Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 06, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Gogo Inc. | |
Entity Central Index Key | 0001537054 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | GOGO | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 87,797,851 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 188,690 | $ 184,155 |
Short-term investments | 39,323 | |
Total cash, cash equivalents and short-term investments | 188,690 | 223,478 |
Accounts receivable, net of allowances of $583 and $500, respectively | 123,791 | 134,308 |
Inventories | 147,354 | 193,045 |
Prepaid expenses and other current assets | 32,140 | 34,695 |
Total current assets | 491,975 | 585,526 |
Non-current assets: | ||
Property and equipment, net | 565,485 | 511,867 |
Goodwill and intangible assets, net | 82,888 | 83,491 |
Operating lease right-of-use assets | 70,129 | |
Other non-current assets | 86,333 | 84,212 |
Total non-current assets | 804,835 | 679,570 |
Total assets | 1,296,810 | 1,265,096 |
Current liabilities: | ||
Accounts payable | 27,861 | 23,860 |
Accrued liabilities | 183,067 | 213,111 |
Deferred revenue | 37,602 | 38,571 |
Deferred airborne lease incentives | 22,726 | 24,145 |
Total current liabilities | 271,256 | 299,687 |
Non-current liabilities: | ||
Long-term debt | 1,030,359 | 1,024,893 |
Deferred airborne lease incentives | 131,743 | 129,086 |
Non-current operating lease liabilities | 99,870 | |
Other non-current liabilities | 47,556 | 80,191 |
Total non-current liabilities | 1,309,528 | 1,234,170 |
Total liabilities | 1,580,784 | 1,533,857 |
Commitments and contingencies (Note 12) | ||
Stockholders' deficit | ||
Common stock, par value $0.0001 per share; 500,000,000 shares authorized at March 31, 2019 and December 31, 2018; 87,878,770 and 87,678,812 shares issued at March 31, 2019 and December 31, 2018, respectively; and 87,797,614 and 87,560,694 shares outstanding at March 31, 2019 and December 31, 2018, respectively | 9 | 9 |
Additional paid-in-capital | 967,727 | 963,458 |
Accumulated other comprehensive loss | (3,144) | (3,554) |
Accumulated deficit | (1,248,566) | (1,228,674) |
Total stockholders' deficit | (283,974) | (268,761) |
Total liabilities and stockholders' deficit | $ 1,296,810 | $ 1,265,096 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowances on accounts receivable | $ 583 | $ 500 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 87,878,770 | 87,678,812 |
Common stock, shares outstanding | 87,797,614 | 87,560,694 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue: | ||
Total revenue | $ 199,549 | $ 231,825 |
Operating expenses: | ||
Cost of service revenue (exclusive of items shown below) | 68,121 | 74,947 |
Cost of equipment revenue (exclusive of items shown below) | 29,731 | 52,293 |
Engineering, design and development | 24,728 | 29,777 |
Sales and marketing | 12,318 | 15,901 |
General and administrative | 22,454 | 25,159 |
Depreciation and amortization | 30,749 | 35,919 |
Total operating expenses | 188,101 | 233,996 |
Operating income (loss) | 11,448 | (2,171) |
Other (income) expense: | ||
Interest income | (1,149) | (1,076) |
Interest expense | 32,554 | 30,554 |
Other income | (3,365) | (505) |
Total other expense | 28,040 | 28,973 |
Loss before income taxes | (16,592) | (31,144) |
Income tax provision (benefit) | 207 | (3,725) |
Net loss | $ (16,799) | $ (27,419) |
Net loss attributable to common stock per share—basic and diluted | $ (0.21) | $ (0.34) |
Weighted average number of shares—basic and diluted | 80,446 | 79,696 |
Service [Member] | ||
Revenue: | ||
Total revenue | $ 165,012 | $ 150,678 |
Product [Member] | ||
Revenue: | ||
Total revenue | $ 34,537 | $ 81,147 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (16,799) | $ (27,419) |
Currency translation adjustments, net of tax | 410 | (834) |
Comprehensive loss | $ (16,389) | $ (28,253) |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities: | ||
Net loss | $ (16,799) | $ (27,419) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Depreciation and amortization | 30,749 | 35,919 |
Loss on asset disposals, abandonments and write-downs | 1,241 | 1,687 |
Gain on transition to airline-directed model | (19,302) | |
Deferred income taxes | 44 | (3,863) |
Stock-based compensation expense | 4,327 | 4,386 |
Amortization of deferred financing costs | 1,249 | 1,035 |
Accretion and amortization of debt discount and premium | 4,774 | 4,539 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 10,635 | (14,046) |
Inventories | (1,118) | (12,304) |
Prepaid expenses and other current assets | 3,015 | (1,863) |
Contract assets | (6,175) | 2,578 |
Accounts payable | 2,843 | 11,755 |
Accrued liabilities | (19,381) | (7,229) |
Deferred airborne lease incentives | (3,923) | (1,834) |
Deferred revenue | 2,257 | 5,440 |
Accrued interest | (19,514) | (24,955) |
Warranty reserves | (588) | 442 |
Other non-current assets and liabilities | 208 | (1,171) |
Net cash used in operating activities | (6,156) | (46,205) |
Investing activities: | ||
Purchases of property and equipment | (23,154) | (56,886) |
Acquisition of intangible assets—capitalized software | (4,557) | (5,772) |
Purchases of short-term investments | (39,323) | |
Redemptions of short-term investments | 39,323 | 69,482 |
Other, net | 95 | |
Net cash provided by (used in) investing activities | 11,707 | (32,499) |
Financing activities: | ||
Payment of debt issuance costs | (557) | |
Payments on financing leases | (125) | (618) |
Stock-based compensation activity | (58) | (70) |
Net cash used in financing activities | (740) | (688) |
Effect of exchange rate changes on cash | (276) | 75 |
Increase (decrease) in cash, cash equivalents and restricted cash | 4,535 | (79,317) |
Cash, cash equivalents and restricted cash at beginning of period | 191,116 | 203,729 |
Cash, cash equivalents and restricted cash at end of period | 195,651 | 124,412 |
Cash, cash equivalents and restricted cash at end of period | 195,651 | 124,412 |
Less: current restricted cash | 1,535 | 738 |
Less: non-current restricted cash | 5,426 | 6,635 |
Cash and cash equivalents at end of period | 188,690 | 117,039 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | 46,163 | 49,911 |
Cash paid for taxes | 41 | 15 |
Noncash Investing and Financing Activities: | ||
Purchases of property and equipment in current liabilities | 19,951 | 23,325 |
Purchases of property and equipment paid by commercial airlines | $ 5,016 | $ 2,060 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
Beginning Balance at Dec. 31, 2017 | $ (191,564) | $ 9 | $ 898,729 | $ (933) | $ (1,089,369) |
Beginning Balance, Shares at Dec. 31, 2017 | 86,843,928 | ||||
Net loss | (27,419) | (27,419) | |||
Currency translation adjustments, net of tax | (834) | (834) | |||
Stock-based compensation expense | 4,386 | 4,386 | |||
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares | 107,335 | ||||
Tax withholding related to vesting of restricted stock units | (526) | (526) | |||
Issuance of common stock in connection with employee stock purchase plan | 456 | 456 | |||
Issuance of common stock in connection with employee stock purchase plan, Shares | 55,812 | ||||
Impact of the adoption of ASC 842 | 24,165 | 24,165 | |||
Ending Balance at Mar. 31, 2018 | (191,336) | $ 9 | 903,045 | (1,767) | (1,092,623) |
Ending Balance, Shares at Mar. 31, 2018 | 87,007,075 | ||||
Beginning Balance at Dec. 31, 2018 | (268,761) | $ 9 | 963,458 | (3,554) | (1,228,674) |
Beginning Balance, Shares at Dec. 31, 2018 | 87,560,694 | ||||
Net loss | (16,799) | (16,799) | |||
Currency translation adjustments, net of tax | 410 | 410 | |||
Stock-based compensation expense | $ 4,327 | 4,327 | |||
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares | 161,667 | ||||
Tax withholding related to vesting of restricted stock units | $ (351) | (351) | |||
Issuance of common stock in connection with employee stock purchase plan | 293 | 293 | |||
Issuance of common stock in connection with employee stock purchase plan, Shares | 75,253 | ||||
Impact of the adoption of ASC 842 | (3,093) | (3,093) | |||
Ending Balance at Mar. 31, 2019 | $ (283,974) | $ 9 | $ 967,727 | $ (3,144) | $ (1,248,566) |
Ending Balance, Shares at Mar. 31, 2019 | 87,797,614 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The Business - Gogo (“we,” “us,” “our”) is the global leader in providing broadband connectivity solutions and wireless in-flight entertainment to the aviation industry. We operate through the following three segments: Commercial Aviation North America, or “CA-NA,” Commercial Aviation Rest of World, or “CA-ROW,” and Business Aviation, or “BA.” Services provided by our CA-NA and CA-ROW businesses include Passenger Connectivity, which allows passengers to connect to the Internet from their personal Wi-Fi-enabled devices; Passenger Entertainment, which offers passengers the opportunity to enjoy a broad selection of in-flight entertainment options on their personal Wi-Fi enabled devices; and Connected Aircraft Services (“CAS”), which offers airlines connectivity for various operations and currently include, among other services, real-time credit card transaction processing, electronic flight bags and real-time weather information. Services are provided by CA-NA on commercial aircraft flying routes that generally begin and end within North America, which for this purpose includes the United States, Canada and Mexico. CA-ROW provides service on commercial aircraft operated by foreign-based commercial airlines and flights outside of North America for North American-based commercial airlines. The routes included in our CA-ROW segment are those that begin and/or end outside of North America (as defined above) on which our international service is provided. BA provides in-flight Internet connectivity and other voice and data communications products and services and sells equipment for in-flight telecommunications to the business aviation market. BA services include Gogo Biz, our in-flight broadband service, Passenger Entertainment, our in-flight entertainment service, and satellite-based voice and data services through our strategic alliances with satellite companies. Basis of Presentation - The accompanying unaudited condensed consolidated financial statements and notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conformity with Article 10 of Regulation S-X promulgated under the Securities Act of 1933, as amended (the “Securities Act”). Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements and should be read in conjunction with our annual audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 as filed with the Securities and Exchange Commission (“SEC”) on February 21, 2019 (the “2018 10-K”). These unaudited condensed consolidated financial statements reflect, in the opinion of management, all material adjustments (which include normal recurring adjustments) necessary to fairly state, in all material respects, our financial position, results of operations and cash flows for the periods presented. The results of operations and cash flows for the three month period ended March 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2019. We have one class of common stock outstanding as of March 31, 2019 and December 31, 2018. Reclassifications Transition of airline models - The accounting treatment for one of our airline agreements transitioned from our turnkey model to our airline-directed model in January 2018 due to specific provisions elected by the airline that resulted in the transfer of control of the previously installed connectivity equipment. Upon transition to the airline-directed model, the net book value of all previously delivered equipment classified within property and equipment was reclassified to cost of equipment revenue. Additionally, the unamortized proceeds previously received for equipment and classified within current and non-current deferred airborne lease incentives were eliminated and included as part of estimated contract value, which was then allocated amongst the various performance obligations under the agreement. The value allocated to previously delivered equipment was immediately recognized as equipment revenue in our unaudited condensed consolidated financial statements; refer to Note 3, “Revenue Recognition,” for additional disclosures relating to the allocation of consideration among identified performance obligations. For amounts recognized in equipment revenue that were in excess of the amounts billed, we recorded current and non-current contract assets included within prepaid expenses and other current assets and other non-current assets, respectively; refer to Note 3, “Revenue Recognition,” for additional details. In connection with the transition of this airline agreement to the airline-directed model, we also established warranty reserves related to previously sold equipment that are still under a warranty period, which is in cluded within accrued liabilities. See Note 8, “Warranties,” for additional information. This transition from the turnkey model to the airline-directed model occurred on January 4, 2018 and 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 (decrease) Unaudited condensed consolidated balance sheet Prepaid expense and other current assets $ 6,603 Property and equipment, net (32,716 ) Other non-current assets 18,783 Accrued liabilities 2,000 Current deferred airborne lease incentive (13,592 ) Non-current deferred airborne lease incentive (17,289 ) Unaudited condensed consolidated statement of operations Equipment revenue 45,396 Cost of equipment revenue 23,845 As of January 1, 2019, $ 46.8 Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates the significant estimates and bases such estimates on historical experience and on various other assumptions believed to be reasonable under the circumstances. However, actual results could differ materially from those estimates. