Property and Equipment
 3 Months Ended
Mar. 31, 2015
Property and Equipment  
Property and Equipment

NOTE 3.Property and Equipment

 

Property and equipment consisted of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Depreciable Life

    

 

 

    

 

 

(in millions)

 

(in years)

 

March 31, 2015

 

December 31, 2014

Satellites

 
9 

–

13

 

$
1,798.7 

 

$
1,973.1 

Construction in progress

 

 

–

 

 

 
765.8 

 

 
765.1 

Computer equipment and software

 
3 

–

12

 

 
403.6 

 

 
376.2 

Machinery and equipment, including ground terminals

 

 

5

 

 

 
109.3 

 

 
109.3 

Furniture, fixtures and other

 
3 

–

 7

 

 
40.1 

 

 
39.9 

Land and buildings

 

 

34

 

 

 
6.6 

 

 
6.6 

Total property and equipment

 

 

 

 

 

 
3,124.1 

 

 
3,270.2 

Accumulated depreciation and amortization

 

 

 

 

 

 
(985.8)

 

 
(1,095.5)

Property and equipment, net

 

 

 

 

 

$
2,138.3 

 

$
2,174.7 

 

Depreciation expense for property and equipment was $64.7 million and $55.1 million for the three months ended March 31, 2015 and 2014, respectively.

 

Satellite Constellation

 

As of March 31, 2015, the Company operates a constellation of four in-orbit and fully commissioned satellites: GeoEye-1, WorldView-1, WorldView-2 and WorldView-3. We retired QuickBird, as the satellite stopped capturing images in December 2014 and ceased operating in the first quarter of 2015. Additionally, in the first quarter of 2015, the Company stopped making new IKONOS imagery commercially available and committed to a plan to decommission the satellite. The net book value of each satellite is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31, 2015

 

As of December 31, 2014

 

 

 

Depreciable

 

Gross

 

 

 

 

Net

 

Gross

 

 

 

 

Net

 

 

    

Life

 

Carrying

 

Accumulated

 

Book

 

Carrying

 

Accumulated

 

Book

 

(in millions)

 

(in years)

 

Amount

 

Depreciation

 

Value

 

Amount

 

Depreciation

 

Value

 

QuickBird

 
12.2 

 

$

 —

 

$

 —

 

$

 —

 

$
174.4 

 

$
(174.4)

 

$

 —

 

IKONOS

 
9.0 

 

 
1.0 

 

 
(1.0)

 

 

 —

 

 
1.0 

 

 
(1.0)

 

 

 —

 

GeoEye-1

 
9.0 

 

 
211.8 

 

 
(91.8)

 

 
120.0 

 

 
211.8 

 

 
(81.2)

 

 
130.6 

 

WorldView-1

 
13.0 

 

 
473.2 

 

 
(323.4)

 

 
149.8 

 

 
473.2 

 

 
(316.8)

 

 
156.4 

 

WorldView-2

 
13.0 

 

 
463.2 

 

 
(215.8)

 

 
247.4 

 

 
463.2 

 

 
(207.9)

 

 
255.3 

 

WorldView-3

 
11.5 

 

 
649.5 

 

 
(28.2)

 

 
621.3 

 

 
649.5 

 

 
(14.1)

 

 
635.4 

 

Satellites, net

 

 

 

$
1,798.7 

 

$
(660.2)

 

$
1,138.5 

 

$
1,973.1 

 

$
(795.4)

 

$
1,177.7 

 

 

Our WorldView-4 satellite is classified as construction in progress. During the first quarter of 2015, we removed WorldView-4 from storage to commence work on certain necessary enhancements. On commencement of the work, we also began capitalizing interest to the satellite.