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Satellite Network and Other Equipment
6 Months Ended
Jun. 30, 2018
Property Plant And Equipment [Abstract]  
Satellite Network and Other Equipment

6. Satellite Network and Other Equipment

Satellite network and other equipment, net consisted of the following:

 

 

 

June 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Land

 

$

381

 

 

$

381

 

Satellite network

 

 

194,615

 

 

 

193,292

 

Capitalized software

 

 

56,308

 

 

 

45,062

 

Computer hardware

 

 

5,195

 

 

 

5,189

 

Other

 

 

5,925

 

 

 

5,276

 

Assets under construction

 

 

15,487

 

 

 

16,539

 

 

 

 

277,911

 

 

 

265,739

 

Less: accumulated depreciation and amortization

 

 

(109,187

)

 

 

(91,561

)

 

 

$

168,724

 

 

$

174,178

 

 

During the quarters ended June 30, 2018 and 2017, the Company capitalized internal costs attributable to the design, development and enhancements of the Company’s products and services and internal-use software in the amount of $3,267 and $3,374, respectively.  During the six months ended June 30, 2018 and 2017, the Company capitalized internal costs attributable to the design, development and enhancements of the Company’s products and services and internal-use software in the amount of $7,074 and $6,610, respectively.

Depreciation and amortization expense for the quarters ended June 30, 2018 and 2017 was $8,615 and $8,710, respectively, including amortization of internal-use software of $836 and $1,485, respectively.  Depreciation and amortization expense for the six months ended June 30, 2018 and 2017 was $17,557 and $17,040, respectively, including amortization of internal-use software of $1,772 and $2,835, respectively.

For the quarters ended June 30, 2018 and 2017, 50% and 62% of depreciation and amortization expense, respectively, relate to cost of services and 9% and 8%, respectively, relate to cost of product sales, as these assets support the Company’s revenue generating activities. For the six months ended June 30, 2018 and 2017, 49% and 64% of depreciation and amortization expense, respectively, relate to cost of services and 10% and 8%, respectively, relate to cost of product sales, as these assets support the Company’s revenue generating activities.

As of June 30, 2018 and December 31, 2017, assets under construction primarily consisted of costs associated with acquiring, developing and testing software and hardware for internal and external use that have not yet been placed into service.