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements Accounting standards adopted: On January 1, 2019, we adopted Accounting Standards Codification Topic 842, Leases (“ASC 842”) using the cumulative effect method. As a result, we recognized the cumulative effect of initially applying ASC 842 as an adjustment to the opening balance of retained earnings as of January 1, 2019. Our historical financial statements have not been restated and continue to be reported under the lease accounting standard in effect for those periods. We Adoption of ASC 842 had a material impact on our consolidated balance sheet through recognition of right-of-use (“ROU”) assets and operating lease liabilities. Adoption did not have a material impact on our consolidated statements of operations or our consolidated statements of cash flows and did not result in the recognition of incremental financing leases, formerly referred to as capital leases. The discount rate used to calculate the adjustment to the opening balance was our incremental borrowing rate as of the adoption date, January 1, 2019. The cumulative effect of the adoption of ASC 842 to our unaudited condensed consolidated balance sheet as of January 1, 2019 was as follows (in thousands): Balances Balance at with December 31, Impact of Adoption of 2018 ASC 842 ASC 842 Assets Operating lease right-of-use assets $ — $ 72,188 $ 72,188 Liabilities Accrued liabilities 212,459 9,019 221,478 Non-current operating lease liabilities — 102,440 102,440 Other non-current liabilities 80,191 (36,178 ) 44,013 Equity Accumulated deficit (1,228,674 ) (3,093 ) (1,231,767 ) See Note 11, “Leases,” for additional information. On January 1, 2019, we adopted ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”), which permits entities to reclassify tax effects stranded in accumulated other comprehensive income as a result of tax reform to retained earnings. Adoption of this standard did not have a material impact on our consolidated financial statements. On January 1, 2019, we adopted ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”), which expands the scope of ASC 718, Compensation – Stock Compensation , to include share-based payment transactions for acquiring goods or services from nonemployees. Adoption of this standard did not have a material impact on our consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 3. Revenue Recognition Arrangements with commercial airlines For CA-NA and CA-ROW, pursuant to contractual agreements with our airline partners, we place our equipment on commercial aircraft operated by the airlines in order to deliver our service to passengers on the aircraft. We currently have two types of commercial airline arrangements: turnkey and airline-directed. Under the airline-directed model, we have transferred control of the equipment to the airline and therefore the airline is our customer in these transactions. Under the turnkey model, we have not transferred control of our equipment to our airline partner and, as a result, the airline passenger is deemed to be our customer. Transactions with our airline partners under the turnkey model are accounted for as an operating lease of space on an aircraft. See Note 11, “Leases,” for additional information on the turnkey model. Remaining performance obligations As of March 31, 2019, the aggregate amount of the transaction price in our contracts allocated to the remaining unsatisfied performance obligations is approximately $831 million, most of which relates to our commercial aviation contracts. Approximately $114 million represents future equipment revenue that is expected to be recognized within the next one to three years. The remaining $717 million primarily represents connectivity and entertainment service revenues which are recognized as services are provided, which is expected to occur through the remaining term of the contract (approximately 5-10 years). We have excluded from this amount: all variable consideration derived from our connectivity or entertainment services that is allocated entirely to our performance of obligations related to such services; consideration from contracts that have an original duration of one year or less; revenue from passenger service on airlines operating under the turnkey model; and revenue from contracts that have been executed but under which have not yet met the accounting definition of a contract since the airline has not yet determined which products in our portfolio it wishes to select, and, as a result we are unable to determine which products and services will be transferred to the customer. Disaggregation of revenue The following table presents our revenue disaggregated by category (in thousands) : For the Three Months Ended March 31, 2019 CA-NA CA-ROW BA Total Service revenue Connectivity $ 79,818 $ 18,854 $ 52,685 $ 151,357 Entertainment, CAS and other 12,209 918 528 13,655 Total service revenue $ 92,027 $ 19,772 $ 53,213 $ 165,012 Equipment revenue ATG $ 2,872 $ — $ 11,335 $ 14,207 Satellite 630 13,159 5,235 19,024 Other 540 — 766 1,306 Total equipment revenue $ 4,042 $ 13,159 $ 17,336 $ 34,537 Customer type Airline passenger and aircraft owner/operator $ 54,349 $ 5,851 $ 53,213 $ 113,413 Airline, OEM and aftermarket dealer 30,913 25,491 17,336 73,740 Third party 10,807 1,589 — 12,396 Total revenue $ 96,069 $ 32,931 $ 70,549 $ 199,549 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 segment includes the $45.4 million related to the accounting impact of the transition of one of our airline partners to the airline-directed model. Approximately $43.4 million was included in ATG equipment revenue and approximately $2.0 million was included in satellite equipment revenue. 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 airline partners to the airline-directed model. Contract balances Our current and non-current deferred revenue balances totaled $62.3 million and $60.1 million as of March 31, 2019 and December 31, 2018, respectively. Deferred revenue includes, among other things, equipment, multi-pack and subscription connectivity products, sponsorship activities and airline-directed connectivity and entertainment. Our current and non-current contract asset balances totaled $66.4 million and $59.9 million as of March 31, 2019 and December 31, 2018, respectively. Contract assets represent the aggregate amount of revenue recognized in excess of billings for our airline-directed contracts. Capitalized STC balances for our airline-directed contracts were $16.3 million and $16.5 million as of March 31, 2019 and December 31, 2018, respectively. We recognized $0.3 million and $0.2 million, respectively, of deferred STC costs as part of our engineering, design and development costs in our unaudited condensed consolidated statements of operations during the three month periods ended March 31, 2019 and 2018. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2019 | |
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 method to calculate basic and diluted earnings per share. Net earnings in future periods will be allocated between common shares and participating securities. In periods of a net loss, the shares associated with the Forward Transactions will not receive an allocation of losses, as the counterparties to the Forward Transactions are not required to fund losses. Accordingly, the calculation of weighted average shares outstanding as of March 31, 2019 and 2018 excludes approximately 7.2 million shares that will be repurchased as a result of the Forward Transactions. As a result of the net loss for the three month periods ended March 31, 2019 and 2018, 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, 2019 and 2018; 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 2019 and 2018 as undistributed losses are not allocated to these shares ( in thousands, except per share amounts ): For the Three Months Ended March 31, 2019 2018 Net loss $ (16,799 ) $ (27,419 ) Less: Participation rights of the Forward Transactions — — Undistributed losses $ (16,799 ) $ (27,419 ) Weighted-average common shares outstanding-basic and diluted 80,446 79,696 Net loss attributable to common stock per share-basic and diluted $ (0.21 ) $ (0.34 ) |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and December 31, 2018 were as follows ( in thousands ): March 31, December 31, 2019 2018 Work-in-process component parts $ 29,043 $ 30,340 Finished goods (1) 118,311 162,705 Total inventory $ 147,354 $ 193,045 (1) The change between March 31, 2019 and December 31, 2018 primarily relates to the accounting impact of one of our airline partner agreements transitioning to the turnkey model (see Note 1, “Basis of Presentation,” for additional information). |
Composition of Certain Balance
Composition of Certain Balance Sheet Accounts | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Composition of Certain Balance Sheet Accounts | 6. Composition of Certain Balance Sheet Accounts Prepaid expenses and other current assets as of March 31, 2019 and December 31, 2018 were as follows ( in thousands ): March 31, December 31, 2019 2018 Contract assets $ 10,852 $ 10,423 Prepaid satellite services 7,170 7,755 Restricted cash 1,535 1,535 Other 12,583 14,982 Total prepaid expenses and other current assets $ 32,140 $ 34,695 Property and equipment as of March 31, 2019 and December 31, 2018 were as follows ( in thousands ): March 31, December 31, 2019 2018 Office equipment, furniture, fixtures and other $ 52,637 $ 52,320 Leasehold improvements 44,839 44,838 Airborne equipment (1) 715,055 642,151 Network equipment 210,044 205,463 1,022,575 944,772 Accumulated depreciation (457,090 ) (432,905 ) Total property and equipment, net $ 565,485 $ 511,867 (1) The change between March 31, 2019 and December 31, 2018 primarily relates to the accounting impact of one of our airline partner agreements transitioning to the turnkey model (see Note 1, “Basis of Presentation,” for additional information). Other non-current assets as of March 31, 2019 and December 31, 2018 were as follows ( in thousands ): March 31, December 31, 2019 2018 Contract assets $ 55,536 $ 49,517 Deferred STC costs 16,289 16,453 Restricted cash 5,426 5,426 Other 9,082 12,816 Total other non-current assets $ 86,333 $ 84,212 Accrued liabilities as of March 31, 2019 and December 31, 2018 were as follows ( in thousands ): March 31, December 31, 2019 2018 Employee compensation and benefits $ 13,437 $ 19,463 Airborne equipment and installation costs 17,625 25,119 Airline related accrued liabilities 41,609 45,077 Accrued interest 27,180 46,694 Accrued satellite network costs 14,989 19,557 Warranty reserve 11,750 12,291 Operating leases (1) 11,585 — Other 44,892 44,910 Total accrued liabilities $ 183,067 $ 213,111 (1) The change between March 31, 2019 and December 31, 2018 is due to the adoption of ASC 842. See Note 2, “Recent Accounting Pronouncements,” for additional information. Other non-current liabilities as of March 31, 2019 and December 31, 2018 were as follows ( in thousands ): March 31, December 31, 2019 2018 Deferred revenue $ 24,709 $ 21,482 Deferred rent (1) — 35,897 Asset retirement obligations 9,945 9,696 Deferred tax liabilities 2,206 2,162 Other 10,696 10,954 Total other non-current liabilities $ 47,556 $ 80,191 (1) The change between March 31, 2019 and December 31, 2018 is due to the adoption of ASC 842. See Note 2, “Recent Accounting Pronouncements,” for additional information. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
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; rather, they 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 2018 indicated no impairment. As of both March 31, 2019 and December 31, 2018, 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, 2019 and December 31, 2018 were as follows ( in thousands, except for weighted average remaining useful life ): Weighted Average As of March 31, 2019 As of December 31, 2018 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 2.7 $ 169,306 $ (121,933 ) $ 47,373 $ 164,580 $ (116,873 ) $ 47,707 Service customer relationship 1.1 8,081 (7,058 ) 1,023 8,081 (6,804 ) 1,277 Other intangible assets 7.8 3,000 (1,411 ) 1,589 3,000 (1,396 ) 1,604 OEM and dealer relationships 6,724 (6,724 ) — 6,724 (6,724 ) — Total amortized intangible assets 187,111 (137,126 ) 49,985 182,385 (131,797 ) 50,588 Unamortized intangible assets: FCC Licenses 32,283 — 32,283 32,283 — 32,283 Total intangible assets $ 219,394 $ (137,126 ) $ 82,268 $ 214,668 $ (131,797 ) $ 82,871 Amortization expense was $5.3 million and $7.6 million, respectively, for the three month periods ended March 31, 2019 and 2018. 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 2019 (period from April 1 to December 31) $ 16,775 2020 $ 15,915 2021 $ 11,061 2022 $ 4,230 2023 $ 1,090 Thereafter $ 914 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, 2019 | |
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 ten 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 $11.8 million and $12.3 million, respectively, as of March 31, 2019 and December 31, 2018. |
Long-Term Debt and Other Liabil
