Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v2.4.0.8
Property and Equipment
6 Months Ended
Jun. 30, 2014
Property, Plant and Equipment [Abstract]  
Property and Equipment
Property and Equipment

Property and equipment, net, consists of the following:
 
June 30,
2014
 
December 31,
2013
Satellite system
$
2,397,611

 
$
2,407,423

Terrestrial repeater network
107,885

 
109,367

Leasehold improvements
48,899

 
46,173

Broadcast studio equipment
59,502

 
59,020

Capitalized software and hardware
314,529

 
298,267

Satellite telemetry, tracking and control facilities
65,868

 
63,944

Furniture, fixtures, equipment and other
67,755

 
67,275

Land
38,411

 
38,411

Building
58,921

 
58,662

Construction in progress
141,820

 
103,148

Total property and equipment
3,301,201

 
3,251,690

Accumulated depreciation and amortization
(1,751,320
)
 
(1,657,116
)
Property and equipment, net
$
1,549,881

 
$
1,594,574



Construction in progress consists of the following:
 
June 30,
2014
 
December 31,
2013
Satellite system
$
12,842

  
$
11,879

Terrestrial repeater network
41,958

  
30,078

Capitalized software
64,654

 
39,924

Other
22,366

  
21,267

Construction in progress
$
141,820

  
$
103,148



Depreciation expense on property and equipment was $53,344 and $55,070 for the three months ended June 30, 2014 and 2013, respectively, and $107,527 and $109,497 for the six months ended June 30, 2014 and 2013, respectively. We retired property and equipment of $13,518 and $12,862 during the six months ended June 30, 2014 and 2013, respectively, which included the retirement of our XM-2 satellite. Our XM-1 satellite is expected to be retired in the fourth quarter of 2014.

Satellites
We currently own a fleet of eight operating 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
FM-6
 
2013
 
2028
XM-3
 
2005
 
2020
XM-4
 
2006
 
2021
XM-5
 
2010
 
2025

* Satellite was fully depreciated as of June 30, 2014 but is still in operation.