6. Satellite Network and Other Equipment

Satellite network and other equipment consisted of the following:

	Useful life	June 30,			December 31,
	(years)	2016			2015
Land		$	381		$	381
Satellite network	1-10		244,541			104,088
Capitalized software	3-7		21,851			13,201
Computer hardware	3		4,414			4,027
Other	2-7		7,121			6,853
Assets under construction			11,340			147,288
			289,648			275,838
Less: accumulated depreciation and amortization			(57,481	)		(45,868	)
		$	232,167		$	229,970

During the quarters ended June 30, 2016 and 2015, the Company capitalized costs attributable to the design and development of internal-use software in the amount of $1,233 and $877, respectively. During the six months ended June 30, 2016 and 2015, the Company capitalized costs attributable to the design and development of internal-use software in the amount of $2,188 and $1,770, respectively.

Depreciation and amortization expense for the quarters ended June 30, 2016 and 2015 was $8,483 and $4,005, respectively, including amortization of internal-use software of $794 and $408, respectively. Depreciation and amortization expense for the six months ended June 30, 2016 and 2015 was $14,380 and $7,851, respectively, including amortization of internal-use software of $1,645 and $784, respectively.

As of June 30, 2016, assets under construction primarily consist of costs associated with acquiring, developing and testing software and hardware for internal and external use that have not yet been placed into service. As of December 31, 2015, 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.

During the quarter ended March 31, 2016, the Company recorded an impairment loss on one of its leased AIS satellites. Upon abandonment of the satellite, the Company no longer expects future cash flows to be generated from this asset. The impairment loss of $466 was determined based on the net carrying value of the asset at the time of the impairment and was recorded in depreciation and amortization in the condensed consolidated statement of operations in the quarter ended March 31, 2016. In addition, the Company decreased satellite network and other equipment, net and the associated accumulated depreciation on the condensed consolidated balance sheet by $2,374 and $1,908, respectively, as of June 30, 2016.

On December 21, 2015, the Company launched the remaining 11 of its OG2 satellites aboard a Space Exploration Technologies Corp. (“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. As a result of the 11 OG2 satellites being placed into service, the Company reclassified $137,772 of costs out of assets under construction and into satellite network on March 1, 2016, and began depreciating the satellites over an estimated 10-year life. During the six months ended June 30, 2016 and 2015, the Company recorded $8,949 and $4,501 of depreciation in connection with its OG2 satellite constellation, respectively.

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 condensed 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, net and the associated accumulated depreciation on the condensed consolidated balance sheet by $13,788 and $1,040, respectively, as of December 31, 2015.

In January 2015, the Company lost communication with one of its OG1 Plane B 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 re-established communication with the Company’s ground stations. There was no impact on the condensed consolidated balance sheet for the re-establishment of communications with this satellite.