Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 09, 2020 | Jun. 28, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | GOGO | ||
Entity Registrant Name | Gogo Inc. | ||
Entity Central Index Key | 0001537054 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Title of 12(b) Security | Common stock | ||
Security Exchange Name | NASDAQ | ||
Entity Address, Country | IL | ||
Entity Common Stock, Shares Outstanding | 83,318,003 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 226,694,957 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 170,016 | $ 184,155 |
Short-term investments | 39,323 | |
Total cash, cash equivalents and short-term investments | 170,016 | 223,478 |
Accounts receivable, net of allowances of $686 and $500, respectively | 101,360 | 134,308 |
Inventories | 117,144 | 193,045 |
Prepaid expenses and other current assets | 36,305 | 34,695 |
Total current assets | 424,825 | 585,526 |
Non-current assets: | ||
Property and equipment, net | 560,318 | 511,867 |
Goodwill and intangible assets, net | 76,499 | 83,491 |
Operating lease right-of-use assets | 63,386 | |
Other non-current assets | 89,672 | 84,212 |
Total non-current assets | 789,875 | 679,570 |
Total assets | 1,214,700 | 1,265,096 |
Current liabilities: | ||
Accounts payable | 17,160 | 23,860 |
Accrued liabilities | 174,111 | 213,111 |
Deferred revenue | 34,789 | 38,571 |
Deferred airborne lease incentives | 26,582 | 24,145 |
Total current liabilities | 252,642 | 299,687 |
Non-current liabilities: | ||
Long-term debt | 1,101,248 | 1,024,893 |
Deferred airborne lease incentives | 135,399 | 129,086 |
Non-current operating lease liabilities | 77,808 | |
Other non-current liabilities | 46,493 | 80,191 |
Total non-current liabilities | 1,360,948 | 1,234,170 |
Total liabilities | 1,613,590 | 1,533,857 |
Commitments and contingencies (Note 16) | ||
Stockholders' deficit | ||
Common stock, par value $0.0001 per share; 500,000,000 shares authorized at December 31, 2019 and 2018; 88,292,821 and 87,678,812 shares issued at December 31, 2019 and 2018, respectively; and 88,240,877 and 87,560,694 shares outstanding at December 31, 2019 and 2018, respectively | 9 | 9 |
Additional paid-in-capital | 979,499 | 963,458 |
Accumulated other comprehensive loss | (2,256) | (3,554) |
Accumulated deficit | (1,376,142) | (1,228,674) |
Total stockholders' deficit | (398,890) | (268,761) |
Total liabilities and stockholders' deficit | $ 1,214,700 | $ 1,265,096 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowances on accounts receivable | $ 686 | $ 500 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 88,292,821 | 87,678,812 |
Common stock, shares outstanding | 88,240,877 | 87,560,694 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | |||
Total revenue | $ 835,726 | $ 893,764 | $ 699,090 |
Operating expenses: | |||
Cost of service revenue (exclusive of items shown below) | 297,848 | 291,642 | 268,334 |
Cost of equipment revenue (exclusive of items shown below) | 134,728 | 222,244 | 58,554 |
Engineering, design and development | 108,610 | 120,090 | 133,286 |
Sales and marketing | 49,156 | 58,823 | 64,017 |
General and administrative | 89,843 | 94,269 | 93,671 |
Depreciation and amortization | 118,817 | 133,617 | 145,490 |
Total operating expenses | 799,002 | 920,685 | 763,352 |
Operating income (loss) | 36,724 | (26,921) | (64,262) |
Other (income) expense: | |||
Interest income | (4,210) | (4,292) | (2,964) |
Interest expense | 130,572 | 122,809 | 111,944 |
Loss on extinguishment of debt | 57,962 | 19,653 | |
Other (income) expense | (2,602) | 233 | 750 |
Total other expense | 181,722 | 138,403 | 109,730 |
Loss before income taxes | (144,998) | (165,324) | (173,992) |
Income tax provision (benefit) | 1,006 | (3,293) | (1,997) |
Net loss | $ (146,004) | $ (162,031) | $ (171,995) |
Net loss attributable to common stock per share—basic and diluted | $ (1.81) | $ (2.02) | $ (2.17) |
Weighted average number of shares—basic and diluted | 80,766 | 80,038 | 79,407 |
Service [Member] | |||
Revenue: | |||
Total revenue | $ 664,353 | $ 630,147 | $ 617,906 |
Product [Member] | |||
Revenue: | |||
Total revenue | $ 171,373 | $ 263,617 | $ 81,184 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net loss | $ (22,351) | $ (22,891) | $ (83,963) | $ (16,799) | $ (59,688) | $ (37,717) | $ (37,207) | $ (27,419) | $ (146,004) | $ (162,031) | $ (171,995) |
Currency translation adjustments, net of tax | 1,298 | (2,621) | 1,230 | ||||||||
Comprehensive loss | $ (144,706) | $ (164,652) | $ (170,765) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities: | |||
Net loss | $ (146,004) | $ (162,031) | $ (171,995) |
Adjustments to reconcile net loss to cash provided by (used in) operating activities: | |||
Depreciation and amortization | 118,817 | 133,617 | 145,490 |
Loss on asset disposals, abandonments and write-downs | 13,851 | 13,352 | 8,960 |
Gain on transition to airline-directed model | (21,551) | ||
Deferred income taxes | 178 | (3,821) | (2,281) |
Stock-based compensation expense | 16,511 | 16,912 | 19,821 |
Amortization of deferred financing costs | 5,260 | 4,280 | 3,743 |
Accretion and amortization of debt discount and premium | 14,711 | 18,255 | 18,286 |
Loss on extinguishment of debt | 57,962 | 19,653 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 29,898 | (17,064) | (43,798) |
Inventories | 29,092 | (50,762) | 4,723 |
Prepaid expenses and other current assets | (630) | (3,106) | 4,990 |
Contract assets | (21,863) | (30,485) | |
Accounts payable | (4,111) | (3,864) | 3,402 |
Accrued liabilities | (11,452) | 13,281 | 24,941 |
Deferred airborne lease incentives | (3,645) | (7,705) | 20,407 |
Deferred revenue | (4,971) | (1,021) | 21,477 |
Accrued interest | (29,646) | (955) | 7,213 |
Warranty reserves | 3,875 | 8,009 | (152) |
Other non-current assets and liabilities | (3,772) | (7,305) | (4,971) |
Net cash provided by (used in) operating activities | 64,061 | (82,311) | 60,256 |
Investing activities: | |||
Purchases of property and equipment | (100,123) | (108,632) | (252,375) |
Acquisition of intangible assets—capitalized software | (15,355) | (23,031) | (27,855) |
Purchases of short-term investments | (39,323) | (317,418) | |
Redemptions of short-term investments | 39,323 | 212,792 | 443,103 |
Other, net | 2,446 | (2,850) | |
Net cash provided by (used in) investing activities | (73,709) | 41,806 | (157,395) |
Financing activities: | |||
Proceeds from issuance of senior secured notes | 920,683 | 181,754 | |
Redemption of senior secured notes | (741,360) | ||
Proceeds from issuance of convertible notes | 237,750 | ||
Redemption of convertible notes | (159,502) | (200,438) | |
Payment of debt issuance costs | (22,976) | (8,054) | (3,630) |
Payments on financing leases | (713) | (2,340) | (2,961) |
Stock-based compensation activity | 325 | 396 | (227) |
Net cash provided by (used in) financing activities | (3,543) | 27,314 | 174,936 |
Effect of exchange rate changes on cash | (250) | 578 | 743 |
Increase (decrease) in cash, cash equivalents and restricted cash | (13,441) | (12,613) | 78,540 |
Cash, cash equivalents and restricted cash at beginning of period | 191,116 | 203,729 | 125,189 |
Cash, cash equivalents and restricted cash at end of period | 177,675 | 191,116 | 203,729 |
Cash, cash equivalents and restricted cash at end of period | 191,116 | 203,729 | 125,189 |
Less: current restricted cash | 560 | 1,535 | 500 |
Less: non-current restricted cash | 7,099 | 5,426 | 6,873 |
Cash and cash equivalents at end of period | 170,016 | 184,155 | 196,356 |
Supplemental Cash Flow Information: | |||
Cash paid for interest | 140,833 | 101,489 | 86,359 |
Cash paid for taxes | 490 | 401 | 103 |
Non-cash Investing and Financing Activities: | |||
Purchases of property and equipment in current liabilities | 11,176 | 18,640 | 53,682 |
Purchases of property and equipment paid by commercial airlines | $ 19,287 | $ 7,474 | $ 23,762 |
Consolidated Statements of Stoc
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, 2016 | $ (40,393) | $ 9 | $ 879,135 | $ (2,163) | $ (917,374) |
Beginning Balance, Shares at Dec. 31, 2016 | 86,295,870 | ||||
Net loss | (171,995) | (171,995) | |||
Currency translation adjustments, net of tax | 1,230 | 1,230 | |||
Stock-based compensation expense | 19,821 | 19,821 | |||
Issuance of common stock upon exercise of stock options | 449 | 449 | |||
Issuance of common stock upon exercise of stock options, Shares | 50,392 | ||||
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares | 344,038 | ||||
Tax withholding related to vesting of restricted stock units | (2,162) | (2,162) | |||
Issuance of common stock in connection with employee stock purchase plan | 1,486 | 1,486 | |||
