QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||||||||||||
☑ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | |||||||||||||||||||
Smaller reporting company | Emerging growth company |
(Class) | (Outstanding as of April 26, 2022) | ||||||||||
Common stock, $0.001 par value | shares |
Item No. | Description | ||||||||||
For the Three Months Ended March 31, | |||||||||||
(in millions, except per share data) | 2022 | 2021 | |||||||||
Revenue: | |||||||||||
Subscriber revenue | $ | $ | |||||||||
Advertising revenue | |||||||||||
Equipment revenue | |||||||||||
Other revenue | |||||||||||
Total revenue | |||||||||||
Operating expenses: | |||||||||||
Cost of services: | |||||||||||
Revenue share and royalties | |||||||||||
Programming and content | |||||||||||
Customer service and billing | |||||||||||
Transmission | |||||||||||
Cost of equipment | |||||||||||
Subscriber acquisition costs | |||||||||||
Sales and marketing | |||||||||||
Engineering, design and development | |||||||||||
General and administrative | |||||||||||
Depreciation and amortization | |||||||||||
Impairment, restructuring and acquisition costs | |||||||||||
Total operating expenses | |||||||||||
Income from operations | |||||||||||
Other (expense) income: | |||||||||||
Interest expense | ( | ( | |||||||||
Other income | |||||||||||
Total other (expense) income | ( | ( | |||||||||
Income before income taxes | |||||||||||
Income tax (expense) benefit | ( | ||||||||||
Net income | $ | $ | |||||||||
Foreign currency translation adjustment, net of tax | |||||||||||
Total comprehensive income | $ | $ | |||||||||
Net income per common share: | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ | |||||||||
Weighted average common shares outstanding: | |||||||||||
Basic | |||||||||||
Diluted |
(in millions, except per share data) | March 31, 2022 | December 31, 2021 | |||||||||
ASSETS | (unaudited) | ||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Receivables, net | |||||||||||
Related party current assets | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Intangible assets, net | |||||||||||
Goodwill | |||||||||||
Related party long-term assets | |||||||||||
Deferred tax assets | |||||||||||
Operating lease right-of-use assets | |||||||||||
Other long-term assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued expenses | $ | $ | |||||||||
Accrued interest | |||||||||||
Current portion of deferred revenue | |||||||||||
Operating lease current liabilities | |||||||||||
Related party current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term deferred revenue | |||||||||||
Long-term debt | |||||||||||
Deferred tax liabilities | |||||||||||
Operating lease liabilities | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 15) | |||||||||||
Stockholders’ equity (deficit): | |||||||||||
Common stock, par value $ | |||||||||||
Accumulated other comprehensive income, net of tax | |||||||||||
Additional paid-in capital | |||||||||||
Treasury stock, at cost; | ( | ( | |||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders’ equity (deficit) | ( | ( | |||||||||
Total liabilities and stockholders’ equity (deficit) | $ | $ |
For the Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Accumulated Other Comprehensive Income | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Total Stockholders’ Equity (Deficit) | |||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Comprehensive income, net of tax | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Share-based payment expense | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options and vesting of restricted stock units | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Withholding taxes on net share settlement of stock-based compensation | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Tax Sharing Agreement with Liberty Media | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid on common stock, $ | — | — | — | ( | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Common stock repurchased | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||
Common stock retired | ( | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | ( |
For the Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Accumulated Other Comprehensive Income | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Total Stockholders’ Equity (Deficit) | |||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||||||||||||||||
Comprehensive income, net of tax | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Share-based payment expense | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options and vesting of restricted stock units | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Withholding taxes on net share settlement of stock-based compensation | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||
Cash dividends paid on common stock, $ | — | — | — | ( | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Common stock repurchased | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||
Common stock retired | ( | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | ( |
For the Three Months Ended March 31, | |||||||||||
(in millions) | 2022 | 2021 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Non cash impairment and restructuring costs | |||||||||||
Non-cash interest expense, net of amortization of premium | |||||||||||
Provision for doubtful accounts | |||||||||||
(Gain) loss on unconsolidated entity investments, net | ( | ||||||||||
Loss (gain) on other investments | ( | ||||||||||
Share-based payment expense | |||||||||||
Deferred income tax expense (benefit) | ( | ||||||||||
Amortization of right-of-use assets | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables | |||||||||||
Related party, net | |||||||||||
Prepaid expenses and other current assets | ( | ( | |||||||||
Other long-term assets | ( | ||||||||||
Accounts payable and accrued expenses | ( | ( | |||||||||
Accrued interest | ( | ( | |||||||||
Deferred revenue | ( | ( | |||||||||
Operating lease liabilities | ( | ( | |||||||||
Other long-term liabilities | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Additions to property and equipment | ( | ( | |||||||||
Purchases of other investments | ( | ||||||||||
Acquisition of business, net of cash acquired | ( | ||||||||||
Investments in related parties and other equity investees | ( | ( | |||||||||
Repayment from related party | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Taxes paid from net share settlements for stock-based compensation | ( | ( | |||||||||
Revolving credit facility, net | |||||||||||
Principal payments of long-term borrowings | ( | ( | |||||||||
Common stock repurchased and retired | ( | ( | |||||||||
Dividends paid | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Net decrease in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Cash, cash equivalents and restricted cash at beginning of period (1) | |||||||||||
Cash, cash equivalents and restricted cash at end of period (1) | $ | $ |
For the Three Months Ended March 31, | |||||||||||
(in millions) | 2022 | 2021 | |||||||||
Supplemental Disclosure of Cash and Non-Cash Flow Information | |||||||||||
Cash paid during the period for: | |||||||||||
Interest, net of amounts capitalized | $ | $ | |||||||||
Income taxes paid | $ | $ | |||||||||
Non-cash investing and financing activities: | |||||||||||
Treasury stock not yet settled | $ | $ | |||||||||
Accumulated other comprehensive income, net of tax | $ | $ | |||||||||
Capital contribution pursuant to Tax Sharing Agreement | $ | $ |
(in millions) | March 31, 2022 | December 31, 2021 | March 31, 2021 | December 31, 2020 | |||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Restricted cash included in Other long-term assets | |||||||||||||||||||||||
Total cash, cash equivalents and restricted cash at end of period | $ | $ | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||
Debt (a) | $ | $ | $ | $ |
For The Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Numerator: | |||||||||||
Net Income available to common stockholders for basic net income per common share | $ | $ | |||||||||
Effect of interest on assumed conversions of convertible notes, net of tax | |||||||||||
Net Income available to common stockholders for dilutive net income per common share | $ | $ | |||||||||
Denominator: | |||||||||||
Weighted average common shares outstanding for basic net income per common share | |||||||||||
Weighted average impact of assumed convertible notes | |||||||||||
Weighted average impact of dilutive equity instruments | |||||||||||
Weighted average shares for diluted net income per common share | |||||||||||
Net income per common share: | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
Gross customer accounts receivable | $ | $ | |||||||||
Allowance for doubtful accounts | ( | ( | |||||||||
Customer accounts receivable, net | $ | $ | |||||||||
Receivables from distributors | |||||||||||
Other receivables | |||||||||||
Total receivables, net | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
Weighted Average Useful Lives | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | |||||||||||||||||||||||||||||||||||
Indefinite life intangible assets: | |||||||||||||||||||||||||||||||||||||||||
FCC licenses | Indefinite | $ | $ | — | $ | $ | $ | — | $ | ||||||||||||||||||||||||||||||||
Trademarks | Indefinite | — | — | ||||||||||||||||||||||||||||||||||||||
Definite life intangible assets: | |||||||||||||||||||||||||||||||||||||||||
OEM relationships | ( | ( | |||||||||||||||||||||||||||||||||||||||
Licensing agreements | ( | ( | |||||||||||||||||||||||||||||||||||||||
Software and technology | ( | ( | |||||||||||||||||||||||||||||||||||||||
Due to Acquisitions recorded to Pandora and Off-platform Reporting Unit: | |||||||||||||||||||||||||||||||||||||||||
Indefinite life intangible assets: | |||||||||||||||||||||||||||||||||||||||||
Trademarks | Indefinite | — | — | ||||||||||||||||||||||||||||||||||||||
Definite life intangible assets: | |||||||||||||||||||||||||||||||||||||||||
Customer relationships | ( | ( | |||||||||||||||||||||||||||||||||||||||
Software and technology | ( | ( | |||||||||||||||||||||||||||||||||||||||
Total intangible assets | $ | $ | ( | $ | $ | $ | ( | $ |
Years ending December 31, | Amount | |||||||
2022 (remaining) | $ | |||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
Thereafter | ||||||||
Total definite life intangible assets, net | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
Satellite system | $ | $ | |||||||||
Terrestrial repeater network | |||||||||||
Leasehold improvements | |||||||||||
Broadcast studio equipment | |||||||||||
Capitalized software and hardware | |||||||||||
Satellite telemetry, tracking and control facilities | |||||||||||
Furniture, fixtures, equipment and other | |||||||||||
Land | |||||||||||
Building | |||||||||||
Construction in progress | |||||||||||
Total property and equipment | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Property and equipment, net | $ | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
Satellite system | $ | $ | |||||||||
Terrestrial repeater network | |||||||||||
Capitalized software and hardware | |||||||||||
Other | |||||||||||
Construction in progress | $ | $ |
Satellite Description | Year Delivered | Estimated End of Depreciable Life | FCC License Expiration Year | |||||||||||||||||
SIRIUS FM-5 | 2009 | 2024 | 2025 | |||||||||||||||||
SIRIUS FM-6 | 2013 | 2028 | 2022 | |||||||||||||||||
XM-3 | 2005 | 2020 | 2026 | |||||||||||||||||
XM-4 | 2006 | 2021 | 2022 | |||||||||||||||||
XM-5 | 2010 | 2025 | 2026 | |||||||||||||||||
SXM-8 | 2021 | 2036 | 2029 |
For the Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Operating lease cost | $ | $ | |||||||||
Sublease income | ( | ( | |||||||||
Total lease cost | $ | $ |
Principal Amount at | Carrying value(a) at | |||||||||||||||||||||||||||||||||||||||||||
Issuer / Borrower | Issued | Debt | Maturity Date | Interest Payable | March 31, 2022 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||
Pandora (c) (d) | June 2018 | December 1, 2023 | semi-annually on June 1 and December 1 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Sirius XM (b) | August 2021 | September 1, 2026 | semi-annually on March 1 and September 1 | |||||||||||||||||||||||||||||||||||||||||
Sirius XM (b) | July 2017 | August 1, 2027 | semi-annually on February 1 and August 1 | |||||||||||||||||||||||||||||||||||||||||
Sirius XM (b) | June 2021 | July 15, 2028 | semi-annually on January 15 and July 15 | |||||||||||||||||||||||||||||||||||||||||
Sirius XM (b) | June 2019 | July 1, 2029 | semi-annually on January 1 and July 1 | |||||||||||||||||||||||||||||||||||||||||
Sirius XM (b) | June 2020 | July 1, 2030 | semi-annually on January 1 and July 1 | |||||||||||||||||||||||||||||||||||||||||
Sirius XM (b) | August 2021 | September 1, 2031 | semi-annually on March 1 and September 1 | |||||||||||||||||||||||||||||||||||||||||
Sirius XM (e) | December 2012 | Senior Secured Revolving Credit Facility (the "Credit Facility") | August 31, 2026 | variable fee paid quarterly | ||||||||||||||||||||||||||||||||||||||||
Total Debt | ||||||||||||||||||||||||||||||||||||||||||||
Less: total current maturities | ||||||||||||||||||||||||||||||||||||||||||||
Less: total deferred financing costs | ||||||||||||||||||||||||||||||||||||||||||||
Total long-term debt | $ | $ |
Declaration Date | Dividend Per Share | Record Date | Total Amount | Payment Date | ||||||||||||||||||||||
January 31, 2022 | $ | February 11, 2022 | $ | February 25, 2022 |
Declaration Date | Dividend Per Share | Record Date | Total Amount | Payment Date | ||||||||||||||||||||||
January 26, 2022 | $ | February 11, 2022 | $ | February 25, 2022 | ||||||||||||||||||||||
March 31, 2022 | March 31, 2021 | |||||||||||||||||||||||||
Share Repurchase Type | Shares | Amount | Shares | Amount | ||||||||||||||||||||||
Open Market Repurchases (a) | $ | $ |
For the Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Risk-free interest rate | |||||||||||
Expected life of options — years | |||||||||||
Expected stock price volatility | |||||||||||
Expected dividend yield |
Options | Weighted-Average Exercise Price Per Share (1) | Weighted-Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | ||||||||||||||||||||
Outstanding as of December 31, 2021 | $ | ||||||||||||||||||||||
Granted | $ | ||||||||||||||||||||||
Exercised | ( | $ | |||||||||||||||||||||
Forfeited, cancelled or expired | ( | $ | |||||||||||||||||||||
Outstanding as of March 31, 2022 | $ | $ | |||||||||||||||||||||
Exercisable as of March 31, 2022 | $ | $ |
Shares | Grant Date Fair Value Per Share | ||||||||||
Nonvested as of December 31, 2021 | $ | ||||||||||
Granted | $ | ||||||||||
Vested | ( | $ | |||||||||
Forfeited | ( | $ | |||||||||
Nonvested as of March 31, 2022 | $ |
2022 | 2023 | 2024 | 2025 | 2026 | Thereafter | Total | |||||||||||||||||||||||||||||||||||
Debt obligations | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Cash interest payments | |||||||||||||||||||||||||||||||||||||||||
Satellite and transmission | |||||||||||||||||||||||||||||||||||||||||
Programming and content | |||||||||||||||||||||||||||||||||||||||||
Sales and marketing | |||||||||||||||||||||||||||||||||||||||||
Satellite incentive payments | |||||||||||||||||||||||||||||||||||||||||
Operating lease obligations | |||||||||||||||||||||||||||||||||||||||||
Royalties, minimum guarantees and other | |||||||||||||||||||||||||||||||||||||||||
Total (1) | $ | $ | $ | $ | $ | $ | $ |
For the Three Months Ended March 31, 2022 | |||||||||||||||||
Sirius XM | Pandora and Off-platform | Total | |||||||||||||||
Revenue | |||||||||||||||||
Subscriber revenue | $ | $ | $ | ||||||||||||||
Advertising revenue | |||||||||||||||||
Equipment revenue | |||||||||||||||||
Other revenue | |||||||||||||||||
Total revenue | |||||||||||||||||
Cost of services (a) | ( | ( | ( | ||||||||||||||
Segment gross profit | $ | $ | $ |
For the Three Months Ended March 31, 2022 | |||||
Segment Gross Profit | $ | ||||
Subscriber acquisition costs | ( | ||||
Sales and marketing (a) | ( | ||||
Engineering, design and development (a) | ( | ||||
General and administrative (a) | ( | ||||
Depreciation and amortization | ( | ||||
Share-based payment expense | ( | ||||
Total other (expense) income | ( | ||||
Consolidated income before income taxes | $ |
For the Three Months Ended March 31, 2021 | |||||||||||||||||
Sirius XM | Pandora and Off-platform | Total | |||||||||||||||
Revenue | |||||||||||||||||
Subscriber revenue | $ | $ | $ | ||||||||||||||
Advertising revenue | |||||||||||||||||
Equipment revenue | |||||||||||||||||
Other revenue | |||||||||||||||||
Total revenue | |||||||||||||||||
Cost of services (b) | ( | ( | ( | ||||||||||||||
Segment gross profit | $ | $ | $ |
For the Three Months Ended March 31, 2021 | |||||
Segment Gross Profit | $ | ||||
Subscriber acquisition costs | ( | ||||
Sales and marketing (b) | ( | ||||
Engineering, design and development (b) | ( | ||||
General and administrative (b) | ( | ||||
Depreciation and amortization | ( | ||||
Share-based payment expense | ( | ||||
Impairment, restructuring and acquisition costs | ( | ||||
Total other (expense) income | ( | ||||
Consolidated income before income taxes | $ |
For the Three Months Ended March 31, | 2022 vs 2021 Change | ||||||||||||||||||||||
2022 | 2021 | Amount | % | ||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Sirius XM: | |||||||||||||||||||||||
Subscriber revenue | $ | 1,582 | $ | 1,481 | $ | 101 | 7 | % | |||||||||||||||
Advertising revenue | 47 | 42 | 5 | 12 | % | ||||||||||||||||||
Equipment revenue | 53 | 57 | (4) | (7) | % | ||||||||||||||||||
Other revenue | 37 | 36 | 1 | 3 | % | ||||||||||||||||||
Total Sirius XM revenue | 1,719 | 1,616 | 103 | 6 | % | ||||||||||||||||||