Long-Term Debt and Other Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Other Liabilities | 9. Long-Term Debt and Other Liabilities Long-term debt as of March 31, 2019 and December 31, 2018 was as follows ( in thousands ): March 31, December 31, 2019 2018 2022 Senior Secured Notes $ 701,910 $ 702,670 2022 Convertible Notes 193,012 190,083 2020 Convertible Notes 151,800 149,195 Total debt 1,046,722 1,041,948 Less deferred financing costs (16,363 ) (17,055 ) Total long-term debt $ 1,030,359 $ 1,024,893 2022 Senior Secured Notes – On June 14, 2016 (the “Issue Date”), Gogo Intermediate Holdings LLC (“GIH”) (a wholly owned subsidiary of Gogo Inc.) and Gogo Finance Co. Inc. (a wholly owned subsidiary of GIH) (the “Co-Issuer” and, together with GIH, the “Issuers”), issued $525 million aggregate principal amount of 12.500% senior secured notes due 2022 (the “Original 2022 Senior Secured Notes”) under an Indenture, dated as of June 14, 2016 (the “Original Indenture”), among the Issuers, us, as guarantor, certain subsidiaries of GIH, as guarantors (the “Subsidiary Guarantors” and, together with us, the “Guarantors”), and U.S. Bank National Association, as trustee (in such capacity, the “Trustee”) and as collateral agent (in such capacity, the “Collateral Agent”). On January 3, 2017, the Issuers issued $65 million aggregate principal amount of additional 12.500% senior secured notes due 2022 (the “January 2017 Additional Notes”). The January 2017 Additional Notes were issued at a price equal to 108% of their face value resulting in gross proceeds of $70.2 million. On September 20, 2017, the Issuers, the Guarantors and the Trustee entered into the first supplemental indenture (the “Supplemental Indenture” and, together with the Original Indenture, the “Indenture”) to modify certain covenants, as discussed below. On September 25, 2017, the Issuers issued $100 million aggregate principal amount of additional 12.500% senior secured notes due 2022 (the “September 2017 Additional Notes”). The September 2017 Additional Notes were issued at a price equal to 113% of their face value resulting in gross proceeds of $113.0 million. Additionally, we received approximately $2.9 million for interest that accrued from July 1, 2017 through September 24, 2017, which was paid in our January 2018 interest payment. We refer to the Original 2022 Senior Secured Notes, the January 2017 Additional Notes and the September 2017 Additional Notes collectively as the “2022 Senior Secured Notes.” 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 2022 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, 2019 and December 31, 2018, the outstanding principal amount of the 2022 Senior Secured Notes was $690.0 million and $690.0 million, respectively, the unamortized debt premium and Consent Fees were $11.9 million and $12.7 million, respectively, and the net carrying amount was $701.9 million and $702.7 million, respectively. Interest on the 2022 Senior Secured Notes accrues at the rate of 12.500% per annum and is payable semi-annually 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 2022 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 2022 Senior Secured Notes. The deferred financing costs on our unaudited condensed consolidated balance sheet are being amortized over the contractual term of the 2022 Senior Secured Notes using the effective interest method. Total amortization expense was $0.8 million and $0.6 million, respectively, for the three month periods ended March 31, 2019 and 2018. As of March 31, 2019 and December 31, 2018, the balance of unamortized deferred financing costs related to the 2022 Senior Secured Notes was $9.3 million and $10.0 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 2022 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 2022 Senior Secured Notes, if any, in each case to the extent of the value of the collateral securing the 2022 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 2022 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 2022 Senior Secured Notes and (ii) indebtedness secured on a junior priority basis by the same collateral securing the 2022 Senior Secured Notes, if any, in each case to the extent of any insufficiency in the collateral securing the 2022 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 (other than the Issuers). The 2022 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), subject to certain exceptions. The Issuers’ obligations under the 2022 Senior Secured Notes are not guaranteed by Gogo International Holdings LLC, a subsidiary of ours that holds no material assets other than equity interests in our foreign subsidiaries. Each guarantee is a senior secured obligation of such Guarantor and is: • 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 subsidiary of such Guarantor (excluding, in the case of our guarantee, the Issuers). The 2022 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 2022 Senior Secured Notes. The security interests in certain collateral may be released without the consent of holders of the 2022 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 2022 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 2022 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 2022 Senior Secured Notes in whole or in part. The 2022 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 2022 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; provided, however , that 2022 Senior Secured Notes representing at least 65% of the principal amount of the 2022 Senior Secured Notes remain outstanding immediately after each such redemption. The Issuers may redeem the 2022 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 2022 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 2022 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 2022 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 2022 Senior Secured Notes issued under the Indenture to be due and payable immediately. As of March 31, 2019, no event of default had occurred. On April 15, 2019, the Issuers elected to call for redemption in full all $690.0 100% of the principal amount of the 2022 Senior Secured Notes to be redeemed plus a make-whole premium and accrued and unpaid interest to, but not including, the redemption date. 2024 Senior Secured Notes The 2024 Senior Secured Notes will mature on May 1, 2024 semiannually The Convertible Notes 2022 Convertible Notes On November 21, 2018, we issued $215.0 million aggregate principal amount of 6.00% Convertible Senior Notes due 2022 (the “2022 Convertible Notes”) in private offerings to qualified institutional buyers, including pursuant to Rule 144A under the Securities Act, and in concurrent private placements. We granted an option to the initial purchasers to purchase up to an additional $32.3 million aggregate principal amount of 2022 Convertible Notes to cover over-allotments, of which $22.8 million was subsequently exercised during December 2018, resulting in a total issuance of $237.8 million aggregate principal amount of 2022 Convertible Notes. The 2022 Convertible Notes mature on May 15, 2022, unless earlier repurchased or converted into shares of our common stock under certain circumstances described below. Upon maturity, we have the option to settle our obligation through cash, shares of common stock, or a combination of cash and shares of common stock. We pay interest on the 2022 Convertible Notes semi-annually in arrears on May 15 and November 15 of each year. Interest payments begin on May 15, 2019. The $237.8 million of proceeds received from the issuance of the 2022 Convertible Notes was initially allocated between long-term debt (the liability component) at $188.7 million and additional paid-in capital (the equity component) at $49.1 million, within the consolidated balance sheet. The fair value of the liability component was measured using rates determined for similar debt instruments without a conversion feature. The carrying amount of the equity component, representing the conversion option, was determined by deducting the fair value of the liability component from the aggregate face value of the 2022 Convertible Notes. If we or the note holders elect not to settle the debt through conversion, we must settle the 2022 Convertible Notes at face value. Therefore, the liability component will be accreted up to the face value of the 2022 Convertible Notes, which will result in additional non-cash interest expense being recognized in the unaudited condensed consolidated statements of operations through the 2022 Convertible Notes maturity date (see Note 10, “Interest Costs,” for additional information). The effective interest rate on the 2022 Convertible Notes, including accretion of the notes to par and debt issuance cost amortization, was approximately 13.6%. The equity component will not be remeasured as long as it continues to meet the conditions for equity classification. As of March 31, 2019 and December 31, 2018, the outstanding principal on the 2022 Convertible Notes was $237.8 million and $237.8 million, respectively, the unamortized debt discount was $44.7 million and $47.7 million, respectively, and the net carrying amount of the liability component was $193.0 million and $190.1 million, respectively. We incurred approximately $8.1 million of issuance costs related to the issuance of the 2022 Convertible Notes, of which $6.4 million and $1.7 million were recorded to deferred financing costs and additional paid-in capital, respectively, in proportion to the allocation of the proceeds of the 2022 Convertible Notes. The $6.4 million recorded as deferred financing costs on our consolidated balance sheet is being amortized over the term of the 2022 Convertible Notes using the effective interest method. Total amortization expense of the deferred financing costs was $0.4 million for the three month period ended March 31, 2019. Amortization expense is included in interest expense in the unaudited condensed consolidated statements of operations. As of March 31, 2019 and December 31, 2018, the balance of unamortized deferred financing costs related to the 2022 Convertible Notes was $5.8 million and $6.2 million, respectively, and is included as a reduction to long-term debt in our consolidated balance sheets. See Note 10, “Interest Costs,” for additional information. The 2022 Convertible Notes had an initial conversion rate of 166.6667 common shares per $1,000 principal amount of 2022 Convertible Notes, which is equivalent to an initial conversion price of approximately $6.00 per share of our common stock. Upon conversion, we currently expect to deliver cash up to the principal amount of the 2022 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 method as their impact is anti-dilutive. Holders may convert the 2022 Convertible Notes, at their option, in multiples of $1,000 principal amount at any time prior to January 15, 2022, but only in the following circumstances: • during any fiscal quarter beginning after the fiscal quarter ended December 31, 2018, 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 2022 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 2022 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 2022 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 January 15, 2022 occurred during the three month period ended March 31, 2019 or the year ended December 31, 2018. Regardless of whether any of the foregoing circumstances occurs, a holder may convert its 2022 Convertible Notes, in multiples of $1,000 principal amount, at any time on or after January 15, 2022 until the second scheduled trading day immediately preceding May 15, 2022. In addition, if we undergo a fundamental change (as defined in the indenture governing the 2022 Convertible Notes), holders may, subject to certain conditions, require us to repurchase their 2022 Convertible Notes for cash at a price equal to 100% of the principal amount of the 2022 Convertible Notes to be purchased, plus any accrued and unpaid interest. In addition, following a make-whole fundamental change, we will increase the conversion rate in certain circumstances for a holder who elects to convert its notes in connection with such make-whole fundamental change. 2020 Convertible Notes On March 3, 2015, we issued $340.0 million aggregate principal amount of 3.75% Convertible Senior Notes due 2020 (the “2020 Convertible Notes”) in a private offering to qualified institutional buyers, pursuant to Rule 144A under the Securities Act. We granted an option to the initial purchasers to purchase up to an additional $60.0 million aggregate principal amount of 2020 Convertible Notes to cover over-allotments, of which $21.9 million was subsequently exercised during March 2015, resulting in a total issuance of $361.9 million aggregate principal amount of 2020 Convertible Notes. The 2020 Convertible Notes mature on March 1, 2020, unless earlier repurchased or converted into shares of our common stock under certain circumstances described below. Upon maturity, we have the option to settle our obligation through cash, shares of common stock, or a combination of cash and shares of common stock. We pay interest on the 2020 Convertible Notes semi-annually The $361.9 million of proceeds received from the issuance of the 2020 Convertible Notes was initially allocated between long-term debt (the liability component) at $261.9 million and additional paid-in capital (the equity component) at $100.0 million, within the consolidated balance sheet. The fair value of the liability component was measured using rates determined for similar debt instruments without a conversion feature. The carrying amount of the equity component, representing the conversion option, was determined by deducting the fair value of the liability component from the aggregate face value of the 2020 Convertible Notes. If we or the note holders elect not to settle the debt through conversion, we must settle the 2020 Convertible Notes at face value. Therefore, the liability component will be accreted up to the face value of the 2020 Convertible Notes, which will result in additional non-cash interest expense being recognized in the unaudited condensed consolidated statements of operations through the 2020 Convertible Notes maturity date (see Note 10, “Interest Costs,” for additional information). The effective interest rate on the 2020 Convertible Notes, including accretion of the notes to par and debt issuance cost amortization, was approximately 11.5%. The equity component will not be remeasured as long as it continues to meet the conditions for equity classification. As of March 31, 2019 and December 31, 2018, the outstanding principal on the 2020 Convertible Notes was $162.0 million and $162.0 million, respectively, the unamortized debt discount was $10.2 million and $12.8 million, respectively, and the net carrying amount of the liability component was $151.8 million and $149.2 million, respectively. We incurred approximately $10.4 million of issuance costs related to the issuance of the 2020 Convertible Notes, of which $7.5 million and $2.9 million were recorded to deferred financing costs and additional paid-in capital, respectively, in proportion to the allocation of the proceeds of the 2020 Convertible Notes. The $7.5 million recorded as deferred financing costs on our consolidated balance sheet is being amortized over the term of the 2020 Convertible Notes using the effective interest method. Total amortization expense of the deferred financing costs was $0.2 million and $0.4 million, respectively, for the three month periods ended March 31, 2019 and 2018. Amortization expense is included in interest expense in the unaudited condensed consolidated statements of operations. As of March 31, 2019 and December 31, 2018, the balance of unamortized deferred financing costs related to the 2020 Convertible Notes was $0.7 million and $0.9 million, respectively, and is included as a reduction to long-term debt in our consolidated balance sheets. See Note 10, “Interest Costs,” for additional information. The 2020 Convertible Notes had an initial conversion rate of 41.9274 common shares per $1,000 principal amount of 2020 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 2020 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 method as their impact is anti-dilutive. Holders may convert the 2020 