($millions) December 31 2011 2012

ASSETS
Cash and cash equivalents 43 5
Short-term investments 26 18
Trade accounts receivable 8 32
Inventory 2 11
Prepaid expenses and other current assets 5 25
Total current assets 84 91

Property And Equipment, Net 20 70

Product development costs, net 7 19
Deferred subscriber acquisition costs, net 26 77
Goodwill and other intangible assets, net - 54
Other assets 18 55

Total Assets 155 366

LIABILITIES AND STOCKHOLDERS' EQUITY

Trade accounts payable 15 84
Other accrued expenses and liabilities 13 25
Deferred revenue 4 20
Accrued personnel costs 3 4
Total current liabilities 36 133

Long-term debt 6 17
Other liabilities 14 39
Total liabilities 56 189

Common Stock, $01 par value 1 1

Additional paid-in capital 99 170
Accumulated deficit (1) 6
Total stockholders' equity 99 177

Total laibilities and stockholders' equity 155 366

($millions) Year ended December 31 2011 2012

Total revenues 116 429

Cost of revenues 69 229

Marketing Expenses 24 98
Product development expenses 5 33
General and administrative expense 13 42
Amortization of intangible assets - 12
Total costs and expenses 111 414

Income (Loss) from Operations 4 15

Other Income (Expense), Net 3 1

Income (Loss) Before Provision For Income Taxes 7 16

Provision For Income Taxes (4) (9)

Net Income (Loss) 3 7

($millions) Year ended December 31 2011 2012

Cash Flows From Operating Activities:
Net income (loss) 3 7
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization 3 11
Amortization of subscriber acquisition costs 18 61
Changes in assets and liabilities, net of the effects of acquisitions and dispositions:
Trade accounts receivable (4) (14)
Inventory (1) (9)
Prepaid expenses and other current assets (3) (20)
Deferred subscriber acquisition costs (37) (112)
Other assets (3) (38)
Accrued expenses and other current liabilities 20 66
Deferred income taxes 4 15
Deferred revenue and other liabilities 2 10
Total adjustments (1) (30)
Net Cash Provided By (Used In) Operating Activities 2 (23)

Cash Flows From Investing Activities:

Purchase of property and equipment (18) (58)
Product development costs (5) (13)
Purchase of available-for-sale securities (19) 5
Net payments for acquisitions - (20)
Net Cash Used In Investing Activities (42) (86)

Cash Flows From Financing Activities:

Proceeds from issuance of common stock, net 67 61
Payments on debt (8) (3)
Proceeds from issuance of debt 15 13
Net Cash Provided By Financing Activities 74 71

Net Increase In Cash And Cash Equivalents 34 (38)

Cash And Cash Equivalents At Beginning Of Year 9 43
Cash And Cash Equivalents At End Of Year 43 5
 2011 2012
Balance Sheet
Deferred subscriber acquisition costs, net 26 77
Total Assets 155 366
DSAC/Total Assets 16.8% 21.0%

Income Statement
Amortization of Deferred subscriber acquisition costs 18 61
Revenues 116 429
DSAC Exp/Revenues 15.5% 14.2%
DSAC Exp/Avg Bal DSAC 1.029 1.184
Months of Amortization 11.67 10.13

SCF
Net Income 3 7
CFO 2 (23)
NI-CFO 1 30

Net Income if expense immediately

Net Income 3 7
Amortization of Deferred subscriber acquisition costs 18 61
Deferred subscriber acquisition costs (37) (112)
Tax adjustment 7 18
Net Income if expense immediately (9) (26)
6.65
 ($millions) December 31 2011 2012 2013
ASSETS
Cash and cash equivalents 43 5 77
Short-term investments 26 18 11
Trade accounts receivable 8 32 43
Inventory 2 11 30
Prepaid expenses and other current assets 5 25 69
Total current assets 84 91 230

Property And Equipment, Net 20 70 101

Product development costs, net 7 19 44
Deferred subscriber acquisition costs, net 26 77 314
Goodwill and other intangible assets, net - 54 57
Other assets 18 55 39

Total Assets 155 366 785

LIABILITIES AND STOCKHOLDERS' EQUITY

Trade accounts payable 15 84 106
Other accrued expenses and liabilities 13 25 128
Deferred revenue 4 20 38
Accrued personnel costs 3 4 18
Total current liabilities 36 133 290

