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

9 Months Ended

Sep. 30, 2012

Property, Plant and Equipment [Abstract]

Property and equipment, net, consists of the following:



	September 30, 2012			December 31, 2011
Satellite system	$	1,943,537		$	1,943,537
Terrestrial repeater network	109,993			112,440
Leasehold improvements	44,588			43,455
Broadcast studio equipment	55,414			53,903
Capitalized software and hardware	215,067			193,301
Satellite telemetry, tracking and control facilities	62,270			60,539
Furniture, fixtures, equipment and other	74,684			60,283
Land	38,411			38,411
Building	57,415			57,185
Construction in progress	416,267			372,508
Total property and equipment	3,017,646			2,935,562
Accumulated depreciation and amortization	(1,416,283		)	(1,261,643		)
Property and equipment, net	$	1,601,363		$	1,673,919

Construction in progress consists of the following:



	September 30, 2012		December 31, 2011
Satellite system	$	369,156	$	343,932
Terrestrial repeater network	19,267		19,194
Other	27,844		9,382
Construction in progress	$	416,267	$	372,508

Depreciation and amortization expense on property and equipment was $53,373 and $50,833 for the three months ended September 30, 2012 and 2011, respectively, and $158,706 and $156,032 for the nine months ended September 30, 2012 and 2011, respectively.

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. We own five orbiting satellites for use in the XM system. Four of these satellites were manufactured by Boeing Satellite Systems International and five were manufactured by Space Systems/Loral.

During the three months ended September 30, 2012 and 2011, we capitalized expenditures, including interest, of $8,219 and $16,875, respectively, and $25,224 and $67,576 during the nine months ended September 30, 2012 and 2011, respectively, related to the construction of our FM-6 satellite and related launch vehicle.

- 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.

+ References + Details