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 2020 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 2020 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 2020 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, 2019 or the year ended December 31, 2018. Regardless of whether any of the foregoing circumstances occurs, a holder may convert its 2020 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 2020 Convertible Notes), holders may, subject to certain conditions, require us to repurchase their 2020 Convertible Notes for cash at a price equal to 100% of the principal amount of the 2020 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 2020 Convertible Notes in connection with such a corporate event in certain circumstances. On April 18, 2019, we commenced a cash tender offer (the “Tender Offer”) to purchase any and all of the outstanding 2020 Convertible Notes for an amount equal to $1,000 per $1,000 principal amount of 2020 Convertible Notes purchased, plus accrued and unpaid interest from the last interest payment date on the 2020 Convertible Notes to, but not including, the date of payment for the 2020 Convertible Notes accepted in the Tender Offer. The Tender Offer will expire at 11:59 p.m., Eastern time, on May 15, 2019, or any other date and time to which we extend such Tender Offer, unless earlier terminated. We expect to finance the payment of the purchase price for any 2020 Convertible Notes validly tendered in the Tender Offer and accepted for purchase by us with the proceeds we received from the issuance of the 2024 Senior Secured Notes and cash on hand. The Tender Offer is not conditioned upon a minimum amount of 2020 Convertible Notes being tendered and we cannot assure that the Tender Offer will be subscribed for in any amount. Forward Transactions In connection with the issuance of the 2020 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 Restricted Cash - Our restricted cash balances were $7.0 million and $7.0 million, respectively, as of March 31, 2019 and December 31, 2018 and primarily consist of letters of credit. Certain of the letters of credit require us to maintain restricted cash accounts in a similar amount, and are issued for the benefit of the landlords at our current office locations in Chicago, IL, Bensenville, IL and Broomfield, CO. |
Interest Costs
Interest Costs | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and 2018 (in thousands) : For the Three Months Ended March 31, 2019 2018 Interest costs charged to expense $ 26,531 $ 24,980 Amortization of deferred financing costs 1,249 1,035 Accretion of debt discount on Convertible Notes 5,534 5,224 Amortization of debt premium on Senior Secured Notes (760 ) (685 ) Interest expense 32,554 30,554 Interest costs capitalized to property and equipment 4 12 Interest costs capitalized to software 125 32 Total interest costs $ 32,683 $ 30,598 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | 11. Leases Operating and Financing Leases The following is a summary of our lease expense included in the unaudited condensed consolidated statements of operations (in thousands) : For the Three Months Ended March 31, 2019 Operating lease cost $ 4,918 Financing lease cost Amortization of leased assets 205 Interest on lease liabilities 11 Total lease cost $ 5,134 Other information regarding our leases is as follows (in thousands, except lease terms and discount rates) : For the Three Months Ended March 31, 2019 Supplemental cash flow information Cash paid for amounts included in measurement of lease liabilities: Operating cash flows used in operating leases $ 6,117 Operating cash flows used in financing leases 11 Financing cash flows used in financing leases 125 Right-of-use assets obtained in exchange for lease obligations: Operating leases 279 Weighted average remaining lease term Operating leases 9 years Financing leases 1 year Weighted average discount rate Operating leases 10.3 % Financing leases 8.7 % Annual future minimum lease payments as of March 31, 2019 (in thousands) : Operating Financing Leases Leases Years ending December 31, 2019 (period from April 1 to December 31) $ 16,966 $ 550 2020 21,192 206 2021 20,870 — 2022 19,441 — 2023 15,606 — Thereafter 76,900 — Total future minimum lease payments 170,975 756 Less: Amount representing interest (59,520 ) (28 ) Present value of net minimum lease payments $ 111,455 $ 728 Reported as of March 31, 2019 Accrued liabilities $ 11,585 $ 584 Non-current operating lease liabilities 99,870 — Other non-current liabilities — 144 Total lease liabilities $ 111,455 $ 728 As of December 31, 2018, annual future minimum obligations for operating leases for each of the next five years and thereafter, were as follows ( in thousands Operating Leases Years ending December 31, 2019 $ 21,902 2020 $ 19,867 2021 $ 19,742 2022 $ 18,420 2023 $ 14,826 Thereafter $ 78,100 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 $9.0 million and $7.6 million, respectively, for the three month periods ended March 31, 2019 and 2018 as a reduction to our cost of service revenue in our unaudited condensed consolidated statements of operations. As of March 31, 2019, deferred airborne lease incentives of $22.7 million and $131.7 million, respectively, are included in current and non-current liabilities in our unaudited condensed consolidated balance sheet. As of December 31, 2018, deferred airborne lease incentives of $24.1 million and $129.1 million, respectively, are included in current and non-current liabilities in our unaudited condensed consolidated balance sheet. The decrease in our deferred airborne lease incentives and the amortization of the deferred airborne lease incentives relate to the accounting impact of the transition of one of our airline agreements to the airline-directed model. See Note 1, “Basis of Presentation,” for additional information. 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 and CA-ROW service revenue generated from that airline’s passengers, which is unknown until realized. Therefore, we cannot estimate the lease payments due to an airline at the commencement of our contract with such airline. This rental expense is included in cost of service revenue and is partially offset by the amortization of the deferred airborne lease incentives discussed above. Such rental expenses totaled a net charge of $3.7 million and $6.4 million, respectively, for the three month periods ended March 31, 2019 and 2018. The decrease in rental expense was due to the transition of one of our airline agreements to the airline-directed model. See Note 1, “Basis of Presentation,” for additional information. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Contractual Commitments - We have agreements with vendors to provide us with transponder and teleport satellite services. These agreements vary in length and amount and as of March 31, 2019 commit us to purchase transponder and teleport satellite services totaling approximately $77.3 million in 2019 (April 1 through December 31), $95.2 million in 2020, $81.3 million in 2021, $67.6 million in 2022, $58.8 million in 2023 and $159.0 million thereafter. 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. A contract with one of our airline customers required us to provide the airline customer with a cash rebate of $1.8 million in June 2018, which has not yet been paid. Damages and Penalties - We have entered into a number of agreements with our airline partners that require us to provide a credit or pay penalties or liquidated damages to our airline partners if we are delayed in delivering our equipment, unable to install our equipment on aircraft by specified timelines or fail to comply with service level commitments. The maximum amount of future credits or payments we could be required to make under these agreements is uncertain because the amount of future credits or payments is based on certain variable inputs. Indemnifications and Guarantees - In accordance with Delaware law, we indemnify our officers and directors for certain events or occurrences while the officer or director is, or was, serving at our request in such capacity. The maximum potential amount of future payments we could be required to make under this indemnification is uncertain and may be unlimited, depending upon circumstances. However, our Directors’ and Officers’ insurance does provide coverage for certain of these losses. 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 the 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. Linksmart Litigation - On April 20, 2018 Securities Litigation June 27, 2018 Derivative Litigation - On September 25, 2018 |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
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 - defined as observable inputs such as quoted prices in active markets; • Level 2 - defined as observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3 - defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Long-Term Debt: Our financial assets and liabilities that are disclosed but not measured at fair value include the 2022 Senior Secured Notes, the 2022 Convertible Notes and the 2020 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 2022 Senior Secured Notes, 2022 Convertible Notes and 2020 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, 2019 unaudited condensed consolidated balance sheet, excluding any issuance costs, is the amount that a market participant would be willing to lend at March 31, 2019 to an entity with a credit rating similar to ours and achieve sufficient cash inflows to cover the scheduled cash outflows under the 2022 Senior Secured Notes, the 2022 Convertible Notes and the 2020 Convertible Notes. The calculated fair value of our 2022 Convertible Notes and 2020 Convertible Notes is correlated to our stock price and as a result, significant changes to our stock price could have a significant impact on their calculated fair values. The fair value and carrying value of long-term debt as of March 31, 2019 and December 31, 2018 were as follows (in thousands) : March 31, 2019 December 31, 2018 Fair Value (1) Carrying Fair Value (1) Carrying 2022 Senior Secured Notes $ 745,000 $ 701,910 (2) $ 737,000 $ 702,670 (2) 2022 Convertible Notes 236,000 193,012 (3) 216,000 190,083 (3) 2020 Convertible Notes 157,000 151,800 (4) 150,000 149,195 (4) (1) Fair value amounts are rounded to the nearest million. (2) Carrying value of the 2022 Senior Secured Notes includes unamortized debt premium and Consent Fees of $11.9 million and $12.7 million, respectively, as of March 31, 2019 and December 31, 2018. See Note 9, “Long-Term Debt and Other Liabilities,” for further information. (3) Carrying value of the 2022 Convertible Notes excludes unamortized debt discount of $44.7 million and $47.7 million, respectively, as of March 31, 2019 and December 31, 2018. See Note 9, “Long-Term Debt and Other Liabilities,” for further information. (4) Carrying value of the 2020 Convertible Notes excludes unamortized debt discount of $10.2 million and $12.8 million, respectively, as of March 31, 2019 and December 31, 2018. See Note 9, “Long-Term Debt and Other Liabilities,” for further information. We have held-to-maturity financial instruments where carrying value approximates fair value. There were no fair value adjustments to these financial instruments during the three month periods ended March 31, 2019 and 2018. |
Income Tax
Income Tax | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 14. Income Tax The effective income tax rates for the three month periods ended March 31, 2019 and 2018 were (1.2%) and 12.0%, respectively. For the three month period ended March 31, 2019, our income tax expense was not significant primarily due to the recording of a valuation allowance against our net deferred tax assets. 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 (“U.S. Tax Reform”), to our evaluation of our 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, 2019, we are no longer subject to U.S. federal, state, local or foreign examinations by tax authorities for years before 2015. 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, 2019 and 2018. As of March 31, 2019 and December 31, 2018, 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, 2019 | |
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,” Commercial Aviation Rest of World, or “CA-ROW,” and Business Aviation, or “BA.” See Note 1, “Basis of Presentation,” for further information regarding our segments. The accounting policies of the operating segments are the same as those described in Note 2, “Summary of Significant Accounting Policies,” in our 2018 10-K. Intercompany transactions between segments are excluded as they are not included in management’s performance review of the segments. For the three month periods ended March 31, 2019 and 2018, our foreign revenue accounted for less than 15% of our consolidated revenue. We do not segregate assets between segments for internal reporting. Therefore, asset-related information has not been presented. Additionally, assets outside of the United States totaled less than 15% of our unaudited condensed consolidated assets as of March 31, 2019 and December 31, 2018, respectively. For our airborne assets, we consider only those assets installed in aircraft associated with international commercial airline partners to be owned outside of the United States. 