Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v3.20.2
Property and Equipment
 9 Months Ended
Sep. 30, 2020
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment, net, consists of the following:
  September 30, 2020 December 31, 2019
Satellite system $ 1,587  $ 1,587 
Terrestrial repeater network 103  100 
Leasehold improvements 106  105 
Broadcast studio equipment 123  137 
Capitalized software and hardware 1,201  1,086 
Satellite telemetry, tracking and control facilities 93  87 
Furniture, fixtures, equipment and other 91  89 
Land 38  38 
Building 63  63 
Construction in progress 569  505 
Total property and equipment 3,974  3,797 
Accumulated depreciation and amortization (2,387) (2,171)
Property and equipment, net $ 1,587  $ 1,626 
Construction in progress consists of the following:
  September 30, 2020 December 31, 2019
Satellite system $ 406  $ 371 
Terrestrial repeater network 8  7 
Capitalized software and hardware 144  107 
Other 11  20 
Construction in progress $ 569  $ 505 
Depreciation and amortization expense on property and equipment was $88 and $80 for the three months ended September 30, 2020 and 2019, respectively, and $268 and $241 for the nine months ended September 30, 2020 and 2019, respectively.  Property and equipment of $65, which included a loss of $13 related to the termination of the Automatic service, was retired during the nine months ended September 30, 2020. There were no retirements of property and equipment during the three and nine months ended September 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 $5 and $4 for the three months ended September 30, 2020 and 2019, respectively, and $14 and $12 for the nine months ended September 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 $4 and $2 for the three months ended September 30, 2020 and 2019, respectively, and $13 and $9 for the nine months ended September 30, 2020 and 2019, respectively.
Satellites
As of September 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 September 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