Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | GOGO | |
Entity Registrant Name | Gogo Inc. | |
Entity Central Index Key | 1,537,054 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 87,004,342 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 117,039 | $ 196,356 |
Short-term investments | 182,633 | 212,792 |
Total cash, cash equivalents and short-term investments | 299,672 | 409,148 |
Accounts receivable, net of allowances of $547 and $587, respectively | 131,738 | 117,896 |
Inventories | 168,782 | 45,543 |
Prepaid expenses and other current assets | 28,638 | 20,310 |
Total current assets | 628,830 | 592,897 |
Non-current assets: | ||
Property and equipment, net | 530,687 | 656,038 |
Goodwill and intangible assets, net | 84,498 | 87,133 |
Other non-current assets | 56,127 | 67,107 |
Total non-current assets | 671,312 | 810,278 |
Total assets | 1,300,142 | 1,403,175 |
Current liabilities: | ||
Accounts payable | 42,149 | 27,130 |
Accrued liabilities | 163,521 | 201,815 |
Deferred revenue | 36,227 | 43,448 |
Deferred airborne lease incentives | 29,472 | 42,096 |
Current portion of capital leases | 1,468 | 1,789 |
Total current liabilities | 272,837 | 316,278 |
Non-current liabilities: | ||
Long-term debt | 1,006,442 | 1,000,868 |
Deferred airborne lease incentives | 124,653 | 142,938 |
Other non-current liabilities | 87,546 | 134,655 |
Total non-current liabilities | 1,218,641 | 1,278,461 |
Total liabilities | 1,491,478 | 1,594,739 |
Commitments and contingencies (Note 12) | ||
Stockholders' deficit | ||
Common stock, par value $0.0001 per share; 500,000,000 shares authorized at March 31, 2018 and December 31, 2017; 87,207,013 and 87,062,578 shares issued at March 31, 2018 and December 31, 2017, respectively; and 87,007,075 and 86,843,928 shares outstanding at March 31, 2018 and December 31, 2017, respectively | 9 | 9 |
Additional paid-in-capital | 903,045 | 898,729 |
Accumulated other comprehensive loss | (1,767) | (933) |
Accumulated deficit | (1,092,623) | (1,089,369) |
Total stockholders' deficit | (191,336) | (191,564) |
Total liabilities and stockholders' deficit | $ 1,300,142 | $ 1,403,175 |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowances on accounts receivable | $ 547 | $ 587 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 87,207,013 | 87,062,578 |
Common stock, shares outstanding | 87,007,075 | 86,843,928 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue: | ||
Service revenue | $ 150,678 | $ 146,495 |
Equipment revenue | 81,147 | 18,911 |
Total revenue | 231,825 | 165,406 |
Operating expenses: | ||
Cost of service revenue (exclusive of items shown below) | 74,947 | 64,813 |
Cost of equipment revenue (exclusive of items shown below) | 52,293 | 11,648 |
Engineering, design and development | 29,777 | 36,264 |
Sales and marketing | 15,901 | 14,395 |
General and administrative | 25,159 | 22,549 |
Depreciation and amortization | 35,919 | 30,435 |
Total operating expenses | 233,996 | 180,104 |
Operating loss | (2,171) | (14,698) |
Other (income) expense: | ||
Interest income | (1,076) | (545) |
Interest expense | 30,554 | 26,943 |
Other (income) expense | (505) | 38 |
Total other expense | 28,973 | 26,436 |
Loss before income taxes | (31,144) | (41,134) |
Income tax provision (benefit) | (3,725) | 233 |
Net loss | $ (27,419) | $ (41,367) |
Net loss attributable to common stock per share-basic and diluted | $ (0.34) | $ (0.52) |
Weighted average number of shares-basic and diluted | 79,696 | 79,139 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (27,419) | $ (41,367) |
Currency translation adjustments | (834) | 226 |
Comprehensive loss | $ (28,253) | $ (41,141) |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Operating activities: | |||
Net loss | $ (27,419) | $ (41,367) | |
Adjustments to reconcile net loss to cash used in operating activities: | |||
Depreciation and amortization | 35,919 | 30,435 | |
Loss on asset disposals, abandonments and write-downs | 1,687 | 2,165 | |
Gain on transition to airline-directed model | (19,302) | ||
Deferred income taxes | (3,863) | 317 | |
Stock-based compensation expense | 4,386 | 4,330 | |
Amortization of deferred financing costs | 1,035 | 896 | |
Accretion and amortization of debt discount and premium | 4,539 | 4,508 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (14,046) | (2,872) | |
Inventories | (12,304) | (969) | |
Prepaid expenses and other current assets | (896) | 8,296 | |
Accounts payable | 11,755 | 1,094 | |
Accrued liabilities | (6,787) | (5,626) | |
Deferred airborne lease incentives | (1,834) | 3,559 | |
Deferred revenue | 5,440 | 2,586 | |
Accrued interest | (24,955) | (20,867) | |
Other non-current assets and liabilities | 440 | (532) | |
Net cash used in operating activities | (46,205) | (14,047) | |
Investing activities: | |||
Purchases of property and equipment | (56,886) | (63,655) | |
Acquisition of intangible assets-capitalized software | (5,772) | (7,953) | |
Purchases of short-term investments | (39,323) | (109,439) | |
Redemptions of short-term investments | 69,482 | 114,641 | |
Net cash used in investing activities | (32,499) | (66,406) | |
Financing activities: | |||
Proceeds from the issuance of senior secured notes | 70,200 | ||
Payment of issuance costs | (1,120) | ||
Payments on capital leases | (618) | (697) | |
Stock-based compensation activity | (70) | 555 | |
Net cash provided by (used in) financing activities | (688) | 68,938 | |
Effect of exchange rate changes on cash | 75 | 142 | |
Decrease in cash, cash equivalents and restricted cash | (79,317) | (11,373) | |
Cash, cash equivalents and restricted cash at beginning of period | 203,729 | 125,189 | $ 125,189 |
Cash, cash equivalents and restricted cash at end of period | 124,412 | 113,816 | 203,729 |
Less: current restricted cash | 738 | 614 | |
Less: non-current restricted cash | 6,635 | 7,273 | |
Cash and cash equivalents at end of period | 117,039 | 105,929 | $ 196,356 |
Supplemental Cash Flow Information: | |||
Cash paid for interest | 49,911 | 42,698 | |
Cash paid for taxes | 15 | 9 | |
Noncash Investing and Financing Activities: | |||
Purchases of property and equipment in current liabilities | 23,325 | 49,043 | |
Purchases of property and equipment paid by commercial airlines | 2,060 | 3,408 | |
Purchases of property and equipment under capital leases | 1,155 | ||
Acquisition of intangible assets in current liabilities | 653 | 1,534 | |
Asset retirement obligation incurred and adjustments | $ 4 | $ 425 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The Business - in-flight “CA-NA,” “CA-ROW,” CA-NA CA-ROW Wi-Fi-enabled in-flight Wi-Fi CA-NA CA-ROW CA-ROW in-flight in-flight in-flight in-flight Basis of Presentation S-X 10-K 10-K”). The results of operations and cash flows for the three month period ended March 31, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2018. We have one class of common stock outstanding as of March 31, 2018 and December 31, 2017. Reclassifications non-current non-current Transition to airline-directed model non-current non-current non-current in thousands Increase Unaudited condensed consolidated balance sheet Prepaid expense and other current assets $ 6,603 Property and equipment, net (34,965 ) Other non-current 18,783 Accrued liabilities 2,000 Current deferred airborne lease incentive (13,592 ) Non-current (17,289 ) Unaudited condensed consolidated statement of operations Equipment revenue 45,396 Cost of equipment revenue 26,094 Use of Estimates Under agreements with certain of our airline partners to upgrade our equipment on certain aircraft or decommission certain aircraft on which our equipment is installed, on a quarterly basis we reassess the useful life of the affected equipment. As a result, we shorten the useful lives of the affected equipment to be consistent with the estimated upgrade date or aircraft decommissioning date, as applicable. We also shorten the related remaining amortization period for deferred airborne lease incentives for certain equipment on aircraft to be decommissioned. The change in estimated useful lives related to these events resulted in increases in depreciation expense of $4.3 million in the three months ended March 31, 2018 and increases in the amortization of deferred airborne lease incentives, which reduced our cost of service revenue of $1.0 million in the three months ended March 31, 2018. As a result, net loss per basic and fully diluted share increased by $0.04 for the three month period ended March 31, 2018. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements Revenue recognition related new pronouncements: On January 1, 2018, we adopted Accounting Standards Codification Topic 606, Revenue From Contracts With Customers Prior to the adoption of ASC 606, equipment revenue (and related cost) under some of our CA-NA CA-ROW In conjunction with the adoption of ASC 606, we also adopted Accounting Standard Codification Subtopic 340-40, Other Assets and Deferred Costs – Contracts with Customers 340-40”), 340-40, 340-40 The cumulative effect of the adoption of ASC 606 and ASC 340-40 in thousands) Balance at Balance at December 31, January 1, 2017 Adjustments 2018 Assets Inventories $ 45,543 $ 974 $ 46,517 Prepaid expenses and other current assets 20,310 603 20,913 Property and equipment, net 656,038 (2,966 ) 653,072 Other non-current 67,107 (30,006 ) 37,101 Liabilities Current deferred revenue 43,448 (7,182 ) 36,266 Other non-current 134,655 (48,378 ) 86,277 Equity Accumulated deficit (1,089,369 ) 24,165 (1,065,204 ) See Note 3, “Revenue Recognition,” for additional information. On January 1, 2018, we adopted ASU 2016-04, Recognition of Breakage for Certain Prepaid Stored-Value Products 2016-04”), All other new pronouncements: In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases 2016-02”), 2016-02 2016-02 2016-02 On January 1, 2018, we adopted ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments 2016-15”), Statement of Cash Flows 2016-15. On January 1, 2018, we adopted ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory 2016-16”), Income Taxes On January 1, 2018, we adopted ASU 2016-18, Restricted Cash – A Consensus of the FASB Emerging Issues Task Force 2016-18”), Statement of Cash Flows On January 1, 2018, we adopted ASU 2017-09, Scope of Modification Accounting 2017-09”), Compensation – Stock Compensation In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income 2018-02”) , 2018-02 2018-02 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 3. Revenue Recognition Our revenue is primarily earned from providing connectivity and entertainment services and through sales of equipment. Additionally, to a lesser extent, we earn revenue from providing ancillary services, including installation and Connected Aircraft Services (“CAS”). We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue as we satisfy the performance obligations For CA-NA CA-ROW, CA-NA CA-ROW CA-NA CA-ROW Airline-directed connectivity revenue: As noted above, under the airline-directed model, the airline is our customer and we earn service revenue as connectivity services are consumed directly by the airline or indirectly by passengers. Turnkey connectivity revenue (passenger connectivity): Under the turnkey model, passenger connectivity revenue is generated by services paid for by passengers, airlines and third parties. Passenger paid revenue represents point-of-sale Third party and airline paid revenue is generated by sales of connectivity services to airlines or third parties in sponsorship, wholesale, enterprise and roaming arrangements. Sponsorship revenue is recognized over the sponsorship term. Revenue from wholesale, enterprise and roaming arrangements is recognized as sessions are used by the passenger. Entertainment revenue: Entertainment revenue consists of entertainment services we provide to the airline for use by its passengers. Revenue is recognized as the services are provided to the airline. CAS: CAS includes, among other things, real-time credit card transaction processing, electronic flight bags and real-time weather information. Revenue is recognized as the service is provided. BA Service Revenue BA service revenue primarily consists of monthly subscription and usage fees paid by aircraft owners and operators for telecommunication, data, and in-flight Equipment Revenue Equipment revenue primarily consists of the sale of ATG and satellite connectivity equipment and the sale of entertainment equipment. CA-NA CA-ROW Equipment revenue also includes revenue generated by the installation of the connectivity or entertainment equipment on commercial aircraft, which is recognized when the installation is complete. Contract price and allocation considerations Our CA-NA CA-ROW cost-plus The contractual consideration used for allocation purposes includes connectivity and entertainment services, which may be based on a fixed monthly fee per aircraft or a variable fee based on the volume of connectivity activity, or a combination of both. Examples of variable consideration within our contracts include megabyte overages and pay-per-use A significant change in one or more of these estimates could affect our estimated contract