| Information About Â鶹app's Operating Segments |
(18)ÌýÌýInformation About Â鶹app’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. The segment presentation for prior periods has been conformed to the current period segment presentation, as discussed below.
The Company evaluates performance and makes decisions about allocating resources to its operating 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 and penetration.
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 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 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.
The Company has identified the following subsidiaries as its reportable segments:
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â— |
Sirius XM Holdings is a consolidated subsidiary that operates two complementary audio entertainment businesses, Sirius XM and Pandora. Sirius XM features music, sports, entertainment, comedy, talk, news, traffic and weather channels as well as infotainment services, in the United States on a subscription fee basis through its two proprietary satellite radio systems and through the internet via applications for mobile devices, home devices and other consumer electronic equipment. Sirius XM also provides connected vehicle services and a suite of in-vehicle data services. The Pandora business 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. Sirius XM Holdings acquired Pandora on February 1, 2019, at which time it began consolidating the results of the Pandora business.
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â— |
FormulaÌý1 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
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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. FormulaÌý1 is responsible for the commercial exploitation and development of the World Championship. The Company acquired a controlling interest in FormulaÌý1 on JanuaryÌý23, 2017, at which time it began consolidating the results of the FormulaÌý1 business. |
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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, distribution channels and marketing strategies. The accounting policies of the segments that are also consolidated subsidiaries are the same as those described in the Company’s summary of significant policies.
Performance Measures
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​ |
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YearsÌýendedÌýDecemberÌý31, |
Ìý |
​ |
​ |
2019 |
​ |
2018 |
​ |
2017 |
Ìý |
​ |
ÌýÌýÌýÌý |
​ |
​ |
ÌýÌýÌýÌý |
Adjusted |
ÌýÌýÌýÌý |
​ |
ÌýÌýÌýÌý |
Adjusted |
ÌýÌýÌýÌý |
​ |
ÌýÌýÌýÌý |
Adjusted |
Ìý |
​ |
​ |
Revenue |
​ |
OIBDA |
​ |
Revenue |
​ |
OIBDA |
​ |
Revenue |
​ |
OIBDA |
Ìý |
​ |
​ |
amountsÌýinÌýmillions |
Ìý |
Â鶹app SiriusXM Group |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
Sirius XM Holdings |
​ |
$ |
7,794 |
Ìý |
2,453 |
Ìý |
5,771 |
Ìý |
2,233 |
Ìý |
5,425 |
Ìý |
2,109 |
​ |
Corporate and other |
​ |
​ |
— |
​ |
(17) |
​ |
— |
​ |
(16) |
​ |
— |
​ |
(15) |
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Total Â鶹app SiriusXM Group |
​ |
​ |
7,794 |
​ |
2,436 |
​ |
5,771 |
​ |
2,217 |
​ |
5,425 |
​ |
2,094 |
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Braves Group |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
Corporate and other |
​ |
Ìý |
476 |
Ìý |
49 |
Ìý |
442 |
Ìý |
88 |
Ìý |
386 |
Ìý |
2 |
​ |
Total Braves Group |
​ |
​ |
476 |
​ |
49 |
​ |
442 |
​ |
88 |
​ |
386 |
​ |
2 |
​ |
Formula One Group |
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​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
Formula 1 |
​ |
​ |
2,022 |
​ |
482 |
​ |
1,827 |
​ |
400 |
​ |
1,783 |
​ |
438 |
​ |
Corporate and other |
​ |
​ |
— |
​ |
(36) |
​ |
— |
​ |
(25) |
​ |
— |
​ |
(41) |
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Total Formula One Group |
​ |
​ |
2,022 |
​ |
446 |
​ |
1,827 |
​ |
375 |
​ |
1,783 |
​ |
397 |
​ |
Total |
​ |
$ |
10,292 |
Ìý |
2,931 |
Ìý |
8,040 |
Ìý |
2,680 |
Ìý |
7,594 |
Ìý |
2,493 |
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Other Information
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​ |
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DecemberÌý31,Ìý2019 |
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DecemberÌý31,Ìý2018 |
Ìý |
​ |
ÌýÌýÌýÌý |
Total |
ÌýÌýÌýÌý |
Investments |
ÌýÌýÌýÌý |
Capital |
ÌýÌýÌýÌý |
Total |
