ET Q q 0 0 0 rg BT 299.86 370.25 Td ( financial and operating performance measures, together with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.25 Td (reconciliations to the most directly comparable GAAP) Tj ET Q q 0 0 0 rg BT 267.35 358.25 Td ( measure \(where applicable\), we believe we are enhancing investors' ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.25 Td (understanding of our business and our results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 322.25 Td (Our Non-GAAP) Tj ET Q q 0 0 0 rg BT 143.46 322.25 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 50.00 310.25 Td (reported results prepared in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 256.04 310.25 Td (.In addition, our Non-GAAP) Tj ET Q q 0 0 0 rg BT 375.38 310.25 Td ( financial measures may not be comparable to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.25 Td (similarly-titled measures by other companies.Please refer to the glossary \(pages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.29 298.25 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.29 298.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.40 298.25 Td (41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.40 298.25 Td (\) for a further discussion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.25 Td (such Non-GAAP) Tj ET Q q 0 0 0 rg BT 118.24 286.25 Td ( financial and operating performance measures and reconciliations to the most directly comparable GAAP) Tj ET Q q 0 0 0 rg BT 542.44 286.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.25 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 50.00 262.25 Td (services and Sirius XM Canada are not included in our subscriber count or subscriber) Tj ET Q q 0 0 0 rg BT 391.66 262.25 Td (-based operating metrics.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 238.25 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 272.38 238.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.88 238.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.47 238.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.97 238.25 Td (compared to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.68 238.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.18 238.25 Td (March31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.77 238.25 Td (:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 185.75 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 185.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 185.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 185.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 185.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 185.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 185.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 185.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 155.75 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 155.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 155.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 155.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 155.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 155.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 155.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 155.75 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 270.5 200.75 m 340.5 200.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 200.75 m 344.5 200.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 200.75 m 414.5 200.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 200.75 m 418.5 200.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 200.75 m 488.5 200.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 200.75 m 492.5 200.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 200.75 m 562.5 200.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 185.75 m 340.5 185.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 185.75 m 414.5 185.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 185.75 m 488.5 185.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 185.75 m 562.5 185.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 185.75 m 340.5 185.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 185.75 m 414.5 185.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 185.75 m 488.5 185.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 185.75 m 562.5 185.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 155.75 m 340.5 155.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 141.75 m 340.5 141.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 139.75 m 340.5 139.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 155.75 m 414.5 155.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 141.75 m 414.5 141.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 139.75 m 414.5 139.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 155.75 m 488.5 155.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 141.75 m 488.5 141.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 139.75 m 488.5 139.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 316.70 204.98 Td (As of Mar) Tj ET Q q 0 0 0 rg BT 351.28 204.98 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.30 204.98 Td (2018 vs 2017 Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 297.00 189.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.00 189.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.95 189.98 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.00 189.98 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 175.21 Td (Self-pay subscribers) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 312.25 175.21 Td (27,720) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.25 175.21 Td (26,210) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.75 175.21 Td (1,510) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.00 175.21 Td (6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 175.21 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 59.00 160.21 Td (Paid promotional subscribers) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 316.75 160.21 Td (5,347) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 390.75 160.21 Td (5,393) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.00 160.21 Td (\(46) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.00 160.21 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.00 160.21 Td (\(1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.50 160.21 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 145.21 Td (Ending subscribers ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 123.99 149.29 Td (\(a\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 312.25 145.21 Td (33,066) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.25 145.21 Td (31,602) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 464.75 145.21 Td (1,464) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.00 145.21 Td (5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 145.21 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 130.45 Td (\(a\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 130.45 Td (Amounts may not sum as a result of rounding) 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 77.00 742.10 Td (The following table contains our Non-GAAP) Tj ET Q q 0 0 0 rg BT 257.43 742.10 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 50.00 730.10 Td (adjusted results of operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.30 730.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.23 730.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.11 730.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.71 730.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.14 730.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.14 730.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.64 730.10 Td ( ) Tj ET Q q 0 0 0 rg BT 389.46 730.10 Td (The ) Tj ET Q q 0 0 0 rg BT 406.96 730.10 Td (ARPU and SAC, per installation, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (metrics for the three months ended March 31, 2018 have been reduced by the adoption of the new revenue standard as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (January 1, 2018 by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.60 706.10 Td ($0.25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.10 706.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.54 706.10 Td ($0.31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.04 706.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 245.70 706.10 Td (. For more information regarding the impact on these metrics, refer to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (glossary) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.33 694.10 Td ( \(pages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.43 694.10 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.43 694.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.54 694.10 Td (41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.54 694.10 Td (\). For more information regarding the adoption of the new revenue standard, refer to Note 2 to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (our unaudited consolidated financial statements of this Quarterly Report.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 644.60 205.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 255.50 644.60 80.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 644.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 644.60 80.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.50 644.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 644.60 80.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 644.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 644.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 616.60 205.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 255.50 616.60 80.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 616.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 616.60 80.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.50 616.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 616.60 80.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 616.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 616.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 588.60 205.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 255.50 588.60 80.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 588.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 588.60 80.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.50 588.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 588.60 80.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 588.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 588.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 560.60 205.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 255.50 560.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 560.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 560.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.50 560.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 560.60 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 560.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 560.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 531.60 205.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 255.50 531.60 80.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 531.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 531.60 80.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.50 531.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 531.60 80.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 531.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 531.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 494.60 205.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 255.50 494.60 80.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 494.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 494.60 80.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.50 494.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 494.60 80.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 494.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.50 494.60 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 255.5 658.6 m 335.5 658.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 658.6 m 339.5 658.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 658.6 m 419.5 658.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 671.6 m 503.5 671.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 658.6 m 503.5 658.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 671.6 m 507.5 671.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 658.6 m 507.5 658.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 671.6 m 562.5 671.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 658.6 m 562.5 658.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255.5 644.6 m 335.5 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 644.6 m 419.5 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 644.6 m 503.5 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 644.6 m 562.5 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255.5 616.6 m 335.5 616.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255.5 616.6 m 335.5 616.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255.5 603.6 m 335.5 603.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255.5 601.6 m 335.5 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 616.6 m 419.5 616.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 603.6 m 419.5 603.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 601.6 m 419.5 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 616.6 m 503.5 616.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 603.6 m 503.5 603.