value, and we regularly review and update our estimates and recognize adjustments under the cumulative catch-up As of March 31, 2018, the aggregate amount of the transaction price in our contracts allocated to the remaining unsatisfied performance obligations is approximately $895 million, most of which relates to our commercial aviation contracts. Approximately $145 million represents future equipment revenue that is expected to be recognized within the next 1-3 5-10 Disaggregation of revenue The following table presents our revenue disaggregated by category for the three-month period ended March 31, 2018 (in thousands) For the Three Months Ended March 31, 2018 CA-NA CA-ROW BA Total Service revenue Connectivity $ 82,040 $ 13,649 $ 47,392 $ 143,081 Entertainment, CAS and other 6,743 596 258 7,597 Total service revenue $ 88,783 $ 14,245 $ 47,650 $ 150,678 Equipment revenue ATG (1) $ 44,762 $ — $ 15,421 $ 60,183 Satellite (1) 10,276 4,924 4,258 19,458 Other — — 1,506 1,506 Total equipment revenue $ 55,038 $ 4,924 $ 21,185 $ 81,147 Customer type Airline passenger and aircraft owner/operator $ 52,924 $ 4,729 $ 47,650 $ 105,303 Airline, OEM and aftermarket dealer (2) 77,426 12,694 21,185 111,305 Third party 13,471 1,746 — 15,217 Total revenue $ 143,821 $ 19,169 $ 68,835 $ 231,825 1) ATG and satellite equipment revenue for the CA-NA 2) Airline, OEM and aftermarket dealer revenue includes all equipment revenue for our three segments, including the $45.4 million accounting impact of the transition of one of our airlines partners to the airline-directed model. Contract balances Our current and non-current Our current and non-current Our STC balances were $8.4 million and $7.6 million as of March 31, 2018, and January 1, 2018, respectively. We recognized $0.2 million of deferred STC costs as part of our engineering, design and development costs in our unaudited condensed consolidated statement of operations during the three month period ended March 31, 2018. As noted above, STC costs for our airline-directed contracts are capitalized and expensed on a straight-line basis over the life of the contract. Impact of adoption of ASC 606 The following table presents the post adoption impact of ASC 606 on our unaudited condensed consolidated balance sheet and the statement of operations (in thousands) As of March 31, 2018 Balances Without As Impact of Adoption of Reported ASC 606 ASC 606 Assets Prepaid expenses and other current assets $ 28,638 $ (458 ) $ 28,180 Other non-current 56,127 73,664 129,791 Liabilities Current deferred revenue 36,227 20,086 56,313 Other non-current 87,546 85,252 172,798 Equity Accumulated deficit (1,092,623 ) (24,165 ) (1,116,788 ) For the Three Month Period Ended March 31, 2018 Balances Without As Impact of Adoption of Reported ASC 606 ASC 606 Revenue: Service revenue $ 150,678 $ 4,392 $ 155,070 Equipment revenue 81,147 (50,658 ) 30,489 Operating expenses: Cost of equipment revenue 52,293 (39,150 ) 13,143 Engineering, design and development 29,777 851 30,628 Net loss (27,419 ) (7,967 ) (35,386 ) |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 4. Net Loss Per Share Basic and diluted net loss per share have been calculated using the weighted average number of common shares outstanding for the period. The shares of common stock effectively repurchased in connection with the Forward Transactions (as defined and described in Note 9, “Long-Term Debt and Other Liabilities”) are considered participating securities requiring the two-class As a result of the net loss for the three month periods ended March 31, 2018 and 2017, all of the outstanding shares of common stock underlying stock options, deferred stock units and restricted stock units were excluded from the computation of diluted shares outstanding because they were anti-dilutive. The following table sets forth the computation of basic and diluted earnings per share for the three month periods ended March 31, 2018 and 2017; however, because of the undistributed losses, the shares of common stock associated with the Forward Transactions are excluded from the computation of basic earnings per share in 2018 and 2017 as undistributed losses are not allocated to these shares ( in thousands, except per share amounts For the Three Months Ended March 31, 2018 2017 Net loss $ (27,419 ) $ (41,367 ) Less: Participation rights of the Forward Transactions — — Undistributed losses $ (27,419 ) $ (41,367 ) Weighted-average common shares outstanding-basic and diluted 79,696 79,139 Net loss attributable to common stock per share-basic and diluted $ (0.34 ) $ (0.52 ) |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | 5. Inventories Inventories consist primarily of telecommunications systems and parts, and are recorded at the lower of cost (average cost) or market. We evaluate the need for write-downs associated with obsolete, slow-moving, and nonsalable inventory by reviewing net realizable inventory values on a periodic basis. Inventories as of March 31, 2018 and December 31, 2017 were as follows ( in thousands March 31, December 31, 2018 2017 Work-in-process $ 32,458 $ 35,009 Finished goods (1) 136,324 10,534 Total inventory $ 168,782 $ 45,543 (1) The increase in our inventories is primarily due to the allocation of a portion of our uninstalled airborne equipment ( i.e. CA-NA CA-ROW CA-NA CA-ROW |
Composition of Certain Balance
Composition of Certain Balance Sheet Accounts | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Composition of Certain Balance Sheet Accounts | 6. Composition of Certain Balance Sheet Accounts Property and equipment as of March 31, 2018 and December 31, 2017 were as follows ( in thousands March 31, December 31, 2018 2017 Office equipment, furniture, fixtures and other $ 47,849 $ 46,445 Leasehold improvements 43,417 42,522 Airborne equipment (1) (2) 591,297 765,652 Network equipment 200,140 199,304 882,703 1,053,923 Accumulated depreciation (1) (352,016 ) (397,885 ) Property and equipment, net $ 530,687 $ 656,038 (1) Changes between March 31, 2018 and December 31, 2017 relate to the accounting impact of the transition of one of our airline partner agreements to the airline-directed model (see Note 1, “Basis of Presentation,” for additional information) and the adoption of ASC 606 (see Note 2, “New Accounting Pronouncements,” for additional information). (2) Changes between March 31, 2018 and December 31, 2017 also relates to the allocation of uninstalled airborne equipment to inventory (see Note 5, “Inventories,” for additional information). Other non-current in thousands March 31, December 31, 2018 2017 Contract Assets (1) $ 21,502 $ — Deferred STC costs (1) 8,411 — Deferred cost of equipment revenue (1) — 40,986 Restricted cash 6,635 6,873 Other 19,579 19,248 Total other non-current $ 56,127 $ 67,107 (1) Changes between March 31, 2018 and December 31, 2017 are primarily due to the adoption of ASC 606. See Note 2, “New Accounting Pronouncements,” for additional information. Accrued liabilities as of March 31, 2018 and December 31, 2017 were as follows ( in thousands March 31, December 31, 2018 2017 Employee compensation and benefits $ 16,865 $ 25,621 Airborne equipment and installation costs 24,551 44,059 Airline related accrued liabilities 17,146 13,566 Accrued interest 22,694 47,649 Accrued revenue share 12,768 17,339 Other 69,497 53,581 Total accrued liabilities $ 163,521 $ 201,815 Other non-current in thousands March 31, December 31, 2018 2017 Deferred revenue (1) $ 30,293 $ 73,192 Deferred rent 37,152 37,354 Asset retirement obligations 9,869 9,668 Deferred tax liabilities 2,120 5,983 Other 8,112 8,458 Total other non-current $ 87,546 $ 134,655 (1) Changes between March 31, 2018 and December 31, 2017 are primarily due to the adoption of ASC 606. See Note 2, “New Accounting Pronouncements,” for additional information. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 7. Intangible Assets Our intangible assets are comprised of both indefinite-lived and finite-lived intangible assets. Intangible assets with indefinite lives and goodwill are not amortized, but are reviewed for impairment at least annually or whenever events or circumstances indicate the carrying value of the asset may not be recoverable. We perform our annual impairment tests of our indefinite-lived intangible assets and goodwill during the fourth quarter of each fiscal year. We also reevaluate the useful life of indefinite-lived intangible assets each reporting period to determine whether events and circumstances continue to support an indefinite useful life. The results of our annual indefinite-lived intangible assets and goodwill impairment assessments in the fourth quarter of 2017 indicated no impairment. As of both March 31, 2018 and December 31, 2017, our goodwill balance, all of which related to our BA segment, was $0.6 million. Our intangible assets, other than goodwill, as of March 31, 2018 and December 31, 2017 were as follows ( in thousands, except for weighted average remaining useful life Weighted Average As of March 31, 2018 As of December 31, 2017 Remaining Gross Net Gross Net Useful Life Carrying Accumulated Carrying Carrying Accumulated Carrying (in years) Amount Amortization Amount Amount Amortization Amount Amortized intangible assets: Software 2.1 $ 148,172 $ (98,916 ) $ 49,256 $ 145,063 $ (93,523 ) $ 51,540 Service customer relationship 2.0 8,081 (6,042 ) 2,039 8,081 (5,788 ) 2,293 Other intangible assets 1.4 1,500 (1,200 ) 300 1,500 (1,103 ) 397 OEM and dealer relationships 6,724 (6,724 ) — 6,724 (6,724 ) — Total amortized intangible assets 164,477 (112,882 ) 51,595 161,368 (107,138 ) 54,230 Unamortized intangible assets: FCC Licenses 32,283 — 32,283 32,283 — 32,283 Total intangible assets $ 196,760 $ (112,882 ) $ 83,878 $ 193,651 $ (107,138 ) $ 86,513 Amortization expense was $7.6 million and $5.8 million, respectively, for the three month periods ended March 31, 2018 and 2017. Amortization expense for each of the next five years and thereafter is estimated to be as follows ( in thousands Amortization Years ending December 31, Expense 2018 (period from April 1 to December 31) $ 19,725 2019 $ 17,093 2020 $ 9,236 2021 $ 3,337 2022 $ 1,706 Thereafter $ 498 Actual future amortization expense could differ from the estimated amount as a result of future investments and other factors. |
Warranties
Warranties | 3 Months Ended |
Mar. 31, 2018 | |
Guarantees and Product Warranties [Abstract] | |
Warranties | 8. Warranties We provide warranties on parts and labor related to our products. Our warranty terms range from two to five years. Warranty reserves are established for costs that are estimated to be incurred after the sale, delivery and installation of the products under warranty. The warranty reserves are determined based on known product failures, historical experience and other available evidence, and are included in accrued liabilities in our unaudited condensed consolidated balance sheets. Our warranty reserve balance was $4.9 million and $2.4 million, respectively, as of March 31, 2018 and December 31, 2017. Changes between March 31, 2018 and December 31, 2017 relate to the accounting impact of the transition of one of our agreements to the airline-directed model. See Note 1, “Basis of Presentation” for additional information. |
Long-Term Debt and Other Liabil
