Quarterly report pursuant to Section 13 or 15(d)

Segments and Geographic Information

v3.22.2
Segments and Geographic Information
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Segments and Geographic Information Segments and Geographic InformationIn 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 intersegment advertising revenue of less than $1 and $1 during the three and six months ended June 30, 2022, respectively, and less than $1 during each of the three and six months ended June 30, 2021.
Segment revenue and gross profit were as follows during the period presented:
For the Three Months Ended June 30, 2022
Sirius XM Pandora and Off-platform Total
Revenue
Subscriber revenue $ 1,588  $ 131  $ 1,719 
Advertising revenue 49  403  452 
Equipment revenue 45  —  45 
Other revenue 37  —  37 
Total revenue 1,719  534  2,253 
Cost of services (a)
(668) (367) (1,035)
Segment gross profit $ 1,051  $ 167  $ 1,218 
The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Three Months Ended June 30, 2022
Segment Gross Profit $ 1,218 
Subscriber acquisition costs (91)
Sales and marketing (a)
(272)
Engineering, design and development (a)
(63)
General and administrative (a)
(113)
Depreciation and amortization (135)
Share-based payment expense (47)
Impairment, restructuring and acquisition costs (1)
Total other expense (108)
Consolidated income before income taxes $ 388 
(a)     Share-based payment expense of $11 related to cost of services, $13 related to sales and marketing, $9 related to engineering, design and development and $14 related to general and administrative has been excluded.

For the Three Months Ended June 30, 2021
Sirius XM Pandora and Off-platform Total
Revenue
Subscriber revenue $ 1,508  $ 133  $ 1,641 
Advertising revenue 46  383  429 
Equipment revenue 51  —  51 
Other revenue 38  —  38 
Total revenue 1,643  516  2,159 
Cost of services (b)
(647) (323) (970)
Segment gross profit $ 996  $ 193  $ 1,189 
    The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Three Months Ended June 30, 2021
Segment Gross Profit $ 1,189 
Subscriber acquisition costs (89)
Sales and marketing (b)
(227)
Engineering, design and development (b)
(59)
General and administrative (b)
(114)
Depreciation and amortization (131)
Share-based payment expense (47)
Impairment, restructuring and acquisition costs 136 
Total other expense (98)
Consolidated income before income taxes $ 560 
(b)     Share-based payment expense of $12 related to cost of services, $13 related to sales and marketing, $6 related to engineering, design and development and $16 related to general and administrative has been excluded.

For the Six Months Ended June 30, 2022
Sirius XM Pandora and Off-platform Total
Revenue
Subscriber revenue $ 3,170  $ 262  $ 3,432 
Advertising revenue 97  738  835 
Equipment revenue 98  —  98 
Other revenue 75  —  75 
Total revenue 3,440  1,000  4,440 
Cost of services (c)
(1,317) (697) (2,014)
Segment gross profit $ 2,123  $ 303  $ 2,426 
The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Six Months Ended June 30, 2022
Segment Gross Profit $ 2,426 
Subscriber acquisition costs (181)
Sales and marketing (c)
(531)
Engineering, design and development (c)
(122)
General and administrative (c)
(223)
Depreciation and amortization (270)
Share-based payment expense (92)
Impairment, restructuring and acquisition costs (1)
Total other expense (208)
Consolidated income before income taxes $ 798 
(c)     Share-based payment expense of $22 related to cost of services, $26 related to sales and marketing, $17 related to engineering, design and development and $27 related to general and administrative has been excluded.
For the Six Months Ended June 30, 2021
Sirius XM Pandora and Off-platform Total
Revenue
Subscriber revenue $ 2,989  $ 263  $ 3,252 
Advertising revenue 87  696  783 
Equipment revenue 108  —  108 
Other revenue 74  —  74 
Total revenue 3,258  959  4,217 
Cost of services (d)
(1,270) (630) (1,900)
Segment gross profit $ 1,988  $ 329  $ 2,317 
The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Six Months Ended June 30, 2021
Segment Gross Profit $ 2,317 
Subscriber acquisition costs (175)
Sales and marketing (d)
(428)
Engineering, design and development (d)
(113)
General and administrative (d)
(220)
Depreciation and amortization (263)
Share-based payment expense (98)
Impairment, restructuring and acquisition costs (108)
Total other expense (195)
Consolidated income before income taxes $ 717 
(d)     Share-based payment expense of $22 related to cost of services, $28 related to sales and marketing, $17 related to engineering, design and development and $31 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 June 30, 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 three and six months ended June 30, 2022 and 2021.