Document and Entity Information - shares |
9 Months Ended | |
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Sep. 30, 2018 |
Oct. 22, 2018 |
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Document And Entity Information [Abstract] | ||
Entity Registrant Name | SIRIUS XM HOLDINGS INC. | |
Entity Central Index Key | 0000908937 | |
Trading Symbol | SIRI | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 4,441,648,517 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
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Revenue: | ||||
Total revenue | $ 1,467,383 | $ 1,379,596 | $ 4,274,784 | $ 4,021,231 |
Cost of services: | ||||
Subscriber acquisition costs | 109,469 | 119,555 | 351,940 | 372,197 |
Sales and marketing | 118,280 | 114,519 | 344,426 | 318,135 |
Engineering, design and development | 31,011 | 29,433 | 89,133 | 81,033 |
General and administrative | 85,821 | 83,187 | 263,110 | 245,995 |
Depreciation and amortization | 75,510 | 79,913 | 222,345 | 230,136 |
Total operating expenses | 984,826 | 945,631 | 3,007,009 | 2,777,073 |
Income from operations | 482,557 | 433,965 | 1,267,775 | 1,244,158 |
Other income (expense): | ||||
Interest expense | (86,218) | (92,634) | (262,924) | (257,085) |
Loss on extinguishment of debt | 0 | (43,679) | 0 | (43,679) |
Other income (expense) | (41,766) | 86,971 | 82,334 | 83,897 |
Total other income (expense) | (127,984) | (49,342) | (180,590) | (216,867) |
Income before income taxes | 354,573 | 384,623 | 1,087,185 | 1,027,291 |
Income tax expense | (11,525) | (108,901) | (162,344) | (342,387) |
Net income | 343,048 | 275,722 | 924,841 | 684,904 |
Foreign currency translation adjustment, net of tax | 7,854 | 3,680 | (9,972) | 6,426 |
Total comprehensive income | $ 350,902 | $ 279,402 | $ 914,869 | $ 691,330 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 0.08 | $ 0.06 | $ 0.21 | $ 0.15 |
Diluted (in dollars per share) | $ 0.07 | $ 0.06 | $ 0.20 | $ 0.14 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 4,473,652 | 4,618,368 | 4,482,249 | 4,660,041 |
Diluted (in shares) | 4,574,487 | 4,704,571 | 4,586,346 | 4,734,841 |
Dividends declared per common share (in dollars per share) | $ 0.011 | $ 0.010 | $ 0.033 | $ 0.03 |
Subscriber revenue | ||||
Revenue: | ||||
Total revenue | $ 1,162,439 | $ 1,136,027 | $ 3,418,485 | $ 3,325,295 |
Advertising revenue | ||||
Revenue: | ||||
Total revenue | 46,187 | 41,462 | 135,477 | 117,656 |
Equipment | ||||
Revenue: | ||||
Total revenue | 40,699 | 32,337 | 112,628 | 91,669 |
Cost of services: | ||||
Cost of services | 6,572 | 8,254 | 21,343 | 24,537 |
Music royalty fee and other revenue | ||||
Revenue: | ||||
Total revenue | 218,058 | 169,770 | 608,194 | 486,611 |
Revenue share and royalties | ||||
Cost of services: | ||||
Cost of services | 343,015 | 296,498 | 1,057,431 | 866,691 |
Programming and content | ||||
Cost of services: | ||||
Cost of services | 96,256 | 98,239 | 302,742 | 290,038 |
Customer service and billing | ||||
Cost of services: | ||||
Cost of services | 94,626 | 94,655 | 284,073 | 286,754 |
Satellite and transmission | ||||
Cost of services: | ||||
Cost of services | $ 24,266 | $ 21,378 | $ 70,466 | $ 61,557 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Sep. 30, 2018 |
Dec. 31, 2017 |
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Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 9,000,000,000 | 9,000,000,000 |
Common stock, shares issued (in shares) | 4,450,181,000 | 4,530,928,000 |
Common stock, shares outstanding (in shares) | 4,449,194,000 | 4,527,742,000 |
Treasury stock (in shares) | 987,000 | 3,186,000 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Dec. 31, 2016 |
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Statement of Cash Flows [Abstract] | ||||||||
Cash and cash equivalents | $ 46,044 | $ 69,022 | $ 73,553 | $ 213,939 | ||||
Restricted cash included in Prepaid expenses and other current assets | 150 | 244 | 385 | 0 | ||||
Restricted cash included in Other long-term assets | 10,789 | 10,108 | 9,889 | 9,889 | ||||
Cash, cash equivalents and restricted cash at end of period | $ 56,983 | [1] | $ 79,374 | $ 83,827 | [1] | $ 223,828 | ||
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Business & Basis of Presentation |
9 Months Ended |
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Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business & Basis of Presentation | Business & Basis of Presentation This Quarterly Report on Form 10-Q presents information for Sirius XM Holdings Inc. (“Holdings”). The terms “Holdings,” “we,” “us,” “our,” and “our company” as used herein, and unless otherwise stated or indicated by context, refer to Sirius XM Holdings Inc. and its subsidiaries, and “Sirius XM” refers to our wholly-owned subsidiary Sirius XM Radio Inc. Holdings has no operations independent of its wholly-owned subsidiary, Sirius XM. Business We transmit music, sports, entertainment, comedy, talk, news, traffic and weather channels, as well as infotainment services, in the United States on a subscription fee basis through our two proprietary satellite radio systems, and a larger set of music and other channels, SiriusXM On Demand featuring recent and archived shows, and SiriusXM Video, through our streaming service, available online and through applications for mobile devices, home devices and other consumer electronic equipment. We also provide connected vehicle services. Our connected vehicle services are designed to enhance the safety, security and driving experience for vehicle operators while providing marketing and operational benefits to automakers and their dealers. We have agreements with every major automaker (“OEMs”) to offer satellite radio in their vehicles, through which we acquire the majority of our subscribers. We also acquire subscribers through marketing to owners and lessees of previously owned vehicles that include factory-installed satellite radios that are not currently subscribing to our services. Our satellite radios are primarily distributed through automakers, retailers, and our website. Satellite radio services are also offered to customers of certain rental car companies. Our primary source of revenue is subscription fees, with most of our customers subscribing to monthly, quarterly, semi-annual or annual plans. We offer discounts for prepaid, longer-term subscription plans, as well as a multiple subscription discount. We also derive revenue from certain fees, the sale of advertising on select non-music channels, the direct sale of satellite radios and accessories, and other ancillary services, such as our weather, traffic and data services. In many cases, a subscription to our radio services is included with the purchase of new or previously owned vehicles. The length of these subscriptions varies but is typically three to twelve months. We receive payments for these subscriptions from certain automakers. We also reimburse various automakers for certain costs associated with satellite radios installed in new vehicles and pay revenue share to various automakers. On September 23, 2018, Holdings entered into an agreement to acquire Pandora Media, Inc. (“Pandora”) in an all-stock transaction initially valued at $3.5 billion. In connection with the acquisition, each outstanding share of Pandora common stock, par value $0.0001 per share, will be converted into the right to receive 1.44 shares of Holdings common stock, par value $0.001 per share. The transaction is conditioned upon the vote of holders of a majority of the combined voting power of the outstanding shares of Pandora common stock and the outstanding shares of Pandora’s Series A Preferred Stock, voting together as a single class, in favor of the adoption of the merger agreement. In addition, the completion of the transaction is subject to other customary conditions, including, among others, (i) the waiting period applicable to the merger under the Hart-Scott-Rodino Antitrust Improvements Act has expired or been terminated, (ii) the decisions, orders, consents or expiration of any waiting periods required by the competition laws of other countries and jurisdictions, (iii) the absence of any law or order that prohibits or makes illegal the merger and (iv) subject to certain exceptions, the accuracy of the representations and warranties of each party and compliance by the parties with their respective covenants. The transaction is expected to close in the first quarter of 2019. Refer to Note 10 for more information on this transaction. As of September 30, 2018, Liberty Media Corporation (“Liberty Media”) beneficially owned, directly and indirectly, approximately 71% of the outstanding shares of our common stock. As a result, we are a “controlled company” for the purposes of the NASDAQ corporate governance requirements. Basis of Presentation The accompanying unaudited consolidated financial statements of Holdings and its subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain numbers in our prior period consolidated financial statements and footnotes have been reclassified or consolidated to conform to our current period presentation. All significant intercompany transactions have been eliminated in consolidation. In the opinion of our management, all normal recurring adjustments necessary for a fair presentation of our unaudited consolidated financial statements as of September 30, 2018 and for the three and nine months ended September 30, 2018 and 2017 have been made. Interim results are not necessarily indicative of the results that may be expected for a full year. This Quarterly Report on Form 10-Q should be read together with our Annual Report on Form 10-K for the year ended December 31, 2017, which was filed with the SEC on January 31, 2018. Public companies are required to disclose certain information about their reportable operating segments. Operating segments are defined as significant components of an enterprise for which separate financial information is available and is evaluated on a regular basis by the chief operating decision maker in deciding how to allocate resources to an individual segment and in assessing performance of the segment. We have determined that we have one reportable segment as our chief operating decision maker, our Chief Executive Officer, assesses performance and allocates resources based on the consolidated results of operations of our business. We have evaluated events subsequent to the balance sheet date and prior to the filing of this Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2018 and have determined that no events have occurred that would require adjustment to our unaudited consolidated financial statements. For a discussion of subsequent events that do not require adjustment to our unaudited consolidated financial statements refer to Note 16. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes. Estimates, by their nature, are based on judgment and available information. Actual results could differ materially from those estimates. Significant estimates inherent in the preparation of the accompanying unaudited consolidated financial statements include asset impairment, depreciable lives of our satellites, share-based payment expense, and income taxes. |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Fair Value Measurements For assets and liabilities required to be reported at fair value, GAAP provides a hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are based on unadjusted quoted prices in active markets for identical instruments. Level 2 inputs are inputs, other than quoted market prices included within Level 1, that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. As of September 30, 2018 and December 31, 2017, the carrying amounts of cash and cash equivalents, receivables, and accounts payable approximated fair value due to the short-term nature of these instruments. Our assets and liabilities measured at fair value were as follows:
Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income of $12,448 was primarily comprised of the cumulative foreign currency translation adjustments related to our investment in and loan to Sirius XM Canada Holdings Inc. (“Sirius XM Canada”) (refer to Note 10 for additional information). During the three and nine months ended September 30, 2018, we recorded foreign currency translation adjustment income (loss) of $7,854 and $(9,972) net of tax benefit (expense) of $(2,491) and $3,244, respectively. In addition, we reclassified stranded tax effects of $4,013 related to the adoption of Accounting Standards Update ("ASU") 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, during the nine months ended September 30, 2018. Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The implementation costs incurred in a hosting arrangement that is a service contract should be presented as a prepaid asset in the balance sheet and expensed over the term of the hosting arrangement to the same line item in the statement of income as the costs related to the hosting fees. The guidance in this ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted including adoption in any interim period. The amendments should be applied either retrospectively or prospectively to all implementation costs incurred after adoption. This ASU will not have a material impact on our unaudited consolidated statements of operations. In February 2016, FASB issued ASU 2016-02, Leases (Topic 842). This ASU requires a company to recognize lease assets and liabilities arising from operating leases in the statement of financial position. This ASU does not significantly change the previous lease guidance for how a lessee should recognize the recognition, measurement, and presentation of expenses and cash flows arising from a lease. Additionally, the criteria for classifying a finance lease versus an operating lease are substantially the same as the previous guidance. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) Targeted Improvements, amending certain aspects of the new leasing standard. The amendment allows an additional optional transition method whereby an entity records a cumulative effect adjustment to opening retained earnings in the year of adoption without restating prior periods. We plan to adopt this ASU on January 1, 2019 and elect the additional transition method and do not expect to record a cumulative effect adjustment to opening Accumulated deficit. We expect the adoption of ASU 2016-02 will result in the recognition of right-of-use assets and lease liabilities on our consolidated balance sheets for operating leases and will not materially impact our consolidated statements of operations or our debt. Recently Adopted Accounting Policies ASU 2014-09, Revenue - Revenue from Contracts with Customers. In May 2014, the FASB issued ASU 2014-09 which requires entities to recognize revenues when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. We adopted ASU 2014-09, and all related amendments, which established ASC Topic 606 (the "new revenue standard"), effective as of January 1, 2018. We adopted the new revenue standard using the modified retrospective method by recognizing the cumulative effect of initially applying the new revenue standard to all non-completed contracts as of January 1, 2018 as an adjustment to opening Accumulated deficit in the period of adoption. Results for reporting periods beginning after January 1, 2018 are presented under the new revenue standard, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. The new revenue standard primarily impacts how we account for revenue share payments and also has other immaterial impacts. Revenue Share - Paid Trials We previously recorded revenue share related to paid trials as Revenue share and royalties expense. Under the new revenue standard, we have recorded these revenue share payments as a reduction to revenue as the payments do not transfer a distinct good or service to us. Prior to the adoption, we recognized revenue share related to paid trial subscriptions as the Current portion of deferred revenue. Under the new revenue standard, we reclassified the revenue share related to paid trial subscriptions existing as of the date of adoption from Current portion of deferred revenue to Accounts payable and accrued expenses. For new paid trial subscriptions, the net amount of the paid trial subscription is recorded as deferred revenue and the portion of revenue share is recorded to Accounts payable and accrued expenses. Other Impacts Other impacts of the new revenue standard include:
These changes do not have a material impact to our financial statements. ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. In February 2018, the FASB issued ASU 2018-02 to amend its standard on comprehensive income to provide an option for an entity to reclassify the stranded tax effects of the Tax Cuts and Jobs Act (the “Tax Act”) that was passed in December 2017 from accumulated other comprehensive income (“AOCI”) directly to retained earnings. The stranded tax effects result from the remeasurement of deferred tax assets and liabilities which were originally recorded in comprehensive income but whose remeasurement is reflected in the income statement. The guidance is effective for interim and fiscal years beginning after December 15, 2018, with early adoption permitted. We elected to adopt ASU 2018-02 effective January 1, 2018 and reclassified the stranded tax effects due to the Tax Act of $4,013 related to the currency translation adjustment from our investment balance and note receivable with Sirius XM Canada from AOCI to Accumulated deficit. The adoption did not have any impact on our unaudited consolidated statement of comprehensive income. ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. In June 2018, the FASB issued ASU 2018-07 which simplifies the accounting for share-based payments made to nonemployees so that the accounting for such payments is substantially the same as those made to employees, with certain exceptions. Under this ASU, equity-classified share based awards to nonemployees will be measured at fair value on the grant date of the awards, entities will need to assess the probability of satisfying performance conditions if any are present, and awards will continue to be classified according to ASC 718 upon vesting which eliminates the need to reassess classification upon vesting, consistent with awards granted to employees, unless the award is modified after the service has been rendered, any other conditions necessary to earn the right to benefit from the instruments have been satisfied, and the nonemployee is no longer providing services. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. We elected to early adopt ASU 2018-07 effective July 1, 2018 and remeasured our unsettled liability-classified nonemployee awards at their January 1, 2018 fair value by recording a retrospective cumulative effect adjustment to opening Accumulated deficit and reclassified our previously liability-classified awards to equity. The cumulative effects of the changes made to our consolidated balance sheet as of January 1, 2018 for the adoption of ASU 2014-09, ASU 2018-02 and ASU 2018-07 are included in the table below.