Long-Term Debt and Other Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Other Liabilities | 9. Long-Term Debt and Other Liabilities Long-term debt as of March 31, 2018 and December 31, 2017 was as follows ( in thousands March 31, December 31, 2018 2017 Senior Secured Notes $ 704,835 $ 705,520 Convertible Notes 316,768 311,544 Total debt 1,021,603 1,017,064 Less deferred financing costs (15,161 ) (16,196 ) Total long-term debt $ 1,006,442 $ 1,000,868 Senior Secured Notes “Co-Issuer” As noted above, on September 20, 2017, the Issuers, the Guarantors and the Trustee entered into the Supplemental Indenture to (i) increase the amount of additional secured indebtedness under Credit Facilities (as defined in the Indenture) that may be incurred by the Issuer and its Restricted Subsidiaries (as defined in the Indenture) under the Indenture by $100 million (from $75 million to $175 million in aggregate principal amount), (ii) permit the Issuer and its Restricted Subsidiaries to incur additional secured indebtedness in connection with vendor financing arrangements not to exceed $50 million in aggregate principal amount at any time outstanding and (iii) permit the Issuer and its Restricted Subsidiaries to make additional dividends or distributions to Gogo in an aggregate amount of up to $15 million during any twelve-month period to pay interest on any indebtedness or preferred stock with a maturity later than July 1, 2022. The Supplemental Indenture became effective immediately upon execution, following our receipt of consents from holders of a majority of the outstanding principal amount of the Existing Notes (excluding Existing Notes held by the Issuers or any affiliates of the Issuers) to the Supplemental Indenture and amendments to the collateral agency agreement governing the Senior Secured Notes (the “Consent Solicitation”). In connection with the Consent Solicitation, GIH paid $1.4 million in fees (“Consent Fees”) to holders of Existing Notes who validly tendered (and did not revoke) their consents prior to the expiration of the Consent Solicitation. As of March 31, 2018 and December 31, 2017, the outstanding principal amount of the Senior Secured Notes was $690.0 million and $690.0 million, respectively, the unamortized debt premium and Consent Fees were $14.8 million and $15.5 million, respectively, and the net carrying amount was $704.8 million and $705.5 million, respectively. Interest on the Senior Secured Notes accrues at the rate of 12.500% per annum and is payable semi-annually in arrears on January 1 and July 1, interest payments commenced on January 1, 2017 (other than the January 2017 Additional Notes, for which interest payments commenced on July 1, 2017, and the September 2017 Additional Notes, for which interest payments commenced on January 1, 2018). The Senior Secured Notes mature on July 1, 2022. The January 2017 Additional Notes and September 2017 Additional Notes have the same terms as the Original Senior Secured Notes, except with respect to the issue date and issue price, and are treated as a single series for all purposes under the Indenture and the security documents that govern the Senior Secured Notes. We paid approximately $11.4 million, $2.0 million and $2.5 million, respectively, of aggregate origination fees and financing costs related to the issuance of the Original Senior Secured Notes, the January 2017 Additional Notes and the September 2017 Additional Notes, which have been accounted for as deferred financing costs. Additionally, as noted above, we paid approximately $1.4 million of Consent Fees, which partially offset the net carrying value of the Senior Secured Notes. The deferred financing costs on our unaudited condensed consolidated balance sheet are being amortized over the contractual term of the Senior Secured Notes using the effective interest method. Total amortization expense was $0.6 million and $0.5 million, respectively, for the three months ended March 31, 2018 and 2017. As of March 31, 2018 and December 31, 2017, the balance of unamortized deferred financing costs related to the Senior Secured Notes was $12.0 million and $12.6 million, respectively, and is included as a reduction to long-term debt in our unaudited condensed consolidated balance sheet. See Note 10, “Interest Costs,” for additional information. The Senior Secured Notes are the senior secured indebtedness of the Issuers and are: • effectively senior to all of the Issuers’ existing and future senior unsecured indebtedness and the Issuers’ indebtedness secured on a junior priority basis by the same collateral securing the Senior Secured Notes, if any, in each case to the extent of the value of the collateral securing the Senior Secured Notes; • effectively senior in right of payment to all of the Issuers’ future indebtedness that is subordinated in right of payment to the Senior Secured Notes; • effectively equal in right of payment with the Issuers’ existing and future (i) unsecured indebtedness that is not subordinated in right of payment to the Senior Secured Notes and (ii) indebtedness secured on a junior priority basis by the same collateral securing the Senior Secured Notes, if any, in each case to the extent of any insufficiency in the collateral securing the Senior Secured Notes; • structurally senior to all of our existing and future indebtedness, including our Convertible Notes (as defined below); and • structurally subordinated to all of the indebtedness and other liabilities of any non-Guarantors The Senior Secured Notes are guaranteed, on a senior secured basis, by us and all of GIH’s existing and future domestic restricted subsidiaries (other than the Co-Issuer), • effectively senior to all of such Guarantor’s existing and future senior unsecured indebtedness and such Guarantor’s indebtedness secured on a junior priority basis by the same collateral, if any, securing the guarantee of such Guarantor, in each case to the extent of the value of the collateral securing such guarantee; • effectively senior in right of payment to all of such Guarantor’s future indebtedness that is subordinated in right of payment to such Guarantor’s guarantee; • effectively equal in right of payment with all of such Guarantor’s existing and future (i) unsecured indebtedness that is not subordinated in right of payment to such Guarantor’s guarantee, and (ii) indebtedness secured on a junior priority basis by the same collateral, if any, securing the guarantee of such Guarantor, in each case to the extent of any insufficiency in the collateral securing such guarantee; and • structurally subordinated to all indebtedness and other liabilities of any non-Guarantor The Senior Secured Notes and the related guarantees are secured by first-priority liens, subject to permitted liens, on substantially all of the Issuers’ and the Guarantors’ assets, except for certain excluded assets, including pledged equity interests of the Issuers and all of our existing and future domestic restricted subsidiaries guaranteeing the Senior Secured Notes. The security interests in certain collateral may be released without the consent of holders of the Senior Secured Notes, if such collateral is disposed of in a transaction that complies with the Indenture and related security agreements. In addition, under certain circumstances, we and the Guarantors have the right to transfer certain intellectual property assets that on the Issue Date constitute collateral securing the Senior Secured Notes or the guarantees to a restricted subsidiary organized under the laws of Switzerland, resulting in the release of such collateral without consent of the holders of the Senior Secured Notes. On or after July 1, 2019, the Issuers may, at their option, at any time or from time to time, redeem any of the Senior Secured Notes in whole or in part. The Senior Secured Notes will be redeemable at the following redemption prices (expressed in percentages of principal amount), plus accrued and unpaid interest, if any, to (but not including) the redemption date (subject to the right of holders of record on the relevant regular record date on or prior to the redemption date to receive interest due on an interest payment date), if redeemed during the twelve-month period commencing on July 1 of the following years: Redemption Year Price 2019 106.250 % 2020 103.125 % 2021 and thereafter 100.000 % In addition, at any time prior to July 1, 2019, the Issuers may redeem up to 35% of the aggregate principal amount of the Senior Secured Notes with the proceeds of certain equity offerings at a redemption price of 112.500% of the principal amount redeemed, plus accrued and unpaid interest, if any, to (but not including) the date of redemption; , The Issuers may redeem the Senior Secured Notes, in whole or in part, at any time prior to July 1, 2019, at a redemption price equal to 100% of the principal amount of the Senior Secured Notes redeemed plus the make-whole premium set forth in the Indenture as of, and accrued and unpaid interest, if any, to (but not including) the applicable redemption date. The Indenture contains covenants that, among other things, limit the ability of the Issuers and the Subsidiary Guarantors and, in certain circumstances, our ability, to: incur additional indebtedness; pay dividends, redeem stock or make other distributions; make investments; create restrictions on the ability of our restricted subsidiaries to pay dividends to the Issuers or make other intercompany transfers; create liens; transfer or sell assets; merge or consolidate; and enter into certain transactions with the Issuers’ affiliates, including us. Most of these covenants will cease to apply if, and for as long as, the Senior Secured Notes have investment grade ratings from both Moody’s Investment Services, Inc. and Standard & Poor’s. If we or the Issuers undergo specific types of change of control prior to July 1, 2022, GIH is required to make an offer to repurchase for cash all of the Senior Secured Notes at a repurchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to (but not including) the payment date. The Indenture provides for events of default, which, if any of them occur, would permit or require the principal, premium, if any, and interest on all of the then outstanding Senior Secured Notes issued under the Indenture to be due and payable immediately. As of March 31, 2018, no event of default had occurred. Convertible Notes The $361.9 million of proceeds received from the issuance of the Convertible Notes was initially allocated between long-term debt (the liability component) at $261.9 million and additional paid-in-capital non-cash As of March 31, 2018 and December 31, 2017, the outstanding principal on the Convertible Notes was $361.9 million, the unamortized debt discount was $45.1 million and $50.4 million, respectively, and the net carrying amount of the liability component was $316.8 million and $311.5 million, respectively. We incurred approximately $10.4 million of issuance costs related to the issuance of the Convertible Notes of which $7.5 million and $2.9 million were recorded as deferred financing costs and additional paid-in The Convertible Notes had an initial conversion rate of 41.9274 common shares per $1,000 principal amount of Convertible Notes, which is equivalent to an initial conversion price of approximately $23.85 per share of our common stock. Upon conversion, we currently expect to deliver cash up to the principal amount of the Convertible Notes then outstanding. With respect to any conversion value in excess of the principal amount, we currently expect to deliver shares of our common stock. We may elect to deliver cash in lieu of all or a portion of such shares. The shares of common stock subject to conversion are excluded from diluted earnings per share calculations under the if-converted Holders may convert the Convertible Notes, at their option, in multiples of $1,000 principal amount at any time prior to December 1, 2019, but only in the following circumstances: • during any fiscal quarter beginning after the fiscal quarter ended June 30, 2015, if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during the last 30 consecutive trading days of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price of the Convertible Notes on each applicable trading day; • during the five business day period following any five consecutive trading day period in which the trading price for the Convertible Notes is less than 98% of the product of the last reported sale price of our common stock and the conversion rate for the Convertible Notes on each such trading day; or • upon the occurrence of specified corporate events. None of the above events allowing for conversion prior to December 1, 2019 occurred during the three month period ended March 31, 2018 or the year ended December 31, 2017. Regardless of whether any of the foregoing circumstances occurs, a holder may convert its Convertible Notes, in multiples of $1,000 principal amount, at any time on or after December 1, 2019 until maturity. In addition, if we undergo a fundamental change (as defined in the indenture governing the Convertible Notes), holders may, subject to certain conditions, require us to repurchase their Convertible Notes for cash at a price equal to 100% of the principal amount of the Convertible Notes to be purchased, plus any accrued and unpaid interest. In addition, if specific corporate events occur prior to the maturity date, we will increase the conversion rate for a holder who elects to convert its Convertible Notes in connection with such a corporate event in certain circumstances. In connection with the issuance of the Convertible Notes, we paid approximately $140 million to enter into prepaid forward stock repurchase transactions (the “Forward Transactions”) with certain financial institutions (the “Forward Counterparties”), pursuant to which we purchased approximately 7.2 million shares of common stock for settlement on or around the March 1, 2020 maturity date for the Convertible Notes, subject to the ability of each Forward Counterparty to elect to settle all or a portion of its Forward Transactions early. As a result of the Forward Transactions, total shareholders’ equity within our unaudited condensed consolidated balance sheet was reduced by approximately $140 million. Approximately 7.2 million shares of common stock that will be effectively repurchased through the Forward Transactions are treated as retired shares for basic and diluted EPS purposes although they remain legally outstanding. Restricted Cash |
Interest Costs
Interest Costs | 3 Months Ended |
Mar. 31, 2018 | |
Text Block [Abstract] | |
