Annual report pursuant to Section 13 and 15(d)

Segments and Geographic Information

v3.22.4
Segments and Geographic Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segments and Geographic Information Segments and Geographic Information
In accordance with FASB ASC Topic 280, Segment Reporting, we disaggregate our operations into two reportable segments: Sirius XM and Pandora and Off-platform. The financial results of these segments are utilized by the chief operating decision maker, who is our Chief Executive Officer, for evaluating segment performance and allocating resources. We report our segment information based on the "management" approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments. For additional information on our segments refer to Note 1.
Segment results include the revenues and cost of services which are directly attributable to each segment. There are no indirect revenues or costs incurred that are allocated to the segments. There are planned intersegment advertising campaigns which will be eliminated. We had less than $1 of intersegment advertising revenue during the years ended December 31, 2022 and 2021.
Segment revenue and gross profit were as follows during the periods presented:
For the Year Ended December 31, 2022
Sirius XM Pandora and Off-platform Total
Revenue
Subscriber revenue $ 6,370  $ 522  $ 6,892 
Advertising revenue 196  1,576  1,772 
Equipment revenue 189  —  189 
Other revenue 150  —  150 
Total revenue 6,905  2,098  9,003 
Cost of services (a)
(2,641) (1,443) (4,084)
Segment gross profit $ 4,264  $ 655  $ 4,919 

The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Year Ended December 31, 2022
Segment Gross Profit $ 4,919 
Subscriber acquisition costs (352)
Sales and marketing (a)
(1,023)
Engineering, design and development (a)
(246)
General and administrative (a)
(465)
Depreciation and amortization (536)
Share-based payment expense (197)
Impairment, restructuring and acquisition costs (64)
Total other (expense) income (431)
Consolidated income before income taxes $ 1,605 
(a)     Share-based payment expense of $46 related to cost of services, $52 related to sales and marketing, $39 related to engineering, design and development and $60 related to general and administrative has been excluded for the year ended December 31, 2022.

For the Year Ended December 31, 2021
Sirius XM Pandora and Off-platform Total
Revenue
Subscriber revenue $ 6,084  $ 530  $ 6,614 
Advertising revenue 188  1,542  1,730 
Equipment revenue 201  —  201 
Other revenue 151  —  151 
Total revenue 6,624  2,072  8,696 
Cost of services (b)
(2,594) (1,329) (3,923)
Segment gross profit $ 4,030  $ 743  $ 4,773 
The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Year Ended December 31, 2021
Segment Gross Profit $ 4,773 
Subscriber acquisition costs (325)
Sales and marketing (b)
(998)
Engineering, design and development (b)
(229)
General and administrative (b)
(451)
Depreciation and amortization (533)
Share-based payment expense (202)
Impairment, restructuring and acquisition costs (20)
Total other (expense) income (489)
Consolidated income before income taxes $ 1,526 
(b)     Share-based payment expense of $45 related to cost of services, $58 related to sales and marketing, $36 related to engineering, design and development and $63 related to general and administrative has been excluded for the year ended December 31, 2021.

For the Year Ended December 31, 2020
Sirius XM Pandora and Off-platform Total
Revenue
Subscriber revenue $ 5,857  $ 515  $ 6,372 
Advertising revenue 157  1,183  1,340 
Equipment revenue 173  —  173 
Other revenue 155  —  155 
Total revenue 6,342  1,698  8,040 
Cost of services (c)
(2,430) (1,105) (3,535)
Segment gross profit $ 3,912  $ 593  $ 4,505 

The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Year Ended December 31, 2020
Segment Gross Profit $ 4,505 
Subscriber acquisition costs (362)
Sales and marketing (c)
(889)
Engineering, design and development (c)
(220)
General and administrative (c)
(443)
Depreciation and amortization (506)
Share-based payment expense (223)
Impairment, restructuring and acquisition costs (1,004)
Total other (expense) income (428)
Consolidated income before income taxes $ 430 
(c)     Share-based payment expense of $44 related to cost of services, $68 related to sales and marketing, $43 related to engineering, design and development and $68 related to general and administrative has been excluded for the year ended December 31, 2020.
A measure of segment assets is not currently provided to the Chief Executive Officer and has therefore not been provided.
As of December 31, 2022, long-lived assets were predominantly located in the United States. No individual foreign country represented a material portion of our consolidated revenue during the year ended December 31, 2022.