XM Radio 2011 Annual Report Download - page 108

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SIRIUS XM RADIO INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Depreciation and amortization expense on property and equipment was $208,830, $207,367 and $232,863
for the years ended December 31, 2011, 2010 and 2009, respectively. We retired property and equipment of
$12,158 during the year ended December 31, 2011 and $155,000, which included our FM-4 satellite, during the
year ended December 31, 2010.
Satellites
We currently own a fleet of nine orbiting 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
XM-1 .................................................. 2001 2013
XM-2 .................................................. 2001 2013
XM-3 .................................................. 2005 2020
XM-4 .................................................. 2006 2021
XM-5 .................................................. 2010 2025
We own four orbiting satellites for use in the Sirius system. Space Systems/Loral has constructed another
satellite (FM-6) for use in this system.
In 2010, we recorded an other than temporary impairment charge of $56,100 to Restructuring, impairments,
and related costs in our consolidated statement of operations for FM-4, a ground spare satellite held in storage
since 2002. We determined that the probability of launching FM-4 was remote due to the launch of XM-5 in
2010.
We own five orbiting satellites for use in the XM system. Four of these satellites were manufactured by
Boeing Satellite Systems International and one was manufactured by Space Systems/Loral.
During the years ended December 31, 2011 and 2010, we capitalized expenditures, including interest, of
$81,189 and $223,928, respectively, related to the construction of our FM-6 and XM-5 satellites and related
launch vehicles.
(11) Related Party Transactions
We had the following related party balances at December 31, 2011 and 2010:
Related party
current assets
Related party
long-term assets
Related party
current liabilities
Related party
long-term
liabilities
Related party
long-term debt
2011* 2010 2011* 2010 2011* 2010 2011* 2010 2011* 2010
Liberty Media ............ $ — $ — $ 1,212 $ 1,571 $ 9,722 $ 9,765 $ — $ — $328,788 $325,907
Sirius XM Canada ......... 14,702 — 53,741 — 4,580 — 21,741 — — —
Sirius Canada ............. — 5,613 — — — 1,805 — — — —
XM Canada .............. — 1,106 — 31,904 — 4,275 — 24,517 — —
Total .................. $14,702 $6,719 $54,953 $33,475 $14,302 $15,845 $21,741 $24,517 $328,788 $325,907
* Sirius Canada and XM Canada combined in June 2011. The combined entity now operates as Sirius XM Canada.
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