XM Radio 2011 Annual Report Download - page 107

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SIRIUS XM RADIO INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(9) Interest Costs
We capitalized a portion of the interest on funds borrowed to finance the construction costs of our satellites
and related launch vehicles for our FM-6 satellite for the year ended December 31, 2011 and for our FM-6 and
XM-5 satellites for the years ended December 31, 2010 and 2009. 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,
2011 2010 2009
Interest costs charged to expense ......................... $304,938 $295,643 $315,668
Interest costs capitalized ............................... 33,522 63,880 61,201
Total interest costs incurred ........................... $338,460 $359,523 $376,869
Included in interest costs incurred is non-cash interest expense, consisting of amortization related to original
issue discounts, premiums and deferred financing fees of $39,515, $42,841 and $43,066 for the years ended
December 31, 2011, 2010 and 2009, respectively.
(10) Property and Equipment
Property and equipment, net, consists of the following:
December 31,
2011
December 31,
2010
Satellite system ............................................. $1,943,537 $ 1,943,537
Terrestrial repeater network ................................... 112,440 109,582
Leasehold improvements ..................................... 43,455 43,567
Broadcast studio equipment ................................... 53,903 51,985
Capitalized software and hardware ............................. 193,301 163,689
Satellite telemetry, tracking and control facilities .................. 60,539 57,665
Furniture, fixtures, equipment and other ......................... 60,283 63,265
Land ..................................................... 38,411 38,411
Building .................................................. 57,185 56,685
Construction in progress ...................................... 372,508 297,771
Total property and equipment ............................... 2,935,562 2,826,157
Accumulated depreciation and amortization ...................... (1,261,643) (1,064,883)
Property and equipment, net ............................... $1,673,919 $ 1,761,274
Construction in progress consists of the following:
December 31,
2011
December 31,
2010
Satellite system ............................................. $343,932 $262,744
Terrestrial repeater network .................................... 19,194 19,239
Other ..................................................... 9,382 15,788
Construction in progress .................................... $372,508 $297,771
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