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<div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"><b></b> </div> <div align="left"> </div> <div align="center" style="font-size: 10pt"><b></b></div> <div align="center" style="font-size: 10pt"></div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(1) Business</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We broadcast our music, sports, news, talk, entertainment, traffic and weather channels in the United States on a subscription fee basis through our two proprietary satellite radio systems. Subscribers can also receive certain of our music and other channels over the Internet, including through applications for Apple, Blackberry and Android-powered mobile devices. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Our primary source of revenue is subscription fees, with most of our customers subscribing on an annual, semi-annual, quarterly or monthly basis. We offer discounts for prepaid and long-term subscription plans as well as discounts for multiple subscriptions on each platform. We also derive revenue from activation and other 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, data and Backseat TV services. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Our satellite radios are primarily distributed through automakers (“OEMs”); nationwide through retail locations; and through our website. We have agreements with every major automaker to offer satellite radios as factory or dealer-installed equipment in their vehicles. Satellite radios are also offered to customers of rental car companies. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In July 2008, our wholly owned subsidiary, Vernon Merger Corporation, merged (the “Merger”) with and into XM Satellite Radio Holdings Inc. On August 5, 2008, we changed our name from Sirius Satellite Radio Inc. to Sirius XM Radio Inc. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          On January 12, 2011, XM Satellite Radio Inc., our wholly-owned subsidiary, merged with and into Sirius XM Radio Inc. Prior to January 12, 2011, we operated XM Satellite Radio Inc., together with its subsidiaries, as an unrestricted subsidiary under the agreements governing our indebtedness. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(2) Principles of Consolidation and Basis of Presentation</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>Principles of Consolidation</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          The accompanying unaudited consolidated financial statements of Sirius XM Radio Inc. and subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the instructions to Form 10-Q and Article 10 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”) for interim financial reporting. Accordingly, these interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. All significant intercompany transactions have been eliminated in consolidation. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>Basis of Presentation</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In the opinion of management, all normal recurring adjustments necessary for a fair presentation of our unaudited consolidated financial statements as of March 31, 2011 and for the three months ended March 31, 2011 and 2010 have been made. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          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, 2010, which was filed with the SEC on February 16, 2011. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          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 months ended March 31, 2011 and have determined that no events have occurred that would require adjustment to our unaudited consolidated financial statements. For a discussion of subsequent events refer to Note 15<i>.</i> </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(3) Summary of Significant Accounting Policies</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>Use of Estimates</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In presenting unaudited consolidated financial statements, management makes estimates and assumptions that affect the reported amounts and accompanying notes. Estimates, by their nature, are based on judgment and available information. Actual results could differ materially from those estimates. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="center" style="font-size: 10pt"> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Significant estimates inherent in the preparation of the accompanying unaudited consolidated financial statements include revenue recognition, asset impairment, useful lives of our satellites, share-based payment expense, and valuation allowances against deferred tax assets. Economic conditions in the United States could have a material impact on our accounting estimates. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>Earnings per Share (“EPS”)</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Basic net income per common share is calculated using the weighted average common shares outstanding during each reporting period. Diluted net income per common share adjusts the weighted average common shares outstanding for the potential dilution that could occur if common stock equivalents (convertible debt and preferred stock, warrants, stock options, restricted stock and restricted stock units) were exercised or converted into common stock, calculated using the treasury stock method. For the three months ended March 31, 2011 and March 31, 2010, common stock equivalents of approximately 587,254,000 and 714,293,000 were excluded from the calculation of diluted net income per common share as the effect would have been anti-dilutive. </div> <div align="center" style="margin-left:4%; margin-right:6%"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="90%">  <tr valign="bottom"> <td width="65%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="2%">    </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>For the Three Months</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Ended March 31,</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><i>(in thousands, except per share data)</i></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net income </div></td> <td> </td> <td align="left">  $</td> <td align="right">78,121</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">41,598</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Average common shares outstanding-basic </div></td> <td> </td> <td> </td> <td align="right">3,735,136</td> <td> </td> <td> </td> <td> </td> <td align="right">3,677,897</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Dilutive effect of equity instruments </div></td> <td> </td> <td> </td> <td align="right">2,746,248</td> <td> </td> <td> </td> <td> </td> <td align="right">2,657,217</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Average common shares outstanding-diluted </div></td> <td> </td> <td> </td> <td align="right">6,481,384</td> <td> </td> <td> </td> <td> </td> <td align="right">6,335,114</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net income per common share </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Basic </div></td> <td> </td> <td align="left">  $</td> <td align="right">0.02</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">0.01</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Diluted </div></td> <td> </td> <td align="left">  $</td> <td align="right">0.01</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">0.01</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>Accounts Receivable</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Accounts receivable are stated at amounts due from customers net of an allowance for doubtful accounts. Our allowance for doubtful accounts considers historical experience, the age of amounts due, current economic conditions and other factors that may affect the counterparty’s ability to pay. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Accounts receivable, net, consists of the following: </div> <div align="center" style="margin-left:4%; margin-right:6%"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="90%">  <tr valign="bottom"> <td width="65%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="2%">    </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>March 31,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>December 31,</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr>   <tr valign="top"> <td style="font-size: 3pt"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Gross accounts receivable </div></td> <td> </td> <td align="left">  $</td> <td align="right">110,771</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">131,880</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Allowance for doubtful accounts </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(10,027</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(10,222</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Total accounts receivable, net </div></td> <td> </td> <td align="left">  $</td> <td align="right">100,744</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">121,658</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Receivables from distributors include billed and unbilled amounts due from OEMs for radio services included in the sale or lease price of vehicles, as well as billed amounts due from retailers. Receivables from distributors consist of the following: </div> <div align="center" style="margin-left:4%; margin-right:6%"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="90%">  <tr valign="bottom"> <td width="65%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="2%">    </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>March 31,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>December 31,</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr>   <tr valign="top"> <td style="font-size: 3pt"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Billed </div></td> <td> </td> <td align="left">  $</td> <td align="right">30,841</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">30,456</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unbilled </div></td> <td> </td> <td> </td> <td align="right">45,717</td> <td> </td> <td> </td> <td> </td> <td align="right">37,120</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">  $</td> <td align="right">76,558</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">67,576</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>Inventory</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Inventory consists of finished goods, refurbished goods, chip sets and other raw material components used in manufacturing radios. Inventory is stated at the lower of cost, determined on a first-in, first-out basis, or market. We record an estimated allowance for inventory that is considered slow moving, 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 operations. The provision related to inventory consumed in our OEM and retail distribution channel is reported as a component of Subscriber acquisition costs in our unaudited consolidated statements of operations. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Inventory, net, consists of the following: </div> <div align="center" style="margin-left:3%; margin-right:6%"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="85%">  <tr valign="bottom"> <td width="65%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td> <td width="2%">    </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>March 31,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>December 31,</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr>   <tr valign="top"> <td style="font-size: 3pt"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Raw materials </div></td> <td> </td> <td align="left">  $</td> <td align="right">25,975</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">18,181</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Finished goods </div></td> <td> </td> <td> </td> <td align="right">24,515</td> <td> </td> <td> </td> <td> </td> <td align="right">24,492</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Allowance for obsolescence </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(21,242</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(20,755</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total inventory, net </div></td> <td> </td> <td align="left">  $</td> <td align="right">29,248</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">21,918</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>Fair Value of Financial Instruments</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          The fair value of a financial instrument is the amount at which the instrument could be exchanged in an orderly transaction between market participants to sell the asset or transfer the liability. As of March 31, 2011 and December 31, 2010, the carrying amounts of cash and cash equivalents, accounts and other receivables, and accounts payable approximated fair value due to the short-term nature of these instruments. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          The fair value for publicly traded instruments is determined using quoted market prices while the fair value for non-publicly traded instruments is based upon estimates from a market maker and brokerage firm. As of March 31, 2011 and December 31, 2010, the carrying value of our debt was $3,093,394 and $3,217,578, respectively; and the fair value approximated $3,683,281 and $3,722,905, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>Reclassifications</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Certain amounts in our prior period consolidated financial statements have been reclassified to conform to our current period presentation. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(4) Goodwill</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Goodwill represents the excess of the purchase price over the estimated fair value of net tangible and identifiable intangible assets acquired in business combinations. Our annual impairment assessment is performed as of October 1<sup style="font-size: 85%; vertical-align: text-top">st</sup> of each year, and an assessment is performed at other times if events or circumstances indicate it is more likely than not that the asset is impaired. During the three months ended March 31, 2011 and 2010, there were no indicators of impairment and no impairment loss was recorded to our goodwill. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(5) Intangible Assets</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Intangible assets consist of the following: </div> <div align="center" style="margin-left:4%; margin-right:0%"> <table style="font-size: 7pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="96%">  <tr valign="bottom"> <td width="20%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%">      </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="1%">      </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="1%">      </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="1%">      </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="1%">      </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="1%">      </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000"><b>March 31, 2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="11" style="border-bottom: 1px solid #000000"><b>December 31, 2010</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Gross</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Gross</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center"><b>Weighted Average</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Carrying</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Accumulated</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Net Carrying</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Carrying</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Accumulated</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Net Carrying</b></td> </tr> <tr style="font-size: 6pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Useful Lives</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Value</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Amortization</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Value</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Value</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Amortization</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Value</b></td> </tr>   <tr valign="top"> <td style="font-size: 3pt"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Indefinite life intangible assets: </div></td> <td> </td> <td align="center" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">FCC licenses </div></td> <td> </td> <td align="center" valign="top">Indefinite</td> <td> </td> <td align="left">   $</td> <td align="right">2,083,654</td> <td> </td> <td> </td> <td align="left">   $</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">   $</td> <td align="right">2,083,654</td> <td> </td> <td> </td> <td align="left">   $</td> <td align="right">2,083,654</td> <td> </td> <td> </td> <td align="left">   $</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">   $</td> <td align="right">2,083,654</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Trademark </div></td> <td> </td> <td align="center" valign="top">Indefinite</td> <td> </td> <td> </td> <td align="right">250,000</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">250,000</td> <td> </td> <td> </td> <td> </td> <td align="right">250,000</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">250,000</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td align="center" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Definite life intangible assets: </div></td> <td> </td> <td align="center" valign="top"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Subscriber relationships </div></td> <td> </td> <td align="center" valign="top">9 years</td> <td> </td> <td> </td> <td align="right">380,000</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(156,547</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">223,453</td> <td> </td> <td> </td> <td> </td> <td align="right">380,000</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(144,325</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">235,675</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Licensing agreements </div></td> <td> </td> <td align="center" valign="top">9.1 years</td> <td> </td> <td> </td> <td align="right">78,897</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(26,635</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">52,262</td> <td> </td> <td> </td> <td> </td> <td align="right">78,897</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(24,130</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">54,767</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Proprietary software </div></td> <td> </td> <td align="center" valign="top">6 years</td> <td> </td> <td> </td> <td align="right">16,552</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(10,088</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">6,464</td> <td> </td> <td> </td> <td> </td> <td align="right">16,552</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(9,566</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">6,986</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Developed technology </div></td> <td> </td> <td align="center" valign="top">10 years</td> <td> </td> <td> </td> <td align="right">2,000</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(533</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,467</td> <td> </td> <td> </td> <td> </td> <td align="right">2,000</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(483</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,517</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Leasehold interests </div></td> <td> </td> <td align="center" valign="top">7.4 years</td> <td> </td> <td> </td> <td align="right">132</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(47</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">85</td> <td> </td> <td> </td> <td> </td> <td align="right">132</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(43</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">89</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:30px; text-indent:-15px">  </div></td> <td nowrap="nowrap" colspan="2" align="center" valign="top" style="border-top: 0px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Total intangible assets </div></td> <td> </td> <td align="center" valign="top"> </td> <td> </td> <td align="left">   $</td> <td align="right">2,811,235</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">   $</td> <td align="right">(193,850</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">   $</td> <td align="right">2,617,385</td> <td> </td> <td> </td> <td align="left">   $</td> <td align="right">2,811,235</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">   $</td> <td align="right">(178,547</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">   $</td> <td align="right">2,632,688</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:30px; text-indent:-15px">  </div></td> <td nowrap="nowrap" colspan="2" align="center" valign="top" style="border-top: 0px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="center" style="font-size: 10pt"> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <i>Indefinite Life Intangible Assets</i> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We have identified our FCC licenses and the XM trademark 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. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We hold FCC licenses to operate our satellite digital audio radio service and provide ancillary services. The following table outlines the years in which each of our licenses expires: </div> <div align="center" style="margin-left:4%; margin-right:10%"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="86%">  <tr valign="bottom"> <td width="55%"> </td> <td width="5%"> </td> <td width="19%"> </td> <td width="1%"> </td> <td width="20%"> </td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>FCC license</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Expiration year</b></td> </tr>   <tr valign="bottom" style="line-height: 5pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">SIRIUS FM-1 satellite </div></td> <td> </td> <td> </td> <td align="right">2017</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">SIRIUS FM-2 satellite </div></td> <td> </td> <td> </td> <td align="right">2017</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">SIRIUS FM-3 satellite </div></td> <td> </td> <td> </td> <td align="right">2017</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">SIRIUS FM-4 satellite* </div></td> <td> </td> <td> </td> <td align="right">2017</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">SIRIUS FM-5 satellite </div></td> <td> </td> <td> </td> <td align="right">2017</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">XM-1 satellite </div></td> <td> </td> <td> </td> <td align="right">2014</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">XM-2 satellite </div></td> <td> </td> <td> </td> <td align="right">2014</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">XM-3 satellite </div></td> <td> </td> <td> </td> <td align="right">2013</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">XM-4 satellite </div></td> <td> </td> <td> </td> <td align="right">2014</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">XM-5 satellite </div></td> <td> </td> <td> </td> <td align="right">2018</td> <td> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96%"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">*</td> <td> </td> <td>In 2010, we retired the FM-4 ground spare satellite. We still maintain the FCC license for this satellite.</td> </tr> </table> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Prior to expiration, we are required to apply for a renewal of our FCC licenses. The renewal and extension of our licenses is reasonably certain at minimal cost, which is expensed as incurred. Each of the FCC licenses authorizes us to use the broadcast spectrum, which is a renewable, reusable resource that does not deplete or exhaust over time. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In connection with the Merger, $250,000 of the purchase price was allocated to the XM trademark. As of March 31, 2011, there were no legal, regulatory or contractual limitations associated with the XM trademark. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Our annual impairment assessment of our indefinite intangible assets is performed as of October 1st of each year. An assessment is made at other times if events or changes in circumstances indicate that it is more likely than not that the assets have been impaired. As of March 31, 2011, there were no indicators of impairment and no impairment loss was recorded for intangible assets with indefinite lives during the three months ended March 31, 2011 and 2010. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     <i>Definite Life Intangible Assets</i> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Subscriber relationships are amortized on an accelerated basis over 9 years, which reflects the estimated pattern in which the economic benefits will be consumed. Other definite life intangible assets include certain licensing agreements, which are amortized over a weighted average useful life of 9.1 years on a straight-line basis. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Amortization expense for definite life intangible assets was $15,303 and $17,296 for the three months ended March 31, 2011 and 2010, respectively. Expected amortization expense for the remaining period in 2011, each of the years 2012 through 2015 and for periods thereafter is as follows: </div> <div align="center" style="margin-left:4%; margin-right:12%"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="84%">  <tr valign="bottom"> <td width="86%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>Year ending December 31,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Amount</b></td> </tr>   <tr style="font-size: 5pt" valign="bottom"> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:60px; text-indent:-15px">Remaining 2011 </div></td> <td> </td> <td align="left">  $</td> <td align="right">43,792</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:60px; text-indent:-15px">2012 </div></td> <td> </td> <td> </td> <td align="right">53,680</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:60px; text-indent:-15px">2013 </div></td> <td> </td> <td> </td> <td align="right">47,357</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:60px; text-indent:-15px">2014 </div></td> <td> </td> <td> </td> <td align="right">38,879</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:60px; text-indent:-15px">2015 </div></td> <td> </td> <td> </td> <td align="right">37,553</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:60px; text-indent:-15px">Thereafter </div></td> <td> </td> <td> </td> <td align="right">62,470</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr style="font-size: 5pt" valign="bottom"> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:60px; text-indent:-15px">Total definite life intangibles assets, net </div></td> <td> </td> <td align="left">  $</td> <td align="right">283,731</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="center" style="font-size: 10pt"> </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(6) Subscriber Revenue</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Subscriber revenue consists of subscription fees, revenue derived from agreements with certain daily rental fleet operators, non-refundable activation and other fees as well as the effects of rebates. Revenues received from OEMs for subscriptions included in the sale or lease price of vehicles are also included in subscriber revenue over the service period. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Subscriber revenue consists of the following: </div> <div align="center" style="margin-left:4%; margin-right:14%"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="82%">  <tr valign="bottom"> <td width="65%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="2%">    </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>For the Three Months</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Ended March 31,</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr>   <tr valign="top"> <td style="font-size: 3pt"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Subscription fees </div></td> <td> </td> <td align="left">  $</td> <td align="right">619,291</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">574,721</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Activation fees </div></td> <td> </td> <td> </td> <td align="right">3,146</td> <td> </td> <td> </td> <td> </td> <td align="right">4,788</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:60px; text-indent:-15px">Total subscriber revenue </div></td> <td> </td> <td align="left">  $</td> <td align="right">622,437</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">579,509</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div>   <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(7) Interest Costs</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We capitalize a portion of the interest on funds borrowed to finance the construction costs of our satellites and related launch vehicles for our FM-6 and XM-5 satellites. We also incur interest costs on all of our debt instruments and certain contingent incentive payments due pursuant to our satellite construction agreements. The following is a summary of our interest costs: </div> <div align="center" style="margin-left:4%; margin-right:14%"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="82%">  <tr valign="bottom"> <td width="65%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="2%">    </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>For the Three Months</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Ended March 31,</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr>   <tr valign="top"> <td style="font-size: 3pt"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Interest costs charged to expense </div></td> <td> </td> <td align="left">  $</td> <td align="right">78,218</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">77,868</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest costs capitalized </div></td> <td> </td> <td> </td> <td align="right">7,250</td> <td> </td> <td> </td> <td> </td> <td align="right">14,177</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:60px; text-indent:-15px">Total interest costs incurred </div></td> <td> </td> <td align="left">  $</td> <td align="right">85,468</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">92,045</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Included in interest costs incurred is non-cash interest expense, consisting of amortization related to original issue discounts, premiums and deferred financing fees, of $9,573 and $11,119 for the three months ended March 31, 2011 and 2010, respectively. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(8) Property and Equipment</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Property and equipment, net, consists of the following: </div> <div align="center" style="margin-left:4%; margin-right:14%"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="82%">  <tr valign="bottom"> <td width="65%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="1%">    </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>March 31,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>December 31,</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr>   <tr valign="top"> <td style="font-size: 3pt"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Satellite system </div></td> <td> </td> <td align="left">  $</td> <td align="right">1,943,537</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">1,943,537</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Terrestrial repeater network </div></td> <td> </td> <td> </td> <td align="right">110,693</td> <td> </td> <td> </td> <td> </td> <td align="right">109,582</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Leasehold improvements </div></td> <td> </td> <td> </td> <td align="right">43,342</td> <td> </td> <td> </td> <td> </td> <td align="right">43,567</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Broadcast studio equipment </div></td> <td> </td> <td> </td> <td align="right">51,719</td> <td> </td> <td> </td> <td> </td> <td align="right">51,985</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Capitalized software and hardware </div></td> <td> </td> <td> </td> <td align="right">169,741</td> <td> </td> <td> </td> <td> </td> <td align="right">163,689</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Satellite telemetry, tracking and control facilities </div></td> <td> </td> <td> </td> <td align="right">57,230</td> <td> </td> <td> </td> <td> </td> <td align="right">57,665</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Furniture, fixtures, equipment and other </div></td> <td> </td> <td> </td> <td align="right">63,503</td> <td> </td> <td> </td> <td> </td> <td align="right">63,265</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Land </div></td> <td> </td> <td> </td> <td align="right">38,411</td> <td> </td> <td> </td> <td> </td> <td align="right">38,411</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Building </div></td> <td> </td> <td> </td> <td align="right">56,719</td> <td> </td> <td> </td> <td> </td> <td align="right">56,685</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Construction in progress </div></td> <td> </td> <td> </td> <td align="right">323,948</td> <td> </td> <td> </td> <td> </td> <td align="right">297,771</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Total property and equipment </div></td> <td> </td> <td> </td> <td align="right">2,858,843</td> <td> </td> <td> </td> <td> </td> <td align="right">2,826,157</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Accumulated depreciation and amortization </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,114,304</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,064,883</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Property and equipment, net </div></td> <td> </td> <td align="left">  $</td> <td align="right">1,744,539</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">1,761,274</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="center" style="font-size: 10pt"> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Construction in progress consists of the following: </div> <div align="center" style="margin-left:4%; margin-right:8%"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="88%">  <tr valign="bottom"> <td width="72%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="1%">    </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>March 31,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>December 31,</b></td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr>   <tr valign="top"> <td style="font-size: 3pt"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Satellite system </div></td> <td> </td> <td align="left">  $</td> <td align="right">291,559</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">262,744</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Terrestrial repeater network </div></td> <td> </td> <td> </td> <td align="right">18,313</td> <td> </td> <td> </td> <td> </td> <td align="right">19,239</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">14,076</td> <td> </td> <td> </td> <td> </td> <td align="right">15,788</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Construction in progress </div></td> <td> </td> <td align="left">  $</td> <td align="right">323,948</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">297,771</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Depreciation and amortization expense on property and equipment was $53,097 and $52,969 for the three months ended March 31, 2011 and 2010, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>Satellites</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We own four orbiting satellites for use in the SIRIUS system. Space Systems/Loral is constructing a fifth satellite, FM-6, for use in this system. We have an agreement with International Launch Services to launch this satellite on a Proton rocket. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We own five orbiting satellites for use in the XM system. Four of these satellites were manufactured by Boeing Satellite Systems International and one was manufactured by Space Systems/Loral. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          During the three months ended March 31, 2011, we capitalized interest of $7,250 and expenditures of $21,565 related to the construction of the FM-6 satellite and related launch vehicle. In the three months ended March 31, 2010, we capitalized $14,177 of interest and $35,145 expenditures which also related to FM-6 and XM-5, a satellite for the XM system that was launched in October 2010. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(9) Related Party Transactions</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We had the following related party transaction balances at March 31, 2011 and December 31, 2010: </div> <div align="left"> <table style="font-size: 6pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="92%">  <tr valign="bottom"> <td width="8%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Related party</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Related party</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Related party</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Related party</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Related party</b></td> </tr> <tr style="font-size: 5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>current assets</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>long-term assets</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>current liabilities</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>long-term liabilities</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>long-term debt</b></td> </tr> <tr style="font-size: 5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>March 31,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>December 31,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>March 31,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>December 31,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>March 31,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>December 31,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>March 31,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>December 31,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>March 31,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>December 31,</b></td> </tr> <tr style="font-size: 5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Liberty Media </div></td> <td> </td> <td align="left">  $</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">1,468</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">1,571</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">10,503</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">9,765</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">326,589</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">325,907</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">SIRIUS Canada </div></td> <td> </td> <td> </td> <td align="right">5,154</td> <td> </td> <td> </td> <td> </td> <td align="right">5,613</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">1,805</td> <td> </td> <td> </td> <td> </td> <td align="right">1,805</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">XM Canada </div></td> <td> </td> <td> </td> <td align="right">789</td> <td> </td> <td> </td> <td> </td> <td align="right">1,106</td> <td> </td> <td> </td> <td> </td> <td align="right">30,976</td> <td> </td> <td> </td> <td> </td> <td align="right">28,591</td> <td> </td> <td> </td> <td> </td> <td align="right">4,275</td> <td> </td> <td> </td> <td> </td> <td align="right">4,275</td> <td> </td> <td> </td> <td> </td> <td align="right">23,823</td> <td> </td> <td> </td> <td> </td> <td align="right">24,517</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">  $</td> <td align="right">5,943</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">6,719</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">32,444</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">30,162</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">16,583</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">15,845</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">23,823</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">24,517</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">326,589</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">325,907</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>Liberty Media</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In February 2009, we entered into an Investment Agreement (the “Investment Agreement”) with an affiliate of Liberty Media Corporation, Liberty Radio, LLC (collectively, “Liberty Media”). Pursuant to the Investment Agreement, in March 2009 we issued to Liberty Radio, LLC 12,500,000 shares of our Convertible Perpetual Preferred Stock, Series B-1 (the “Series B Preferred Stock”), with a liquidation preference of $0.001 per share in partial consideration for certain loan investments. Liberty Media has representatives on our board of directors. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          The Series B Preferred Stock is convertible into 2,586,976,000 shares of common stock. Liberty Media has agreed not to acquire more than 49.9% of our outstanding common stock prior to March 2012, except that Liberty Media may acquire more than 49.9% of our outstanding common stock at any time after March 2011 pursuant to any cash tender offer for all of the outstanding shares of our common stock that are not beneficially owned by Liberty Media or its affiliates at a price per share greater than the closing price of the common stock on the trading day preceding the earlier of the public announcement or commencement of such tender offer. The Investment Agreement also provides for certain other standstill provisions during the three year period ending in March 2012. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="center" style="font-size: 10pt"> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Liberty Media has advised us that as of March 31, 2011 and December 31, 2010, respectively, it owned the following amounts of our debt securities: </div> <div align="center" style="margin-left:4%; margin-right:10%"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="86%">  <tr valign="bottom"> <td width="65%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="13%"> </td> <td width="1%"> </td> <td width="1%">     </td> <td width="1%"> </td> <td width="13%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>March 31,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>December 31,</b></td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">8.75% Senior Notes due 2015 </div></td> <td> </td> <td align="left">  $</td> <td align="right">150,000</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">150,000</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">9.75% Senior Secured Notes due 2015 </div></td> <td> </td> <td> </td> <td align="right">50,000</td> <td> </td> <td> </td> <td> </td> <td align="right">50,000</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">13% Senior Notes due 2013 </div></td> <td> </td> <td> </td> <td align="right">76,000</td> <td> </td> <td> </td> <td> </td> <td align="right">76,000</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">7% Exchangeable Senior Subordinated Notes due 2014 </div></td> <td> </td> <td> </td> <td align="right">11,000</td> <td> </td> <td> </td> <td> </td> <td align="right">11,000</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">7.625% Senior Notes due 2018 </div></td> <td> </td> <td> </td> <td align="right">50,000</td> <td> </td> <td> </td> <td> </td> <td align="right">50,000</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total principal debt </div></td> <td> </td> <td> </td> <td align="right">337,000</td> <td> </td> <td> </td> <td> </td> <td align="right">337,000</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Less: discounts </div></td> <td> </td> <td> </td> <td align="right">10,411</td> <td> </td> <td> </td> <td> </td> <td align="right">11,093</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total carrying value debt </div></td> <td> </td> <td align="left">  $</td> <td align="right">326,589</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">325,907</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          As of March 31, 2011 and December 31, 2010, we recorded $10,503 and $9,765, respectively, related to accrued interest with Liberty Media to Related party current liabilities. We recognized Interest expense associated with debt held by Liberty Media of $8,933 and $9,062 for the three months ended March 31, 2011 and 2010, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>SIRIUS Canada</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In 2005, we entered into a license and services agreement with SIRIUS Canada. Pursuant to such agreement, SIRIUS is reimbursed for certain costs incurred to provide SIRIUS Canada service, including certain costs incurred for the production and distribution of radios, as well as information technology support costs. In consideration for the rights granted pursuant to this license and services agreement, we have the right to receive a royalty equal to a percentage of SIRIUS Canada’s gross revenues based on subscriber levels (ranging between 5% to 15%) and the number of Canadian-specific channels made available to SIRIUS Canada. Our investment in SIRIUS Canada is primarily non-voting shares which carry an 8% cumulative dividend. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We recorded the following revenue from SIRIUS Canada. Royalty income is included in other revenue and dividend income is included in Interest and investment income (loss) in our unaudited consolidated statements of operations: </div> <div align="center" style="margin-left:4%; margin-right:10%"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="86%">  <tr valign="bottom"> <td width="65%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="13%"> </td> <td width="1%"> </td> <td width="1%">    </td> <td width="1%"> </td> <td width="13%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>For the Three Months</b></td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Ended March 31,</b></td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Royalty income </div></td> <td> </td> <td align="left">  $</td> <td align="right">4,470</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">1,676</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Dividend income </div></td> <td> </td> <td> </td> <td align="right">238</td> <td> </td> <td> </td> <td> </td> <td align="right">226</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Total revenue from SIRIUS Canada </div></td> <td> </td> <td align="left">  $</td> <td align="right">4,708</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">1,902</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Receivables from royalty and dividend income were utilized to absorb a portion of our share of net losses generated by SIRIUS Canada during the three months ended March 31, 2011 and 2010. Total costs that have been or will be reimbursed by SIRIUS Canada for the three months ended March 31, 2011 and 2010 were $2,490 and $2,441, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>XM Canada</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In 2005, XM entered into agreements to provide XM Canada with the right to offer XM satellite radio service in Canada. The agreements have an initial ten year term and XM Canada has the unilateral option to extend the agreements for an additional five year term. We receive a 15% royalty for all subscriber fees earned by XM Canada each month for its basic service and an activation fee for each gross activation of an XM Canada subscriber on XM’s system. XM Canada is obligated to pay us a total of $70,300 for the rights to broadcast and market National Hockey League (“NHL”) games for a 10-year term. We recognize these payments on a gross basis as a principal obligor pursuant to the provisions of ASC 605, <i>Revenue Recognition</i>. The estimated fair value of deferred revenue from XM Canada as of the Merger date was approximately $34,000, which is amortized on a straight-line basis through 2020, the end of the expected term of the agreements. As of March 31, 2011 and December 31, 2010, the carrying value of deferred revenue related to XM Canada was $28,098 and $28,792, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We have extended a Cdn$45,000 standby credit facility to XM Canada, which can be utilized to purchase terrestrial repeaters or finance royalty and activation fees payable to us. The facility matures on December 31, 2012 and bears interest at 17.75% per annum. We have the right to convert unpaid principal amounts into Class A subordinate voting shares of XM Canada at the price of Cdn$16.00 per share. As of March 31, 2011 and December 31, 2010, amounts drawn by XM Canada on this facility in lieu of payment of fees recorded in Related party long-term assets were $23,631, net of a $11,684 valuation allowance, and $21,390, net of a $9,607 valuation allowance, respectively. The March 31, 2011 and December 31, 2010 valuation allowance related to the absorption of our share of the net loss from our investment in XM Canada shares. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          As of March 31, 2011 and December 31, 2010, amounts due from XM Canada also included $7,345 and $7,201, respectively, attributable to deferred programming costs and accrued interest (in addition to the amounts drawn on the standby credit facility), all of which is reported as Related party long-term assets. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We recorded the following revenue from XM Canada as Other revenue in our unaudited consolidated statements of operations: </div> <div align="center" style="margin-left:4%; margin-right:20%"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="76%">  <tr valign="bottom"> <td width="72%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="1%">    </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>For the Three Months</b></td> <td> </td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Ended March 31,</b></td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Amortization of XM Canada deferred income </div></td> <td> </td> <td align="left">  $</td> <td align="right">694</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">694</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Subscriber and activation fee royalties </div></td> <td> </td> <td> </td> <td align="right">2,623</td> <td> </td> <td> </td> <td> </td> <td align="right">2,347</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Licensing fee revenue </div></td> <td> </td> <td> </td> <td align="right">1,500</td> <td> </td> <td> </td> <td> </td> <td align="right">1,500</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Advertising reimbursements </div></td> <td> </td> <td> </td> <td align="right">417</td> <td> </td> <td> </td> <td> </td> <td align="right">333</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Total revenue from XM Canada </div></td> <td> </td> <td align="left">  $</td> <td align="right">5,234</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">4,874</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>General Motors and American Honda</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We have a long-term distribution agreement with General Motors Company (“GM”). GM had a representative on our board of directors and was considered a related party through May 27, 2010. During the term of the agreement, GM has agreed to distribute the XM service. We subsidize a portion of the cost of satellite radios and make incentive payments to GM when the owners of GM vehicles with factory- or dealer- installed satellite radios become self-paying subscribers. We also share with GM a percentage of the subscriber revenue attributable to GM vehicles with factory- or dealer- installed satellite radios. As part of the agreement, GM provides certain call-center related services directly to subscribers who are also GM customers for which we reimburse GM. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We make bandwidth available to OnStar LLC for audio and data transmissions to owners of enabled GM vehicles, regardless of whether the owner is a subscriber. OnStar’s use of our bandwidth must be in compliance with applicable laws, must not compete or adversely interfere with our business, and must meet our quality standards. We also granted to OnStar a certain amount of time to use our studios on an annual basis and agreed to provide certain audio content for distribution on OnStar’s services. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We have a long-term distribution agreement with American Honda. American Honda had a representative on our board of directors and was considered a related party through May 27, 2010. We have an agreement to make a certain amount of our bandwidth available to American Honda. American Honda’s use of our bandwidth must be in compliance with applicable laws, must not compete or adversely interfere with our business, and must meet our quality standards. This agreement remains in effect so long as American Honda holds a certain amount of its investment in us. We make incentive payments to American Honda for each purchaser of a Honda or Acura vehicle that becomes a self-paying subscriber and shares with American Honda a portion of the subscriber revenue attributable to Honda and Acura vehicles with installed satellite radios. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We recorded the following total related party revenue from GM and American Honda, primarily consisting of subscriber revenue, in connection with the agreements above: </div> <div align="center" style="margin-left:4%; margin-right:40%"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="70%">  <tr valign="bottom"> <td width="88%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="8%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>For the Three Months</b></td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Ended March 31,</b></td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010*</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">GM </div></td> <td> </td> <td align="left">  $</td> <td align="right">7,764</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">American Honda </div></td> <td> </td> <td> </td> <td align="right">2,887</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">  $</td> <td align="right">10,651</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="90%"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">*</td> <td> </td> <td>GM and American Honda were considered related parties through May 27, 2010.</td> </tr> </table>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> <b> </b> </div> <div align="center" style="font-size: 10pt"> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We have incurred the following related party expenses with GM and American Honda: </div> <div align="center" style="margin-left:4%; margin-right:10%"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="86%">  <tr valign="bottom"> <td width="66%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="13%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="13%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>For the Three Months</b></td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Ended March 31,</b></td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>2010*</b></td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>American</b></td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>GM</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Honda</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Sales and marketing </div></td> <td> </td> <td align="left">  $</td> <td align="right">7,799</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">-</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Revenue share and royalties </div></td> <td> </td> <td> </td> <td align="right">9,067</td> <td> </td> <td> </td> <td> </td> <td align="right">1,831</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Subscriber acquisition costs </div></td> <td> </td> <td> </td> <td align="right">10,487</td> <td> </td> <td> </td> <td> </td> <td align="right">1,226</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Customer service and billing </div></td> <td> </td> <td> </td> <td align="right">75</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Interest expense, net of amounts capitalized </div></td> <td> </td> <td> </td> <td align="right">1,421</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">  $</td> <td align="right">28,849</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">3,057</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96%"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">*</td> <td> </td> <td>GM and American Honda were considered related parties through May 27, 2010.