Issuance of common stock in connection with employee stock purchase plan, Shares | 153,628 | ||||
Ending Balance at Dec. 31, 2017 | (191,564) | $ 9 | 898,729 | (933) | (1,089,369) |
Ending Balance, Shares at Dec. 31, 2017 | 86,843,928 | ||||
Net loss | (162,031) | (162,031) | |||
Currency translation adjustments, net of tax | (2,621) | (2,621) | |||
Stock-based compensation expense | 16,912 | 16,912 | |||
Issuance of common stock upon exercise of stock options | 21 | 21 | |||
Issuance of common stock upon exercise of stock options, Shares | 2,500 | ||||
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares | 393,361 | ||||
Tax withholding related to vesting of restricted stock units | (1,181) | (1,181) | |||
Issuance of common stock in connection with employee stock purchase plan | 1,556 | 1,556 | |||
Issuance of common stock in connection with employee stock purchase plan, Shares | 320,905 | ||||
Issuance of 2022 Convertible Notes (including issuance costs) | 47,421 | 47,421 | |||
Impact of the adoption of new accounting standards | 22,726 | 22,726 | |||
Ending Balance at Dec. 31, 2018 | (268,761) | $ 9 | 963,458 | (3,554) | (1,228,674) |
Ending Balance, Shares at Dec. 31, 2018 | 87,560,694 | ||||
Net loss | (146,004) | (146,004) | |||
Currency translation adjustments, net of tax | 1,298 | 1,298 | |||
Stock-based compensation expense | 16,511 | 16,511 | |||
Issuance of common stock upon exercise of stock options | 16 | 16 | |||
Issuance of common stock upon exercise of stock options, Shares | 3,338 | ||||
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares | 372,030 | ||||
Tax withholding related to vesting of restricted stock units | (865) | (865) | |||
Issuance of common stock in connection with employee stock purchase plan | 1,174 | 1,174 | |||
Issuance of common stock in connection with employee stock purchase plan, Shares | 304,815 | ||||
Repurchase of 2020 Convertible Notes | (795) | (795) | |||
Impact of the adoption of new accounting standards | (1,464) | (1,464) | |||
Ending Balance at Dec. 31, 2019 | $ (398,890) | $ 9 | $ 979,499 | $ (2,256) | $ (1,376,142) |
Ending Balance, Shares at Dec. 31, 2019 | 88,240,877 |
Background
Background | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Background | 1. Background Gogo (“we,” “us,” “our”) is the global leader in providing broadband connectivity solutions and wireless in-flight “CA-NA,” “CA-ROW,” CA-NA CA-ROW Wi-Fi-enabled in-flight Wi-Fi CA-NA CA-ROW CA-ROW in-flight in-flight in-flight in-flight |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation— The consolidated financial statements include our wholly owned subsidiaries. All intercompany transactions and account balances have been eliminated. Use of Estimates— Reclassifications — To conform with the current year presentation, $652 thousand of the current portion of capital lease liabilities has been combined with accrued liabilities in our consolidated balance sheet as of December 31, 2018. Significant Risks and Uncertainties— Cash, Cash Equivalents and Short-Term Investments — We consider cash and cash equivalents to be short-term, highly liquid investments that have the following characteristics: readily convertible to known amounts of cash, so near their maturities that there is insignificant risk of changes in value due to any changes in market interest rates, and having maturities of three months or less when purchased. We continually monitor positions with, and the credit quality of, the financial institutions with which we invest. The carrying amounts reported in the balance sheets for cash and cash equivalents approximate the fair market value of these assets. We consider short-term investments to be investments with maturities of twelve months or less (but greater than three months). Certain cash amounts are restricted as to use and are classified outside of cash and cash equivalents. See Note 7, “Long-term Debt and Other Liabilities,” for further details. Concentrations of Credit Risk — Financial instruments that potentially subject us to a concentration of credit risk consist principally of cash and cash equivalents and accounts receivable. All cash and cash equivalents are invested with creditworthy financial institutions. We perform ongoing credit evaluations and generally do not require collateral to support receivables. See Note 11, “Business Segments and Major Customers,” for further details. Income Tax— See Note 14, “Income Tax,” for further details. Inventories — Inventories consist primarily of telecommunications systems and parts, and are recorded at the lower of 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. Historically, inventories were solely related to the BA segment. Starting in 2018, the airborne equipment within our CA-NA CA-ROW CA-NA CA-ROW See Note 5, “Composition of Certain Balance Sheet Accounts,” for further details. Property and Equipment and Depreciation — Property and equipment, including leasehold improvements, are stated at historical cost, less accumulated depreciation. Network asset inventory and construction in progress, which include materials, transmission and related equipment, interest and other costs relating to the construction and development of our network, are not depreciated until they are put into service. Network equipment consists of switching equipment, antennas, base transceiver stations, site preparation costs, and other related equipment used in the operation of our network. Airborne equipment consists of routers, modems, radomes, antennas and related equipment, and accessories installed or to be installed on aircraft under the turnkey model. Depreciation expense totaled $99.2 million, $107.1 million and $120.6 million for the years ended December 31, 2019, 2018 and 2017, respectively. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives for owned assets, which are as follows: Office equipment, furniture, fixtures and other 3-7 Leasehold improvements 3-13 Airborne equipment 7 years Network equipment 5-25 See Note 5, “Composition of Certain Balance Sheet Accounts,” for further details. Improvements to leased property are depreciated over the shorter of the useful life of the improvement or the term of the related lease. We reassess the useful lives of leasehold improvements when there are changes to the terms of the underlying lease. Such reassessment has resulted in the useful life of specific assets being adjusted to a shorter period than originally estimated, resulting in an increase in annual depreciation expense for those assets. Repairs and maintenance costs are expensed as incurred. Due to advances in technology and changes in agreements with our airline partners, with respect to upgrading equipment, we periodically reassess the useful lives of our property and equipment. Such reassessment has resulted in the useful life of specific assets being adjusted to a shorter period than originally estimated, resulting in an increase in annual depreciation expense for those assets. Software Development Costs — non-network With respect to software sold as part of our equipment sales, we capitalize software development costs once technological feasibility has been established. Such capitalized software costs are amortized on a product-by-product Goodwill and Other Intangible Assets— Our quantitative impairment testing of the FCC Licenses uses the Greenfield method, an income-based approach. When performing this quantitative impairment testing, we estimate the fair value of the goodwill and FCC Licenses asset balances based primarily on projected future operating results, discounted cash flows, and other assumptions. Projected future operating results and cash flows used for valuation purposes may reflect considerable improvements relative to historical periods with respect to, among other things, revenue growth and operating margins. Although we believe our projected future operating results and cash flows and related estimates regarding fair values are based on reasonable assumptions, projected operating results and cash flows may not always be achieved. The failure to achieve one or more of our assumptions regarding projected operating results and cash flows in the near term or long term could reduce the estimated fair value below carrying value and result in the recognition of an impairment charge. The results of our annual goodwill and indefinite-lived intangible asset impairment assessments for 2019, 2018 and 2017 indicated no impairment. Intangible assets that are deemed to have a finite life are amortized over their useful lives as follows: Software 3-8 OEM and dealer relationships 10 years Service customer relationships 5-7 Other