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 601.6 m 503.5 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255.5 601.6 m 335.5 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 255.5 603.6 m 335.5 603.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 601.6 m 503.5 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 603.6 m 503.5 603.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 268.70 662.83 Td (For) Tj ET Q q 0 0 0 rg BT 281.07 662.83 Td ( the ) Tj ET Q q 0 0 0 rg BT 295.58 662.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 308.78 662.83 Td (ee Months Ended Mar) Tj ET Q q 0 0 0 rg BT 385.30 662.83 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.80 662.83 Td (2018 vs 2017 Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 287.00 648.83 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.00 648.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.95 648.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 530.50 648.83 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 635.06 Td (Self-pay subscribers) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.00 635.06 Td (206) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.00 635.06 Td (259) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 480.50 635.06 Td (\(53) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.50 635.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 539.50 635.06 Td (\(20) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.50 635.06 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 65.00 621.06 Td (Paid promotional subscribers) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.00 621.06 Td (124) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 404.00 621.06 Td (\(3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.50 621.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 479.00 621.06 Td (127) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 531.25 621.06 Td (4,233) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 621.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 607.06 Td (Net additions ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 5.85 Tf ET q 0 0 0 rg BT 103.49 611.14 Td (\(a\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 314.00 607.06 Td (330) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 398.00 607.06 Td (257) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.50 607.06 Td (73) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 607.06 Td (28) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 607.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 593.06 Td (Daily weighted average number of subscribers) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 302.75 593.06 Td (32,828) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 386.75 593.06 Td (31,369) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 472.25 593.06 Td (1,459) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.00 593.06 Td (5) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 593.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 579.06 Td (A) Tj ET Q q 0 0 0 rg BT 59.17 579.06 Td (verage self-pay monthly churn) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 316.25 579.06 Td (1.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 327.50 579.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 400.25 579.06 Td (1.8) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.50 579.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 426.00 579.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.50 579.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 579.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 579.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 565.06 Td (New vehicle consumer conversion rate) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 318.50 565.06 Td (39) 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 402.50 565.06 Td (40) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 411.50 565.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.00 565.06 Td (\(1) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.50 565.06 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.00 565.06 Td (\(3) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.50 565.06 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 536.06 Td (ARPU) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 258.00 536.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 307.25 536.06 Td (12.95) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 342.00 536.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.25 536.06 Td (12.95) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 426.00 536.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 483.50 536.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 536.06 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 536.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 522.06 Td (SAC, per installation) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 258.00 522.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 307.25 522.06 Td (28.18) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 342.00 522.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 391.25 522.06 Td (29.22) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 426.00 522.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 522.06 Td (\(1.04) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.50 522.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.00 522.06 Td (\(4) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.50 522.06 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 508.06 Td (Customer service and billing expenses, per average) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 499.06 Td (subscriber) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 258.00 499.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 311.75 499.06 Td (0.88) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 342.00 499.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 395.75 499.06 Td (0.97) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 426.00 499.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 473.75 499.06 Td (\(0.09) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 492.50 499.06 Td (\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 544.00 499.06 Td (\(9) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 551.50 499.06 Td (\)%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 485.06 Td (Adjusted EBITDA) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 258.00 485.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 298.25 485.06 Td (531,849) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 342.00 485.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 382.25 485.06 Td (501,803) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 426.00 485.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 467.75 485.06 Td (30,046) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 547.00 485.06 Td (6) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 485.06 Td (%) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 53.00 471.06 Td (Free cash flow) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 258.00 471.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 298.25 471.06 Td (326,462) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 342.00 471.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 382.25 471.06 Td (248,939) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 426.00 471.06 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 467.75 471.06 Td (77,523) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 542.50 471.06 Td (31) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 554.50 471.06 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 456.30 Td (\(a\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 77.00 456.30 Td (Amounts may not sum as a result of rounding.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 421.50 Td (Subscribers. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.72 421.50 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.22 421.50 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.82 421.50 Td (, we had approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.18 421.50 Td (33.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.68 421.50 Td ( million subscribers, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.56 421.50 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.25 421.50 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.58 421.50 Td (1.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.08 421.50 Td ( million subscribers, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 409.50 Td (or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 409.50 Td (5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.66 409.50 Td (, from the approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.57 409.50 Td (31.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.07 409.50 Td ( million subscribers as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.12 409.50 Td (March31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.71 409.50 Td (. ) Tj ET Q q 0 0 0 rg BT 367.03 409.50 Td (The increase in total subscribers was primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 397.50 Td (due to growth in our self-pay subscriber base, which increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.92 397.50 Td (1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.81 397.50 Td (, partially of) Tj ET Q q 0 0 0 rg BT 394.78 397.50 Td (fset by a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.16 397.50 Td (46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.16 397.50 Td ( thousand decrease in paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 385.50 Td (promotional subscribers. ) Tj ET Q q 0 0 0 rg BT 153.19 385.50 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 49.50 373.50 Td (conversions and subscriber win back programs, partially of) Tj ET Q q 0 0 0 rg BT 285.92 373.50 Td (fset by deactivations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 355.50 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 355.50 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 355.50 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 355.50 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 355.50 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 355.50 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 355.50 Td (, net additions were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.27 355.50 Td (330) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.27 355.50 Td ( thousand and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.31 355.50 Td (257) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.31 355.50 Td ( thousand, respectively) Tj ET Q q 0 0 0 rg BT 551.58 355.50 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 343.50 Td (an increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.19 343.50 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.52 343.50 Td (28%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.85 343.50 Td (. Growth in paid promotional net additions was due to paid promotional subscription starts out-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 331.50 Td (pacing paid promotional subscription ends as a result of higher shipments from automakers of) Tj ET Q q 0 0 0 rg BT 452.07 331.50 Td (fering paid promotional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 319.50 Td (subscriptions. Self-pay net additions principally declined due to slightly higher vehicle turnover in our subscriber base. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 295.50 Td (A) Tj ET Q q 0 0 0 rg BT 83.06 295.50 Td (verage Self-pay Monthly Churn ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.91 295.50 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 49.50 283.50 Td (the average number of self-pay subscribers forthe period. \(See accompanying glossary on pages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.98 283.50 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.98 283.50 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.08 283.50 Td (41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.08 283.50 Td ( for more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 271.50 Td (details.\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 253.50 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 253.50 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 253.50 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 253.50 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 253.50 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 253.50 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 253.50 Td (, our average self-pay monthly churn rate was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.22 253.50 Td (1.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.05 253.50 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 229.50 Td (New V) Tj ET Q q 0 0 0 rg BT 102.78 229.50 Td (ehicle Consumer Conversion Rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.20 229.50 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 49.50 217.50 Td (and convert to become self-paying subscribers after an initial promotional period. ) Tj ET Q q 0 0 0 rg BT 378.10 217.50 Td (The metric excludes rental and fleet vehicles.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 559.41 217.50 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 205.50 Td (\(See accompanying glossary on pages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.18 205.50 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.18 205.50 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.29 205.50 Td (41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.29 205.50 Td ( for more details.