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 items (including amortization of deferred airborne lease incentives, stock-based compensation expense, amortization of STC costs and the accounting impact of the transition to the airline-directed model) and other income (expense). Segment profit (loss) is a measure of performance reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and evaluating segment performance. In addition, segment profit (loss) is included herein in conformity with ASC 280-10, Segment Reporting . Management believes that segment profit (loss) provides useful information for analyzing and evaluating the underlying operating results of each segment. However, segment profit (loss) should not be considered in isolation or as a substitute for net income (loss) attributable to common stock or other measures of financial performance prepared in accordance with GAAP. Additionally, our computation of segment profit (loss) may not be comparable to other similarly titled measures computed by other companies. Information regarding our reportable segments is as follows ( in thousands ): For the Three Months Ended March 31, 2019 CA-NA CA-ROW BA Total Service revenue $ 92,027 $ 19,772 $ 53,213 $ 165,012 Equipment revenue 4,042 13,159 17,336 34,537 Total revenue $ 96,069 $ 32,931 $ 70,549 $ 199,549 Segment profit (loss) $ 23,542 $ (19,149 ) $ 33,498 $ 37,891 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 (1) CA-NA equipment revenue for the three month period ended March 31, 2018 includes the accounting impact of the transition of one of our airline partners to the airline-directed model. See Note 1, “Basis of Presentation,” for additional information. A reconciliation of segment profit (loss) to the relevant consolidated amounts is as follows ( in thousands ): For the Three Months Ended March 31, 2019 2018 CA-NA segment profit $ 23,542 $ 1,656 CA-ROW segment loss (19,149 ) (22,605 ) BA segment profit 33,498 32,323 Total segment profit 37,891 11,374 Interest income 1,149 1,076 Interest expense (32,554 ) (30,554 ) Depreciation and amortization (30,749 ) (35,919 ) Transition to airline-directed model — 19,302 Amortization of deferred airborne lease incentives (1) 8,953 7,630 Amortization of STC costs (320 ) (172 ) Stock-based compensation expense (4,327 ) (4,386 ) Other income 3,365 505 Loss before income taxes $ (16,592 ) $ (31,144 ) (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 — Under the turnkey model, we refer to the airline as a “partner”, and under the airline-directed model, we refer to the airline as a “customer.” Revenue earned from passengers on aircraft operated by Delta Air Lines accounted for approximately 29% and 20% of consolidated revenue, respectively, for the three month periods During the three month periods ended March 31, 2019 and 2018, American Airlines accounted for approximately 10% and 36% of consolidated revenue, respectively. Revenue earned from American Airlines for the three month period ended March 31, 2018 included $45.4 million of equipment revenue recognized due to the airline’s transition to the airline-directed model in January 2018. See Note 1, “Basis of Presentation,” for additional information. American Airlines accounted for approximately 11% of consolidated accounts receivable as of December 31, 2018. |
Employee Retirement and Postret
Employee Retirement and Postretirement Benefits | 3 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Employee Retirement and Postretirement Benefits | 16. Employee Retirement and Postretirement Benefits Stock-Based Compensation — As of March 31, 2019, we maintained three stock-based employee compensation plans (“Stock Plans”). See Note 11, “Stock-Baaed Compensation,” in our 2018 10-K for further information regarding these plans. Most of our equity grants are awarded on an annual basis. For the three month period ended March 31, 2019, options to purchase 1,302,928 shares of common stock (of which 148,500 are options that contain a market condition and 50,000 For the three month period ended March 31, 2019, 1,946,799 Restricted Stock Units (“RSUs”) (of which 86,000 are RSUs that contain a market condition and 50,000 contain a performance condition, in addition to the time-based vesting requirements) were granted, 207,188 RSUs vested and 107,027 RSUs (of which 29,904 contained a market condition) were forfeited. For the three month period ended March 31, 2019, 36,145 restricted 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, 2019, 53,448 Deferred Stock Units were granted and vested. For the three month period ended March 31, 2019, 75,253 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, 2019 2018 Cost of service revenue $ 428 $ 434 Cost of equipment revenue 71 54 Engineering, design and development 774 910 Sales and marketing 970 1,082 General and administrative 2,084 1,906 Total stock-based compensation expense $ 4,327 $ 4,386 401(k) Plan — Under our 401(k) plan, all employees who are eligible to participate are entitled to make tax-deferred contributions, subject to Internal Revenue Service limitations. We match 100% of the employee’s first 4% of contributions made, subject to annual limitations. Our matching contributions were $1.2 million and $1.2 million, respectively, during the three month periods ended March 31, 2019 and 2018. |
Research and Development Costs
Research and Development Costs | 3 Months Ended |
Mar. 31, 2019 | |
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 $14.1 million and $19.2 million, respectively, during the three month periods ended March 31, 2019 and 2018. 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, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The Business - Gogo (“we,” “us,” “our”) is the global leader in providing broadband connectivity solutions and wireless in-flight entertainment to the aviation industry. We operate through the following three segments: Commercial Aviation North America, or “CA-NA,” Commercial Aviation Rest of World, or “CA-ROW,” and Business Aviation, or “BA.” Services provided by our CA-NA and CA-ROW businesses include Passenger Connectivity, which allows passengers to connect to the Internet from their personal Wi-Fi-enabled devices; Passenger Entertainment, which offers passengers the opportunity to enjoy a broad selection of in-flight entertainment options on their personal Wi-Fi enabled devices; and Connected Aircraft Services (“CAS”), which offers airlines connectivity for various operations and currently include, among other services, real-time credit card transaction processing, electronic flight bags and real-time weather information. Services are provided by CA-NA on commercial aircraft flying routes that generally begin and end within North America, which for this purpose includes the United States, Canada and Mexico. CA-ROW provides service on commercial aircraft operated by foreign-based commercial airlines and flights outside of North America for North American-based commercial airlines. The routes included in our CA-ROW segment are those that begin and/or end outside of North America (as defined above) on which our international service is provided. BA provides in-flight Internet connectivity and other voice and data communications products and services and sells equipment for in-flight telecommunications to the business aviation market. BA services include Gogo Biz, our in-flight broadband service, Passenger Entertainment, our in-flight entertainment service, and satellite-based voice and data services through our strategic alliances with satellite companies. Basis of Presentation - The accompanying unaudited condensed consolidated financial statements and notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conformity with Article 10 of Regulation S-X promulgated under the Securities Act of 1933, as amended (the “Securities Act”). Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements and should be read in conjunction with our annual audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 as filed with the Securities and Exchange Commission (“SEC”) on February 21, 2019 (the “2018 10-K”). These unaudited condensed consolidated financial statements reflect, in the opinion of management, all material adjustments (which include normal recurring adjustments) necessary to fairly state, in all material respects, our financial position, results of operations and cash flows for the periods presented. The results of operations and cash flows for the three month period ended March 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2019. We have one class of common stock outstanding as of March 31, 2019 and December 31, 2018. |
Reclassifications | Reclassifications |
Transition to airline-directed model | Transition of airline models - The accounting treatment for one of our airline agreements transitioned from our turnkey model to our airline-directed model in January 2018 due to specific provisions elected by the airline that resulted in the transfer of control of the previously installed connectivity equipment. Upon transition to the airline-directed model, the net book value of all previously delivered equipment classified within property and equipment was reclassified to cost of equipment revenue. Additionally, the unamortized proceeds previously received for equipment and classified within current and non-current deferred airborne lease incentives were eliminated and included as part of estimated contract value, which was then allocated amongst the various performance obligations under the agreement. The value allocated to previously delivered equipment was immediately recognized as equipment revenue in our unaudited condensed consolidated financial statements; refer to Note 3, “Revenue Recognition,” for additional disclosures relating to the allocation of consideration among identified performance obligations. For amounts recognized in equipment revenue that were in excess of the amounts billed, we recorded current and non-current contract assets included within prepaid expenses and other current assets and other non-current assets, respectively; refer to Note 3, “Revenue Recognition,” for additional details. In connection with the transition of this airline agreement to the airline-directed model, we also established warranty reserves related to previously sold equipment that are still under a warranty period, which is in cluded within accrued liabilities. See Note 8, “Warranties,” for additional information. This transition from the turnkey model to the airline-directed model occurred on January 4, 2018 and 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 (decrease) Unaudited condensed consolidated balance sheet Prepaid expense and other current assets $ 6,603 Property and equipment, net (32,716 ) Other non-current assets 18,783 Accrued liabilities 2,000 Current deferred airborne lease incentive (13,592 ) Non-current deferred airborne lease incentive (17,289 ) Unaudited condensed consolidated statement of operations Equipment revenue 45,396 Cost of equipment revenue 23,845 As of January 1, 2019, $ 46.8 |
Use of Estimates | Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates the significant estimates and bases such estimates on historical experience and on various other assumptions believed to be reasonable under the circumstances. However, actual results could differ materially from those estimates. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 (32,716 ) 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 23,845 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Summary of Adoption Impact of ASC 842 on Unaudited Condensed Consolidated Balance Sheet | Balances Balance at with December 31, Impact of Adoption of 2018 ASC 842 ASC 842 Assets Operating lease right-of-use assets $ — $ 72,188 $ 72,188 Liabilities Accrued liabilities 212,459 9,019 221,478 Non-current operating lease liabilities — 102,440 102,440 Other non-current liabilities 80,191 (36,178 ) 44,013 Equity Accumulated deficit (1,228,674 ) (3,093 ) (1,231,767 ) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Summary of Revenue Disaggregated by Category | The following table presents our revenue disaggregated by category (in thousands) : For the Three Months Ended March 31, 2019 CA-NA CA-ROW BA Total Service revenue Connectivity $ 79,818 $ 18,854 $ 52,685 $ 151,357 Entertainment, CAS and other 12,209 918 528 13,655 Total service revenue $ 92,027 $ 19,772 $ 53,213 $ 165,012 Equipment revenue ATG $ 2,872 $ — $ 11,335 $ 14,207 Satellite 630 13,159 5,235 19,024 Other 540 — 766 1,306 Total equipment revenue $ 4,042 $ 13,159 $ 17,336 $ 34,537 Customer type Airline passenger and aircraft owner/operator $ 54,349 $ 5,851 $ 53,213 $ 113,413 Airline, OEM and aftermarket dealer 30,913 25,491 17,336 73,740 Third party 10,807 1,589 — 12,396 Total revenue $ 96,069 $ 32,931 $ 70,549 $ 199,549 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 segment includes the $45.4 million related to the accounting impact of the transition of one of our airline partners to the airline-directed model. Approximately $43.4 million was included in ATG equipment revenue and approximately $2.0 million was included in satellite equipment revenue. 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 airline partners to the airline-directed model. |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and 2018; 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 2019 and 2018 as undistributed losses are not allocated to these shares ( in thousands, except per share amounts ): For the Three Months Ended March 31, 2019 2018 Net loss $ (16,799 ) $ (27,419 ) Less: Participation rights of the Forward Transactions — — Undistributed losses $ (16,799 ) $ (27,419 ) Weighted-average common shares outstanding-basic and diluted 80,446 79,696 Net loss attributable to common stock per share-basic and diluted $ (0.21 ) $ (0.34 ) |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories as of March 31, 2019 and December 31, 2018 were as follows ( in thousands ): March 31, December 31, 2019 2018 Work-in-process component parts $ 29,043 $ 30,340 Finished goods (1) 118,311 162,705 Total inventory $ 147,354 $ 193,045 (1) The change between March 31, 2019 and December 31, 2018 primarily relates to the accounting impact of one of our airline partner agreements transitioning to the turnkey model (see Note 1, “Basis of Presentation,” for additional information). |
Composition of Certain Balanc_2
Composition of Certain Balance Sheet Accounts (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets as of March 31, 2019 and December 31, 2018 were as follows ( in thousands ): March 31, December 31, 2019 2018 Contract assets $ 10,852 $ 10,423 Prepaid satellite services 7,170 7,755 Restricted cash 1,535 1,535 Other 12,583 14,982 Total prepaid expenses and other current assets $ 32,140 $ 34,695 |
Property and Equipment | Property and equipment as of March 31, 2019 and December 31, 2018 were as follows ( in thousands ): March 31, December 31, 2019 2018 Office equipment, furniture, fixtures and other $ 52,637 $ 52,320 Leasehold improvements 44,839 44,838 Airborne equipment (1) 715,055 642,151 Network equipment 210,044 205,463 1,022,575 944,772 Accumulated depreciation (457,090 ) (432,905 ) Total property and equipment, net $ 565,485 $ 511,867 (1) The change between March 31, 2019 and December 31, 2018 primarily relates to the accounting impact of one of our airline partner agreements transitioning to the turnkey model (see Note 1, “Basis of Presentation,” for additional information). |
