Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

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Property and Equipment
 6 Months Ended
Jun. 30, 2011
Property and Equipment [Abstract]  
Property and Equipment
(8) Property and Equipment
          Property and equipment, net, consists of the following:
                 
    June 30,     December 31,  
    2011     2010  
Satellite system
  $ 1,943,537     $ 1,943,537  
Terrestrial repeater network
    109,819       109,582  
Leasehold improvements
    43,352       43,567  
Broadcast studio equipment
    52,106       51,985  
Capitalized software and hardware
    171,222       163,689  
Satellite telemetry, tracking and control facilities
    58,221       57,665  
Furniture, fixtures, equipment and other
    63,735       63,265  
Land
    38,411       38,411  
Building
    56,887       56,685  
Construction in progress
    351,611       297,771  
 
           
Total property and equipment
    2,888,901       2,826,157  
Accumulated depreciation and amortization
    (1,166,228 )     (1,064,883 )
 
           
Property and equipment, net
  $ 1,722,673     $ 1,761,274  
 
           
          Construction in progress consists of the following:
                 
    June 30,     December 31,  
    2011     2010  
Satellite system
  $ 313,446     $ 262,744  
Terrestrial repeater network
    18,753       19,239  
Other
    19,412       15,788  
 
           
Construction in progress
  $ 351,611     $ 297,771  
 
           
          Depreciation and amortization expense on property and equipment was $52,102 and $52,412 for the three months ended June 30, 2011 and 2010, respectively, and $105,199 and $105,381 for the six months ended June 30, 2011 and 2010, respectively.
     Satellites
          We own four orbiting satellites for use in the SIRIUS system. Space Systems/Loral is constructing a fifth satellite, FM-6, for use in this system which is anticipated to launch in the fourth quarter of 2011. We have an agreement with International Launch Services to launch this satellite on a Proton rocket.
          We own five orbiting satellites for use in the XM system. Four of these satellites were manufactured by Boeing Satellite Systems International and one was manufactured by Space Systems/Loral.
          During the three and six months ended June 30, 2011, we capitalized expenditures, including interest, of $29,137 and $50,702, respectively, related to the construction of the FM-6 satellite and related launch vehicle. In the three and six months ended June 30, 2010, we capitalized $88,309 and $123,454, respectively, of expenditures, including interest, which also related to FM-6 and XM-5.