XM Radio 2014 Annual Report Download - page 126

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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 in 2014, 2013 or 2012.
Property and equipment, net, consists of the following:
December 31,
2014
December 31,
2013
Satellite system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,397,611 $ 2,407,423
Terrestrial repeater network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108,341 109,367
Leasehold improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,677 46,173
Broadcast studio equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,306 59,020
Capitalized software and hardware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340,738 298,267
Satellite telemetry, tracking and control facilities . . . . . . . . . . . . . . . . . . . . . . . 71,268 63,944
Furniture, fixtures, equipment and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,237 67,275
Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,411 38,411
Building. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,373 58,662
Construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155,716 103,148
Total property and equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,359,678 3,251,690
Accumulated depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,849,566) (1,657,116)
Property and equipment, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,510,112 $ 1,594,574
Construction in progress consists of the following:
December 31,
2014
December 31,
2013
Satellite system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,912 $ 11,879
Terrestrial repeater network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,406 30,078
Capitalized software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,755 39,924
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,643 21,267
Construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $155,716 $103,148
Depreciation expense on property and equipment was $211,407, $203,303 and $212,675 for
the years ended December 31, 2014, 2013 and 2012, respectively. During the years ended
December 31, 2014, 2013 and 2012, we retired property and equipment of $19,398, $16,039 and
$5,251, respectively, which included the retirement of our XM-2 satellite in 2014, and recognized a
loss on disposal of assets of $220, $351 and $657, respectively.
F-20
SIRIUS XM HOLDINGS INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(Dollar amounts in thousands, unless otherwise stated)