Quarterly report pursuant to Section 13 or 15(d)

Segments and Geographic Information

v3.24.1.u1
Segments and Geographic Information
 3 Months Ended
Mar. 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 intersegment advertising revenue of $2 and $1 during the three months ended March 31, 2024 and 2023, respectively.
Segment revenue and gross profit were as follows during the period presented:
For the Three Months Ended March 31, 2024
Sirius XM Pandora and Off-platform Total
Revenue
Subscriber revenue $ 1,547  $ 133  $ 1,680 
Advertising revenue 40  362  402 
Equipment revenue 50  —  50 
Other revenue 30  —  30 
Total revenue 1,667  495  2,162 
Cost of services (a)
(674) (352) (1,026)
Segment gross profit $ 993  $ 143  $ 1,136 
The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Three Months Ended March 31, 2024
Segment Gross Profit $ 1,136 
Subscriber acquisition costs (90)
Sales and marketing (a)
(217)
Engineering, design and development (a)
(74)
General and administrative (a)
(105)
Depreciation and amortization (140)
Share-based payment expense (45)
Impairment, restructuring and acquisition costs (28)
Total other expense (92)
Consolidated income before income taxes $ 345 
(a)     Share-based payment expense of $11 related to cost of services, $12 related to sales and marketing, $12 related to engineering, design and development and $10 related to general and administrative has been excluded.
For the Three Months Ended March 31, 2023
Sirius XM Pandora and Off-platform Total
Revenue
Subscriber revenue $ 1,563  $ 128  $ 1,691 
Advertising revenue 41  334  375 
Equipment revenue 46  —  46 
Other revenue 32  —  32 
Total revenue 1,682  462  2,144 
Cost of services (b)
(664) (351) (1,015)
Segment gross profit $ 1,018  $ 111  $ 1,129 
    The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Three Months Ended March 31, 2023
Segment Gross Profit $ 1,129 
Subscriber acquisition costs (90)
Sales and marketing (b)
(214)
Engineering, design and development (b)
(68)
General and administrative (b)
(132)
Depreciation and amortization (136)
Share-based payment expense (45)
Impairment, restructuring and acquisition costs (32)
Total other expense (104)
Consolidated income before income taxes $ 308 
(b)     Share-based payment expense of $9 related to cost of services, $10 related to sales and marketing, $11 related to engineering, design and development and $15 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 March 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 three months ended March 31, 2024 and 2023.