Long-term debt 6 17 19
Other liabilities 14 39 1
Total liabilities 56 189 310

Common Stock, $01 par value 1 1 2

Additional paid-in capital 99 170 437
Accumulated deficit (1) 6 36
Total stockholders' equity 99 177 475

Total laibilities and stockholders' equity 155 366 785

($millions) Year ended December 31 2011 2012 2013

Total revenues 116 429 1,094

Cost of revenues 69 229 654

Marketing Expenses 24 98 220
Product development expenses 5 33 58
General and administrative expense 13 42 73
Amortization of intangible assets - 12 24
Total costs and expenses 111 414 1,029

Income (Loss) from Operations 4 15 65

Other Income (Expense), Net 3 1 (3)

Income (Loss) Before Provision For Income Taxes 7 16 62

Provision For Income Taxes (4) (9) (32)

Net Income (Loss) 3 7 30

($millions) Year ended December 31 2011 2012 2013

Cash Flows From Operating Activities:
Net income (loss) 3 7 30
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization 3 11 52
Amortization of subscriber acquisition costs 18 61 126
Gain on sale of investments - - (2)
Changes in assets and liabilities, net of the effects of acquisitions and dispositions:
Trade accounts receivable (4) (14) (17)
Inventory (1) (9) (12)
Prepaid expenses and other current assets (3) (20) (40)
Deferred subscriber acquisition costs (37) (112) (363)
Other assets (3) (38) (11)
Accrued expenses and other current liabilities 20 66 137
Deferred income taxes 4 15 33
Deferred revenue and other liabilities 2 10 18
Investments - - 5
Total adjustments (1) (30) (74)
Net Cash Provided By (Used In) Operating Activities 2 (23) (44)

Cash Flows From Investing Activities:

Purchase of property and equipment (18) (58) (58)
Product development costs (5) (13) (33)
Purchase of available-for-sale securities (19) 5 (12)
Net payments for acquisitions - (20) -
Other investing activities - - 1
Net Cash Used In Investing Activities (42) (86) (102)

Cash Flows From Financing Activities:

Proceeds from issuance of common stock, net 67 61 217
Payments on debt (8) (3) (2)
Proceeds from issuance of debt 15 13 3
Net Cash Provided By Financing Activities 74 71 218

Net Increase In Cash And Cash Equivalents 34 (38) 72

Cash And Cash Equivalents At Beginning Of Year 9 43 5
Cash And Cash Equivalents At End Of Year 43 5 77
 2011 2012 2013
Balance Sheet
Deferred subscriber acquisition costs, net 26 77 314
Total Assets 155 366 785
DSAC/Total Assets 16.8% 21.0% 40.0%

Income Statement
Amortization of Deferred subscriber acquisition costs 18 61 126
Revenues 116 429 1,094
DSAC Exp/Revenues 15.5% 14.2% 11.5%
DSAC Exp/Avg Bal DSAC 1.029 1.184 0.645
Months of Amortization 11.67 10.13 18.62

SCF
Net Income 3 7 30
CFO 2 (23) (44)
NI-CFO 1 30 74

Net Income if expense immediately

Net Income 3 7 30
Amortization of Deferred subscriber acquisition costs 18 61 126
Deferred subscriber acquisition costs (37) (112) (363)
Tax adjustment 7 18 83
Net Income if expense immediately (9) (26) (124)
 ($millions) December 31 2011 2012 2013
ASSETS
Cash and cash equivalents 43 5 77
Short-term investments 26 18 11
Trade accounts receivable 8 32 43
Inventory 2 11 30
Prepaid expenses and other current assets 5 25 69
Total current assets 84 91 230

Property And Equipment, Net 20 70 101

Investments including available-for-sale securities - - -
Product development costs, net 7 19 44
Deferred subscriber acquisition costs, net 26 77 314
Goodwill and other intangible assets, net - 54 57
Other assets 18 55 39

Total Assets 155 366 785

LIABILITIES AND STOCKHOLDERS' EQUITY

Trade accounts payable 15 84 106
Other accrued expenses and liabilities 13 25 128
Deferred revenue 4 20 38
Accrued personnel costs 3 4 18
Total current liabilities 36 133 290