The following tables illustrate the impacts of adopting ASU 2014-09 on our unaudited consolidated statement of comprehensive income.
ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This ASU updates the guidance related to the statement of cash flows and requires that the statement include restricted cash with cash and cash equivalents when reconciling beginning and ending cash. The guidance was effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. We adopted this ASU effective January 1, 2018. As a result of the adoption, we have added restricted cash to the reconciliation of beginning and ending cash and cash equivalents and included a reconciliation of total cash, cash equivalents and restricted cash to the balance sheet for each period presented in the unaudited consolidated statements of cash flows. |
Revenues |
9 Months Ended |
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Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Adoption of the new revenue standard We adopted the new revenue standard using the modified retrospective method by recognizing the cumulative effect of initially applying the new revenue standard to all non-completed contracts as of January 1, 2018 as an adjustment to opening Accumulated deficit in the period of adoption. Results for reporting periods beginning after January 1, 2018 are presented under the new revenue standard, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC Topic 605. Disaggregation of Revenue We disaggregate our revenues as shown in the unaudited consolidated statements of comprehensive income. Nature of goods and services The following is a description of principal activities from which we generate our revenue, including from subscribers, advertising, and sales of equipment. Subscriber Revenue Subscriber revenue consists primarily of subscription fees and other ancillary subscription based revenues. Revenue is recognized on a straight line basis when the performance obligations to provide each service for the period are satisfied, which is over time as our subscription services are continuously transmitted and can be consumed by customers at any time. Consumers purchasing or leasing a vehicle with a factory-installed satellite radio typically receive between a three and twelve month subscription to our service. In certain cases, the subscription fees for these consumers are prepaid by the applicable automaker. Prepaid subscription fees received from certain automakers or directly from consumers are recorded as deferred revenue and amortized to revenue ratably over the service period which commences upon sale and activation. Activation fees are recognized over one month as the activation fees are non-refundable and do not provide for a material right to the customer. There is no revenue recognized for unpaid trial subscriptions. In some cases we pay a loyalty fee to the OEM when we receive a certain amount of payments from self-pay customers acquired from that OEM. These fees are considered incremental costs to obtain a contract and are, therefore, recognized as an asset and amortized to Subscriber acquisition costs over an average subscriber life of that OEM. Revenue share and loyalty fees paid to the OEM offering a paid trial are accounted for as a reduction of revenue as the payment does not provide a distinct good or service. Advertising Revenue We recognize revenue from the sale of advertising as performance obligations are satisfied upon airing of the advertising; therefore, revenue is recognized at a point in time when each advertising spot is transmitted. Agency fees are calculated based on a stated percentage applied to gross billing revenue for our advertising inventory and are reported as a reduction of advertising revenue. Additionally, we pay certain third parties a percentage of advertising revenue. Advertising revenue is recorded gross of such revenue share payments as we control the advertising service, including the ability to establish pricing, and we are primarily responsible for providing the service. Advertising revenue share payments are recorded to Revenue share and royalties during the period in which the advertising is transmitted. Equipment Revenue Equipment revenue and royalties from the sale of satellite radios, components and accessories are recognized when the performance obligation is satisfied and control is transferred, which is generally upon shipment. Revenue is recognized net of discounts and rebates. Music Royalty Fee and Other Revenue Music Royalty Fee and Other Revenue primarily consists of U.S. music royalty fees ("MRF"). The related costs we incur for the right to broadcast music and other programming are recorded as Revenue share and royalties expense. Fees received from subscribers for the MRF are recorded as deferred revenue and amortized to revenue ratably over the service period as the royalties relate to the subscription services which are continuously delivered to our customers. Deferred Revenue Customers pay for the services in advance of the performance obligation and therefore these prepayments are recorded as deferred revenue. The deferred revenue is recognized as revenue in our unaudited consolidated statement of comprehensive income as the services are provided. Changes in the liability balance during the period ended September 30, 2018 was not materially impacted by other factors. Transaction Price Allocated to the Remaining Performance Obligations As the majority of our contracts are one year or less, we have utilized the optional exemption under ASC 606-10-50-14 and will not disclose information about the remaining performance obligations for contracts which have original expected durations of one year or less. As of September 30, 2018, less than ten percent of our total deferred revenue balance related to contracts that extended beyond one year. These contracts primarily include prepaid data trials which are typically provided for three to five years as well as for self-pay customers who prepay for their audio subscriptions for up to three years in advance. These amounts will be recognized on a straight-line basis as our services are provided. |
Earnings per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share | Earnings per Share Basic net income per common share is calculated by dividing the income available to common stockholders by the weighted average common shares outstanding during each reporting period. Diluted net income per common share adjusts the weighted average number of common shares outstanding for the potential dilution that could occur if common stock equivalents (stock options and restricted stock units) were exercised or converted into common stock, calculated using the treasury stock method. We had no participating securities during the three and nine months ended September 30, 2018 and 2017. Common stock equivalents of 21,821 and 54,555 for the three months ended September 30, 2018 and 2017, respectively, and 13,897 and 42,481 for the nine months ended September 30, 2018 and 2017, respectively, were excluded from the calculation of diluted net income per common share as the effect would have been anti-dilutive.
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Receivables, net |
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Receivables, net | Receivables, net Receivables, net, includes customer accounts receivable, receivables from distributors and other receivables. Customer accounts receivable, net, includes receivables from our subscribers and other customers, including advertising, and is stated at amounts due, net of an allowance for doubtful accounts. Our allowance for doubtful accounts is based upon our assessment of various factors. We consider historical experience, the age of the receivable balances, current economic conditions and other factors that may affect the counterparty’s ability to pay. Bad debt expense is included in Customer service and billing expense in our unaudited consolidated statements of comprehensive income. Receivables from distributors primarily include billed and unbilled amounts due from OEMs for services included in the sale or lease price of vehicles, as well as billed amounts due from wholesale distributors of our satellite radios. Other receivables primarily include amounts due from manufacturers of our radios, modules and chipsets where we are entitled to subsidies and royalties based on the number of units produced. We have not established an allowance for doubtful accounts for our receivables from distributors or other receivables as we have historically not experienced any significant collection issues with OEMs or other third parties. Receivables, net, consists of the following:
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Inventory, net |
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Inventory, net | Inventory, net Inventory consists of finished goods, refurbished goods, chipsets and other raw material components used in manufacturing radios and connected vehicle devices. Inventory is stated at the lower of cost or market. We record an estimated allowance for inventory that is considered slow moving or obsolete or whose carrying value is in excess of net realizable value. The provision related to products purchased for resale in our direct to consumer distribution channel and components held for resale by us is reported as a component of Cost of equipment in our unaudited consolidated statements of comprehensive income. The provision related to inventory consumed in our OEM channel is reported as a component of Subscriber acquisition costs in our unaudited consolidated statements of comprehensive income. Inventory, net, consists of the following:
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Goodwill |
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Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the estimated fair value of the net tangible and identifiable intangible assets acquired in business combinations. Our annual impairment assessment of our single reporting unit is performed as of the fourth quarter of each year, and an assessment is performed at other times if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. ASC 350, Intangibles - Goodwill and Other, states that an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. ASC 350 also states that a reporting unit with a zero or negative carrying amount is not required to perform a qualitative assessment. The carrying amount recorded for our one reporting unit and goodwill was $(1,375,375) and $2,289,985, respectively, as of September 30, 2018. We recorded $3,403 to Goodwill related to an immaterial acquisition during the three months ended September 30, 2018. As of September 30, 2018, there were no indicators of impairment, and no impairment losses were recorded for goodwill during the three and nine months ended September 30, 2018 and 2017. As of September 30, 2018, the cumulative balance of goodwill impairments recorded since the July 2008 merger (the “Merger”) between our wholly owned subsidiary, Vernon Merger Corporation, and XM Satellite Radio Holdings Inc. (“XM”), was $4,766,190, which was recognized during the year ended December 31, 2008. |
Intangible Assets |
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Intangible Assets | Intangible Assets Our intangible assets include the following:
Indefinite Life Intangible Assets We have identified our FCC licenses and the XM and Automatic Labs Inc. trademarks as indefinite life intangible assets after considering the expected use of the assets, the regulatory and economic environment within which they are used and the effects of obsolescence on their use. We hold FCC licenses to operate our satellite digital audio radio service and provide ancillary services. Each of the FCC licenses authorizes us to use radio spectrum, a reusable resource that does not deplete or exhaust over time. Our annual impairment assessment of our identifiable indefinite life intangible assets is performed as of the fourth quarter of each year. An assessment is performed at other times if an event occurs or circumstances change that would more likely than not reduce the fair value of the asset below its carrying value. If the carrying value of the intangible assets exceeds its fair value, an impairment loss is recognized. As of September 30, 2018, there were no indicators of impairment, and no impairment loss was recognized for intangible assets with indefinite lives during the three and nine months ended September 30, 2018 and 2017. Definite Life Intangible Assets Amortization expense for all definite life intangible assets was $5,738 and $7,966 for the three months ended September 30, 2018 and 2017, respectively, and $17,462 and $31,592 for the nine months ended September 30, 2018 and 2017, respectively. We retired definite lived intangible assets of $390,043 during the nine months ended September 30, 2018 primarily related to fully amortized subscriber relationships. There were no retirements of definite lived intangible assets during the nine months ended September 30, 2017. The expected amortization expense for the remaining period in 2018, each of the fiscal years 2019 through 2022 and for periods thereafter is as follows:
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Property and Equipment |
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Property and Equipment | Property and Equipment Property and equipment, net, consists of the following:
Construction in progress consists of the following:
Depreciation and amortization expense on property and equipment was $69,772 and $71,947 for the three months ended September 30, 2018 and 2017, respectively, and $204,883 and $198,544 for the nine months ended September 30, 2018 and 2017, respectively. We retired property and equipment of $77,040 during the nine months ended September 30, 2017. There were no retirements of property and equipment during the nine months ended September 30, 2018. We capitalize a portion of the interest on funds borrowed to finance the construction and launch of our satellites. Capitalized interest is recorded as part of the asset’s cost and depreciated over the satellite’s useful life. Capitalized interest costs were $3,097 and $1,324 for the three months ended September 30, 2018 and 2017, respectively, and $8,252 and $3,047 for the nine months ended September 30, 2018 and 2017, respectively, which related to the construction of our SXM-7 and SXM-8 satellites. Satellites As of September 30, 2018, we owned a fleet of five satellites. The chart below provides certain information on our satellites as of September 30, 2018:
Each satellite requires an FCC license and prior to the expiration of each license, we are required to apply for a renewal of the FCC satellite licenses. The renewal and extension of our licenses is reasonably certain at minimal cost, which is expensed as incurred. We submitted our renewal application for the XM-5 license during the third quarter. The following table outlines the years in which each of our satellite licenses expires:
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Related Party Transactions |
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Related Party Transactions | Related Party Transactions In the normal course of business, we enter into transactions with related parties such as Liberty Media, Sirius XM Canada and Pandora. Liberty Media As of September 30, 2018, Liberty Media beneficially owned, directly and indirectly, approximately 71% of the outstanding shares of our common stock. Liberty Media has two executives and one of its directors on our board of directors. Gregory B. Maffei, the President and Chief Executive Officer of Liberty Media, is the Chairman of our board of directors. Sirius XM Canada On May 25, 2017, Sirius XM completed a recapitalization of Sirius XM Canada (the “Transaction”), which is now a privately held corporation. Following the Transaction, Sirius XM holds a 70% equity interest and 33% voting interest in Sirius XM Canada, with the remainder of the voting power and equity interests held by two of Sirius XM Canada’s previous shareholders. The total consideration from Sirius XM to Sirius XM Canada, excluding transaction costs, during the year ended December 31, 2017 was $308,526, which included $129,676 in cash and we issued 35,000 shares of our common stock with an aggregate value of $178,850 to the holders of the shares of Sirius XM Canada acquired in the Transaction. Sirius XM received common stock, non-voting common stock and preferred stock of Sirius XM Canada. We own 590,950 shares of preferred stock of Sirius XM Canada, which has a liquidation preference of one Canadian dollar per share. In connection with the Transaction, Sirius XM also made a contribution in the form of a loan to Sirius XM Canada in the aggregate amount of $130,794. The loan is denominated in Canadian dollars and is considered a long-term investment with any unrealized gains or losses reported within Accumulated other comprehensive (loss) income. The loan has a term of fifteen years, bears interest at a rate of 7.62% per annum and includes customary covenants and events of default, including an event of default relating to Sirius XM Canada’s failure to maintain specified leverage ratios. The terms of the loan require Sirius XM Canada to prepay a portion of the outstanding principal amount of the loan within sixty days of the end of each fiscal year in an amount equal to any cash on hand in excess of C$10,000 at the last day of the financial year if all target dividends have been paid in full. During the nine months ended September 30, 2018, Sirius XM Canada repaid $3,242 of the principal amount of the loan. In connection with the Transaction, Sirius XM also entered into a Services Agreement and an Advisory Services Agreement with Sirius XM Canada. Each agreement has a thirty year term. Pursuant to the Services Agreement, Sirius XM Canada pays Sirius XM 25% of its gross revenues on a monthly basis through December 31, 2021 and 30% of its gross revenues on a monthly basis thereafter. Pursuant to the Advisory Services Agreement, Sirius XM Canada pays Sirius XM 5% of its gross revenues on a monthly basis. These agreements superseded and replaced the former agreements between Sirius XM Canada and its predecessors and Sirius XM. Sirius XM Canada is accounted for as an equity method investment, and its results are not consolidated in our unaudited consolidated financial statements. Sirius XM Canada does not meet the requirements for consolidation as we do not have the ability to direct the most significant activities that impact Sirius XM Canada's economic performance. We had the following related party balances associated with Sirius XM Canada:
As of September 30, 2018 and December 31, 2017, our related party current asset balance included amounts due under the Services Agreement and Advisory Services Agreement and certain amounts related to transactions outside the scope of the new services arrangements. Our related party long-term assets balance as of September 30, 2018 and December 31, 2017 included the carrying value of our investment balance in Sirius XM Canada of $331,231 and $341,214, respectively, and, as of September 30, 2018 and December 31, 2017, also included $133,157 and $140,073, respectively, for the long-term value of the outstanding loan to Sirius XM Canada. Our related party liabilities as of each of September 30, 2018 and December 31, 2017 included $2,776 for the current portion of deferred revenue and $3,006 and $5,088, respectively, for the long-term portion of deferred revenue recorded as of the Merger date related to agreements with legacy XM Canada, now Sirius XM Canada. These costs are being amortized on a straight line basis through 2020. Sirius XM Canada paid gross dividends to us of $402 during the three months ended September 30, 2018 and $1,840 and $3,796 during the nine months ended September 30, 2018 and 2017, respectively. Sirius XM Canada did not pay any dividends to us during the three months ended September 30, 2017. Dividends are first recorded as a reduction to our investment balance in Sirius XM Canada to the extent a balance exists and then as Other income for any remaining portion. We recorded the following revenue and other income associated with Sirius XM Canada in our unaudited consolidated statements of comprehensive income:
Pandora On September 22, 2017, Sirius XM completed a $480,000 investment in Pandora in which Sirius XM purchased 480 shares of Pandora’s Series A Convertible Preferred Stock, par value $0.0001 per share (the “Series A Preferred Stock”). As of September 30, 2018, the Series A Preferred Stock, including accrued but unpaid dividends, represents a stake of approximately 18% of Pandora's common stock outstanding and approximately a 15% interest on an as-converted basis. Pandora operates an internet-based music discovery platform, offering a personalized experience for listeners. The Series A Preferred Stock is convertible at the option of the holders at any time into shares of common stock of Pandora (“Pandora Common Stock”) at an initial conversion price of $10.50 per share of Pandora Common Stock and an initial conversion rate of 95.2381 shares of Pandora Common Stock per share of Series A Preferred Stock, subject to certain customary anti-dilution adjustments. Holders of the Series A Preferred Stock are entitled to a cumulative dividend at the rate of 6.0% per annum, payable quarterly in arrears, if and when declared. Pandora has the option to pay dividends in cash or accumulate dividends in lieu of paying cash. Any conversion of Series A Preferred Stock may be settled by Pandora, at its option, in shares of Pandora Common Stock, cash or any combination thereof. However, unless and until Pandora’s stockholders have approved the issuance of greater than 19.99% of the outstanding Pandora Common Stock, the Series A Preferred Stock may not be converted into more than 19.99% of Pandora’s outstanding Pandora Common Stock as of June 9, 2017. The liquidation preference of the Series A Preferred Stock, including accrued dividends of $33,270, was $513,270 as of September 30, 2018. As the investment includes a conversion option, we have elected to account for this investment under the fair value option to reduce the accounting asymmetry that would otherwise arise when recognizing the changes in the fair value of available-for-sale investments. Under the fair value option, any gains (losses) associated with the change in fair value will be recognized in Other income within our unaudited consolidated statements of comprehensive income. In connection with the acquisition of Pandora, the Series A Preferred Stock will be canceled as part of the proposed transaction. The cancellation of the Series A Preferred Stock as part of the proposed transaction has reduced the value of the Pandora investment as compared to the prior quarter. We recognized a $43,569 unrealized loss and $73,880 unrealized gain during the three and nine months ended September 30, 2018, respectively, and a $72,245 unrealized gain during the three and nine months ended September 30, 2017 as Other income in our unaudited consolidated statements of comprehensive income for this investment. The fair value of our investment in Pandora, including accrued dividends, as of September 30, 2018 and December 31, 2017 was $554,352 and $480,472, respectively, and is recorded as a related party long-term asset within our unaudited consolidated balance sheets. This investment does not meet the requirements for the equity method of accounting as it does not qualify as in-substance common stock. On September 23, 2018, Holdings entered into an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”), by and among Holdings, Pandora and White Oaks Acquisition Corp., pursuant to which, subject to the terms and conditions of the Merger Agreement, Holdings agreed to acquire Pandora (such transaction, the “Merger”). Pursuant to the Merger, each outstanding share of Pandora Common Stock, will be converted into the right to receive 1.44 shares (the “Exchange Ratio”) of Holdings common stock, par value $0.001 per share (“Holdings Common Stock”). Further, pursuant to the Merger:
The Merger Agreement contains customary representations and warranties from both Holdings and Pandora, and each party has agreed to customary covenants, including covenants relating to the conduct of Holdings’ and Pandora’s businesses during the period between the execution of the Merger Agreement and the closing of the Merger. In the case of Pandora, such obligations include its agreement to call a meeting of its stockholders to adopt the Merger Agreement, and, subject to certain exceptions, to recommend that its stockholders adopt the Merger Agreement. During the period beginning on the date of the Merger Agreement and ending at 12:01 A.M. (New York City time) on October 24, 2018 (the “No-Shop Period Start Date”), Pandora has the right to (i) initiate, solicit, facilitate and encourage any inquiry or the making of any proposal or offer that constitutes, or could reasonably be expected to lead to, a competing acquisition proposal, (ii) furnish to any person that is party to an acceptable confidentiality agreement any information which is reasonably requested by any person in connection with their potentially making a competing acquisition proposal and (iii) participate or engage in discussions or negotiations with such person regarding a competing acquisition proposal. On the No-Shop Period Start Date, Pandora will cease such activities, and will be subject to further restrictions, including that it will not (i) solicit proposals or offers that constitute, or could reasonably be expected to lead to, a competing acquisition proposal or (ii) engage in any discussions or negotiations regarding a competing acquisition proposal. However, prior to obtaining stockholder approval, Pandora may engage in the foregoing activities with any third party that provides Pandora with a competing acquisition proposal after the execution of the Merger Agreement and prior to the No-Shop Period Start Date (an “Excluded Party”), which acquisition proposal the Pandora board of directors determines in good faith prior to the No-Shop Period Start Date is or would reasonably be expected to lead to a superior proposal, unless such proposal is withdrawn or, in the good faith determination of the Pandora board of directors, no longer is or would reasonably be expected to lead to a superior proposal. Furthermore, Pandora can also engage in such activities with any third party that provides to Pandora an unsolicited bona fide written competing acquisition proposal, if the Pandora board of directors determines in good faith that such acquisition proposal constitutes, or is reasonably likely to result in, a superior proposal. Prior to the approval of the Merger Agreement by the Pandora stockholders, the Pandora board of directors may change its recommendation that the Pandora stockholders adopt the Merger Agreement if the Pandora board of directors receives a superior proposal or if there is an intervening event, but only if certain conditions are satisfied with respect thereto and Pandora complies with its obligations in respect thereof. The Pandora stockholders will be asked to vote on the adoption of the Merger Agreement at a special stockholder meeting that will be held on a date to be announced. The Merger is conditioned upon the vote of holders of a majority of the combined voting power of the outstanding shares of Pandora Common Stock and the outstanding shares of Series A Preferred Stock, voting together as a single class, in favor of the adoption of the Merger Agreement. Holdings has agreed to vote or cause to be voted all of the shares owned beneficially or of record by Holdings or its affiliates. In addition to the stockholder approval described above, the completion of the Merger is subject to other customary conditions, including, among others, (i) the waiting period applicable to the Merger under the Hart-Scott-Rodino Antitrust Improvements Act has expired or been terminated, (ii) the decisions, orders, consents or expiration of any waiting periods required by the competition laws of other countries and jurisdictions, (iii) the absence of any law or order that prohibits or makes illegal the Merger and (iv) subject to certain exceptions, the accuracy of the representations and warranties of each party and compliance by the parties with their respective covenants. It is intended that the Merger qualifies as a "reorganization" within the meaning of Section 368(a) of the Internal Revenue Code of 1986 for Federal income tax purposes. However, if either Pandora or Holdings are unable to receive an opinion of counsel to that effect, the parties have agreed to restructure the Merger so that the Merger will be treated as a taxable stock sale. The Merger Agreement provides certain termination rights for both Holdings and Pandora, including the right of Pandora, prior to the adoption of the Merger Agreement by the Pandora stockholders, to terminate the Merger Agreement in order to enter into an agreement with respect to a superior proposal, so long as Pandora complies with certain notice and other requirements set forth in the Merger Agreement. In connection with any such termination and under other specified circumstances, Pandora must pay Holdings a termination fee of $105,000; provided that if, subject to specified limitations, Pandora terminates the Merger Agreement to accept a superior proposal with an Excluded Party by 11:59 P.M. (New York City time) on November 22, 2018, Pandora will pay Holdings a termination fee of $52,500. |
Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Our debt as of September 30, 2018 and December 31, 2017 consisted of the following:
Covenants and Restrictions Under the Credit Facility, Sirius XM, our wholly-owned subsidiary, must comply with a debt maintenance covenant that it cannot exceed a total leverage ratio, calculated as consolidated total debt to consolidated operating cash flow, of 5.0 to 1.0. The Credit Facility generally requires compliance with certain covenants that restrict Sirius XM's ability to, among other things, (i) incur additional indebtedness, (ii) incur liens, (iii) pay dividends or make certain other restricted payments, investments or acquisitions, (iv) enter into certain transactions with affiliates, (v) merge or consolidate with another person, (vi) sell, assign, lease or otherwise dispose of all or substantially all of Sirius XM's assets, and (vii) make voluntary prepayments of certain debt, in each case subject to exceptions. The indentures governing Sirius XM's notes restrict Sirius XM's non-guarantor subsidiaries' ability to create, assume, incur or guarantee additional indebtedness without such non-guarantor subsidiary guaranteeing each such series of notes on a pari passu basis. The indentures governing the notes also contain covenants that, among other things, limit Sirius XM's ability and the ability of its subsidiaries to create certain liens; enter into sale/leaseback transactions; and merge or consolidate. Under Sirius XM's debt agreements, the following generally constitute an event of default: (i) a default in the payment of interest; (ii) a default in the payment of principal; (iii) failure to comply with covenants; (iv) failure to pay other indebtedness after final maturity or acceleration of other indebtedness exceeding a specified amount; (v) certain events of bankruptcy; (vi) a judgment for payment of money exceeding a specified aggregate amount; and (vii) voidance of subsidiary guarantees, subject to grace periods where applicable. If an event of default occurs and is continuing, our debt could become immediately due and payable. At September 30, 2018 and December 31, 2017, we were in compliance with our debt covenants. |
Stockholders' Equity |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity Common Stock, par value $0.001 per share We are authorized to issue up to 9,000,000 shares of common stock. There were 4,450,181 and 4,530,928 shares of common stock issued and 4,449,194 and 4,527,742 shares outstanding on September 30, 2018 and December 31, 2017, respectively. As of September 30, 2018, there were 278,575 shares of common stock reserved for issuance in connection with outstanding stock based awards to be granted to members of our board of directors, employees and third parties. Quarterly Dividends During the nine months ended September 30, 2018, our board of directors declared the following dividends:
Stock Repurchase Program As of September 30, 2018, our board of directors had approved for repurchase an aggregate of $12,000,000 of our common stock. Our board of directors did not establish an end date for this stock repurchase program. Shares of common stock may be purchased from time to time on the open market, pursuant to pre-set trading plans meeting the requirements of Rule 10b5-1 under the Exchange Act, in privately negotiated transactions, including transactions with Liberty Media and its affiliates, or otherwise. As of September 30, 2018, our cumulative repurchases since December 2012 under our stock repurchase program totaled 2,577,852 shares for $10,028,012, and $1,971,988 remained available for future share repurchases under our stock repurchase program. The following table summarizes our total share repurchase activity for the nine months ended:
Preferred Stock, par value $0.001 per share We are authorized to issue up to 50,000 shares of undesignated preferred stock with a liquidation preference of $0.001 per share. There were no shares of preferred stock issued or outstanding as of September 30, 2018 and 2017. |
Benefit Plans |
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Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans We recognized share-based payment expense of $29,405 and $34,891 for the three months ended September 30, 2018 and 2017, respectively, and $99,853 and $94,588 for the nine months ended September 30, 2018 and 2017, respectively. Due to the adoption of ASU 2018-07, the share-based payment expense for the three months ended September 30, 2018 includes a cumulative retrospective benefit of $4,704 which relates to the six months ended June 30, 2018. 2015 Long-Term Stock Incentive Plan In May 2015, our stockholders approved the Sirius XM Holdings Inc. 2015 Long-Term Stock Incentive Plan (the “2015 Plan”). Employees, consultants and members of our board of directors are eligible to receive awards under the 2015 Plan. The 2015 Plan provides for the grant of stock options, restricted stock awards, restricted stock units and other stock-based awards that the compensation committee of our board of directors deems appropriate. Stock-based awards granted under the 2015 Plan are generally subject to a graded vesting requirement, which is generally three to four years from the grant date. Stock options generally expire ten years from the date of grant. Restricted stock units include performance-based restricted stock units (“PRSUs”), the vesting of which are subject to the achievement of performance goals and the employee's continued employment and generally cliff vest on the third anniversary of the grant date. Each restricted stock unit entitles the holder to receive one share of common stock upon vesting. As of September 30, 2018, 157,212 shares of common stock were available for future grants under the 2015 Plan. Other Plans We maintain three other share-based benefit plans — the Sirius XM Radio Inc. 2009 Long-Term Stock Incentive Plan, the XM 2007 Stock Incentive Plan and the Amended and Restated Sirius Satellite Radio 2003 Long-Term Stock Incentive Plan. Excluding dividend equivalent units granted as a result of a declared dividend, no further awards may be made under these plans. The following table summarizes the weighted-average assumptions used to compute the fair value of options granted to employees and members of our board of directors:
There were no options granted to third parties during the three and nine months ended September 30, 2018 and 2017. The following table summarizes stock option activity under our share-based plans for the nine months ended September 30, 2018:
The weighted average grant date fair value per share of stock options granted during the nine months ended September 30, 2018 was $1.48. The total intrinsic value of stock options exercised during the nine months ended September 30, 2018 and 2017 was $205,963 and $148,133, respectively. During the nine months ended September 30, 2018 the number of net settled shares which were issued as a result of stock option exercises was 18,510. We recognized share-based payment expense associated with stock options of $11,504 and $21,454 for the three months ended September 30, 2018 and 2017, respectively, and $51,939 and $61,091 for the nine months ended September 30, 2018 and 2017, respectively. The following table summarizes the restricted stock unit, including PRSU, activity under our share-based plans for the nine months ended September 30, 2018:
The total intrinsic value of restricted stock units, including PRSUs, vesting during the nine months ended September 30, 2018 and 2017 was $75,762 and $46,920, respectively. During the nine months ended September 30, 2018, the number of net settled shares which were issued as a result of restricted stock units vesting totaled 6,659. During the nine months ended September 30, 2018, we granted 3,780 PRSUs to certain employees. We believe it is probable that the performance target applicable to these PRSUs will be achieved. In connection with the cash dividends paid during the nine months ended September 30, 2018, we granted 180 restricted stock units, including PRSUs, in accordance with the terms of existing award agreements. These grants did not result in any additional incremental share-based payment expense being recognized during the nine months ended September 30, 2018. We recognized share-based payment expense associated with restricted stock units, including PRSUs, of $17,901 and $13,437 for the three months ended September 30, 2018 and 2017, respectively, and $47,914 and $33,497 for the nine months ended September 30, 2018 and 2017, respectively. Total unrecognized compensation costs related to unvested share-based payment awards for stock options and restricted stock units, including PRSUs, granted to employees, members of our board of directors and third parties at September 30, 2018 and December 31, 2017 was $274,610 and $241,521, respectively. The total unrecognized compensation costs at September 30, 2018 are expected to be recognized over a weighted-average period of 1.84 years. 401(k) Savings Plan Sirius XM sponsors the Sirius XM Radio Inc. 401(k) Savings Plan (the “Sirius XM Plan”) for eligible employees. The Sirius XM Plan allows eligible employees to voluntarily contribute from 1% to 50% of their pre-tax eligible earnings, subject to certain defined limits. We match 50% of an employee’s voluntary contributions per pay period on the first 6% of an employee’s pre-tax salary up to a maximum of 3% of eligible compensation. We may also make additional discretionary matching, true-up matching and non-elective contributions to the Sirius XM Plan. Employer matching contributions under the Sirius XM Plan vest at a rate of 33.33% for each year of employment and are fully vested after three years of employment for all current and future contributions. Our cash employer matching contributions are not used to purchase shares of our common stock on the open market, unless the employee elects our common stock as their investment option for this contribution. We recognized $1,956 and $1,775 in expense during three months ended September 30, 2018 and 2017, respectively, and $5,984 and $5,292 in expense during the nine months ended September 30, 2018 and 2017, respectively, in connection with the Sirius XM Plan. Sirius XM Holdings Inc. Deferred Compensation Plan In 2015, we adopted the Sirius XM Holdings Inc. Deferred Compensation Plan (the “DCP”). The DCP allows members of our board of directors and certain eligible employees to defer all or a portion of their base salary, cash incentive compensation and/or board of directors’ cash compensation, as applicable. Pursuant to the terms of the DCP, we may elect to make additional contributions beyond amounts deferred by participants, but we are under no obligation to do so. We have established a grantor (or “rabbi”) trust to facilitate the payment of our obligations under the DCP. Contributions to the DCP, net of withdrawals, for the three months ended September 30, 2018 and 2017 were $236 and $240, respectively, and for the nine months ended September 30, 2018 and 2017 were $7,374 and $7,595, respectively. As of September 30, 2018 and December 31, 2017, the fair value of the investments held in the trust were $23,398 and $14,641, respectively, which is included in Other long-term assets in our unaudited consolidated balance sheets and classified as trading securities. Trading gains and losses associated with these investments are recorded in Other income within our unaudited consolidated statements of comprehensive income. The associated liability is recorded within Other long-term liabilities in our unaudited consolidated balance sheets, and any increase or decrease in the liability is recorded in General and administration expense within our unaudited consolidated statements of comprehensive income. For the three and nine months ended September 30, 2018 and 2017, we recorded an immaterial amount of unrealized gains on investments held in the trust. |
Commitments and Contingencies |
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Commitments and Contingencies | Commitments and Contingencies The following table summarizes our expected contractual cash commitments as of September 30, 2018:
Debt obligations. Debt obligations include principal payments on outstanding debt and capital lease obligations. Cash interest payments. Cash interest payments include interest due on outstanding debt and capital lease payments through maturity. Satellite and transmission. We have entered into agreements with several third parties to design, build, launch and insure two satellites, SXM-7 and SXM-8. We also have entered into agreements with third parties to operate and maintain satellite telemetry, tracking and control facilities and certain components of our terrestrial repeater networks. Programming and content. We have entered into various programming and content agreements. Under the terms of these agreements, our obligations include fixed payments, advertising commitments and revenue sharing arrangements. In certain of these agreements, the future revenue sharing costs are dependent upon many factors and are difficult to estimate; therefore, they are not included in our minimum contractual cash commitments. Sales and marketing. We have entered into various marketing, sponsorship and distribution agreements to promote our brand and are obligated to make payments to sponsors, retailers, automakers and radio manufacturers under these agreements. Certain programming and content agreements also require us to purchase advertising on properties owned or controlled by the licensors. Satellite incentive payments. Boeing Satellite Systems International, Inc., the manufacturer of certain of our in-orbit satellites, may be entitled to future in-orbit performance payments upon XM-3 and XM-4 meeting their fifteen-year design life, which we expect to occur. Boeing may also be entitled to up to $10,000 of additional incentive payments if our XM-4 satellite continues to operate above baseline specifications during the five years beyond the satellite’s fifteen-year design life, which is currently not expected to occur. Space Systems/Loral, the manufacturer of certain of our in-orbit satellites, may be entitled to future in-orbit performance payments upon XM-5, SIRIUS FM-5 and SIRIUS FM-6 meeting their fifteen-year design life, which we expect to occur. Operating lease obligations. We have entered into both cancelable and non-cancelable operating leases for office space, equipment and terrestrial repeaters. These leases provide for minimum lease payments, additional operating expense charges, leasehold improvements and rent escalations that have initial terms ranging from one to fifteen years, and certain leases have options to renew. The effect of the rent holidays and rent concessions are recognized on a straight-line basis over the lease term, including reasonably assured renewal periods. Royalties and other. We have entered into certain music royalty arrangements that include fixed payments. We have also entered into various agreements with third parties for general operating purposes. The cost of our common stock acquired in our stock repurchase program but not paid for as of September 30, 2018 was also included in this category. In addition to the minimum contractual cash commitments described above, we have entered into other variable cost arrangements. These future costs are dependent upon many factors and are difficult to anticipate; however, these costs may be substantial. We may enter into additional programming, distribution, marketing and other agreements that contain similar variable cost provisions. We also have a surety bond of approximately $45,000 primarily used as security against non-performance in the normal course of business. We do not have any other significant off-balance sheet financing arrangements that are reasonably likely to have a material effect on our financial condition, results of operations, liquidity, capital expenditures or capital resources. Legal Proceedings In the ordinary course of business, we are a defendant or party to various claims and lawsuits, including those discussed below. We record a liability when we believe that it is both probable that a liability will be incurred, and the amount of loss can be reasonably estimated. We evaluate developments in legal matters that could affect the amount of liability that has been previously accrued and make adjustments as appropriate. Significant judgment is required to determine both probability and the estimated amount of a loss or potential loss. We may be unable to reasonably estimate the reasonably possible loss or range of loss for a particular legal contingency for various reasons, including, among others, because: (i) the damages sought are indeterminate; (ii) the proceedings are in the relative early stages; (iii) there is uncertainty as to the outcome of pending proceedings (including motions and appeals); (iv) there is uncertainty as to the likelihood of settlement and the outcome of any negotiations with respect thereto; (v) there remain significant factual issues to be determined or resolved; (vi) the relevant law is unsettled; or (vii) the proceedings involve novel or untested legal theories. In such instances, there may be considerable uncertainty regarding the ultimate resolution of such matters, including the likelihood or magnitude of a possible eventual loss, if any. SoundExchange Royalty Claims. On June 7, 2018, Sirius XM entered into an agreement with SoundExchange, Inc., the organization that collects and distributes sound recording royalties pursuant to our statutory license, to settle the cases titled SoundExchange, Inc. v. Sirius XM Radio, Inc., No.13-cv-1290-RJL (D.D.C.), and SoundExchange, Inc. v. Sirius XM Radio, Inc., No.17-cv-02666-RJL (D.D.C.). A description of these actions is contained in our prior public filings. In connection with the settlement, we made a one-time lump sum payment of $150,000 to SoundExchange on July 6, 2018. The settlement resolved all outstanding claims, including ongoing audits, under our statutory license for sound recordings for the period January 1, 2007 through December 31, 2017. Telephone Consumer Protection Act Suits. On March 13, 2017, Thomas Buchanan, individually and on behalf of all others similarly situated, filed a class action complaint against us in the United States District Court for the Northern District of Texas, Dallas Division. The plaintiff in this action alleges that we violated the Telephone Consumer Protection Act of 1991 (the “TCPA”) by, among other things, making telephone solicitations to persons on the National Do-Not-Call registry, a database established to allow consumers to exclude themselves from telemarketing calls unless they consent to receive the calls in a signed, written agreement, and making calls to consumers in violation of our internal Do-Not-Call registry. The plaintiff is seeking various forms of relief, including statutory damages of five hundred dollars for each violation of the TCPA or, in the alternative, treble damages of up to fifteen hundred dollars for each knowing and willful violation of the TCPA and a permanent injunction prohibiting us from making, or having made, any calls to land lines that are listed on the National Do-Not-Call registry or our internal Do-Not-Call registry. The plaintiff has filed a motion seeking class certification, and that motion is pending. We believe we have substantial defenses to the claims asserted in this action, and we intend to defend this action vigorously. Other Matters. In the ordinary course of business, we are a defendant in various other lawsuits and arbitration proceedings, including derivative actions; actions filed by subscribers, both on behalf of themselves and on a class action basis; former employees; parties to contracts or leases; and owners of patents, trademarks, copyrights or other intellectual property. None of these other matters, in our opinion, is likely to have a material adverse effect on our business, financial condition or results of operations. |
Income Taxes |
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Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We file a consolidated federal income tax return for all of our wholly-owned subsidiaries, including Sirius XM. For the three months ended September 30, 2018 and 2017, income tax expense was $11,525 and $108,901, respectively, and $162,344 and $342,387 for the nine months ended September 30, 2018 and 2017, respectively. Our effective tax rate for the three months ended September 30, 2018 and 2017 was 3.3% and 28.3%, respectively. Our effective tax rate for the nine months ended September 30, 2018 and 2017 was 14.9% and 33.3%, respectively. The effective tax rate for the three and nine months ended September 30, 2018 was primarily impacted by the reduced federal income tax rate as a result of the Tax Cut and Jobs Act (the "Tax Act"), the recognition of excess tax benefits related to share based compensation and a benefit related to state research and development credits. The effective tax rate for the three and nine months ended September 30, 2017 was impacted by the recognition of excess tax benefits related to share based compensation and a benefit related to a federal tax credit under the Protecting Americans from Tax Hikes Act of 2015 for research and development activities. We estimate our effective tax rate for the year ending December 31, 2018 will be approximately 17%. Our accounting for the federal rate reduction under the Tax Act is complete. The Tax Act has significant complexity and implementation guidance from the Internal Revenue Service and clarifications of state tax law, among other things, could impact our accounting for provisions of the Tax Act other than the federal rate reduction within the measurement period as defined in the SEC's Staff Accounting Bulletin No. 118 ("SAB 118"). As such, any resulting potential adjustments within the measurement period remain open under SAB 118. We do not believe potential adjustments in future periods will materially impact our financial condition or results of operations. As of September 30, 2018 and December 31, 2017, we had a valuation allowance related to deferred tax assets of $65,878 and $52,883, respectively, that were not likely to be realized due to certain net operating loss limitations, including tax credits, and acquired net operating losses that were not more likely than not going to be utilized. |
Subsequent Events |
9 Months Ended |
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Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Capital Return Program During the period from October 1, 2018 to October 22, 2018, we repurchased 7,902 shares of our common stock on the open market for an aggregate purchase price of $48,882, including fees and commissions. On October 9, 2018, our board of directors declared a quarterly dividend on our common stock in the amount of $0.0121 per share of common stock payable on November 30, 2018 to stockholders of record as of the close of business on November 9, 2018. Pandora Acquisition The required notification and report under the Hart-Scott-Rodino Antitrust Act was filed on Thursday, October 18, 2018, the “go shop” period under the Merger Agreement expired on Wednesday, October 24, 2018 at 12:01 a.m., and we continue to expect the transaction to close in the first quarter of 2019. |
Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | The accompanying unaudited consolidated financial statements of Holdings and its subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain numbers in our prior period consolidated financial statements and footnotes have been reclassified or consolidated to conform to our current period presentation. |
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Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes. Estimates, by their nature, are based on judgment and available information. Actual results could differ materially from those estimates. Significant estimates inherent in the preparation of the accompanying unaudited consolidated financial statements include asset impairment, depreciable lives of our satellites, share-based payment expense, and income taxes. |