intangible assets 4-10 See Note 6, “Intangible Assets,” for further details. Long-Lived Assets— 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 this model, we refer to the airline as a “partner.” Under the turnkey model, the assets are recorded as airborne equipment on our consolidated balance sheets, as noted in Note 5, “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 consolidated balance sheets and are recognized as a reduction of the cost of service revenue on the straight-line basis over the term of the agreement with the airline. See Note 15, “Leases,” for further details. Transition Between Commercial Airline Agreements CA-NA CA-ROW, Transition to Turnkey Model As of January 1, 2019, one airline transitioned from the airline-directed model to the turnkey model. This transition did not have a material impact on our consolidated statements of operations. However, as a result of such transition, $46.8 million of inventory was reclassified to property and equipment, net, as of January 1, 2019. See “Inventories” above for information regarding the allocation of airborne equipment between Inventories and Property and equipment, net. In September 2019, an additional airline transitioned from the airline-directed model to the turnkey model. This transition did not have a material impact on our consolidated statements of operations and resulted in the reclassification of amounts primarily between other non-current right-of-use Transition to Airline-Directed Model 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 non-current non-current in thousands Increase 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 ) Consolidated statement of operations Equipment revenue 45,396 Cost of equipment revenue 23,845 Revenue Recognition— We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue as we satisfy the performance obligations. CA-NA CA-ROW CA-NA CA-ROW Airline-directed connectivity revenue As noted above, under the airline-directed model, the airline is our customer and we earn service revenue as connectivity services are consumed directly by the airline or indirectly by passengers. Turnkey connectivity revenue (passenger connectivity): Under the turnkey model, passenger connectivity revenue is generated by services paid for by passengers, airlines and third parties. Passenger paid revenue represents point-of-sale Third party and airline-paid revenue is generated by sales of connectivity services to airlines or third parties in sponsorship, wholesale, enterprise and roaming arrangements. Sponsorship revenue is recognized over the sponsorship term. Revenue from wholesale, enterprise and roaming arrangements is recognized as sessions are used by the passenger. Entertainment revenue: Entertainment revenue consists of entertainment services we provide to the airline for use by its passengers. Revenue is recognized as the services are provided to the airline. CAS revenue: CAS revenue includes, among other things, real-time credit card transaction processing, electronic flight bags and real-time weather information. Revenue is recognized as the service is provided. BA Service Revenue BA service revenue primarily consists of monthly subscription and usage fees paid by aircraft owners and operators for telecommunication, data, and in-flight Equipment Revenue Equipment revenue primarily consists of the sale of ATG and satellite connectivity equipment and the sale of entertainment equipment. CA-NA CA-ROW Equipment revenue also includes revenue generated by the installation of the connectivity or entertainment equipment on commercial aircraft, which is recognized when the installation is complete. Contract price and allocation considerations Our CA-NA CA-ROW The contractual consideration used for allocation purposes includes connectivity and entertainment services, which may be based on a fixed monthly fee per aircraft or a variable fee based on the volume of connectivity activity, or a combination of both. Examples of variable consideration within our contracts include megabyte overages and pay-per-use A significant change in one or more of these estimates could affect our estimated contract value, and we regularly review and update our estimates and recognize adjustments under the cumulative catch-up Research and Development Costs— Warranty— See Note 5, “Composition of Certain Balance Sheet Accounts,” for the details of the changes in our warranty reserve. Asset Retirement Obligations— See Note 5, “Composition of Certain Balance Sheet Accounts,” for the details of the changes in our asset retirement obligations. Fair Value of Financial Instruments— See Note 10, “Fair Value of Financial Assets and Liabilities,” for further information. Derivatives— Derivatives and Hedging See Note 7, “Long-Term Debt and Other Liabilities,” Note 9, “Common Stock and Preferred Stock,” and Note 10, “Fair Value of Financial Assets and Liabilities,” for further information. Convertible Notes – paid-in See Note 7, “Long-Term Debt and Other Liabilities,” for further information. Net Loss Per Share— See Note 3, “Net Loss Per Share,” for further information. Stock-Based Compensation Expense— See Note 12, “Stock-Based Compensation,” for further information. Leases — right-of-use right-of-use using For certain cell sites, the renewal options are deemed to be reasonably certain to be exercised. See Note 15, “Leases,” for further information. Advertising Costs— Debt Issuance Costs— See Note 7, “Long-Term Debt and Other Liabilities” for further information. Comprehensive Loss— Recently Issued Accounting Pronouncements Accounting standards adopted: On January 1, 2019, we adopted Accounting Standards Codification Topic 842, Leases We elected the practical expedients regarding use of hindsight to evaluate lease terms as well as maintaining lease classifications established under the prior lease accounting standard. Through this practical expedient, we did not reevaluate contracts to determine if they contained a lease. We did not elect the practical expedients regarding short-term leases or the separation of lease and non-lease Adoption of ASC 842 had a material impact on our consolidated balance sheet through recognition of right-of-use 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 consolidated balance sheet as of January 1, 2019 was as follows ( in thousands) Balance at Balances with December 31, Impact of Adoption of 2018 ASC 842 ASC 842 Assets Operating lease right-of-use $ — $ 72,188 $ 72,188 Liabilities Accrued liabilities 213,111 9,019 222,130 Non-current — 102,440 102,440 Other non-current 80,191 (36,178 ) 44,013 Equity Accumulated deficit (1,228,674 ) (3,093 ) (1,231,767 ) See Note 15, “Leases,” for additional information. On January 1, 2019, we adopted ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income 2018-02”), On January 1, 2019, we adopted ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting 2018-07”), Compensation – Stock Compensation On January 1, 2018, we adopted Accounting Standards Codification Topic 606, Revenue From Contracts With Customers Prior to the adoption of ASC 606, equipment revenue (and related cost) under some of our CA-NA CA-ROW In conjunction with the adoption of ASC 606, we also adopted Accounting Standard Codification Subtopic 340-40, Other Assets and Deferred Costs – Contracts with Customers 340-40”), 340-40, 340-40 The cumulative effect of the adoption of ASC 606 and ASC 340-40 in thousands) Balances Balance at with December 31, Impact of Adoption of 2017 ASC 606 ASC 606 Assets Inventories $ 45,543 $ 974 $ 46,517 Prepaid expenses and other current assets 20,310 603 20,913 Property and equipment, net 656,038 (4,405 ) 651,633 Other non-current 67,107 (30,006 ) 37,101 Liabilities Current deferred revenue 43,448 (7,182 ) 36,266 Other non-current 134,655 (48,378 ) 86,277 Equity Accumulated deficit (1,089,369 ) 22,726 (1,066,643 ) During the fourth quarter 2018, we identified an additional $0.9 million of property and equipment, net, that should have been included in the transition adjustments as of January 1, 2018. The schedule above reflects the additional adjustment. All other new pronouncements: In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2019-12 Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes 2019-12”), 2019-12 year-to-date 2019-12 In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 2016-13”), 2016-13 available-for-sale 2016-13. In August 2018, the FASB issued Accounting Standards Update No. 2018-15, Intangibles – Goodwill and Other – Internal-Use 350-40): 2018-15”), 350-40 In August 2018, the FASB issued Accounting Standards Update No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement 2018-13”). 