6. Satellite Network and Other Equipment

Satellite network and other equipment consisted of the following:


	Useful life (years)		June 30, 2015			December 31, 2014
Land			$	381		$	381
Satellite network		1-10		105,159			116,444
Capitalized software		3-7		10,008			7,013
Computer hardware		3		3,548			2,761
Other		2-7		6,385			4,703
Assets under construction				102,656			81,099

				228,137			212,401
Less: accumulated depreciation and amortization				(38,454	)		(31,780	)

			$	189,683		$	180,621

During the six months ended June 30, 2015 and 2014, the Company capitalized costs attributable to the design and development of internal-use software in the amount of $1,770 and $1,405, respectively.

Depreciation and amortization expense for the quarters ended June 30, 2015 and 2014 was $4,005 and $1,401, respectively, including amortization of internal-use software of $408 and $224, respectively. Depreciation and amortization expense for the six months ended June 30, 2015 and 2014 was $7,851 and $2,738, respectively, including amortization of internal-use software of $784 and $410, respectively.

Assets under construction primarily consist of milestone payments pursuant to procurement agreements, which includes the design, development, launch and other direct costs relating to the construction of the next-generation satellites and upgrades to its infrastructure and ground segment. Refer to “Note 15 – Commitments and Contingencies” for more information regarding the construction of the Company’s next-generation satellites.

In January 2015, the Company lost communication with one of its first generation Plane B satellites. During the quarter ended March 31, 2015, the Company removed $137 from satellite network and accumulated depreciation, respectively, representing the fully depreciated value of the satellite.

In June 2015 the Company lost communication with one of the in-orbit OG2 satellites. The Company is conducting an on-going Failure Review Board (“FRB”) investigation led by the satellite prime contractor Sierra Nevada Corporation (“SNC”) with extensive support from the payload subcontractor Boeing and the Company’s engineers. On August 4, 2015, due to the extended period of no communication with the satellite, the Company’s Audit Committee of the Board of Directors concluded, based on management’s recommendation, that a non-cash impairment charge of $12,748 should be recorded as a recognized subsequent event in accordance with FASB ASC Topic 855 “Subsequent Events” to write-off the net book value of the satellite for the quarter ended June 30, 2015 and decreased satellite network and other equipment by $13,788 and associated accumulated depreciation by $1,040 to remove the asset as of June 30, 2015. The impairment charge is reflected in the accompanying condensed consolidated financial statements. No amount of the impairment charge represents a cash expenditure and the Company does not expect that this impairment will result in any future cash expenditure.