Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v3.20.2
Property and Equipment
 6 Months Ended
Jun. 30, 2020
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment, net, consists of the following:
  June 30, 2020 December 31, 2019
Satellite system $ 1,587    $ 1,587   
Terrestrial repeater network 102    100   
Leasehold improvements 106    105   
Broadcast studio equipment 121    137   
Capitalized software and hardware 1,175    1,086   
Satellite telemetry, tracking and control facilities 92    87   
Furniture, fixtures, equipment and other 91    89   
Land 38    38   
Building 63    63   
Construction in progress 516    505   
Total property and equipment 3,891    3,797   
Accumulated depreciation and amortization (2,299)   (2,171)  
Property and equipment, net $ 1,592    $ 1,626   
Construction in progress consists of the following:
  June 30, 2020 December 31, 2019
Satellite system $ 390    $ 371   
Terrestrial repeater network 8    7   
Capitalized software and hardware 109    107   
Other 9    20   
Construction in progress $ 516    $ 505   
Depreciation and amortization expense on property and equipment was $86 and $81 for the three months ended June 30, 2020 and 2019, respectively, and $180 and $161 for the six months ended June 30, 2020 and 2019, respectively.  Property and equipment of $36 and $65, which included a loss of $13 related to the termination of the Automatic service, was retired during the three and six months ended June 30, 2020, respectively. There were no retirements of property and equipment during the three and six months ended June 30, 2019.
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 $4 for both the three months ended June 30, 2020 and 2019, and $9 and $8 for the six months ended June 30, 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 $5 and $4 for the three months ended June 30, 2020 and 2019, respectively, and $8 and $7 for the six months ended June 30, 2020 and 2019, respectively.
Satellites
As of June 30, 2020, we owned a fleet of five satellites.  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 license.  The renewal and extension of our licenses is reasonably certain at minimal cost, which is expensed as incurred. The chart below provides certain information on our satellites as of June 30, 2020:
Satellite Description Year Delivered Estimated End of
Depreciable Life		 FCC License Expiration Year
SIRIUS FM-5 2009 2024 2025
SIRIUS FM-6 2013 2028 2022
XM-3 2005 2020 2021
XM-4 2006 2021 2022
XM-5 2010 2025 2026