2018-13 |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 3. 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 are considered participating securities requiring the two-class As a result of the net loss for each of the years ended December 31, 2019, 2018 and 2017 for the periods where such shares or securities were outstanding, 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 years ended December 31, 2019, 2018 and 2017; however, because of the undistributed losses, the shares associated with the Forward Transactions are excluded from the computation of basic earnings per share as undistributed losses are not allocated to these shares ( in thousands, except per share amounts For the Years Ended December 31, 2019 2018 2017 Net loss $ (146,004 ) $ (162,031 ) $ (171,995 ) Less: Participation rights of the Forward Transactions — — — Undistributed losses $ (146,004 ) $ (162,031 ) $ (171,995 ) Weighted-average common shares outstanding-basic and diluted 80,766 80,038 79,407 Net loss attributable to common stock per share-basic and diluted $ (1.81 ) $ (2.02 ) $ (2.17 ) |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 4. Revenue Recognition Remaining Performance Obligations As of December 31, 2019, the aggregate amount of the transaction price in our contracts allocated to the remaining unsatisfied performance obligations is approximately $529 million, most of which relates to our commercial aviation contracts. Approximately $98 million represents future equipment revenue that is expected to be recognized within the next one to three years. The remaining $431 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 Disaggregation of revenue The following table presents our revenue disaggregated by category (in thousands) For the Year Ended December 31, 2019 CA-NA CA-ROW BA Total Service revenue Connectivity $ 322,783 $ 84,419 $ 219,450 $ 626,652 Entertainment, CAS and other 31,583 3,646 2,472 37,701 Total service revenue $ 354,366 $ 88,065 $ 221,922 $ 664,353 Equipment revenue ATG $ 15,973 $ — $ 62,899 $ 78,872 Satellite 6,340 60,657 21,755 88,752 Other 1,340 — 2,409 3,749 Total equipment revenue $ 23,653 $ 60,657 $ 87,063 $ 171,373 Customer type Airline passenger and aircraft owner/operator $ 203,376 $ 27,581 $ 221,922 $ 452,879 Airline, OEM and aftermarket dealer 129,844 113,254 87,063 330,161 Third party 44,799 7,887 — 52,686 Total revenue $ 378,019 $ 148,722 $ 308,985 $ 835,726 For the Year Ended December 31, 2018 CA-NA CA-ROW BA Total Service revenue Connectivity $ 339,791 $ 63,955 $ 195,022 $ 598,768 Entertainment, CAS and other 27,577 2,447 1,355 31,379 Total service revenue $ 367,368 $ 66,402 $ 196,377 $ 630,147 Equipment revenue ATG (1) $ 53,410 $ — $ 72,159 $ 125,569 Satellite (1) 48,439 67,992 18,165 134,596 Other — — 3,452 3,452 Total equipment revenue $ 101,849 $ 67,992 $ 93,776 $ 263,617 Customer type Airline passenger and aircraft owner/operator $ 216,466 $ 21,738 $ 196,377 $ 434,581 Airline, OEM and aftermarket dealer (2) 196,106 105,026 93,776 394,908 Third party 56,645 7,630 — 64,275 Total revenue $ 469,217 $ 134,394 $ 290,153 $ 893,764 (1) ATG and satellite equipment revenue for the CA-NA (2) Airline, OEM and aftermarket dealer revenue includes all equipment revenue for our three segments, including the $45.4 million accounting impact of the transition of one of our airline partners to the airline-directed model. Contract balances Our current and non-current Our current and non-current Capitalized STC balances for our airline-directed contracts were $17.5 million and $16.5 million as of December 31, 2019 and December 31, 2018, respectively. The capitalized STC costs are amortized over the life of the associated airline-directed contracts as part of our engineering, design and development costs in our consolidated statements of operations. Total amortization expense was $2.7 million and $1.0 million, respectively, for the years ended December 31, 2019 and 2018. |
Composition of Certain Balance
Composition of Certain Balance Sheet Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Composition of Certain Balance Sheet Accounts | 5. Composition of Certain Balance Sheet Accounts Inventories as of December 31, 2019 and 2018 were as follows ( in thousands December 31, 2019 2018 Work-in-process $ 23,141 $ 30,340 Finished goods (1) 94,003 162,705 Total inventory $ 117,144 $ 193,045 (1) The change between December 31, 2019 and December 31, 2018 includes the $46.8 million accounting impact of one of our airline partner agreements transitioning to the turnkey model in January 2019 (see Note 2, “Summary of Significant Accounting Policies,” for additional information). Prepaid expenses and other current assets as of December 31, 2019 and 2018 were as follows ( in thousands December 31, 2019 2018 Contract assets $ 12,364 $ 10,423 Prepaid satellite services 11,299 7,755 Restricted cash 560 1,535 Other 12,082 14,982 Total prepaid expenses and other current assets $ 36,305 $ 34,695 Property and equipment as of December 31, 2019 and 2018 were as follows ( in thousands December 31, 2019 2018 Office equipment, furniture, fixtures and other $ 56,205 $ 52,320 Leasehold improvements 44,389 44,838 Airborne equipment (1) 737,593 642,151 Network equipment 229,451 205,463 1,067,638 944,772 Accumulated depreciation (507,320 ) (432,905 ) Property and equipment, net $ 560,318 $ 511,867 (1) The change between December 31, 2019 and December 31, 2018 includes the $46.8 million accounting impact of one of our airline partner agreements transitioning to the turnkey model in January 2019 (see Note 2, “Summary of Significant Accounting Policies,” for additional information). Other non-current in thousands December 31, 2019 2018 Contract assets $ 51,829 $ 49,517 Deferred STC costs 17,453 16,453 Restricted cash 7,099 5,426 Other 13,291 12,816 Total other non-current $ 89,672 $ 84,212 Accrued liabilities as of December 31, 2019 and 2018 consist of the following ( in thousands December 31, 2019 2018 Airline-related accrued liabilities, including revenue share $ 43,592 $ 53,527 Accrued interest 17,048 46,694 Employee compensation and benefits 29,954 19,463 Airborne equipment and installation costs 11,466 25,119 Accrued satellite network costs 13,843 19,557 Warranty reserve 13,165 12,291 Operating leases (1) 12,241 — Other 32,802 36,460 Total accrued liabilities $ 174,111 $ 213,111 (1) The change between December 31, 2019 and December 31, 2018 is due to the adoption of ASC 842. See Note 2, “Summary of Significant Accounting Policies,” for additional information. Other non-current in thousands December 31, 2019 2018 Deferred revenue $ 21,889 $ 21,482 Deferred rent (1) — 35,897 Asset retirement obligations 11,560 9,696 Deferred tax liabilities 2,340 2,162 Other 10,704 10,954 Total other non-current $ 46,493 $ 80,191 (1) The change between December 31, 2019 and December 31, 2018 is due to the adoption of ASC 842. See Note 2, “Summary of Significant Accounting Policies,” for additional information. Changes in our warranty reserve, which is included in accrued liabilities, for the years ended December 31, 2019 and 2018 consist of the following ( in thousands Warranty Reserve Balance—January 1, 2018 $ 2,424 Accruals for warranties issued 10,172 Settlements of warranties (305 ) Balance—December 31, 2018 12,291 Accruals for warranties issued 8,754 Settlements and adjustments to warranties (1) (7,880 ) Balance—December 31, 2019 $ 13,165 (1) Includes the impact of airline partner agreements transitioning to the turnkey model in 2019 (see Note 2, “Summary of Significant Accounting Policies,” for additional information). Changes in our non-current in thousands Asset Retirement Obligation Balance—January 1, 2018 $ 9,668 Liabilities incurred (1) (760 ) Liabilities settled (192 ) Accretion expense 1,035 Foreign exchange rate adjustments (55 ) Balance—December 31, 2018 9,696 Liabilities incurred 1,095 Liabilities settled (39 ) Accretion expense 848 Foreign exchange rate adjustments (40 ) Balance—December 31, 2019 $ 11,560 (1) Includes $0.8 million related to a change in estimate in the expected cash flows for our estimated liabilities. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 6. Intangible Assets Our intangible assets are comprised of indefinite- and finite-lived intangible assets. We own the rights to both 3MHz of ATG spectrum in the nationwide 800 MHz Commercial Air-Ground Air-Ground 10-year Our software relates to the development of internal use software which is used to run our network and support our service offerings. Software also includes software embedded in the equipment that we sell to our customers. Our goodwill balance, all of which related to our BA segment, was $0.6 million as of December 31, 2019 and 2018. Our intangible assets, other than goodwill, as of December 31, 2019 and 2018 were as follows ( in thousands, except for weighted average remaining useful life Weighted As of December 31, 2019 As of December 31, 2018 Avera ge Gross Accumulated Net Gross Accumulated Net Amortized intangible assets: Software 2.6 $ 177,190 $ (135,154 ) $ 42,036 $ 164,580 $ (116,873 ) $ 47,707 Other intangible assets 7.8 3,000 (1,440 ) 1,560 3,000 (1,396 ) 1,604 Service customer relationships 8,081 (8,081 ) — 8,081 (6,804 ) 1,277 OEM and dealer relationships 6,724 (6,724 ) — 6,724 (6,724 ) — Total amortized intangible assets 194,995 (151,399 ) 43,596 182,385 (131,797 ) 50,588 Unamortized intangible assets: FCC Licenses 32,283 — 32,283 32,283 — 32,283 Total intangible assets $ 227,278 $ (151,399 ) $ 75,879 $ 214,668 $ (131,797 ) $ 82,871 Amortization expense for the years ended December 31, 2019, 2018 and 2017 was $19.6 million, $26.5 million and $24.9 million, respectively. 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 2020 $ 18,092 2021 $ 13,820 2022 $ 9,165 2023 $ 1,411 2024 $ 343 Thereafter $ 765 Actual future amortization expense could differ from the estimated amount as the result of future investments and other factors. |