</td> </tr> </table> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(10) Investments</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Our investments consist of the following: </div> <div align="center" style="margin-left:4%; margin-right:10%"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="86%">  <tr valign="bottom"> <td width="66%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="13%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="13%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>March 31,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>December 31,</b></td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Investment in SIRIUS Canada </div></td> <td> </td> <td align="left">  $</td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">-</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Investment in XM Canada </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Investment in XM Canada debentures </div></td> <td> </td> <td> </td> <td align="right">3,497</td> <td> </td> <td> </td> <td> </td> <td align="right">3,313</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Auction rate certificates </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Restricted investments </div></td> <td> </td> <td> </td> <td align="right">3,396</td> <td> </td> <td> </td> <td> </td> <td align="right">3,396</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total investments </div></td> <td> </td> <td align="left">  $</td> <td align="right">6,893</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">6,709</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We recorded the following amounts related to our investments to Interest and investment income (loss): </div> <div align="center" style="margin-left:4%; margin-right:10%"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="86%">  <tr valign="bottom"> <td width="66%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="13%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="13%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>For the Three Months</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Ended March 31,</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Share of SIRIUS Canada net loss </div></td> <td> </td> <td nowrap="nowrap" align="left">  $</td> <td align="right">(4,458</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">  $</td> <td align="right">(1,902</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Payments received from SIRIUS Canada in excess of carrying value </div></td> <td> </td> <td> </td> <td align="right">2,880</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Share of XM Canada net loss </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,053</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,151</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Realized gain on sale of auction rate certificates </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">425</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Total </div></td> <td> </td> <td nowrap="nowrap" align="left">  $</td> <td align="right">(3,631</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">  $</td> <td align="right">(4,628</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In addition, during the three months ended March 31, 2011 and 2010, we recorded $(24) and $35, respectively, of a foreign exchange (gain) loss to Accumulated other comprehensive loss, net of tax, related to our investment in XM Canada. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>Canadian Entities</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Our investments in SIRIUS Canada and XM Canada (the “Canadian Entities”) are recorded using the equity method since we have a significant influence over but do not control the Canadian Entities. Under this method, our investments in the Canadian Entities, originally recorded at cost, are adjusted quarterly to recognize our proportionate share of net earnings or losses as they occur, rather than at the time dividends or other distributions are received, limited to the extent of our investment in, advances to and commitments to fund the Canadian Entities. We have a 49.9% economic interest in SIRIUS Canada and a 21.5% economic interest in XM Canada. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Our share of net earnings or losses of the Canadian Entities is recorded to Interest and investment income (loss) in our unaudited consolidated statements of operations. As it relates to XM Canada, this is done on a one month lag. We evaluate the Canadian Entities periodically and record an impairment charge to Interest and investment income (loss) in our unaudited consolidated statements of operations if we determine that decreases in fair value are considered to be other-than temporary. In addition, any payments received from the Canadian Entities in excess of the carrying value of our investments in, advances to and commitments to such entity is recorded to Interest and investment income (loss) in our unaudited statements of operations. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We hold an investment in Cdn$4,000 face value of 8% convertible unsecured subordinated debentures issued by XM Canada, for which the embedded conversion feature is bifurcated from the host contract. The host contract is accounted for at fair value as an available-for-sale security with changes in fair value recorded to Accumulated other comprehensive loss, net of tax. The embedded conversion feature is accounted for at fair value as a derivative with changes in fair value recorded in earnings as Interest and investment income (loss). As of March 31, 2011, the carrying values of the host contract and embedded derivative related to our investment in the debentures was $3,497 and $0, respectively. As of December 31, 2010, the carrying values of the host contract and embedded derivative related to our investment in the debentures was $3,302 and $11, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>Canada Merger</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Canadian Satellite Radio Holdings Inc. (“CSR”), parent company of XM Canada, and SIRIUS Canada announced in November 2010 a definitive agreement to combine the companies (the “Canada Merger”). Under the terms of the agreement, SIRIUS Canada shareholders will be issued shares of CSR representing a 58.0% equity interest in CSR immediately following closing of the transaction. Our approximate ownership interest in CSR following closing of the Canada Merger will be a 37.1% equity interest (25.0% voting interest) representing approximately 45.5 million shares and will be accounted for under the equity method. The Canada Merger is anticipated to close during the second quarter of 2011. We are evaluating the impact of the Canada Merger on our financial statements. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>Auction Rate Certificates</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Auction rate certificates are long-term securities structured to reset their coupon rates by means of an auction. We accounted for our investment in auction rate certificates as available-for-sale securities. In January 2010, our investment in the auction rate certificates was called by the issuer at par plus accrued interest, or $9,456, resulting in a gain of $425 in the three months ended March 31, 2010. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>Restricted Investments</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Restricted investments relate to reimbursement obligations under letters of credit issued for the benefit of lessors of office space. As of March 31, 2011 and December 31, 2010, Long-term restricted investments were $3,396. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="center" style="font-size: 10pt"> </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(11) Debt</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Our debt consists of the following: </div> <div align="center" style="margin-left:4%; margin-right:20%"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="76%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="3%">   </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%">  </td> <td width="3%">  </td> <td width="1%"> </td> <td width="8%">   </td> <td width="1%">  </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Conversion</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Price</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>March 31,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>December 31,</b></td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(per share)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">3.25% Convertible Notes due 2011 (a) </div></td> <td> </td> <td align="left">   $</td> <td align="right">5.30</td> <td> </td> <td> </td> <td align="left">   $</td> <td align="right">97,831</td> <td> </td> <td> </td> <td align="left">   $</td> <td align="right">191,979</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:60px; text-indent:-15px">Less: discount </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(180</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(515</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">8.75% Senior Notes due 2015 (b) </div></td> <td> </td> <td> </td> <td align="right">N/A</td> <td> </td> <td> </td> <td> </td> <td align="right">800,000</td> <td> </td> <td> </td> <td> </td> <td align="right">800,000</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:60px; text-indent:-15px">Less: discount </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(11,619</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(12,213</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">9.75% Senior Secured Notes due 2015 (c) </div></td> <td> </td> <td> </td> <td align="right">N/A</td> <td> </td> <td> </td> <td> </td> <td align="right">257,000</td> <td> </td> <td> </td> <td> </td> <td align="right">257,000</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:60px; text-indent:-15px">Less: discount </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(9,693</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(10,116</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">11.25% Senior Secured Notes due 2013 (d) </div></td> <td> </td> <td> </td> <td align="right">N/A</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">36,685</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:60px; text-indent:-15px">Less: discount </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,705</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">13% Senior Notes due 2013 (e) </div></td> <td> </td> <td> </td> <td align="right">N/A</td> <td> </td> <td> </td> <td> </td> <td align="right">778,500</td> <td> </td> <td> </td> <td> </td> <td align="right">778,500</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:60px; text-indent:-15px">Less: discount </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(54,878</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(59,592</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">7% Exchangeable Senior Subordinated Notes due 2014 (f) </div></td> <td> </td> <td align="left">   $</td> <td align="right">1.875</td> <td> </td> <td> </td> <td> </td> <td align="right">550,000</td> <td> </td> <td> </td> <td> </td> <td align="right">550,000</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:60px; text-indent:-15px">Less: discount </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(7,220</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(7,620</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">7.625% Senior Notes due 2018 (g) </div></td> <td> </td> <td> </td> <td align="right">N/A</td> <td> </td> <td> </td> <td> </td> <td align="right">700,000</td> <td> </td> <td> </td> <td> </td> <td align="right">700,000</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:60px; text-indent:-15px">Less: discount </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(11,774</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(12,054</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Other debt: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Capital leases </div></td> <td> </td> <td> </td> <td align="right">N/A</td> <td> </td> <td> </td> <td> </td> <td align="right">5,427</td> <td> </td> <td> </td> <td> </td> <td align="right">7,229</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total debt </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">3,093,394</td> <td> </td> <td> </td> <td> </td> <td align="right">3,217,578</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:60px; text-indent:-15px">Less: total current maturities non-related party </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">100,603</td> <td> </td> <td> </td> <td> </td> <td align="right">195,815</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total long-term </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">2,992,791</td> <td> </td> <td> </td> <td> </td> <td align="right">3,021,763</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:60px; text-indent:-15px">Less: related party </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">326,589</td> <td> </td> <td> </td> <td> </td> <td align="right">325,907</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total long-term, excluding related party </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left">   $</td> <td align="right">      2,666,202</td> <td> </td> <td> </td> <td align="left">   $</td> <td align="right">      2,695,856</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>(a) 3.25% Convertible Notes due 2011</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In October 2004, we issued $230,000 in aggregate principal amount of 3.25% Convertible Notes due October 15, 2011 (the “3.25% Notes”), which are convertible, at the option of the holder, into shares of our common stock at any time at a conversion rate of 188.6792 shares of common stock for each $1,000 principal amount, or $5.30 per share of common stock, subject to certain adjustments. Interest is payable semi-annually on April 15 and October 15 of each year. The obligations under the 3.25% Notes are not secured by any of our assets. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In February 2011, we purchased $94,148 of the outstanding 3.25% Notes at prices between 100.75%-100.94% of the principal amount plus accrued interest. We recognized an aggregate loss on extinguishment of $1,079 on the 3.25% Notes, which consists primarily of unamortized discount and deferred financing fees during the three months ended March 31, 2011. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In April 2011, we repurchased $73,965 of the outstanding 3.25% Notes at a price of 101% of the principal amount plus accrued interest. We will recognize an aggregate loss on extinguishment of approximately $1,200 on the 3.25% Notes, which consists primarily of cash premium paid and unamortized debt discount in the second quarter. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>(b) 8.75% Senior Notes due 2015</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In March 2010, we issued $800,000 aggregate principal amount of 8.75% Senior Notes due 2015 (the “8.75% Notes”). Interest is payable semi-annually in arrears on April 1 and October 1 of each year at a rate of 8.75% per annum. The 8.75% Notes mature on April 1, 2015. The 8.75% Notes were issued for $786,000, resulting in an aggregate original issuance discount of $14,000. Substantially all of our domestic wholly-owned subsidiaries guarantee our obligations under the 8.75% Notes on a senior unsecured basis. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>(c) 9.75% Senior Secured Notes due 2015</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In August 2009, we issued $257,000 aggregate principal amount of 9.75% Senior Secured Notes due September 1, 2015 (the “9.75% Notes”). Interest is payable semi-annually in arrears on March 1 and September 1 of each year at a rate of 9.75% per annum. The 9.75% Notes were issued for $244,292, resulting in an aggregate original issuance discount of $12,708. Substantially all of our domestic wholly-owned subsidiaries guarantee our obligations under the 9.75% Notes. The 9.75% Notes and related guarantees are secured by first-priority liens on substantially all of our assets and the assets of the guarantors. In connection with the merger of XM Satellite Radio Inc. into Sirius XM Radio Inc. described in Note 1, we entered into a new collateral agreement relating to the 9.75% Notes which secures the 9.75% Notes with a lien on substantially all of our and the guarantors’ assets. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>(d) 11.25% Senior Secured Notes due 2013</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In June 2009, XM issued $525,750 aggregate principal amount of 11.25% Senior Secured Notes due 2013 (the “11.25% Notes”). The 11.25% Notes were issued for $488,398, resulting in an aggregate original issuance discount of $37,352. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In October 2010, XM purchased $489,065 in aggregate principal amount of the 11.25% Notes. The aggregate purchase price for the 11.25% Notes, including the consent payments and accrued and unpaid interest, was $567,927. We recorded an aggregate loss on extinguishment of the 11.25% Notes of $85,216, consisting primarily of unamortized discount, deferred financing fees and repayment premium to Loss on extinguishment of debt and credit facilities, net, in our consolidated statement of operations. The purchases were made pursuant to a tender offer for the 11.25% Notes. Concurrent with the tender offer for the 11.25% Notes, XM solicited consents to amend the 11.25% Notes and the related indenture and security documents to eliminate most of the restrictive covenants and certain events of default applicable to the 11.25% Notes and to release the security for, and guarantees of, the 11.25% Notes. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          The remainder of the 11.25% Notes of $36,685 was purchased in January 2011 for an aggregate purchase price of $40,376. A loss from extinguishment of debt of $4,915 was recorded during the three months ended March 31, 2011. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>(e) 13% Senior Notes due 2013</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In July 2008, XM issued $778,500 aggregate principal amount of 13% Senior Notes due 2013 (the “13% Notes”). Interest is payable semi-annually in arrears on February 1 and August 1 of each year at a rate of 13% per annum. The 13% Notes mature on August 1, 2013. Substantially all of our domestic wholly-owned subsidiaries guarantee the obligations under the 13% Notes. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>(f) 7% Exchangeable Senior Subordinated Notes due 2014</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In August 2008, XM issued $550,000 aggregate principal amount of 7% Exchangeable Senior Subordinated Notes due 2014 (the “Exchangeable Notes”). The Exchangeable Notes are senior subordinated obligations and rank junior in right of payment to our existing and future senior debt and equally in right of payment with our existing and future senior subordinated debt. Substantially all of our domestic wholly-owned subsidiaries have guaranteed the Exchangeable Notes on a senior subordinated basis. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Interest is payable semi-annually in arrears on June 1 and December 1 of each year at a rate of 7% per annum. The Exchangeable Notes mature on December 1, 2014. The Exchangeable Notes are exchangeable at any time at the option of the holder into shares of our common stock at an initial exchange rate of 533.3333 shares of common stock per $1,000 principal amount of Exchangeable Notes, which is equivalent to an approximate exchange price of $1.875 per share of common stock. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>(g) 7.625% Senior Notes due 2018</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In October 2010, XM issued $700,000 aggregate principal amount of 7.625% Senior Notes due 2018 (the “7.625% Senior Notes”). Interest is payable semi-annually in arrears on May 1 and November 1 of each year, commencing on May 1, 2011, at a rate of 7.625% per annum. A majority of the net proceeds were used to purchase $489,065 aggregate principal amount of the 11.25% Notes. The 7.625% Senior Notes mature on November 1, 2018. Substantially all of our domestic wholly-owned subsidiaries guarantee our obligations under the 7.625% Senior Notes. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>Covenants and Restrictions</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Our debt generally requires compliance with certain covenants that restrict our ability to, among other things, (i) incur additional indebtedness unless our consolidated leverage ratio would be no greater than 6.00 to 1.00 after the incurrence of the 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 our assets, and (vii) make voluntary prepayments of certain debt, in each case subject to exceptions. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Under our 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. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          At March 31, 2011, we were in compliance with our debt covenants. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(12) Stockholders’ Equity</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>Common Stock, par value $0.001 per share</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We were authorized to issue up to 9,000,000,000 shares of common stock as of March 31, 2011 and December 31, 2010. There were 3,943,060,217 and 3,933,195,112 shares of common stock issued and outstanding as of March 31, 2011 and December 31, 2010, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          As of March 31, 2011, approximately 3,316,950,000 shares of common stock were reserved for issuance in connection with outstanding convertible debt, preferred stock, warrants, incentive stock awards and common stock to be granted to third parties upon satisfaction of performance targets. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          To facilitate the offering of the Exchangeable Notes, we entered into share lending agreements with Morgan Stanley Capital Services Inc. (“MS”) and UBS AG London Branch (“UBS”) in July 2008, under which we loaned MS and UBS an aggregate of 262,400,000 shares of our common stock in exchange for a fee of $0.001 per share. The obligations of MS to us under its share lending agreement are guaranteed by its parent company, Morgan Stanley. During the third quarter of 2009, MS returned to us 60,000,000 shares of our common stock borrowed in July 2008, which were retired upon receipt. As of March 31, 2011, there were 202,400,000 shares loaned under the facilities. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Under each share lending agreement, the share loan will terminate in whole or in part, as the case may be, and the relevant borrowed shares must be returned to us upon the earliest of the following: (i) the share borrower terminates all or a portion of the loan between it and us, (ii) we notify the share borrower that some of the Exchangeable Notes as to which borrowed shares relate have been exchanged, repaid or repurchased or are otherwise no longer outstanding, (iii) the maturity date of the Exchangeable Notes, December 1, 2014, (iv) the date as of which the entire principal amount of the Exchangeable Notes ceases to be outstanding as a result of exchange, repayment, repurchase or otherwise or (v) the termination of the share lending agreement by the share borrower or by us upon default by the other party, including the bankruptcy of us or the share borrower or, in the case of the MS share lending agreement, the guarantor. A share borrower may delay the return of borrowed shares for up to 30 business days (or under certain circumstances, up to 60 business days) if such share borrower is legally prevented from returning the borrowed shares to us, in which case the share borrower may, under certain circumstances, choose to pay us the value of the borrowed shares in cash instead of returning the borrowed shares. Once borrowed shares are returned to us, they may not be re-borrowed under the share lending agreements. There were no requirements for the share borrowers to provide collateral. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          The shares we loaned to the share borrowers are issued and outstanding for corporate law purposes, and holders of borrowed shares (other than the share borrowers) have the same rights under those shares as holders of any of our other outstanding common shares. Under GAAP, the borrowed shares are not considered outstanding for the purpose of computing and reporting our net income (loss) per common share. The accounting method may change if, due to a default by either UBS or MS (or Morgan Stanley, as guarantor), the borrowed shares, or the equivalent value of those shares, will not be returned to us as required under the share lending agreements. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          For the three months ended March 31, 2011 and 2010, we recorded $2,690 and $2,427, respectively, in interest expense related to the amortization of the costs associated with the share-lending arrangement and other issuance costs. As of March 31, 2011, the unamortized balance of the debt issuance costs was $48,553, with $47,582 recorded in deferred financing fees, net, and $971 recorded in long-term related party assets. As of December 31, 2010, the unamortized balance of the debt issuance costs was $51,243, with $50,218 recorded in deferred financing fees, net, and $1,025 recorded in long-term related party assets. As of March 31, 2011 and December 31, 2010, the estimated fair value of the remaining 202,400,000 loaned shares was approximately $333,960 and $329,912, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In January 2004, SIRIUS signed a seven-year agreement with a sports programming provider. Upon execution of this agreement, SIRIUS delivered 15,173,070 shares of common stock valued at $40,967 to that programming provider. These shares of common stock are subject to transfer restrictions which lapse over time. We recognized share-based payment expense associated with these shares of $1,568 and $1,641 in the three months ended March 31, 2011 and 2010, respectively. As of March 31, 2011 and December 31, 2010, there was $0 and $1,568 remaining balance of common stock value included in other current assets, respectively. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="center" style="font-size: 10pt"> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>Preferred Stock, par value $0.001 per share</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We were authorized to issue up to 50,000,000 shares of undesignated preferred stock as of March 31, 2011 and December 31, 2010. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          There were zero shares of Series A Convertible Preferred Stock (“Series A Preferred Stock”) issued and outstanding as of March 31, 2011 and December 31, 2010, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          There were 12,500,000 shares of Convertible Perpetual Preferred Stock, Series B-1 (the “Series B Preferred Stock”), issued and outstanding as of March 31, 2011 and December 31, 2010. The Series B Preferred Stock is convertible into shares of our common stock at the rate of 206.9581409 shares of common stock for each share of Series B Preferred Stock, representing approximately 40% of our outstanding shares of common stock (after giving effect to such conversion). As the holder of the Series B Preferred Stock, Liberty Radio LLC is entitled to a number of votes equal to the number of shares of our common stock into which such shares of Series B Preferred Stock are convertible. Liberty Radio LLC will also receive dividends and distributions ratably with our common stock, on an as-converted basis. With respect to dividend rights, the Series B Preferred Stock ranks evenly with our common stock and each other class or series of our equity securities not expressly provided as ranking senior to the Series B Preferred Stock. With respect to liquidation rights, the Series B Preferred Stock ranks evenly with each other class or series of our equity securities not expressly provided as ranking senior to the Series B Preferred Stock, and will rank senior to our common stock. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          There were no shares of Preferred Stock, Series C Junior (the “Series C Junior Preferred Stock”), issued and outstanding as of March 31, 2011 and December 31, 2010. In 2009, our board of directors created and reserved for issuance in accordance with the Rights Plan (as described below) 9,000 shares of the Series C Junior Preferred Stock. The shares of Series C Junior Preferred Stock are not redeemable and rank, with respect to the payment of dividends and the distribution of assets, junior to all other series of our preferred stock, unless the terms of such series shall so provide. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>Warrants</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We have issued warrants to purchase shares of common stock in connection with distribution and programming agreements, satellite purchase agreements and certain debt issuances. As of March 31, 2011, approximately 24,871,000 warrants to acquire an equal number of shares of common stock with an average exercise price of $3.22 per share were outstanding and fully vested as of December 31, 2009 and expire at various times through 2015. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In February 2011, Daimler AG exercised 16,500,000 warrants to purchase shares of common stock on a net settlement basis, resulting in the issuance of 7,122,951 shares of our common stock. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>Rights Plan</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In April 2009, our board of directors adopted a rights plan. The terms of the rights and the rights plan are set forth in a Rights Agreement dated as of April 29, 2009 (the “Rights Plan”). The Rights Plan is intended to act as a deterrent to any person or group acquiring 4.9% or more of our outstanding common stock (assuming for purposes of this calculation that all of our outstanding convertible preferred stock is converted into common stock) without the approval of our board of directors. The Rights Plan will continue in effect until August 1, 2011, unless it is terminated or redeemed earlier by our board of directors. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(13) Benefits Plans</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We recognized share-based payment expense of $11,288 and $15,541 for the three months ended March 31, 2011 and 2010, respectively. We did not realize any income tax benefits from share-based benefits plans during the three months ended March 31, 2011 and 2010 as a result of the full valuation allowance that is maintained for substantially all net deferred tax assets. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>2009 Long-Term Stock Incentive Plan</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In May 2009, our stockholders approved the Sirius XM Radio Inc. 2009 Long-Term Stock Incentive Plan (the “2009 Plan”). Employees, consultants and members of our board of directors are eligible to receive awards under the 2009 Plan. The 2009 Plan provides for the grant of stock options, restricted stock, restricted stock units and other stock-based awards that the compensation committee of our board of directors may deem appropriate. Vesting and other terms of stock-based awards are set forth in the agreements with the individuals receiving the awards. Stock-based awards granted under the 2009 Plan are generally subject to a vesting requirement. Stock-based awards generally expire ten years from the date of grant. Each restricted stock unit entitles the holder to receive one share of common stock upon vesting. As of March 31, 2011, approximately 271,578,000 shares of common stock were available for future grants under the 2009 Plan. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="center" style="font-size: 10pt"> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>Other Plans</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We maintain four other share-based benefit plans — the XM 2007 Stock Incentive Plan, the Amended and Restated Sirius Satellite Radio 2003 Long-Term Stock Incentive Plan, the XM 1998 Shares Award Plan and the XM Talent Option Plan. No further awards may be made under these plans. Outstanding awards under these plans are being continued. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          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: </div> <div align="center" style="margin-left:4%; margin-right:20%"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="76%">  <tr valign="bottom"> <td width="70%"> </td> <td width="5%"> </td> <td width="10%"> </td> <td width="5%"> </td> <td width="4%"> </td> <td width="2%"> </td> <td width="4%"> </td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="5"><b>For the Three Months</b></td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="5" style="border-bottom: 1px solid #000000"><b>Ended March 31,</b></td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Risk-free interest rate </div></td> <td> </td> <td align="center" valign="top">N/A</td> <td> </td> <td nowrap="nowrap" align="right" valign="top"> </td> <td align="center" valign="top">2.6%</td> <td nowrap="nowrap" valign="top"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Expected life of options - years </div></td> <td> </td> <td align="center" valign="top">N/A</td> <td> </td> <td align="right" valign="top"> </td> <td align="center" valign="top">5.06</td> <td valign="top"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Expected stock price volatility </div></td> <td> </td> <td align="center" valign="top">N/A</td> <td> </td> <td nowrap="nowrap" align="right" valign="top"> </td> <td align="center" valign="top">85%</td> <td nowrap="nowrap" valign="top"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Expected dividend yield </div></td> <td> </td> <td align="center" valign="top">N/A</td> <td> </td> <td nowrap="nowrap" align="right" valign="top"> </td> <td align="center" valign="top">0%</td> <td nowrap="nowrap" valign="top"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          There were no options granted to employees and members of our board of directors during the three months ended March 31, 2011. There were no options granted to third parties during the three months ended March 31, 2011 and 2010. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          The following table summarizes stock option activity under our share-based payment plans for the three months ended March 31, 2011 (shares in thousands): </div> <div align="center" style="margin-left:4%; margin-right:20%"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="89%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Weighted-</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Weighted-Average</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"> </td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Average</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Remaining</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Aggregate</b></td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 0px solid #000000"><b>Exercise </b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Contractual Term</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Intrinsic</b></td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Shares</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Price</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>(Years)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Value</b></td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Outstanding, December 31, 2010 </div></td> <td> </td> <td> </td> <td align="right">401,870</td> <td> </td> <td> </td> <td align="left">   $</td> <td align="right">1.32</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Granted </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">   $</td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Exercised </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,825</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">   $</td> <td align="right">0.59</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Forfeited, cancelled or expired </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(7,212</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">   $</td> <td align="right">2.45</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Outstanding, March 31, 2011 </div></td> <td> </td> <td> </td> <td align="right">       392,833</td> <td> </td> <td> </td> <td align="left">   $</td> <td align="right">1.30</td> <td> </td> <td> </td> <td> </td> <td align="right">6.15</td> <td> </td> <td> </td> <td align="left">   $</td> <td align="right">328,971</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Exercisable, March 31, 2011 </div></td> <td> </td> <td> </td> <td align="right">126,829</td> <td> </td> <td> </td> <td align="left">   $</td> <td align="right">2.65</td> <td> </td> <td> </td> <td> </td> <td align="right">4.34</td> <td> </td> <td> </td> <td align="left">   $</td> <td align="right">62,111</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          The weighted average grant date fair value of options granted during the three months ended March 31, 2011 and 2010 was $0 and $0.46, respectively; no options were granted during 2011. The total intrinsic value of stock options exercised during the three months ended March 31, 2011 and 2010 was $2,099 and $0, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We recognized share-based payment expense associated with stock options of $9,977 and $10,528 for the three months ended March 31, 2011 and 2010, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          The following table summarizes the nonvested restricted stock and restricted stock unit activity under our share-based payment plans for the three months ended March 31, 2011 (shares in thousands): </div> <div align="center" style="margin-left:4%; margin-right:20%"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="76%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="11%"> </td> <td width="5%">   </td> <td width="1%">  </td> <td width="5%">   </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Weighted-Average</b></td> <td> </td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Grant Date</b></td> <td> </td> </tr> <tr style="font-size: 7.5pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Shares</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Fair Value</b></td> <td> </td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Nonvested, December 31, 2010 </div></td> <td> </td> <td> </td> <td align="right">2,397</td> <td> </td> <td> </td> <td align="left">   $</td> <td align="right">2.57</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Granted </div></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td align="left">   $</td> <td align="right">-</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Vested restricted stock awards </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,797</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">   $</td> <td align="right">3.31</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Vested restricted stock units </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(101</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">   $</td> <td align="right">3.08</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Forfeited </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(21</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">   $</td> <td align="right">3.05</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Nonvested, March 31, 2011 </div></td> <td> </td> <td> </td> <td align="right">478</td> <td> </td> <td> </td> <td align="left">   $</td> <td align="right">1.63</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          The weighted average grant date fair value of restricted stock units granted during the three months ended March 31, 2011 and 2010 was $0, as no shares were granted in the periods. The total intrinsic value of restricted stock and restricted stock units that vested during the three months ended March 31, 2011 and 2010 was $3,085 and $1,765, respectively. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="center" style="font-size: 10pt"> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We recognized share-based payment expense associated with restricted stock units and shares of restricted stock of $542 and $2,558 for the three months ended March 31, 2011 and 2010, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Total unrecognized compensation costs related to unvested share-based payment awards for stock options and restricted stock units and shares granted to employees and members of our board of directors at March 31, 2011 and December 31, 2010, net of estimated forfeitures, was $94,762 and $108,170, respectively. The weighted-average period over which the compensation expense for these awards is expected to be recognized is three years as of March 31, 2011. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>4</i></b><b><i>01(k)</i></b><b><i> Savings Plan</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We sponsor the Sirius XM Radio 401(k) Savings Plan (the “Sirius XM Plan”) for eligible employees. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          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, up to 6% of an employee’s pre-tax salary, in the form of shares of common stock. Employer matching contributions under the Sirius XM Plan vest at a rate of 33<sup style="font-size: 85%; vertical-align: text-top">1</sup>/<sub style="font-size: 85%; vertical-align: text-bottom">3</sub>% for each year of employment and are fully vested after three years of employment for all current and future contributions. Legacy XM Plan participants are fully vested for all current and future employer contributions. Share-based payment expense resulting from the matching contribution to the plans was $769 and $1,205 for the three months ended March 31, 2011 and 2010, respectively. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We may also elect to contribute to the profit sharing portion of the Sirius XM Plan based upon the total eligible compensation of eligible participants. These additional contributions in the form of shares of common stock are determined by the compensation committee of our board of directors. Employees are only eligible to receive profit-sharing contributions during any year in which they are employed on the last day of the year. Profit-sharing contribution expense was $0 and $1,250 for the three months ended March 31, 2011 and 2010, respectively. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(14) Commitments and Contingencies</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          The following table summarizes our expected contractual cash commitments as of March 31, 2011: </div> <div align="left" style="margin-right:6%"> <table style="font-size: 8pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="92%">  <tr valign="bottom"> <td width="25%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 7pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Remaining</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 7pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2012</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2013</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2014</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2015</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Thereafter</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Total</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Long-term debt obligations <sup style="font-size: 85%; vertical-align: text-top">(1)</sup> </div></td> <td> </td> <td align="left">  $</td> <td align="right">100,384</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">1,558</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">779,634</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">550,182</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">1,057,000</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">700,000</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">3,188,758</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Cash interest payments <sup style="font-size: 85%; vertical-align: text-top">(1)</sup> </div></td> <td> </td> <td> </td> <td align="right">229,054</td> <td> </td> <td> </td> <td> </td> <td align="right">288,335</td> <td> </td> <td> </td> <td> </td> <td align="right">288,208</td> <td> </td> <td> </td> <td> </td> <td align="right">186,935</td> <td> </td> <td> </td> <td> </td> <td align="right">113,433</td> <td> </td> <td> </td> <td> </td> <td align="right">160,125</td> <td> </td> <td> </td> <td> </td> <td align="right">1,266,090</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Satellite and transmission </div></td> <td> </td> <td> </td> <td align="right">107,597</td> <td> </td> <td> </td> <td> </td> <td align="right">4,734</td> <td> </td> <td> </td> <td> </td> <td align="right">4,773</td> <td> </td> <td> </td> <td> </td> <td align="right">13,250</td> <td> </td> <td> </td> <td> </td> <td align="right">13,156</td> <td> </td> <td> </td> <td> </td> <td align="right">22,093</td> <td> </td> <td> </td> <td> </td> <td align="right">165,603</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Programming and content </div></td> <td> </td> <td> </td> <td align="right">146,538</td> <td> </td> <td> </td> <td> </td> <td align="right">219,571</td> <td> </td> <td> </td> <td> </td> <td