Schedule of Other Non-Current Assets | Other non-current assets as of March 31, 2019 and December 31, 2018 were as follows ( in thousands ): March 31, December 31, 2019 2018 Contract assets $ 55,536 $ 49,517 Deferred STC costs 16,289 16,453 Restricted cash 5,426 5,426 Other 9,082 12,816 Total other non-current assets $ 86,333 $ 84,212 |
Accrued Liabilities | Accrued liabilities as of March 31, 2019 and December 31, 2018 were as follows ( in thousands ): March 31, December 31, 2019 2018 Employee compensation and benefits $ 13,437 $ 19,463 Airborne equipment and installation costs 17,625 25,119 Airline related accrued liabilities 41,609 45,077 Accrued interest 27,180 46,694 Accrued satellite network costs 14,989 19,557 Warranty reserve 11,750 12,291 Operating leases (1) 11,585 — Other 44,892 44,910 Total accrued liabilities $ 183,067 $ 213,111 (1) The change between March 31, 2019 and December 31, 2018 is due to the adoption of ASC 842. See Note 2, “Recent Accounting Pronouncements,” for additional information. |
Other Non-Current Liabilities | Other non-current liabilities as of March 31, 2019 and December 31, 2018 were as follows ( in thousands ): March 31, December 31, 2019 2018 Deferred revenue $ 24,709 $ 21,482 Deferred rent (1) — 35,897 Asset retirement obligations 9,945 9,696 Deferred tax liabilities 2,206 2,162 Other 10,696 10,954 Total other non-current liabilities $ 47,556 $ 80,191 (1) The change between March 31, 2019 and December 31, 2018 is due to the adoption of ASC 842. See Note 2, “Recent Accounting Pronouncements,” for additional information. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Other than Goodwill | Our intangible assets, other than goodwill, as of March 31, 2019 and December 31, 2018 were as follows ( in thousands, except for weighted average remaining useful life ): Weighted Average As of March 31, 2019 As of December 31, 2018 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 2.7 $ 169,306 $ (121,933 ) $ 47,373 $ 164,580 $ (116,873 ) $ 47,707 Service customer relationship 1.1 8,081 (7,058 ) 1,023 8,081 (6,804 ) 1,277 Other intangible assets 7.8 3,000 (1,411 ) 1,589 3,000 (1,396 ) 1,604 OEM and dealer relationships 6,724 (6,724 ) — 6,724 (6,724 ) — Total amortized intangible assets 187,111 (137,126 ) 49,985 182,385 (131,797 ) 50,588 Unamortized intangible assets: FCC Licenses 32,283 — 32,283 32,283 — 32,283 Total intangible assets $ 219,394 $ (137,126 ) $ 82,268 $ 214,668 $ (131,797 ) $ 82,871 |
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 2019 (period from April 1 to December 31) $ 16,775 2020 $ 15,915 2021 $ 11,061 2022 $ 4,230 2023 $ 1,090 Thereafter $ 914 |
Long-Term Debt and Other Liab_2
Long-Term Debt and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt as of March 31, 2019 and December 31, 2018 was as follows ( in thousands ): March 31, December 31, 2019 2018 2022 Senior Secured Notes $ 701,910 $ 702,670 2022 Convertible Notes 193,012 190,083 2020 Convertible Notes 151,800 149,195 Total debt 1,046,722 1,041,948 Less deferred financing costs (16,363 ) (17,055 ) Total long-term debt $ 1,030,359 $ 1,024,893 |
Summary of Redemption Prices Plus Accrued and Unpaid Interest | The 2022 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, 2019 | |
Text Block [Abstract] | |
Summary of Interest Costs | The following is a summary of our interest costs for the three month periods ended March 31, 2019 and 2018 (in thousands) : For the Three Months Ended March 31, 2019 2018 Interest costs charged to expense $ 26,531 $ 24,980 Amortization of deferred financing costs 1,249 1,035 Accretion of debt discount on Convertible Notes 5,534 5,224 Amortization of debt premium on Senior Secured Notes (760 ) (685 ) Interest expense 32,554 30,554 Interest costs capitalized to property and equipment 4 12 Interest costs capitalized to software 125 32 Total interest costs $ 32,683 $ 30,598 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lease expense included in the unaudited condensed consolidated statements of operations | The following is a summary of our lease expense included in the unaudited condensed consolidated statements of operations (in thousands) : For the Three Months Ended March 31, 2019 Operating lease cost $ 4,918 Financing lease cost Amortization of leased assets 205 Interest on lease liabilities 11 Total lease cost $ 5,134 |
Schedule Includes Other information About Leases | Other information regarding our leases is as follows (in thousands, except lease terms and discount rates) : For the Three Months Ended March 31, 2019 Supplemental cash flow information Cash paid for amounts included in measurement of lease liabilities: Operating cash flows used in operating leases $ 6,117 Operating cash flows used in financing leases 11 Financing cash flows used in financing leases 125 Right-of-use assets obtained in exchange for lease obligations: Operating leases 279 Weighted average remaining lease term Operating leases 9 years Financing leases 1 year Weighted average discount rate Operating leases 10.3 % Financing leases 8.7 % |
Annual future minimum lease payments | Annual future minimum lease payments as of March 31, 2019 (in thousands) : Operating Financing Leases Leases Years ending December 31, 2019 (period from April 1 to December 31) $ 16,966 $ 550 2020 21,192 206 2021 20,870 — 2022 19,441 — 2023 15,606 — Thereafter 76,900 — Total future minimum lease payments 170,975 756 Less: Amount representing interest (59,520 ) (28 ) Present value of net minimum lease payments $ 111,455 $ 728 Reported as of March 31, 2019 Accrued liabilities $ 11,585 $ 584 Non-current operating lease liabilities 99,870 — Other non-current liabilities — 144 Total lease liabilities $ 111,455 $ 728 As of December 31, 2018, annual future minimum obligations for operating leases for each of the next five years and thereafter, were as follows ( in thousands Operating Leases Years ending December 31, 2019 $ 21,902 2020 $ 19,867 2021 $ 19,742 2022 $ 18,420 2023 $ 14,826 Thereafter $ 78,100 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and December 31, 2018 were as follows (in thousands) : March 31, 2019 December 31, 2018 Fair Value (1) Carrying Fair Value (1) Carrying 2022 Senior Secured Notes $ 745,000 $ 701,910 (2) $ 737,000 $ 702,670 (2) 2022 Convertible Notes 236,000 193,012 (3) 216,000 190,083 (3) 2020 Convertible Notes 157,000 151,800 (4) 150,000 149,195 (4) (1) Fair value amounts are rounded to the nearest million. (2) Carrying value of the 2022 Senior Secured Notes includes unamortized debt premium and Consent Fees of $11.9 million and $12.7 million, respectively, as of March 31, 2019 and December 31, 2018. See Note 9, “Long-Term Debt and Other Liabilities,” for further information. (3) Carrying value of the 2022 Convertible Notes excludes unamortized debt discount of $44.7 million and $47.7 million, respectively, as of March 31, 2019 and December 31, 2018. See Note 9, “Long-Term Debt and Other Liabilities,” for further information. (4) Carrying value of the 2020 Convertible Notes excludes unamortized debt discount of $10.2 million and $12.8 million, respectively, as of March 31, 2019 and December 31, 2018. See Note 9, “Long-Term Debt and Other Liabilities,” for further information. |
Business Segments and Major C_2
Business Segments and Major Customers (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Reportable Segments | Information regarding our reportable segments is as follows ( in thousands ): For the Three Months Ended March 31, 2019 CA-NA CA-ROW BA Total Service revenue $ 92,027 $ 19,772 $ 53,213 $ 165,012 Equipment revenue 4,042 13,159 17,336 34,537 Total revenue $ 96,069 $ 32,931 $ 70,549 $ 199,549 Segment profit (loss) $ 23,542 $ (19,149 ) $ 33,498 $ 37,891 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 (1) CA-NA equipment revenue for the three month period ended March 31, 2018 includes the accounting impact of the transition of one of our airline partners to the airline-directed model. See Note 1, “Basis of Presentation,” for additional information. |
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, 2019 2018 CA-NA segment profit $ 23,542 $ 1,656 CA-ROW segment loss (19,149 ) (22,605 ) BA segment profit 33,498 32,323 Total segment profit 37,891 11,374 Interest income 1,149 1,076 Interest expense (32,554 ) (30,554 ) Depreciation and amortization (30,749 ) (35,919 ) Transition to airline-directed model — 19,302 Amortization of deferred airborne lease incentives (1) 8,953 7,630 Amortization of STC costs (320 ) (172 ) Stock-based compensation expense (4,327 ) (4,386 ) Other income 3,365 505 Loss before income taxes $ (16,592 ) $ (31,144 ) (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 Postr_2
Employee Retirement and Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 2018 Cost of service revenue $ 428 $ 434 Cost of equipment revenue 71 54 Engineering, design and development 774 910 Sales and marketing 970 1,082 General and administrative 2,084 1,906 Total stock-based compensation expense $ 4,327 $ 4,386 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)SegmentClassOfCommonStock | Dec. 31, 2018USD ($)ClassOfCommonStock | Jan. 01, 2019USD ($) | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Property, Plant and Equipment, Net | $ 565,485 | $ 511,867 | |
Number Of Classes Of Common Stock Outstanding | ClassOfCommonStock | 1 | 1 | |
Number of Operating Segments | Segment | 3 | ||
Contract with Customer, Asset, Net | $ 2,578 | ||
Prepaid Expense, Current | 7,170 | $ 7,755 | |
Current Financing Lease Liabilities [Member] | Previously Reported [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Accrued Liabilities | 652 | ||
SEC Schedule, 12-09, Reserve, Warranty [Member] | Previously Reported [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Accrued Liabilities | 442 | ||
Short-term Contract with Customer [Member] | Previously Reported [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Prepaid Expense, Current | 967 | ||
Other Assets, Current | $ 1,611 | ||
Air Line Inventory [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Property, Plant and Equipment, Net | $ 46,800 |
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, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Prepaid expense and other current assets | $ 32,140 | $ 34,695 | |
Property and equipment, net | (565,485) | (511,867) | |
Other non-current assets | 86,333 | 84,212 | |
Accrued liabilities | 183,067 | 213,111 | |
Current deferred airborne lease incentive | 22,726 | 24,145 | |
Non-current deferred airborne lease incentive | 131,743 | $ 129,086 | |
Equipment revenue | 199,549 | $ 231,825 | |
Cost of equipment revenue | 29,731 | $ 52,293 | |
Transition Agreements To Airline-directed Model [Member] | |||
Prepaid expense and other current assets | 6,603 | ||
Property and equipment, net | (32,716) | ||
Other non-current assets | 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 | $ 23,845 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements - Summary of Adoption Impact of ASC 842 on Unaudited Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assets | |||
Operating lease right-of-use assets | $ 70,129 | ||
Liabilities | |||
Accrued liabilities | 183,067 | 213,111 | |
Non-current operating lease liabilities | 99,870 | ||
Other non-current liabilities | 47,556 | 80,191 | |
Equity | |||
Accumulated deficit | (1,248,566) | $ (1,228,674) | |
Accounting Standards Update 2016-02 [Member] | |||
Assets | |||
Operating lease right-of-use assets | $ 72,188 | ||
Liabilities | |||
Accrued liabilities | 221,478 | ||
Non-current operating lease liabilities | 102,440 | ||
Other non-current liabilities | 44,013 | ||
Equity | |||
Accumulated deficit | $ (1,231,767) | ||
Difference between Guidance in Effect Before and after Topic 606 and ASC 34040 [Member] | Accounting Standards Update 2016-02 [Member] | |||
Assets | |||
Operating lease right-of-use assets | 72,188 | ||
Liabilities | |||
Accrued liabilities | 9,019 | ||
Non-current operating lease liabilities | 102,440 | ||
Other non-current liabilities | (36,178) | ||
Equity | |||
Accumulated deficit | $ (3,093) |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Revenue from Contracts with Customers [Line Items] | |||
Transaction price allocated to remaining performance obligations | $ 831,000 | ||
Service revenue occurring period | 1 year | ||
Future equipment revenue recognition period | Next one to three years | ||
Contract assets, current and non-current | $ 2,578 | ||
Future Equipment Revenue [Member] | |||
Revenue from Contracts with Customers [Line Items] | |||
Equipment revenue | 114,000 | ||
Connectivity and Entertainment Service Revenues [Member] | |||
Revenue from Contracts with Customers [Line Items] | |||
Transaction price allocated to remaining performance obligations | 717,000 | ||
Airline [Member] | |||
Revenue from Contracts with Customers [Line Items] | |||
Contract assets, current and non-current | 66,400 | $ 59,900 | |
Accounting Standards Update 2014-09 [Member] | |||
Revenue from Contracts with Customers [Line Items] | |||
Deferred revenue, current and non-current | 62,300 | 60,100 | |
Deferred STC costs | 16,300 | $ 16,500 | |
Accounting Standards Update 2014-09 [Member] | Engineering, Design and Development [Member] | |||
Revenue from Contracts with Customers [Line Items] | |||
Deferred STC costs recognized | $ 300 | $ 200 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Revenue Disaggregated by Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | $ 199,549 | $ 231,825 |
Airline Passenger and Aircraft Owner/Operator [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 113,413 | 105,303 |
Airline, OEM and Aftermarket Dealer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 73,740 | 111,305 |
Third Party [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 12,396 | 15,217 |
Service Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 165,012 | 150,678 |
Service Revenue [Member] | Connectivity [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 151,357 | 143,081 |
Service Revenue [Member] | Entertainment, CAS and Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 13,655 | 7,597 |
Equipment Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 34,537 | 81,147 |
Equipment Revenue [Member] | ATG [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 14,207 | 60,183 |
Equipment Revenue [Member] | Satellite [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 19,024 | 19,458 |