Pandora and Off-platform: | |||||||||||||||||||||||
Subscriber revenue | 131 | 130 | 1 | 1 | % | ||||||||||||||||||
Advertising revenue | 336 | 312 | 24 | 8 | % | ||||||||||||||||||
Total Pandora and Off-platform revenue | 467 | 442 | 25 | 6 | % | ||||||||||||||||||
Total consolidated revenue | 2,186 | 2,058 | 128 | 6 | % | ||||||||||||||||||
Cost of services | |||||||||||||||||||||||
Sirius XM: | |||||||||||||||||||||||
Revenue share and royalties | 382 | 378 | 4 | 1 | % | ||||||||||||||||||
Programming and content | 129 | 120 | 9 | 8 | % | ||||||||||||||||||
Customer service and billing | 103 | 98 | 5 | 5 | % | ||||||||||||||||||
Transmission | 41 | 33 | 8 | 24 | % | ||||||||||||||||||
Cost of equipment | 3 | 4 | (1) | (25) | % | ||||||||||||||||||
Total Sirius XM cost of services | 658 | 633 | 25 | 4 | % | ||||||||||||||||||
Pandora and Off-platform: | |||||||||||||||||||||||
Revenue share and royalties | 288 | 262 | 26 | 10 | % | ||||||||||||||||||
Programming and content | 11 | 10 | 1 | 10 | % | ||||||||||||||||||
Customer service and billing | 22 | 19 | 3 | 16 | % | ||||||||||||||||||
Transmission | 10 | 15 | (5) | (33) | % | ||||||||||||||||||
Total Pandora and Off-platform cost of services | 331 | 306 | 25 | 8 | % | ||||||||||||||||||
Total consolidated cost of services | 989 | 939 | 50 | 5 | % | ||||||||||||||||||
Subscriber acquisition costs | 90 | 86 | 4 | 5 | % | ||||||||||||||||||
Sales and marketing | 272 | 217 | 55 | 25 | % | ||||||||||||||||||
Engineering, design and development | 67 | 64 | 3 | 5 | % | ||||||||||||||||||
General and administrative | 123 | 121 | 2 | 2 | % | ||||||||||||||||||
Depreciation and amortization | 135 | 132 | 3 | 2 | % | ||||||||||||||||||
Impairment, restructuring and acquisition costs | — | 245 | (245) | (100) | % | ||||||||||||||||||
Total operating expenses | 1,676 | 1,804 | (128) | (7) | % | ||||||||||||||||||
Income from operations | 510 | 254 | 256 | 101 | % | ||||||||||||||||||
Other (expense) income: | |||||||||||||||||||||||
Interest expense | (103) | (100) | (3) | (3) | % | ||||||||||||||||||
Other income | 2 | 3 | (1) | (33) | % | ||||||||||||||||||
Total other (expense) income | (101) | (97) | (4) | (4) | % | ||||||||||||||||||
Income before income taxes | 409 | 157 | 252 | 161 | % | ||||||||||||||||||
Income tax (expense) benefit | (100) | 62 | (162) | (261) | % | ||||||||||||||||||
Net income | $ | 309 | $ | 219 | $ | 90 | 41 | % |
As of March 31, | 2022 vs 2021 Change | ||||||||||||||||||||||
(subscribers in thousands) | 2022 | 2021 | Amount | % | |||||||||||||||||||
Sirius XM | |||||||||||||||||||||||
Self-pay subscribers | 32,014 | 31,013 | 1,001 | 3 | % | ||||||||||||||||||
Paid promotional subscribers | 1,940 | 3,486 | (1,546) | (44) | % | ||||||||||||||||||
Ending subscribers | 33,954 | 34,499 | (545) | (2) | % | ||||||||||||||||||
Sirius XM Canada subscribers | 2,523 | 2,600 | (77) | (3) | % | ||||||||||||||||||
Pandora and Off-platform | |||||||||||||||||||||||
Monthly active users - all services | 50,554 | 55,870 | (5,316) | (10) | % | ||||||||||||||||||
Self-pay subscribers | 6,328 | 6,392 | (64) | (1) | % | ||||||||||||||||||
Paid promotional subscribers | — | 64 | (64) | (100) | % | ||||||||||||||||||
Ending subscribers | 6,328 | 6,456 | (128) | (2) | % |
For the Three Months Ended March 31, | 2022 vs 2021 Change | ||||||||||||||||||||||
(subscribers in thousands) | 2022 | 2021 | Amount | % | |||||||||||||||||||
Sirius XM | |||||||||||||||||||||||
Self-pay subscribers | (25) | 126 | (151) | (120) | % | ||||||||||||||||||
Paid promotional subscribers | (54) | (341) | 287 | 84 | % | ||||||||||||||||||
Net additions | (79) | (215) | 136 | 63 | % | ||||||||||||||||||
Weighted average number of subscribers | 33,890 | 34,462 | (572) | (2) | % | ||||||||||||||||||
Average self-pay monthly churn | 1.6 | % | 1.6 | % | — | % | — | % | |||||||||||||||
ARPU (1) | $ | 15.53 | $ | 14.30 | $ | 1.23 | 9 | % | |||||||||||||||
SAC, per installation | $ | 12.73 | $ | 10.90 | $ | 1.83 | 17 | % | |||||||||||||||
Pandora and Off-platform | |||||||||||||||||||||||
Self-pay subscribers | 4 | 113 | (109) | (96) | % | ||||||||||||||||||
Paid promotional subscribers | (69) | 2 | (71) | (3,550) | % | ||||||||||||||||||
Net additions | (65) | 115 | (180) | (157) | % | ||||||||||||||||||
Weighted average number of subscribers | 6,356 | 6,385 | (29) | — | % | ||||||||||||||||||
Ad supported listener hours (in billions) | 2.68 | 2.87 | (0.19) | (7) | % | ||||||||||||||||||
Advertising revenue per thousand listener hours (RPM) | $ | 89.77 | $ | 85.69 | $ | 4.08 | 5 | % | |||||||||||||||
Total Company | |||||||||||||||||||||||
Adjusted EBITDA | $ | 690 | $ | 682 | $ | 8 | 1 | % | |||||||||||||||
Free cash flow | $ | 258 | $ | 211 | $ | 47 | 22 | % |
For the Three Months Ended March 31, | |||||||||||||||||
2022 | 2021 | 2022 vs 2021 | |||||||||||||||
Net cash provided by operating activities | $ | 355 | $ | 292 | $ | 63 | |||||||||||
Net cash used in investing activities | (142) | (78) | (64) | ||||||||||||||
Net cash used in financing activities | (328) | (230) | (98) | ||||||||||||||
Net decrease in cash, cash equivalents and restricted cash | (115) | (16) | (99) | ||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 199 | 83 | 116 | ||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 84 | $ | 67 | $ | 17 |
For the Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net income: | $ | 309 | $ | 219 | |||||||
Add back items excluded from Adjusted EBITDA: | |||||||||||
Impairment, restructuring and acquisition costs | — | 245 | |||||||||
Share-based payment expense (1) | 45 | 51 | |||||||||
Depreciation and amortization | 135 | 132 | |||||||||
Interest expense | 103 | 100 | |||||||||
Other income | (2) | (3) | |||||||||
Income tax expense (benefit) | 100 | (62) | |||||||||
Adjusted EBITDA | $ | 690 | $ | 682 |
For the Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Programming and content | $ | 8 | $ | 8 | |||||||
Customer service and billing | 1 | 2 | |||||||||
Transmission | 1 | 1 | |||||||||
Sales and marketing | 13 | 15 | |||||||||
Engineering, design and development | 8 | 10 | |||||||||
General and administrative | 14 | 15 | |||||||||
Total share-based payment expense | $ | 45 | $ | 51 |
For the Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Cash Flow information | |||||||||||
Net cash provided by operating activities | $ | 355 | $ | 292 | |||||||
Net cash used in investing activities | (142) | (78) | |||||||||
Net cash used in financing activities | (328) | (230) | |||||||||
Free Cash Flow | |||||||||||
Net cash provided by operating activities | 355 | 292 | |||||||||
Additions to property and equipment | (97) | (78) | |||||||||
Purchases of other investments | — | (3) | |||||||||
Free cash flow | $ | 258 | $ | 211 |
For the Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Subscriber acquisition costs, excluding connected vehicle services | $ | 90 | $ | 86 | |||||||
Less: margin from sales of radios and accessories, excluding connected vehicle services | (50) | (53) | |||||||||
$ | 40 | $ | 33 | ||||||||
Installations | 3,125 | 3,068 | |||||||||
SAC, per installation (a) | $ | 12.73 | $ | 10.90 |
Period | Total Number of Shares Purchased | Average Price Paid Per Share (a) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (a) | ||||||||||||||||||||||
January 1, 2022 - January 31, 2022 | 19,562,909 | $ | 6.17 | 19,562,909 | $ | 1,959,608,778 | ||||||||||||||||||||
February 1, 2022 - February 28, 2022 | 7,139,694 | $ | 6.42 | 7,139,694 | $ | 1,913,745,184 | ||||||||||||||||||||
March 1, 2022 - March 31, 2022 | 5,269,594 | $ | 6.31 | 5,269,594 | $ | 1,880,515,561 | ||||||||||||||||||||
Total | 31,972,197 | $ | 6.25 | 31,972,197 |
Exhibit | Description | |||||||||||||
31.1 | ||||||||||||||
31.2 | ||||||||||||||
32.1 | ||||||||||||||
32.2 | ||||||||||||||
101.1 | The following financial information from our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 formatted in Inline eXtensible Business Reporting Language (Inline XBRL): (i) Consolidated Statements of Comprehensive Income (Unaudited) for the three months ended March 31, 2022 and 2021; (ii) Consolidated Balance Sheets as of March 31, 2022 (Unaudited) and December 31, 2021; (iii) Consolidated Statements of Stockholders’ Equity (Deficit) for the three months ended March 31, 2022 and 2021 (Unaudited); (iv) Consolidated Statements of Cash Flows (Unaudited) for the three months ended March 31, 2022 and 2021; and (v) Notes to Consolidated Financial Statements (Unaudited). | |||||||||||||
104 | The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, formatted in Inline XBRL. |
SIRIUS XM HOLDINGS INC. | ||||||||
By: | /s/ Sean S. Sullivan | |||||||
Sean S. Sullivan | ||||||||
Executive Vice President and Chief Financial Officer | ||||||||
(Principal Financial Officer and Authorized Officer) |
By: | /s/ JENNIFER C. WITZ | |||||||
Jennifer C. Witz Chief Executive Officer and Director (Principal Executive Officer) |
By: | /s/ SEAN S. SULLIVAN | |||||||
Sean S. Sullivan Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
By: | /s/ JENNIFER C. WITZ | |||||||
Jennifer C. Witz Chief Executive Officer and Director (Principal Executive Officer) |
By: | /s/ SEAN S. SULLIVAN | |||||||
Sean S. Sullivan Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value ( in USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 9,000,000,000 | 9,000,000,000 |
Common stock issued (in shares) | 3,940,000,000 | 3,968,000,000 |
Common stock outstanding (in shares) | 3,940,000,000 | 3,967,000,000 |
Treasury stock (in shares) | 0 | 1,000,000 |
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT) (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Statement of Stockholders' Equity [Abstract] | ||
Dividend per share (in USD per share) | $ 0.2719615 | $ 0.014641 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
Mar. 31, 2021 |
Dec. 31, 2020 |
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Statement of Cash Flows [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ 76 | $ 191 | $ 59 | $ 71 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash included in Other long-term assets | 8 | 8 | 8 | 12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cash, cash equivalents and restricted cash at end of period | [1] | $ 84 | $ 199 | $ 67 | $ 83 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Business & Basis of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business & Basis of Presentation | Business & Basis of Presentation This Quarterly Report on Form 10-Q presents information for Sirius XM Holdings Inc. and its subsidiaries (collectively “Holdings”). The terms “Holdings,” “we,” “us,” “our,” and “our company” as used herein, and unless otherwise stated or indicated by context, refer to Sirius XM Holdings Inc. and its subsidiaries. “Sirius XM” refers to our wholly owned subsidiary Sirius XM Radio Inc. and its subsidiaries. “Pandora” refers to Sirius XM's wholly owned subsidiary Pandora Media, LLC and its subsidiaries. Holdings has no operations independent of Sirius XM and Pandora. Business We operate two complementary audio entertainment businesses - Sirius XM and Pandora and Off-platform. Sirius XM Our Sirius XM business features music, sports, entertainment, comedy, talk, news, traffic and weather channels and other content, as well as podcasts and infotainment services, in the United States on a subscription fee basis. Sirius XM packages include live, curated and certain exclusive and on demand programming. The Sirius XM service is distributed through our two proprietary satellite radio systems and streamed via applications for mobile devices, home devices and other consumer electronic equipment. Satellite radios are primarily distributed through automakers, retailers and our website. Our Sirius XM service is also available through our in-car user interface, which we call “360L,” that combines our satellite and streaming services into a single, cohesive in-vehicle entertainment experience. The primary source of revenue from our Sirius XM business is subscription fees, with most of our customers subscribing to monthly, quarterly, semi-annual or annual plans. We also derive revenue from advertising on select non-music channels, which is sold under the SXM Media brand, direct sales of our satellite radios and accessories, and other ancillary services. As of March 31, 2022, our Sirius XM business had approximately 34.0 million subscribers. In addition to our audio entertainment businesses, we provide connected vehicle services to several automakers. These services are designed to enhance the safety, security and driving experience of consumers. We also offer a suite of data services that includes graphical weather, fuel prices, sports schedules and scores and movie listings, a traffic information service that includes information as to road closings, traffic flow and incident data to consumers with compatible in-vehicle navigation systems, and real-time weather services in vehicles, boats and planes. Sirius XM also holds a 70% equity interest and 33% voting interest in Sirius XM Canada Holdings Inc. (“Sirius XM Canada”). Sirius XM Canada's subscribers are not included in our subscriber count or subscriber-based operating metrics. Pandora and Off-platform Pandora operates a music and podcast streaming discovery platform, offering a personalized experience for each listener wherever and whenever they want to listen, whether through computer, tablets, mobile devices, vehicle speakers or connected devices. Pandora enables listeners to create personalized stations and playlists, discover new content, hear artist- and expert-curated playlists, podcasts and select Sirius XM content as well as search and play songs and albums on-demand. Pandora is available as (1) an ad-supported radio service, (2) a radio subscription service (Pandora Plus) and (3) an on-demand subscription service (Pandora Premium). As of March 31, 2022, Pandora had approximately 6.3 million subscribers. The majority of revenue from Pandora is generated from advertising on our Pandora ad-supported radio service which is sold under the SXM Media brand. We also derive subscription revenue from our Pandora Plus and Pandora Premium subscribers. We also sell advertising on other audio platforms and in widely distributed podcasts, which we consider to be off-platform services. We have an arrangement with SoundCloud Holdings, LLC ("SoundCloud") to be its exclusive ad sales representative in the US and certain European countries and are able to offer advertisers the ability to execute campaigns across the Pandora and SoundCloud listening platforms. We also have arrangements to serve as the ad sales representative for certain podcasts. In addition, through AdsWizz Inc., we provide a comprehensive digital audio and programmatic advertising technology platform, which connects audio publishers and advertisers with a variety of ad insertion, campaign trafficking, yield optimization, programmatic buying, marketplace and podcast monetization solutions. Liberty Media As of March 31, 2022, Liberty Media Corporation (“Liberty Media”) beneficially owned, directly and indirectly, approximately 81% of the outstanding shares of our common stock. As a result, we are a “controlled company” for the purposes of the NASDAQ corporate governance requirements. Refer to Note 11 for more information regarding related parties. Basis of Presentation The accompanying unaudited consolidated financial statements of Holdings have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). All significant intercompany transactions have been eliminated in consolidation. Certain numbers in our prior period consolidated financial statements and footnotes have been reclassified or consolidated to conform to our current period presentation. In the opinion of our management, all normal recurring adjustments necessary for a fair presentation of our unaudited consolidated financial statements as of March 31, 2022 and for the three months ended March 31, 2022 and 2021 have been made. Interim results are not necessarily indicative of the results that may be expected for a full year. This Quarterly Report on Form 10-Q should be read together with our Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on February 1, 2022. Public companies are required to disclose certain information about their reportable operating segments. Operating segments are defined as significant components of an enterprise for which separate financial information is available and is evaluated on a regular basis by the chief operating decision maker in deciding how to allocate resources to an individual segment and in assessing performance of the segment. We have determined that we have two reportable segments as our chief operating decision maker, our Chief Executive Officer, assesses performance and allocates resources based on the financial results of these segments. Refer to Note 17 for information related to our segments. We have evaluated events subsequent to the balance sheet date and prior to the filing of this Quarterly Report on Form 10-Q for the three months ended March 31, 2022 and have determined that no events have occurred that would require adjustment to our unaudited consolidated financial statements. For a discussion of subsequent events that do not require adjustment to our unaudited consolidated financial statements refer to Note 18. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes. Estimates, by their nature, are based on judgment and available information. Actual results could differ materially from those estimates. Significant estimates inherent in the preparation of the accompanying unaudited consolidated financial statements include asset impairment, depreciable lives of our satellites, share-based payment expense and income taxes.
