Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v2.4.0.8
Property and Equipment
 9 Months Ended
Sep. 30, 2013
Property, Plant and Equipment [Abstract]  
Property and Equipment
Property and Equipment

Property and equipment, net, consists of the following:
 
September 30,
2013
 
December 31,
2012
Satellite system
$
1,943,537

 
$
1,943,537

Terrestrial repeater network
112,516

 
112,482

Leasehold improvements
46,070

 
44,938

Broadcast studio equipment
57,717

 
55,823

Capitalized software and hardware
257,419

 
232,753

Satellite telemetry, tracking and control facilities
63,790

 
62,734

Furniture, fixtures, equipment and other
66,345

 
76,028

Land
38,411

 
38,411

Building
58,011

 
57,816

Construction in progress
511,715

 
417,124

Total property and equipment
3,155,531

 
3,041,646

Accumulated depreciation and amortization
(1,612,644
)
 
(1,469,724
)
Property and equipment, net
$
1,542,887

 
$
1,571,922



Construction in progress consists of the following:
 
September 30,
2013
 
December 31,
2012
Satellite system
$
431,513

  
$
376,825

Terrestrial repeater network
24,888

  
17,224

Other
55,314

  
23,075

Construction in progress
$
511,715

  
$
417,124



Depreciation expense on property and equipment was $46,426 and $53,373 for the three months ended September 30, 2013 and 2012, respectively, and $155,923 and $158,706 for the nine months ended September 30, 2013 and 2012, respectively.

We retired property and equipment of $13,130 and $4,633 and recognized a loss on disposal of assets of $128 and $567 during the nine months ended September 30, 2013 and 2012, respectively.

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

* Satellite was fully depreciated as of September 30, 2013 but is still in operation.

We own four orbiting satellites for use in the Sirius system. We own five orbiting satellites for use in the XM system. Four of these satellites were manufactured by Boeing Satellite Systems International, Inc., and five were manufactured by Space Systems/Loral.

During the three months ended September 30, 2013 and 2012, we capitalized expenditures, including interest, of $28,608 and $8,219, respectively, and $44,982 and $25,224 during the nine months ended September 30, 2013 and 2012, respectively, related to the construction of our FM-6 satellite and related launch vehicle.