Supplemental Financial Information

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

SUPPLEMENTAL FINANCIAL INFORMATION

Noncash Investing and Financing Activities



	For The Six Months Ended June 30,
	2018			2017
	(in thousands)
Employee benefits paid in Class A common stock	$	7,605		$	11,200
Property and equipment financed under capital lease obligations	$	123		$	8,189
Decrease in capital expenditures included in accounts payable, net	$	(8,467	)	$	(3,404	)
Capitalized in-orbit incentive obligations	$	—		$	43,890
Noncash net assets exchanged for Tracking Stock (Note 1)	$	—		$	299,425

Restricted Cash and Cash Equivalents

The beginning and ending balances of cash and cash equivalents presented in our Condensed Consolidated Statements of Cash Flows included restricted cash and cash equivalents of $0.8 million and $0.8 million, respectively, for the six months ended June 30, 2018 and $0.7 million and $0.8 million, respectively, for the six months ended June 30, 2017. These amounts are included in Other noncurrent assets, net in our Condensed Consolidated Balance Sheets.

Fair Value of In-Orbit Incentives

As of June 30, 2018 and December 31, 2017, the fair values of our in-orbit incentive obligations, based on measurements categorized within Level 2 of the fair value hierarchy, approximated their carrying amounts of $108.9 million and $112.2 million, respectively.

Contract Acquisition and Fulfillment Costs

Unamortized contract acquisition costs totaled $103.6 million as of June 30, 2018 and related amortization expense totaled $20.7 million and $40.7 million for the three and six months ended June 30, 2018, respectively.

Unamortized contract fulfillment costs totaled $3.3 million as of June 30, 2018 and related amortization expense was de minimis for the three and six months ended June 30, 2018.

Research and Development

The table below summarizes the research and development costs incurred in connection with customers’ orders included in cost of sales and other expenses we incurred for research and development.



	For the three months ended June 30,				For the six months ended June 30,
	2018		2017		2018		2017
	(In thousands)
Cost of sales	$	6,290	$	6,785	$	12,888	$	13,686
Research and development	$	6,647	$	7,437	$	13,784	$	15,142

Capitalized Software Costs

As of June 30, 2018 and December 31, 2017, the net carrying amount of externally marketed software was $91.9 million and $88.1 million, respectively, of which $28.3 million and $19.6 million, respectively, is under development and not yet placed in service. We capitalized costs related to the development of externally marketed software of $7.9 million and $6.3 million for the three months ended June 30, 2018 and 2017, respectively, and $15.0 million and $17.1 million for the six months ended June 30, 2018 and 2017, respectively. We recorded amortization expense relating to the development of externally marketed software of $5.6 million and $5.3 million for the three months ended June 30, 2018 and 2017, respectively, and $11.1 million and $8.6 million for the six months ended June 30, 2018 and 2017, respectively. The weighted average useful life of our externally marketed software was approximately four years as of June 30, 2018.