XM Radio 2012 Annual Report Download - page 105

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SIRIUS XM RADIO INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Amortization expense for all definite life intangible assets was $53,620, $59,050 and $66,324 for the years
ended December 31, 2012, 2011 and 2010, respectively. Expected amortization expense for each of the fiscal
years 2013 through 2017 and for periods thereafter is as follows:
Year ending December 31, Amount
2013 .................................................................... $ 47,330
2014 .................................................................... 38,852
2015 .................................................................... 37,526
2016 .................................................................... 31,932
2017 .................................................................... 18,968
Thereafter ................................................................ 11,348
Total definite life intangible assets, net ....................................... $185,956
(8) Interest Costs
We capitalized a portion of the interest on funds borrowed as part of the cost of constructing our satellites
and related launch vehicle. We are currently capitalizing the interest associated with our FM-6 satellite and will
continue to do so until its launch. During the year ended December 31, 2010, we also capitalized costs related to
our XM-5 satellite and related launch vehicle. We also incur interest costs on all of our debt instruments and on
our satellite incentive agreements. The following is a summary of our interest costs:
For the Years Ended December 31,
2012 2011 2010
Interest costs charged to expense ........................ $265,321 $304,938 $295,643
Interest costs capitalized ............................... 31,982 33,522 63,880
Total interest costs incurred .......................... $297,303 $338,460 $359,523
Included in interest costs incurred is non-cash interest expense, consisting of amortization related to original
issue discounts, premiums and deferred financing fees of $35,924, $39,515 and $42,841 for the years ended
December 31, 2012, 2011 and 2010, respectively.
(9) Property and Equipment
Property and equipment, net, consists of the following:
December 31,
2012
December 31,
2011
Satellite system ............................................. $1,943,537 $ 1,943,537
Terrestrial repeater network ................................... 112,482 112,440
Leasehold improvements ..................................... 44,938 43,455
Broadcast studio equipment ................................... 55,823 53,903
Capitalized software and hardware ............................. 232,753 193,301
Satellite telemetry, tracking and control facilities .................. 62,734 60,539
Furniture, fixtures, equipment and other ......................... 76,028 60,283
Land ..................................................... 38,411 38,411
Building .................................................. 57,816 57,185
Construction in progress ...................................... 417,124 372,508
Total property and equipment ............................... 3,041,646 2,935,562
Accumulated depreciation and amortization ...................... (1,469,724) (1,261,643)
Property and equipment, net ................................. $1,571,922 $ 1,673,919
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