| Information About Â鶹×îгöÆ·'s Operating Segments |
(9)ÌýÌýÌýInformation About Â鶹×îгöÆ·'s Operating Segments
The Company, through its ownership interests in subsidiaries and other companies, is primarily engaged in the media and entertainment industries. The Company identifies its reportable segments as (A)Ìýthose consolidated subsidiaries that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA (as defined below) or total assets and (B)Ìýthose equity method affiliates whose share of earnings represent 10% or more of the Company's annual pre-tax earnings.
Â鶹×îгöƷ’s chief operating decision maker evaluates performance and makes decisions about allocating resources to the Company’s reportable segments based on financial measures such as revenue and Adjusted OIBDA (as defined below). In addition, the Company reviews nonfinancial measures such as subscriber growth, churn and penetration.
For the six months ended June 30, 2024, the Company has identified the following subsidiaries as its reportable segments:
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Sirius XM Holdings is a consolidated subsidiary that operates two complementary audio entertainment businesses, SiriusXM and Pandora and Off-platform. SiriusXM features music, sports, entertainment, comedy, talk, news, traffic and weather channels and other content, as well as podcasts and infotainment services, in the U.S. on a subscription fee basis. SiriusXM’s packages include live, curated and certain exclusive and on demand programming. The SiriusXM service is distributed through its two proprietary satellite radio systems and streamed via applications for mobile devices, home devices and other consumer electronic equipment. SiriusXM also provides connected vehicle services and a suite of in-vehicle data services. Pandora and Off-platform operates a music, comedy and podcast streaming discovery platform.Ìý Pandora is available as an ad-supported radio service, a radio subscription service, called Pandora Plus, and an on-demand subscription service, called Pandora Premium. Pandora also sells advertising on other audio platforms in widely distributed podcasts, which are considered to be off-platform services.
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Formula 1 is a global motorsports business that holds exclusive commercial rights with respect to the World Championship, an annual, approximately nine-month long, motor race-based competition in which teams compete for the Constructors' Championship and drivers compete for the Drivers' Championship. The World Championship takes place on various circuits with a varying number of Events taking place in different countries around the world each season.ÌýFormula 1 is responsible for the commercial exploitation and development of the World Championship as well as various aspects of its management and administration.Ìý
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The Company's reportable segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, differing revenue sources and marketing strategies. The significant accounting policies of the segments are the same as those described in the Company's summary of significant policies in the Company's annual financial statements filed on Form 10-K.
As of December 31, 2023, Live Nation met the Company’s reportable segment threshold for equity method affiliates. Accordingly, the segment presentation for prior periods has been conformed to current period segment presentation. Although the Company owns less than 100% of the outstanding shares of Live Nation, 100% of the Live Nation amounts are included in the tables below and are subsequently eliminated in order to reconcile the account totals to the Company’s consolidated financial statements. As disclosed in note 2, the Company’s investment in Live Nation was reattributed from the Â鶹×îгöÆ· SiriusXM Group to the Â鶹×îгöÆ· Live Group effective August 3, 2023.
Performance Measures
The following table disaggregates revenue by segment and by source:
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Three months ended |
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Six months ended |
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June 30, |
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June 30, |
​ |
​ |
ÌýÌýÌýÌý |
2024 |
ÌýÌýÌýÌý |
2023 |
ÌýÌýÌýÌý |
2024 |
ÌýÌýÌýÌý |
2023 |
Ìý |
|
​ |
​ |
amountsÌýinÌýmillions |
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Â鶹×îгöÆ· SiriusXM Group |
​ |
​ |
​ |
Ìý |
​ |
Ìý |
​ |
Ìý |
​ |
​ |
Sirius XM Holdings: |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
Subscriber |
​ |
$ |
1,658 |
​ |
1,726 |
​ |
3,338 |
Ìý |
3,417 |
​ |
Advertising |
​ |
Ìý |
443 |
​ |
444 |
​ |
845 |
Ìý |
819 |
​ |
Equipment |
​ |
​ |
47 |
​ |
47 |
​ |
97 |
​ |
93 |
​ |
Other |
​ |
​ |
30 |
​ |
33 |
​ |
60 |
​ |
65 |
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Total Â鶹×îгöÆ· SiriusXM Group |
​ |
​ |
2,178 |
​ |
2,250 |
​ |
4,340 |
​ |
4,394 |
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Formula One Group |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
Formula 1: |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
Primary |
​ |
​ |
739 |
​ |
618 |
​ |
1,202 |
​ |
932 |
​ |
Other |
​ |
​ |
132 |
​ |
106 |
​ |
222 |
​ |
173 |
​ |
Corporate and other |
​ |
​ |
141 |
​ |
— |
​ |
185 |
​ |
— |
​ |
Intergroup elimination |
​ |
​ |
(24) |
​ |
— |
​ |
(34) |
​ |
— |
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Total Formula One Group |
​ |
​ |
988 |
​ |
724 |
​ |
1,575 |
​ |
1,105 |
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Braves Group |
​ |
Ìý |
​ |
Ìý |
​ |
Ìý |
​ |
Ìý |
​ |
​ |
Corporate and other: |
​ |
Ìý |
​ |
Ìý |
​ |
Ìý |
​ |
Ìý |
​ |
​ |
Baseball |
​ |
Ìý |
NA |
Ìý |
254 |
Ìý |
NA |
Ìý |
272 |
​ |
Mixed-Use Development |
​ |
Ìý |
NA |
Ìý |
16 |
Ìý |
NA |
Ìý |
29 |
​ |
Total Braves Group |
​ |
​ |
NA |
​ |
270 |
​ |
NA |
​ |
301 |
​ |
Consolidated Â鶹×îгöÆ· |
​ |
$ |
3,166 |
​ |
3,244 |
Ìý |
5,915 |
Ìý |
5,800 |
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Live Nation’s revenue was $6,023 million and $5,631 million during the three months ended June 30, 2024 and 2023, respectively, and $9,823 million and $8,758 million during the six months ended June 30, 2024 and 2023, respectively.