\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 187.50 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 187.50 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 187.50 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 187.50 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 187.50 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 187.50 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 187.50 Td (, our new vehicle consumer conversion rate was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.11 187.50 Td (39%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.44 187.50 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.88 187.50 Td (40%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.21 187.50 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 175.50 Td (respectively) Tj ET Q q 0 0 0 rg BT 124.16 175.50 Td (.) Tj ET Q q 0 0 0 rg BT 131.48 175.50 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.53 175.50 Td (decrease) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.94 175.50 Td ( in new vehicle consumer conversion rate was driven by a slight decline in conversion of first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 163.50 Td (time trial subscribers, partially of) Tj ET Q q 0 0 0 rg BT 209.34 163.50 Td (fset by slight improvements in conversion of promotional subscribers who are also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 151.50 Td (existing self-pay subscribers.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 127.50 Td (ARPU ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.55 127.50 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 49.50 115.50 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 49.50 103.50 Td (daily weighted average number of subscribers for the period. \(See the accompanying glossary on pages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.92 103.50 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.92 103.50 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.03 103.50 Td (41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.03 103.50 Td ( for more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 91.50 Td (details.\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 73.50 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 73.50 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 73.50 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 73.50 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 73.50 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 73.50 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 73.50 Td (, ) Tj ET Q q 0 0 0 rg BT 295.90 73.50 Td (ARPU was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.13 73.50 Td ($12.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.63 73.50 Td (. ) Tj ET Q q 0 0 0 rg BT 377.95 73.50 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 61.50 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 61.50 Td (fset by the impact of the adoption of ) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 742.10 Td (the new revenue standard, ef) Tj ET Q q 0 0 0 rg BT 190.99 742.10 Td (fective as of January 1, 2018 of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.28 742.10 Td ($0.25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.78 742.10 Td ( and the growth in subscription discounts of) Tj ET Q q 0 0 0 rg BT 516.86 742.10 Td (fered ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 730.10 Td (through customer acquisition and retention programs.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 706.10 Td (SAC, Per Installation, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.33 706.10 Td (is derived from subscriber acquisition costs and mar) Tj ET Q q 0 0 0 rg BT 376.71 706.10 Td (gins from the sale of radios, components and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 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 49.50 682.10 Td (shipments of aftermarket radios for the period. \(See the accompanying glossary on pages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.72 682.10 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.72 682.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.83 682.10 Td (41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.83 682.10 Td ( for more details.\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 664.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 664.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 664.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 664.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 664.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 664.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 664.10 Td (, SAC, per installation, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.67 664.10 Td ($28.18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.17 664.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.61 664.10 Td ($29.22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.11 664.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 530.77 664.10 Td (.) Tj ET Q q 0 0 0 rg BT 538.09 664.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 652.10 Td (decrease was driven by reductions to OEM hardware subsidy rates, our transition to a new generation of chipsets as well ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 640.10 Td (as the impact of the adoption of the new revenue standard, ef) Tj ET Q q 0 0 0 rg BT 320.12 640.10 Td (fective as of January 1, 2018 of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.41 640.10 Td ($0.31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.91 640.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 616.10 Td (Customer Service and Billing Expenses, Per ) Tj ET Q q 0 0 0 rg BT 257.00 616.10 Td (A) Tj ET Q q 0 0 0 rg BT 262.56 616.10 Td (verage Subscriber) Tj ET Q q 0 0 0 rg BT 334.49 616.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.49 616.10 Td (is derived from total customer service and billing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 604.10 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 49.50 592.10 Td (number of months in the period, divided by the daily weighted average number of subscribers for the period. \(See the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 580.10 Td (accompanying glossary on pages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.91 580.10 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.91 580.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.02 580.10 Td (41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.02 580.10 Td ( for more details.\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 562.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 562.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 562.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 562.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 562.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 562.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 562.10 Td (, customer service and billing expenses, per average subscriber) Tj ET Q q 0 0 0 rg BT 542.63 562.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 550.10 Td (was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.55 550.10 Td ($0.88) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.05 550.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.49 550.10 Td ($0.97) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.99 550.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 211.65 550.10 Td (. ) Tj ET Q q 0 0 0 rg BT 218.97 550.10 Td (The decrease was primarily related to lower call center costs due to lower contact ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 538.10 Td (rates, agent rates, and bad debt expense.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 514.10 Td (Adjusted EBITDA. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.43 514.10 Td (EBITDA) Tj ET Q q 0 0 0 rg BT 190.54 514.10 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 49.50 502.10 Td (amortization.) Tj ET Q q 0 0 0 rg BT 106.99 502.10 Td (Adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 181.70 502.10 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 540.87 502.10 Td (ges, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (such as certain purchase price accounting adjustments, share-based payment expense and loss on disposal of assets. \(See the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (accompanying glossary on pages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.91 478.10 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.91 478.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.02 478.10 Td (41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.02 478.10 Td ( for a reconciliation to GAAP) Tj ET Q q 0 0 0 rg BT 358.23 478.10 Td ( and for more details.\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 460.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.61 460.10 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 460.10 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.42 460.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 460.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 460.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 460.10 Td (, adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 368.39 460.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.94 460.10 Td ($531,849) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.44 460.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.88 460.10 Td ($501,803) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.38 460.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 536.04 460.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.04 460.10 Td (an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 448.10 Td (increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.25 448.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.58 448.10 Td (6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.91 448.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.74 448.10 Td ($30,046) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.24 448.10 Td (.) Tj ET Q q 0 0 0 rg BT 191.56 448.10 Td (The increase was due to growth of 6% in total revenue which was primarily a result of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 436.10 Td (increase in our subscriber base and certain of our subscription rates and an increase in other revenue from higher revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 424.10 Td (from the new Sirius XM Canada service and advisory agreements and additional revenues from the U.S. Music Royalty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 412.10 Td (Fee, as well as lower subscriber acquisition costs. ) Tj ET Q q 0 0 0 rg BT 279.88 412.10 Td (The increase was partially of) Tj ET Q q 0 0 0 rg BT 395.21 412.10 Td (fset by higher revenue share and royalty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 400.10 Td (costs due to growth in our revenues and royalty rates, programming and content, sales and marketing, engineering, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 388.10 Td (design and development costs, and general and administrative costs.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.50 364.10 Td (Fr) Tj ET Q q 0 0 0 rg BT 87.13 364.10 Td (ee Cash Flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.62 364.10 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 49.50 352.10 Td (other investment activity) Tj ET Q q 0 0 0 rg BT 148.27 352.10 Td (. \(See the accompanying glossary on pages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.66 352.10 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.66 352.10 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.77 352.10 Td (41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.77 352.10 Td ( for a reconciliation to GAAP) Tj ET Q q 0 0 0 rg BT 496.98 352.10 Td ( and for more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 340.10 Td (details.\)) 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 (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.02 322.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.46 322.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.46 322.10 Td (, free cash flow was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.64 322.10 Td ($326,462) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.14 322.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.58 322.10 Td ($248,939) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.08 322.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 520.74 322.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.74 322.10 Td (an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 310.10 Td (increase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.25 310.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.58 310.10 Td ($77,523) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.08 310.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.91 310.10 Td (31%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.24 310.10 Td (.) Tj ET Q q 0 0 0 rg BT 196.56 310.10 Td (The increase was driven by higher net cash provided by operating activities resulting from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 298.10 Td (improved operating performance and a payment of a legal settlement during the first quarter of 2017, partially of) Tj ET Q q 0 0 0 rg BT 527.27 298.10 Td (fset by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 286.10 Td (an increase in additions to property and equipment resulting from new satellite construction, and the timing of interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 274.10 Td (payments.) Tj ET Q 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 /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Liquidity and Capital Resour) Tj ET Q q 0 0 0 rg BT 175.68 742.25 Td (ces) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 724.25 Td (Cash Flows for the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 128.90 724.25 Td (thr) Tj ET Q q 0 0 0 rg BT 140.20 724.25 Td (ee months) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 180.46 724.25 Td ( ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 209.34 724.25 Td (Mar) Tj ET Q q 0 0 0 rg BT 226.19 724.25 Td (ch31, 2018) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.13 724.25 Td ( compar) Tj ET Q q 0 0 0 rg BT 305.81 724.25 Td (ed with the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 352.19 724.25 Td (thr) Tj ET Q q 0 0 0 rg BT 363.49 724.25 Td (ee months) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 403.76 724.25 Td ( ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 432.64 724.25 Td (Mar) Tj ET Q q 0 0 0 rg BT 449.49 724.25 Td (ch31, 2017) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 496.43 724.