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Summary of Significant Accounting Policies |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Fair Value Measurements For assets and liabilities required to be reported at fair value, GAAP provides a hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are based on unadjusted quoted prices in active markets for identical instruments. Level 2 inputs are inputs, other than quoted market prices included within Level 1, that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. As of March 31, 2022 and December 31, 2021, the carrying amounts of cash and cash equivalents, receivables and accounts payable approximated fair value due to the short-term nature of these instruments. Our liabilities measured at fair value were as follows:
(a)The fair value for non-publicly traded debt is based upon estimates from a market maker and brokerage firm. Refer to Note 12 for information related to the carrying value of our debt as of March 31, 2022 and December 31, 2021. Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income of $23 was primarily comprised of the cumulative foreign currency translation adjustments related to our investment in and loan to Sirius XM Canada (refer to Note 11 for additional information). During the three months ended March 31, 2022 and 2021, we recorded foreign currency translation adjustment income of $8 and $5, net of tax expense of $3 and $1, respectively. Recently Adopted Accounting Policies Accounting Standard Update (“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40). In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-06 which removes the separation models for convertible debt with cash conversion or beneficial conversion features. ASU 2020-06 also requires the application of the if-converted method for calculating diluted earnings per share as the treasury stock method will no longer be permitted for convertible instruments. We adopted ASU 2020-06 as of January 1, 2022 using the modified retrospective approach and recorded a $14 increase to the carrying value of Pandora's 1.75% Convertible Senior Notes due 2023 and a corresponding increase to our accumulated deficit. The adoption of ASU 2020-06 did not have a material impact on our diluted earnings per share.
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Acquisitions |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions On January 12, 2022, we completed an acquisition for total cash consideration of $44. We recognized goodwill of $29 and other definite-lived intangible assets of $19. On April 23, 2021, we completed an acquisition for total consideration of $27 which included $20 in cash, a $3 deferred cash payment and $4 in restricted stock units. We recognized goodwill of $23 and other assets of $5. There were no acquisition related costs recognized for the three months ended March 31, 2022.
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Restructuring Costs |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring CostsNo restructuring costs were recognized during the three months ended March 31, 2022.During the three months ended March 31, 2021, we evaluated our office space needs and, as a result of such analysis, surrendered certain office leases primarily in New York, New York and Oakland, California. We assessed the recoverability of the carrying value of the operating lease right of use assets related to these locations. Based on that assessment, the carrying values of the assets were not recoverable, and we recorded an impairment of $18 to reduce the carrying value of the assets to their fair values. Additionally, we accrued expenses of $6 for which we will not recognize any future economic benefits and wrote off leasehold improvements of $1. The fair values of the assets were determined using a discounted cash flow model based on management's assumptions regarding the ability to sublease the locations and the remaining term of the leases. The total charge of $25 was recorded to Impairment, restructuring and acquisition costs in our unaudited consolidated statements of comprehensive income for the three months ended March 31, 2021. |
Earnings per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share | Earnings per ShareBasic net income per common share is calculated by dividing the income available to common stockholders by the weighted average common shares outstanding during each reporting period. Diluted net income per common share adjusts the weighted average number of common shares outstanding for the potential dilution that could occur if common stock equivalents (stock options, restricted stock units and convertible debt) were exercised or converted into common stock, calculated using the treasury stock method. We had no participating securities during the three months ended March 31, 2022 and 2021. Common stock equivalents of $84 and $97 for the three months ended March 31, 2022 and 2021, respectively, were excluded from the calculation of diluted net income per common share as the effect would have been anti-dilutive.
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Receivables, net |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables, net | Receivables, net Receivables, net, includes customer accounts receivable, receivables from distributors and other receivables. We do not have any customer receivables that individually represent more than ten percent of our receivables. Customer accounts receivable, net, includes receivables from our subscribers and advertising customers, including advertising agencies and other customers, and is stated at amounts due, net of an allowance for doubtful accounts. Our allowance for doubtful accounts is based upon our assessment of various factors. We consider historical experience, the age of the receivable balances, current economic conditions, industry experience and other factors that may affect the counterparty’s ability to pay. Bad debt expense is included in Customer service and billing expense in our unaudited consolidated statements of comprehensive income. Receivables from distributors primarily include billed and unbilled amounts due from automakers for services included in the sale or lease price of vehicles, as well as billed amounts due from wholesale distributors of our satellite radios. Other receivables primarily include amounts due from manufacturers of our radios, modules and chipsets where we are entitled to subsidies and royalties based on the number of units produced. We have not established an allowance for doubtful accounts for our receivables from distributors or other receivables as we have historically not experienced any significant collection issues with automakers or other third parties and do not expect issues in the foreseeable future. Receivables, net, consists of the following:
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Goodwill |
3 Months Ended |
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Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the estimated fair value of the net tangible and identifiable intangible assets acquired in business combinations. Our annual impairment assessment of our two reporting units is performed as of the fourth quarter of each year, and an assessment is performed at other times if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. ASC 350, Intangibles - Goodwill and Other, states that an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. ASC 350 also states that a reporting unit with a zero or negative carrying amount is not required to perform a qualitative assessment. Our Sirius XM reporting unit, which has an allocated goodwill balance of $2,290, had a negative carrying amount as of March 31, 2022. As of March 31, 2022, there were no indicators of impairment, and no impairment losses were recorded for goodwill during the three months ended March 31, 2022 and 2021. As of March 31, 2022, the cumulative balance of goodwill impairments recorded was $5,722, of which $4,766 was recognized during the year ended December 31, 2008 and is included in the carrying amount of the goodwill allocated to our Sirius XM reporting unit and $956 was recognized during the year ended December 31, 2020 and is included in the carrying amount of the goodwill allocated to our Pandora and Off-platform reporting unit. As of March 31, 2022, the carrying amount of goodwill for our Sirius XM and Pandora and Off-platform reporting units was $2,290 and $890, respectively. During the three months ended March 31, 2022, we recorded $29 of goodwill related to an acquisition which was recorded to our Pandora and Off-platform reporting unit. Refer to Note 3 for information regarding the acquisition. As of December 31, 2021, the carrying amount of goodwill for our Sirius XM and Pandora and Off-platform reporting units was $2,290 and $861, respectively.
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets Our intangible assets include the following:
Indefinite Life Intangible Assets We have identified our FCC licenses and XM and Pandora trademarks as indefinite life intangible assets after considering the expected use of the assets, the regulatory and economic environment within which they are used and the effects of obsolescence on their use. We hold FCC licenses to operate our satellite digital audio radio service and provide ancillary services. Each of the FCC licenses authorizes us to use radio spectrum, a reusable resource that does not deplete or exhaust over time. Our annual impairment assessment of our identifiable indefinite lived intangible assets is performed as of the fourth quarter of each year. An assessment is performed at other times if an event occurs or circumstances change that would more likely than not reduce the fair value of the asset below its carrying value. If the carrying value of the intangible assets exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. As of March 31, 2022, there were no indicators of impairment, and no impairment loss was recognized for intangible assets with indefinite lives during the three months ended March 31, 2022 and 2021. Definite Life Intangible Assets Amortization expense for all definite life intangible assets was $39 and $38 for the three months ended March 31, 2022 and 2021, respectively. There were no retirements of definite lived intangible assets during the three months ended March 31, 2022 and 2021. The expected amortization expense for each of the fiscal years 2022 through 2026 and for periods thereafter is as follows:
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Property and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and Equipment Property and equipment, net, consists of the following:
Construction in progress consists of the following:
Depreciation and amortization expense on property and equipment was $96 and $94 for the three months ended March 31, 2022 and 2021, respectively. Property and equipment with a cost of $22 and a net book value of $1 were retired during the three months ended March 31, 2022. We retired property and equipment of $5 during the three months ended March 31, 2021. We capitalize a portion of the interest on funds borrowed to finance the construction and launch of our satellites. Capitalized interest is recorded as part of the asset’s cost and depreciated over the satellite’s useful life. Capitalized interest costs were $1 and $3 for the three months ended March 31, 2022 and 2021, respectively, which related to the construction of our satellites. We also capitalize a portion of share-based compensation related to employee time for capitalized software projects. Capitalized share-based compensation costs were $5 and $4 for the three months ended March 31, 2022 and 2021, respectively. Satellites As of March 31, 2022, we operated a fleet of six satellites. Each satellite requires an FCC license, and prior to the expiration of each license, we are required to apply for a renewal of the FCC satellite license. The renewal and extension of our licenses is reasonably certain at minimal cost, which is expensed as incurred. The chart below provides certain information on our satellites as of March 31, 2022:
During the three months ended March 31, 2021, we recorded an impairment charge of $220 to Impairment, restructuring and acquisition costs in our unaudited consolidated statements of comprehensive income related to the total loss of the SXM-7 satellite. We procured insurance for SXM-7 to cover the risks associated with the satellite's launch and first year of in-orbit operation. The aggregate coverage under the insurance policies with respect to SXM-7 was $225, all of which was collected during the year ended December 31, 2021. Our SXM-8 satellite was successfully launched into a geostationary orbit on June 6, 2021 and was placed into service on September 8, 2021 following the completion of in-orbit testing. Our SXM-8 satellite replaced our XM-3 satellite. During the three months ended March 31, 2022, we replaced our XM-4 satellite with our XM-5 satellite. Our XM-3 and our XM-4 satellites remain available as in-orbit spares.
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases We have operating and finance leases for offices, terrestrial repeaters, data centers and certain equipment. Our leases have remaining lease terms of less than 1 year to 20 years, some of which may include options to extend the leases for up to 5 years, and some of which may include options to terminate the leases within 1 year. We elected the practical expedient to account for the lease and non-lease components as a single component. Additionally, we elected the practical expedient to not recognize right-of-use assets or lease liabilities for short-term leases, which are those leases with a term of twelve months or less at the lease commencement date. The components of lease expense were as follows:
During the three months ended March 31, 2021, we ceased using certain leased locations and recorded an impairment charge of $18 to write down the carrying value of the right-of-use assets for these locations to their estimated fair values. Refer to Note 4 for additional information.
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Leases | Leases We have operating and finance leases for offices, terrestrial repeaters, data centers and certain equipment. Our leases have remaining lease terms of less than 1 year to 20 years, some of which may include options to extend the leases for up to 5 years, and some of which may include options to terminate the leases within 1 year. We elected the practical expedient to account for the lease and non-lease components as a single component. Additionally, we elected the practical expedient to not recognize right-of-use assets or lease liabilities for short-term leases, which are those leases with a term of twelve months or less at the lease commencement date. The components of lease expense were as follows:
During the three months ended March 31, 2021, we ceased using certain leased locations and recorded an impairment charge of $18 to write down the carrying value of the right-of-use assets for these locations to their estimated fair values. Refer to Note 4 for additional information.