Our subsidiaries’ customers generally pay for services in advance of the performance obligation and therefore these prepayments are recorded as deferred revenue. The deferred revenue is recognized as revenue in our unaudited condensed
consolidated statement of operations as the services are provided. Changes in the contract liability balance for Sirius XM Holdings during the six months ended June 30, 2024 were not materially impacted by other factors. The opening and closing balances for our deferred revenue related to Formula 1 and other subsidiaries for the six months ended June 30, 2024 were approximately $248 million and $712 million, respectively. The primary cause for the increase related to the receipt of cash from our customers in advance of satisfying our performance obligations.
Significant portions of the transaction prices for Formula 1 and other subsidiaries are related to undelivered performance obligations that are under contractual arrangements that extend beyond one year. The Company anticipates recognizing revenue from the delivery of such performance obligations of approximately $1,343 million for the remainder of 2024, $2,525 million in 2025, $2,034 million in 2026, $5,754 million in 2027 through 2031, and $1,868 million thereafter. We have not included any amounts in the undelivered performance obligations amounts for those performance obligations that relate to a contract with an original expected duration of one year or less. Ìý
For segment reporting purposes, the Company defines Adjusted OIBDA as revenue less operating expenses, and selling, general and administrative expenses excluding all stock-based compensation, separately reported litigation settlements and restructuring, acquisition and impairment charges. The Company believes this measure is an important indicator of the operational strength and performance of its businesses, by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock-based compensation, separately reported litigation settlements and restructuring, acquisition and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. The Company generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices.
Adjusted OIBDA is summarized as follows:
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Three months ended |
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Six months ended |
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June 30, |
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June 30, |
​ |
​ |
ÌýÌýÌýÌý |
2024 |
ÌýÌýÌýÌý |
2023 |
ÌýÌýÌýÌý |
2024 |
ÌýÌýÌýÌý |
2023 |
Ìý |
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​ |
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amountsÌýinÌýmillions |
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Â鶹×îгöÆ· SiriusXM Group |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
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Sirius XM Holdings |
​ |
$ |
688 |
Ìý |
702 |
Ìý |
1,323 |
Ìý |
1,327 |
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Live Nation |
​ |
​ |
NA |
​ |
589 |
​ |
NA |
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909 |
​ |
Corporate and other |
​ |
Ìý |
(9) |
Ìý |
(8) |
Ìý |
(19) |
Ìý |
(19) |
​ |
Eliminate equity method affiliate |
​ |
​ |
NA |
​ |
(589) |
​ |
NA |
​ |
(909) |
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Total Â鶹×îгöÆ· SiriusXM Group |
​ |
Ìý |
679 |
Ìý |
694 |
Ìý |
1,304 |
Ìý |
1,308 |
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Formula One Group |
​ |
Ìý |
​ |
​ |
​ |
​ |
​ |
Ìý |
​ |
​ |
Formula 1 |
​ |
Ìý |
160 |
Ìý |
155 |
Ìý |
368 |
Ìý |
272 |
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Corporate and other |
​ |
​ |
5 |
Ìý |
(14) |
​ |
(1) |
​ |
(26) |
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Total Formula One Group |
​ |
​ |
165 |
Ìý |
141 |
​ |
367 |
​ |
246 |
​ |
Â鶹×îгöÆ· Live Group |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
Live Nation |
​ |
​ |
717 |
​ |
NA |
​ |
1,084 |
​ |
NA |
​ |
Corporate and other |
​ |
Ìý |
(1) |
Ìý |
NA |
Ìý |
(2) |
Ìý |