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 706.25 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 50.50 669.75 279.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.50 669.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 669.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 669.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 669.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 669.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 639.75 279.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.50 639.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 639.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 639.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 639.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 639.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 609.75 279.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.50 609.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 609.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 609.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 609.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 609.75 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 329.5 682.75 m 404.5 682.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404.5 682.75 m 408.5 682.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 682.75 m 483.5 682.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 682.75 m 487.5 682.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 669.75 m 404.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 682.75 m 483.5 682.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 669.75 m 483.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 669.75 m 562.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 669.75 m 404.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 669.75 m 483.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 624.75 m 404.5 624.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 624.75 m 483.5 624.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 624.75 m 562.5 624.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 594.75 m 404.5 594.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 594.75 m 483.5 594.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 594.75 m 562.5 594.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 580.75 m 404.5 580.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 578.75 m 404.5 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 580.75 m 483.5 580.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 578.75 m 483.5 578.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 580.75 m 562.5 580.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 578.75 m 562.5 578.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.70 686.98 Td (For) Tj ET Q q 0 0 0 rg BT 352.07 686.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 366.58 686.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 379.78 686.98 Td (ee Months Ended Mar) Tj ET Q q 0 0 0 rg BT 456.30 686.98 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 358.50 673.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.50 673.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 502.90 673.98 Td (2018 vs 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 659.42 Td (Net cash provided by operating activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.00 659.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.15 659.42 Td (391,389) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.00 659.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 659.42 Td (293,716) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 659.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 659.42 Td (97,673) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 644.42 Td (Net cash used in investing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.80 644.47 Td (\(84,994) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 644.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.80 644.47 Td (\(60,386) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 644.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.80 644.47 Td (\(24,608) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 644.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 629.42 Td (Net cash used in financing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.80 629.47 Td (\(296,972) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 629.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.80 629.47 Td (\(216,781) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 629.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.80 629.47 Td (\(80,191) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 629.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 614.42 Td (Net increase in cash, cash equivalents and restricted cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.15 614.42 Td (9,423) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 614.42 Td (16,549) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 614.47 Td (\(7,126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 614.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 599.42 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 373.15 599.42 Td (79,374) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 599.42 Td (223,828) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.80 599.47 Td (\(144,454) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 599.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 584.42 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 332.00 584.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 584.42 Td (88,797) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.00 584.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 584.42 Td (240,377) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 584.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.80 584.47 Td (\(151,580) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 584.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 560.25 Td (Cash Flows Pr) Tj ET Q q 0 0 0 rg BT 109.64 560.25 Td (ovided by Operating ) Tj ET Q q 0 0 0 rg BT 194.16 560.25 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 542.25 Td (Cash flows provided by operating activities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.63 542.25 Td (increased) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.38 542.25 Td ( by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.38 542.25 Td ($97,673) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.88 542.25 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.66 542.25 Td ($391,389) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.16 542.25 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.54 542.25 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.47 542.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.35 542.25 Td (March31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 530.25 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.44 530.25 Td ($293,716) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.94 530.25 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.32 530.25 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.25 530.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.13 530.25 Td (March31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.72 530.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 506.25 Td (Our lar) Tj ET Q q 0 0 0 rg BT 106.42 506.25 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 50.00 494.25 Td (revenues.) Tj ET Q q 0 0 0 rg BT 92.86 494.25 Td (W) Tj ET Q q 0 0 0 rg BT 101.49 494.25 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 50.00 482.25 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 50.00 470.25 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 50.00 458.25 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 50.00 446.25 Td (general corporate expenditures, and compensation and related costs.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 416.25 Td (Cash Flows Used in Investing ) Tj ET Q q 0 0 0 rg BT 172.31 416.25 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 398.25 Td (Cash flows used in investing activities in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.09 398.25 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.02 398.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.90 398.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.50 398.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.94 398.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.94 398.25 Td ( were primarily due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.25 Td (additional spending to construct replacement satellites, improve our terrestrial repeater network, for capitalized software, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 374.25 Td (deferred compensation. ) Tj ET Q q 0 0 0 rg BT 148.67 374.25 Td (W) Tj ET Q q 0 0 0 rg BT 157.30 374.25 Td (e spent $35,800 and $12,100 to construct replacement satellites during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.40 374.25 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.33 374.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 362.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.60 362.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.04 362.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.04 362.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 205.70 362.25 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 332.25 Td (Cash Flows Used in Financing ) Tj ET Q q 0 0 0 rg BT 176.76 332.25 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 314.25 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 50.00 302.25 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 50.00 290.25 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 50.00 278.25 Td (purchase shares of Holdings' common stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 254.25 Td (Cash flows used in financing activities in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.19 254.25 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.12 254.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.00 254.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.60 254.25 Td ( were primarily due to the purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.25 Td (and 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 424.34 242.25 Td ($308,759) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.84 242.25 Td ( and the payment of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.25 Td (cash dividend on Holdings' common stock for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.50 230.25 Td ($49,397) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.00 230.25 Td ( partially of) Tj ET Q q 0 0 0 rg BT 315.47 230.25 Td (fset by net borrowings of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.51 230.25 Td ($65,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.01 230.25 Td ( under the Credit Facility) Tj ET Q q 0 0 0 rg BT 550.89 230.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 218.25 Td (Cash flows used in financing activities in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.19 218.25 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.12 218.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.00 218.25 Td (March31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.60 218.25 Td ( were primarily due to the purchase and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.25 Td (retirement of shares of Holdings' common stock under Holdings' repurchase program for $305,975, and the payment of a cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.25 Td (dividend of $47,137, partially of) Tj ET Q q 0 0 0 rg BT 179.79 194.25 Td (fset by net borrowings of $140,000 under the Credit Facility) Tj ET Q q 0 0 0 rg BT 420.21 194.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 182.25 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 170.25 Td (Future Liquidity and Capital Resource Requirements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 152.25 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 50.00 140.25 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 50.00 128.25 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 486.76 128.25 Td (.) Tj ET Q q 0 0 0 rg BT 493.71 128.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 128.25 Td (March31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 116.25 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 116.