Long-Term Debt and Other Liabil
Long-Term Debt and Other Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Other Liabilities | 7. Long-Term Debt and Other Liabilities Long-term debt as of December 31, 2019 and 2018 in thousands December 31, December 31, 2019 2018 2024 Senior Secured Notes $ 921,137 $ — 2022 Senior Secured Notes — 702,670 2022 Convertible Notes 201,868 190,083 2020 Convertible Notes 2,498 149,195 Total debt 1,125,503 1,041,948 Less deferred financing costs (24,255 ) (17,055 ) Total long-term debt $ 1,101,248 $ 1,024,893 2024 Senior Secured Notes— senior secured notes due 2024 (the “Initial Notes”) under an indenture (the “Base Indenture”), dated as of April 25, 2019, among the Issuers, us, as guarantor, certain subsidiaries of GIH, as guarantors (the “Initial 2024 Subsidiary Guarantors” and, together with us, the “Initial 2024 Guarantors”), and U.S. Bank National Association, as trustee (the “Trustee”) and collateral agent (the “Collateral Agent”). On May 3, 2019, the Issuers, the Initial 2024 Guarantors and the Trustee entered into the first supplemental indenture (together with the Base Indenture and the second supplemental indenture, dated as of March 6, 2020, between the Issuers, the Initial 2024 Guarantors, Gogo Air International GmbH (an indirect subsidiary of GIH) (“Gogo International” and, together with the Initial 2024 Guarantors, the “2024 Guarantors”) and the Trustee to add Gogo International as a guarantor, the “2024 Indenture”) to increase the amount of indebtedness that may be incurred under Credit Facilities (as defined in the 2024 Indenture) by GIH or its subsidiaries that are 2024 Guarantors by $20 million in aggregate principal amount. On May 7, 2019, the Issuers issued an additional $20 million aggregate principal amount of 9.875% senior secured notes due 2024 (the “Additional Notes”). We refer to the Initial Notes and the Additional Notes collectively as the “2024 Senior Secured Notes”. The Initial Notes were issued at a price equal to 99.512% of their face value, and the Additional Notes were issued at a price equal to 100.5% of their face value, resulting in aggregate gross proceeds of $920.7 million. Additionally, we received approximately $0.1 million for interest that accrued from April 25, 2019 through May 7, 2019 with respect to the Additional Notes that was included in our interest payment on November 1, 2019. The 2024 Senior Secured Notes are guaranteed on a senior secured basis by Gogo Inc. and all of GIH’s existing and future restricted subsidiaries (other than Gogo Finance), subject to certain exceptions. The 2024 Senior Secured Notes and the related guarantees are secured by second-priority liens on the ABL Priority Collateral (as defined below) and by first-priority liens on the Cash Flow Priority Collateral (as defined below), including pledged equity interests of the Issuers and all of GIH’s existing and future restricted subsidiaries guaranteeing the 2024 Senior Secured Notes, except for certain excluded assets and subject to permitted liens. As of December 31, 2019, the outstanding principal amount of the 2024 Senior Secured Notes was $925 million, the unaccreted debt discount was $3.9 million and the net carrying amount was $921.1 million. We used a portion of the net proceeds from the issuance of the 2024 Senior Secured Notes to fund the redemption of all the outstanding 2022 Senior Secured Notes (as defined below) and to repurchase $159 million aggregate principal amount of the 2020 Convertible Notes (as defined below). We intend to use the remaining net proceeds for general corporate purposes. The 2024 Senior Secured Notes will mature on May 1, 2024. The 2024 Senior Secured Notes bear interest at a rate of 9.875% per year, payable semiannually in arrears on May 1 and November 1 of each year, beginning on November 1, 2019. We paid approximately $22.0 million of origination fees and financing costs related to the issuance of the 2024 Senior Secured Notes, which have been accounted for as deferred financing costs. The deferred financing costs on our consolidated balance sheet are being amortized over the contractual term of the 2024 Senior Secured Notes using the effective interest method. Total amortization expense was $2.3 million for the year ended December 31, 2019. Amortization expense is included in interest expense in the consolidated statements of operations. As of December 31, 2019, the balance of unamortized deferred financing costs related to the 2024 Senior Secured Notes was $19.7 million and is included as a reduction to long-term debt in our consolidated balance sheet. See Note 8, “Interest Costs,” for additional information. The 2024 Senior Secured Notes are the senior secured indebtedness of the Issuers and are: • effectively senior to (i) all of the Issuers’ existing and future senior unsecured indebtedness to the extent of the value of the collateral securing the 2024 Senior Secured Notes and (ii) the Issuers’ indebtedness secured on a junior priority basis by the same collateral securing the 2024 Senior Secured Notes to the extent of the value of such collateral, including the obligations under the ABL Credit Facility (as defined below) to the extent of the value of the Cash Flow Priority Collateral; • 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 2024 Senior Secured Notes and (ii) indebtedness secured on a junior priority basis by the same collateral securing the 2024 Senior Secured Notes, if any, in each case to the extent of any insufficiency in the collateral securing the 2024 Senior Secured Notes; • structurally senior to all of our existing and future indebtedness, including our 2022 Convertible Notes and 2020 Convertible Notes (each as defined below); • senior in right of payment to any and all of the Issuers’ future indebtedness that is subordinated in right of payment to the 2024 Senior Secured Notes; • structurally subordinated to all of the indebtedness and other liabilities of any non-2024 • effectively subordinated to all of our existing and future indebtedness secured on a senior priority basis by the same collateral securing the 2024 Senior Secured Notes to the extent of the value of such collateral, including the obligations under the ABL Credit Facility to the extent of the value of ABL Priority Collateral. Each guarantee is a senior secured obligation of such 2024 Guarantor and is: • effectively senior in right of payment to all existing and future (i) senior unsecured indebtedness to the extent of the value of the collateral securing such guarantee owned by such 2024 Guarantor and (ii) indebtedness secured on a junior priority basis by the same collateral securing the guarantee owned by such 2024 Guarantor to the extent of the value of the collateral securing the guarantee, including the obligations under the ABL Credit Facility to the extent of the value of the Cash Flow Priority Collateral; • effectively equal in right of payment with all existing and future unsubordinated indebtedness and indebtedness secured on a junior priority basis by the same collateral securing the guarantee owned by such 2024 Guarantor, if any, in each case to the extent of any insufficiency in the collateral securing such guarantee; • effectively subordinated to the obligations under the ABL Credit Facility of each 2024 Guarantor to the extent of the value of the ABL Priority Collateral owned by such 