XM Radio 2009 Annual Report Download - page 174

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Construction in progress consists of the following:
2009 2008
December 31,
Satellite system .............................................. $398,425 $449,129
Terrestrial repeater network ..................................... 19,396 19,070
Other ..................................................... 12,722 6,517
Construction in progress ..................................... $430,543 $474,716
Depreciation and amortization expense on property and equipment was $232,863, $167,963 and $106,780 for
the years ended December 31, 2009, 2008 and 2007, respectively.
Satellites
SIRIUS’ initial three orbiting satellites were successfully launched in 2000. Our spare SIRIUS satellite was
delivered to ground storage in 2002. SIRIUS’ original three-satellite constellation and terrestrial repeater network
were placed into service in 2002. In June 2009, SIRIUS launched a satellite into a geostationary orbit and placed it
into service in August 2009 along with SIRIUS’ other three orbiting satellites.
SIRIUS has an agreement with Space Systems/Loral for the design and construction of a sixth SIRIUS
satellite. In January 2008, SIRIUS entered into an agreement with International Launch Services (“ILS”) to secure a
satellite launch on a Proton rocket.
XM owns four orbiting satellites; two of which, XM-3 and XM-4, currently transmit the XM signal and two of
which, XM-1 and XM-2, serve as in-orbit spares. The XM satellites were launched in March 2001, May 2001,
February 2005 and October 2006.
Space Systems/Loral has constructed a fifth satellite, XM-5, for use in the XM system. In 2006, XM entered
into an agreement with Sea Launch to secure a launch for XM-5. In June 2009, Sea Launch filed for bankruptcy
protection under Title 11 of the United States Code and as a result, we recorded a charge of $24,196 to
Restructuring, impairments and related costs in our consolidated statements of operations for amounts previously
paid, including capitalized interest. In October 2009, XM Holdings terminated its satellite launch agreement with
Sea Launch with the consent of the Bankruptcy Court. In October 2009, we entered into an agreement with ILS to
secure a satellite launch for XM-5 on a Proton rocket.
(9) Related Party Transactions
We had the following related party balances at December 31, 2009 and 2008:
2009 2008 2009 2008 2009 2008 2009 2008 2009 2008
December 31, December 31, December 31, December 31, December 31,
Related Party
Current Assets
Related Party
Long-Term Assets
Related Party
Current Liabilities
Related Party
Long-Term
Liabilities
Related Party
Long-Term Debt
Liberty Media . . . . . . . . $ — $ — $ 801 $ — $ 8,523 $ — $ — $— $263,566 $—
SIRIUS Canada . . . . . . . 2,327 1,814 — — — 1,160 — — — —
XM Canada . . . . . . . . . 1,011 1,844 24,429 12,061 — — — — — —
General Motors . . . . . . . 99,995 104,575 85,364 116,296 93,107 63,023 17,508 — — —
American Honda . . . . . . 2,914 2,194 — — 3,841 4,190 — — — —
Total . . . . . . . . . . . . . $106,247 $110,427 $110,594 $128,357 $105,471 $68,373 $17,508 $— $263,566 $—
F-20
SIRIUS XM RADIO INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)