NA |
​ |
Eliminate equity method affiliate |
​ |
​ |
(717) |
​ |
NA |
​ |
(1,084) |
​ |
NA |
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Total Â鶹×îгöÆ· Live Group |
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Ìý |
(1) |
Ìý |
NA |
Ìý |
(2) |
Ìý |
NA |
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Braves Group |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
Corporate and other |
​ |
Ìý |
NA |
Ìý |
42 |
Ìý |
NA |
Ìý |
11 |
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Total Braves Group |
​ |
Ìý |
NA |
Ìý |
42 |
Ìý |
NA |
Ìý |
11 |
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Consolidated Â鶹×îгöÆ· |
​ |
$ |
843 |
Ìý |
877 |
Ìý |
1,669 |
Ìý |
1,565 |
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Other Information
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June 30, 2024 |
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ÌýÌýÌýÌý |
Total |
ÌýÌýÌýÌý |
Investments |
ÌýÌýÌýÌý |
Capital |
Ìý |
​ |
​ |
assets |
​ |
inÌýaffiliates |
​ |
expenditures |
​ |
|
​ |
​ |
amountsÌýinÌýmillions |
​ |
Â鶹×îгöÆ· SiriusXM Group |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
Sirius XM Holdings |
​ |
$ |
30,725 |
Ìý |
1,601 |
Ìý |
347 |
​ |
Corporate and other |
​ |
​ |
96 |
​ |
— |
​ |
— |
​ |
Total Â鶹×îгöÆ· SiriusXM Group |
​ |
​ |
30,821 |
​ |
1,601 |
​ |
347 |
​ |
Formula One Group |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
Formula 1 |
​ |
​ |
9,285 |
​ |
2 |
​ |
38 |
​ |
Corporate and other |
​ |
Ìý |
1,667 |
Ìý |
35 |
Ìý |
2 |
​ |
Intergroup elimination |
​ |
​ |
(142) |
​ |
— |
​ |
— |
​ |
Total Formula One Group |
​ |
​ |
10,810 |
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37 |
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40 |
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Â鶹×îгöÆ· Live Group |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
Live Nation |
​ |
​ |
20,454 |
​ |
548 |
​ |
339 |
​ |
Corporate and other |
​ |
​ |
1,000 |
​ |
345 |
​ |
— |
​ |
Eliminate equity method affiliate |
​ |
​ |
(20,454) |
​ |
(548) |
​ |
(339) |
​ |
Total Â鶹×îгöÆ· Live Group |
​ |
​ |
1,000 |
​ |
345 |
​ |
— |
​ |
Elimination |
​ |
​ |
1 |
​ |
— |
​ |
— |
​ |
Consolidated Â鶹×îгöÆ· |
​ |
$ |
42,632 |
Ìý |
1,983 |
Ìý |
387 |
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The following table provides a reconciliation of Adjusted OIBDA to Operating income (loss) and Earnings (loss) before income taxes:
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Three months ended |
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Six months ended |
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​ |
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June 30, |
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June 30, |
​ |
​ |
ÌýÌýÌýÌý |
2024 |
ÌýÌýÌýÌý |
2023 |
ÌýÌýÌýÌý |
2024 |
ÌýÌýÌýÌý |
2023 |
Ìý |
|
​ |
​ |
amountsÌýinÌýmillions |
​ |
Adjusted OIBDA |
​ |
$ |
843 |
Ìý |
877 |
Ìý |
1,669 |
Ìý |
1,565 |
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Impairment, restructuring and acquisition costs (note 8) |
​ |
​ |
(15) |
​ |
(19) |
​ |
(37) |
​ |
(51) |
​ |
Legal settlements and reserves |
​ |
​ |
— |
​ |
(24) |
​ |
— |
​ |
(24) |
​ |
Stock-based compensation |
​ |
Ìý |
(55) |
Ìý |
(54) |
Ìý |
(116) |
Ìý |
(110) |
​ |
Depreciation and amortization |
​ |
Ìý |
(245) |
Ìý |
(257) |
Ìý |
(486) |
Ìý |
(517) |
​ |
Operating income (loss) |
​ |
​ |
528 |
​ |
523 |
​ |
1,030 |
​ |
863 |
​ |
Interest expense |
​ |
Ìý |
(186) |
Ìý |
(200) |
Ìý |
(377) |
Ìý |
(396) |
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Share of earnings (losses) of affiliates, net |
​ |
Ìý |
84 |
Ìý |
90 |
Ìý |
65 |
Ìý |
80 |
​ |
Realized and unrealized gains (losses) on financial instruments, net |
​ |
Ìý |
169 |
Ìý |
(96) |
Ìý |
166 |
Ìý |
(142) |
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Other, net |
​ |
Ìý |
28 |
Ìý |
50 |
Ìý |
55 |
Ìý |
64 |
​ |
Earnings (loss) before income taxes |
​ |
$ |
623 |
Ìý |
367 |
Ìý |
939 |
Ìý |
469 |
​ |
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