Annual report pursuant to Section 13 and 15(d)

Segments and Geographic Information

v3.24.4
Segments and Geographic Information
 12 Months Ended
Dec. 31, 2024
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 $4, $3 and less than $1 of intersegment advertising revenue during the years ended December 31, 2024, 2023 and 2022, respectively.
Segment revenue and gross profit were as follows during the periods presented:
For the Year Ended December 31, 2024
Sirius XM Pandora and Off-platform Total
Revenue
Subscriber revenue $ 6,076  $ 540  $ 6,616 
Advertising revenue 167  1,606  1,773 
Other revenue 310  —  310 
Total revenue 6,553  2,146  8,699 
Cost of services
Revenue share and royalties
 $ (1,565) $ (1,270) $ (2,835)
Programming and content (a)
(517) (58) (575)
Other (a)(b)
(560) (113) (673)
Total cost of services
 (2,642) (1,441) (4,083)
Segment gross profit $ 3,911  $ 705  $ 4,616 

The reconciliation between reportable segment gross profit to consolidated loss before income tax is as follows:
For the Year Ended December 31, 2024
Segment Gross Profit $ 4,616 
Subscriber acquisition costs (369)
Sales and marketing (a)
(849)
Product and technology (a)
(252)
General and administrative (a)
(432)
Depreciation and amortization (578)
Share-based payment expense (200)
Impairment, restructuring and acquisition costs (3,453)
Total other (expense) income (348)
Consolidated loss before income taxes
 $ (1,865)
(a)     Share-based payment expense of $46 related to cost of services, $45 related to sales and marketing, $44 related to product and technology and $65 related to general and administrative has been excluded for the year ended December 31, 2024.
(b)    Sirius XM other costs of services related to customer service and billing of $364, transmission costs of $186 and cost of equipment of $10. Pandora other costs of services related to customer service and billing of $79 and transmission costs of $34.
For the Year Ended December 31, 2023
Sirius XM Pandora and Off-platform Total
Revenue
Subscriber revenue $ 6,342  $ 524  $ 6,866 
Advertising revenue 169  1,589  1,758 
Other revenue 329  —  329 
Total revenue 6,840  2,113  8,953 
Cost of services
Revenue share and royalties $ (1,603) $ (1,292) $ (2,895)
Programming and content (c)
(518) (66) (584)
Other (c)(d)
(568) (117) (685)
Total cost of services
 (2,689) (1,475) (4,164)
Segment gross profit $ 4,151  $ 638  $ 4,789 

The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Year Ended December 31, 2023
Segment Gross Profit $ 4,789 
Subscriber acquisition costs (359)
Sales and marketing (c)
(886)
Product and technology (c)
(276)
General and administrative (c)
(541)
Depreciation and amortization (624)
Share-based payment expense (203)
Impairment, restructuring and acquisition costs (92)
Total other (expense) income (598)
Consolidated income before income taxes $ 1,210 
(c)     Share-based payment expense of $45 related to cost of services, $45 related to sales and marketing, $46 related to product and technology and $67 related to general and administrative has been excluded for the year ended December 31, 2023.
(d)    Sirius XM other costs of services related to customer service and billing of $388, transmission costs $166 and cost of equipment $14. Pandora other costs of services related to customer service and billing of $83 and transmission costs $34.
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 
Other revenue 339  —  339 
Total revenue 6,905  2,098  9,003 
Cost of services
Revenue share and royalties $ (1,552) $ (1,250) $ (2,802)
Programming and content (e)
(514) (56) (570)
Other (e)(f)
(575) (137) (712)
Total cost of services
 (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 (e)
(1,023)
Product and technology (e)
(246)
General and administrative (e)
(491)
Depreciation and amortization (611)
Share-based payment expense (209)
Impairment, restructuring and acquisition costs (68)
Total other (expense) income (433)
Consolidated income before income taxes $ 1,486 
(e)     Share-based payment expense of $46 related to cost of services, $52 related to sales and marketing, $39 related to product and technology and $72 related to general and administrative has been excluded for the year ended December 31, 2022.
(f)    Sirius XM other costs of services related to customer service and billing of $409, transmission costs $153 and cost of equipment $13. Pandora other costs of services related to customer service and billing of $82 and transmission costs $55.
The segment gross profit above is regularly provided to Chief Operating Decision Maker to assess which segment is more profitable as well as to identify opportunities and risks to profitability within the segments to determine resource allocations accordingly.
A measure of segment assets is not currently provided to the Chief Operating Decision Maker and has therefore not been provided.
As of December 31, 2024, 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, 2024.