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 116.25 Td ($1,385,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.00 116.25 Td ( was available for future borrowing under our Credit Facility) Tj ET Q q 0 0 0 rg BT 362.33 116.25 Td (.) Tj ET Q q 0 0 0 rg BT 369.65 116.25 Td (W) Tj ET Q q 0 0 0 rg BT 378.29 116.25 Td (e believe that we have suf) Tj ET Q q 0 0 0 rg BT 481.67 116.25 Td (ficient cash and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 104.25 Td (cash equivalents as well as debt capacity to cover our estimated short-term and long-term funding needs, as well as fund ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 92.25 Td (Holdings' stock repurchases, future dividend payments on Holdings' common stock and strategic opportunities.) Tj ET Q 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 /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 742.10 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 50.00 730.10 Td (financial, competitive and other factors. ) Tj ET Q q 0 0 0 rg BT 211.70 730.10 Td (W) Tj ET Q q 0 0 0 rg BT 220.34 730.10 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 50.00 718.10 Td (expenditures to ensure that suf) Tj ET Q q 0 0 0 rg BT 172.01 718.10 Td (ficient resources are maintained.) 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 regularly evaluate our business plans and strategy) Tj ET Q q 0 0 0 rg BT 291.75 694.10 Td (. ) Tj ET Q q 0 0 0 rg BT 299.07 694.10 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 50.00 682.10 Td (and strategy) Tj ET Q q 0 0 0 rg BT 97.94 682.10 Td (, some of which may be material and significantly change our cash requirements. ) Tj ET Q q 0 0 0 rg BT 427.10 682.10 Td (These changes in our business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 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 50.00 658.10 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 50.00 646.10 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 50.00 634.10 Td (related to our satellite radio business.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.00 610.10 Td (Holdings' Capital Return Pr) Tj ET Q q 0 0 0 rg BT 181.16 610.10 Td (ogram) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 592.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.44 592.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.04 592.10 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 471.33 592.10 Td ($12,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.33 592.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 580.10 Td (Holdings common stock. ) Tj ET Q q 0 0 0 rg BT 154.72 580.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.17 580.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.76 580.10 Td (, Holdings' cumulative repurchases since December 2012 totaled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.20 580.10 Td ($9,671,848) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.20 580.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 568.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.94 568.10 Td ($2,328,152) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.94 568.10 Td ( remained available under Holdings' stock repurchase program.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 544.10 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 50.00 532.10 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 504.38 532.10 Td (filiates. ) Tj ET Q q 0 0 0 rg BT 536.42 532.10 Td (W) Tj ET Q q 0 0 0 rg BT 545.05 532.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 520.10 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 50.00 508.10 Td (borrowings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 484.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.72 484.10 Td (February28, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.32 484.10 Td (, Holdings paid a cash dividend of $0.01) Tj ET Q q 0 0 0 rg BT 327.87 484.10 Td (1 on Holdings' common stock to Holdings' stockholders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 472.10 Td (of record as of the close of business on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.01 472.10 Td (February7, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.61 472.10 Td (. Holdings' board of directors expects to declare regular quarterly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 460.10 Td (dividends, in an aggregate 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 50.00 430.10 Td (Debt Covenants) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 412.10 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 50.00 400.10 Td (covenants.) Tj ET Q q 0 0 0 rg BT 96.93 400.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.38 400.10 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.98 400.10 Td (, we were in compliance with such covenants.For a discussion of our Debt Covenants, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 388.10 Td (refer 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 50.00 358.10 Td (Of) Tj ET Q q 0 0 0 rg BT 60.37 358.10 Td (f-Balance Sheet ) Tj ET Q q 0 0 0 rg BT 128.33 358.10 Td (Arrangements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 340.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.64 340.10 Td (e do not have any significant of) Tj ET Q q 0 0 0 rg BT 212.53 340.10 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 50.00 328.10 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 467.72 328.10 Td (fect on our financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 316.10 Td (condition, results of operations, liquidity) Tj ET Q q 0 0 0 rg BT 212.11 316.10 Td (, capital expenditures or capital resources.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (Contractual Cash Commitments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 268.10 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 50.00 256.10 Td (statements in this Quarterly Report.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (Related Party T) Tj ET Q q 0 0 0 rg BT 114.06 226.10 Td (ransactions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 208.10 Td (For a discussion of Related Party ) Tj ET Q q 0 0 0 rg BT 217.24 208.10 Td (T) Tj ET Q q 0 0 0 rg BT 223.00 208.10 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 50.00 196.10 Td (this Quarterly Report.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (Critical ) Tj ET Q q 0 0 0 rg BT 83.24 166.10 Td (Accounting Policies and Estimates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 148.10 Td (For a discussion of our Critical ) Tj ET Q q 0 0 0 rg BT 208.54 148.10 Td (Accounting Policies and Estimates, refer to Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 516.37 148.10 Td (Analysis ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 136.10 Td (of Financial Condition and Results of Operations in our ) Tj ET Q q 0 0 0 rg BT 279.14 136.10 Td (Annual Report for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.75 136.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.34 136.10 Td (. ) Tj ET Q q 0 0 0 rg BT 501.66 136.10 Td (There have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 124.10 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 369.88 124.10 Td (December31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.47 124.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 106.10 Td (W) Tj ET Q q 0 0 0 rg BT 86.64 106.10 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 527.69 106.10 Td (fect of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 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 82.10 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 82.10 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 70.10 Td (to Note 2 to our unaudited consolidated financial statements of this Quarterly Report.) 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 /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 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 77 722.68505859375 m 156.46533203125 722.68505859375 l s q 0 0 0 rg BT 77.00 724.25 Td (Adjusted EBITDA) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 156.19 724.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.69 724.25 Td (- EBITDA) Tj ET Q q 0 0 0 rg BT 200.63 724.25 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 77.00 712.25 Td (and amortization. ) Tj ET Q q 0 0 0 rg BT 151.79 712.25 Td (W) Tj ET Q q 0 0 0 rg BT 160.43 712.25 Td (e adjust EBITDA) Tj ET Q q 0 0 0 rg BT 229.87 712.25 Td ( to exclude the impact of other income as well as certain other char) Tj ET Q q 0 0 0 rg BT 497.63 712.25 Td (ges discussed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 700.25 Td (below) Tj ET Q q 0 0 0 rg BT 100.79 700.25 Td (. ) Tj ET Q q 0 0 0 rg BT 107.74 700.25 Td (Adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 182.45 700.25 Td ( is a Non-GAAP) Tj ET Q q 0 0 0 rg BT 248.47 700.25 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 77.00 688.25 Td (result of the purchase price accounting for the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.54 688.25 Td ( Mer) Tj ET Q q 0 0 0 rg BT 279.51 688.25 Td (ger) Tj ET Q q 0 0 0 rg BT 291.88 688.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.88 688.25 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 77.00 676.25 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 445.04 676.25 Td (W) Tj ET Q q 0 0 0 rg BT 453.67 676.25 Td (e believe adjusted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 664.25 Td (EBITDA) Tj ET Q q 0 0 0 rg BT 113.11 664.25 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 77.00 652.25 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 510.57 652.25 Td (W) Tj ET Q q 0 0 0 rg BT 519.21 652.25 Td (e believe ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 640.25 Td (investors find this Non-GAAP) Tj ET Q q 0 0 0 rg BT 198.57 640.25 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 77.00 628.25 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 77.00 616.25 Td (media companies. ) Tj ET Q q 0 0 0 rg BT 154.02 616.25 Td (W) Tj ET Q q 0 0 0 rg BT 162.65 616.25 Td (e believe investors use adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 327.34 616.25 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 77.00 604.25 Td (investment decisions. ) Tj ET Q q 0 0 0 rg BT 167.55 604.25 Td (As a result of lar) Tj ET Q q 0 0 0 rg BT 234.01 604.25 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 77.00 592.25 Td (reflect significant char) Tj ET Q q 0 0 0 rg BT 166.77 592.25 Td (ges for depreciation expense. ) Tj ET Q q 0 0 0 rg BT 288.21 592.25 Td (W) Tj ET Q q 0 0 0 rg BT 296.84 592.25 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 77.00 580.25 Td (as it is not directly related to the operational conditions of our business. ) Tj ET Q q 0 0 0 rg BT 367.59 580.25 Td (W) Tj ET Q q 0 0 0 rg BT 376.23 580.25 Td (e also believe the exclusion of the legal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 568.25 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 77.00 556.25 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 77.00 544.25 Td (part of our normal operations for the period.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 520.25 Td (Adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 151.72 520.25 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 77.00 508.25 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 77.00 496.25 Td (accounting for the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.75 496.25 Td ( Mer) Tj ET Q q 0 0 0 rg BT 168.73 496.25 Td (ger) Tj ET Q q 0 0 0 rg BT 180.95 496.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.26 496.25 Td (W) Tj ET Q q 0 0 0 rg BT 196.90 496.25 Td (e endeavor to compensate for the limitations of the Non-GAAP) Tj ET Q q 0 0 0 rg BT 450.08 496.25 Td ( measure presented by also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 484.25 Td (providing the comparable GAAP) Tj ET Q q 0 0 0 rg BT 209.10 484.25 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 77.00 472.25 Td (including quantifying such items, to derive the Non-GAAP) Tj ET Q q 0 0 0 rg BT 313.26 472.25 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 77.00 460.25 Td (operating results after giving ef) Tj ET Q q 0 0 0 rg BT 202.33 460.25 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 77.00 448.25 Td (statements of comprehensive income. Since adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 329.16 448.25 Td ( is a Non-GAAP) Tj ET Q q 0 0 0 rg BT 395.17 448.25 Td ( financial performance measure, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 436.25 Td (calculation of adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 206.13 436.25 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 77.00 424.25 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 460.40 424.25 Td (, or superior to measures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 412.25 Td (of financial performance prepared in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 319.94 412.25 Td (. ) Tj ET Q q 0 0 0 rg BT 327.26 412.25 Td (The reconciliation of net income to the adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 557.20 412.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 400.25 Td (is calculated as follows: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.31 400.25 Td ( ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 363.75 358.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 363.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 363.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 363.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 333.75 358.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 333.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 333.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 333.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 303.75 358.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 303.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 303.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 303.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 273.75 358.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 273.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 273.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 273.