Interest Costs | 10. Interest Costs We capitalize a portion of our interest on funds borrowed during the active construction period of major capital projects. Capitalized interest is added to the cost of the underlying assets and amortized over the useful lives of the assets. The following is a summary of our interest costs for the three month periods ended March 31, 2018 and 2017 (in thousands) For the Three Months Ended March 31, 2018 2017 Interest costs charged to expense $ 24,980 $ 21,539 Amortization of deferred financing costs 1,035 896 Accretion of debt discount on Convertible Notes 5,224 4,681 Amortization of debt premium on Senior Secured Notes (685 ) (173 ) Interest expense 30,554 26,943 Interest costs capitalized to property and equipment 12 4 Interest costs capitalized to software 32 358 Total interest costs $ 30,598 $ 27,305 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2018 | |
Leases [Abstract] | |
Leases | 11. Leases Arrangements with Commercial Airlines Under the turnkey model, we account for equipment transactions as operating leases of space for our equipment on the aircraft. We may be responsible for the costs of installing and/or deinstalling the equipment. Under the turnkey model, the equipment transactions involve the transfer of legal title but do not meet sales recognition for accounting purposes because the risks and rewards of ownership are not fully transferred due to our continuing involvement with the equipment, the length of the term of our agreements with the airlines, and restrictions in the agreements regarding the airlines’ use of the equipment. Under the turnkey model, we refer to the airline as a “partner”. Under the turnkey model, the assets are recorded as airborne equipment on our unaudited condensed consolidated balance sheets, as noted in Note 6, “Composition of Certain Balance Sheet Accounts.” Any upfront equipment payments are accounted for as lease incentives and recorded as deferred airborne lease incentives on our unaudited condensed consolidated balance sheets and are recognized as a reduction of the cost of service revenue on a straight-line basis over the term of the agreement with the airline. We recognized $7.6 million and $9.3 million, respectively, for the three month periods ended March 31, 2018 and 2017, as a reduction to our cost of service revenue in our unaudited condensed consolidated statements of operations. As of March 31, 2018, deferred airborne lease incentives of $29.5 million and $124.7 million, respectively, are included in current and non-current non-current Under the turnkey model, the revenue share paid to our airline partners represents operating lease payments. They are deemed to be contingent rental payments, as the payments due to each airline are based on a percentage of our CA-NA CA-ROW A contract with one of our airline partners requires us to provide the airline partner with a cash rebate of $1.8 million in June 2018. Leases and Cell Site Contracts Annual future minimum obligations for operating leases for each of the next five years and thereafter, other than the arrangements we have with our commercial airline partners, as of March 31, 2018, are as follows ( in thousands Operating Years ending December 31, Leases 2018 (period from April 1 to December 31) $ 16,924 2019 $ 21,030 2020 $ 18,896 2021 $ 18,746 2022 $ 17,468 Thereafter $ 92,287 Equipment Leases in thousands Capital Years ending December 31, Leases 2018 (period from April 1 to December 31) $ 1,285 2019 960 2020 211 Thereafter — Total minimum lease payments 2,456 Less: Amount representing interest (160 ) Present value of net minimum lease payments $ 2,296 The $2.3 million present value of net minimum lease payments as of March 31, 2018 has a current portion of $1.5 million included in the current portion of long-term debt and capital leases and a non-current non-current |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Contractual Commitments We have agreements with various vendors under which we have remaining commitments to purchase satellite-based systems, certifications and development services. Such commitments will become payable as we receive the equipment or certifications, or as development services are provided. Damages and Penalties - Indemnifications and Guarantees In the ordinary course of business we may occasionally enter into agreements pursuant to which we may be obligated to pay for the failure of performance of others, such as the use of corporate credit cards issued to employees. Based on historical experience, we believe that the risk of sustaining any material loss related to such guarantees is remote. We have entered into a number of agreements, including our agreements with commercial airlines, pursuant to which we indemnify the other party for losses and expenses suffered or incurred in connection with any patent, copyright, or trademark infringement or misappropriation claim asserted by a third party with respect to our equipment or services. The maximum potential amount of future payments we could be required to make under these indemnification agreements is uncertain and is typically not limited by the terms of the agreements. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | 13. Fair Value of Financial Assets and Liabilities A three-tier fair value hierarchy has been established which prioritizes the inputs used in measuring fair value. These tiers include: • Level 1 • Level 2 • Level 3 Long-Term Debt: Our financial assets and liabilities that are disclosed but not measured at fair value include the Senior Secured Notes and the Convertible Notes, which are reflected on the unaudited condensed consolidated balance sheet at cost. The fair value measurements are classified as Level 2 within the fair value hierarchy since they are based on quoted market prices of our instruments in markets that are not active. We estimated the fair value of the Senior Secured Notes and Convertible Notes by calculating the upfront cash payment a market participant would require to assume these obligations. The upfront cash payment used in the calculations of fair value on our March 31, 2018 unaudited condensed consolidated balance sheet, excluding any issuance costs, is the amount that a market participant would be willing to lend at March 31, 2018 to an entity with a credit rating similar to ours and achieve sufficient cash inflows to cover the scheduled cash outflows under the Senior Secured Notes and the Convertible Notes. The calculated fair value of our Convertible Notes is highly correlated to our stock price and as a result significant changes to our stock price could have a significant impact on the calculated fair value of our Convertible Notes. The fair value and carrying value of long-term debt as of March 31, 2018 and December 31, 2017 were as follows (in thousands) March 31, 2018 December 31, 2017 Fair Value (1) Carrying Value Fair Value (1) Carrying Value Senior Secured Notes $ 778,000 $ 704,835 (2) $ 782,000 $ 705,520 (2) Convertible Notes 327,000 316,768 (3) 330,000 311,544 (3) (1) Fair value amounts are rounded to the nearest million. (2) Carrying value of the Senior Secured Notes includes unamortized debt premium and Consent Fees of $14.8 million and $15.5 million, respectively, as of March 31, 2018 and December 31, 2017. See Note 9, “Long-Term Debt and Other Liabilities,” for further information. (3) Carrying value of the Convertible Notes excludes unamortized debt discount of $45.1 million and $50.4 million, respectively, as of March 31, 2018 and December 31, 2017. See Note 9, “Long-Term Debt and Other Liabilities,” for further information. We have held-to-maturity |
Income Tax
Income Tax | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 14. Income Tax The effective income tax rates for the three month periods ended March 31, 2018 and 2017 was 12.0% and (0.6%), respectively. An income tax benefit was recorded for the three-month period ended March 31, 2018 resulting from a reduction in our valuation allowance of approximately $4.0 million due to the application of provisions of H.R. 1, commonly known as the Tax Cuts and Jobs Act (“Tax Reform”), to our evaluation of our deferred tax assets. For the three-months ended March 31, 2017, our income tax expense was not significant primarily due to the recording of a valuation allowance against our net deferred tax assets. We are subject to income taxation in the United States, various states within the United States, Canada, Switzerland, Japan, Mexico, Brazil, Singapore, the United Kingdom, Hong Kong, Australia, China, India, France, Germany and the Netherlands. With few exceptions, as of March 31, 2018, we are no longer subject to U.S. federal, state, local or foreign examinations by tax authorities for years before 2014. We record penalties and interest relating to uncertain tax positions in the income tax provision line item in the unaudited condensed consolidated statement of operations. No penalties or interest related to uncertain tax positions were recorded for the three month periods ended March 31, 2018 and 2017. As of March 31, 2018 and December 31, 2017, we did not have a liability recorded for interest or potential penalties. We do not expect a change in the unrecognized tax benefits within the next 12 months. |
Business Segments and Major Cus
Business Segments and Major Customers | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segments and Major Customers | 15. Business Segments and Major Customers We operate our business through three operating segments: Commercial Aviation North America, or “CA-NA”, “CA-ROW,” The accounting policies of the operating segments are the same as those described in Note 2, “Summary of Significant Accounting Policies,” in our 2017 10-K. Management evaluates performance and allocates resources to each segment based on segment profit (loss), which is calculated internally as net income (loss) attributable to common stock before interest expense, interest income, income taxes, depreciation and amortization, certain non-cash 280-10, Segment Reporting Information regarding our reportable segments is as follows ( in thousands For the Three Months Ended March 31, 2018 CA-NA CA-ROW BA Total Service revenue $ 88,783 $ 14,245 $ 47,650 $ 150,678 Equipment revenue (1) 55,038 4,924 21,185 81,147 Total revenue $ 143,821 $ 19,169 $ 68,835 $ 231,825 Segment profit (loss) $ 1,656 $ (22,605 ) $ 32,323 $ 11,374 For the Three Months Ended March 31, 2017 CA-NA CA-ROW BA Total Service revenue $ 97,145 $ 9,368 $ 39,982 $ 146,495 Equipment revenue 1,671 918 16,322 18,911 Total revenue $ 98,816 $ 10,286 $ 56,304 $ 165,406 Segment profit (loss) $ 11,159 $ (26,555 ) $ 26,115 $ 10,719 (1) CA-NA A reconciliation of segment profit (loss) to the relevant consolidated amounts is as follows ( in thousands For the Three Months Ended March 31, 2018 2017 CA-NA $ 1,656 $ 11,159 CA-ROW (22,605 ) (26,555 ) BA segment profit 32,323 26,115 Total segment profit 11,374 10,719 Interest income 1,076 545 Interest expense (30,554 ) (26,943 ) Depreciation and amortization (35,919 ) (30,435 ) Transition to airline-directed model 19,302 — Amortization of deferred airborne lease incentives (1) 7,630 9,348 Amortization of STC costs (172 ) — Stock-based compensation expense (4,386 ) (4,330 ) Other income (expense) 505 (38 ) Loss before income taxes $ (31,144 ) $ (41,134 ) (1) Amortization of deferred airborne lease incentive relates to our CA-NA and CA-ROW segments. See Note 11, “Leases,” for further information. Major Customers and Airline Partnerships During the three month period ended March 31, 2018, American Airlines accounted for approximately 36% of consolidated revenue while no other customer accounted for more than 10% of consolidated revenue during the prior year period. Revenue earned from American Airlines for the three month period ended March 31, 2018 included $45.4 million of equipment revenue recognized due to its transition to the airline-directed model. See Note 1, “Basis of Presentation,” for additional information. Revenue earned from passengers on aircraft operated by American Airlines, which was under the turnkey model during the three month period ended March 31, 2017, accounted for approximately 23% of consolidated revenue during such period. Revenue earned from passengers on aircraft operated by Delta Air Lines, which is under the turnkey model, accounted for approximately 20% and 25%, respectively, of consolidated revenue for the three month periods ended March 31, 2018 and 2017. American Airlines and one other customer each accounted for more than 10% of our consolidated accounts receivable as of March 31, 2018, and approximately 22% on a combined basis. One customer accounted for approximately 15% of consolidated accounts receivable as of December 31, 2017. Delta Air Lines one of our airline partners, accounted for approximately 13% and 21%, respectively, of consolidated accounts receivable as of March 31, 2018 and December 31, 2017. |
Employee Retirement and Postret
Employee Retirement and Postretirement Benefits | 3 Months Ended |
Mar. 31, 2018 | |
Text Block [Abstract] | |
