Reference no: EM131329090
Assignment
The company that I chose to research came to me on the way home from work this week while sitting in traffic. A string of several ads came on the radio and got a little frustrated that my Christmas tunes were so rudely interrupted. I switched over to Sirius radio to see if I could find their Holiday station quickly. Sirius XM Radio starts with ‘S'... I wonder if they have any subsidiaries...turns out they do and quite a few assets that surprised me.
Sirius XM Holdings Inc is a "controlled company" meaning that Liberty Media Corporation owns over 50% of their outstanding shares. Liberty Media owns interest in a range of media, communication and entertainment based companies. Sirius XM Radio is one of them. In 2013, however, Sirius acquired all outstanding shares in a vehicle based business called Agero, Inc. To account for this transaction, Sirius used the acquisition method of accounting. This resulted in a net decrease in the purchase price and therefore no increase to goodwill was accounted for in the transaction. This is only one of the subsidiaries for Sirius XM Holdings. The other subsidiaries include:
Satellite CD Radio LLC
Sirius XM Connected Vehicle Services Inc.
Sirius XM Connected Vehicle Services Holdings, Inc
SXM CVS Canada Inc.
XM Emall Inc.
XM 1500 Eckington LLC
XM Investment LLC
XM Radio LLC
Sirius XM also holds equity investment in a related party, Sirius XM Canada (37% equity interest). Sirius XM provides "programming and content services to Sirius XM Canada and are reimbursed rom Sirius XM Canada for certain product development cost, production of chipset radios, as well as for information technology and streaming support costs." (Sirius XM Holdings Inc., 2015 10-K)
Sirius XM Radio reported Goodwill ($2,205,107) in its 2015 balance sheet and further notess that the company is not aware of any impairment loss and therefore has not accounted for any losses in the current year. Notes to the financial statements add that the company has not recorded any impairment losses in prior years 2014 or 2013. There was a "Purchase price accounting adjustments to goodwill in 2014 totaling $1,698.
On a side note, I learned that Sirius XM Holdings, owns 8 operating satellites. A few of these are scheduled to come offline and de-orbit since their operational lives have pasted. Other assets include broadcast studio equipment and satellite telemetry, tracking and control facilities.
Sirius XM Holdings Inc. (12/31/2015) Form 10-K Annual Report (Filing Date 2/2/2016) EDGAR Database System Retrieved online from https://www.sec.gov/Archives/edgar/data/908937/000156459016012174/siri-10k_20151231.htm