2024 Guarantor; • effectively senior in right of payment to all existing and future subordinated indebtedness, if any, of such 2024 Guarantor; and • structurally subordinated to all indebtedness and other liabilities of any non-2024 The security interests in certain collateral may be released without the consent of holders of the 2024 Senior Secured Notes if such collateral is disposed of in a transaction that complies with the 2024 Indenture and related security agreements, and if any grantor of such security interests is released from its obligations with respect to the 2024 Senior Secured Notes in accordance with the applicable provisions of the 2024 Indenture and related security agreements. Under certain circumstances, GIH and the 2024 Guarantors have the right to transfer certain intellectual property assets that on the Issue Date constitute collateral securing the 2024 Senior Secured Notes or the guarantees to a restricted subsidiary organized under the laws of Switzerland, resulting in the release of such collateral. In addition, the 2024 Indenture permits indebtedness incurred under the ABL Credit Facility to be secured on a first-priority basis by certain of the same collateral that secures the 2024 Senior Secured Notes. The Issuers may redeem the 2024 Senior Secured Notes, in whole or in part, at any time prior to May 1, 2021, at a redemption price equal to 100% of the principal amount of the 2024 Senior Secured Notes redeemed plus the make-whole premium set forth in the 2024 Indenture as of, and accrued and unpaid interest, if any, to (but not including) the applicable redemption date. On or after May 1, 2021, the 2024 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 May 1 of the following years: Year Redemption 2021 104.938 % 2022 102.469 % 2023 and thereafter 100.000 % In addition, at any time prior to May 1, 2021, the Issuers may redeem up to 40% of the aggregate principal amount of the 2024 Senior Secured Notes with the proceeds of certain equity offerings at a redemption price of 109.875% of the principal amount redeemed, plus accrued and unpaid interest, if any, to (but not including) the date of redemption; , In addition, if GIH receives cash proceeds in connection with the entry into or continuation of a strategic relationship, or equity from us in connection with the sale of stock to a complimentary business (in each case, a “strategic investment”) at any time prior to May 1, 2020, the Issuers may redeem up to $150 million of the aggregate principal amount of the 2024 Senior Secured Notes at 103% of the principal amount of the 2024 Senior Secured Notes to be redeemed, plus accrued and unpaid interest, if any, to (but not including) the redemption date with the proceeds from such strategic investment. The 2024 Indenture contains covenants that, among other things, limit the ability of the Issuers and the 2024 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 GIH’s 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. Most of these covenants will cease to apply if, and for as long as, the 2024 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 accompanied by a downgrade in the rating of the 2024 Senior Secured Notes prior to May 1, 2024, GIH is required to make an offer to repurchase for cash all of the 2024 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 2024 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 2024 Senior Secured Notes issued under the 2024 Indenture to be due and payable immediately. As of December 31, 2019, no event of default had occurred. ABL Credit Facility— sub-facilities. Borrowing availability under the ABL Credit Facility is determined by a monthly borrowing base collateral calculation that is based on specified percentages of the value of eligible accounts receivable (including eligible unbilled accounts receivable) and eligible credit card receivables, less certain reserves and subject to certain other adjustments as set forth in the ABL Credit Agreement. Availability is reduced by issuance of letters of credit as well as any borrowings. As of December 31, 2019, no revolving loans were outstanding under the ABL Credit Facility. The final maturity of the ABL Credit Facility is August 26, 2022, unless the aggregate outstanding principal amount of our 2022 Convertible Notes (as defined below) has not, on or prior to December 15, 2021, been repaid in full or refinanced with a new maturity date no earlier than February 26, 2023, in which case the final maturity date shall instead be December 16, 2021. Loans outstanding under the ABL Credit Facility bear interest at a floating rate measured by reference to, at the Borrowers’ option, either (i) an adjusted London inter-bank offered rate plus an applicable margin ranging from 1.50% to 2.00% per annum depending on a fixed charge coverage ratio, or (ii) an alternate base rate plus an applicable margin ranging from 0.50% to 1.00% per annum depending on a fixed charge coverage ratio. Unused commitments under the ABL Credit Facility are subject to a per annum fee ranging from 0.25% to 0.375% depending on the average quarterly usage of the revolving commitments. The obligations under the ABL Credit Agreement are guaranteed by Gogo Inc. and all of its existing and future subsidiaries, subject to certain exceptions (collectively, the “ABL Guarantors”), and such obligations and the obligations of the ABL Guarantors are secured on a (i) senior basis by a perfected security interest in all present and after-acquired inventory, accounts receivable, deposit accounts, securities accounts, and any cash or other assets in such accounts and other related assets owned by each ABL Guarantor and the proceeds of the foregoing, subject to certain exceptions (the “ABL Priority Collateral”) and (ii) junior basis by a perfected security interest in substantially all other tangible and intangible assets owned by each ABL Guarantor (the “Cash Flow Priority Collateral”). The ABL Credit Agreement contains customary representations and warranties and customary affirmative and negative covenants. The negative covenants include restrictions on, among other things: the incurrence of additional indebtedness; the incurrence of additional liens; dividends or other distributions on equity; the purchase, redemption or retirement of capital stock; the payment or redemption of certain indebtedness; loans, guarantees and other investments; entering into other agreements that create restrictions on the ability to pay dividends or make other distributions on equity, make or repay certain loans, create or incur certain liens or guarantee certain indebtedness; asset sales; sale-leaseback transactions; swap agreements; consolidations or mergers; amendment of certain material documents; certain regulatory matters; Canadian pension plans; and affiliate transactions. The negative covenants are subject to customary exceptions and also permit dividends and other distributions on equity, investments, permitted acquisitions and payments or redemptions of indebtedness upon satisfaction of the “payment conditions.” The payment conditions are deemed satisfied upon Specified Availability (as defined in the ABL Credit Agreement) on the date of the designated action and Specified Availability for the prior 30-day The ABL Credit Agreement includes a minimum fixed charge coverage ratio test of no less than 1.00 to 1.00, which is tested only when Specified Availability is less than the greater of (A) $4.5 million and (B) 15.0% of the then effective commitments under the ABL Credit Facility, and continuing until the first day immediately succeeding the last day of the calendar month which includes the thirtieth (30th) consecutive day on which Specified Availability is in excess of such threshold so long as no default has occurred and is continuing and certain other conditions are met. As of December 31, 2019, Specified Availability had not fallen below the amount specified and therefore the minimum fixed charge coverage ratio test was not applicable. Full availability under the ABL Credit Facility may be limited by our ability to comply with the fixed charge coverage ratio in future periods. The ABL Credit Agreement provides for events of default, which, if any of them occurs, would permit or require the principal, premium, if any, and interest on all of the then outstanding obligations under the ABL Credit Facility to be due and payable immediately and the commitments under the ABL Credit Facility to be terminated. On August 26, 2019, the Borrowers and the ABL Guarantors entered into an ABL collateral agreement (the “ABL Collateral Agreement”), in favor of the Administrative Agent, whereby the Borrowers and the ABL Guarantors granted a security interest in substantially all tangible and intangible assets of each Borrower and each ABL Guarantor, to secure all obligations of the Borrowers and the ABL Guarantors under the ABL Credit Agreement, and U.S. Bank National Association, as cash flow collateral representative, and JPMorgan Chase Bank, N.A., as ABL agent, entered into a crossing lien intercreditor agreement (the “Intercreditor Agreement”) to govern the relative priority of liens on the collateral that secures the ABL Credit Agreement and the 2024 Senior Secured Notes and certain other rights, priorities and interests. 