Employee Retirement and Postretirement Benefits | 16. Employee Retirement and Postretirement Benefits Stock-Based Compensation — 10-K For the three month period ended March 31, 2018, options to purchase 2,239,417 shares of common stock (of which 633,012 are options that contain a market condition, in addition to the time-based vesting requirements) were granted, options to purchase 253,653 (of which 207,527 options contain a market condition) shares of common stock were forfeited, and options to purchase 288,250 shares of common stock expired. For the three month period ended March 31, 2018, 696,260 Restricted Stock Units (“RSUs”) (of which 205,993 are RSUs that contain a market condition, in addition to the time-based vesting requirements) were granted, 148,302 RSUs vested and 58,045 RSUs (of which 33,692 contained a market condition) were forfeited. For the three month period ended March 31, 2018, 14,271 shares vested. These shares are deemed issued as of the date of grant, but not outstanding until they vest. For the three month period ended March 31, 2018, 25,331 Deferred Stock Units were granted and vested. For the three month period ended March 31, 2018, 55,812 shares of common stock were issued under the employee stock purchase plan. The following is a summary of our stock-based compensation expense by operating expense line in the unaudited condensed consolidated statements of operations (in thousands) For the Three Months Ended March 31, 2018 2017 Cost of service revenue $ 434 $ 458 Cost of equipment revenue 54 37 Engineering, design and development 910 850 Sales and marketing 1,082 749 General and administrative 1,906 2,236 Total stock-based compensation expense $ 4,386 $ 4,330 401(k) Plan tax-deferred |
Research and Development Costs
Research and Development Costs | 3 Months Ended |
Mar. 31, 2018 | |
Research and Development [Abstract] | |
Research and Development Costs | 17. Research and Development Costs Expenditures for research and development are charged to expense as incurred and totaled $19.2 million and $22.1 million, respectively, for the three month periods ended March 31, 2018 and 2017. Research and development costs are reported as a component of engineering, design and development expenses in our unaudited condensed consolidated statements of operations. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The Business - in-flight “CA-NA,” “CA-ROW,” CA-NA CA-ROW Wi-Fi-enabled in-flight Wi-Fi CA-NA CA-ROW CA-ROW in-flight in-flight in-flight in-flight Basis of Presentation S-X 10-K 10-K”). The results of operations and cash flows for the three month period ended March 31, 2018 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2018. We have one class of common stock outstanding as of March 31, 2018 and December 31, 2017. |
Reclassifications | Reclassifications non-current non-current |
Transition to airline-directed model | Transition to airline-directed model non-current non-current non-current in thousands Increase Unaudited condensed consolidated balance sheet Prepaid expense and other current assets $ 6,603 Property and equipment, net (34,965 ) Other non-current 18,783 Accrued liabilities 2,000 Current deferred airborne lease incentive (13,592 ) Non-current (17,289 ) Unaudited condensed consolidated statement of operations Equipment revenue 45,396 Cost of equipment revenue 26,094 |
Use of Estimates | Use of Estimates |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Financial Effects Due to Transition of Agreements | The total financial statement effect on our unaudited condensed consolidated balance sheet and unaudited condensed consolidated statement of operations was as follows ( in thousands Increase Unaudited condensed consolidated balance sheet Prepaid expense and other current assets $ 6,603 Property and equipment, net (34,965 ) Other non-current 18,783 Accrued liabilities 2,000 Current deferred airborne lease incentive (13,592 ) Non-current (17,289 ) Unaudited condensed consolidated statement of operations Equipment revenue 45,396 Cost of equipment revenue 26,094 |
Recent Accounting Pronounceme26
Recent Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Summary of Cumulative Effect of Adoption on Consolidated Balance Sheets | The cumulative effect of the adoption of ASC 606 and ASC 340-40 in thousands) Balance at Balance at December 31, January 1, 2017 Adjustments 2018 Assets Inventories $ 45,543 $ 974 $ 46,517 Prepaid expenses and other current assets 20,310 603 20,913 Property and equipment, net 656,038 (2,966 ) 653,072 Other non-current 67,107 (30,006 ) 37,101 Liabilities Current deferred revenue 43,448 (7,182 ) 36,266 Other non-current 134,655 (48,378 ) 86,277 Equity Accumulated deficit (1,089,369 ) 24,165 (1,065,204 ) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Revenue Disaggregated by Category | The following table presents our revenue disaggregated by category for the three-month period ended March 31, 2018 (in thousands) For the Three Months Ended March 31, 2018 CA-NA CA-ROW BA Total Service revenue Connectivity $ 82,040 $ 13,649 $ 47,392 $ 143,081 Entertainment, CAS and other 6,743 596 258 7,597 Total service revenue $ 88,783 $ 14,245 $ 47,650 $ 150,678 Equipment revenue ATG (1) $ 44,762 $ — $ 15,421 $ 60,183 Satellite (1) 10,276 4,924 4,258 19,458 Other — — 1,506 1,506 Total equipment revenue $ 55,038 $ 4,924 $ 21,185 $ 81,147 Customer type Airline passenger and aircraft owner/operator $ 52,924 $ 4,729 $ 47,650 $ 105,303 Airline, OEM and aftermarket dealer (2) 77,426 12,694 21,185 111,305 Third party 13,471 1,746 — 15,217 Total revenue $ 143,821 $ 19,169 $ 68,835 $ 231,825 1) ATG and satellite equipment revenue for the CA-NA 2) Airline, OEM and aftermarket dealer revenue includes all equipment revenue for our three segments, including the $45.4 million accounting impact of the transition of one of our airlines partners to the airline-directed model. |
Accounting Standards Update 2014-09 [Member] | |
Summary of Post Adoption Impact of ASC 606 on Unaudited Condensed Consolidated Balance Sheet and Statement of Operations | The following table presents the post adoption impact of ASC 606 on our unaudited condensed consolidated balance sheet and the statement of operations (in thousands) As of March 31, 2018 Balances Without As Impact of Adoption of Reported ASC 606 ASC 606 Assets Prepaid expenses and other current assets $ 28,638 $ (458 ) $ 28,180 Other non-current 56,127 73,664 129,791 Liabilities Current deferred revenue 36,227 20,086 56,313 Other non-current 87,546 85,252 172,798 Equity Accumulated deficit (1,092,623 ) (24,165 ) (1,116,788 ) For the Three Month Period Ended March 31, 2018 Balances Without As Impact of Adoption of Reported ASC 606 ASC 606 Revenue: Service revenue $ 150,678 $ 4,392 $ 155,070 Equipment revenue 81,147 (50,658 ) 30,489 Operating expenses: Cost of equipment revenue 52,293 (39,150 ) 13,143 Engineering, design and development 29,777 851 30,628 Net loss (27,419 ) (7,967 ) (35,386 ) |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share for the three month periods ended March 31, 2018 and 2017; however, because of the undistributed losses, the shares of common stock associated with the Forward Transactions are excluded from the computation of basic earnings per share in 2018 and 2017 as undistributed losses are not allocated to these shares ( in thousands, except per share amounts For the Three Months Ended March 31, 2018 2017 Net loss $ (27,419 ) $ (41,367 ) Less: Participation rights of the Forward Transactions — — Undistributed losses $ (27,419 ) $ (41,367 ) Weighted-average common shares outstanding-basic and diluted 79,696 79,139 Net loss attributable to common stock per share-basic and diluted $ (0.34 ) $ (0.52 ) |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories as of March 31, 2018 and December 31, 2017 were as follows ( in thousands March 31, December 31, 2018 2017 Work-in-process $ 32,458 $ 35,009 Finished goods (1) 136,324 10,534 Total inventory $ 168,782 $ 45,543 (1) The increase in our inventories is primarily due to the allocation of a portion of our uninstalled airborne equipment ( i.e. CA-NA CA-ROW CA-NA CA-ROW |
Composition of Certain Balanc30
Composition of Certain Balance Sheet Accounts (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property and Equipment | Property and equipment as of March 31, 2018 and December 31, 2017 were as follows ( in thousands March 31, December 31, 2018 2017 Office equipment, furniture, fixtures and other $ 47,849 $ 46,445 Leasehold improvements 43,417 42,522 Airborne equipment (1) (2) 591,297 765,652 Network equipment 200,140 199,304 882,703 1,053,923 Accumulated depreciation (1) (352,016 ) (397,885 ) Property and equipment, net $ 530,687 $ 656,038 (1) Changes between March 31, 2018 and December 31, 2017 relate to the accounting impact of the transition of one of our airline partner agreements to the airline-directed model (see Note 1, “Basis of Presentation,” for additional information) and the adoption of ASC 606 (see Note 2, “New Accounting Pronouncements,” for additional information). (2) Changes between March 31, 2018 and December 31, 2017 also relates to the allocation of uninstalled airborne equipment to inventory (see Note 5, “Inventories,” for additional information). |
Schedule of Other Non-Current Assets | Other non-current in thousands March 31, December 31, 2018 2017 Contract Assets (1) $ 21,502 $ — Deferred STC costs (1) 8,411 — Deferred cost of equipment revenue (1) — 40,986 Restricted cash 6,635 6,873 Other 19,579 19,248 Total other non-current $ 56,127 $ 67,107 (1) Changes between March 31, 2018 and December 31, 2017 are primarily due to the adoption of ASC 606. See Note 2, “New Accounting Pronouncements,” for additional information. |
Accrued Liabilities | Accrued liabilities as of March 31, 2018 and December 31, 2017 were as follows ( in thousands March 31, December 31, 2018 2017 Employee compensation and benefits $ 16,865 $ 25,621 Airborne equipment and installation costs 24,551 44,059 Airline related accrued liabilities 17,146 13,566 Accrued interest 22,694 47,649 Accrued revenue share 12,768 17,339 Other 69,497 53,581 Total accrued liabilities $ 163,521 $ 201,815 |
Other Non-Current Liabilities | Other non-current in thousands March 31, December 31, 2018 2017 Deferred revenue (1) $ 30,293 $ 73,192 Deferred rent 37,152 37,354 Asset retirement obligations 9,869 9,668 Deferred tax liabilities 2,120 5,983 Other 8,112 8,458 Total other non-current $ 87,546 $ 134,655 (1) Changes between March 31, 2018 and December 31, 2017 are primarily due to the adoption of ASC 606. See Note 2, “New Accounting Pronouncements,” for additional information. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Other than Goodwill | Our intangible assets, other than goodwill, as of March 31, 2018 and December 31, 2017 were as follows ( in thousands, except for weighted average remaining useful life Weighted Average As of March 31, 2018 As of December 31, 2017 Remaining Gross Net Gross Net Useful Life Carrying Accumulated Carrying Carrying Accumulated Carrying (in years) Amount Amortization Amount Amount Amortization Amount Amortized intangible assets: Software 2.1 $ 148,172 $ (98,916 ) $ 49,256 $ 145,063 $ (93,523 ) $ 51,540 Service customer relationship 2.0 8,081 (6,042 ) 2,039 8,081 (5,788 ) 2,293 Other intangible assets 1.4 1,500 (1,200 ) 300 1,500 (1,103 ) 397 OEM and dealer relationships 6,724 (6,724 ) — 6,724 (6,724 ) — Total amortized intangible assets 164,477 (112,882 ) 51,595 161,368 (107,138 ) 54,230 Unamortized intangible assets: FCC Licenses 32,283 — 32,283 32,283 — 32,283 Total intangible assets $ 196,760 $ (112,882 ) $ 83,878 $ 193,651 $ (107,138 ) $ 86,513 |
Summary of Amortization Expenses | Amortization expense for each of the next five years and thereafter is estimated to be as follows ( in thousands Amortization Years ending December 31, Expense 2018 (period from April 1 to December 31) $ 19,725 2019 $ 17,093 2020 $ 9,236 2021 $ 3,337 2022 $ 1,706 Thereafter $ 498 |
Long-Term Debt and Other Liab32
Long-Term Debt and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt as of March 31, 2018 and December 31, 2017 was as follows ( in thousands March 31, December 31, 2018 2017 Senior Secured Notes $ 704,835 $ 705,520 Convertible Notes 316,768 311,544 Total debt 1,021,603 1,017,064 Less deferred financing costs (15,161 ) (16,196 ) Total long-term debt $ 1,006,442 $ 1,000,868 |
Summary of Redemption Prices Plus Accrued and Unpaid Interest | The Senior Secured Notes will be redeemable at the following redemption prices (expressed in percentages of principal amount), plus accrued and unpaid interest, if any, to (but not including) the redemption date (subject to the right of holders of record on the relevant regular record date on or prior to the redemption date to receive interest due on an interest payment date), if redeemed during the twelve-month period commencing on July 1 of the following years: Redemption Year Price 2019 106.250 % 2020 103.125 % 2021 and thereafter 100.000 % |
Interest Costs (Tables)
Interest Costs (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Text Block [Abstract] | |
Summary of Interest Costs | The following is a summary of our interest costs for the three month periods ended March 31, 2018 and 2017 (in thousands) For the Three Months Ended March 31, 2018 2017 Interest costs charged to expense $ 24,980 $ 21,539 Amortization of deferred financing costs 1,035 896 Accretion of debt discount on Convertible Notes 5,224 4,681 Amortization of debt premium on Senior Secured Notes (685 ) (173 ) Interest expense 30,554 26,943 Interest costs capitalized to property and equipment 12 4 Interest costs capitalized to software 32 358 Total interest costs $ 30,598 $ 27,305 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Leases [Abstract] | |
