Quarterly report pursuant to Section 13 or 15(d)

Segments and Geographic Information

v3.21.2
Segments and Geographic Information
 9 Months Ended
Sep. 30, 2021
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. 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 each of the three and nine months ended September 30, 2021 and 2020.
Segment revenue and gross profit were as follows during the period presented:
For the Three Months Ended September 30, 2021
Sirius XM Pandora Total
Revenue
Subscriber revenue $ 1,532  $ 134  $ 1,666 
Advertising revenue 47  404  451 
Equipment revenue 41  —  41 
Other revenue 40  —  40 
Total revenue 1,660  538  2,198 
Cost of services (a)
(645) (341) (986)
Segment gross profit $ 1,015  $ 197  $ 1,212 
The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Three Months Ended September 30, 2021
Segment Gross Profit $ 1,212 
Subscriber acquisition costs (71)
Sales and marketing (a)
(254)
Engineering, design and development (a)
(59)
General and administrative (a)
(109)
Depreciation and amortization (135)
Share-based payment expense (51)
Impairment, restructuring and acquisition costs 95 
Total other (expense) income (195)
Consolidated income before income taxes $ 433 
(a)     Share-based payment expense of $11 related to cost of services, $15 related to sales and marketing, $9 related to engineering, design and development and $16 related to general and administrative has been excluded.
For the Three Months Ended September 30, 2020
Sirius XM Pandora Total
Revenue
Subscriber revenue $ 1,462  $ 132  $ 1,594 
Advertising revenue 39  306  345 
Equipment revenue 47  —  47 
Other revenue 39  —  39 
Total revenue 1,587  438  2,025 
Cost of services (b)
(610) (274) (884)
Segment gross profit $ 977  $ 164  $ 1,141 
    The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Three Months Ended September 30, 2020
Segment Gross Profit $ 1,141 
Subscriber acquisition costs (110)
Sales and marketing (b)
(205)
Engineering, design and development (b)
(53)
General and administrative (b)
(112)
Depreciation and amortization (125)
Share-based payment expense (58)
Total other (expense) income (134)
Consolidated income before income taxes $ 344 
(b)     Share-based payment expense of $11 related to cost of services, $17 related to sales and marketing, $11 related to engineering, design and development and $19 related to general and administrative has been excluded.

For the Nine Months Ended September 30, 2021
Sirius XM Pandora Total
Revenue
Subscriber revenue $ 4,521  $ 397  $ 4,918 
Advertising revenue 135  1,100  1,235 
Equipment revenue 149  —  149 
Other revenue 113  —  113 
Total revenue 4,918  1,497  6,415 
Cost of services (c)
(1,916) (971) (2,887)
Segment gross profit $ 3,002  $ 526  $ 3,528 
The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Nine Months Ended September 30, 2021
Segment Gross Profit $ 3,528 
Subscriber acquisition costs (245)
Sales and marketing (c)
(682)
Engineering, design and development (c)
(171)
General and administrative (c)
(329)
Depreciation and amortization (399)
Share-based payment expense (149)
Impairment, restructuring and acquisition costs (13)
Total other (expense) income (388)
Consolidated income before income taxes $ 1,152 
(c)     Share-based payment expense of $33 related to cost of services, $43 related to sales and marketing, $26 related to engineering, design and development and $47 related to general and administrative has been excluded.


For the Nine Months Ended September 30,2020
Sirius XM Pandora Total
Revenue
Subscriber revenue $ 4,372  $ 385  $ 4,757 
Advertising revenue 108  758  866 
Equipment revenue 113  —  113 
Other revenue 115  —  115 
Total revenue 4,708  1,143  5,851 
Cost of services (d)
(1,796) (783) (2,579)
Segment gross profit $ 2,912  $ 360  $ 3,272 
The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Nine Months Ended September 30, 2020
Segment Gross Profit $ 3,272 
Subscriber acquisition costs (257)
Sales and marketing (d)
(614)
Engineering, design and development (d)
(165)
General and administrative (d)
(305)
Depreciation and amortization (381)
Share-based payment expense (165)
Impairment, restructuring and acquisition costs (24)
Total other (expense) income (327)
Consolidated income before income taxes $ 1,034 
(d)     Share-based payment expense of $32 related to cost of services, $50 related to sales and marketing, $31 related to engineering, design and development and $52 related to general and administrative has been excluded.
A measure of segment assets is not currently provided to the Chief Executive Officer and has therefore not been provided.
As of September 30, 2021, long-lived assets were predominantly located in the United States. No individual foreign country represented a material portion of our consolidated revenue during the three and nine months ended September 30, 2021 and 2020.