Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v2.4.0.8
Property and Equipment
9 Months Ended
Sep. 30, 2014
Property, Plant and Equipment [Abstract]  
Property and Equipment
Property and Equipment

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

 
$
2,407,423

Terrestrial repeater network
107,796

 
109,367

Leasehold improvements
48,514

 
46,173

Broadcast studio equipment
60,045

 
59,020

Capitalized software and hardware
321,312

 
298,267

Satellite telemetry, tracking and control facilities
66,206

 
63,944

Furniture, fixtures, equipment and other
77,188

 
67,275

Land
38,411

 
38,411

Building
59,091

 
58,662

Construction in progress
147,650

 
103,148

Total property and equipment
3,323,824

 
3,251,690

Accumulated depreciation and amortization
(1,801,189
)
 
(1,657,116
)
Property and equipment, net
$
1,522,635

 
$
1,594,574



Construction in progress consists of the following:
 
September 30,
2014
 
December 31,
2013
Satellite system
$
12,912

  
$
11,879

Terrestrial repeater network
46,554

  
30,078

Capitalized software
73,050

 
39,924

Other
15,134

  
21,267

Construction in progress
$
147,650

  
$
103,148



Depreciation expense on property and equipment was $50,908 and $46,426 for the three months ended September 30, 2014 and 2013, respectively, and $158,435 and $155,923 for the nine months ended September 30, 2014 and 2013, respectively. We retired property and equipment of $14,802 and $13,130 during the nine months ended September 30, 2014 and 2013, respectively, which included the retirement of our XM-2 satellite in 2014.

Satellites
We currently own a fleet of nine 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-1*
 
2001
 
2013
XM-3
 
2005
 
2020
XM-4
 
2006
 
2021
XM-5
 
2010
 
2025

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