Annual Future Minimum Obligations for Operating Leases Other than Arrangements with Commercial Airline Partners | Annual future minimum obligations for operating leases for each of the next five years and thereafter, other than the arrangements we have with our commercial airline partners, as of March 31, 2018, are as follows ( in thousands Operating Years ending December 31, Leases 2018 (period from April 1 to December 31) $ 16,924 2019 $ 21,030 2020 $ 18,896 2021 $ 18,746 2022 $ 17,468 Thereafter $ 92,287 |
Annual Future Minimum Obligations under Capital Leases | Annual future minimum obligations under capital leases for each of the next five years and thereafter, as of March 31, 2018, are as follows ( in thousands Capital Years ending December 31, Leases 2018 (period from April 1 to December 31) $ 1,285 2019 960 2020 211 Thereafter — Total minimum lease payments 2,456 Less: Amount representing interest (160 ) Present value of net minimum lease payments $ 2,296 |
Fair Value of Financial Asset35
Fair Value of Financial Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value and Carrying Value of Long-Term Debt | The fair value and carrying value of long-term debt as of March 31, 2018 and December 31, 2017 were as follows (in thousands) March 31, 2018 December 31, 2017 Fair Value (1) Carrying Value Fair Value (1) Carrying Value Senior Secured Notes $ 778,000 $ 704,835 (2) $ 782,000 $ 705,520 (2) Convertible Notes 327,000 316,768 (3) 330,000 311,544 (3) (1) Fair value amounts are rounded to the nearest million. (2) Carrying value of the Senior Secured Notes includes unamortized debt premium and Consent Fees of $14.8 million and $15.5 million, respectively, as of March 31, 2018 and December 31, 2017. See Note 9, “Long-Term Debt and Other Liabilities,” for further information. (3) Carrying value of the Convertible Notes excludes unamortized debt discount of $45.1 million and $50.4 million, respectively, as of March 31, 2018 and December 31, 2017. See Note 9, “Long-Term Debt and Other Liabilities,” for further information. |
Business Segments and Major C36
Business Segments and Major Customers (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Summary of Reportable Segments | Information regarding our reportable segments is as follows ( in thousands For the Three Months Ended March 31, 2018 CA-NA CA-ROW BA Total Service revenue $ 88,783 $ 14,245 $ 47,650 $ 150,678 Equipment revenue (1) 55,038 4,924 21,185 81,147 Total revenue $ 143,821 $ 19,169 $ 68,835 $ 231,825 Segment profit (loss) $ 1,656 $ (22,605 ) $ 32,323 $ 11,374 For the Three Months Ended March 31, 2017 CA-NA CA-ROW BA Total Service revenue $ 97,145 $ 9,368 $ 39,982 $ 146,495 Equipment revenue 1,671 918 16,322 18,911 Total revenue $ 98,816 $ 10,286 $ 56,304 $ 165,406 Segment profit (loss) $ 11,159 $ (26,555 ) $ 26,115 $ 10,719 (1) CA-NA |
Reconciliation of Segment Profit (loss) | A reconciliation of segment profit (loss) to the relevant consolidated amounts is as follows ( in thousands For the Three Months Ended March 31, 2018 2017 CA-NA $ 1,656 $ 11,159 CA-ROW (22,605 ) (26,555 ) BA segment profit 32,323 26,115 Total segment profit 11,374 10,719 Interest income 1,076 545 Interest expense (30,554 ) (26,943 ) Depreciation and amortization (35,919 ) (30,435 ) Transition to airline-directed model 19,302 — Amortization of deferred airborne lease incentives (1) 7,630 9,348 Amortization of STC costs (172 ) — Stock-based compensation expense (4,386 ) (4,330 ) Other income (expense) 505 (38 ) Loss before income taxes $ (31,144 ) $ (41,134 ) (1) Amortization of deferred airborne lease incentive relates to our CA-NA and CA-ROW segments. See Note 11, “Leases,” for further information. |
Employee Retirement and Postr37
Employee Retirement and Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Text Block [Abstract] | |
Summary of Stock-Based Compensation Expense by Operating Expense | The following is a summary of our stock-based compensation expense by operating expense line in the unaudited condensed consolidated statements of operations (in thousands) For the Three Months Ended March 31, 2018 2017 Cost of service revenue $ 434 $ 458 Cost of equipment revenue 54 37 Engineering, design and development 910 850 Sales and marketing 1,082 749 General and administrative 1,906 2,236 Total stock-based compensation expense $ 4,386 $ 4,330 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($)ClassOfCommonStockSegment$ / shares | Dec. 31, 2017USD ($)ClassOfCommonStock | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Number of operating segments | Segment | 3 | |
Number of class of common stock outstanding | ClassOfCommonStock | 1 | 1 |
Non-current deferred rent combined with other non-current assets and liabilities | $ 37,152 | $ 37,354 |
Reclassifications [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Accrued airline revenue share combined with accrued liabilities | 918 | |
Current deferred rent combined with accrued liabilities | 11 | |
Non-current deferred rent combined with other non-current assets and liabilities | 359 | |
Estimated Useful Lives [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Increases in depreciation expense | 4,300 | |
Decrease in cost of service revenue | $ 1,000 | |
Increase in net loss per basic and fully diluted share | $ / shares | $ 0.04 |
Basis of Presentation - Summary
Basis of Presentation - Summary of Financial Effects Due to Transition of Agreements (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Prepaid expense and other current assets | $ 28,638 | $ 20,310 | |
Other non-currentassets | 56,127 | 67,107 | |
Accrued liabilities | 163,521 | 201,815 | |
Current deferred airborne lease incentive | 29,472 | 42,096 | |
Non-current deferred airborne lease incentive | 124,653 | $ 142,938 | |
Equipment revenue | 81,147 | $ 18,911 | |
Cost of equipment revenue | 52,293 | $ 11,648 | |
Transition Agreements To Airline-directed Model [Member] | |||
Prepaid expense and other current assets | 6,603 | ||
Property and equipment, net | (34,965) | ||
Other non-currentassets | 18,783 | ||
Accrued liabilities | 2,000 | ||
Current deferred airborne lease incentive | (13,592) | ||
Non-current deferred airborne lease incentive | (17,289) | ||
Equipment revenue | 45,396 | ||
Cost of equipment revenue | $ 26,094 |
Recent Accounting Pronounceme40
Recent Accounting Pronouncements - Summary of Cumulative Effect of Adoption on Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets | |||
Inventories | $ 168,782 | $ 45,543 | |
Prepaid expenses and other current assets | 28,638 | 20,310 | |
Property and equipment, net | 530,687 | 656,038 | |
Other non-currentassets | 56,127 | 67,107 | |
Liabilities | |||
Current deferred revenue | 36,227 | 43,448 | |
Other non-currentliabilities | 87,546 | 134,655 | |
Equity | |||
Accumulated deficit | (1,092,623) | $ (1,089,369) | |
Accounting Standards Update 2014-09 And 340-40 [Member] | |||
Assets | |||
Inventories | $ 46,517 | ||
Prepaid expenses and other current assets | 20,913 | ||
Property and equipment, net | 653,072 | ||
Other non-currentassets | 37,101 | ||
Liabilities | |||
Current deferred revenue | 36,266 | ||
Other non-currentliabilities | 86,277 | ||
Equity | |||
Accumulated deficit | $ (1,065,204) | ||
Accounting Standards Update 2014-09 And 340-40 [Member] | Difference between Guidance in Effect Before and after Topic 606 and ASC 34040 [Member] | |||
Assets | |||
Inventories | 974 | ||
Prepaid expenses and other current assets | 603 | ||
Property and equipment, net | (2,966) | ||
Other non-currentassets | (30,006) | ||
Liabilities | |||
Current deferred revenue | (7,182) | ||
Other non-currentliabilities | (48,378) | ||
Equity | |||
Accumulated deficit | $ 24,165 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | |
Revenue from Contracts with Customers [Line Items] | |||
Transaction price allocated to remaining performance obligations | $ 895,000 | ||
Service revenue occuring period | 1 year | ||
Equipment revenue | $ 81,147 | $ 18,911 | |
Future equipment revenue recognition period | Next 1-3 years | ||
Future Equipment Revenue [Member] | |||
Revenue from Contracts with Customers [Line Items] | |||
Equipment revenue | $ 145,000 | ||
Connectivity and Entertainment Service Revenues [Member] | |||
Revenue from Contracts with Customers [Line Items] | |||
Transaction price allocated to remaining performance obligations | 750,000 | ||
Airline [Member] | |||
Revenue from Contracts with Customers [Line Items] | |||
Contract assets, current and non-current | 27,700 | $ 5,100 | |
Accounting Standards Update 2014-09 [Member] | |||
Revenue from Contracts with Customers [Line Items] | |||
Deferred revenue, current and non-current | 66,500 | 61,100 | |
Deferred STC costs | 8,400 | $ 7,600 | |
Accounting Standards Update 2014-09 [Member] | Engineering, Design and Development [Member] | |||
Revenue from Contracts with Customers [Line Items] | |||
Deferred STC costs recognized | $ 200 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Revenue Disaggregated by Category (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | $ 231,825 |
Airline Passenger and Aircraft Owner/Operator [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 105,303 |
Airline, OEM and Aftermarket Dealer [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 111,305 |
Third Party [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 15,217 |
Service Revenue [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 150,678 |
Service Revenue [Member] | Connectivity [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 143,081 |
Service Revenue [Member] | Entertainment, CAS and Other [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 7,597 |
Equipment Revenue [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 81,147 |
Equipment Revenue [Member] | ATG [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 60,183 |
Equipment Revenue [Member] | Satellite [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 19,458 |
Equipment Revenue [Member] | Other [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 1,506 |
CA-NA [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 143,821 |
CA-NA [Member] | Airline Passenger and Aircraft Owner/Operator [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 52,924 |
CA-NA [Member] | Airline, OEM and Aftermarket Dealer [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 77,426 |
CA-NA [Member] | Third Party [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 13,471 |
CA-NA [Member] | Service Revenue [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 88,783 |
CA-NA [Member] | Service Revenue [Member] | Connectivity [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 82,040 |
CA-NA [Member] | Service Revenue [Member] | Entertainment, CAS and Other [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 6,743 |
CA-NA [Member] | Equipment Revenue [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 55,038 |
CA-NA [Member] | Equipment Revenue [Member] | ATG [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 44,762 |
CA-NA [Member] | Equipment Revenue [Member] | Satellite [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 10,276 |
CA-ROW [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 19,169 |
CA-ROW [Member] | Airline Passenger and Aircraft Owner/Operator [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 4,729 |
CA-ROW [Member] | Airline, OEM and Aftermarket Dealer [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 12,694 |
CA-ROW [Member] | Third Party [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 1,746 |
CA-ROW [Member] | Service Revenue [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 14,245 |
CA-ROW [Member] | Service Revenue [Member] | Connectivity [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 13,649 |
CA-ROW [Member] | Service Revenue [Member] | Entertainment, CAS and Other [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 596 |
CA-ROW [Member] | Equipment Revenue [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 4,924 |
CA-ROW [Member] | Equipment Revenue [Member] | Satellite [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 4,924 |
BA [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 68,835 |
BA [Member] | Airline Passenger and Aircraft Owner/Operator [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 47,650 |
BA [Member] | Airline, OEM and Aftermarket Dealer [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 21,185 |
BA [Member] | Service Revenue [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 47,650 |
BA [Member] | Service Revenue [Member] | Connectivity [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 47,392 |
BA [Member] | Service Revenue [Member] | Entertainment, CAS and Other [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 258 |
BA [Member] | Equipment Revenue [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 21,185 |
BA [Member] | Equipment Revenue [Member] | ATG [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 15,421 |
