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, 2016

Property, Plant and Equipment [Abstract]

Property and equipment, net, consists of the following:



	March 31, 2016			December 31, 2015
Satellite system	$	2,388,000		$	2,388,000
Terrestrial repeater network	115,235			117,127
Leasehold improvements	49,516			49,407
Broadcast studio equipment	72,638			70,888
Capitalized software and hardware	487,169			466,464
Satellite telemetry, tracking and control facilities	75,684			75,440
Furniture, fixtures, equipment and other	75,936			81,871
Land	38,411			38,411
Building	60,598			60,487
Construction in progress	123,617			101,324
Total property and equipment	3,486,804			3,449,419
Accumulated depreciation and amortization	(2,086,049		)	(2,034,018		)
Property and equipment, net	$	1,400,755		$	1,415,401

Construction in progress consists of the following:



	March 31, 2016		December 31, 2015
Satellite system	$	12,912	$	12,912
Terrestrial repeater network	30,013		25,578
Capitalized software	53,669		37,064
Other	27,023		25,770
Construction in progress	$	123,617	$	101,324

Depreciation expense on property and equipment was $55,187 and $51,804 for the three months ended March 31, 2016 and 2015, respectively. We retired property and equipment of $3,160 and $4,571 during the three months ended March 31, 2016 and 2015, respectively.

Satellites

As of March 31, 2016, we owned a fleet of eight operating satellites. In March 2016, we de-orbited XM-1, a satellite that was no longer in use and had also reached the end of its operational life. The chart below provides certain information on our operating satellites as of March 31, 2016:



Satellite Description	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 and was still in operation as of March 31, 2016. As of April 7, 2016, these satellites were no longer being used to transmit satellite radio. We plan to deorbit these satellites during 2016.