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SIRI » Topics » Equity Method Investments

This excerpt taken from the SIRI 10-K filed Mar 13, 2006.
Equity Method Investments

      We have a 49.9% economic interest in SIRIUS Canada. Our investment in SIRIUS Canada is recorded using the equity method since we have significant influence, but less than a controlling voting interest in the entity. Under this method, our investment in SIRIUS Canada, originally recorded at cost, is adjusted to recognize our share of net earnings or losses as they occur rather than as dividends or other distributions are received, limited to the extent of our investment in, advances to and commitments to fund SIRIUS Canada. Our share of net earnings or losses of SIRIUS Canada is recorded in income (expense) from affiliate in our accompanying consolidated statements of operations.

   

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