Note 6. Satellite Network and Other Equipment

Satellite network and other equipment consisted of the following:

	December 31,
	2015			2014
Land	$	381		$	381
Satellite network		104,088			116,444
Capitalized software		13,201			7,013
Computer hardware		4,027			2,761
Other		6,853			4,703
Assets under construction		147,288			81,099
		275,838			212,401
Less: accumulated depreciation and amortization		(45,868	)		(31,780	)
	$	229,970		$	180,621

During the years ended December 31, 2015, 2014 and 2013, the Company capitalized costs attributable to the design and development of internal-use software in the amount of $4,958, $2,777 and $1,754 respectively.

Depreciation and amortization expense for the years ended December 31, 2015, 2014 and 2013 was $15,371, $8,061 and $4,616, respectively. This includes amortization of internal-use software of $1,733, $969 and $611 for the years ended December 31, 2015, 2014 and 2013, 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 OG2 satellites and upgrades to its infrastructure and ground segment. Refer to “Note 16 — Commitments and Contingencies” for more information regarding the construction of the Company’s OG2 satellites.

On July 14, 2014, the Company launched six of its OG2 satellites aboard a Space Exploration Technologies Corp. (“SpaceX”) Falcon 9 launch vehicle. On September 15, 2014, following an in-orbit testing period, the Company initiated commercial service for the six OG2 satellites. The satellites provide both M2M and IoT messaging and AIS service for its global customers. As a result of the six satellites being placed into service, the Company reclassified $82,725 of costs out of assets under construction and into satellite network on September 15, 2014, and began depreciating the satellites over a 10-year life. During the years ended December 31, 2015 and 2014, the Company recorded $6,957 and $2,431 of depreciation in connection with the satellites placed into service, respectively.

During the year ended December 31, 2014, the Company recorded an impairment loss on one of the Company’s AIS satellites. Upon abandonment of the satellite on December 15, 2014, the Company no longer expects future cash flows to be generated from this asset. The impairment loss of $605 was determined based on the carrying value of the asset at the time of the impairment and was recorded in the statement of operations in the year ended December 31, 2014. As a result, the Company decreased the Satellite network by $1,477 and associated accumulated depreciation by $872 to write off and fully depreciate the asset.

In January 2015, the Company lost communication with one of its OG1 Plane D satellites. In 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 September 2015, the satellite reestablished communication with the Company’s ground stations. There was no impact on the consolidated balance sheet for the reestablishment of communications with this satellite.

In June 2015, the Company lost communication with one of its in-orbit OG2 satellites. The Company recorded a non-cash impairment charge of $12,748 on the consolidated statement of operations in the quarter ended June 30, 2015 to write off the net book value of the satellite. In addition, the Company decreased satellite network and other equipment and the associated accumulated depreciation on the consolidated balance sheet by $13,788 and $1,040, respectively.

On December 21, 2015, the Company launched the remaining 11 of its OG2 satellites aboard a SpaceX Falcon 9 launch vehicle. On March 1, 2016, following an in-orbit testing period, the Company initiated commercial service for the 11 OG2 satellites. The satellites provide both M2M and IoT messaging and AIS service for its global customers. These satellites were not in service as of December 31, 2015.