2022 Senior Secured Notes— On June 14, 2016, 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 “2022 Subsidiary Guarantors” and, together with us, the “2022 Guarantors”), and U.S. Bank National Association, as Trustee and as 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 2022 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.” On April 15, 2019, the Issuers elected to call for redemption in full all $690 million aggregate principal amount outstanding of the 2022 Senior Secured Notes in accordance with the terms of the Indenture. The redemption was conditioned, among other things, upon the incurrence of indebtedness in connection with the issuance of the 2024 Senior Secured Notes or from one or more other sources, in an amount satisfactory to the Issuers which condition was satisfied by the issuance of the 2024 Senior Secured Notes. On April 25, 2019, the Issuers irrevocably deposited, or caused to be irrevocably deposited, with the Trustee funds solely for the benefit of the holders of the 2022 Senior Secured Notes, cash in an amount sufficient to pay principal, premium, if any, and accrued interest on the 2022 Senior Secured Notes to, but not including, the date of redemption and all other sums payable under the Indenture. The Trustee executed and delivered an acknowledgement of satisfaction, discharge and release, dated as of April 25, 2019, among other documents, with respect to the satisfaction and discharge of the 2022 Senior Secured Notes. On May 15, 2019, the 2022 Senior Secured Notes were fully redeemed in accordance with the terms of the Indenture, and the amount deposited with the Trustee on April 25, 2019 was paid to the holders of the 2022 Senior Secured Notes. The make-whole premium paid in connection with the redemption was $51.4 million and we wrote off the remaining unamortized deferred financing costs of $9.1 million and the remaining debt premium of $11.7 million relating to the 2022 Senior Secured Notes in connection with the redemption thereof, which together are included in the loss on extinguishment of debt in our consolidated statements of operations for the year ended December 31, 2019. We paid approximately $15.9 million of aggregate origination fees and financing costs related to the issuance of the 2022 Senior Secured Notes which were accounted for as deferred financing costs. Additionally, we paid approximately $1.4 million of consent fees in connection with the Supplemental Indenture, which partially offset the net carrying value of the 2022 Senior Secured Notes. Total amortization expense was $0.9 million, $2.6 million and $2.3 million, respectively, for the years ended December 31, 2019, 2018 and 2017. Amortization expense is included in interest expense in the consolidated statements of operations. As noted above, the remaining unamortized deferred financing costs were written off as of May 15, 2019. 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, beginning 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 non-cash As of December 31, 2019 and 2018, the outstanding principal on the 2022 Convertible Notes was $237.8 million, the unaccreted debt discount was $35.9 million and $47.7 million, respectively, and the net carrying amount of the liability component was $201.9 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 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 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 year ended December 31, 2019. 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 2022 Convertible 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. We paid interest on the 2020 Convertible Notes semi-annually in arrears on March 1 and September 1 of each year. Interest payments began on September 1, 2015. In November 2018, in connection with the issuance of the 2022 Convertible Notes, we repurchased $199.9 million outstanding principal amount of the 2020 Convertible Notes at par value. As a result of the repurchase, the carrying value of the 2020 Convertible Notes was adjusted by $17.9 million to face value and included in the loss on extinguishment of debt in our consolidated statements of operations for the year ended December 31, 2018. 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 expired on May 15, 2019, resulting in the purchase of $159.0 million of outstanding 2020 Convertible Notes. As a result of the Tender Offer, the carrying value of the 2020 Convertible Notes was adjusted by $8.5 million to face value and unamortized deferred financing costs of $0.6 million were expensed. These two items are included in the loss on extinguishment of debt in our consolidated statements of operations for the year ended December 31, 2019. During September 2019, we purchased an additional $0.5 million of outstanding 2020 Convertible Notes. The 2020 Convertible Notes matured on March 1, 2020. 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 non-cash As of December 31, 2019 and 2018, the outstanding principal on the 2020 Convertible Notes was $2.5 million and $162.0 million, respectively, the unamortized debt discount was zero and $12.8 million, respectively, and the net carrying amount of the liability component was $2.5 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 The 2020 Convertible Notes had an initial conversion rate of 41.9274 common shares per $1,000 principal amount of 2020 Convertible Notes, which was equivalent to an initial conversion price of approximately $23.85 per share of our common stock. Upon conversion and prior to maturity, we expected 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 expected to deliver shares of our common stock. We had the option to elect to deliver cash in lieu of all or a portion of such shares. The shares of common stock subject to conversion were excluded from diluted earnings per share calculations under the if-converted 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 maturity date for the 2020 Convertible Notes, subject to the ability of each Forward Counterparty to elect to settle all or a portion of its Forward Transactions early. On December 11, 2019, we entered into an amendment to one of the Forward Transactions (the “Amended and Restated Forward Transaction”) to extend the expected settlement date with respect to approximately 2.1 million shares of common stock held by one of the Forward Counterparties, JPMorgan Chase Bank, National Association (the “2022 Forward Counterparty”), to correspond with the May 15, 2022 maturity date for the 2022 Convertible Notes. In the future, we may request that the 2022 Forward Counterparty modify the settlement terms of the Amended and Restated Forward Transaction to provide that, in lieu of the delivery of the applicable number of shares of our common stock to us to settle a portion of the Amended and Restated Forward Transaction in accordance with its terms, the 2022 Forward Counterparty would pay to us the net proceeds from the sale by the 2022 Forward Counterparty (or its affiliate) of a corresponding number of shares of our common stock in a registered offering (which may include block sales, sales on the NASDAQ Global Select Market, sales in the over-the-counter mutually Between 5- 6 , were The remaining under the Amended and Restated are Restricted Cash |
Interest Costs
Interest Costs | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Interest Costs | 8. Interest Costs The following is a summary of our interest costs for the years ended December 31, 2019, 2018 and 2017 (in thousands) For the Years Ended December 31, 2019 2018 2017 Interest costs charged to expense $ 110,601 $ 100,274 $ 89,915 Amortization of deferred financing costs 5,260 4,280 3,743 Accretion of debt discount 15,729 21,105 19,520 Amortization of debt premium (1,018 ) (2,850 ) (1,234 ) Interest expense 130,572 122,809 111,944 Interest costs capitalized to property and equipment 11 32 26 Interest costs capitalized to software 608 364 1,075 Total interest costs $ 131,191 $ 123,205 $ 113,045 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. |