Long-term debt 6 17 19
Other liabilities 14 39 1
Deferred revenue - - -
Total liabilities 56 189 310

Common Stock, $01 par value 1 1 2

Additional paid-in capital 99 170 437
Accumulated deficit (1) 6 36
Unrealized gain on available-for-sale securities - - -
Total stockholders' equity 99 177 475

Total laibilities and stockholders' equity 155 366 785

($millions) Year ended December 31 2011 2012 2013

Total revenues 116 429 1,094

Cost of revenues 69 229 654

Marketing Expenses 24 98 220
Product development expenses 5 33 58
General and administrative expense 13 42 73
Amortization of intangible assets - 12 24
Write-off of deferred subscriber acquisition costs - - -
Total costs and expenses 111 414 1,029

Income (Loss) from Operations 4 15 65

Other Income (Expense), Net 3 1 (3)

Income (Loss) Before Provision For Income Taxes 7 16 62

Provision For Income Taxes (4) (9) (32)

Net Income (Loss) 3 7 30

($millions) Year ended December 31 2011 2012 2013

Cash Flows From Operating Activities:
Net income (loss) 3 7 30
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization 3 11 52
Amortization of subscriber acquisition costs 18 61 126
Non-cash restructuring charges - - -
Gain on sale of investments - - (2)
Write-off of deferred subscriber acquisition cost - - -
Changes in assets and liabilities, net of the effects of acquisitions and dispositions:
Trade accounts receivable (4) (14) (17)
Inventory (1) (9) (12)
Prepaid expenses and other current assets (3) (20) (40)
Deferred subscriber acquisition costs (37) (112) (363)
Other assets (3) (38) (11)
Accrued expenses and other current liabilities 20 66 137
Deferred income taxes 4 15 33
Deferred revenue and other liabilities 2 10 18
Investments - - 5
Total adjustments (1) (30) (74)
Net Cash Provided By (Used In) Operating Activities 2 (23) (44)

Cash Flows From Investing Activities:

Purchase of property and equipment (18) (58) (58)
Product development costs (5) (13) (33)
Purchase of available-for-sale securities (19) 5 (12)
Net payments for acquisitions - (20) -
Other investing activities - - 1
Net Cash Used In Investing Activities (42) (86) (102)

Cash Flows From Financing Activities:

Proceeds from issuance of common stock, net 67 61 217
Payments on debt (8) (3) (2)
Proceeds from issuance of debt 15 13 3
Proceeds from sale and leaseback of property and equipment - - -
Net Cash Provided By Financing Activities 74 71 218

Net Increase In Cash And Cash Equivalents 34 (38) 72

Cash And Cash Equivalents At Beginning Of Year 9 43 5
Cash And Cash Equivalents At End Of Year 43 5 77
2014 2011 2012
Balance Sheet
83 Deferred subscriber acquisition costs, net 26 77
- Total Assets 155 366
65 DSAC/Total Assets 16.8% 21.0%
26
108 Income Statement
282 Amortization of Deferred subscriber acquisition costs 18 61
Revenues 116 429
233 DSAC Exp/Revenues 15.5% 14.2%
131 DSAC Exp/Avg Bal DSAC 1.029 1.184
73 Months of Amortization 11.67 10.13
-
59 SCF
17 Net Income (excl. write-off) 3 7
CFO 2 (23)
795 NI-CFO 1 30

Net Income if expense immediately

68 Net Income 3 7
299 Amortization of Deferred subscriber acquisition costs 18 61
166 Write off of Deferred subscriber acquisition costs
20 Deferred subscriber acquisition costs (37) (112)
553 Tax adjustment 7 18
Net Income if expense immediately (9) (26)
50
4
86
693

2
546
(463)
17
102

795

2014
1,685

1,074
422
79
127
103
 385
2,190

(505)
6

(499)
-

(499)

2014

(499)

65
59
22
-
385

(16)
2
(44)
(130)
(6)
105
-
214
(30)
626
127

(149)
(57)
(3)
-
(11)
(220)

99
(71)
51
20
99

6
77
83
 2013 2014

314 0
785 795
40.0% 0.0%

126 59
1,094 1,685
11.5% 3.5%
0.645 0.376
18.62 31.93

30 136
(44) 127
74 9

30 (499)
126 59
385
(363) (130)
83 25
(124) (160)