Sirius XM Holdings Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

Property and Equipment

3 Months Ended

Mar. 31, 2017

Property, Plant and Equipment [Abstract]

Property and equipment, net, consists of the following:



	March 31, 2017			December 31, 2016
Satellite system	$	1,586,794		$	1,586,794
Terrestrial repeater network	128,325			127,854
Leasehold improvements	54,164			53,898
Broadcast studio equipment	86,849			84,697
Capitalized software and hardware	570,384			558,101
Satellite telemetry, tracking and control facilities	64,822			77,290
Furniture, fixtures, equipment and other	91,209			90,214
Land	38,411			38,411
Building	61,684			61,597
Construction in progress	201,992			144,954
Total property and equipment	2,884,634			2,823,810
Accumulated depreciation and amortization	(1,476,482		)	(1,425,117		)
Property and equipment, net	$	1,408,152		$	1,398,693

Construction in progress consists of the following:



	March 31, 2017		December 31, 2016
Satellite system	$	80,359	$	43,977
Terrestrial repeater network	1,649		1,139
Capitalized software	102,687		82,204
Other	17,297		17,634
Construction in progress	$	201,992	$	144,954

Depreciation and amortization expense on property and equipment was $65,176 and $55,187 for the three months ended March 31, 2017 and 2016, respectively. We retired property and equipment of $13,811 and $3,160 during the three months ended March 31, 2017 and 2016, respectively.

We capitalize a portion of the interest on funds borrowed to finance the construction and launch of our satellites and launch vehicles. Capitalized interest is recorded as part of the asset’s cost and depreciated over the satellite’s useful life. Capitalized interest costs for the three months ended March 31, 2017 was $718, which related to the construction of our SXM-7 and SXM-8 satellites. We did not capitalize any interest costs for the three months ended March 31, 2016.

Satellites

As of March 31, 2017, we owned a fleet of five satellites. The chart below provides certain information on our satellites as of March 31, 2017:



Satellite Description	Year Delivered	Estimated End of Depreciable Life
SIRIUS FM-5	2009	2024
SIRIUS FM-6	2013	2028
XM-3	2005	2020
XM-4	2006	2021
XM-5	2010	2025