Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v3.8.0.1
Property and Equipment
3 Months Ended
Mar. 31, 2018
Property, Plant and Equipment [Abstract]  
Property and Equipment
Property and Equipment
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