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Recent Accounting Pronouncements and Recently Adopted Accounting Policies | In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The implementation costs incurred in a hosting arrangement that is a service contract should be presented as a prepaid asset in the balance sheet and expensed over the term of the hosting arrangement to the same line item in the statement of income as the costs related to the hosting fees. The guidance in this ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted including adoption in any interim period. The amendments should be applied either retrospectively or prospectively to all implementation costs incurred after adoption. This ASU will not have a material impact on our unaudited consolidated statements of operations. In February 2016, FASB issued ASU 2016-02, Leases (Topic 842). This ASU requires a company to recognize lease assets and liabilities arising from operating leases in the statement of financial position. This ASU does not significantly change the previous lease guidance for how a lessee should recognize the recognition, measurement, and presentation of expenses and cash flows arising from a lease. Additionally, the criteria for classifying a finance lease versus an operating lease are substantially the same as the previous guidance. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) Targeted Improvements, amending certain aspects of the new leasing standard. The amendment allows an additional optional transition method whereby an entity records a cumulative effect adjustment to opening retained earnings in the year of adoption without restating prior periods. We plan to adopt this ASU on January 1, 2019 and elect the additional transition method and do not expect to record a cumulative effect adjustment to opening Accumulated deficit. We expect the adoption of ASU 2016-02 will result in the recognition of right-of-use assets and lease liabilities on our consolidated balance sheets for operating leases and will not materially impact our consolidated statements of operations or our debt. Recently Adopted Accounting Policies ASU 2014-09, Revenue - Revenue from Contracts with Customers. In May 2014, the FASB issued ASU 2014-09 which requires entities to recognize revenues when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. We adopted ASU 2014-09, and all related amendments, which established ASC Topic 606 (the "new revenue standard"), effective as of January 1, 2018. We adopted the new revenue standard using the modified retrospective method by recognizing the cumulative effect of initially applying the new revenue standard to all non-completed contracts as of January 1, 2018 as an adjustment to opening Accumulated deficit in the period of adoption. Results for reporting periods beginning after January 1, 2018 are presented under the new revenue standard, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. The new revenue standard primarily impacts how we account for revenue share payments and also has other immaterial impacts. Revenue Share - Paid Trials We previously recorded revenue share related to paid trials as Revenue share and royalties expense. Under the new revenue standard, we have recorded these revenue share payments as a reduction to revenue as the payments do not transfer a distinct good or service to us. Prior to the adoption, we recognized revenue share related to paid trial subscriptions as the Current portion of deferred revenue. Under the new revenue standard, we reclassified the revenue share related to paid trial subscriptions existing as of the date of adoption from Current portion of deferred revenue to Accounts payable and accrued expenses. For new paid trial subscriptions, the net amount of the paid trial subscription is recorded as deferred revenue and the portion of revenue share is recorded to Accounts payable and accrued expenses. Other Impacts Other impacts of the new revenue standard include:
These changes do not have a material impact to our financial statements. ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. In February 2018, the FASB issued ASU 2018-02 to amend its standard on comprehensive income to provide an option for an entity to reclassify the stranded tax effects of the Tax Cuts and Jobs Act (the “Tax Act”) that was passed in December 2017 from accumulated other comprehensive income (“AOCI”) directly to retained earnings. The stranded tax effects result from the remeasurement of deferred tax assets and liabilities which were originally recorded in comprehensive income but whose remeasurement is reflected in the income statement. The guidance is effective for interim and fiscal years beginning after December 15, 2018, with early adoption permitted. We elected to adopt ASU 2018-02 effective January 1, 2018 and reclassified the stranded tax effects due to the Tax Act of $4,013 related to the currency translation adjustment from our investment balance and note receivable with Sirius XM Canada from AOCI to Accumulated deficit. The adoption did not have any impact on our unaudited consolidated statement of comprehensive income. ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. In June 2018, the FASB issued ASU 2018-07 which simplifies the accounting for share-based payments made to nonemployees so that the accounting for such payments is substantially the same as those made to employees, with certain exceptions. Under this ASU, equity-classified share based awards to nonemployees will be measured at fair value on the grant date of the awards, entities will need to assess the probability of satisfying performance conditions if any are present, and awards will continue to be classified according to ASC 718 upon vesting which eliminates the need to reassess classification upon vesting, consistent with awards granted to employees, unless the award is modified after the service has been rendered, any other conditions necessary to earn the right to benefit from the instruments have been satisfied, and the nonemployee is no longer providing services. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. We elected to early adopt ASU 2018-07 effective July 1, 2018 and remeasured our unsettled liability-classified nonemployee awards at their January 1, 2018 fair value by recording a retrospective cumulative effect adjustment to opening Accumulated deficit and reclassified our previously liability-classified awards to equity. The cumulative effects of the changes made to our consolidated balance sheet as of January 1, 2018 for the adoption of ASU 2014-09, ASU 2018-02 and ASU 2018-07 are included in the table below.
The following tables illustrate the impacts of adopting ASU 2014-09 on our unaudited consolidated statement of comprehensive income.
ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This ASU updates the guidance related to the statement of cash flows and requires that the statement include restricted cash with cash and cash equivalents when reconciling beginning and ending cash. The guidance was effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. We adopted this ASU effective January 1, 2018. As a result of the adoption, we have added restricted cash to the reconciliation of beginning and ending cash and cash equivalents and included a reconciliation of total cash, cash equivalents and restricted cash to the balance sheet for each period presented in the unaudited consolidated statements of cash flows. |
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Revenues | Adoption of the new revenue standard We adopted the new revenue standard using the modified retrospective method by recognizing the cumulative effect of initially applying the new revenue standard to all non-completed contracts as of January 1, 2018 as an adjustment to opening Accumulated deficit in the period of adoption. Results for reporting periods beginning after January 1, 2018 are presented under the new revenue standard, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC Topic 605. Disaggregation of Revenue We disaggregate our revenues as shown in the unaudited consolidated statements of comprehensive income. Nature of goods and services The following is a description of principal activities from which we generate our revenue, including from subscribers, advertising, and sales of equipment. Subscriber Revenue Subscriber revenue consists primarily of subscription fees and other ancillary subscription based revenues. Revenue is recognized on a straight line basis when the performance obligations to provide each service for the period are satisfied, which is over time as our subscription services are continuously transmitted and can be consumed by customers at any time. Consumers purchasing or leasing a vehicle with a factory-installed satellite radio typically receive between a three and twelve month subscription to our service. In certain cases, the subscription fees for these consumers are prepaid by the applicable automaker. Prepaid subscription fees received from certain automakers or directly from consumers are recorded as deferred revenue and amortized to revenue ratably over the service period which commences upon sale and activation. Activation fees are recognized over one month as the activation fees are non-refundable and do not provide for a material right to the customer. There is no revenue recognized for unpaid trial subscriptions. In some cases we pay a loyalty fee to the OEM when we receive a certain amount of payments from self-pay customers acquired from that OEM. These fees are considered incremental costs to obtain a contract and are, therefore, recognized as an asset and amortized to Subscriber acquisition costs over an average subscriber life of that OEM. Revenue share and loyalty fees paid to the OEM offering a paid trial are accounted for as a reduction of revenue as the payment does not provide a distinct good or service. Advertising Revenue We recognize revenue from the sale of advertising as performance obligations are satisfied upon airing of the advertising; therefore, revenue is recognized at a point in time when each advertising spot is transmitted. Agency fees are calculated based on a stated percentage applied to gross billing revenue for our advertising inventory and are reported as a reduction of advertising revenue. Additionally, we pay certain third parties a percentage of advertising revenue. Advertising revenue is recorded gross of such revenue share payments as we control the advertising service, including the ability to establish pricing, and we are primarily responsible for providing the service. Advertising revenue share payments are recorded to Revenue share and royalties during the period in which the advertising is transmitted. Equipment Revenue Equipment revenue and royalties from the sale of satellite radios, components and accessories are recognized when the performance obligation is satisfied and control is transferred, which is generally upon shipment. Revenue is recognized net of discounts and rebates. Music Royalty Fee and Other Revenue Music Royalty Fee and Other Revenue primarily consists of U.S. music royalty fees ("MRF"). The related costs we incur for the right to broadcast music and other programming are recorded as Revenue share and royalties expense. Fees received from subscribers for the MRF are recorded as deferred revenue and amortized to revenue ratably over the service period as the royalties relate to the subscription services which are continuously delivered to our customers. Deferred Revenue Customers pay for the services in advance of the performance obligation and therefore these prepayments are recorded as deferred revenue. The deferred revenue is recognized as revenue in our unaudited consolidated statement of comprehensive income as the services are provided. Changes in the liability balance during the period ended September 30, 2018 was not materially impacted by other factors. |
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Transaction Price Allocated to the Remaining Performance Obligations | As the majority of our contracts are one year or less, we have utilized the optional exemption under ASC 606-10-50-14 and will not disclose information about the remaining performance obligations for contracts which have original expected durations of one year or less. As of September 30, 2018, less than ten percent of our total deferred revenue balance related to contracts that extended beyond one year. These contracts primarily include prepaid data trials which are typically provided for three to five years as well as for self-pay customers who prepay for their audio subscriptions for up to three years in advance. These amounts will be recognized on a straight-line basis as our services are provided. |
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Earnings per Share | Basic net income per common share is calculated by dividing the income available to common stockholders by the weighted average common shares outstanding during each reporting period. Diluted net income per common share adjusts the weighted average number of common shares outstanding for the potential dilution that could occur if common stock equivalents (stock options and restricted stock units) were exercised or converted into common stock, calculated using the treasury stock method. |
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Receivables, net | Receivables, net, includes customer accounts receivable, receivables from distributors and other receivables. Customer accounts receivable, net, includes receivables from our subscribers and other customers, including advertising, and is stated at amounts due, net of an allowance for doubtful accounts. Our allowance for doubtful accounts is based upon our assessment of various factors. We consider historical experience, the age of the receivable balances, current economic conditions and other factors that may affect the counterparty’s ability to pay. Bad debt expense is included in Customer service and billing expense in our unaudited consolidated statements of comprehensive income. Receivables from distributors primarily include billed and unbilled amounts due from OEMs for services included in the sale or lease price of vehicles, as well as billed amounts due from wholesale distributors of our satellite radios. Other receivables primarily include amounts due from manufacturers of our radios, modules and chipsets where we are entitled to subsidies and royalties based on the number of units produced. We have not established an allowance for doubtful accounts for our receivables from distributors or other receivables as we have historically not experienced any significant collection issues with OEMs or other third parties. |
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Inventory, net | Inventory consists of finished goods, refurbished goods, chipsets and other raw material components used in manufacturing radios and connected vehicle devices. Inventory is stated at the lower of cost or market. We record an estimated allowance for inventory that is considered slow moving or obsolete or whose carrying value is in excess of net realizable value. The provision related to products purchased for resale in our direct to consumer distribution channel and components held for resale by us is reported as a component of Cost of equipment in our unaudited consolidated statements of comprehensive income. The provision related to inventory consumed in our OEM channel is reported as a component of Subscriber acquisition costs in our unaudited consolidated statements of comprehensive income. |
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Goodwill | Goodwill represents the excess of the purchase price over the estimated fair value of the net tangible and identifiable intangible assets acquired in business combinations. Our annual impairment assessment of our single reporting unit is performed as of the fourth quarter of each year, and an assessment is performed at other times if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. ASC 350, Intangibles - Goodwill and Other, states that an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. ASC 350 also states that a reporting unit with a zero or negative carrying amount is not required to perform a qualitative assessment. |
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Indefinite Life Intangible Assets | Our annual impairment assessment of our identifiable indefinite life intangible assets is performed as of the fourth quarter of each year. An assessment is performed at other times if an event occurs or circumstances change that would more likely than not reduce the fair value of the asset below its carrying value. If the carrying value of the intangible assets exceeds its fair value, an impairment loss is recognized. |
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Legal Proceedings | We record a liability when we believe that it is both probable that a liability will be incurred, and the amount of loss can be reasonably estimated. We evaluate developments in legal matters that could affect the amount of liability that has been previously accrued and make adjustments as appropriate. Significant judgment is required to determine both probability and the estimated amount of a loss or potential loss. We may be unable to reasonably estimate the reasonably possible loss or range of loss for a particular legal contingency for various reasons, including, among others, because: (i) the damages sought are indeterminate; (ii) the proceedings are in the relative early stages; (iii) there is uncertainty as to the outcome of pending proceedings (including motions and appeals); (iv) there is uncertainty as to the likelihood of settlement and the outcome of any negotiations with respect thereto; (v) there remain significant factual issues to be determined or resolved; (vi) the relevant law is unsettled; or (vii) the proceedings involve novel or untested legal theories. In such instances, there may be considerable uncertainty regarding the ultimate resolution of such matters, including the likelihood or magnitude of a possible eventual loss, if any. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of assets and liabilities measured at fair value | Our assets and liabilities measured at fair value were as follows:
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Schedule of new ASU adoption impact on financial statements | The cumulative effects of the changes made to our consolidated balance sheet as of January 1, 2018 for the adoption of ASU 2014-09, ASU 2018-02 and ASU 2018-07 are included in the table below.
The following tables illustrate the impacts of adopting ASU 2014-09 on our unaudited consolidated statement of comprehensive income.
ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This ASU updates the guidance related to the statement of cash flows and requires that the statement include restricted cash with cash and cash equivalents when reconciling beginning and ending cash. The guidance was effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. We adopted this ASU effective January 1, 2018. As a result of the adoption, we have added restricted cash to the reconciliation of beginning and ending cash and cash equivalents and included a reconciliation of total cash, cash equivalents and restricted cash to the balance sheet for each period presented in the unaudited consolidated statements of cash flows. |
Earnings per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share |
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Receivables, net (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable, net | Receivables, net, consists of the following:
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Inventory, net (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of inventory, net | Inventory, net, consists of the following:
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Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of indefinite-lived intangible assets | Our intangible assets include the following:
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Schedule of finite-lived intangible assets | Our intangible assets include the following:
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Expected future amortization expense | The expected amortization expense for the remaining period in 2018, each of the fiscal years 2019 through 2022 and for periods thereafter is as follows:
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Property and Equipment (Tables) |
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Property and equipment, net | Property and equipment, net, consists of the following:
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Years in which licenses expire | The following table outlines the years in which each of our satellite licenses expires:
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Summary of orbiting satellites | The chart below provides certain information on our satellites as of September 30, 2018:
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Property, Plant and Equipment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment, net | Construction in progress consists of the following:
|
Related Party Transactions (Tables) - Equity Method Investee |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of related party balances | We had the following related party balances associated with Sirius XM Canada:
|
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Schedule of related party revenues and other income | We recorded the following revenue and other income associated with Sirius XM Canada in our unaudited consolidated statements of comprehensive income:
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Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt instruments | Our debt as of September 30, 2018 and December 31, 2017 consisted of the following:
|
Stockholders' Equity (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of dividends declared | During the nine months ended September 30, 2018, our board of directors declared the following dividends:
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Schedule of repurchase agreements | The following table summarizes our total share repurchase activity for the nine months ended:
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Benefit Plans (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of options granted | The following table summarizes the weighted-average assumptions used to compute the fair value of options granted to employees and members of our board of directors:
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Stock options activity under share-based payment plans | The following table summarizes stock option activity under our share-based plans for the nine months ended September 30, 2018:
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Summary of restricted stock unit and stock award activity | The following table summarizes the restricted stock unit, including PRSU, activity under our share-based plans for the nine months ended September 30, 2018:
|
Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expected contractual cash commitments | The following table summarizes our expected contractual cash commitments as of September 30, 2018:
|
Business & Basis of Presentation (Details) $ / shares in Units, $ in Billions |
6 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019
USD ($)
shares
|
Sep. 30, 2018
segment
satellite_radio_system
$ / shares
|
Sep. 23, 2018
$ / shares
|
Dec. 31, 2017
$ / shares
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Number of satellite radio systems | satellite_radio_system | 2 | |||
Business Combinations [Abstract] | ||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||
Number of reportable segments | segment | 1 | |||
Common Stock | Management | Liberty Media | ||||
Related Party Transactions [Abstract] | ||||
Related party ownership percentage | 71.00% | |||
Pandora | ||||
Business Combinations [Abstract] | ||||
Common stock, par value (in dollars per share) | $ 0.0001 | |||
Pandora | Forecast | ||||
Business Combinations [Abstract] | ||||
Agreement value | $ | $ 3.5 | |||
Shares issuable per acquiree share (in shares) | shares | 1.44 | |||
Minimum | ||||
Related Party Transaction [Line Items] | ||||
Length of prepaid subscriptions, term | 3 months | |||
Maximum | ||||
Related Party Transaction [Line Items] | ||||
Length of prepaid subscriptions, term | 12 months |
Summary of Significant Accounting Policies - Schedule of Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Liabilities: | |||
Debt | $ 6,585,588 | $ 6,987,473 | |
Investment in convertible preferred stock | 7,720 | $ 612,205 | |
Level 1 | |||
Liabilities: | |||
Debt | 0 | 0 | |
Level 2 | |||
Liabilities: | |||
Debt | 6,585,588 | 6,987,473 | |
Level 3 | |||
Liabilities: | |||
Debt | 0 | 0 | |
Pandora | |||
Assets: | |||
Fair value of investment | 554,352 | 480,472 | |
Pandora | Investee | |||
Liabilities: | |||
Investment in convertible preferred stock | 480,000 | ||
Pandora | Level 1 | |||
Assets: | |||
Fair value of investment | 0 | 0 | |
Pandora | Level 2 | |||
Assets: | |||
Fair value of investment | 554,352 | 480,472 | |
Pandora | Level 3 | |||
Assets: | |||
Fair value of investment | $ 0 | $ 0 |
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Jan. 01, 2018 |
Dec. 31, 2017 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders’ (deficit) equity | $ (1,375,375) | $ (1,375,375) | $ (1,523,874) | |||
Foreign currency translation adjustment, net of tax | 7,854 | $ 3,680 | (9,972) | $ 6,426 | ||
Foreign currency translation adjustment, tax | (2,491) | 3,244 | ||||
Accumulated other comprehensive income, net of tax | 12,448 | $ 12,448 | $ 22,420 | 18,407 | ||
Activation fee revenue recognition period | 1 month | |||||
Accumulated deficit | (2,308,361) | $ (2,308,361) | (3,233,202) | (3,243,473) | ||
Adjustments Due to ASU 2018-02 | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive income, net of tax | 4,013 | |||||
Accumulated deficit | (4,013) | |||||
Adjustments Due to ASU 2014-09 | Impact of Adopting ASU 2014-09 | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive income, net of tax | 0 | |||||
Accumulated deficit | 18,416 | |||||
Adjustments Due to ASU 2014-09 | Impact of Adopting ASU 2014-09 | Activation Fees | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Reduction in deferred revenue | 8,260 | |||||
Accumulated deficit | 8,260 | |||||
Adjustments Due to ASU 2014-09 | Impact of Adopting ASU 2014-09 | Loyalty Payments | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated deficit | 10,156 | |||||
Prepaid expenses and other current assets | $ 10,156 | |||||
Accumulated Other Comprehensive Income (Loss) | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Stockholders’ (deficit) equity | $ 12,448 | $ 12,448 | $ 18,407 |
Summary of Significant Accounting Policies - Cumulative Effect of Adoption of ASUs on the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Jan. 01, 2018 |
Dec. 31, 2017 |
---|---|---|---|
Assets | |||
Prepaid expenses and other current assets | $ 173,035 | $ 137,931 | $ 129,669 |
Other long-term assets | 135,655 | 121,247 | 118,671 |
Deferred tax assets | 330,998 | 499,613 | 505,528 |
Liabilities: | |||
Accounts payable and accrued expenses | 799,094 | 800,474 | 794,341 |
Current portion of deferred revenue | 1,921,517 | 1,839,923 | 1,881,825 |
Long-term deferred revenue | 154,145 | 170,589 | 174,579 |
Equity: | |||
Additional paid-in capital | 922,376 | 1,744,214 | 1,713,816 |
Accumulated deficit | (2,308,361) | (3,233,202) | (3,243,473) |
Accumulated other comprehensive income, net of tax | $ 12,448 | 22,420 | 18,407 |
Adjustments Due to ASU 2018-02 | |||
Assets | |||
Prepaid expenses and other current assets | 0 | ||
Other long-term assets | 0 | ||
Deferred tax assets | 0 | ||
Liabilities: | |||
Accounts payable and accrued expenses | 0 | ||
Current portion of deferred revenue | 0 | ||
Long-term deferred revenue | 0 | ||
Equity: | |||
Additional paid-in capital | 0 | ||
Accumulated deficit | (4,013) | ||
Accumulated other comprehensive income, net of tax | 4,013 | ||
Adjustments Due to ASU 2018-07 | |||
Assets | |||
Prepaid expenses and other current assets | 0 | ||
Other long-term assets | 0 | ||
Deferred tax assets | 0 | ||
Liabilities: | |||
Accounts payable and accrued expenses | (26,266) | ||
Current portion of deferred revenue | 0 | ||
Long-term deferred revenue | 0 | ||
Equity: | |||
Additional paid-in capital | 30,398 | ||
Accumulated deficit | (4,132) | ||
Accumulated other comprehensive income, net of tax | 0 | ||
Balances Without Adoption of ASUs | |||
Assets | |||
Prepaid expenses and other current assets | 129,669 | ||
Other long-term assets | 118,671 | ||
Deferred tax assets | 505,528 | ||
Liabilities: | |||
Accounts payable and accrued expenses | 794,341 | ||
Current portion of deferred revenue | 1,881,825 | ||
Long-term deferred revenue | 174,579 | ||
Equity: | |||
Additional paid-in capital | 1,713,816 | ||
Accumulated deficit | (3,243,473) | ||
Accumulated other comprehensive income, net of tax | $ 18,407 | ||
Impact of Adopting ASU 2014-09 | Adjustments Due to ASU 2014-09 | |||
Assets | |||
Prepaid expenses and other current assets | 8,262 | ||
Other long-term assets | 2,576 | ||
Deferred tax assets | (5,915) | ||
Liabilities: | |||
Accounts payable and accrued expenses | 32,399 | ||
Current portion of deferred revenue | (41,902) | ||
Long-term deferred revenue | (3,990) | ||
Equity: | |||
Additional paid-in capital | 0 | ||
Accumulated deficit | 18,416 | ||
Accumulated other comprehensive income, net of tax | $ 0 |
Summary of Significant Accounting Policies - Impact of ASUs in the Unaudited Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Revenues | ||||
Total revenue | $ 1,467,383 | $ 1,379,596 | $ 4,274,784 | $ 4,021,231 |
Expenses | ||||
Subscriber acquisition costs | 109,469 | 119,555 | 351,940 | 372,197 |
Income tax expense | (11,525) | (108,901) | (162,344) | (342,387) |
Net income | 343,048 | 275,722 | 924,841 | 684,904 |
Impact of Adopting ASU 2014-09 | Adjustments Due to ASU 2014-09 | ||||
Expenses | ||||
Subscriber acquisition costs | 902 | 2,748 | ||
Income tax expense | (15) | (371) | ||
Net income | 443 | 2,116 | ||
Balances Without Adoption of ASUs | ||||
Expenses | ||||
Subscriber acquisition costs | 110,371 | 354,688 | ||
Income tax expense | (11,540) | (162,715) | ||
Net income | 343,491 | 926,957 | ||
Subscriber revenue | ||||
Revenues | ||||
Total revenue | 1,162,439 | 1,136,027 | 3,418,485 | 3,325,295 |
Subscriber revenue | Impact of Adopting ASU 2014-09 | Adjustments Due to ASU 2014-09 | ||||
Revenues | ||||
Total revenue | 24,103 | 72,282 | ||
Subscriber revenue | Balances Without Adoption of ASUs | ||||
Revenues | ||||
Total revenue | 1,186,542 | 3,490,767 | ||
Revenue share and royalties | ||||
Expenses | ||||
Cost of services | 343,015 | $ 296,498 | 1,057,431 | $ 866,691 |
Revenue share and royalties | Impact of Adopting ASU 2014-09 | Adjustments Due to ASU 2014-09 | ||||
Expenses | ||||
Cost of services | 22,743 | 67,047 | ||
Revenue share and royalties | Balances Without Adoption of ASUs | ||||
Expenses | ||||
Cost of services | $ 365,758 | $ 1,124,478 |
Revenues - Additional Information (Details) |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |
Contract period (or less) | 1 year |
Activation fee revenue recognition period | 1 month |
Minimum | |
Disaggregation of Revenue [Line Items] | |
Data trial contract period | 3 years |
Maximum | |
Disaggregation of Revenue [Line Items] | |
Percent of deferred revenue related to long-term contracts | 10.00% |
Data trial contract period | 5 years |
Subscription prepayment period | 3 years |
Prepaid Vehicle Subscriptions | Minimum | |
Disaggregation of Revenue [Line Items] | |
Contract period (or less) | 3 months |
Prepaid Vehicle Subscriptions | Maximum | |
Disaggregation of Revenue [Line Items] | |
Contract period (or less) | 12 months |
Earnings per Share - Additional Information (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Earnings Per Share [Abstract] | ||||
Participating securities (in shares) | 0 | 0 | 0 | 0 |
Anti-dilutive common stock equivalents (in shares) | 21,821,000 | 54,555,000 | 13,897,000 | 42,481,000 |
Earnings per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Numerator: | ||||
Net income available to common stockholders for basic and diluted net income per common share | $ 343,048 | $ 275,722 | $ 924,841 | $ 684,904 |
Denominator: | ||||
Weighted average common shares outstanding for basic net income per common share (in shares) | 4,473,652 | 4,618,368 | 4,482,249 | 4,660,041 |
Weighted average impact of dilutive equity instruments (in shares) | 100,835 | 86,203 | 104,097 | 74,800 |
Weighted average shares for diluted net income per common share (in shares) | 4,574,487 | 4,704,571 | 4,586,346 | 4,734,841 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 0.08 | $ 0.06 | $ 0.21 | $ 0.15 |
Diluted (in dollars per share) | $ 0.07 | $ 0.06 | $ 0.20 | $ 0.14 |
Receivables, net (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Accounts receivable, net | ||
Gross customer accounts receivable | $ 106,919 | $ 100,342 |
Allowance for doubtful accounts | (7,020) | (9,500) |
Customer accounts receivable, net | 99,899 | 90,842 |
Receivables from distributors | 114,962 | 121,410 |
