Property and Equipment

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment

Property and equipment, net, consists of the following:

	September 30, 2020		December 31, 2019
Satellite system	$	1,587	$	1,587
Terrestrial repeater network	103		100
Leasehold improvements	106		105
Broadcast studio equipment	123		137
Capitalized software and hardware	1,201		1,086
Satellite telemetry, tracking and control facilities	93		87
Furniture, fixtures, equipment and other	91		89
Land	38		38
Building	63		63
Construction in progress	569		505
Total property and equipment	3,974		3,797
Accumulated depreciation and amortization	(2,387)		(2,171)
Property and equipment, net	$	1,587	$	1,626

Construction in progress consists of the following:

	September 30, 2020		December 31, 2019
Satellite system	$	406	$	371
Terrestrial repeater network	8		7
Capitalized software and hardware	144		107
Other	11		20
Construction in progress	$	569	$	505

Depreciation and amortization expense on property and equipment was $88 and $80 for the three months ended September 30, 2020 and 2019, respectively, and $268 and $241 for the nine months ended September 30, 2020 and 2019, respectively.  Property and equipment of $65, which included a loss of $13 related to the termination of the Automatic service, was retired during the nine months ended September 30, 2020. There were no retirements of property and equipment during the three and nine months ended September 30, 2019.

We capitalize a portion of the interest on funds borrowed to finance the construction and launch of our satellites. Capitalized interest is recorded as part of the asset’s cost and depreciated over the satellite’s useful life. Capitalized interest costs were $5 and $4 for the three months ended September 30, 2020 and 2019, respectively, and $14 and $12 for the nine months ended September 30, 2020 and 2019, respectively, which related to the construction of our SXM-7 and SXM-8

satellites. We also capitalize a portion of share-based compensation related to employee time for capitalized software projects. Capitalized share-based compensation costs were $4 and $2 for the three months ended September 30, 2020 and 2019, respectively, and $13 and $9 for the nine months ended September 30, 2020 and 2019, respectively.

Satellites

As of September 30, 2020, we owned a fleet of five satellites.  Each satellite requires an FCC license, and prior to the expiration of each license, we are required to apply for a renewal of the FCC satellite license.  The renewal and extension of our licenses is reasonably certain at minimal cost, which is expensed as incurred. The chart below provides certain information on our satellites as of September 30, 2020:

Satellite Description	Year Delivered	Estimated End of Depreciable Life	FCC License Expiration Year
SIRIUS FM-5	2009	2024	2025
SIRIUS FM-6	2013	2028	2022
XM-3	2005	2020	2021
XM-4	2006	2021	2022
XM-5	2010	2025	2026