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 243.75 358.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 243.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 243.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 243.75 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 407.5 376.75 m 482.5 376.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 376.75 m 486.5 376.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 376.75 m 561.5 376.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 363.75 m 482.5 363.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 363.75 m 561.5 363.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 363.75 m 482.5 363.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 363.75 m 561.5 363.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 228.75 m 482.5 228.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 228.75 m 561.5 228.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 228.75 m 482.5 228.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 214.75 m 482.5 214.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 212.75 m 482.5 212.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 228.75 m 561.5 228.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 214.75 m 561.5 214.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 212.75 m 561.5 212.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.70 380.98 Td (For) Tj ET Q q 0 0 0 rg BT 428.07 380.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 442.58 380.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 455.78 380.98 Td (ee Months Ended Mar) Tj ET Q q 0 0 0 rg BT 532.30 380.98 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.50 367.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.50 367.98 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 354.32 Td (Net income:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 353.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 353.42 Td (289,441) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 353.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 353.42 Td (207,073) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 339.32 Td (Add back items excluded from ) Tj ET Q q 0 0 0 rg BT 177.52 339.32 Td (Adjusted EBITDA:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 324.32 Td (Purchase price accounting adjustments:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 309.32 Td (Revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 308.42 Td (1,813) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 308.42 Td (1,813) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 294.32 Td (Share-based payment expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 293.42 Td (34,233) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 293.42 Td (29,446) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 279.32 Td (Depreciation and amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 278.42 Td (72,212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 278.42 Td (76,704) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 264.32 Td (Interest expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 263.42 Td (89,789) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 263.42 Td (81,657) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 249.32 Td (Other income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.80 248.47 Td (\(35,888) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 248.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 248.47 Td (\(8,863) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 248.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 234.32 Td (Income tax expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 233.42 Td (80,249) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 233.42 Td (1) Tj ET Q q 0 0 0 rg BT 530.15 233.42 Td (13,973) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 219.32 Td (Adjusted EBITDA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 218.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 218.42 Td (531,849) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 218.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 218.42 Td (501,803) 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 /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 104.7734375 740.68505859375 l s q 0 0 0 rg BT 77.00 742.25 Td (ARPU) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.77 742.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.27 742.25 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 77.00 730.25 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 386.89 730.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.39 730.25 Td (the number of months in the period, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 718.25 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 77.00 706.25 Td (the U.S. Music Royalty Fee.) Tj ET Q q 0 0 0 rg BT 195.42 706.25 Td (The ) Tj ET Q q 0 0 0 rg BT 212.92 706.25 Td (ARPU for the three months ended March 31, 2018 reflects adjustments as a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 694.25 Td (adopting the new revenue standard as of January 1, 2018. Refer to the table below the following calculation for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 682.25 Td (impact of the new standard. ) Tj ET Q q 0 0 0 rg BT 192.24 682.25 Td (ARPU is calculated as follows:) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 645.75 358.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 645.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 645.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 645.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 615.75 358.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 615.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 615.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 615.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 585.75 358.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 585.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 585.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 585.75 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 407.5 658.75 m 482.5 658.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 658.75 m 486.5 658.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 658.75 m 561.5 658.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 645.75 m 482.5 645.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 645.75 m 561.5 645.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 645.75 m 482.5 645.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 645.75 m 561.5 645.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 600.75 m 482.5 600.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 586.75 m 482.5 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 584.75 m 482.5 584.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 600.75 m 561.5 600.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 586.75 m 561.5 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 584.75 m 561.5 584.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 584.75 m 482.5 584.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 586.75 m 482.5 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 571.75 m 482.5 571.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 569.75 m 482.5 569.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 584.75 m 561.5 584.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 586.75 m 561.5 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 571.75 m 561.5 571.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 569.75 m 561.5 569.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 569.75 m 482.5 569.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 571.75 m 482.5 571.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 556.75 m 482.5 556.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 554.75 m 482.5 554.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 569.75 m 561.5 569.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 571.75 m 561.5 571.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 556.75 m 561.5 556.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 554.75 m 561.5 554.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.70 662.98 Td (For) Tj ET Q q 0 0 0 rg BT 428.07 662.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 442.58 662.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 455.78 662.98 Td (ee Months Ended Mar) Tj ET Q q 0 0 0 rg BT 532.30 662.98 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.50 649.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.50 649.98 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 635.42 Td (Subscriber revenue, excluding connected vehicle services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 635.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 635.42 Td (1,092,249) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 635.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 635.42 Td (1,058,054) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 620.42 Td (Add: advertising revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 620.42 Td (42,048) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 620.42 Td (36,016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 605.42 Td (Add: other subscription-related revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 605.42 Td (140,816) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 605.42 Td (124,468) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 590.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 590.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 590.42 Td (1,275,1) Tj ET Q q 0 0 0 rg BT 468.65 590.42 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 590.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 590.42 Td (1,218,538) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 575.42 Td (Daily weighted average number of subscribers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 575.42 Td (32,828) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 575.42 Td (31,369) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 560.42 Td (ARPU) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 560.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 560.42 Td (12.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 560.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 560.42 Td (12.95) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 532.25 Td (The table below illustrates the impact that the adoption of the new revenue standard has had on ) Tj ET Q q 0 0 0 rg BT 459.38 532.25 Td (ARPU for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.43 532.25 Td (three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 520.25 Td (months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.45 520.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.33 520.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.92 520.25 Td (.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 467.75 244.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.50 467.75 87.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 467.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 467.75 87.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 467.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 467.75 86.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 437.75 244.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.50 437.75 87.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 437.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 437.75 87.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 437.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 437.75 86.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 407.75 244.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.50 407.75 87.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.50 407.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 407.75 87.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 407.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 407.75 86.00 -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 293.5 496.75 m 380.5 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.5 496.75 m 384.5 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 496.75 m 471.5 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 496.75 m 475.5 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 496.75 m 561.5 496.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 467.75 m 380.5 467.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 467.75 m 471.5 467.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 467.75 m 561.5 467.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 467.75 m 380.5 467.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 467.75 m 471.5 467.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 467.75 m 561.5 467.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 422.75 m 380.5 422.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 408.75 m 380.5 408.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 406.75 m 380.5 406.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 422.75 m 471.5 422.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 408.75 m 471.5 408.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 406.75 m 471.5 406.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 422.75 m 561.5 422.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 408.75 m 561.5 408.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 406.75 m 561.5 406.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 393.75 m 380.5 393.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 391.75 m 380.5 391.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 406.75 m 471.5 406.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 408.75 m 471.5 408.