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, 2018

Property, Plant and Equipment [Abstract]

Property and equipment, net, consists of the following:



	March 31, 2018			December 31, 2017
Satellite system	$	1,586,794		$	1,586,794
Terrestrial repeater network	124,620			123,254
Leasehold improvements	59,184			57,635
Broadcast studio equipment	100,240			96,582
Capitalized software and hardware	692,594			639,516
Satellite telemetry, tracking and control facilities	71,336			69,147
Furniture, fixtures, equipment and other	98,052			96,965
Land	38,411			38,411
Building	61,823			61,824
Construction in progress	306,205			301,153
Total property and equipment	3,139,259			3,071,281
Accumulated depreciation and amortization	(1,674,865		)	(1,608,515		)
Property and equipment, net	$	1,464,394		$	1,462,766

Construction in progress consists of the following:



	March 31, 2018		December 31, 2017
Satellite system	$	206,757	$	183,243
Terrestrial repeater network	2,689		2,515
Capitalized software and hardware	78,641		94,456
Other	18,118		20,939
Construction in progress	$	306,205	$	301,153

Depreciation and amortization expense on property and equipment was $66,350 and $65,176 for the three months ended March 31, 2018 and 2017, respectively. We retired property and equipment of $13,811 during the three months ended March 31, 2017. There were no retirements of property and equipment during the three months ended March 31, 2018.

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 were $2,254 and $718 for the three months ended March 31, 2018 and 2017, respectively, which related to the construction of our SXM-7 and SXM-8 satellites.

Satellites

As of March 31, 2018, we owned a fleet of five satellites. The chart below provides certain information on our satellites as of March 31, 2018:



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