XM Radio 2015 Annual Report Download - page 110

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Depreciation is calculated using the straight-line method over the following estimated useful life of
the asset:
Satellite system. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2–15 years
Terrestrial repeater network . . . . . . . . . . . . . . . . 5–15 years
Broadcast studio equipment . . . . . . . . . . . . . . . . 3–15 years
Capitalized software and hardware. . . . . . . . . . 3–7 years
Satellite telemetry, tracking and control
facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3–15 years
Furniture, fixtures, equipment and other . . . . . 2–7 years
Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 or 30 years
Leasehold improvements . . . . . . . . . . . . . . . . . . . Lesser of useful life or remaining lease term
We review long-lived assets, such as property and equipment, for impairment whenever events
or changes in circumstances indicate the carrying amount may not be recoverable. Recoverability of
assets to be held and used is measured by a comparison of the carrying amount of an asset to
estimated undiscounted future cash flows expected to be generated by the asset. If the carrying
amount of an asset exceeds the estimated future cash flows, an impairment charge is recognized
for the amount by which the carrying amount exceeds the fair value of the asset. We did not record
any impairments during the years ended December 31, 2015, 2014 or 2013.
Property and equipment, net, consists of the following:
December 31,
2015
December 31,
2014
Satellite system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,388,000 $ 2,397,611
Terrestrial repeater network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117,127 108,341
Leasehold improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,407 48,677
Broadcast studio equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,888 61,306
Capitalized software and hardware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 466,464 340,738
Satellite telemetry, tracking and control facilities . . . . . . . . . . . . . . . . . . . . . . . 75,440 71,268
Furniture, fixtures, equipment and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,871 78,237
Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,411 38,411
Building. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,487 59,373
Construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101,324 155,716
Total property and equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,449,419 3,359,678
Accumulated depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,034,018) (1,849,566)
Property and equipment, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,415,401 $ 1,510,112
Construction in progress consists of the following:
December 31,
2015
December 31,
2014
Satellite system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,912 $ 12,912
Terrestrial repeater network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,578 48,406
Capitalized software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,064 77,755
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,770 16,643
Construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $101,324 $155,716
Depreciation expense on property and equipment was $220,514, $211,407, $203,303 for the
years ended December 31, 2015, 2014 and 2013, respectively. We retired property and equipment
of $43,833, $19,398 and $16,039 during the years ended December 31, 2015, 2014 and 2013,
respectively, which included the retirement of our XM-1 and XM-2 satellites in 2015 and 2014,
F-19
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollars and shares in thousands, except per share amounts)