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Related Party Transactions |
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Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In the normal course of business, we enter into transactions with related parties such as Sirius XM Canada and SoundCloud. Liberty Media As of March 31, 2022, Liberty Media beneficially owned, directly and indirectly, approximately 81% of the outstanding shares of our common stock. Liberty Media has three of its executives and one of its directors on our board of directors. Gregory B. Maffei, the President and Chief Executive Officer of Liberty Media, is the Chairman of our board of directors. On February 1, 2021, Holdings entered into a tax sharing agreement with Liberty Media governing the allocation of consolidated U.S. income tax liabilities and setting forth agreements with respect to other tax matters. The tax sharing agreement was negotiated and approved by a special committee of Holdings’ board of directors, all of whom are independent of Liberty Media. Under the Internal Revenue Code, two corporations may form a consolidated tax group, and file a consolidated federal income tax return, if one corporation owns stock representing at least 80% of the voting power and value of the outstanding capital stock of the other corporation. As of March 31, 2022, Liberty Media beneficially owned, directly and indirectly, approximately 81% of the outstanding shares of our common stock resulting in Holdings and Liberty Media becoming members of the same consolidated tax group. The tax sharing agreement governs certain matters related to the resulting consolidated federal income tax returns, as well as state and local returns filed on a consolidated or combined basis. Sirius XM Canada Sirius XM holds a 70% equity interest and 33% voting interest in Sirius XM Canada, a privately held corporation. We own 591 shares of preferred stock of Sirius XM Canada, which has a liquidation preference of one Canadian dollar per share. Sirius XM Canada is accounted for as an equity method investment, and its results are not consolidated in our unaudited consolidated financial statements. Sirius XM Canada does not meet the requirements for consolidation as we do not have the ability to direct the most significant activities that impact Sirius XM Canada's economic performance. On March 15, 2022, Sirius XM and Sirius XM Canada entered into an amended and restated services and distribution agreement. The amended and restated services and distribution agreement modified the existing Services Agreement and terminated the existing Advisory Agreement, each dated as of May 25, 2017, between Sirius XM and Sirius XM Canada. Pursuant to the amended and restated services and distribution agreement, the fee payable by Sirius XM Canada to Sirius XM was modified from a fixed percentage of revenue to a variable fee, based on a target operating profit for Sirius XM Canada. Such variable fee is expected to be evaluated annually based on comparable companies. In accordance with the amended and restated services and distribution agreement, the fee is payable on a monthly basis, in arrears, beginning January 1, 2022. In May 2017, Sirius XM extended a loan to Sirius XM Canada in the principal amount of $131. In connection with the execution of the amended and restated services and distribution agreement, Sirius XM forgave $113 in principal amount of such loan to Sirius XM Canada, leaving an outstanding principal amount of $8 on such loan. The principal amount that was forgiven by Sirius XM was considered satisfied and as contributed capital from Sirius XM. Our related party long-term assets as of March 31, 2022 and December 31, 2021 included the carrying value of our investment balance in Sirius XM Canada of $460 and $334, respectively, and, as of March 31, 2022 and December 31, 2021, also included $8 and $120, respectively, for the long-term value of the outstanding loan to Sirius XM Canada. Sirius XM Canada paid gross dividends to us of less than $1 during each of the three months ended March 31, 2022 and 2021. Dividends are first recorded as a reduction to our investment balance in Sirius XM Canada to the extent a balance exists and then as Other (expense) income for any remaining portion. We recorded revenue from Sirius XM Canada as Other revenue in our unaudited consolidated statements of comprehensive income of $27 and $25 for the three months ended March 31, 2022 and 2021, respectively. SoundCloud We have an investment in SoundCloud accounted for as an equity method investment which is recorded in Related party long-term assets in our unaudited consolidated balance sheets. Sirius XM has appointed two individuals to serve on SoundCloud's nine-member board of managers. Sirius XM's share of SoundCloud's net loss was $1 and less than $1 for the three months ended March 31, 2022 and 2021, respectively, which was recorded in Other (expense) income in our unaudited consolidated statements of comprehensive income. In addition to our investment in SoundCloud, Pandora has an agreement with SoundCloud to be its exclusive ad sales representative in the US and certain European countries. Through this arrangement, Pandora offers advertisers the ability to execute campaigns across the Pandora and SoundCloud listening platforms. We recorded revenue share expense of $13 for each of the three months ended March 31, 2022 and 2021. We also had related party liabilities of $20 and $24 as of March 31, 2022 and December 31, 2021, respectively, related to this agreement.
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Our debt as of March 31, 2022 and December 31, 2021 consisted of the following:
(a)The carrying value of the obligations is net of any remaining unamortized original issue discount. (b)All material domestic subsidiaries, including Pandora and its subsidiaries, that guarantee the Credit Facility have guaranteed these notes. (c)Holdings has unconditionally guaranteed all of the payment obligations of Pandora under these notes. (d)We acquired $193 in principal amount of the 1.75% Convertible Senior Notes due 2023 as part of the acquisition of Pandora Media, Inc. in 2019. Prior to the adoption of ASU 2020-06, we allocated the principal amount of the 1.75% Convertible Senior Notes due 2023 between the liability and equity components. The value assigned to the debt components of the 1.75% Convertible Senior Notes due 2023 was the estimated fair value as of the issuance date of similar debt without the conversion feature. The difference between the fair value of the debt and this estimated fair value represented the value which was assigned to the equity component. The equity component was recorded to additional paid-in capital and was not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the Notes over the carrying amount of the liability component was recorded as a debt discount and was being amortized to interest expense using the effective interest method through the December 1, 2023 maturity date. On January 1, 2022, we adopted which removes the separation model for convertible debt with cash conversion features and recorded a $14 decrease to the debt discount and a corresponding increase to accumulated deficit. Refer to Note 2 for more information on the adoption of ASU 2020-06. The 1.75% Convertible Senior Notes due 2023 were not convertible into common stock and not redeemable as of March 31, 2022. As a result, we have classified the debt as Long-term within our unaudited consolidated balance sheets. (e)In August 2021, Sirius XM entered into an amendment to extend the maturity of the $1,750 Credit Facility to August 31, 2026. Sirius XM's obligations under the Credit Facility are guaranteed by certain of its material domestic subsidiaries, including Pandora and its subsidiaries, and are secured by a lien on substantially all of Sirius XM's assets and the assets of its material domestic subsidiaries. Interest on borrowings is payable on a monthly basis and accrues at a rate based on LIBOR plus an applicable rate. Sirius XM is also required to pay a variable fee on the average daily unused portion of the Credit Facility which is payable on a quarterly basis. The variable rate for the unused portion of the Credit Facility was 0.25% per annum as of March 31, 2022. All of Sirius XM's outstanding borrowings under the Credit Facility are classified as Long-term debt within our unaudited consolidated balance sheets due to the long-term maturity of this debt. Covenants and Restrictions Under the Credit Facility, Sirius XM, our wholly owned subsidiary, must comply with a debt maintenance covenant that it cannot exceed a total leverage ratio, calculated as consolidated total debt to consolidated operating cash flow, of 5.0 to 1.0. The Credit Facility generally requires compliance with certain covenants that restrict Sirius XM's ability to, among other things, (i) incur additional indebtedness, (ii) incur liens, (iii) pay dividends or make certain other restricted payments, investments or acquisitions, (iv) enter into certain transactions with affiliates, (v) merge or consolidate with another person, (vi) sell, assign, lease or otherwise dispose of all or substantially all of Sirius XM's assets, and (vii) make voluntary prepayments of certain debt, in each case subject to exceptions. The indentures governing Sirius XM's notes restrict Sirius XM's non-guarantor subsidiaries' ability to create, assume, incur or guarantee additional indebtedness without such non-guarantor subsidiary guaranteeing each such series of notes on a pari passu basis. The indentures governing the notes also contain covenants that, among other things, limit Sirius XM's ability and the ability of its subsidiaries to create certain liens; enter into sale/leaseback transactions; and merge or consolidate. Under Sirius XM's debt agreements, the following generally constitute an event of default: (i) a default in the payment of interest; (ii) a default in the payment of principal; (iii) failure to comply with covenants; (iv) failure to pay other indebtedness after final maturity or acceleration of other indebtedness exceeding a specified amount; (v) certain events of bankruptcy; (vi) a judgment for payment of money exceeding a specified aggregate amount; and (vii) voidance of subsidiary guarantees, subject to grace periods where applicable. If an event of default occurs and is continuing, our debt could become immediately due and payable. The indenture governing the Pandora 2023 Notes (as defined below) contains covenants that limit Pandora’s ability to merge or consolidate and provides for customary events of default, which include nonpayment of principal or interest, breach of covenants, payment defaults or acceleration of other indebtedness and certain events of bankruptcy. At March 31, 2022 and December 31, 2021, we were in compliance with our debt covenants. Pandora Convertible Notes Pandora's 1.75% Convertible Senior Notes due 2023 (the “Pandora 2023 Notes”) are unsecured, senior obligations of Pandora. Holdings has guaranteed the payment and performance obligations of Pandora under the Pandora 2023 Notes and the indenture governing the Pandora 2023 Notes. The Pandora 2023 Notes will mature on December 1, 2023, unless earlier repurchased or redeemed by Pandora or converted in accordance with their terms. As of March 31, 2022, the conversion rate applicable to the Pandora 2023 Notes was 161.0187 shares of Holdings' common stock per one thousand principal amount of the Pandora 2023 Notes plus carryforward adjustments not yet effected pursuant to the terms of the indenture governing the Pandora 2023 Notes.
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Stockholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity Common Stock, par value $0.001 per share We are authorized to issue up to 9,000 shares of common stock. There were 3,940 and 3,968 shares of common stock issued and 3,940 and 3,967 shares of common stock outstanding on March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022, there were 243 shares of common stock reserved for issuance in connection with outstanding stock-based awards to members of our board of directors, employees and third parties. Special Dividend During the three months ended March 31, 2022, our board of directors declared and paid the following special cash dividend on our common stock:
Quarterly Dividends During the three months ended March 31, 2022, we also declared and paid the following dividend:
Stock Repurchase Program As of March 31, 2022, our board of directors had approved for repurchase an aggregate of $18,000 of our common stock. Our board of directors did not establish an end date for this stock repurchase program. Shares of common stock may be purchased from time to time on the open market, pursuant to pre-set trading plans meeting the requirements of Rule 10b5-1 under the Exchange Act, in privately negotiated transactions, including transactions with Liberty Media and its affiliates, or otherwise. As of March 31, 2022, our cumulative repurchases since December 2012 under our stock repurchase program totaled 3,591 shares for $16,119, and $1,881 remained available for future share repurchases under our stock repurchase program. The following table summarizes our total share repurchase activity for the three months ended:
(a)As of March 31, 2022, $2 of common stock repurchases had not settled, nor been retired, and were recorded as Treasury stock within our unaudited consolidated balance sheets and unaudited consolidated statement of stockholders’ equity (deficit). Preferred Stock, par value $0.001 per share We are authorized to issue up to 50 shares of undesignated preferred stock with a liquidation preference of $0.001 per share. There were no shares of preferred stock issued or outstanding as of March 31, 2022 and December 31, 2021.