Equipment Revenue [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 1,306 | 1,506 |
CA-NA [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 96,069 | 143,821 |
CA-NA [Member] | Airline Passenger and Aircraft Owner/Operator [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 54,349 | 52,924 |
CA-NA [Member] | Airline, OEM and Aftermarket Dealer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 30,913 | 77,426 |
CA-NA [Member] | Third Party [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 10,807 | 13,471 |
CA-NA [Member] | Service Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 92,027 | 88,783 |
CA-NA [Member] | Service Revenue [Member] | Connectivity [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 79,818 | 82,040 |
CA-NA [Member] | Service Revenue [Member] | Entertainment, CAS and Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 12,209 | 6,743 |
CA-NA [Member] | Equipment Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 4,042 | 55,038 |
CA-NA [Member] | Equipment Revenue [Member] | ATG [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 2,872 | 44,762 |
CA-NA [Member] | Equipment Revenue [Member] | Satellite [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 630 | 10,276 |
CA-NA [Member] | Equipment Revenue [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 540 | |
CA-ROW [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 32,931 | 19,169 |
CA-ROW [Member] | Airline Passenger and Aircraft Owner/Operator [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 5,851 | 4,729 |
CA-ROW [Member] | Airline, OEM and Aftermarket Dealer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 25,491 | 12,694 |
CA-ROW [Member] | Third Party [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 1,589 | 1,746 |
CA-ROW [Member] | Service Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 19,772 | 14,245 |
CA-ROW [Member] | Service Revenue [Member] | Connectivity [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 18,854 | 13,649 |
CA-ROW [Member] | Service Revenue [Member] | Entertainment, CAS and Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 918 | 596 |
CA-ROW [Member] | Equipment Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 13,159 | 4,924 |
CA-ROW [Member] | Equipment Revenue [Member] | Satellite [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 13,159 | 4,924 |
BA [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 70,549 | 68,835 |
BA [Member] | Airline Passenger and Aircraft Owner/Operator [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 53,213 | 47,650 |
BA [Member] | Airline, OEM and Aftermarket Dealer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 17,336 | 21,185 |
BA [Member] | Service Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 53,213 | 47,650 |
BA [Member] | Service Revenue [Member] | Connectivity [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 52,685 | 47,392 |
BA [Member] | Service Revenue [Member] | Entertainment, CAS and Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 528 | 258 |
BA [Member] | Equipment Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 17,336 | 21,185 |
BA [Member] | Equipment Revenue [Member] | ATG [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 11,335 | 15,421 |
BA [Member] | Equipment Revenue [Member] | Satellite [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 5,235 | 4,258 |
BA [Member] | Equipment Revenue [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | $ 766 | $ 1,506 |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Revenue Disaggregated by Category (Parenthetical) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)Segment | |
Disaggregation of Revenue [Line Items] | |
Number of operating segments | Segment | 3 |
ATG [Member] | CA-NA [Member] | |
Disaggregation of Revenue [Line Items] | |
Equipment revenue | $ 43.4 |
Satellite [Member] | CA-NA [Member] | |
Disaggregation of Revenue [Line Items] | |
Equipment revenue | 2 |
Airline, OEM and Aftermarket Dealer [Member] | Product [Member] | Transition Agreements To Airline-directed Model [Member] | CA-NA [Member] | |
Disaggregation of Revenue [Line Items] | |
Equipment revenue | 45.4 |
Airline Partners [Member] | Product [Member] | Transition Agreements To Airline-directed Model [Member] | CA-NA [Member] | |
Disaggregation of Revenue [Line Items] | |
Equipment revenue | $ 45.4 |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
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, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (16,799) | $ (27,419) |
Less: Participation rights of the Forward Transactions | ||
Undistributed losses | $ (16,799) | $ (27,419) |
Weighted-average common shares outstanding-basic and diluted | 80,446 | 79,696 |
Net loss attributable to common stock per share-basic and diluted | $ (0.21) | $ (0.34) |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Work-in-process component parts | $ 29,043 | $ 30,340 |
Finished goods | 118,311 | 162,705 |
Total inventory | $ 147,354 | $ 193,045 |
Composition of Certain Balanc_3
Composition of Certain Balance Sheet Accounts - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Prepaid Expense and Other Assets [Abstract] | ||
Contract assets | $ 10,852 | $ 10,423 |
Prepaid satellite services | 7,170 | 7,755 |
Restricted cash | 1,535 | 1,535 |
Other | 12,583 | 14,982 |
Total prepaid expenses and other current assets | $ 32,140 | $ 34,695 |
Composition of Certain Balanc_4
Composition of Certain Balance Sheet Accounts - Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,022,575 | $ 944,772 |
Accumulated depreciation | (457,090) | (432,905) |
Total property and equipment, net | 565,485 | 511,867 |
Office Equipment, Furniture, Fixtures and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 52,637 | 52,320 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 44,839 | 44,838 |
Airborne Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 715,055 | 642,151 |
Network Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 210,044 | $ 205,463 |
Composition of Certain Balanc_5
Composition of Certain Balance Sheet Accounts - Schedule of Other Non-Current Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Other Assets, Noncurrent [Abstract] | ||
Contract assets | $ 55,536 | $ 49,517 |
Deferred STC costs | 16,289 | 16,453 |
Restricted cash | 5,426 | 5,426 |
Other | 9,082 | 12,816 |
Total other non-current assets | $ 86,333 | $ 84,212 |
Composition of Certain Balanc_6
Composition of Certain Balance Sheet Accounts - Accrued Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accrued Liabilities, Current [Abstract] | ||
Employee compensation and benefits | $ 13,437 | $ 19,463 |
Airborne equipment and installation costs | 17,625 | 25,119 |
Airline related accrued liabilities | 41,609 | 45,077 |
Accrued interest | 27,180 | 46,694 |
Accrued satellite network costs | 14,989 | 19,557 |
Warranty reserve | 11,750 | 12,291 |
Operating leases | 11,585 | |
Other | 44,892 | 44,910 |
Total accrued liabilities | $ 183,067 | $ 213,111 |
Composition of Certain Balanc_7
Composition of Certain Balance Sheet Accounts - Other Non-Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Other Liabilities, Noncurrent [Abstract] | ||
Deferred revenue | $ 24,709 | $ 21,482 |
Deferred rent | 35,897 | |
Asset retirement obligations | 9,945 | 9,696 |
Deferred tax liabilities | 2,206 | 2,162 |
Other | 10,696 | 10,954 |
Total other non-current liabilities | $ 47,556 | $ 80,191 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 0.6 | $ 0.6 | |
Amortization expense | $ 5.3 | $ 7.6 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets, Other than Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets Net Excluding Goodwill [Line Items] | ||
Total intangible assets, Gross Carrying Amount | $ 219,394 | $ 214,668 |
Amortized intangible assets, Gross Carrying Amount | 187,111 | 182,385 |
Amortized intangible assets, Accumulated Amortization | (137,126) | (131,797) |
Amortized intangible assets, Net Carrying Amount | 49,985 | 50,588 |
Total intangible assets, Net Carrying Amount | 82,268 | 82,871 |
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 8 months 12 days | |
Amortized intangible assets, Gross Carrying Amount | $ 169,306 | 164,580 |
Amortized intangible assets, Accumulated Amortization | (121,933) | (116,873) |
Amortized intangible assets, Net Carrying Amount | 47,373 | 47,707 |
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) |
Service Customer Relationships [Member] | ||
Intangible Assets Net Excluding Goodwill [Line Items] | ||
Weighted Average Remaining Useful Life (in years) | 1 year 1 month 6 days | |
Amortized intangible assets, Gross Carrying Amount | $ 8,081 | 8,081 |
Amortized intangible assets, Accumulated Amortization | (7,058) | (6,804) |
Amortized intangible assets, Net Carrying Amount | $ 1,023 | 1,277 |
Other Intangible Assets [Member] | ||
Intangible Assets Net Excluding Goodwill [Line Items] | ||
Weighted Average Remaining Useful Life (in years) | 7 years 9 months 18 days | |
Amortized intangible assets, Gross Carrying Amount | $ 3,000 | 3,000 |
Amortized intangible assets, Accumulated Amortization | (1,411) | (1,396) |
Amortized intangible assets, Net Carrying Amount | $ 1,589 | $ 1,604 |
Intangible Assets - Summary of
Intangible Assets - Summary of Amortization Expenses (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2019 (period from April 1 to December 31) | $ 16,775 |
2020 | 15,915 |
2021 | 11,061 |
2022 | 4,230 |
2023 | 1,090 |
Thereafter | $ 914 |
Warranties - Additional Informa
Warranties - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Guarantor Obligations [Line Items] | ||
Warranty reserve balance | $ 11,750 | $ 12,291 |
Maximum [Member] | ||
Guarantor Obligations [Line Items] | ||
Warranty term | 10 years | |
Minimum [Member] | ||
Guarantor Obligations [Line Items] | ||
Warranty term | 2 years |
Long-Term Debt and Other Liab_3
Long-Term Debt and Other Liabilities - Additional Information (Detail) $ / shares in Units, shares in Millions | Jan. 03, 2017USD ($) | Jun. 14, 2016USD ($) | Mar. 03, 2015USD ($)$ / sharesshares | Apr. 25, 2019USD ($) | Apr. 18, 2019USD ($) | Apr. 15, 2019USD ($) | Nov. 30, 2018USD ($) | Nov. 21, 2018USD ($)$ / shares | Sep. 25, 2017USD ($) | Sep. 20, 2017USD ($) | Mar. 31, 2015shares | Mar. 31, 2019USD ($)Tradingdayshares | Mar. 31, 2018USD ($)shares | Dec. 31, 2018USD ($) | May 07, 2019USD ($) | May 03, 2019USD ($) | Sep. 19, 2017USD ($) |
Debt Instrument [Line Items] | |||||||||||||||||
Total debt | $ 1,046,722,000 | $ 1,041,948,000 | |||||||||||||||
Amortization of deferred financing costs | 1,249,000 | $ 1,035,000 | |||||||||||||||
Additional paid-in-capital | $ 967,727,000 | 963,458,000 | |||||||||||||||
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 | $ 7,000,000 | 7,000,000 | |||||||||||||||
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 | $ 690,000,000 | 690,000,000 | ||||||||||||||
Interest rate | 12.50% | 12.50% | |||||||||||||||
Unamortized debt premium and consent fees | $ 11,900,000 | 12,700,000 | |||||||||||||||
Total debt | $ 701,900,000 | 702,700,000 | |||||||||||||||
Interest rate payable term | semi-annually | ||||||||||||||||
Loan origination fees | $ 11,400,000 | ||||||||||||||||
Amortization of deferred financing costs | 800,000 | $ 600,000 | |||||||||||||||
Debt issuance costs | 9,300,000 | 10,000,000 | |||||||||||||||
Debt Instrument, Face Amount | $ 525,000,000 | $ 690,000,000 | 690,000,000 | ||||||||||||||
12.500% Senior Secured Notes Due 2022 [Member] | Subsequent Event [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument redemption price, percentage | 100.00% | ||||||||||||||||
Debt Instrument, Repurchased Face Amount | $ 690,000,000 | ||||||||||||||||
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 | ||||||||||||||||
Debt Instrument, Face Amount | $ 65,000,000 | ||||||||||||||||
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 | ||||||||||||||||
Debt Instrument, Face Amount | $ 100,000,000 | ||||||||||||||||
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 | 1,400,000 | |||||||||||||||
Debt Instrument, Face Amount | $ 175,000,000 | $ 75,000,000 | |||||||||||||||
3.75% Convertible Senior Notes [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount | $ 361,900,000 | ||||||||||||||||
Interest rate | 3.75% | ||||||||||||||||
Interest rate payable term | semi-annually | ||||||||||||||||
Amortization of deferred financing costs | 200,000 | 400,000 | |||||||||||||||
Debt issuance costs | 700,000 | 900,000 | |||||||||||||||
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 | 261,900,000 | $ 151,800,000 | 149,195,000 | ||||||||||||||
Effective interest rate on convertible notes | 11.50% | ||||||||||||||||
Proceeds received from the issuance of the convertible notes | $ 361,900,000 | $ 162,000,000 | 162,000,000 | ||||||||||||||
Convertible Notes, unamortized discount | 10,200,000 | 12,800,000 | |||||||||||||||
Conversion rate | 41.9274 | ||||||||||||||||
Principal amount | $ 1,000 | $ 1,000 | 1,000 | ||||||||||||||
Conversion price | $ / shares | $ 23.85 | ||||||||||||||||
Multiples of principal amount | $ 1,000 | ||||||||||||||||
Forward stock repurchase transactions amount | 140,000,000 | ||||||||||||||||
Forward stock repurchase transaction, shares | shares | 7.2 | ||||||||||||||||
Repayment of convertible notes | $ 199,900,000 | ||||||||||||||||
Increase in convertale notes | $ 17,900,000 | ||||||||||||||||
Debt Instrument, Face Amount | 361,900,000 | ||||||||||||||||
3.75% Convertible Senior Notes [Member] | Subsequent Event [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument Redemption Price | $ 1,000 | ||||||||||||||||
Debt Instrument Principal Redemption | $ 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 | Tradingday | 20 | ||||||||||||||||
Common stock price consecutive trading days | Tradingday | 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 | Tradingday | 5 | ||||||||||||||||
Common stock price consecutive trading days | Tradingday | 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 | ||||||||||||||||
Issuance cost recorded to deferred financing costs | $ 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 | ||||||||||||||||
Debt Instrument, Face Amount | $ 340,000,000 | ||||||||||||||||
6.00% Convertible Senior Notes [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount | $ 237,800,000 | ||||||||||||||||
Interest rate | 6.00% | ||||||||||||||||
Interest rate payable term | Semi-annually | ||||||||||||||||
