Property and Equipment

6 Months Ended

Jun. 30, 2014

Property, Plant and Equipment [Abstract]

Property and Equipment

PROPERTY AND EQUIPMENT

Property and equipment consists of the following (in thousands):

	June 30, 2014			December 31, 2013
Globalstar System:
Space component
Second-generation satellites in service	$	1,212,099		$	1,212,099
Prepaid long-lead items	17,040			17,040
Second-generation satellite, on-ground spare	32,365			32,365
Ground component	48,766			48,378
Construction in progress:
Space component	72			—
Ground component	121,144			116,377
Other	1,445			1,115
Total Globalstar System	1,432,931			1,427,374
Internally developed and purchased software	15,921			14,931
Equipment	12,531			12,385
Land and buildings	3,866			3,768
Leasehold improvements	1,672			1,644
Total property and equipment	1,466,921			1,460,102
Accumulated depreciation	(335,037		)	(290,317		)
Total property and equipment, net	$	1,131,884		$	1,169,785

Amounts in the above table consist primarily of costs incurred related to the construction of the Company’s second-generation constellation and ground upgrades. Amounts included in the Company’s second-generation satellite, on-ground spare balance as of June 30, 2014 consist of costs related to a spare second-generation satellite that is capable of being included in a future launch of satellites. As of June 30, 2014, this satellite and the prepaid long-lead items have not been placed into service and therefore the Company has not yet recorded depreciation expense for these items.

Capitalized Interest and Depreciation Expense

The following tables summarize capitalized interest for the periods indicated below (in thousands):

	Three Months Ended						Six Months Ended
	June 30, 2014			June 30, 2013			June 30, 2014			June 30, 2013
Interest cost eligible to be capitalized	$	11,361		$	11,927		$	23,615		$	25,732
Interest cost recorded in interest expense, net	(9,395		)	(7,484		)	(19,808		)	(14,151		)
Net interest capitalized	$	1,966		$	4,443		$	3,807		$	11,581

The following table summarizes depreciation expense for the periods indicated below (in thousands):

	Three Months Ended				Six Months Ended
	June 30, 2014		June 30, 2013		June 30, 2014		June 30, 2013
Depreciation Expense	$	21,377	$	21,817	$	44,386	$	41,690