Other receivables | 30,907 | 29,475 |
Total receivables, net | $ 245,768 | $ 241,727 |
Inventory, net (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 5,650 | $ 6,489 |
Finished goods | 18,510 | 21,225 |
Allowance for obsolescence | (4,646) | (7,515) |
Total inventory, net | $ 19,514 | $ 20,199 |
Goodwill (Details) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
reporting_unit
|
Sep. 30, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
|
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Number of reporting units | reporting_unit | 1 | ||||
Stockholders’ (deficit) equity | $ (1,375,375,000) | $ (1,375,375,000) | $ (1,523,874,000) | ||
Goodwill | 2,289,985,000 | 2,289,985,000 | $ 2,286,582,000 | ||
Goodwill acquired during period | 3,403,000 | ||||
Impairment losses for goodwill | 0 | $ 0 | 0 | $ 0 | |
Accumulated impairment of goodwill since the merger | $ 4,766,190,000 | $ 4,766,190,000 |
Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Dec. 31, 2017 |
|
Definite life intangible assets: | ||
Accumulated Amortization | $ (128,231) | $ (500,812) |
Net Carrying Value | 170,930 | |
Gross Carrying Value | ||
Total intangible assets | 2,633,615 | 3,023,658 |
Net Carrying Value | ||
Total intangible assets | 2,505,384 | 2,522,846 |
FCC licenses | ||
Indefinite life intangible assets: | ||
Gross Carrying Value | 2,083,654 | 2,083,654 |
Net Carrying Value | 2,083,654 | 2,083,654 |
Trademarks | ||
Indefinite life intangible assets: | ||
Gross Carrying Value | 250,800 | 250,800 |
Net Carrying Value | $ 250,800 | 250,800 |
Subscriber relationships | ||
Definite life intangible assets: | ||
Weighted Average Useful Lives | 9 years | |
Gross Carrying Value | $ 0 | 380,000 |
Accumulated Amortization | 0 | (380,000) |
Net Carrying Value | $ 0 | 0 |
OEM relationships | ||
Definite life intangible assets: | ||
Weighted Average Useful Lives | 15 years | |
Gross Carrying Value | $ 220,000 | 220,000 |
Accumulated Amortization | (72,111) | (61,111) |
Net Carrying Value | $ 147,889 | 158,889 |
Licensing agreements | ||
Definite life intangible assets: | ||
Weighted Average Useful Lives | 12 years | |
Gross Carrying Value | $ 45,289 | 45,289 |
Accumulated Amortization | (37,104) | (34,350) |
Net Carrying Value | $ 8,185 | 10,939 |
Software and technology | ||
Definite life intangible assets: | ||
Weighted Average Useful Lives | 7 years | |
Gross Carrying Value | $ 33,872 | 43,915 |
Accumulated Amortization | (19,016) | (25,351) |
Net Carrying Value | $ 14,856 | $ 18,564 |
Intangible Assets - Indefinite Life Intangible Assets (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 0 | $ 0 | $ 0 | $ 0 |
Intangible Assets - Definite Life Intangible Assets (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 5,738,000 | $ 7,966,000 | $ 17,462,000 | $ 31,592,000 |
Retired | ||||
Definite life intangible assets: | ||||
Intangible assets | $ 390,043,000 | $ 0 | $ 390,043,000 | $ 0 |
Intangible Assets - Expected Amortization Expense for Each of the Fiscal Years (Details) $ in Thousands |
Sep. 30, 2018
USD ($)
|
---|---|
Expected amortization expense for each of the fiscal years | |
2018 (remaining) | $ 5,675 |
2019 | 22,701 |
2020 | 22,121 |
2021 | 16,678 |
2022 | 15,542 |
Thereafter | 88,213 |
Net Carrying Value | $ 170,930 |
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 3,311,576 | $ 3,071,281 |
Accumulated depreciation and amortization | (1,813,279) | (1,608,515) |
Property and equipment, net | 1,498,297 | 1,462,766 |
Satellite system | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,586,794 | 1,586,794 |
Terrestrial repeater network | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 125,124 | 123,254 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 59,482 | 57,635 |
Broadcast studio equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 106,478 | 96,582 |
Capitalized software and hardware | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 737,271 | 639,516 |
Satellite telemetry, tracking and control facilities | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 75,032 | 69,147 |
Furniture, fixtures, equipment and other | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 100,882 | 96,965 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 38,411 | 38,411 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 62,461 | 61,824 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 419,641 | $ 301,153 |
Property and Equipment - Schedule of Construction in Progress (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Construction in progress | $ 419,641 | $ 301,153 |
Satellite system | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | 276,627 | 183,243 |
Terrestrial repeater network | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | 4,037 | 2,515 |
Capitalized software and hardware | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | 116,692 | 94,456 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | $ 22,285 | $ 20,939 |
Property and Equipment - Additional Information (Details) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018
USD ($)
satellite
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
satellite
|
Sep. 30, 2017
USD ($)
|
|
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization expense on property and equipment | $ 69,772,000 | $ 71,947,000 | $ 204,883,000 | $ 198,544,000 |
Disposal of property and equipment | 0 | 77,040,000 | ||
Capitalized interest costs | $ 3,097,000 | $ 1,324,000 | $ 8,252,000 | $ 3,047,000 |
Number of owned satellites | satellite | 5 | 5 |
Related Party Transactions - Liberty Media, Sirius XM Canada - Additional Information (Details) $ / shares in Units, $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 5 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|---|
May 25, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
director
executive
$ / shares
shares
|
Sep. 30, 2017
USD ($)
|
May 24, 2017
shareholder
|
Sep. 30, 2018
USD ($)
director
executive
$ / shares
shares
|
Sep. 30, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
shares
|
Sep. 30, 2018
$ / shares
|
Jan. 01, 2018
USD ($)
|
May 25, 2017
CAD ($)
|
|
Related Party Transaction [Line Items] | ||||||||||
Preferred stock liquidation preference per share (in Canadian dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||||||
Current portion of deferred revenue | $ 1,921,517 | $ 1,921,517 | $ 1,881,825 | $ 1,839,923 | ||||||
Deferred revenue, noncurrent | $ 154,145 | $ 154,145 | 174,579 | $ 170,589 | ||||||
Management | Liberty Media | Executives | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of related party members on the board of directors | executive | 2 | 2 | ||||||||
Management | Liberty Media | Director | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of related party members on the board of directors | director | 1 | 1 | ||||||||
Management | Liberty Media | Common Stock | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Related party ownership percentage | 71.00% | 71.00% | ||||||||
Equity Method Investee | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Notes receivable, related parties | $ 130,794 | |||||||||
Notes receivable, maturity period | 15 years | |||||||||
Interest rate | 7.62% | |||||||||
Annual principal repayment period | 60 days | |||||||||
Annual prepayment cash threshold | $ 10,000,000 | |||||||||
Notes receivable, repayment from related party | $ 3,242 | |||||||||
Current portion of deferred revenue | $ 2,776 | 2,776 | 2,776 | |||||||
Deferred revenue, noncurrent | $ 3,006 | $ 3,006 | $ 5,088 | |||||||
Equity Method Investee | Services Agreement | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Period of agreement | 30 years | |||||||||
Equity Method Investee | Services Agreement, Years 1 Through 5 | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percent of gross revenue receivable | 25.00% | |||||||||
Equity Method Investee | Services Agreement, Years 6 Through 30 | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percent of gross revenue receivable | 30.00% | |||||||||
Equity Method Investee | Advisory Services Agreement | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percent of gross revenue receivable | 5.00% | |||||||||
Equity Method Investee | Common Stock | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Issuance of common stock as part of recapitalization of Sirius XM Canada (in shares) | shares | 35,000 | |||||||||
Equity Method Investee | Sirius XM Canada | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Equity method investment, equity interest | 70.00% | 70.00% | ||||||||
Equity method investment, voting interest | 33.00% | 33.00% | ||||||||
Number of shareholders | shareholder | 2 | |||||||||
Consideration transferred | $ 308,526 | |||||||||
Payments to acquire equity method investments | 129,676 | |||||||||
Consideration transferred, equity interests issued and issuable | 178,850 | |||||||||
Number of preferred shares owned (in shares) | shares | 590,950 | 590,950 | ||||||||
Preferred stock liquidation preference per share (in Canadian dollars per share) | $ / shares | $ 1 | |||||||||
Notes receivable, related parties | $ 133,157 | $ 133,157 | 140,073 | |||||||
Equity method investments | 331,231 | 331,231 | $ 341,214 | |||||||
Equity method investment, dividends, including reduction of investment | $ 402 | $ 0 | $ 1,840 | $ 3,796 |
Related Party Transactions - Summary of Related Party Balances (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Related Party Transaction [Line Items] | ||
Related party current assets | $ 10,087 | $ 10,284 |
Related party long-term assets | 1,018,740 | 962,080 |
Related party current liabilities | 4,380 | 2,839 |
Related party long-term liabilities | 5,889 | 7,364 |
Equity Method Investee | Sirius XM Canada | ||
Related Party Transaction [Line Items] | ||
Related party current assets | 10,087 | 10,284 |
Related party long-term assets | 464,388 | 481,608 |
Related party current liabilities | 4,380 | 2,839 |
Related party long-term liabilities | $ 5,889 | $ 7,364 |
Related Party Transactions - Schedule of Related Party Revenue and Other Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Other income | ||||
Share of net earnings | $ (2,065) | $ 7,541 | ||
Sirius XM Canada | Equity Method Investee | ||||
Related Party Transaction [Line Items] | ||||
Revenue | $ 24,606 | $ 23,141 | 71,976 | 63,486 |
Other income | ||||
Share of net earnings | 1,034 | 9,725 | 1,119 | 7,542 |
Interest income | $ 2,553 | $ 2,718 | $ 7,757 | $ 3,521 |
Related Party Transactions - Schedule of Related Party Revenue and Other Income, Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 5 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
May 24, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Related Party Transaction [Line Items] | |||||
Amortization of intangible assets | $ 5,738 | $ 7,966 | $ 17,462 | $ 31,592 | |
Sirius XM Canada | Equity Method Investee | |||||
Related Party Transaction [Line Items] | |||||
Earning recognition lag period | 1 month | ||||
Amortization of intangible assets | $ 603 | $ 1,838 | |||
Sirius XM Canada | Equity Method Investee | Sirius Platform | |||||
Related Party Transaction [Line Items] | |||||
Percentage-based fee | 10.00% | ||||
Sirius XM Canada | Equity Method Investee | X M Platform | |||||
Related Party Transaction [Line Items] | |||||
Percentage-based fee | 15.00% |
Related Party Transactions - Pandora (Details) - USD ($) |
3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Sep. 23, 2018 |
Sep. 22, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Mar. 31, 2019 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Related Party Transaction [Line Items] | ||||||||
Investment in convertible preferred stock | $ 7,720,000 | $ 612,205,000 | ||||||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||||||
Agreement to Acquire Pandora, Inc. | ||||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Pandora | Termination Fee | ||||||||
Agreement to Acquire Pandora, Inc. | ||||||||
Agreement termination fee receivable | $ 105,000,000 | |||||||
Pandora | Termination Fee, Contract Termination On Or Before November 22, 2018 | ||||||||
Agreement to Acquire Pandora, Inc. | ||||||||
Agreement termination fee receivable | $ 52,500,000 | |||||||
Pandora | Forecast | ||||||||
Agreement to Acquire Pandora, Inc. | ||||||||
Shares issuable per acquiree share (in shares) | 1.44 | |||||||
Pandora | Performance-based Share Awards | Maximum | ||||||||
Agreement to Acquire Pandora, Inc. | ||||||||
Consideration transferred, per share | $ 20.00 | |||||||
Pandora | ||||||||
Related Party Transaction [Line Items] | ||||||||
Fair value of investment | $ 554,352,000 | $ 554,352,000 | $ 480,472,000 | |||||
Pandora | Level 2 | ||||||||
Related Party Transaction [Line Items] | ||||||||
Fair value of investment | $ 554,352,000 | $ 554,352,000 | $ 480,472,000 | |||||
Pandora | ||||||||
Agreement to Acquire Pandora, Inc. | ||||||||
Common stock, par value (in dollars per share) | $ 0.0001 | |||||||
Pandora | Series A Preferred Stock | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of shares issued (in shares) | 480,000 | |||||||
Investee | Pandora | ||||||||
Related Party Transaction [Line Items] | ||||||||
Investment in convertible preferred stock | $ 480,000,000 | |||||||
Investment ownership percentage | 18.00% | 18.00% | ||||||
Ownership percentage on an as-converted basis | 15.00% | 15.00% | ||||||
Accrued dividends | $ 33,270,000 | $ 33,270,000 | ||||||
Unrealized gain (loss) on investment | $ (43,569,000) | $ 72,245,000 | $ 73,880,000 | $ 72,245,000 | ||||
Investee | Pandora | Series A Preferred Stock | ||||||||
Related Party Transaction [Line Items] | ||||||||
Preferred stock, par value (in dollars per share) | $ 0.0001 | |||||||
Price per share (in dollars per share) | $ 10.50 | $ 10.50 | ||||||
Common shares issued upon conversion (in shares) | 95.2381 | 95.2381 | ||||||
Preferred stock dividend rate, percentage | 6.00% | |||||||
Liquidation preference | $ 513,270,000 | $ 513,270,000 |
Debt - Schedule of Long-term Debt Instruments (Details) - USD ($) |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Debt | ||
Capital leases | $ 6,963,000 | $ 10,597,000 |
Total debt | 6,574,266,000 | 6,754,841,000 |
Less: total current maturities | 4,411,000 | 5,105,000 |
Less: total deferred financing costs for Notes | 7,703,000 | 8,493,000 |
Total long-term debt | 6,562,152,000 | 6,741,243,000 |
Senior Secured Revolving Credit Facility | ||
Debt | ||
Principal Amount | 1,750,000,000 | |
Carrying value | $ 118,000,000 | 300,000,000 |
Senior Notes | 3.875% Senior Notes Due 2022 | ||
Debt | ||
Stated interest rate | 3.875% | |
Principal Amount | $ 1,000,000,000 | |
