Property and Equipment

3 Months Ended

Mar. 31, 2015

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.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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