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Benefit Plans |
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Benefit Plans | Benefit Plans We recognized share-based payment expense of $45 and $51 for the three months ended March 31, 2022 and 2021, respectively. 2015 Long-Term Stock Incentive Plan In May 2015, our stockholders approved the Sirius XM Holdings Inc. 2015 Long-Term Stock Incentive Plan (the “2015 Plan”). Employees, consultants and members of our board of directors are eligible to receive awards under the 2015 Plan. The 2015 Plan provides for the grant of stock options, restricted stock awards, restricted stock units and other stock-based awards that the Compensation Committee of our Board of Directors deems appropriate. Stock-based awards granted under the 2015 Plan are generally subject to a graded vesting requirement, which is generally to four years from the grant date. Stock options generally expire ten years from the date of grant. Restricted stock units include performance-based restricted stock units (“PRSUs”), the vesting of which are subject to the achievement of performance goals and the employee's continued employment and generally cliff vest on the third anniversary of the grant date. Each restricted stock unit entitles the holder to receive one share of common stock upon vesting. As of March 31, 2022, 124 shares of common stock were available for future grants under the 2015 Plan. In February 2021, the Compensation Committee of our Board of Directors approved a modification to the design of our long-term equity compensation program for our senior management. The Compensation Committee intends to award equity-based compensation to our senior management in the form of: 25% stock options, which awards will vest in equal installments on the first three anniversaries of the date of grant; 25% restricted stock units, which awards will vest in equal installments on the first three anniversaries of the date of grant; 25% PRSUs, which will cliff vest on the third anniversary of the date of grant after a two-year performance period if the free cash flow target established by the Compensation Committee is achieved; and 25% PRSUs, which will cliff vest after a three-year performance period based on the performance of our common stock relative to the companies included in the S&P 500 Index. We refer to this performance measure as a relative “TSR” or “total stockholder return” metric. PRSUs based on the relative total stockholder return metric will only vest if our performance achieves at least the 25th percentile, with a target payout requiring performance at the 50th percentile. The settlement of PRSUs earned in respect of the applicable three-year performance period will be generally subject to the executive’s continued employment with us through the date the total stockholder return performance is certified by the Compensation Committee. Other Plans We maintain six share-based benefit plans in addition to the 2015 Plan — the Sirius XM Radio Inc. 2009 Long-Term Stock Incentive Plan, the Amended and Restated Sirius Satellite Radio 2003 Long-Term Stock Incentive Plan, the 2014 Stock Incentive Plan of AdsWizz Inc., the Pandora Media, Inc. 2011 Equity Incentive Plan, the Pandora Media, Inc. 2004 Stock Plan and the TheSavageBeast.com, Inc. 2000 Stock Incentive Plan. Excluding dividend equivalent units granted as a result of a declared dividend, no further awards may be made under these plans. The following table summarizes the weighted-average assumptions used to compute the fair value of options granted to employees, members of our board of directors and non-employees:
The following table summarizes stock option activity under our share-based plans for the three months ended March 31, 2022:
(1) The weighted-average exercise price for options outstanding and exercisable as of December 31, 2021 and March 31, 2022 in the table above have been adjusted to reflect the reduction of $0.25 to the exercise price related to the February 25, 2022 special cash dividend. The weighted average grant date fair value per stock option granted during the three months ended March 31, 2022 was $1.50. The total intrinsic value of stock options exercised during the three months ended March 31, 2022 and 2021 was $16 and $85, respectively. During the three months ended March 31, 2022, the number of net settled shares issued as a result of stock option exercises was 1. We recognized share-based payment expense associated with stock options of $9 and $11 for the three months ended March 31, 2022 and 2021, respectively. The following table summarizes the restricted stock unit, including PRSU, activity under our share-based plans for the three months ended March 31, 2022:
The total intrinsic value of restricted stock units, including PRSUs, vesting during the three months ended March 31, 2022 and 2021 was $46 and $39, respectively. During the three months ended March 31, 2022, the number of net settled shares issued as a result of restricted stock units vesting totaled 4. During the three months ended March 31, 2022, we granted 5 PRSUs to certain employees. We believe it is probable that the performance target applicable to these PRSUs will be achieved. In connection with the cash dividends paid during the three months ended March 31, 2022, we granted 4 restricted stock units, including PRSUs, in accordance with the terms of existing award agreements. These grants did not result in any additional incremental share-based payment expense being recognized during the three months ended March 31, 2022. We recognized share-based payment expense associated with restricted stock units, including PRSUs, of $36 and $40 for the three months ended March 31, 2022 and 2021, respectively. Total unrecognized compensation costs related to unvested share-based payment awards for stock options and restricted stock units, including PRSUs, granted to employees, members of our board of directors and third parties at March 31, 2022 and December 31, 2021 was $463 and $455, respectively. The total unrecognized compensation costs at March 31, 2022 are expected to be recognized over a weighted-average period of 2.4 years. 401(k) Savings Plans Sirius XM Radio Inc. 401(k) Savings Plan Sirius XM sponsors the Sirius XM Radio Inc. 401(k) Savings Plan (the “Sirius XM Plan”) for eligible employees. The Sirius XM Plan allows eligible employees to voluntarily contribute from 1% to 50% of their pre-tax eligible earnings, subject to certain defined limits. We match 50% of an employee’s voluntary contributions per pay period on the first 6% of an employee’s pre-tax salary up to a maximum of 3% of eligible compensation. We may also make additional discretionary matching, true-up matching and non-elective contributions to the Sirius XM Plan. Employer matching contributions under the Sirius XM Plan vest at a rate of 33.33% for each year of employment and are fully vested after three years of employment for all current and future contributions. Our cash employer matching contributions are not used to purchase shares of our common stock on the open market, unless the employee elects our common stock as their investment option for this contribution. We recognized expenses of $5 for each of the three months ended March 31, 2022 and 2021 in connection with the Sirius XM Plan. Sirius XM Holdings Inc. Deferred Compensation Plan The Sirius XM Holdings Inc. Deferred Compensation Plan (the “DCP”) allows members of our board of directors and certain eligible employees to defer all or a portion of their base salary, cash incentive compensation and/or board of directors’ cash compensation, as applicable. Pursuant to the terms of the DCP, we may elect to make additional contributions beyond amounts deferred by participants, but we are under no obligation to do so. We have established a grantor (or “rabbi”) trust to facilitate the payment of our obligations under the DCP. Contributions to the DCP, net of withdrawals, were $— and $3 for the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022 and December 31, 2020, the fair value of the investments held in the trust were $53 and $56, respectively, which is included in Other long-term assets in our unaudited consolidated balance sheets and classified as trading securities. Trading gains and losses associated with these investments are recorded in Other (expense) income within our unaudited consolidated statements of comprehensive income. The associated liability is recorded within Other long-term liabilities in our unaudited consolidated balance sheets, and any increase or decrease in the liability is recorded in General and administrative expense within our unaudited consolidated statements of comprehensive income. We recorded (losses) gains on investments held in the trust of $(3) and $1 for the three months ended March 31, 2022 and 2021, respectively.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies The following table summarizes our expected contractual cash commitments as of March 31, 2022:
(1)The table does not include our reserve for uncertain tax positions, which at March 31, 2022 totaled $33. Debt obligations. Debt obligations include principal payments on outstanding debt and finance lease obligations. Cash interest payments. Cash interest payments include interest due on outstanding debt and capital lease payments through maturity. Satellite and transmission. We have entered into agreements with third parties to design, build and launch two new satellites, SXM-9 and SXM-10. We also have entered into agreements with third parties to operate and maintain satellite telemetry, tracking and control facilities and certain components of our terrestrial repeater networks. Programming and content. We have entered into various programming and content agreements. Under the terms of these agreements, our obligations include fixed payments, advertising commitments and revenue sharing arrangements. In certain of these agreements, the future revenue sharing costs are dependent upon many factors and are difficult to estimate; therefore, they are not included in our minimum contractual cash commitments. Sales and marketing. We have entered into various marketing, sponsorship and distribution agreements to promote our brands and are obligated to make payments to sponsors, retailers, automakers, radio manufacturers and other third parties under these agreements. Certain programming and content agreements also require us to purchase advertising on properties owned or controlled by the licensors. Satellite incentive payments. Boeing Satellite Systems International, Inc., the manufacturer of certain of our in-orbit satellites, may be entitled to future in-orbit performance payments upon XM-4 meeting its fifteen-year design life. Boeing may also be entitled to up to $10 of additional incentive payments if our XM-4 satellite continues to operate above baseline specifications during the five years beyond the satellite’s fifteen-year design life. Maxar Technologies (formerly Space Systems/Loral), the manufacturer of certain of our in-orbit satellites, may be entitled to future in-orbit performance payments upon XM-5, SIRIUS FM-5, SIRIUS FM-6, and SXM-8 meeting their fifteen-year design life, which we expect to occur. Operating lease obligations. We have entered into both cancelable and non-cancelable operating leases for office space, terrestrial repeaters, data centers and equipment. These leases provide for minimum lease payments, additional operating expense charges, leasehold improvements and rent escalations that have initial terms ranging from to fifteen years, and certain leases have options to renew. Royalties, Minimum Guarantees and Other. We have entered into music royalty arrangements that include fixed payments. Certain of our content agreements also contain minimum guarantees. During the three months ended March 31, 2022, we prepaid $7 in content costs related to minimum guarantees. As of March 31, 2022, we had future fixed minimum guarantee commitments of $328, of which $11 will be paid in 2022 and the remainder will be paid thereafter. On a quarterly basis, we record the greater of the cumulative actual content costs incurred or the cumulative minimum guarantee based on forecasted usage for the minimum guarantee period. The minimum guarantee period is the period of time that the minimum guarantee relates to, as specified in each agreement, which may be annual or a longer period. The cumulative minimum guarantee, based on forecasted usage, considers factors such as listening hours, revenue, subscribers and other terms of each agreement that impact our expected attainment or recoupment of the minimum guarantees based on the relative attribution method. Several of our content agreements also include provisions related to the royalty payments and structures of those agreements relative to other content licensing arrangements, which, if triggered, cause our payments under those agreements to escalate. In addition, record labels, publishers and performing rights organizations (“PROs”) with whom we have entered into direct license agreements have the right to audit our content payments, and such audits often result in disputes over whether we have paid the proper content costs. We have also entered into various agreements with third parties for general operating purposes. The cost of our common stock acquired in our capital return program but not paid for as of March 31, 2022 was also included in this category. In addition to the minimum contractual cash commitments described above, we have entered into other variable cost arrangements. These future costs are dependent upon many factors and are difficult to anticipate; however, these costs may be substantial. We may enter into additional programming, distribution, marketing and other agreements that contain similar variable cost provisions. We do not have any other significant off-balance sheet financing arrangements that are reasonably likely to have a material effect on our financial condition, results of operations, liquidity, capital expenditures or capital resources. Legal Proceedings In the ordinary course of business, we are a defendant or party to various claims and lawsuits, including those discussed below. We record a liability when we believe that it is both probable that a liability will be incurred, and the amount of loss can be reasonably estimated. We evaluate developments in legal matters that could affect the amount of liability that has been previously accrued and make adjustments as appropriate. Significant judgment is required to determine both probability and the estimated amount of a loss or potential loss. We may be unable to reasonably estimate the reasonably possible loss or range of loss for a particular legal contingency for various reasons, including, among others, because: (i) the damages sought are indeterminate; (ii) the proceedings are in the relative early stages; (iii) there is uncertainty as to the outcome of pending proceedings (including motions and appeals); (iv) there is uncertainty as to the likelihood of settlement and the outcome of any negotiations with respect thereto; (v) there remain significant factual issues to be determined or resolved; (vi) the relevant law is unsettled; or (vii) the proceedings involve novel or untested legal theories. In such instances, there may be considerable uncertainty regarding the ultimate resolution of such matters, including the likelihood or magnitude of a possible eventual loss, if any. Pre-1972 Sound Recording Litigation. On October 2, 2014, Flo & Eddie Inc. filed a class action suit against Pandora in the federal district court for the Central District of California. The complaint alleges a violation of California Civil Code Section 980, unfair competition, misappropriation and conversion in connection with the public performance of sound recordings recorded prior to February 15, 1972 (which we refer to as, “pre-1972 recordings”). On December 19, 2014, Pandora filed a motion to strike the complaint pursuant to California’s Anti-Strategic Lawsuit Against Public Participation (“Anti-SLAPP”) statute, which following denial of Pandora’s motion was appealed to the Ninth Circuit Court of Appeals. In March 2017, the Ninth Circuit requested certification to the California Supreme Court on the substantive legal questions. The California Supreme Court accepted certification. In May 2019, the California Supreme Court issued an order dismissing consideration of the certified questions on the basis that, following the enactment of the Orrin G. Hatch-Bob Goodlatte Music Modernization Act, Pub. L. No. 115-264, 132 Stat. 3676 (2018) (the “MMA”), resolution of the questions posed by the Ninth Circuit Court of Appeals was no longer “necessary to . . . settle an important question of law.” The MMA grants a potential federal preemption defense to the claims asserted in the aforementioned lawsuits. In July 2019, Pandora took steps to avail itself of this preemption defense, including making the required payments under the MMA for certain of its uses of pre-1972 recordings. Based on the federal preemption contained in the MMA (along with other considerations), Pandora asked the Ninth Circuit to order the dismissal of the Flo & Eddie, Inc. v. Pandora Media, Inc. case. On October 17, 2019, the Ninth Circuit Court of Appeals issued a memorandum disposition concluding that the question of whether the MMA preempts Flo and Eddie's claims challenging Pandora's performance of pre-1972 recordings “depends on various unanswered factual questions” and remanded the case to the District Court for further proceedings. In October 2020, the District Court denied Pandora’s renewed motion to dismiss the case under California’s anti-SLAPP statute, finding the case no longer qualified for anti-SLAPP due to intervening changes in the law, and denied Pandora’s renewed attempt to end the case. Alternatively, the District Court ruled that the preemption defense likely did not apply to Flo & Eddie’s claims, in part because the District Court believed that the MMA did not apply retroactively. Pandora promptly appealed the District Court’s decision to the Ninth Circuit, and moved to stay appellate briefing pending the appeal of a related case against Sirius XM. On January 13, 2021, the Ninth Circuit issued an order granting the stay of appellate proceedings pending the resolution of a related case against Sirius XM. On August 23, 2021, the United States Court of Appeals for the Ninth Circuit issued an Opinion in a related case, Flo & Eddie Inc. v. Sirius XM Radio Inc. The related case also concerned a class action suit brought by Flo & Eddie Inc. regarding the public performance of pre-1972 recordings under California law. Relying on California’s copyright statute, Flo & Eddie argued that California law gave it the “exclusive ownership” of its pre-1972 songs, including the right of public performance. The Ninth Circuit reversed the District Court’s grant of partial summary judgment to Flo & Eddie Inc. The Ninth Circuit held that the District Court in this related case erred in concluding that “exclusive ownership” under California’s copyright statute included the right of public performance. The Ninth Circuit remanded the case for entry of judgment consistent with the terms of the parties’ contingent settlement agreement, and on October 6, 2021, the parties to the related case stipulated to its dismissal with prejudice. Following issuance of the Flo & Eddie Inc. v. Sirius XM Radio Inc. opinion, on September 3, 2021, the Ninth Circuit lifted the stay of appellate proceedings in Flo & Eddie, Inc. v. Pandora Media, LLC. The Flo & Eddie Inc. v. Sirius XM Radio Inc. decision is precedential in the Ninth Circuit, and therefore we believe substantially narrows the claims that Flo & Eddie may continue to assert against Pandora. We believe we have substantial defenses to the remaining claims asserted in this action, and we intend to defend this action vigorously. Other Matters. In the ordinary course of business, we are a defendant in various other lawsuits and arbitration proceedings, including derivative actions; actions filed by subscribers, both on behalf of themselves and on a class action basis; former employees; parties to contracts or leases; and owners of patents, trademarks, copyrights or other intellectual property. None of these other matters, in our opinion, is likely to have a material adverse effect on our business, financial condition or results of operations.
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Income Taxes |
3 Months Ended |
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Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We have historically filed a consolidated federal income tax return for all of our wholly owned subsidiaries, including Sirius XM and Pandora. On February 1, 2021, we entered into a tax sharing agreement with Liberty Media governing the allocation of consolidated U.S. income tax liabilities and setting forth agreements with respect to other tax matters. The tax sharing agreement contains provisions that we believe are customary for tax sharing agreements between members of a consolidated group. On November 3, 2021, Liberty Media informed us that it beneficially owned over 80% of the outstanding shares of our common stock; as a result of this, we will now be included in the consolidated tax return of Liberty Media beginning November 4, 2021. The tax sharing agreement and our inclusion in Liberty Media’s consolidated tax group is not expected to have any material adverse effect on us. We have calculated the provision for income taxes by using a separate return method. Any payment made to Liberty Media, pursuant to the tax sharing agreement, shall be treated as a capital contribution or a distribution. For the three months ended March 31, 2022 and 2021, income tax (expense) benefit was $(100) and $62, respectively. In addition, we recorded $13 as a capital contribution related to the tax sharing agreement with Liberty Media within Related party liabilities on our unaudited consolidated balance sheet as of March 31, 2022. Our effective tax rate for the three months ended March 31, 2022 and 2021 was 24.4% and (39.5)%, respectively. The effective tax rate for the three months ended March 31, 2022 was primarily impacted by a benefit associated with the recognition of excess tax benefits related to share-based compensation. The effective tax rate for the three months ended March 31, 2021 was primarily impacted by a $95 benefit associated with a state tax audit settlement and the recognition of excess tax benefits related to share-based compensation. We estimate our effective tax rate for the year ending December 31, 2022 will be approximately 25%. As of March 31, 2022 and December 31, 2021, we had a valuation allowance related to deferred tax assets of $81 and $83, respectively, that were not likely to be realized due to the timing of certain federal and state net operating loss limitations.
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Segments and Geographic Information |
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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 less than $1 of intersegment advertising revenue during each of the three months ended March 31, 2022 and 2021. Segment revenue and gross profit were as follows during the period presented:
The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
(a) Share-based payment expense of $10 related to cost of services, $13 related to sales and marketing, $8 related to engineering, design and development and $14 related to general and administrative has been excluded.
The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
(b) Share-based payment expense of $11 related to cost of services, $15 related to sales and marketing, $10 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, 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 months ended March 31, 2022 and 2021.