BA [Member] | Equipment Revenue [Member] | Satellite [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | 4,258 |
BA [Member] | Equipment Revenue [Member] | Other [Member] | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of revenue | $ 1,506 |
Revenue Recognition - Summary43
Revenue Recognition - Summary of Revenue Disaggregated by Category (Parenthetical) (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)Segment | Mar. 31, 2017USD ($) | |
Disaggregation of Revenue [Line Items] | ||
Equipment revenue | $ 81,147 | $ 18,911 |
Number of operating segments | Segment | 3 | |
CA-NA [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Equipment revenue | $ 55,038 | $ 1,671 |
ATG [Member] | CA-NA [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Equipment revenue | 43,400 | |
Satellite [Member] | CA-NA [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Equipment revenue | 2,000 | |
Airline, OEM and Aftermarket Dealer [Member] | CA-NA [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Equipment revenue | 45,400 | |
Airline Partners [Member] | CA-NA [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Equipment revenue | $ 45,400 |
Revenue Recognition - Summary44
Revenue Recognition - Summary of the Post Adoption Impact of ASC 606 - Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Prepaid expenses and other current assets | $ 28,638 | $ 20,310 |
Other non-currentassets | 56,127 | 67,107 |
Liabilities | ||
Current deferred revenue | 36,227 | 43,448 |
Other non-currentliabilities | 87,546 | 134,655 |
Equity | ||
Accumulated deficit | (1,092,623) | $ (1,089,369) |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||
Assets | ||
Prepaid expenses and other current assets | (458) | |
Other non-currentassets | 73,664 | |
Liabilities | ||
Current deferred revenue | 20,086 | |
Other non-currentliabilities | 85,252 | |
Equity | ||
Accumulated deficit | (24,165) | |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | As Reported [Member] | ||
Assets | ||
Prepaid expenses and other current assets | 28,180 | |
Other non-currentassets | 129,791 | |
Liabilities | ||
Current deferred revenue | 56,313 | |
Other non-currentliabilities | 172,798 | |
Equity | ||
Accumulated deficit | $ (1,116,788) |
Revenue Recognition - Summary45
Revenue Recognition - Summary of the Post Adoption Impact of ASC 606 - Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue: | ||
Service revenue | $ 150,678 | $ 146,495 |
Equipment revenue | 81,147 | 18,911 |
Operating expenses: | ||
Cost of equipment revenue | 52,293 | 11,648 |
Engineering, design and development | 29,777 | 36,264 |
Net loss | (27,419) | $ (41,367) |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||
Revenue: | ||
Service revenue | 4,392 | |
Equipment revenue | (50,658) | |
Operating expenses: | ||
Cost of equipment revenue | (39,150) | |
Engineering, design and development | 851 | |
Net loss | (7,967) | |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||
Revenue: | ||
Service revenue | 155,070 | |
Equipment revenue | 30,489 | |
Operating expenses: | ||
Cost of equipment revenue | 13,143 | |
Engineering, design and development | 30,628 | |
Net loss | $ (35,386) |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Forward stock repurchase transaction shares, excluded from dilution effect | 7.2 | 7.2 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (27,419) | $ (41,367) |
Less: Participation rights of the Forward Transactions | 0 | 0 |
Undistributed losses | $ (27,419) | $ (41,367) |
Weighted-average common shares outstanding-basic and diluted | 79,696 | 79,139 |
Net loss attributable to common stock per share-basic and diluted | $ (0.34) | $ (0.52) |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Work-in-process component parts | $ 32,458 | $ 35,009 |
Finished goods | 136,324 | 10,534 |
Total inventory | $ 168,782 | $ 45,543 |
Composition of Certain Balanc49
Composition of Certain Balance Sheet Accounts - Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 882,703 | $ 1,053,923 |
Accumulated depreciation | (352,016) | (397,885) |
Property and equipment, net | 530,687 | 656,038 |
Office Equipment, Furniture, Fixtures and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 47,849 | 46,445 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 43,417 | 42,522 |
Airborne Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 591,297 | 765,652 |
Network Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 200,140 | $ 199,304 |
Composition of Certain Balanc50
Composition of Certain Balance Sheet Accounts - Schedule of Other Non-Current Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Other Assets, Noncurrent [Abstract] | ||
Contract Assets | $ 21,502 | |
Deferred STC costs | 8,411 | |
Deferred cost of equipment revenue | $ 40,986 | |
Restricted cash | 6,635 | 6,873 |
Other | 19,579 | 19,248 |
Total other non-currentassets | $ 56,127 | $ 67,107 |
Composition of Certain Balanc51
Composition of Certain Balance Sheet Accounts - Accrued Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accrued Liabilities, Current [Abstract] | ||
Employee compensation and benefits | $ 16,865 | $ 25,621 |
Airborne equipment and installation costs | 24,551 | 44,059 |
Airline related accrued liabilities | 17,146 | 13,566 |
Accrued interest | 22,694 | 47,649 |
Accrued revenue share | 12,768 | 17,339 |
Other | 69,497 | 53,581 |
Total accrued liabilities | $ 163,521 | $ 201,815 |
Composition of Certain Balanc52
Composition of Certain Balance Sheet Accounts - Other Non-Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Other Liabilities, Noncurrent [Abstract] | ||
Deferred revenue | $ 30,293 | $ 73,192 |
Deferred rent | 37,152 | 37,354 |
Asset retirement obligations | 9,869 | 9,668 |
Deferred tax liabilities | 2,120 | 5,983 |
Other | 8,112 | 8,458 |
Total other non-current liabilities | $ 87,546 | $ 134,655 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 0.6 | $ 0.6 | |
Amortization expense | $ 7.6 | $ 5.8 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets, Other than Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets Net Excluding Goodwill [Line Items] | ||
Total intangible assets, Gross Carrying Amount | $ 196,760 | $ 193,651 |
Amortized intangible assets, Gross Carrying Amount | 164,477 | 161,368 |
Amortized intangible assets, Accumulated Amortization | (112,882) | (107,138) |
Amortized intangible assets, Net Carrying Amount | 51,595 | 54,230 |
Total intangible assets, Net Carrying Amount | 83,878 | 86,513 |
FCC Licenses [Member] | ||
Intangible Assets Net Excluding Goodwill [Line Items] | ||
Total unamortized intangible assets, Gross Carrying Amount | 32,283 | 32,283 |
Total unamortized intangible assets, Net Carrying Amount | $ 32,283 | 32,283 |
Software [Member] | ||
Intangible Assets Net Excluding Goodwill [Line Items] | ||
Weighted Average Remaining Useful Life (in years) | 2 years 1 month 6 days | |
Amortized intangible assets, Gross Carrying Amount | $ 148,172 | 145,063 |
Amortized intangible assets, Accumulated Amortization | (98,916) | (93,523) |
Amortized intangible assets, Net Carrying Amount | $ 49,256 | 51,540 |
Service Customer Relationships [Member] | ||
Intangible Assets Net Excluding Goodwill [Line Items] | ||
Weighted Average Remaining Useful Life (in years) | 2 years | |
Amortized intangible assets, Gross Carrying Amount | $ 8,081 | 8,081 |
Amortized intangible assets, Accumulated Amortization | (6,042) | (5,788) |
Amortized intangible assets, Net Carrying Amount | $ 2,039 | 2,293 |
Other Intangible Assets [Member] | ||
Intangible Assets Net Excluding Goodwill [Line Items] | ||
Weighted Average Remaining Useful Life (in years) | 1 year 4 months 24 days | |
Amortized intangible assets, Gross Carrying Amount | $ 1,500 | 1,500 |
Amortized intangible assets, Accumulated Amortization | (1,200) | (1,103) |
Amortized intangible assets, Net Carrying Amount | 300 | 397 |
OEM and Dealer Relationships [Member] | ||
Intangible Assets Net Excluding Goodwill [Line Items] | ||
Amortized intangible assets, Gross Carrying Amount | 6,724 | 6,724 |
Amortized intangible assets, Accumulated Amortization | $ (6,724) | $ (6,724) |
Intangible Assets - Summary of
Intangible Assets - Summary of Amortization Expenses (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 19,725 |
2,019 | 17,093 |
2,020 | 9,236 |
2,021 | 3,337 |
2,022 | 1,706 |
Thereafter | $ 498 |
Warranties - Additional Informa
Warranties - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Guarantor Obligations [Line Items] | ||
Warranty reserve balance | $ 4.9 | $ 2.4 |
Minimum [Member] | ||
Guarantor Obligations [Line Items] | ||
Warranty term | 2 years | |
Maximum [Member] | ||
Guarantor Obligations [Line Items] | ||
Warranty term | 5 years |
Long-Term Debt and Other Liab57
Long-Term Debt and Other Liabilities - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 03, 2015 |
Debt Instrument [Line Items] | |||
Total debt | $ 1,021,603 | $ 1,017,064 | |
Less deferred financing costs | (15,161) | (16,196) | |
Total long-term debt | 1,006,442 | 1,000,868 | |
3.75% Convertible Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Convertible Notes | 316,768 | 311,544 | $ 261,900 |
12.500% Senior Secured Notes Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Secured Notes | $ 704,835 | $ 705,520 |
Long-Term Debt and Other Liab58
Long-Term Debt and Other Liabilities - Additional Information (Detail) $ / shares in Units, shares in Millions | Mar. 31, 2018USD ($) | Sep. 25, 2017USD ($) | Sep. 20, 2017USD ($) | Jan. 03, 2017USD ($) | Jun. 14, 2016USD ($) | Mar. 03, 2015USD ($)$ / sharesshares | Mar. 31, 2018USD ($)Trading_dayshares | Mar. 31, 2017USD ($)shares | Dec. 31, 2017USD ($) | Sep. 19, 2017USD ($) |
Debt Instrument [Line Items] | ||||||||||
Proceeds from issuance of debt | $ 70,200,000 | |||||||||
Total debt | $ 1,021,603,000 | $ 1,021,603,000 | $ 1,017,064,000 | |||||||
Amortization of deferred financing costs | 1,035,000 | $ 896,000 | ||||||||
Additional paid-in-capital | 903,045,000 | $ 903,045,000 | 898,729,000 | |||||||
Forward stock repurchase transactions amount | $ 140,000,000 | |||||||||
Forward stock repurchase transaction, shares | shares | 7.2 | 7.2 | ||||||||
Letters of Credit [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Restricted cash | 7,400,000 | $ 7,400,000 | 7,400,000 | |||||||
Convertible Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Forward stock repurchase transaction, shares | shares | 7.2 | |||||||||
Forward stock repurchase transaction, settlement date | Mar. 1, 2020 | |||||||||
12.500% Senior Secured Notes Due 2022 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 525,000,000 | |||||||||
Interest rate | 12.50% | |||||||||
Unamortized debt premium and consent fees | 14,800,000 | $ 14,800,000 | 15,500,000 | |||||||
Interest rate payable term | Semi-annually | |||||||||
Maturity date | Jul. 1, 2022 | |||||||||
Loan origination fees | $ 11,400,000 | |||||||||
Amortization of deferred financing costs | 600,000 | 500,000 | ||||||||
Debt issuance costs | 12,000,000 | $ 12,000,000 | 12,600,000 | |||||||
12.500% Senior Secured Notes Due 2022 [Member] | Condition One [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument redemption price percentage of principal amount redeemed | 35.00% | |||||||||
Debt instrument redemption price, percentage | 112.50% | |||||||||
Outstanding redemption percentage | 65.00% | |||||||||
12.500% Senior Secured Notes Due 2022 [Member] | Condition Two [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument redemption price, percentage | 100.00% | |||||||||
12.500% Senior Secured Notes Due 2022 [Member] | Condition Three [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument redemption price, percentage | 101.00% | |||||||||
12.500% Senior Secured Notes Due 2022 [Member] | Additional Notes [Member] | January Two Thousand And Seventeen Additional Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 65,000,000 | |||||||||
Interest rate | 12.50% | |||||||||
Issue price as percentage of face value | 108.00% | |||||||||
Proceeds from issuance of debt | $ 70,200,000 | |||||||||
Loan origination fees | $ 2,000,000 | |||||||||
12.500% Senior Secured Notes Due 2022 [Member] | Additional Notes [Member] | September Two Thousand And Seventeen Additional Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 100,000,000 | |||||||||
Interest rate | 12.50% | |||||||||
Issue price as percentage of face value | 113.00% | |||||||||
Proceeds from issuance of debt | $ 113,000,000 | |||||||||
Accrued interest received | $ 2,900,000 | |||||||||
Loan origination fees | 2,500,000 | |||||||||
12.500% Senior Secured Notes Due 2022 [Member] | Supplemental Indenture [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 175,000,000 | $ 75,000,000 | ||||||||
Increase in debt amount | 100,000,000 | |||||||||
Additional secured indebtedness | 50,000,000 | |||||||||
Additional dividends | 15,000,000 | |||||||||
Consent fees paid | $ 1,400,000 | |||||||||
3.75% Convertible Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | 361,900,000 | $ 361,900,000 | $ 361,900,000 | 361,900,000 | ||||||
Interest rate | 3.75% | |||||||||
Interest rate payable term | Semi-annually | |||||||||
