(7) Interest Costs

We capitalize 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 in 2011 and for our FM-6 and XM-5 satellites in 2010. We also incur interest costs on all of our debt instruments and certain contingent incentive payments due pursuant to our satellite construction agreements. The following is a summary of our interest costs:


	For the Three Months				For the Six Months
	Ended June 30,				Ended June 30,
	2011		2010		2011		2010
Interest costs charged to expense	$	76,196	$	76,802	$	154,414	$	154,670
Interest costs capitalized		8,068		16,253		15,318		30,430

Total interest costs incurred	$	84,264	$	93,055	$	169,732	$	185,100

Included in interest costs incurred is non-cash interest expense, consisting of amortization related to original issue discounts, premiums and deferred financing fees, of $9,661 and $11,175 for the three months ended June 30, 2011 and 2010, respectively, and $19,234 and $22,294 for the six months ended June 30, 2011 and 2010, respectively.