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Property and Equipment | 9 Months Ended
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Sep. 30, 2022
Property, Plant and Equipment [Abstract] |
Property and Equipment | Property and Equipment Property and equipment, net, consists of the following:
| September 30, 2022 |  | December 31, 2021
Satellite system | $ | 1,841 |  |  | $ | 1,841 |
Terrestrial repeater network | 116 |  |  | 116 |
Leasehold improvements | 101 |  |  | 109 |
Broadcast studio equipment | 126 |  |  | 119 |
Capitalized software and hardware | 1,607 |  |  | 1,591 |
Satellite telemetry, tracking and control facilities | 69 |  |  | 67 |
Furniture, fixtures, equipment and other | 89 |  |  | 92 |
Land | 38 |  |  | 38 |
Building | 82 |  |  | 81 |
Construction in progress | 382 |  |  | 156 |
Total property and equipment | 4,451 |  |  | 4,210 |
Accumulated depreciation | (3,013) |  |  | (2,760) |
Property and equipment, net | $ | 1,438 |  |  | $ | 1,450 |
Construction in progress consists of the following:
| September 30, 2022 |  | December 31, 2021
Satellite system | $ | 143 |  |  | $ | 64 |
Terrestrial repeater network | 4 |  |  | 1 |
Capitalized software and hardware | 204 |  |  | 78 |
Other | 31 |  |  | 13 |
Construction in progress | $ | 382 |  |  | $ | 156 |
Depreciation expense on property and equipment was $95 and $97 for the three months ended September 30, 2022 and 2021, respectively, and $287 and $284 for the nine months ended September 30, 2022 and 2021, respectively. During the three and nine months ended September 30, 2022, we wrote off furniture and equipment in connection with impaired office space leases and we disposed of assets associated with software development initiatives that we are no longer pursuing. Refer to Note 4 for more detail. For the three and nine months ended September 30, 2022, we retired property and equipment of $59 and $81, respectively. We retired property and equipment of $47 and $54 during the three and nine months ended September 30, 2021, respectively. 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 $1 for each of the three months ended September 30, 2022 and 2021, respectively, and $3 and $6 for the nine months ended September 30, 2022 and 2021, respectively, which related to the construction of our 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 for each of the three months ended September 30, 2022 and 2021, and $13 and $10 for the nine months ended September 30, 2022 and 2021, respectively. Satellites As of September 30, 2022, we operated a fleet of six 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, 2022:
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 (a)
XM-3 |  | 2005 |  | 2020 |  | 2026
XM-4 |  | 2006 |  | 2021 |  | 2022 (b)
XM-5 |  | 2010 |  | 2025 |  | 2026
SXM-8 |  | 2021 |  | 2036 |  | 2029
(a)We filed an application with the FCC to extend the license for our SIRIUS FM-6 satellite during the quarter ended September 30, 2022 and expect it to be granted routinely. (b)We filed an application with the FCC to extend the license for our XM-4 satellite during the quarter ended December 31, 2022 and expect it to be granted routinely. During the nine months ended September 30, 2021, we recorded an impairment charge of $220 to Impairment, restructuring and acquisition costs in our unaudited consolidated statements of comprehensive income related to the total loss of the SXM-7 satellite. We procured insurance for SXM-7 to cover the risks associated with the satellite's launch and first year of in-orbit operation. The aggregate coverage under the insurance policies with respect to SXM-7 was $225. During the nine months ended September 30, 2021, we collected $225 of insurance recoveries. Of this amount, $80 and $220 were recorded as a reduction to Impairment, restructuring and acquisition costs during the three and nine months ended September 30, 2021, respectively. The remaining $5 was recorded in Other income during the three and nine months ended September 30, 2021. Our SXM-8 satellite was successfully launched into a geostationary orbit on June 6, 2021 and was placed into service on September 8, 2021 following the completion of in-orbit testing. Our SXM-8 satellite replaced our XM-3 satellite. During the nine months ended September 30, 2022, we replaced our XM-4 satellite with our XM-5 satellite. As of September 30, 2022, our XM-3 satellite remains available as an in-orbit spare.

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- Definition The entire disclosure for long-lived, physical asset used in normal conduct of business and not intended for resale. Includes, but is not limited to, work of art, historical treasure, and similar asset classified as collections. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 6 -URI https://asc.fasb.org/extlink&oid=126982197&loc=d3e99893-112916 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI https://asc.fasb.org/topic&trid=2155823 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 7 -URI https://asc.fasb.org/extlink&oid=126982197&loc=SL120174063-112916 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 1 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126982197&loc=d3e99779-112916 + Details
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