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

9 Months Ended

Sep. 30, 2014

Property, Plant and Equipment [Abstract]

Property and equipment, net, consists of the following:



	September 30, 2014			December 31, 2013
Satellite system	$	2,397,611		$	2,407,423
Terrestrial repeater network	107,796			109,367
Leasehold improvements	48,514			46,173
Broadcast studio equipment	60,045			59,020
Capitalized software and hardware	321,312			298,267
Satellite telemetry, tracking and control facilities	66,206			63,944
Furniture, fixtures, equipment and other	77,188			67,275
Land	38,411			38,411
Building	59,091			58,662
Construction in progress	147,650			103,148
Total property and equipment	3,323,824			3,251,690
Accumulated depreciation and amortization	(1,801,189		)	(1,657,116		)
Property and equipment, net	$	1,522,635		$	1,594,574

Construction in progress consists of the following:



	September 30, 2014		December 31, 2013
Satellite system	$	12,912	$	11,879
Terrestrial repeater network	46,554		30,078
Capitalized software	73,050		39,924
Other	15,134		21,267
Construction in progress	$	147,650	$	103,148

Depreciation expense on property and equipment was $50,908 and $46,426 for the three months ended September 30, 2014 and 2013, respectively, and $158,435 and $155,923 for the nine months ended September 30, 2014 and 2013, respectively. We retired property and equipment of $14,802 and $13,130 during the nine months ended September 30, 2014 and 2013, respectively, which included the retirement of our XM-2 satellite in 2014.

Satellites

We currently own a fleet of nine 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-1*	2001	2013
XM-3	2005	2020
XM-4	2006	2021
XM-5	2010	2025

* Satellite was fully depreciated as of September 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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