XML 37 R26.htm IDEA: XBRL DOCUMENT v3.20.2
Segments and Geographic Information
 6 Months Ended
Jun. 30, 2020
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 both the three and six months ended June 30, 2020 and 2019.
Segment revenue and gross profit were as follows during the periods presented:
For the Three Months Ended June 30, 2020
Sirius XMPandoraTotal
Revenue
Subscriber revenue$1,453  $125  $1,578  
Advertising revenue25  211  236  
Equipment revenue25  —  25  
Other revenue35  —  35  
Total revenue1,538  336  1,874  
Cost of services (a)
(593) (263) (856) 
Segment gross profit$945  $73  $1,018  
The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Three Months Ended June 30, 2020
Segment Gross Profit$1,018  
Subscriber acquisition costs(48) 
Sales and marketing (a)
(201) 
Engineering, design and development (a)
(52) 
General and administrative (a)
(102) 
Depreciation and amortization(124) 
Share-based payment expense(52) 
Acquisition and restructuring costs(24) 
Total other (expense) income(98) 
Consolidated income before income taxes$317  
(a)  Share-based payment expense of $10 related to cost of services, $16 related to sales and marketing, $9 related to engineering, design and development and $17 related to general and administrative has been excluded.
For the Three Months Ended June 30, 2019
Sirius XMPandoraTotal
Revenue
Subscriber revenue$1,402  $135  $1,537  
Advertising revenue52  306  358  
Equipment revenue41  —  41  
Other revenue41  —  41  
Total revenue1,536  441  1,977  
Cost of services (b)
(594) (278) (872) 
Segment gross profit$942  $163  $1,105  
        The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Three Months Ended June 30, 2019
Segment Gross Profit$1,105  
Subscriber acquisition costs(104) 
Sales and marketing (b)
(213) 
Engineering, design and development (b)
(61) 
General and administrative (b)
(105) 
Depreciation and amortization(119) 
Share-based payment expense(57) 
Acquisition and restructuring costs(7) 
Total other (expense) income(100) 
Consolidated income before income taxes$339  
(b)  Share-based payment expense of $10 related to cost of services, $19 related to sales and marketing, $13 related to engineering, design and development and $15 related to general and administrative has been excluded.
For the Six Months Ended June 30, 2020
Sirius XMPandoraTotal
Revenue
Subscriber revenue$2,910  $253  $3,163  
Advertising revenue69  452  521  
Equipment revenue66  —  66  
Other revenue76  —  76  
Total revenue3,121  705  3,826  
Cost of services (c)
(1,186) (509) (1,695) 
Segment gross profit$1,935  $196  $2,131  
The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Six Months Ended June 30, 2020
Segment Gross Profit$2,131  
Subscriber acquisition costs(147) 
Sales and marketing (c)
(409) 
Engineering, design and development (c)
(112) 
General and administrative (c)
(193) 
Depreciation and amortization(256) 
Share-based payment expense(107) 
Acquisition and restructuring costs(24) 
Total other (expense) income(193) 
Consolidated income before income taxes$690  
(c)  Share-based payment expense of $21 related to cost of services, $33 related to sales and marketing, $20 related to engineering, design and development and $33 related to general and administrative has been excluded.

For the Six Months Ended June 30, 2019
Sirius XMPandoraTotal
Revenue
Subscriber revenue$2,772  $223  $2,995  
Advertising revenue98  469  567  
Equipment revenue82  —  82  
Other revenue77  —  77  
Total revenue3,029  692  3,721  
Cost of services (d)
(1,163) (448) (1,611) 
Segment gross profit$1,866  $244  $2,110  
        The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
For the Six Months Ended June 30, 2019
Segment Gross Profit$2,110  
Subscriber acquisition costs(212) 
Sales and marketing (d)
(381) 
Engineering, design and development (d)
(106) 
General and administrative (d)
(224) 
Depreciation and amortization(226) 
Share-based payment expense(106) 
Acquisition and restructuring costs(83) 
Total other (expense) income(190) 
Consolidated income before income taxes$582  
(d)  Share-based payment expense of $19 related to cost of services, $34 related to sales and marketing, $22 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, 2020, 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, 2020 and 2019.