Amortization of deferred financing costs | $ 400,000 | ||||||||||||||||
Debt issuance costs | 5,800,000 | 6,200,000 | |||||||||||||||
Debt instrument redemption price, percentage | 100.00% | ||||||||||||||||
Option granted to initial purchasers | $ 32,300,000 | ||||||||||||||||
Principal amount of Convertible Notes, subsequently exercised | 22,800,000 | ||||||||||||||||
Additional paid-in-capital | 49,100,000 | ||||||||||||||||
Convertible Notes, carrying amount of liability component | $ 188,700,000 | 193,000,000 | 190,100,000 | ||||||||||||||
Effective interest rate on convertible notes | 13.60% | ||||||||||||||||
Proceeds received from the issuance of the convertible notes | $ 237,800,000 | ||||||||||||||||
Convertible Notes, unamortized discount | 44,700,000 | 47,700,000 | |||||||||||||||
Conversion rate | 166.6667 | ||||||||||||||||
Principal amount | $ 1,000 | 1,000 | $ 1,000 | ||||||||||||||
Conversion price | $ / shares | $ 6 | ||||||||||||||||
Multiples of principal amount | $ 1,000 | ||||||||||||||||
Outstanding principal balance paid | $ 237,800,000 | $ 237,800,000 | |||||||||||||||
Debt Instrument, Face Amount | 237,800,000 | ||||||||||||||||
6.00% 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 | Tradingday | 20 | ||||||||||||||||
Common stock price consecutive trading days | Tradingday | 30 | ||||||||||||||||
6.00% Convertible Senior Notes [Member] | Maximum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument redemption price, percentage | 98.00% | ||||||||||||||||
Common stock price trading days | Tradingday | 5 | ||||||||||||||||
Common stock price consecutive trading days | Tradingday | 5 | ||||||||||||||||
6.00% Convertible Senior Notes [Member] | Issuance Costs [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Loan origination fees | 8,100,000 | ||||||||||||||||
Additional paid-in-capital | 1,700,000 | ||||||||||||||||
Issuance cost recorded to deferred financing costs | 6,400,000 | ||||||||||||||||
6.00% Convertible Senior Notes [Member] | Institutional Buyers [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount | 215,000,000 | ||||||||||||||||
Debt Instrument, Face Amount | $ 215,000,000 | ||||||||||||||||
9.875% Senior secured Notes Due On 2024 [Member] | Subsequent Event [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount | $ 905,000,000 | ||||||||||||||||
Interest rate | 9.875% | ||||||||||||||||
Maturity date | May 1, 2024 | ||||||||||||||||
Debt Instrument, Interest Rate Terms | semiannually | ||||||||||||||||
Debt Instrument, Face Amount | $ 905,000,000 | ||||||||||||||||
9.875% Senior secured Notes Due On 2024 [Member] | May Two Thousand And Nineteen Additional Notes [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount | $ 20,000,000 | ||||||||||||||||
Guarantee obligations maximum exposure | $ 20,000,000 | ||||||||||||||||
Debt Instrument, Face Amount | $ 20,000,000 |
Long-Term Debt and Other Liab_4
Long-Term Debt and Other Liabilities - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 03, 2015 |
Debt Instrument [Line Items] | |||
Total debt | $ 1,046,722 | $ 1,041,948 | |
Less deferred financing costs | (16,363) | (17,055) | |
Total long-term debt | 1,030,359 | 1,024,893 | |
12.500% Senior Secured Notes Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Secured Notes | 701,910 | 702,670 | |
Total debt | 701,900 | 702,700 | |
2022 Convertible Notes [Member] | |||
Debt Instrument [Line Items] | |||
Convertible Notes | 193,012 | 190,083 | |
2020 Convertible Notes [Member] | |||
Debt Instrument [Line Items] | |||
Convertible Notes | $ 151,800 | $ 149,195 | $ 261,900 |
Long-Term Debt and Other Liab_5
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, 2019 | |
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, 2019 | Mar. 31, 2018 | |
Schedule Of Interest [Line Items] | ||
Interest costs charged to expense | $ 26,531 | $ 24,980 |
Amortization of deferred financing costs | 1,249 | 1,035 |
Accretion of debt discount on Convertible Notes | 5,534 | 5,224 |
Amortization of debt premium on Senior Secured Notes | (760) | (685) |
Interest expense | 32,554 | 30,554 |
Total interest costs | 32,683 | 30,598 |
Property and Equipment [Member] | ||
Schedule Of Interest [Line Items] | ||
Interest costs capitalized | 4 | 12 |
Software [Member] | ||
Schedule Of Interest [Line Items] | ||
Interest costs capitalized | $ 125 | $ 32 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Leases [Line Items] | |||
Amortization of deferred airborne lease incentives | $ 8,953 | $ 7,630 | |
Deferred airborne lease incentives included in current liabilities | 22,726 | $ 24,145 | |
Deferred airborne lease incentives included in non-current liabilities | 131,743 | $ 129,086 | |
Revenue share expense, net of amortization of deferred airborne lease incentives | $ 3,700 | $ 6,400 | |
Lessee operating lease option to extend | 20 years |
Leases - summary of our lease e
Leases - summary of our lease expense (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Operating lease cost | $ 4,918 |
Finance lease cost | |
Amortization of leased assets | 205 |
Interest on lease liabilities | 11 |
Total lease cost | $ 5,134 |
Leases - Other information rega
Leases - Other information regarding our leases (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in measurement of lease liabilities: | |
Operating cash flows used in operating leases | $ 6,117 |
Operating cash flows used in financing leases | 11 |
Financing cash flows used in financing leases | 125 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | $ 279 |
Weighted average remaining lease term | |
Operating leases | 9 years |
Financing leases | 1 year |
Weighted average discount rate | |
Operating leases | 10.30% |
Financing leases | 8.70% |
Leases - Annual Future Minimum
Leases - Annual Future Minimum Obligations for Operating Leases Other than Arrangements with Commercial Airline Partners (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Operating Leases | ||
2019 (period from April 1 to December 31) | $ 16,966 | $ 21,902 |
2020 | 21,192 | 19,867 |
2021 | 20,870 | 19,742 |
2022 | 19,441 | 18,420 |
2023 | 15,606 | 14,826 |
Thereafter | 76,900 | 78,100 |
Total future minimum lease payments | 170,975 | |
Less: Amount representing interest | (59,520) | |
Present value of net minimum lease payments | 111,455 | |
Accrued liabilities | 11,585 | |
Non-current operating lease liabilities | 99,870 | |
Total lease liabilities | 111,455 | |
Financing Leases | ||
2019 (period from April 1 to December 31) | 550 | |
2020 | 206 | |
Total future minimum lease payments | 756 | |
Less: Amount representing interest | (28) | |
Present value of net minimum lease payments | 728 | |
Accrued liabilities | 584 | |
Other non-current liabilities | 144 | |
Total lease liabilities | $ 728 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Jun. 30, 2018 | Mar. 31, 2019 | |
Loss Contingencies [Line Items] | ||
2019 (April 1 through December 31) | $ 77.3 | |
2020 | 95.2 | |
2021 | 81.3 | |
2022 | 67.6 | |
2023 | 58.8 | |
Thereafter | $ 159 | |
Contingent annual cash rebate | $ 1.8 | |
Linksmart Litigation [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation filing date | April 20, 2018 | |
Securities Litigation [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation filing date | June 27, 2018 | |
Derivative Litigation [Member] | ||
Loss Contingencies [Line Items] | ||
Litigation filing date | September 25, 2018 and September 26, 2018 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets fair value adjustments | $ 0 | $ 0 |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities - Summary of Fair Value and Carrying Value of Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 03, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total debt | $ 1,046,722 | $ 1,041,948 | |
2022 Senior Secured Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value of Long Term Debt | 745,000 | 737,000 | |
Total debt | 701,910 | 702,670 | |
2022 Convertible Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value of Convertible Notes | 236,000 | 216,000 | |
Carrying Value of Convertible Notes | 193,012 | 190,083 | |
2020 Convertible Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value of Convertible Notes | 157,000 | 150,000 | |
Carrying Value of Convertible Notes | $ 151,800 | $ 149,195 | $ 261,900 |
Fair Value of Financial Asset_5
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, 2019 | Dec. 31, 2018 |
2022 Senior Secured Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unamortized debt premium and consent fees | $ 11.9 | $ 12.7 |
6% Convertible Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Unamortized Discount | 44.7 | 47.7 |
3.75% Convertible Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Unamortized Discount | $ 10.2 | $ 12.8 |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Tax Credit Carryforward [Line Items] | |||
Effective income tax rate | (1.20%) | 12.00% | |
Reduction in our valuation allowance due to tax reform | $ 4 | ||
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 C_3
Business Segments and Major Customers - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019SegmentCustomerPartner | Mar. 31, 2018CustomerPartner | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | Segment | 3 | ||
Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of customers meeting concentration risk threshold | 0 | 0 | |
Revenue [Member] | Customer Concentration Risk [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of benchmark | 15.00% | 15.00% | |
Revenue [Member] | Customer Concentration Risk [Member] | Delta Airline and American Airlines [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of benchmark | 29.00% | 20.00% | |
Revenue [Member] | Customer Concentration Risk [Member] | American Airlines [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of benchmark | 10.00% | 36.00% | |
Accounts Receivable [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of customers meeting concentration risk threshold | 1 | ||
Number of airline partners meeting concentration risk threshold | Partner | 1 | 1 | |
Accounts Receivable [Member] | Credit Concentration Risk [Member] | American Airlines [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of benchmark | 11.00% | ||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Delta Air Lines [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of benchmark | 11.00% | 11.00% |
Business Segments and Major C_4
Business Segments and Major Customers - Summary of Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 199,549 | $ 231,825 |
Segment profit (loss) | 37,891 | 11,374 |
Service [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 165,012 | 150,678 |
Product [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 34,537 | 81,147 |
CA-NA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 96,069 | 143,821 |
Segment profit (loss) | 23,542 | 1,656 |
CA-NA [Member] | Service [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 92,027 | 88,783 |
CA-NA [Member] | Product [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 4,042 | 55,038 |
CA-ROW [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 32,931 | 19,169 |
Segment profit (loss) | (19,149) | (22,605) |
CA-ROW [Member] | Service [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 19,772 | 14,245 |
CA-ROW [Member] | Product [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 13,159 | 4,924 |
BA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 70,549 | 68,835 |
Segment profit (loss) | 33,498 | 32,323 |
BA [Member] | Service [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 53,213 | 47,650 |
BA [Member] | Product [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 17,336 | $ 21,185 |
Business Segments and Major C_5
Business Segments and Major Customers - Reconciliation of Segment Profit (loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment profit (loss) | $ 37,891 | $ 11,374 |
Interest income | 1,149 | 1,076 |
Interest expense | (32,554) | (30,554) |
Depreciation and amortization | (30,749) | (35,919) |
Transition to airline-directed model | 19,302 | |
Amortization of deferred airborne lease incentives | 8,953 | 7,630 |
Amortization of STC costs | (320) | (172) |
Stock compensation expense | (4,327) | (4,386) |
Other income | 3,365 | 505 |
Loss before income taxes | (16,592) | (31,144) |
CA-NA [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment profit (loss) | 23,542 | 1,656 |
CA-ROW [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment profit (loss) | (19,149) | (22,605) |
BA [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment profit (loss) | $ 33,498 | $ 32,323 |
Employee Retirement and Postr_3
Employee Retirement and Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Employee Contribution | 100.00% | |
Percentage of employees contribution matched by the company | 4.00% | |
Employer Contribution | $ 1.2 | $ 1.2 |
Stock options, shares granted | 1,302,928 | |
Stock options exercised | 111,963 | |
Stock options, shares expired | 5,225 | |
Market Condition [Member] | ||
Stock options, shares granted | 148,500 | |
Stock options exercised | 111,963 | |
Share units granted | 86,000 | |
Share units forfeited | 29,904 | |
Restricted Stock Units (RSUs) [Member] | ||
Share units granted | 1,946,799 | |
Share units forfeited | 107,027 | |
Share units vested | 207,188 | |
Restricted Stock [Member] | ||
Share units vested | 36,145 | |
Deferred Stock Units [Member] | ||
Share units granted | 53,448 | |
Share units vested | 53,448 | |
Performance Condition [Member] | ||
Stock options, shares granted | 50,000 | |
Share units granted | 50,000 | |
Employee Stock Purchase Plan [Member] | ||
Common stock, shares issued under ESPP | 75,253 |
Employee Retirement and Postr_4
Employee Retirement and Postretirement Benefits - Summary of Stock-Based Compensation Expense by Operating Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 4,327 | $ 4,386 |
Cost of Service Revenue [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 428 | 434 |
Cost of Equipment Revenue [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 71 | 54 |
Engineering, Design and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 774 | 910 |
Sales and Marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 970 | 1,082 |
General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 2,084 | $ 1,906 |
Research and Development Costs
Research and Development Costs - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Research and Development Expense | $ 14.1 | $ 19.2 |