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 393.75 m 471.5 393.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 391.75 m 471.5 391.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 393.75 m 561.5 393.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 391.75 m 561.5 391.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 391.75 m 380.5 391.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 393.75 m 380.5 393.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 378.75 m 380.5 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 376.75 m 380.5 376.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 378.75 m 471.5 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 376.75 m 471.5 376.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 378.75 m 561.5 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 376.75 m 561.5 376.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 349.70 500.98 Td (For) Tj ET Q q 0 0 0 rg BT 362.07 500.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 376.58 500.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 389.78 500.98 Td (ee Months Ended Mar) Tj ET Q q 0 0 0 rg BT 466.30 500.98 Td (ch 31, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 315.05 471.98 Td (As Reported) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 394.15 479.98 Td (Impact of ) Tj ET Q q 0 0 0 rg BT 429.03 479.98 Td (Adopting) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.15 471.98 Td (ASU 2014-09) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 487.80 487.98 Td (Balances ) Tj ET Q q 0 0 0 rg BT 519.88 487.98 Td (W) Tj ET Q q 0 0 0 rg BT 527.73 487.98 Td (ithout) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.85 479.98 Td (Adoption of ) Tj ET Q q 0 0 0 rg BT 531.08 479.98 Td (ASU) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.65 471.98 Td (2014-09) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 457.42 Td (Subscriber revenue, excluding connected vehicle services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.00 457.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.65 457.42 Td (1,092,249) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.00 457.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 457.42 Td (24,392) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 457.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 457.42 Td (1,1) Tj ET Q q 0 0 0 rg BT 530.15 457.42 Td (16,641) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 442.42 Td (Add: advertising revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.15 442.42 Td (42,048) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.65 442.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 442.42 Td (42,048) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 427.42 Td (Add: other subscription-related revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.15 427.42 Td (140,816) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.65 427.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 427.42 Td (140,816) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 412.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.00 412.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.65 412.42 Td (1,275,1) Tj ET Q q 0 0 0 rg BT 366.65 412.42 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.00 412.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 412.42 Td (24,392) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 412.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 412.42 Td (1,299,505) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 397.42 Td (Daily weighted average number of subscribers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.15 397.42 Td (32,828) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 397.42 Td (32,828) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 397.42 Td (32,828) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 382.42 Td (ARPU) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.00 382.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.15 382.42 Td (12.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.00 382.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 382.42 Td (0.25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 382.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 382.42 Td (13.20) 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 77 340.68505859375 m 213.748046875 340.68505859375 l s q 0 0 0 rg BT 77.00 342.25 Td (A) Tj ET Q q 0 0 0 rg BT 83.48 342.25 Td (verage self-pay monthly churn) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 213.75 342.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.25 342.25 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 77.00 330.25 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 77 304.68505859375 m 341.51904296875 304.68505859375 l s q 0 0 0 rg BT 77.00 306.25 Td (Customer) Tj ET Q q 0 0 0 rg BT 119.03 306.25 Td ( service and billing expenses, per) Tj ET Q q 0 0 0 rg BT 258.29 306.25 Td ( average subscriber) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.43 306.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.93 306.25 Td (- is derived from total customer service and billing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 294.25 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 77.00 282.25 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 543.64 282.25 Td (W) Tj ET Q q 0 0 0 rg BT 552.28 282.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 270.25 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 77.00 258.25 Td (average subscriber) Tj ET Q q 0 0 0 rg BT 151.28 258.25 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 77.00 246.25 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 77.00 234.25 Td (expenses, per average subscriber) Tj ET Q q 0 0 0 rg BT 207.65 234.25 Td (, is calculated as follows:) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 197.75 358.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 197.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 197.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 197.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 167.75 358.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 167.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 167.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 167.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 137.75 358.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 137.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 137.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 137.75 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 407.5 210.75 m 482.5 210.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 210.75 m 486.5 210.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 210.75 m 561.5 210.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 197.75 m 482.5 197.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 197.75 m 561.5 197.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 197.75 m 482.5 197.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 197.75 m 561.5 197.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 167.75 m 482.5 167.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 153.75 m 482.5 153.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 151.75 m 482.5 151.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 167.75 m 561.5 167.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 153.75 m 561.5 153.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 151.75 m 561.5 151.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 151.75 m 482.5 151.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 153.75 m 482.5 153.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 138.75 m 482.5 138.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 136.75 m 482.5 136.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 138.75 m 561.5 138.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 136.75 m 561.5 136.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 123.75 m 482.5 123.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 121.75 m 482.5 121.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 123.75 m 561.5 123.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 121.75 m 561.5 121.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.70 214.98 Td (For) Tj ET Q q 0 0 0 rg BT 428.07 214.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 442.58 214.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 455.78 214.98 Td (ee Months Ended Mar) Tj ET Q q 0 0 0 rg BT 532.30 214.98 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.50 201.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.50 201.98 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 187.42 Td (Customer service and billing expenses, excluding connected vehicle services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 187.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 187.42 Td (87,733) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 187.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 187.42 Td (92,120) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 172.42 Td (Less: share-based payment expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.80 172.47 Td (\(1,064) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 172.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 172.47 Td (\(1,01) Tj ET Q q 0 0 0 rg BT 552.63 172.47 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 172.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 157.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 157.42 Td (86,669) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 157.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 157.42 Td (91,109) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 142.42 Td (Daily weighted average number of subscribers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 142.42 Td (32,828) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 142.42 Td (31,369) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 127.42 Td (Customer service and billing expenses, per average subscriber) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 127.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 127.42 Td (0.88) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 127.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.15 127.42 Td (0.97) 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 /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 49.50 477.75 358.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 477.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 477.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 477.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 448.75 358.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 448.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 448.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 448.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 418.75 358.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 418.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 418.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 418.75 75.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 389.75 358.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 389.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 389.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 389.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 359.75 358.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 359.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 359.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 359.75 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 407.5 490.75 m 482.5 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 490.75 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 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 407.5 477.75 m 482.5 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 477.75 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 407.5 477.75 m 482.5 477.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 477.75 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 407.5 344.75 m 482.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 330.75 m 482.5 330.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 328.75 m 482.5 328.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 344.75 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 486.5 330.75 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 486.5 328.75 m 561.5 328.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.70 494.98 Td (For) Tj ET Q q 0 0 0 rg BT 428.07 494.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 442.58 494.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 455.78 494.98 Td (ee Months Ended Mar) Tj ET Q q 0 0 0 rg BT 532.30 494.98 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.50 481.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.50 481.98 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 410.00 453.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 453.42 Td (391,389) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 453.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 453.42 Td (293,716) 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 410.00 438.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.80 438.47 Td (\(84,994) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 438.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 438.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 438.47 Td (\(60,386) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 438.42 Td (\)) 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 410.00 423.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.80 423.47 Td (\(296,972) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 423.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 423.