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

3 Months Ended

Mar. 31, 2013

Property, Plant and Equipment [Abstract]

Property and equipment, net, consists of the following:



	March 31, 2013			December 31, 2012
Satellite system	$	1,943,537		$	1,943,537
Terrestrial repeater network	112,532			112,482
Leasehold improvements	45,051			44,938
Broadcast studio equipment	56,478			55,823
Capitalized software and hardware	251,480			232,753
Satellite telemetry, tracking and control facilities	62,608			62,734
Furniture, fixtures, equipment and other	64,447			76,028
Land	38,411			38,411
Building	57,850			57,816
Construction in progress	422,195			417,124
Total property and equipment	3,054,589			3,041,646
Accumulated depreciation and amortization	(1,511,619		)	(1,469,724		)
Property and equipment, net	$	1,542,970		$	1,571,922

Construction in progress consists of the following:



	March 31, 2013		December 31, 2012
Satellite system	$	384,989	$	376,825
Terrestrial repeater network	19,764		17,224
Other	17,442		23,075
Construction in progress	$	422,195	$	417,124

Depreciation expense on property and equipment was $54,427 and $52,191 for the three months ended March 31, 2013 and 2012, respectively.

We retired equipment of $12,656 during the three months ended March 31, 2013 and recognized a loss on disposal of assets of $124.

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

* Satellite was fully depreciated as of March 31, 2013.

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 March 31, 2013 and 2012, we capitalized expenditures, including interest, of $8,164 and $8,665, 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.

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