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Subsequent Events |
3 Months Ended |
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Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Capital Return Program For the period from April 1, 2022 to April 26, 2022, we repurchased 65 shares of our common stock on the open market for an aggregate purchase price of $409, including fees and commissions. On April 19, 2022, our board of directors declared a quarterly dividend on our common stock in the amount of $0.0219615 per share of common stock payable on May 25, 2022 to stockholders of record as of the close of business on May 6, 2022. Amendment to Credit Facility On April 11, 2022, Sirius XM entered into an amendment to its existing Credit Facility to add a $500 Incremental Term Loan which will mature on April 11, 2024. Interest on the Incremental Term Loan borrowing is based on the Adjusted Term Secured Overnight Financing Rate ("SOFR") plus an applicable rate.
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Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of Holdings have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). All significant intercompany transactions have been eliminated in consolidation. Certain numbers in our prior period consolidated financial statements and footnotes have been reclassified or consolidated to conform to our current period presentation.
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and footnotes. Estimates, by their nature, are based on judgment and available information. Actual results could differ materially from those estimates. Significant estimates inherent in the preparation of the accompanying unaudited consolidated financial statements include asset impairment, depreciable lives of our satellites, share-based payment expense and income taxes.
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Fair Value Measurements | Fair Value MeasurementsFor assets and liabilities required to be reported at fair value, GAAP provides a hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are based on unadjusted quoted prices in active markets for identical instruments. Level 2 inputs are inputs, other than quoted market prices included within Level 1, that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. |
Earnings per Share | Basic net income per common share is calculated by dividing the income available to common stockholders by the weighted average common shares outstanding during each reporting period. Diluted net income per common share adjusts the weighted average number of common shares outstanding for the potential dilution that could occur if common stock equivalents (stock options, restricted stock units and convertible debt) were exercised or converted into common stock, calculated using the treasury stock method. |
Receivables, net | Receivables, net, includes customer accounts receivable, receivables from distributors and other receivables. We do not have any customer receivables that individually represent more than ten percent of our receivables. Customer accounts receivable, net, includes receivables from our subscribers and advertising customers, including advertising agencies and other customers, and is stated at amounts due, net of an allowance for doubtful accounts. Our allowance for doubtful accounts is based upon our assessment of various factors. We consider historical experience, the age of the receivable balances, current economic conditions, industry experience and other factors that may affect the counterparty’s ability to pay. Bad debt expense is included in Customer service and billing expense in our unaudited consolidated statements of comprehensive income. Receivables from distributors primarily include billed and unbilled amounts due from automakers for services included in the sale or lease price of vehicles, as well as billed amounts due from wholesale distributors of our satellite radios. Other receivables primarily include amounts due from manufacturers of our radios, modules and chipsets where we are entitled to subsidies and royalties based on the number of units produced. We have not established an allowance for doubtful accounts for our receivables from distributors or other receivables as we have historically not experienced any significant collection issues with automakers or other third parties and do not expect issues in the foreseeable future.
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Goodwill | Goodwill represents the excess of the purchase price over the estimated fair value of the net tangible and identifiable intangible assets acquired in business combinations. Our annual impairment assessment of our two reporting units is performed as of the fourth quarter of each year, and an assessment is performed at other times if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. ASC 350, Intangibles - Goodwill and Other, states that an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. ASC 350 also states that a reporting unit with a zero or negative carrying amount is not required to perform a qualitative assessment. |
Indefinite Life Intangible Assets | Indefinite Life Intangible Assets We have identified our FCC licenses and XM and Pandora trademarks as indefinite life intangible assets after considering the expected use of the assets, the regulatory and economic environment within which they are used and the effects of obsolescence on their use. We hold FCC licenses to operate our satellite digital audio radio service and provide ancillary services. Each of the FCC licenses authorizes us to use radio spectrum, a reusable resource that does not deplete or exhaust over time. Our annual impairment assessment of our identifiable indefinite lived intangible assets is performed as of the fourth quarter of each year. An assessment is performed at other times if an event occurs or circumstances change that would more likely than not reduce the fair value of the asset below its carrying value. If the carrying value of the intangible assets exceeds its fair value, an impairment loss is recognized in an amount equal to that excess.
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Equity Method Investments | Sirius XM Canada is accounted for as an equity method investment, and its results are not consolidated in our unaudited consolidated financial statements. Sirius XM Canada does not meet the requirements for consolidation as we do not have the ability to direct the most significant activities that impact Sirius XM Canada's economic performance. |
Commitments and Contingencies | We record a liability when we believe that it is both probable that a liability will be incurred, and the amount of loss can be reasonably estimated. We evaluate developments in legal matters that could affect the amount of liability that has been previously accrued and make adjustments as appropriate. Significant judgment is required to determine both probability and the estimated amount of a loss or potential loss. We may be unable to reasonably estimate the reasonably possible loss or range of loss for a particular legal contingency for various reasons, including, among others, because: (i) the damages sought are indeterminate; (ii) the proceedings are in the relative early stages; (iii) there is uncertainty as to the outcome of pending proceedings (including motions and appeals); (iv) there is uncertainty as to the likelihood of settlement and the outcome of any negotiations with respect thereto; (v) there remain significant factual issues to be determined or resolved; (vi) the relevant law is unsettled; or (vii) the proceedings involve novel or untested legal theories. In such instances, there may be considerable uncertainty regarding the ultimate resolution of such matters, including the likelihood or magnitude of a possible eventual loss, if any. |
Recently Adopted Accounting Policies | Recently Adopted Accounting Policies Accounting Standard Update (“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40). In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-06 which removes the separation models for convertible debt with cash conversion or beneficial conversion features. ASU 2020-06 also requires the application of the if-converted method for calculating diluted earnings per share as the treasury stock method will no longer be permitted for convertible instruments. We adopted ASU 2020-06 as of January 1, 2022 using the modified retrospective approach and recorded a $14 increase to the carrying value of Pandora's 1.75% Convertible Senior Notes due 2023 and a corresponding increase to our accumulated deficit. The adoption of ASU 2020-06 did not have a material impact on our diluted earnings per share.
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Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value | Our liabilities measured at fair value were as follows:
(a)The fair value for non-publicly traded debt is based upon estimates from a market maker and brokerage firm. Refer to Note 12 for information related to the carrying value of our debt as of March 31, 2022 and December 31, 2021.
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Earnings per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted |
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Receivables, net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable, Net | Receivables, net, consists of the following:
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Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Indefinite-Lived Intangible Assets | Our intangible assets include the following:
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Schedule of Finite-Lived Intangible Assets | Our intangible assets include the following:
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Schedule of Expected Future Amortization Expense | The expected amortization expense for each of the fiscal years 2022 through 2026 and for periods thereafter is as follows:
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Property and Equipment (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment, Net | Property and equipment, net, consists of the following:
Construction in progress consists of the following:
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Schedule of Orbiting Satellites | The chart below provides certain information on our satellites as of March 31, 2022:
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Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Lease Expense | The components of lease expense were as follows:
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Debt (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | Our debt as of March 31, 2022 and December 31, 2021 consisted of the following:
(a)The carrying value of the obligations is net of any remaining unamortized original issue discount. (b)All material domestic subsidiaries, including Pandora and its subsidiaries, that guarantee the Credit Facility have guaranteed these notes. (c)Holdings has unconditionally guaranteed all of the payment obligations of Pandora under these notes. (d)We acquired $193 in principal amount of the 1.75% Convertible Senior Notes due 2023 as part of the acquisition of Pandora Media, Inc. in 2019. Prior to the adoption of ASU 2020-06, we allocated the principal amount of the 1.75% Convertible Senior Notes due 2023 between the liability and equity components. The value assigned to the debt components of the 1.75% Convertible Senior Notes due 2023 was the estimated fair value as of the issuance date of similar debt without the conversion feature. The difference between the fair value of the debt and this estimated fair value represented the value which was assigned to the equity component. The equity component was recorded to additional paid-in capital and was not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the Notes over the carrying amount of the liability component was recorded as a debt discount and was being amortized to interest expense using the effective interest method through the December 1, 2023 maturity date. On January 1, 2022, we adopted which removes the separation model for convertible debt with cash conversion features and recorded a $14 decrease to the debt discount and a corresponding increase to accumulated deficit. Refer to Note 2 for more information on the adoption of ASU 2020-06. The 1.75% Convertible Senior Notes due 2023 were not convertible into common stock and not redeemable as of March 31, 2022. As a result, we have classified the debt as Long-term within our unaudited consolidated balance sheets. (e)In August 2021, Sirius XM entered into an amendment to extend the maturity of the $1,750 Credit Facility to August 31, 2026. Sirius XM's obligations under the Credit Facility are guaranteed by certain of its material domestic subsidiaries, including Pandora and its subsidiaries, and are secured by a lien on substantially all of Sirius XM's assets and the assets of its material domestic subsidiaries. Interest on borrowings is payable on a monthly basis and accrues at a rate based on LIBOR plus an applicable rate. Sirius XM is also required to pay a variable fee on the average daily unused portion of the Credit Facility which is payable on a quarterly basis. The variable rate for the unused portion of the Credit Facility was 0.25% per annum as of March 31, 2022. All of Sirius XM's outstanding borrowings under the Credit Facility are classified as Long-term debt within our unaudited consolidated balance sheets due to the long-term maturity of this debt.
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Stockholders' Equity (Tables) |
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Dividends Declared | , our board of directors declared and paid the following special cash dividend on our common stock:
During the three months ended March 31, 2022, we also declared and paid the following dividend:
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Schedule of Repurchase Agreements | The following table summarizes our total share repurchase activity for the three months ended:
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Benefit Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Options Granted | The following table summarizes the weighted-average assumptions used to compute the fair value of options granted to employees, members of our board of directors and non-employees:
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Schedule of Stock Options Activity Under Share-based Payment Plans | The following table summarizes stock option activity under our share-based plans for the three months ended March 31, 2022:
(1) The weighted-average exercise price for options outstanding and exercisable as of December 31, 2021 and March 31, 2022 in the table above have been adjusted to reflect the reduction of $0.25 to the exercise price related to the February 25, 2022 special cash dividend.
|
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Schedule of Restricted Stock Unit and Stock Award Activity | The following table summarizes the restricted stock unit, including PRSU, activity under our share-based plans for the three months ended March 31, 2022:
|
Commitments and Contingencies (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Expected Contractual Cash Commitments | The following table summarizes our expected contractual cash commitments as of March 31, 2022:
(1)The table does not include our reserve for uncertain tax positions, which at March 31, 2022 totaled $33.
|
Segments and Geographic Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Segment revenue and gross profit were as follows during the period presented:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Revenue from Segments to Consolidated | The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
(a) Share-based payment expense of $10 related to cost of services, $13 related to sales and marketing, $8 related to engineering, design and development and $14 related to general and administrative has been excluded. The reconciliation between reportable segment gross profit to consolidated income before income tax is as follows:
(b) Share-based payment expense of $11 related to cost of services, $15 related to sales and marketing, $10 related to engineering, design and development and $15 related to general and administrative has been excluded.
