Annual report pursuant to Section 13 and 15(d)

Property and Equipment

v2.4.0.8
Property and Equipment
 12 Months Ended
Dec. 31, 2013
Property, Plant and Equipment [Abstract]  
Property and Equipment
Property and Equipment

Property and equipment, net, consists of the following:
 
December 31,
2013
 
December 31,
2012
Satellite system
$
2,407,423

 
$
1,943,537

Terrestrial repeater network
109,367

 
112,482

Leasehold improvements
46,173

 
44,938

Broadcast studio equipment
59,020

 
55,823

Capitalized software and hardware
298,267

 
232,753

Satellite telemetry, tracking and control facilities
63,944

 
62,734

Furniture, fixtures, equipment and other
67,275

 
76,028

Land
38,411

 
38,411

Building
58,662

 
57,816

Construction in progress
103,148

 
417,124

Total property and equipment
3,251,690

 
3,041,646

Accumulated depreciation and amortization
(1,657,116
)
 
(1,469,724
)
Property and equipment, net
$
1,594,574

 
$
1,571,922



Construction in progress consists of the following:
 
December 31,
2013
 
December 31,
2012
Satellite system
$
11,879

  
$
376,825

Terrestrial repeater network
30,078

  
17,224

Capitalized software
39,924

 
18,083

Other
21,267

  
4,992

Construction in progress
$
103,148

  
$
417,124



Depreciation expense on property and equipment was $203,303, $212,675 and $208,830 for the years ended December 31, 2013, 2012 and 2011, respectively. We retired property and equipment of $16,039, $5,251 and $12,158 and recognized a loss on the disposal of assets of $351, $657 and $269 during the years ended December 31, 2013, 2012 and 2011, respectively.

Satellites
We currently own a fleet of ten 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
FM-6
 
2013
 
2028
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 December 31, 2013 but is still in operation.

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

During the years ended December 31, 2013, 2012 and 2011, we capitalized expenditures, including interest, of $87,061, $32,893 and $81,189, respectively, related to the construction of our FM-6 satellite and related launch vehicle, which was launched and placed into operation in the fourth quarter of 2013.