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, 2016

Property, Plant and Equipment [Abstract]

Property and equipment, net, consists of the following:



	June 30, 2016			December 31, 2015
Satellite system	$	2,388,000		$	2,388,000
Terrestrial repeater network	126,417			117,127
Leasehold improvements	50,608			49,407
Broadcast studio equipment	79,955			70,888
Capitalized software and hardware	495,519			466,464
Satellite telemetry, tracking and control facilities	75,925			75,440
Furniture, fixtures, equipment and other	79,817			81,871
Land	38,411			38,411
Building	60,624			60,487
Construction in progress	98,720			101,324
Total property and equipment	3,493,996			3,449,419
Accumulated depreciation and amortization	(2,120,122		)	(2,034,018		)
Property and equipment, net	$	1,373,874		$	1,415,401

Construction in progress consists of the following:



	June 30, 2016		December 31, 2015
Satellite system	$	—	$	12,912
Terrestrial repeater network	1,037		25,578
Capitalized software	74,628		37,064
Other	23,055		25,770
Construction in progress	$	98,720	$	101,324

Depreciation expense on property and equipment was $54,450 and $54,075 for the three months ended June 30, 2016 and 2015, respectively, and $109,637 and $105,879 for the six months ended June 30, 2016 and 2015, respectively. We retired property and equipment of $36,512 and $8,239 during the six months ended June 30, 2016 and 2015, respectively. We recognized a loss on disposal of assets of $12,912, which has been recorded in Satellite and transmission expense in our unaudited consolidated statements of comprehensive income during the three and six months ended June 30, 2016, which related to the disposal of certain obsolete spare parts for a future satellite.

Satellites

As of June 30, 2016, we owned a fleet of eight satellites, of which five were operating. The chart below provides certain information on our satellites as of June 30, 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 as of June 30, 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.