Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v3.10.0.1
Property and Equipment
 6 Months Ended
Jun. 30, 2018
Property, Plant and Equipment [Abstract]  
Property and Equipment
Property and Equipment
Property and equipment, net, consists of the following:
 
June 30, 2018
 
December 31, 2017
Satellite system
$
1,586,794

 
$
1,586,794

Terrestrial repeater network
124,904

 
123,254

Leasehold improvements
59,477

 
57,635

Broadcast studio equipment
101,338

 
96,582

Capitalized software and hardware
719,433

 
639,516

Satellite telemetry, tracking and control facilities
74,201

 
69,147

Furniture, fixtures, equipment and other
98,849

 
96,965

Land
38,411

 
38,411

Building
61,844

 
61,824

Construction in progress
347,196

 
301,153

Total property and equipment
3,212,447

 
3,071,281

Accumulated depreciation and amortization
(1,743,517
)
 
(1,608,515
)
Property and equipment, net
$
1,468,930

 
$
1,462,766


Construction in progress consists of the following:
 
June 30, 2018
 
December 31, 2017
Satellite system
$
231,047

 
$
183,243

Terrestrial repeater network
2,972

 
2,515

Capitalized software and hardware
95,555

 
94,456

Other
17,622

 
20,939

Construction in progress
$
347,196

 
$
301,153


Depreciation and amortization expense on property and equipment was $68,760 and $61,421 for the three months ended June 30, 2018 and 2017, respectively, and $135,110 and $126,597 for the six months ended June 30, 2018 and 2017, respectively.  We retired property and equipment of $14,760 during the six months ended June 30, 2017. There were no retirements of property and equipment during the six months ended June 30, 2018.
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 $2,901 and $1,005 for the three months ended June 30, 2018 and 2017, respectively, and $5,155 and $1,723 for the six months ended June 30, 2018 and 2017, respectively, which related to the construction of our SXM-7 and SXM-8 satellites.
Satellites
As of June 30, 2018, we owned a fleet of five satellites.  The chart below provides certain information on our satellites as of June 30, 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