Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v2.4.0.8
Property and Equipment
 3 Months Ended
Mar. 31, 2014
Property, Plant and Equipment [Abstract]  
Property and Equipment
Property and Equipment

Property and equipment, net, consists of the following:
 
March 31,
2014
 
December 31,
2013
Satellite system
$
2,407,423

 
$
2,407,423

Terrestrial repeater network
106,895

 
109,367

Leasehold improvements
47,676

 
46,173

Broadcast studio equipment
59,122

 
59,020

Capitalized software and hardware
310,248

 
298,267

Satellite telemetry, tracking and control facilities
64,143

 
63,944

Furniture, fixtures, equipment and other
67,165

 
67,275

Land
38,411

 
38,411

Building
58,849

 
58,662

Construction in progress
119,523

 
103,148

Total property and equipment
3,279,455

 
3,251,690

Accumulated depreciation and amortization
(1,707,995
)
 
(1,657,116
)
Property and equipment, net
$
1,571,460

 
$
1,594,574



Construction in progress consists of the following:
 
March 31,
2014
 
December 31,
2013
Satellite system
$
12,085

  
$
11,879

Terrestrial repeater network
37,304

  
30,078

Capitalized software
47,540

 
39,924

Other
22,594

  
21,267

Construction in progress
$
119,523

  
$
103,148



Depreciation expense on property and equipment was $54,183 and $54,427 for the three months ended March 31, 2014 and 2013, respectively. We retired property and equipment of $3,500 and $12,656 and recognized a loss on the disposal of assets of $196 and $124 during the three months ended March 31, 2014 and 2013, 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 March 31, 2014 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.