XM Radio 2013 Annual Report Download - page 111

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COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(Dollar amounts in thousands, unless otherwise stated)
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.
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