Carrying value | $ 993,218,000 | 992,011,000 |
Senior Notes | 4.625% Senior Notes Due 2023 | ||
Debt | ||
Stated interest rate | 4.625% | |
Principal Amount | $ 500,000,000 | |
Carrying value | $ 497,064,000 | 496,646,000 |
Senior Notes | 6.00% Senior Note Due 2024 | ||
Debt | ||
Stated interest rate | 6.00% | |
Principal Amount | $ 1,500,000,000 | |
Carrying value | $ 1,489,146,000 | 1,488,002,000 |
Senior Notes | 5.375% Senior Notes Due 2025 | ||
Debt | ||
Stated interest rate | 5.375% | |
Principal Amount | $ 1,000,000,000 | |
Carrying value | $ 992,028,000 | 991,285,000 |
Senior Notes | 5.375% Senior Notes Due 2026 | ||
Debt | ||
Stated interest rate | 5.375% | |
Principal Amount | $ 1,000,000,000 | |
Carrying value | $ 990,830,000 | 990,138,000 |
Senior Notes | 5.00% Senior Notes Due 2027 | ||
Debt | ||
Stated interest rate | 5.00% | |
Principal Amount | $ 1,500,000,000 | |
Carrying value | $ 1,487,017,000 | $ 1,486,162,000 |
Debt - Schedule of Long-term Debt Instruments Additional Information (Details) |
Sep. 30, 2018 |
---|---|
Senior Secured Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Credit facility, unused capacity, commitment fee percentage | 0.25% |
Debt - Additional Information (Details) |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Senior Secured Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Maximum consolidated leverage ratio | 5.0 |
Stockholders' Equity - Common Stock (Details) - $ / shares |
Sep. 30, 2018 |
Sep. 23, 2018 |
Dec. 31, 2017 |
---|---|---|---|
Equity [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 9,000,000,000 | 9,000,000,000 | |
Common stock, shares issued (in shares) | 4,450,181,000 | 4,530,928,000 | |
Common stock, shares outstanding (in shares) | 4,449,194,000 | 4,527,742,000 | |
Common stock reserved for issuance (in shares) | 278,575,000 |
Stockholders' Equity - Quarterly Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jul. 18, 2018 |
Apr. 26, 2018 |
Jan. 23, 2018 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Equity [Abstract] | |||||||
Dividends Per Share (in dollars per share) | $ 0.011 | $ 0.011 | $ 0.011 | $ 0.011 | $ 0.010 | $ 0.033 | $ 0.03 |
Total Amount | $ 49,316 | $ 49,287 | $ 49,397 |
Stockholders' Equity - Stock Repurchase Program (Details) shares in Thousands |
Sep. 30, 2018
USD ($)
shares
|
---|---|
Class of Stock [Line Items] | |
Number of shares repurchased (in shares) | shares | 2,577,852 |
Aggregate cost for shares repurchased | $ 10,028,012,000 |
Remaining amount authorized under the stock repurchase program | 1,971,988,000 |
Common Stock | |
Class of Stock [Line Items] | |
Stock repurchase program, aggregate authorized amount | $ 12,000,000,000 |
Stockholders' Equity - Schedule of Repurchase Agreements (Details) - USD ($) shares in Thousands, $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Shares Repurchase Activity [Line Items] | ||
Amount | $ 650,893 | |
Treasury stock, common, value | $ 6,287 | |
Open Market | ||
Shares Repurchase Activity [Line Items] | ||
Shares (in shares) | 103,717 | 194,324 |
Amount | $ 650,893 | $ 987,111 |
Stockholders' Equity - Preferred Stock (Details) - $ / shares |
Sep. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Equity [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | |
Undesignated preferred stock authorized (in shares) | 50,000,000 | |
Preferred stock liquidation preference per share (in dollars per share) | $ 0.001 | |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Jun. 30, 2018 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based payment expense | $ 29,405 | $ 34,891 | $ 99,853 | $ 94,588 | |
Adjustments Due to ASU 2018-07 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based payment expense | $ (4,704) |
Benefit Plans - 2015 Long-Term Stock Incentive Plan (Details) shares in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2018
shares
| |
Performance-based Share Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
2015 Long Term Stock Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock conversion to common stock | 1 |
Common stock available for future grants (in shares) | 157,212 |
2015 Long Term Stock Incentive Plan | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
2015 Long Term Stock Incentive Plan | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 4 years |
2015 Long Term Stock Incentive Plan | Employees and Non Employee Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock option expiration period | 10 years |
Benefit Plans - Other Plans (Details) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018
USD ($)
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
plan
$ / shares
shares
|
Sep. 30, 2017
USD ($)
shares
|
Dec. 31, 2017
USD ($)
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of other share-based benefit plans | plan | 3 | ||||
Options granted (in shares) | shares | 0 | 0 | |||
Share-based payment expense | $ | $ 29,405 | $ 34,891 | $ 99,853 | $ 94,588 | |
Employees and Non Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average grant date fair value of options granted (in dollars per share) | $ / shares | $ 1.48 | ||||
Total intrinsic value of stock options exercised | $ | $ 205,963 | 148,133 | |||
Number of net settled shares issued as a result of exercise of stock options and vesting of restricted stock units (in shares) | shares | 18,510,000 | ||||
Share-based payment expense | $ | 11,504 | 21,454 | $ 51,939 | 61,091 | |
Restricted Stock Units (RSUs) and Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based payment expense | $ | 17,901 | $ 13,437 | 47,914 | 33,497 | |
Total intrinsic value of restricted stock units and stock awards vested | $ | $ 75,762 | $ 46,920 | |||
Shares granted (in shares) | shares | 15,072,000 | ||||
Incremental shares granted (in shares) | shares | 180,000 | ||||
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of net settled shares issued as a result of exercise of stock options and vesting of restricted stock units (in shares) | shares | 6,659,000 | ||||
Performance-based Share Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | shares | 3,780,000 | ||||
Restricted Stock Units RSU and Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized compensation costs related to unvested share based payment awards for restricted stock units, net of estimated forfeitures | $ | $ 274,610 | $ 274,610 | $ 241,521 | ||
Weighted average expected period for recognition of compensation expenses | 1 year 10 months 2 days |
Benefit Plans - Fair Value of Options Granted (Details) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Retirement Benefits [Abstract] | ||||
Risk-free interest rate | 2.80% | 1.80% | 2.70% | 1.80% |
Expected life of options — years | 4 years 11 months 23 days | 4 years 7 months 28 days | 4 years 5 months 9 days | 4 years 7 months 6 days |
Expected stock price volatility | 23.00% | 24.00% | 23.00% | 24.00% |
Expected dividend yield | 0.60% | 0.70% | 0.70% | 0.70% |
Benefit Plans - Stock Options Activity Under Share-Based Payment Plans (Details) - Employees and Non Employee Stock Option $ / shares in Units, shares in Thousands, $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2018
USD ($)
$ / shares
shares
| |
Options | |
Outstanding as of beginning of period (in shares) | shares | 280,457 |
Granted (in shares) | shares | 28,235 |
Exercised (in shares) | shares | (61,566) |
Forfeited, cancelled or expired (in shares) | shares | (2,831) |
Outstanding as of end of period (in shares) | shares | 244,295 |
Exercisable (in shares) | shares | 136,114 |
Weighted- Average Exercise Price Per Share | |
Outstanding as of beginning of period (in dollars per share) | $ / shares | $ 3.76 |
Granted (in dollars per share) | $ / shares | 6.71 |
Exercised (in dollars per share) | $ / shares | 3.35 |
Forfeited, cancelled or expired (in dollars per share) | $ / shares | 4.62 |
Outstanding as of end of period (in dollars per share) | $ / shares | 4.19 |
Exercisable (in dollars per share) | $ / shares | $ 3.56 |
Weighted- Average Remaining Contractual Term (Years) | |
Outstanding | 6 years 6 months |
Exercisable | 5 years 7 months 28 days |
Aggregate Intrinsic Value | |
Outstanding | $ | $ 532,346 |
Exercisable | $ | $ 375,758 |
Benefit Plans - Summary of Restricted Stock Unit and Stock Award Activity (Details) - Restricted Stock Units (RSUs) and Performance Shares shares in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2018
$ / shares
shares
| |
Shares | |
Nonvested as of beginning of period (in shares) | shares | 31,323 |
Granted (in shares) | shares | 15,072 |
Vested (in shares) | shares | (11,245) |
Forfeited (in shares) | shares | (870) |
Nonvested as of end of period (in shares) | shares | 34,280 |
Grant Date Fair Value Per Share | |
Nonvested as of beginning of period (in dollars per share) | $ / shares | $ 4.54 |
Granted (in dollars per share) | $ / shares | 6.56 |
Vested (in dollars per share) | $ / shares | 4.25 |
Forfeited (in dollars per share) | $ / shares | 4.92 |
Nonvested as of end of period (in dollars per share) | $ / shares | $ 5.48 |
Benefit Plans - 401(k) Savings Plan (Details) - Sirius XM Savings Plan - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Minimum of employee contributions of pre-tax eligible earnings to Company 401(k) Savings Plan | 1.00% | |||
Maximum of employee contributions of pre-tax eligible earnings to Company 401(k) Savings Plan | 50.00% | |||
Percent of Company match of employee's voluntary contributions | 50.00% | |||
Percent of employee's pre-tax salary | 6.00% | |||
Maximum annual contributions per employee, percent | 3.00% | |||
Vesting percentage of employer contributions for each year of employment | 33.33% | |||
Savings plan, fully vested period | 3 years | |||
Recognized cost | $ 1,956 | $ 1,775 | $ 5,984 | $ 5,292 |
Benefit Plans - Sirius XM Holdings Inc. Deferred Compensation Plan (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
|
Retirement Benefits [Abstract] | |||||
Deferred compensation contributions | $ 236 | $ 240 | $ 7,374 | $ 7,595 | |
Fair value of investment assets related to deferred compensation plan | $ 23,398 | 23,398 | $ 14,641 | ||
Unrealized gains (losses) on investments | $ 0 | $ 0 |
Commitments and Contingencies - Expected Contractual Cash Commitments (Details) $ in Thousands |
Sep. 30, 2018
USD ($)
|
---|---|
Expected contractual cash commitments | |
2018 | $ 218,212 |
2019 | 953,727 |
2020 | 784,207 |
2021 | 617,792 |
2022 | 1,474,715 |
Thereafter | 6,947,391 |
Total | 10,996,044 |
Uncertain tax positions are recognized in other long-term liabilities | 7,302 |
Debt obligations | |
Expected contractual cash commitments | |
2018 | 1,094 |
2019 | 3,936 |
2020 | 1,207 |
2021 | 726 |
2022 | 1,000,000 |
Thereafter | 5,618,000 |
Total | 6,624,963 |
Cash interest payments | |
Expected contractual cash commitments | |
2018 | 41,545 |
2019 | 343,442 |
2020 | 343,412 |
2021 | 343,373 |
2022 | 343,367 |
Thereafter | 921,685 |
Total | 2,336,824 |
Satellite and transmission | |
Expected contractual cash commitments | |
2018 | 43,165 |
2019 | 105,632 |
2020 | 51,138 |
2021 | 4,269 |
2022 | 2,830 |
Thereafter | 4,690 |
Total | 211,724 |
Programming and content | |
Expected contractual cash commitments | |
2018 | 64,496 |
2019 | 266,625 |
2020 | 217,560 |
2021 | 123,927 |
2022 | 55,475 |
Thereafter | 162,938 |
Total | 891,021 |
Sales and marketing | |
Expected contractual cash commitments | |
2018 | 10,185 |
2019 | 33,314 |
2020 | 8,060 |
2021 | 7,446 |
2022 | 1,644 |
Thereafter | 203 |
Total | 60,852 |
Satellite incentive payments | |
Expected contractual cash commitments | |
2018 | 4,024 |
2019 | 10,652 |
2020 | 10,197 |
2021 | 8,574 |
2022 | 8,558 |
Thereafter | 61,767 |
Total | 103,772 |
Operating lease obligations | |
Expected contractual cash commitments | |
2018 | 7,816 |
2019 | 45,715 |
2020 | 46,988 |
2021 | 42,770 |
2022 | 39,642 |
Thereafter | 178,075 |
Total | 361,006 |
Royalties and other | |
Expected contractual cash commitments | |
2018 | 45,887 |
2019 | 144,411 |
2020 | 105,645 |
2021 | 86,707 |
2022 | 23,199 |
Thereafter | 33 |
Total | $ 405,882 |
Commitments and Contingencies - Additional Information (Details) |
9 Months Ended | ||
---|---|---|---|
Jul. 06, 2018
USD ($)
|
Mar. 13, 2017
USD ($)
|
Sep. 30, 2018
USD ($)
satellite
|
|
Loss Contingencies [Line Items] | |||
Number of replacement satellites | satellite | 2 | ||
Sound Exchange, Inc | Settled Litigation | |||
Loss Contingencies [Line Items] | |||
Payments for legal settlements | $ 150,000,000 | ||
Telephone Consumer Protection Act Suits | Pending Litigation | |||
Loss Contingencies [Line Items] | |||
Damages sought per violation | $ 500 | ||
Surety Bond | |||
Loss Contingencies [Line Items] | |||
Estimate of possible loss | $ 45,000,000 | ||
Maximum | |||
Loss Contingencies [Line Items] | |||
Operating lease obligations, term | 15 years | ||
Maximum | Telephone Consumer Protection Act Suits | Pending Litigation | |||
Loss Contingencies [Line Items] | |||
Damages sought per willful violation | $ 1,500 | ||
Minimum | |||
Loss Contingencies [Line Items] | |||
Operating lease obligations, term | 1 year | ||
XM-5, FM-5, FM-6, XM-3, and XM-4 | |||
Loss Contingencies [Line Items] | |||
Operating performance over design life | 15 years | ||
XM-4 | |||
Loss Contingencies [Line Items] | |||
Period beyond expected operating performance of design life for XM-4 | 5 years | ||
XM-4 | Maximum | |||
Loss Contingencies [Line Items] | |||
Additional payments required if XM-4 continues to operate above baseline specifications | $ 10,000,000 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Income Tax Disclosure [Abstract] | ||||||
Income tax expense | $ 11,525 | $ 108,901 | $ 162,344 | $ 342,387 | ||
Income Taxes [Line Items] | ||||||
Effective income tax rate percent | 3.30% | 28.30% | 14.90% | 33.30% | ||
Valuation allowance | $ 65,878 | $ 65,878 | $ 52,883 | |||
Forecast | ||||||
Income Taxes [Line Items] | ||||||
Effective income tax rate percent | 17.00% |
Subsequent Events (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|
Oct. 09, 2018 |
Jul. 18, 2018 |
Apr. 26, 2018 |
Jan. 23, 2018 |
Oct. 22, 2018 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Subsequent Event [Line Items] | |||||||||
Stock repurchased during the period, value | $ 661,760 | $ 996,263 | |||||||
Dividends declared per common share (in dollars per share) | $ 0.011 | $ 0.011 | $ 0.011 | $ 0.011 | $ 0.010 | $ 0.033 | $ 0.03 | ||
Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock repurchased (in shares) | 7,902 | ||||||||
Stock repurchased during the period, value | $ 48,882 | ||||||||
Dividends declared per common share (in dollars per share) | $ 0.0121 |