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 423.47 Td (\(216,781) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 423.42 Td (\)) 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 410.00 394.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 394.42 Td (391,389) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 394.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 394.42 Td (293,716) 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 451.15 379.42 Td (23,309) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 379.42 Td (15,609) 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 447.80 364.47 Td (\(81,405) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 364.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 364.47 Td (\(53,365) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 364.42 Td (\)) 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 452.80 349.47 Td (\(6,831) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 349.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 349.47 Td (\(7,021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 349.42 Td (\)) 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 410.00 334.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 334.42 Td (326,462) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 334.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 334.42 Td (248,939) 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 Sirius XM's consolidated statements of cash flows. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.20 306.25 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.13 306.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.01 306.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.61 306.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 294.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.94 294.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.94 294.25 Td (, this included payments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.48 294.25 Td ($23,309) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.98 294.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.41 294.25 Td ($15,609) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.91 294.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 352.58 294.25 Td (, for taxes paid in lieu of shares issued for stock-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 282.25 Td (based compensation. ) Tj ET Q q 0 0 0 rg BT 156.13 282.25 Td (These equity-related transactions are classified as Cash flows used in financing activities within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 270.25 Td (Holdings' 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 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 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 months ended March31, 2018 reflects adjustments as a result of adopting the new revenue standard as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 694.25 Td (January 1, 2018. Refer to the table below the following calculation for the impact of the new standard. SAC, per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 682.25 Td (installation, is calculated as follows:) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 645.75 358.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 645.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 645.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 645.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 615.75 358.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 615.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 615.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 615.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 585.75 358.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 585.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 585.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 585.75 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 407.5 658.75 m 482.5 658.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 658.75 m 486.5 658.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 658.75 m 561.5 658.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 645.75 m 482.5 645.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 645.75 m 561.5 645.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 645.75 m 482.5 645.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 645.75 m 561.5 645.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 615.75 m 482.5 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 601.75 m 482.5 601.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 599.75 m 482.5 599.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 615.75 m 561.5 615.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 601.75 m 561.5 601.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 599.75 m 561.5 599.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 586.75 m 482.5 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 584.75 m 482.5 584.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 586.75 m 561.5 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 584.75 m 561.5 584.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 571.75 m 482.5 571.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 569.75 m 482.5 569.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 571.75 m 561.5 571.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 569.75 m 561.5 569.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.70 662.98 Td (For) Tj ET Q q 0 0 0 rg BT 428.07 662.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 442.58 662.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 455.78 662.98 Td (ee Months Ended Mar) Tj ET Q q 0 0 0 rg BT 532.30 662.98 Td (ch 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.50 649.98 Td (2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.50 649.98 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 636.32 Td (Subscriber acquisition costs, excluding connected vehicle services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 635.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 635.42 Td (122,693) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 635.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 635.42 Td (127,488) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 620.42 Td (Less: mar) Tj ET Q q 0 0 0 rg BT 90.97 620.42 Td (gin from sales of radios and accessories, excluding connected vehicle services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.80 620.47 Td (\(27,458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 620.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 620.47 Td (\(22,746) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 620.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 605.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 605.42 Td (95,235) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 605.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 605.42 Td (104,742) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 591.32 Td (Installations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 590.42 Td (3,380) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 590.42 Td (3,584) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 576.32 Td (SAC, per installation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 575.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 575.42 Td (28.18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 575.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 575.42 Td (29.22) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 547.25 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 50.00 535.25 Td (the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.22 535.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.72 535.25 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.65 535.25 Td ( ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.53 535.25 Td (March31, 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.13 535.25 Td (.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 482.75 273.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.50 482.75 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 482.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 482.75 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 482.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.50 482.75 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 442.75 273.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.50 442.75 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 442.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 442.75 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 442.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.50 442.75 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 412.75 273.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.50 412.75 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.50 412.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 412.75 77.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 412.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.50 412.75 77.00 -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 322.5 511.75 m 399.5 511.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399.5 511.75 m 403.5 511.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 511.75 m 480.5 511.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 511.75 m 484.5 511.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484.5 511.75 m 561.5 511.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322.5 482.75 m 399.5 482.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 482.75 m 480.5 482.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484.5 482.75 m 561.5 482.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322.5 482.75 m 399.5 482.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 482.75 m 480.5 482.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484.5 482.75 m 561.5 482.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322.5 442.75 m 399.5 442.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322.5 428.75 m 399.5 428.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322.5 426.75 m 399.5 426.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 442.75 m 480.5 442.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 428.75 m 480.5 428.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 426.75 m 480.5 426.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484.5 442.75 m 561.5 442.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484.5 428.75 m 561.5 428.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484.5 426.75 m 561.5 426.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322.5 413.75 m 399.5 413.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322.5 411.75 m 399.5 411.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 413.75 m 480.5 413.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 411.75 m 480.5 411.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484.5 413.75 m 561.5 413.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484.5 411.75 m 561.5 411.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322.5 398.75 m 399.5 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322.5 396.75 m 399.5 396.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 398.75 m 480.5 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403.5 396.75 m 480.5 396.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484.5 398.75 m 561.5 398.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484.5 396.75 m 561.5 396.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 364.20 515.98 Td (For) Tj ET Q q 0 0 0 rg BT 376.57 515.98 Td ( the ) Tj ET Q q 0 0 0 rg BT 391.08 515.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 404.28 515.98 Td (ee Months Ended Mar) Tj ET Q q 0 0 0 rg BT 480.80 515.98 Td (ch 31, 2018) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.05 486.98 Td (As Reported) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 408.15 494.98 Td (Impact of ) Tj ET Q q 0 0 0 rg BT 443.03 494.98 Td (Adopting) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.15 486.98 Td (ASU 2014-09) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.30 502.98 Td (Balances ) Tj ET Q q 0 0 0 rg BT 524.38 502.98 Td (W) Tj ET Q q 0 0 0 rg BT 532.23 502.98 Td (ithout) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 493.35 494.98 Td (Adoption of ) Tj ET Q q 0 0 0 rg BT 535.58 494.98 Td (ASU) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.15 486.98 Td (2014-09) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 473.32 Td (Subscriber acquisition costs, excluding connected vehicle services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.00 472.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 472.42 Td (122,693) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.00 472.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 472.42 Td (1,046) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.00 472.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 472.42 Td (123,739) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 457.42 Td (Less: mar) Tj ET Q q 0 0 0 rg BT 90.97 457.42 Td (gin from sales of radios and accessories, excluding) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 447.42 Td (connected vehicle services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.80 447.47 Td (\(27,458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 447.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 447.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 447.47 Td (\(27,458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 447.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.00 432.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.15 432.42 Td (95,235) Tj ET Q BT 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