3. Construction in Process

3 Months Ended

Mar. 31, 2017

Construction In Process

Construction in Process

The cost of equipment and materials purchased, and contract labor incurred, for the construction of network, plant property and equipment, and the installation of registered links on behalf of customers is held in Construction in Process until construction is completed. No depreciation or amortization is applied to Construction in Process. Once construction is complete and network element is placed in service, the costs are either capitalized or expensed as cost of goods sold as appropriate.