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, 2020

Property, Plant and Equipment [Abstract]

Property and equipment, net, consists of the following:



	March 31, 2020			December 31, 2019
Satellite system	$	1,587		$	1,587
Terrestrial repeater network	100			100
Leasehold improvements	106			105
Broadcast studio equipment	138			137
Capitalized software and hardware	1,083			1,086
Satellite telemetry, tracking and control facilities	88			87
Furniture, fixtures, equipment and other	90			89
Land	38			38
Building	63			63
Construction in progress	554			505
Total property and equipment	3,847			3,797
Accumulated depreciation and amortization	(2,238		)	(2,171		)
Property and equipment, net	$	1,609		$	1,626

Construction in progress consists of the following:



	March 31, 2020		December 31, 2019
Satellite system	$	384	$	371
Terrestrial repeater network	8		7
Capitalized software and hardware	141		107
Other	21		20
Construction in progress	$	554	$	505

Depreciation and amortization expense on property and equipment was $94 and $80 for the three months ended March 31, 2020 and 2019, respectively. Property and equipment of $29 was retired during the three months ended March 31, 2020.

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 $5 and $4 for the three months ended March 31, 2020 and 2019, respectively, which related to the construction of our SXM-7 and SXM-8 satellites. We also capitalize a portion of share-based compensation related to employee time for capitalized software projects. Capitalized share-based compensation costs were $4 and $3 for the three months ended March 31, 2020 and 2019, respectively.

Satellites

As of March 31, 2020, we owned a fleet of five satellites. The chart below provides certain information on our satellites as of March 31, 2020:



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

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 licenses. The renewal and extension of our licenses is reasonably certain at minimal cost, which is expensed as incurred.

The following table outlines the years in which each of our satellite licenses expires:



FCC satellite licenses		Expiration year
SIRIUS FM-5		2025
SIRIUS FM-6		2022
XM-3		2021
XM-4		2022
XM-5		2026