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

6 Months Ended

Jun. 30, 2014

Property, Plant and Equipment [Abstract]

Property and equipment, net, consists of the following:



	June 30, 2014			December 31, 2013
Satellite system	$	2,397,611		$	2,407,423
Terrestrial repeater network	107,885			109,367
Leasehold improvements	48,899			46,173
Broadcast studio equipment	59,502			59,020
Capitalized software and hardware	314,529			298,267
Satellite telemetry, tracking and control facilities	65,868			63,944
Furniture, fixtures, equipment and other	67,755			67,275
Land	38,411			38,411
Building	58,921			58,662
Construction in progress	141,820			103,148
Total property and equipment	3,301,201			3,251,690
Accumulated depreciation and amortization	(1,751,320		)	(1,657,116		)
Property and equipment, net	$	1,549,881		$	1,594,574

Construction in progress consists of the following:



	June 30, 2014		December 31, 2013
Satellite system	$	12,842	$	11,879
Terrestrial repeater network	41,958		30,078
Capitalized software	64,654		39,924
Other	22,366		21,267
Construction in progress	$	141,820	$	103,148

Depreciation expense on property and equipment was $53,344 and $55,070 for the three months ended June 30, 2014 and 2013, respectively, and $107,527 and $109,497 for the six months ended June 30, 2014 and 2013, respectively. We retired property and equipment of $13,518 and $12,862 during the six months ended June 30, 2014 and 2013, respectively, which included the retirement of our XM-2 satellite. Our XM-1 satellite is expected to be retired in the fourth quarter of 2014.

Satellites

We currently own a fleet of eight operating 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
FM-6	2013	2028
XM-3	2005	2020
XM-4	2006	2021
XM-5	2010	2025

* Satellite was fully depreciated as of June 30, 2014 but is still in operation.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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