Maturity date | Mar. 1, 2020 | |||||||||
Amortization of deferred financing costs | 400,000 | 400,000 | ||||||||
Debt issuance costs | 3,200,000 | $ 3,200,000 | 3,600,000 | |||||||
Debt instrument redemption price, percentage | 100.00% | |||||||||
Option granted to initial purchasers | $ 60,000,000 | |||||||||
Additional paid-in-capital | 100,000,000 | |||||||||
Convertible Notes, carrying amount of liability component | $ 316,768,000 | 261,900,000 | $ 316,768,000 | 311,544,000 | ||||||
Effective interest rate on convertible notes | 11.50% | 11.50% | ||||||||
Proceeds received from the issuance of the convertible notes | $ 361,900,000 | |||||||||
Convertible Notes, unamortized discount | $ 45,100,000 | $ 45,100,000 | 50,400,000 | |||||||
Conversion rate | 41.9274 | |||||||||
Principal amount | $ 1,000 | |||||||||
Conversion price | $ / shares | $ 23.85 | |||||||||
Multiples of principal amount | $ 1,000 | |||||||||
3.75% Convertible Senior Notes [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage of common share price over conversion price for conversion | 130.00% | |||||||||
Common stock price trading days | Trading_day | 20 | |||||||||
Common stock price consecutive trading days | Trading_day | 30 | |||||||||
3.75% Convertible Senior Notes [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument redemption price, percentage | 98.00% | |||||||||
Common stock price trading days | Trading_day | 5 | |||||||||
Common stock price consecutive trading days | Trading_day | 5 | |||||||||
3.75% Convertible Senior Notes [Member] | Issuance Costs [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loan origination fees | 10,400,000 | |||||||||
Additional paid-in-capital | 2,900,000 | $ 2,900,000 | ||||||||
Issuance cost recorded to deferred financing costs | 7,500,000 | 7,500,000 | ||||||||
3.75% Convertible Senior Notes [Member] | Institutional Buyers [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | 340,000,000 | |||||||||
Principal amount of Convertible Notes, subsequently exercised | $ 21,900,000 | |||||||||
Senior Secured Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | 690,000,000 | 690,000,000 | 690,000,000 | |||||||
Total debt | $ 704,835,000 | $ 704,835,000 | $ 705,520,000 |
Long-Term Debt and Other Liab59
Long-Term Debt and Other Liabilities - Summary of Redemption Prices Plus Accrued and Unpaid Interest (Detail) - 12.500% Senior Secured Notes Due 2022 [Member] | 3 Months Ended |
Mar. 31, 2018 | |
2019 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument redemption price, percentage | 106.25% |
2020 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument redemption price, percentage | 103.125% |
2021 and Thereafter [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument redemption price, percentage | 100.00% |
Interest Costs - Summary of Int
Interest Costs - Summary of Interest Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Schedule Of Interest [Line Items] | ||
Interest costs charged to expense | $ 24,980 | $ 21,539 |
Amortization of deferred financing costs | 1,035 | 896 |
Accretion of debt discount on Convertible Notes | 5,224 | 4,681 |
Amortization of debt premium on Senior Secured Notes | (685) | (173) |
Interest expense | 30,554 | 26,943 |
Total interest costs | 30,598 | 27,305 |
Property and Equipment [Member] | ||
Schedule Of Interest [Line Items] | ||
Interest costs capitalized | 12 | 4 |
Software [Member] | ||
Schedule Of Interest [Line Items] | ||
Interest costs capitalized | $ 32 | $ 358 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Leases [Line Items] | ||||
Amortization of deferred airborne lease incentives | $ 7,630 | $ 9,348 | ||
Deferred airborne lease incentives included in current liabilities | 29,472 | $ 42,096 | ||
Deferred airborne lease incentives included in non-current liabilities | 124,653 | 142,938 | ||
Revenue share expense, net of amortization of deferred airborne lease incentives | 6,400 | 8,900 | ||
Property and equipment, gross | 882,703 | 1,053,923 | ||
Present value of net minimum lease payments | 2,296 | |||
Present value of net minimum lease payments, current portion | 1,468 | 1,789 | ||
Present value of net minimum lease payments, non-current portion | 800 | |||
Scenario, Forecast [Member] | ||||
Leases [Line Items] | ||||
Contingent annual cash rebate | $ 1,800 | |||
Leased Computer Equipment [Member] | ||||
Leases [Line Items] | ||||
Property and equipment, gross | 5,000 | 5,000 | ||
Leased Network Equipment [Member] | ||||
Leases [Line Items] | ||||
Property and equipment, gross | 7,500 | $ 7,500 | ||
Certain Facilities and Equipment [Member] | ||||
Leases [Line Items] | ||||
Rental expense | 3,100 | 3,000 | ||
Cell Site Leases [Member] | ||||
Leases [Line Items] | ||||
Rental expense | $ 2,700 | $ 2,300 | ||
Minimum [Member] | Computer Equipment [Member] | ||||
Leases [Line Items] | ||||
Annual interest rate imputed | 8.00% | |||
Maximum [Member] | Computer Equipment [Member] | ||||
Leases [Line Items] | ||||
Annual interest rate imputed | 14.00% |
Leases - Annual Future Minimum
Leases - Annual Future Minimum Obligations for Operating Leases Other than Arrangements with Commercial Airline Partners (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Leases [Abstract] | |
2018 (period from April 1 to December 31) | $ 16,924 |
2,019 | 21,030 |
2,020 | 18,896 |
2,021 | 18,746 |
2,022 | 17,468 |
Thereafter | $ 92,287 |
Leases - Annual Future Minimu63
Leases - Annual Future Minimum Obligation under Capital Leases (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Leases [Abstract] | |
2018 (period from October 1 to December 31) | $ 1,285 |
2,019 | 960 |
2,020 | 211 |
Thereafter | 0 |
Total minimum lease payments | 2,456 |
Less: Amount representing interest | (160) |
Present value of net minimum lease payments | $ 2,296 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Mar. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 65.8 |
2,019 | 89.1 |
2,020 | 89.8 |
2,021 | 77.5 |
2,022 | 73.9 |
Thereafter | $ 227.6 |
Fair Value of Financial Asset65
Fair Value of Financial Assets and Liabilities - Summary of Fair Value and Carrying Value of Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt | $ 1,021,603 | $ 1,017,064 |
Convertible Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value of Convertible Notes | 327,000 | 330,000 |
Carrying Value of Convertible Notes | 316,768 | 311,544 |
Senior Secured Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value of Long Term Debt | 778,000 | 782,000 |
Total debt | $ 704,835 | $ 705,520 |
Fair Value of Financial Asset66
Fair Value of Financial Assets and Liabilities - Summary of Fair Value and Carrying Value of Long-Term Debt (Parenthetical) (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
3.75% Convertible Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible Notes, unamortized discount | $ 45.1 | $ 50.4 |
12.500% Senior Secured Notes Due 2022 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unamortized debt premium and consent fees | $ 14.8 | $ 15.5 |
Fair Value of Financial Asset67
Fair Value of Financial Assets and Liabilities - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets fair value adjustments | $ 0 | $ 0 |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) - USD ($) | 3 Months Ended | ||||
Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 12.00% | 0.60% | |||
Reduction in our valuation allowance due to tax reform | $ 4,000,000 | ||||
Interest or penalties related to uncertain tax positions | $ 0 | $ 0 | |||
Liabilities for interest and potential penalties | 0 | $ 0 | |||
Increase (decrease) in unrecognized tax benefits | $ 0 |
Business Segments and Major C69
Business Segments and Major Customers - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($)CustomerSegment | Mar. 31, 2017USD ($) | Dec. 31, 2017Customer | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | Segment | 3 | ||
Equipment revenue | $ 81,147 | $ 18,911 | |
Transition Agreements To Airline-directed Model [Member] | |||
Segment Reporting Information [Line Items] | |||
Equipment revenue | $ 45,396 | ||
Revenue [Member] | Customer Concentration Risk [Member] | American Airlines [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of benchmark | 36.00% | 23.00% | |
Revenue [Member] | Customer Concentration Risk [Member] | Delta Air Lines [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of benchmark | 20.00% | 25.00% | |
Accounts Receivable [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of customers meeting concentration risk threshold | Customer | 1 | 1 | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of benchmark | 15.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | American Airlines [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of benchmark | 10.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Other Customer One [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of benchmark | 10.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | American Airlines and Other Customer One [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of benchmark | 22.00% | ||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Delta Air Lines [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of benchmark | 13.00% | 21.00% |
Business Segments and Major C70
Business Segments and Major Customers - Summary of Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Service revenue | $ 150,678 | $ 146,495 |
Equipment revenue | 81,147 | 18,911 |
Total revenue | 231,825 | 165,406 |
Segment profit (loss) | 11,374 | 10,719 |
CA-NA [Member] | ||
Segment Reporting Information [Line Items] | ||
Service revenue | 88,783 | 97,145 |
Equipment revenue | 55,038 | 1,671 |
Total revenue | 143,821 | 98,816 |
Segment profit (loss) | 1,656 | 11,159 |
CA-ROW [Member] | ||
Segment Reporting Information [Line Items] | ||
Service revenue | 14,245 | 9,368 |
Equipment revenue | 4,924 | 918 |
Total revenue | 19,169 | 10,286 |
Segment profit (loss) | (22,605) | (26,555) |
BA [Member] | ||
Segment Reporting Information [Line Items] | ||
Service revenue | 47,650 | 39,982 |
Equipment revenue | 21,185 | 16,322 |
Total revenue | 68,835 | 56,304 |
Segment profit (loss) | $ 32,323 | $ 26,115 |
Business Segment and Major Cust
Business Segment and Major Customers - Reconciliation of Segment Profit (loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment profit (loss) | $ 11,374 | $ 10,719 |
Interest income | 1,076 | 545 |
Interest expense | (30,554) | (26,943) |
Depreciation and amortization | (35,919) | (30,435) |
Transition to airline-directed model | 19,302 | |
Amortization of deferred airborne lease incentives | 7,630 | 9,348 |
Amortization of STC costs | (172) | |
Stock-based compensation expense | (4,386) | (4,330) |
Other income (expense) | 505 | (38) |
Loss before income taxes | (31,144) | (41,134) |
CA-NA [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment profit (loss) | 1,656 | 11,159 |
CA-ROW [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment profit (loss) | (22,605) | (26,555) |
BA [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment profit (loss) | $ 32,323 | $ 26,115 |
Employee Retirement and Postr72
Employee Retirement and Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Employee Benefit Plans [Line Items] | ||
Stock options, shares granted | 2,239,417 | |
Stock options, shares exercised | 253,653 | |
Stock options, shares expired | 288,250 | |
Employee Contribution | 100.00% | |
Percentage of employees contribution matched by the company | 4.00% | |
Employer Contribution | $ 1.2 | $ 1.6 |
Employee Stock Purchase Plan [Member] | ||
Employee Benefit Plans [Line Items] | ||
Common stock, shares issued under ESPP | 55,812 | |
Market Condition [Member] | ||
Employee Benefit Plans [Line Items] | ||
Stock options, shares granted | 633,012 | |
Stock options, shares forfeited | 207,527 | |
Share units granted | 205,993 | |
Share units forfeited | 33,692 | |
Restricted Stock Units (RSUs) [Member] | ||
Employee Benefit Plans [Line Items] | ||
Share units granted | 696,260 | |
Share units vested | 148,302 | |
Share units forfeited | 58,045 | |
Restricted Stock [Member] | ||
Employee Benefit Plans [Line Items] | ||
Share units vested | 14,271 | |
Deferred Stock Units [Member] | ||
Employee Benefit Plans [Line Items] | ||
Share units granted | 25,331 | |
Share units vested | 25,331 |
Employee Retirement and Postr73
Employee Retirement and Postretirement Benefits - Summary of Stock-Based Compensation Expense by Operating Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 4,386 | $ 4,330 |
Cost of Service Revenue [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 434 | 458 |
Cost of Equipment Revenue [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 54 | 37 |
Engineering, Design and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 910 | 850 |
Sales and Marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 1,082 | 749 |
General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 1,906 | $ 2,236 |
Research and Development Costs
Research and Development Costs - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Research and Development [Abstract] | ||
Research and development expense | $ 19.2 | $ 22.1 |