|
Business & Basis of Presentation (Details) subscriber in Millions |
3 Months Ended |
---|---|
Mar. 31, 2022
segment
subscriber
satellite_radio_system
| |
Related Party Transaction [Line Items] | |
Number of reportable segments | segment | 2 |
Number of satellite radio systems | satellite_radio_system | 2 |
Pandora | |
Related Party Transaction [Line Items] | |
Number of subscribers | 6.3 |
Sirius XM Canada | Equity Method Investee | |
Related Party Transaction [Line Items] | |
Equity method investment, equity interest percentage | 70.00% |
Equity method investment, voting interest percentage | 33.00% |
Liberty Media | Management | Common Stock | |
Related Party Transaction [Line Items] | |
Related party ownership percentage | 81.00% |
Sirius XM | |
Related Party Transaction [Line Items] | |
Number of subscribers | 34.0 |
Summary of Significant Accounting Policies - Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Debt | $ 9,581 | $ 9,052 |
Level 1 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Debt | 0 | 0 |
Level 2 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Debt | 9,581 | 9,052 |
Level 3 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Debt | $ 0 | $ 0 |
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Accounting Policies [Abstract] | |||
Accumulated other comprehensive income, net of tax | $ 23 | $ 15 | |
Foreign currency translation adjustment income (loss), net of tax | 8 | $ 5 | |
Foreign currency translation adjustment, tax expense (benefit) | $ 3 | $ 1 |
Summary of Significant Accounting Policies - Recent Adopted Accounting Policies (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Jan. 01, 2022 |
Dec. 31, 2021 |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders’ (deficit) equity | $ (3,587) | $ (2,625) | $ (2,603) | $ (2,285) | |
Cumulative Effect, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders’ (deficit) equity | $ (14) | ||||
Accumulated Deficit | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders’ (deficit) equity | (3,612) | (2,636) | $ (2,614) | $ (2,285) | |
Accumulated Deficit | Cumulative Effect, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders’ (deficit) equity | (14) | ||||
1.75% Senior Notes Due 2023 | Senior Notes | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Carrying value | $ 193 | $ 177 | |||
Stated interest rate (as a percent) | 1.75% | ||||
1.75% Senior Notes Due 2023 | Senior Notes | Pandora | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stated interest rate (as a percent) | 1.75% | ||||
1.75% Senior Notes Due 2023 | Senior Notes | Cumulative Effect, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Carrying value | $ 14 |
Acquisitions (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Jan. 12, 2022 |
Apr. 23, 2021 |
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Business Acquisition [Line Items] | ||||
Goodwill | $ 3,180 | $ 3,151 | ||
Acquisition related costs | $ 0 | |||
Series of Individually Immaterial Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire businesses, gross | $ 44 | $ 20 | ||
Goodwill | 29 | 23 | ||
Other definite-lived intangible assets | $ 19 | |||
Total consideration for Pandora Acquisition | 27 | |||
Consideration transferred, liabilities incurred | 3 | |||
Assets acquired and liabilities assumed other assets | 5 | |||
Series of Individually Immaterial Business Acquisitions | Restricted Stock Units (RSUs) | ||||
Business Acquisition [Line Items] | ||||
Equity interest issued or issuable, value assigned | $ 4 |
Restructuring Costs (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Restructuring and Related Activities [Abstract] | ||
Restructuring costs | $ 0 | |
Impairment charges | $ 18 | |
Accrued restructuring expense | 6 | |
Write-off of leasehold improvements | $ 1 | |
Restructuring costs and asset impairment charges | $ 25 |
Earnings per Share - Additional Information (Details) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Earnings Per Share [Abstract] | ||
Participating securities (in shares) | 0 | 0 |
Anti-dilutive common stock equivalents (in shares) | 84,000,000 | 97,000,000 |
Earnings per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Numerator: | ||
Net Income available to common stockholders for basic net income per common share | $ 309 | $ 219 |
Effect of interest on assumed conversions of convertible notes, net of tax | 2 | 2 |
Net Income available to common stockholders for dilutive net income per common share | $ 311 | $ 221 |
Denominator: | ||
Weighted average common shares outstanding for basic net income per common share (in shares) | 3,948 | 4,137 |
Weighted average impact of assumed convertible notes (in shares) | 31 | 30 |
Weighted average impact of dilutive equity instruments (in shares) | 45 | 55 |
Weighted average shares for diluted net income per common share (in shares) | 4,024 | 4,222 |
Net income per common share: | ||
Basic (in USD per share) | $ 0.08 | $ 0.05 |
Diluted (in USD per share) | $ 0.08 | $ 0.05 |
Receivables, net (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Receivables [Abstract] | ||
Gross customer accounts receivable | $ 552 | $ 636 |
Allowance for doubtful accounts | (11) | (10) |
Customer accounts receivable, net | 541 | 626 |
Receivables from distributors | 73 | 62 |
Other receivables | 36 | 34 |
Total receivables, net | $ 650 | $ 722 |
Goodwill (Details) |
3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Mar. 31, 2022
USD ($)
reporting_unit
|
Mar. 31, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
Jan. 12, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
Apr. 23, 2021
USD ($)
|
Dec. 31, 2008
USD ($)
|
|
Business Acquisition [Line Items] | |||||||
Number of reporting units | reporting_unit | 2 | ||||||
Goodwill | $ 3,180,000,000 | $ 3,151,000,000 | |||||
Goodwill, impairment loss | 0 | $ 0 | |||||
Accumulated impairment of goodwill since the merger | 5,722,000,000 | ||||||
Series of Individually Immaterial Business Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 29,000,000 | $ 23,000,000 | |||||
Sirius XM | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 2,290,000,000 | 2,290,000,000 | |||||
Accumulated impairment of goodwill since the merger | $ 4,766,000,000 | ||||||
Pandora and Off-platform | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 890,000,000 | $ 861,000,000 | |||||
Goodwill, impairment loss | $ 956,000,000 | ||||||
Goodwill acquired | $ 29,000,000 |
Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Feb. 01, 2019 |
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Definite life intangible assets: | |||
Accumulated Amortization | $ (608) | $ (569) | |
Total definite life intangible assets, net | 521 | ||
Gross Carrying Value | |||
Total intangible assets | 3,774 | 3,755 | |
Net Carrying Value | |||
Total intangible assets | 3,166 | 3,186 | |
FCC licenses | |||
Indefinite life intangible assets: | |||
Gross Carrying Value | 2,084 | 2,084 | |
Net Carrying Value | 2,084 | 2,084 | |
Trademarks | |||
Indefinite life intangible assets: | |||
Gross Carrying Value | 250 | 250 | |
Net Carrying Value | 250 | 250 | |
Pandora and Off-platform | Trademarks | |||
Indefinite life intangible assets: | |||
Gross Carrying Value | 311 | 311 | |
Net Carrying Value | $ 311 | 311 | |
OEM relationships | |||
Definite life intangible assets: | |||
Weighted average useful lives (years) | 15 years | ||
Gross Carrying Value | $ 220 | 220 | |
Accumulated Amortization | (123) | (120) | |
Total definite life intangible assets, net | $ 97 | 100 | |
Licensing agreements | |||
Definite life intangible assets: | |||
Weighted average useful lives (years) | 12 years | ||
Gross Carrying Value | $ 45 | 45 | |
Accumulated Amortization | (45) | (45) | |
Total definite life intangible assets, net | $ 0 | 0 | |
Software and technology | |||
Definite life intangible assets: | |||
Weighted average useful lives (years) | 7 years | ||
Gross Carrying Value | $ 31 | 31 | |
Accumulated Amortization | (19) | (19) | |
Total definite life intangible assets, net | 12 | 12 | |
Software and technology | Pandora and Off-platform | |||
Definite life intangible assets: | |||
Weighted average useful lives (years) | 5 years | ||
Gross Carrying Value | 391 | 373 | |
Accumulated Amortization | (241) | (221) | |
Total definite life intangible assets, net | 150 | 152 | |
Customer relationships | Pandora and Off-platform | |||
Definite life intangible assets: | |||
Weighted average useful lives (years) | 8 years | ||
Gross Carrying Value | 442 | 441 | |
Accumulated Amortization | (180) | (164) | |
Total definite life intangible assets, net | $ 262 | $ 277 |
Intangible Assets - Indefinite Life Intangible Assets (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 0 | $ 0 |
Intangible Assets - Definite Life Intangible Assets (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Indefinite life intangible assets: | ||
Amortization of intangible assets | $ 39 | $ 38 |
Retired | ||
Indefinite life intangible assets: | ||
Intangible assets | $ 0 | $ 0 |
Intangible Assets - Expected Amortization Expense for Each of the Fiscal Years (Details) $ in Millions |
Mar. 31, 2022
USD ($)
|
---|---|
Expected amortization expense for each of the fiscal years | |
2022 (remaining) | $ 117 |
2023 | 144 |
2024 | 77 |
2025 | 72 |
2026 | 71 |
Thereafter | 40 |
Total definite life intangible assets, net | $ 521 |
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 4,293 | $ 4,210 |
Accumulated depreciation | (2,835) | (2,760) |
Property and equipment, net | 1,458 | 1,450 |
Satellite system | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,841 | 1,841 |
Terrestrial repeater network | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 116 | 116 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 109 | 109 |
Broadcast studio equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 122 | 119 |
Capitalized software and hardware | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,585 | 1,591 |
Satellite telemetry, tracking and control facilities | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 68 | 67 |
Furniture, fixtures, equipment and other | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 90 | 92 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 38 | 38 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 82 | 81 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 242 | $ 156 |
Property and Equipment - Schedule of Construction in Progress (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Construction in progress | $ 242 | $ 156 |
Satellite system | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | 86 | 64 |
Terrestrial repeater network | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | 2 | 1 |
Capitalized software and hardware | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | 139 | 78 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | $ 15 | $ 13 |
Property and Equipment - Additional Information (Details) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2022
USD ($)
satellite
|
Mar. 31, 2021
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense on property and equipment | $ 96 | $ 94 | |
Disposal of property and equipment | 22 | 5 | |
Net book value | 1 | ||
Capitalized interest costs | 1 | 3 | |
Capitalized stock-based compensation costs | $ 5 | 4 | |
Number of owned satellites | satellite | 6 | ||
Impairment charges | 18 | ||
Satellite system | |||
Property, Plant and Equipment [Line Items] | |||
Impairment charges | $ 220 | ||
Aggregate coverage under those insurance policies | $ 225 |
Leases - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Lessee, Lease, Description [Line Items] | ||
Impairment charges | $ 18 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease obligations, term (years) | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease obligations, term (years) | 20 years | |
Operating lease, renewal term (years) | 5 years | |
Finance lease, renewal term (years) | 5 years | |
Option to terminate lease, term of option (years) | 1 year |
Leases - Components of Lease Expense (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Leases [Abstract] | ||
Operating lease cost | $ 13 | $ 21 |
Sublease income | (1) | (1) |
Total lease cost | $ 12 | $ 20 |
Related Party Transactions - Additional Information (Details) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Mar. 15, 2022
USD ($)
|
Mar. 31, 2022
USD ($)
director
executive
$ / shares
shares
|
Mar. 31, 2021
USD ($)
|
Mar. 31, 2022
$ / shares
|
Dec. 31, 2021
USD ($)
|
Feb. 29, 2020
board_member
|
May 25, 2017
USD ($)
|
|
Related Party Transaction [Line Items] | |||||||
Preferred stock liquidation preference per share (in CAD per share) | $ / shares | $ 0.001 | ||||||
Income (loss) from equity method investments | $ 3 | $ (1) | |||||
SoundCloud Holdings, LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Number of board members | board_member | 9 | ||||||
SoundCloud Holdings, LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Revenue share expense | 13 | 13 | |||||
Related party liabilities | $ 20 | $ 24 | |||||
Management | Executives | Liberty Media | |||||||
Related Party Transaction [Line Items] | |||||||
Number of related party members on board of directors | executive | 3 | ||||||
Management | Director | Liberty Media | |||||||
Related Party Transaction [Line Items] | |||||||
Number of related party members on board of directors | director | 1 | ||||||
Equity Method Investee | |||||||
Related Party Transaction [Line Items] | |||||||
Income (loss) from equity method investments | $ 1 | 1 | |||||
Equity Method Investee | Sirius XM Canada | |||||||
Related Party Transaction [Line Items] | |||||||
Equity method investment, equity interest percentage | 70.00% | ||||||
Equity method investment, voting interest percentage | 33.00% | ||||||
Number of preferred shares owned (in shares) | shares | 591 | ||||||
Preferred stock liquidation preference per share (in CAD per share) | $ / shares | $ 1 | ||||||
Notes receivable, related parties | $ 8 | 120 | $ 131 | ||||
Note receivable, forgiveness | $ 113 | ||||||
Equity method investments | 460 | $ 334 | |||||
Equity method investment, dividends, including reduction of investment | 1 | 1 | |||||
Revenue from related parties | $ 27 | $ 25 | |||||
Equity Method Investee | SoundCloud Holdings, LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Number of board members appointed | board_member | 2 | ||||||
Common Stock | Management | Liberty Media | |||||||
Related Party Transaction [Line Items] | |||||||
Related party ownership percentage | 81.00% |
Debt - Schedule of Long-term Debt Instruments (Details) - USD ($) |
3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Jan. 01, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Aug. 31, 2021 |
Jun. 21, 2021 |
Mar. 31, 2021 |
Dec. 31, 2020 |
Feb. 01, 2019 |
|
Debt | ||||||||
Total Debt | $ 9,844,000,000 | $ 8,845,000,000 | ||||||
Less: total current maturities | 0 | 0 | ||||||
Less: total deferred financing costs | 12,000,000 | 13,000,000 | ||||||
Total long-term debt | 9,832,000,000 | 8,832,000,000 | ||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2020-06 [Member] | |||||||
Stockholders’ (deficit) equity | (3,587,000,000) | (2,625,000,000) | $ (2,603,000,000) | $ (2,285,000,000) | ||||
Cumulative Effect, Adjustment | ||||||||
Debt | ||||||||
Debt discount decrease | $ 14,000,000 | |||||||
Stockholders’ (deficit) equity | (14,000,000) | |||||||
Accumulated Deficit | ||||||||
Debt | ||||||||
Stockholders’ (deficit) equity | (3,612,000,000) | (2,636,000,000) | $ (2,614,000,000) | $ (2,285,000,000) | ||||
Accumulated Deficit | Cumulative Effect, Adjustment | ||||||||
Debt | ||||||||
Stockholders’ (deficit) equity | (14,000,000) | |||||||
Senior Secured Revolving Credit Facility | ||||||||
Debt | ||||||||
Principal amount | 981,000,000 | |||||||
Carrying value | $ 981,000,000 | 0 | ||||||
Credit facility, unused capacity, commitment fee percentage | 0.25% | |||||||
Senior Notes | 1.75% Senior Notes Due 2023 | ||||||||
Debt | ||||||||
Stated interest rate (as a percent) | 1.75% | |||||||
Principal amount | $ 193,000,000 | |||||||
Carrying value | $ 193,000,000 | 177,000,000 | ||||||
Senior Notes | 1.75% Senior Notes Due 2023 | Cumulative Effect, Adjustment | ||||||||
Debt | ||||||||
Carrying value | $ 14,000,000 | |||||||
Senior Notes | 1.75% Senior Notes Due 2023 | Pandora | ||||||||
Debt | ||||||||
Stated interest rate (as a percent) | 1.75% | |||||||
Short-term debt | $ 193,000,000 | |||||||
Senior Notes | 3.125% Senior Notes Due 2026 | ||||||||
Debt | ||||||||
Stated interest rate (as a percent) | 3.125% | |||||||
Principal amount | $ 1,000,000,000 | |||||||
Carrying value | $ 990,000,000 | 990,000,000 | ||||||
Senior Notes | 5.00% Senior Notes Due 2027 | ||||||||
Debt | ||||||||
Stated interest rate (as a percent) | 5.00% | |||||||
Principal amount | $ 1,500,000,000 | |||||||
Carrying value | 1,491,000,000 | 1,491,000,000 | ||||||
Senior Notes | 4.00% Senior Notes Due 2028 | ||||||||
Debt | ||||||||
Stated interest rate (as a percent) | 4.00% | |||||||
Principal amount | 2,000,000,000 | |||||||
