Sirius XM Holdings Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Property and Equipment

Property and Equipment

12 Months Ended

Dec. 31, 2011

Property and Equipment [Abstract]

Property and Equipment

(10)

Property and Equipment

Property and equipment, net, consists of the following:


	December 31, 2011			December 31, 2010
Satellite system	$	1,943,537		$	1,943,537
Terrestrial repeater network		112,440			109,582
Leasehold improvements		43,455			43,567
Broadcast studio equipment		53,903			51,985
Capitalized software and hardware		193,301			163,689
Satellite telemetry, tracking and control facilities		60,539			57,665
Furniture, fixtures, equipment and other		60,283			63,265
Land		38,411			38,411
Building		57,185			56,685
Construction in progress		372,508			297,771

Total property and equipment		2,935,562			2,826,157
Accumulated depreciation and amortization		(1,261,643	)		(1,064,883	)

Property and equipment, net	$	1,673,919		$	1,761,274

Construction in progress consists of the following:


	December 31, 2011		December 31, 2010
Satellite system	$	343,932	$	262,744
Terrestrial repeater network		19,194		19,239
Other		9,382		15,788

Construction in progress	$	372,508	$	297,771

Depreciation and amortization expense on property and equipment was $208,830, $207,367 and $232,863 for the years ended December 31, 2011, 2010 and 2009, respectively. We retired property and equipment of $12,158 during the year ended December 31, 2011 and $155,000, which included our FM-4 satellite, during the year ended December 31, 2010.

Satellites

We currently own a fleet of nine orbiting satellites. The chart below provides certain information on these satellites:


Satellite Designation	Year Delivered		Estimated End of Depreciable Life
FM-1		2000		2013
FM-2		2000		2013
FM-3		2000		2015
FM-5		2009		2024
XM-1		2001		2013
XM-2		2001		2013
XM-3		2005		2020
XM-4		2006		2021
XM-5		2010		2025

We own four orbiting satellites for use in the Sirius system. Space Systems/Loral has constructed another satellite (FM-6) for use in this system.

In 2010, we recorded an other than temporary impairment charge of $56,100 to Restructuring, impairments, and related costs in our consolidated statement of operations for FM-4, a ground spare satellite held in storage since 2002. We determined that the probability of launching FM-4 was remote due to the launch of XM-5 in 2010.

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 years ended December 31, 2011 and 2010, we capitalized expenditures, including interest, of $81,189 and $223,928, respectively, related to the construction of our FM-6 and XM-5 satellites and related launch vehicles.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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