	2016	2015

PASSUR Network, beginning balance	$ 18,360,000	$ 16,871,000
Additions	-776138 776,000	-1489117 1,489,000
Total capitalized PASSUR Network costs	19,136,000	18,360,000
Less accumulated depreciation	13,396,000	12,457,000
PASSUR Network, ending balance, net	$ 5,740,000	$ 5,903,000
	5739753	5902751

The Company capitalized $776,000 and $1,489,000 of costs to the PASSUR Network during fiscal years 2016 and 2015, respectively. Depreciation expense related to the Company-owned PASSUR Network was $939,000 and $1,015,000 in fiscal years 2016 and 2015, respectively. Depreciation is charged to cost of revenues and is calculated using the straight-line method over the estimated useful life of the asset, which is estimated at seven and five years for PASSUR and SMLAT systems, respectively.

The net carrying balance of the PASSUR Network as of October 31, 2016 and October 31, 2015, was $5,740,000 and $5,903,000, respectively. Included in the net carrying balance as of October 31, 2016, were parts and finished goods for PASSUR and SMLAT Systems totaling $1,000,000 and $1,767,000, respectively, which have not yet been installed. As of October 31, 2015, $1,188,000 and $1,625,000 of parts and finished goods for PASSUR and SMLAT systems, respectively, were included in the net carrying balance of the PASSUR Network. PASSUR and SMLAT Systems which are not installed are carried at cost and not depreciated until installed.

As of October 31, 2016, depreciation expense for the PASSUR Network assets where depreciation has commenced is estimated to approximate $739,000, $576,000, $506,000, $435,000, and $191,000, for the fiscal years ended October 31, 2017, 2018, 2019, 2020 and 2021, respectively. The Company did not dispose of or record any impairments related to any of the PASSUR Network assets in fiscal years 2016 or 2015.

During fiscal year 2016, the Company paid the son of an Executive Vice President and Director approximately $17,000 as a consultant to assist in the installation and maintenance of the PASSUR Network.