ÌýÌýÌýÌý |
Investments |
ÌýÌýÌýÌý |
Capital |
Ìý |
​ |
​ |
assets |
​ |
inÌýaffiliates |
​ |
expenditures |
​ |
assets |
​ |
inÌýaffiliates |
​ |
expenditures |
Ìý |
​ |
​ |
amountsÌýinÌýmillions |
Ìý |
Â鶹app SiriusXM Group |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
Sirius XM Holdings |
​ |
$ |
30,868 |
Ìý |
644 |
Ìý |
363 |
Ìý |
27,812 |
Ìý |
629 |
Ìý |
356 |
​ |
Corporate and other |
​ |
​ |
553 |
​ |
— |
​ |
— |
​ |
480 |
​ |
— |
​ |
— |
​ |
Total Â鶹app SiriusXM Group |
​ |
​ |
31,421 |
​ |
644 |
​ |
363 |
​ |
28,292 |
​ |
629 |
​ |
356 |
​ |
Braves Group |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
Corporate and other |
​ |
​ |
1,593 |
​ |
99 |
​ |
103 |
​ |
1,805 |
​ |
92 |
​ |
33 |
​ |
Total Braves Group |
​ |
​ |
1,593 |
​ |
99 |
​ |
103 |
​ |
1,805 |
​ |
92 |
​ |
33 |
​ |
Formula One Group |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
Formula 1 |
​ |
​ |
9,031 |
Ìý |
— |
Ìý |
16 |
​ |
8,958 |
​ |
— |
​ |
12 |
​ |
Corporate and other |
​ |
Ìý |
2,474 |
Ìý |
882 |
Ìý |
28 |
Ìý |
1,999 |
Ìý |
920 |
Ìý |
2 |
​ |
Total Formula One Group |
​ |
​ |
11,505 |
​ |
882 |
​ |
44 |
​ |
10,957 |
​ |
920 |
​ |
14 |
​ |
Elimination (1) |
​ |
​ |
(330) |
​ |
— |
​ |
— |
​ |
(226) |
​ |
— |
​ |
— |
​ |
Consolidated Â鶹app |
​ |
$ |
44,189 |
Ìý |
1,625 |
Ìý |
510 |
Ìý |
40,828 |
Ìý |
1,641 |
Ìý |
403 |
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| (1) |
This is primarily the intergroup interests in the Â鶹app SiriusXM Group and the Braves Group held by the Formula One Group, as discussed in noteÌý2. The intergroup interests attributable to the Formula One Group are presented as an asset and the intergroup interests attributable to the Â鶹app SiriusXM Group and the Braves Group are presented as liabilities in the attributed financial statements and the offsetting amounts between tracking stock groups are eliminated in consolidation. |
The following table provides a reconciliation of Adjusted OIBDA to Operating income (loss) and Earnings (loss) from continuing operations before income taxes:
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​ |
​ |
YearsÌýendedÌýDecemberÌý31, |
Ìý |
​ |
ÌýÌýÌýÌý |
2019 |
ÌýÌýÌýÌý |
2018 |
ÌýÌýÌýÌý |
2017 |
Ìý |
​ |
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amounts in millions |
Ìý |
Adjusted OIBDA |
​ |
$ |
2,931 |
Ìý |
2,680 |
Ìý |
2,493 |
​ |
Litigation settlement (note 17) |
​ |
​ |
(25) |
​ |
(69) |
​ |
(45) |
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Stock-based compensation |
​ |
Ìý |
(291) |
Ìý |
(192) |
Ìý |
(230) |
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Acquisition and other related costs (note 5) |
​ |
​ |
(84) |
​ |
(3) |
​ |
— |
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Depreciation and amortization |
​ |
Ìý |
(1,061) |
Ìý |
(905) |
Ìý |
(824) |
​ |
Operating income (loss) |
​ |
​ |
1,470 |
​ |
1,511 |
​ |
1,394 |
​ |
Interest expense |
​ |
Ìý |
(657) |
Ìý |
(606) |
Ìý |
(591) |
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Share of earnings (losses) of affiliates, net |
​ |
Ìý |
6 |
Ìý |
18 |
Ìý |
104 |
​ |
Realized and unrealized gains (losses) on financial instruments, net |
​ |
Ìý |
(315) |
Ìý |
40 |
Ìý |
(88) |
​ |
Other, net |
​ |
Ìý |
9 |
Ìý |
78 |
Ìý |
8 |
​ |
Earnings (loss) from continuing operations before income taxes |
​ |
$ |
513 |
Ìý |
1,041 |
Ìý |
827 |
​ |
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Revenue by Geographic Area
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Revenue by geographic area based on the country of domicile is as follows:
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​ |
YearsÌýendedÌýDecemberÌý31, |
Ìý |
​ |
ÌýÌýÌýÌý |
2019 |
ÌýÌýÌýÌý |
2018 |
ÌýÌýÌýÌý |
2017 |
Ìý |
​ |
​ |
amountsÌýinÌýmillions |
Ìý |
United States |
​ |
$ |
8,172 |
Ìý |
6,112 |
Ìý |
5,724 |
​ |
United Kingdom |
​ |
Ìý |
2,022 |
Ìý |
1,831 |
Ìý |
1,783 |
​ |
Other |
​ |
​ |
98 |
​ |
97 |
​ |
87 |
​ |
​ |
​ |
$ |
10,292 |
Ìý |
8,040 |
Ìý |
7,594 |
​ |
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Long-lived Assets by Geographic Area
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​ |
​ |
DecemberÌý31, |
Ìý |
​ |
ÌýÌýÌýÌý |
2019 |
ÌýÌýÌýÌý |
2018 |
Ìý |
​ |
​ |
amountsÌýinÌýmillions |
Ìý |
United States |
​ |
$ |
2,246 |
Ìý |
2,457 |
​ |
United Kingdom |
​ |
Ìý |
16 |
Ìý |
12 |
​ |
​ |
​ |
$ |
2,262 |
Ìý |
2,469 |
​ |
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