align="right">174,775</td> <td> </td> <td> </td> <td> </td> <td align="right">151,881</td> <td> </td> <td> </td> <td> </td> <td align="right">145,531</td> <td> </td> <td> </td> <td> </td> <td align="right">3,750</td> <td> </td> <td> </td> <td> </td> <td align="right">842,046</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Marketing and distribution </div></td> <td> </td> <td> </td> <td align="right">36,624</td> <td> </td> <td> </td> <td> </td> <td align="right">23,299</td> <td> </td> <td> </td> <td> </td> <td align="right">16,356</td> <td> </td> <td> </td> <td> </td> <td align="right">11,705</td> <td> </td> <td> </td> <td> </td> <td align="right">9,804</td> <td> </td> <td> </td> <td> </td> <td align="right">11,033</td> <td> </td> <td> </td> <td> </td> <td align="right">108,821</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Satellite incentive payments </div></td> <td> </td> <td> </td> <td align="right">8,345</td> <td> </td> <td> </td> <td> </td> <td align="right">12,095</td> <td> </td> <td> </td> <td> </td> <td align="right">12,810</td> <td> </td> <td> </td> <td> </td> <td align="right">12,841</td> <td> </td> <td> </td> <td> </td> <td align="right">12,189</td> <td> </td> <td> </td> <td> </td> <td align="right">86,143</td> <td> </td> <td> </td> <td> </td> <td align="right">144,423</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Operating lease obligations </div></td> <td> </td> <td> </td> <td align="right">24,203</td> <td> </td> <td> </td> <td> </td> <td align="right">30,050</td> <td> </td> <td> </td> <td> </td> <td align="right">26,374</td> <td> </td> <td> </td> <td> </td> <td align="right">20,314</td> <td> </td> <td> </td> <td> </td> <td align="right">12,308</td> <td> </td> <td> </td> <td> </td> <td align="right">4,740</td> <td> </td> <td> </td> <td> </td> <td align="right">117,989</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">23,326</td> <td> </td> <td> </td> <td> </td> <td align="right">10,752</td> <td> </td> <td> </td> <td> </td> <td align="right">401</td> <td> </td> <td> </td> <td> </td> <td align="right">44</td> <td> </td> <td> </td> <td> </td> <td align="right">43</td> <td> </td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> <td> </td> <td> </td> <td align="right">34,566</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total <sup style="font-size: 85%; vertical-align: text-top">(2)</sup> </div></td> <td> </td> <td align="left">  $</td> <td align="right">676,071</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">590,394</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">1,303,331</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">947,152</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">1,363,464</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">987,884</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">5,868,296</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 9pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96%"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(1)</sup></td> <td> </td> <td>Includes captial lease obligations.</td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left"><sup style="font-size: 85%; vertical-align: text-top">(2)</sup></td> <td> </td> <td>The table does not include our reserve for uncertain taxes, which at March 31, 2011 totaled $942, as the specific timing of any cash payments relating to this obligation cannot be projected with reasonable certainty.</td> </tr> </table> <div align="left" style="font-size: 10pt; margin-top: 10pt">          <i>Long-term debt obligations. </i>Long-term debt obligations include principal payments on outstanding debt and capital lease obligations. Included in the chart above in 2011 is $73,965 of the 3.25% Notes, which were purchased in April 2011 at a price of 101% of the principal amount plus accrued interest. Refer to Note 15. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          <i>Cash interest payments. </i>Cash interest payments include interest due on outstanding debt through maturity. The chart above does not give effect to the purchase of the 3.25% Notes in April 2011. Refer to Note 15. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          <i>Satellite and transmission. </i>We have entered into agreements with third parties to operate and maintain the off-site satellite telemetry, tracking and control facilities and certain components of our terrestrial repeater networks. We have also entered into various agreements to design and construct a satellite and related launch vehicle for use in our systems. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We have an agreement with Space Systems/Loral to design and construct a fifth satellite, FM-6, for use in the SIRIUS system. In January 2008, we entered into an agreement with International Launch Services (ILS) to secure a satellite launch on a Proton rocket for this satellite. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> </div> <div align="center" style="font-size: 10pt"> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          <i>Programming and content. </i>We have entered into various programming agreements. Under the terms of these agreements, we are obligated to provide payments to other entities that may include fixed payments, advertising commitments and revenue sharing arrangements. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          <i>Marketing and distribution. </i>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. We also reimburse automakers for certain engineering and development costs associated with the incorporation of satellite radios into vehicles they manufacture. In addition, in the event certain new products are not shipped by a distributor to its customers within 90 days of the distributor’s receipt of goods, we have agreed to purchase and take title to the product. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          <i>Satellite incentive payments. </i>Boeing Satellite Systems International, Inc., the manufacturer of four of XM’s in-orbit satellites, may be entitled to future in-orbit performance payments with respect to two of XM’s satellites. As of March 31, 2011, we have accrued $28,590 related to contingent in-orbit performance payments for XM-3 and XM-4 based on expected operating performance over their fifteen year design life. Boeing may also be entitled to an additional $10,000 if XM-4 continues to operate above baseline specifications during the five years beyond the satellite’s fifteen-year design life. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          Space Systems/Loral may be entitled to future in-orbit performance payments. As of March 31, 2011, we have accrued $12,118 and $21,450 related to contingent performance payments for FM-5 and XM-5, respectively, based on expected operating performance over their fifteen-year design life. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          <i>Operating lease obligations. </i>We have entered into 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 that 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. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          <i>Other. </i>We have entered into various agreements with third parties for general operating purposes. In addition to the minimum contractual cash commitments described above, we have entered into agreements with other variable cost arrangements. These future costs are dependent upon many factors, including subscriber growth, 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. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We do not have any other significant off-balance sheet arrangements that are reasonably likely to have a material effect on our financial condition, results of operations, liquidity, capital expenditures or capital resources. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>Legal Proceedings</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          <i>State Consumer Investigations</i>. A Multistate Working Group of 28 State Attorneys General, led by the Attorney General of the State of Ohio, is investigating certain of our consumer practices. The investigation focuses on practices relating to the cancellation of subscriptions; automatic renewal of subscriptions; charging, billing, collecting, and refunding or crediting of payments from consumers; and soliciting customers. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          A separate investigation into our consumer practices is being conducted by the Attorney General of the State of Florida. In addition, in September 2010, the Attorney General of the State of Missouri commenced an action against us in Missouri Circuit Court, Twenty-Second Judicial Circuit, St. Louis, Missouri, alleging violations of the Missouri Telemarketing No-Call List Act. The suit seeks a permanent injunction prohibiting us from making, or causing to be made, telephone solicitations to our subscribers in the State of Missouri who are on Missouri’s no-call list, statutory penalties and reimbursement of costs. We believe our telemarketing activities to our subscribers in Missouri fully comply with applicable law. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          We are cooperating with these investigations and believe our consumer practices comply with all applicable federal and state laws and regulations. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          <i>Carl Blessing et al. v. Sirius XM Radio Inc</i>. A subscriber, Carl Blessing, filed a lawsuit against us in the United States District Court for the Southern District of New York. Mr. Blessing’s lawsuit has been consolidated with substantially identical lawsuits brought by other subscribers. Mr. Blessing and 23 other plaintiffs purport to represent all subscribers who were subject to: </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"> <b> </b> <b> </b> </div> <div align="center" style="font-size: 10pt"> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">an increase in the price for additional-radio subscriptions from $6.99 to $8.99; the imposition of the US Music Royalty Fee; and the elimination of our free streaming internet service. Based on these pricing changes, the suit raises four claims. First, the suit claims the pricing changes show that the Merger lessened competition or led to a monopoly in violation of the Clayton Act. Second, it claims that, for the same reason, the Merger led to monopolization in violation of the Sherman Act. Third, it claims that our subscriber service agreement misrepresents that the US Music Royalty Fee will be used exclusively to defray increases in royalty costs incurred since the filing of the merger application with the FCC (and as permitted by the FCC order) in violation of the consumer protection and unfair trade practice laws of 41 states and the District of Columbia. A fourth claim – that the alleged misrepresentation violates the implied duty of good faith and fair dealing we owe our subscribers under New York contract law – has been dismissed by the court. The complaint seeks monetary damages as well as treble damages under the Clayton Act. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In March 2011, the court granted our motion for summary judgment and dismissed the plaintiffs’ claims that our subscriber service agreement misrepresents that the US Music Royalty Fee will be used exclusively to defray increases in royalty costs incurred since the filing of the merger application with the FCC (and as permitted by the FCC order) in violation of the consumer protection and unfair trade practice laws of 41 states and the District of Columbia. At the same time, the Court granted the plaintiff’s motion to certify as a class action, and denied our motion for summary judgment, the remaining claims that the Merger lessened competition, or led to a monopoly, in violation of the Clayton Act and led to monopolization in violation of the Sherman Act. A trial in this matter is expected to be scheduled for this summer. We believe that the plaintiffs’ claims are without merit and we are vigorously defending ourselves in this litigation. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          A stockholder, Mark Fialkov, also filed a shareholder derivative suit in the Supreme Court of the State of New York claiming that, by allowing the price increases that prompted the Blessing litigation, our board of directors breached its duty of loyalty to the corporation. The action names as defendants Sirius XM and fifteen individuals – all directors or former directors of Sirius XM. This lawsuit has been stayed pending resolution of the Blessing litigation. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          <i>One Twelve, Inc. and Don Buchwald v. Sirius XM Radio Inc. </i>In March 2011, One Twelve, Inc., Howard Stern’s production company, and Don Buchwald, Stern’s agent, commenced an action against us in the Supreme Court of the State of New York, County of New York. The action alleges that, upon the Merger, we failed to honor our obligations under the performance-based compensation provisions of our prior agreement dated October 2004 with One Twelve and Buchwald, as agent; One Twelve and Buchwald each assert a claim of breach of contract. More specifically, the complaint alleges that subscribers to the XM Satellite Radio service should have been counted as “Sirius subscribers” following the Merger for purposes of provisions entitling One Twelve and Buchwald to compensation in the event that the number of “Sirius subscribers” exceeded the projected growth amounts of Sirius subscribers by certain magnitudes specified in the 2004 agreement for each year of that agreement. The suit seeks damages, plus interest and costs, in an amount to be determined. We believe that the claims are without merit and intend to vigorously defend this action. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          <i>Other Matters</i>. In the ordinary course of business, we are a defendant in various 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 actions are, in our opinion, likely to have a material adverse effect on our business, financial condition or results of operations. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(15) Subsequent Events</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">     <b><i>Repurchase of 3.25% Notes</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">          In April 2011, we repurchased $73,965 of the outstanding 3.25% Notes at a price of 101% of the principal amount plus accrued interest. We will recognize an aggregate loss on extinguishment of approximately $1,200 on the 3.25% Notes, which consists primarily of cash premium paid and unamortized debt discount in the second quarter. </div> </div>

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