The Texas Court of Appeals agreed with Sirius XM Radio Inc.’s (Sirius XM) cost-of-performance (COP) method to determine the fair value of Sirius XM’s services performed in Texas. Earlier in this litigation, the Texas Supreme Court found in favor of Sirius XM that origination sourcing, i.e., to where services are “performed,” was required by the Texas Franchise Tax apportionment statute. The Texas Supreme Court remanded the case to the Texas Court of Appeals to determine whether Sirius XM’s COP method accurately represented the fair value of Sirius XM’s services performed in Texas. On remand, the Texas Court of Appeals relied on the Comptroller’s own guidance indicating that COP is an appropriate method for calculating the fair value of services performed in Texas. Accordingly, the court sustained Sirius XM’s use of the COP method. Hegar v. Sirius XM Radio, Inc., No. 03-18-00573-CV (Tex. App. Nov. 10, 2022).