Carrying value | $ 1,980,000,000 | 1,979,000,000 | ||||||
Senior Notes | 5.500% Senior Notes Due 2029 | ||||||||
Debt | ||||||||
Stated interest rate (as a percent) | 5.50% | |||||||
Principal amount | $ 1,250,000,000 | |||||||
Carrying value | $ 1,239,000,000 | 1,239,000,000 | ||||||
Senior Notes | 4.125% Senior Notes Due 2030 | ||||||||
Debt | ||||||||
Stated interest rate (as a percent) | 4.125% | |||||||
Principal amount | $ 1,500,000,000 | |||||||
Carrying value | $ 1,486,000,000 | 1,485,000,000 | ||||||
Senior Notes | 3.875% Senior Notes Due 2031 | ||||||||
Debt | ||||||||
Stated interest rate (as a percent) | 3.875% | |||||||
Principal amount | $ 1,500,000,000 | |||||||
Carrying value | $ 1,484,000,000 | $ 1,484,000,000 | ||||||
Line of Credit | Senior Secured Revolving Credit Facility | ||||||||
Debt | ||||||||
Line of credit facility | $ 1,750,000,000 |
Debt - Additional Information (Details) |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
1.75% Senior Notes Due 2023 | Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate (as a percent) | 1.75% |
1.75% Senior Notes Due 2023 | Pandora | Senior Notes | |
Debt Instrument [Line Items] | |
Stated interest rate (as a percent) | 1.75% |
Shares issued (shares per thousand dollars) | 0.1610187 |
Senior Secured Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Maximum consolidated leverage ratio | 5.0 |
Minimum consolidated leverage ratio | 1.0 |
Stockholders' Equity - Common Stock (Details) - $ / shares |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Equity [Abstract] | ||
Common stock, par value ( in USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 9,000,000,000 | 9,000,000,000 |
Common stock issued (in shares) | 3,940,000,000 | 3,968,000,000 |
Common stock outstanding (in shares) | 3,940,000,000 | 3,967,000,000 |
Common stock reserved for issuance (in shares) | 243,000,000 |
Stockholders' Equity - Special Dividend (Details) - USD ($) $ / shares in Units, $ in Millions |
Jan. 31, 2022 |
Jan. 26, 2022 |
---|---|---|
Equity [Abstract] | ||
Common stock, dividends, declared (in dollars per share) | $ 0.25 | $ 0.0219615 |
Dividends | $ 987 | $ 86 |
Stockholders' Equity - Quarterly Dividends (Details) - USD ($) $ / shares in Units, $ in Millions |
Jan. 31, 2022 |
Jan. 26, 2022 |
---|---|---|
Equity [Abstract] | ||
Common stock, dividends, declared (in dollars per share) | $ 0.25 | $ 0.0219615 |
Total Amount | $ 987 | $ 86 |
Stockholders' Equity - Stock Repurchase Program (Details) shares in Millions |
Mar. 31, 2022
USD ($)
shares
|
---|---|
Class of Stock [Line Items] | |
Number of shares repurchased (in shares) | shares | 3,591 |
Aggregate cost for shares repurchased | $ 16,119,000,000 |
Remaining amount authorized under the stock repurchase program | 1,881,000,000 |
Common Stock | |
Class of Stock [Line Items] | |
Stock repurchase program, aggregate authorized amount | $ 18,000,000,000 |
Stockholders' Equity - Schedule of Repurchase Agreements (Details) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Shares Repurchase Activity [Line Items] | |||
Amount | $ 200 | $ 516 | |
Treasury stock | $ 2 | $ 8 | |
Open Market Repurchases | |||
Shares Repurchase Activity [Line Items] | |||
Shares (in shares) | 32 | 85 | |
Amount | $ 200 | $ 516 |
Stockholders' Equity - Preferred Stock (Details) - $ / shares |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Equity [Abstract] | ||
Preferred stock, par value (in USD per share) | $ 0.001 | |
Undesignated preferred stock authorized (in shares) | 50,000,000 | |
Preferred stock liquidation preference per share (in USD per share) | $ 0.001 | |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Benefit Plans - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment expense | $ 45 | $ 51 | |
Share-based payment expense | $ 45 | 51 | |
Employees and Non Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value of options ( in USD per share) | $ 1.50 | ||
Options exercised in period, intrinsic value | $ 16 | 85 | |
Exercise of stock options and vesting of restricted stock units (in shares) | 1 | ||
Share-based payment expense | $ 9 | 11 | |
Restricted Stock Units (RSUs) and Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment expense | 36 | 40 | |
Restricted stock units vested, intrinsic value | $ 46 | $ 39 | |
Granted (in shares) | 12 | ||
Restricted stock units granted (in shares) | 4 | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise of stock options and vesting of restricted stock units (in shares) | 4 | ||
Performance-based Share Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 5 | ||
Restricted Stock Units Rsu And Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation costs | $ 463 | $ 455 | |
Weighted-average service period (in years) | 2 years 4 months 24 days |
Benefit Plans - 2015 Long-Term Stock Incentive Plan (Details) - 2015 Long-Term Stock Incentive Plan shares in Millions |
3 Months Ended |
---|---|
Mar. 31, 2022
anniversary
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock conversion to common stock | 1 |
Common stock available for future grants (in shares) | shares | 124 |
Employees and Non Employee Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock option expiration period | 10 years |
Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of award vesting anniversaries | anniversary | 3 |
Award vesting percentage | 25.00% |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting percentage | 25.00% |
Performance-based Share Awards | Share-based Payment Arrangement, Tranche One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 2 years |
Award vesting percentage | 25.00% |
Performance-based Share Awards | Share-based Payment Arrangement, Tranche Two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Award vesting percentage | 25.00% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 4 years |
Benefit Plans - Other Plans (Details) |
3 Months Ended |
---|---|
Mar. 31, 2022
plan
| |
Retirement Benefits [Abstract] | |
Number of other share-based benefit plans | 6 |
Benefit Plans - Fair Value of Options Granted (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Retirement Benefits [Abstract] | ||
Risk-free interest rate | 1.40% | 0.60% |
Expected life of options — years | 3 years 7 months 6 days | 6 years 1 month 6 days |
Expected stock price volatility | 32.00% | 33.00% |
Expected dividend yield | 1.30% | 1.00% |
Benefit Plans - Stock Options Activity Under Share-Based Payment Plans (Details) - Employees and Non Employee Stock Option - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Feb. 25, 2022 |
Mar. 31, 2022 |
|
Options | ||
Outstanding as of beginning of period (in shares) | 161 | |
Granted (in shares) | 9 | |
Exercised (in shares) | (8) | |
Forfeited, cancelled or expired (in shares) | (1) | |
Outstanding as of end of period (in shares) | 161 | |
Exercisable (in shares) | 100 | |
Weighted Average Exercise Price Per Share | ||
Outstanding as of beginning of period ( in USD per share) | $ 5.23 | |
Granted ( in USD per share) | 6.44 | |
Exercised ( in USD per share) | 4.60 | |
Forfeited, cancelled or expired ( in USD per share) | 6.28 | |
Outstanding as of end of period ( in USD per share) | 5.33 | |
Exercisable ( in USD per share) | $ 4.88 | |
Weighted-Average Remaining Contractual Term (Years) | ||
Outstanding | 5 years 9 months 3 days | |
Exercisable | 4 years 10 months 17 days | |
Aggregate Intrinsic Value | ||
Outstanding | $ 210 | |
Exercisable | $ 176 | |
Decrease in weighted average exercise price (in dollars per share) | $ 0.25 |
Benefit Plans - Summary of Restricted Stock Unit and Stock Award Activity (Details) - Restricted Stock Units (RSUs) and Performance Shares shares in Millions |
3 Months Ended |
---|---|
Mar. 31, 2022
$ / shares
shares
| |
Shares | |
Nonvested as of beginning of period (in shares) | shares | 80 |
Granted (in shares) | shares | 12 |
Vested (in shares) | shares | (7) |
Forfeited (in shares) | shares | (2) |
Nonvested as of end of period (in shares) | shares | 83 |
Grant Date Fair Value Per Share | |
Nonvested as of beginning of period ( in USD per share) | $ / shares | $ 6.22 |
Granted ( in USD per share) | $ / shares | 6.93 |
Vested ( in USD per share) | $ / shares | 6.06 |
Forfeited ( in USD per share) | $ / shares | 6.31 |
Nonvested as of end of period ( in USD per share) | $ / shares | $ 6.31 |
Benefit Plans - 401(k) Savings Plan (Details) - Sirius XM Savings Plan - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Defined Benefit Plan Disclosure [Line Items] | ||
Minimum of employee contributions of pre-tax eligible earnings to company 401(k) savings plan | 1.00% | |
Maximum of employee contributions of pre-tax eligible earnings to company 401(k) savings plan | 50.00% | |
Percent of Company match of employee's voluntary contributions | 50.00% | |
Percent of employee's pre-tax salary | 6.00% | |
Maximum annual contributions per employee, percent | 3.00% | |
Vesting percentage of employer contributions for each year of employment | 33.33% | |
Savings plan, fully vested period | 3 years | |
Recognized cost | $ 5 | $ 5 |
Benefit Plans - Sirius XM Holdings Inc. Deferred Compensation Plan (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Retirement Benefits [Abstract] | |||
Deferred compensation contributions | $ 0 | $ 3 | |
Fair value of investment assets related to deferred compensation plan | 53 | $ 56 | |
Gains (losses) on investments | $ (3) | $ 1 |
Commitments and Contingencies - Expected Contractual Cash Commitments (Details) $ in Millions |
Mar. 31, 2022
USD ($)
|
---|---|
Expected contractual cash commitments | |
2022 | $ 926 |
2023 | 1,693 |
2024 | 878 |
2025 | 631 |
2026 | 2,486 |
Thereafter | 9,006 |
Total | 15,620 |
Uncertain tax positions are recognized in other long-term liabilities | 33 |
Debt obligations | |
Expected contractual cash commitments | |
2022 | 0 |
2023 | 193 |
2024 | 0 |
2025 | 0 |
2026 | 1,981 |
Thereafter | 7,750 |
Total | 9,924 |
Cash interest payments | |
Expected contractual cash commitments | |
2022 | 209 |
2023 | 402 |
2024 | 398 |
2025 | 398 |
2026 | 391 |
Thereafter | 979 |
Total | 2,777 |
Satellite and transmission | |
Expected contractual cash commitments | |
2022 | 85 |
2023 | 161 |
2024 | 109 |
2025 | 27 |
2026 | 1 |
Thereafter | 9 |
Total | 392 |
Programming and content | |
Expected contractual cash commitments | |
2022 | 352 |
2023 | 411 |
2024 | 261 |
2025 | 139 |
2026 | 60 |
Thereafter | 148 |
Total | 1,371 |
Sales and marketing | |
Expected contractual cash commitments | |
2022 | 27 |
2023 | 35 |
2024 | 4 |
2025 | 3 |
2026 | 3 |
Thereafter | 3 |
Total | 75 |
Satellite incentive payments | |
Expected contractual cash commitments | |
2022 | 5 |
2023 | 7 |
2024 | 8 |
2025 | 7 |
2026 | 4 |
Thereafter | 19 |
Total | 50 |
Operating lease obligations | |
Expected contractual cash commitments | |
2022 | 49 |
2023 | 66 |
2024 | 51 |
2025 | 48 |
2026 | 45 |
Thereafter | 96 |
Total | 355 |
Royalties, minimum guarantees and other | |
Expected contractual cash commitments | |
2022 | 199 |
2023 | 418 |
2024 | 47 |
2025 | 9 |
2026 | 1 |
Thereafter | 2 |
Total | $ 676 |
Commitments and Contingencies - Additional Information (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2022
USD ($)
satellite
| |
Loss Contingencies [Line Items] | |
Number of replacement satellites | satellite | 2 |
Royalty Arrangement | |
Loss Contingencies [Line Items] | |
Prepayments made of minimum guarantee payments | $ 7 |
Future minimum guarantee payments | 328 |
Other commitment, to be paid, year one | $ 11 |
Minimum | |
Loss Contingencies [Line Items] | |
Operating lease obligations, term (years) | 1 year |
Maximum | |
Loss Contingencies [Line Items] | |
Operating lease obligations, term (years) | 15 years |
XM-5, FM-5, FM-6, XM-3, and XM-4 | |
Loss Contingencies [Line Items] | |
Operating performance over design life | 15 years |
XM-4 | |
Loss Contingencies [Line Items] | |
Period beyond expected operating performance of design life for XM-4 | 5 years |
XM-4 | Maximum | |
Loss Contingencies [Line Items] | |
Additional payments required if XM-4 continues to operate above baseline specifications | $ 10 |
Income Taxes - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Income Tax Contingency [Line Items] | ||||
Income tax (expense) benefit | $ (100) | $ 62 | ||
Capital contribution liability | $ 13 | |||
Effective income tax rate percent | 24.40% | (39.50%) | ||
Audit settlement | $ 95 | |||
Valuation allowance | $ 81 | $ 83 | ||
Forecast | ||||
Income Tax Contingency [Line Items] | ||||
Effective income tax rate percent | 25.00% |
Segments and Geographic Information - Additional Information (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022
USD ($)
segment
|
Mar. 31, 2021
USD ($)
|
|
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 2 | |
Revenue | $ 2,186 | $ 2,058 |
Share-based payment expense | 45 | 51 |
Cost of Sales | ||
Segment Reporting Information [Line Items] | ||
Share-based payment expense | 10 | 11 |
Sales and Marketing | ||
Segment Reporting Information [Line Items] | ||
Share-based payment expense | 13 | 15 |
Research and Development Expense | ||
Segment Reporting Information [Line Items] | ||
Share-based payment expense | 8 | 10 |
General and Administrative Expense | ||
Segment Reporting Information [Line Items] | ||
Share-based payment expense | 14 | 15 |
Advertising revenue | ||
Segment Reporting Information [Line Items] | ||
Revenue | 383 | 354 |
Advertising revenue | Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 1 | $ 1 |
Segments and Geographic Information - Revenue and Profit by Segment (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Segment Reporting Information [Line Items] | ||
Revenue | $ 2,186 | $ 2,058 |
Cost of services | (979) | (928) |
Segment gross profit | 1,207 | 1,130 |
Subscriber revenue | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,713 | 1,611 |
Advertising revenue | ||
Segment Reporting Information [Line Items] | ||
Revenue | 383 | 354 |
Equipment revenue | ||
Segment Reporting Information [Line Items] | ||
Revenue | 53 | 57 |
Other revenue | ||
Segment Reporting Information [Line Items] | ||
Revenue | 37 | 36 |
Sirius XM | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,719 | 1,616 |
Cost of services | (649) | (623) |
Segment gross profit | 1,070 | 993 |
Sirius XM | Subscriber revenue | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,582 | 1,481 |
Sirius XM | Advertising revenue | ||
Segment Reporting Information [Line Items] | ||
Revenue | 47 | 42 |
Sirius XM | Equipment revenue | ||
Segment Reporting Information [Line Items] | ||
Revenue | 53 | 57 |
Sirius XM | Other revenue | ||
Segment Reporting Information [Line Items] | ||
Revenue | 37 | 36 |
Pandora and Off-platform | ||
Segment Reporting Information [Line Items] | ||
Revenue | 467 | 442 |
Cost of services | (330) | (305) |
Segment gross profit | 137 | 137 |
Pandora and Off-platform | Subscriber revenue | ||
Segment Reporting Information [Line Items] | ||
Revenue | 131 | 130 |
Pandora and Off-platform | Advertising revenue | ||
Segment Reporting Information [Line Items] | ||
Revenue | 336 | 312 |
Pandora and Off-platform | Equipment revenue | ||
Segment Reporting Information [Line Items] | ||
Revenue | 0 | 0 |
Pandora and Off-platform | Other revenue | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 0 | $ 0 |
Segments and Geographic Information - Gross Profit to Consolidated Income Reconciliation (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment gross profit | $ 1,207 | $ 1,130 |
Subscriber acquisition costs | (90) | (86) |
Sales and marketing | (272) | (217) |
Engineering, design and development | (67) | (64) |
General and administrative | (123) | (121) |
Depreciation and amortization | (135) | (132) |
Share-based payment expense | (45) | (51) |
Impairment, restructuring and acquisition costs | 0 | (245) |
Income before income taxes | 409 | 157 |
Segment Reconciling Items | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Subscriber acquisition costs | (90) | (86) |
Sales and marketing | (259) | (202) |
Engineering, design and development | (59) | (54) |
General and administrative | (109) | (106) |
Depreciation and amortization | (135) | (132) |
Share-based payment expense | (45) | (51) |
Impairment, restructuring and acquisition costs | (245) | |
Total other (expense) income | $ (101) | $ (97) |
Subsequent Events (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
1 Months Ended | ||||
---|---|---|---|---|---|
Apr. 19, 2022 |
Jan. 31, 2022 |
Jan. 26, 2022 |
Apr. 26, 2022 |
Apr. 11, 2022 |
|
Subsequent Event [Line Items] | |||||
Common stock, dividends, declared (in dollars per share) | $ 0.25 | $ 0.0219615 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Common stock, dividends, declared (in dollars per share) | $ 0.0219615 | ||||
Subsequent Event | Secured Debt | Line of Credit | |||||
Subsequent Event [Line Items] | |||||
Line of credit facility | $ 500 | ||||
Common Stock | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Stock repurchased during period (in shares) | 65 | ||||
Stock repurchased during period | $ 409 |