Common Stock and Preferred Stoc
Common Stock and Preferred Stock | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Common Stock and Preferred Stock | 9. Common Stock and Preferred Stock Common Stock— Our Third Amended and Restated Certificate of Incorporation authorizes a total of 500,000,000 shares of common stock with a par value of $0.0001 per share. Our Third Amended and Restated Certificate of Incorporation authorizes 100,000,000 shares of new preferred stock with a par value of $0.01 per share. No shares of this new preferred stock have been issued. The preferred stock may be issued, from time to time, in one or more series as authorized by the Board of Directors, which has the authority to designate the terms of any series of preferred stock issued, including, without limitation, the number of shares to be included in such series of preferred stock, any dividend, redemption, conversion rights or voting powers and the designations, preferences and relative participating, optional or other special rights. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | 10. Fair Value of Financial Assets and Liabilities A three-tier fair value hierarchy has been established which prioritizes the inputs used in measuring fair value. These tiers include: • Level 1— • Level 2— • Level 3— Long-Term Debt: Our financial assets and liabilities that are disclosed but not measured at fair value include the 2024 Senior Secured Notes, 2022 Convertible Notes, 2020 Convertible Notes, and, while outstanding, the 2022 Senior Secured Notes, which are reflected on the 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 2024 Senior Secured Notes, the 2022 Convertible Notes, the 2020 Convertible Notes, and, while outstanding, the 2022 Senior Secured Notes by calculating the upfront cash payment a market participant would require to assume these obligations. The upfront cash payments used in the calculations of fair value on our December 31, 2019 consolidated balance sheet, excluding any issuance costs, are the amount that a market participant would be willing to lend at December 31, 2019 to an entity with a credit rating similar to ours and that would allow such an entity to achieve sufficient cash inflows to cover the scheduled cash outflows under the 2024 Senior Secured Notes, the 2022 Convertible Notes and the 2020 Convertible Notes. The calculated fair value of the 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 December 31, 2019 and 2018 was as follows (in thousands) December 31, 2019 December 31, 2018 Fair (1) Carrying Fair (1) Carrying 2024 Senior Secured Notes $ 982,000 $ 921,137 (2) $ — $ — 2022 Senior Secured Notes — — 737,000 702,670 (3) 2022 Convertible Notes 297,000 201,868 (4) 216,000 190,083 (4) 2020 Convertible Notes 2,498 2,498 150,000 149,195 (5) (1) Fair value amounts are rounded to the nearest million, except for the 2020 Convertible Notes as of December 31, 2019. (2) Carrying value of the 2024 Senior Secured Notes reflects the unaccreted debt discount of $3.9 million as of December 31, 2019. See Note 7, “Long-Term Debt and Other Liabilities,” for further information. (3) Carrying value of the 2022 Senior Secured Notes reflects the unamortized debt premium and consent fees of $12.7 million as of December 31, 2018. See Note 7, “Long-Term Debt and Other Liabilities,” for further information. (4) Carrying value of the 2022 Convertible Notes reflects the unaccreted debt discount of $35.9 million and $47.7 million, respectively, as of December 31, 2019 and 2018. See Note 7, “Long-Term Debt and Other Liabilities,” for further information. (5) Carrying value of the 2020 Convertible Notes reflects the unaccreted debt discount of $12.8 million as of December 31, 2018. See Note 7, “Long-Term Debt and Other Liabilities,” for further information. We have held-to-maturity |
Business Segments and Major Cus
Business Segments and Major Customers | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segments and Major Customers | 11. Business Segments and Major Customers During the fourth quarter of 2019, we revised the presentation of our reportable segments’ operating results in order to exclude the impact of certain corporate costs from the calculation of total reportable segment profit (loss). All amounts from prior years have been reclassified to conform to the current year’s presentation. We operate our business through three operating segments: Commercial Aviation North America, or “CA-NA,” “CA-ROW” CA-NA CA-NA in-flight CA-ROW CA-ROW in-flight CA-ROW BA Segment in-flight in-flight in-flight The accounting policies of the operating segments are the same as those described in Note 2, “Summary of Significant Accounting Policies.” Intercompany transactions between segments are excluded as they are not included in management’s performance review of the segments. Our foreign revenue accounted for less than 15% of our consolidated revenue for the years ended December 31, 2019, 2018 and 2017. We do not segregate assets between segments for internal reporting. Therefore, asset-related information has not been presented. We do not disclose assets outside of the United States as they totaled less than 15% of our consolidated assets as of both December 31, 2019 and December 31, 2018. 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 reportable segment profit (loss), which is calculated internally as net income (loss) attributable to common stock before unallocated corporate costs, interest expense, interest income, income taxes, depreciation and amortization, and certain non-cash 280-10, Segment Reporting Information regarding our reportable segments is as follows ( in thousands For the Year Ended December 31, 2019 CA-NA CA-ROW BA Total Service revenue $ 354,366 $ 88,065 $ 221,922 $ 664,353 Equipment revenue 23,653 60,657 87,063 171,373 Total revenue $ 378,019 $ 148,722 $ 308,985 $ 835,726 Reportable segment profit (loss) $ 97,920 $ (62,314 ) $ 143,966 $ 179,572 For the Year Ended December 31, 2018 CA-NA CA-ROW BA Total Service revenue $ 367,368 $ 66,402 $ 196,377 $ 630,147 Equipment revenue (1) 101,849 67,992 93,776 263,617 Total revenue $ 469,217 $ 134,394 $ 290,153 $ 893,764 Reportable segment profit (loss) $ 62,286 $ (90,779 ) $ 140,198 $ 111,705 For the Year Ended December 31, 2017 CA-NA CA-ROW BA Total Service revenue $ 393,484 $ 53,542 $ 170,880 $ 617,906 Equipment revenue 7,129 4,323 69,732 81,184 Total revenue $ 400,613 $ 57,865 $ 240,612 $ 699,090 Reportable segment profit (loss) $ 100,754 $ (102,482 ) $ 99,513 $ 97,785 (1) CA-NA A reconciliation of total reportable segment profit (loss) to the relevant consolidated amounts is as follows ( in thousands For the Years Ended December 31, 2019 2018 2017 CA-NA $ 97,920 $ 62,286 $ 100,754 CA-ROW (62,314 ) (90,779 ) (102,482 ) BA segment profit 143,966 140,198 99,513 Total reportable segment profit 179,572 111,705 97,785 Unallocated corporate costs (1) (33,365 ) (40,275 ) (38,552 ) Interest income 4,210 4,292 2,964 Interest expense (130,572 ) (122,809 ) (111,944 ) Depreciation and amortization (118,817 ) (133,617 ) (145,490 ) Transition to airline-directed model — 21,551 — Amortization of deferred airborne lease incentives 28,551 31,650 41,816 Amortization of STC costs (2,706 ) (1,023 ) — Stock-based compensation expense (16,511 ) (16,912 ) (19,821 ) Loss on extinguishment of debt (57,962 ) (19,653 ) — Other income (expense) 2,602 (233 ) (750 ) Loss before income taxes $ (144,998 ) $ (165,324 ) $ (173,992 ) (1) Represents costs that are not directly attributable to the reportable segments, comprised primarily of the costs of corporate functions, including executive, legal, finance and human resources, but excluding stock-based compensation expense for those functions of $6.1 million, $5.9 million and $7.3 Major Customers and Airline Partnerships— Revenue earned from American Airlines accounted for less than 10% and approximately 22% of consolidated revenue, respectively, for the years ended December 31, 2019 and 2018. Revenue earned from American Airlines for the year ended December 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 2, “Summary of Significant Accounting Policies,” for additional information. Revenue earned from passengers on aircraft operated by American Airlines, which was under the turnkey model during the year ended December 31, 2017, accounted for approximately 21% of consolidated revenue. American Airlines accounted for less than 10% of consolidated accounts receivable as of December 31, 2019 and approximately 11% of consolidated accounts receivable as of December 31, 2018. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 12. Stock-Based Compensation As of December 31, 2019, we maintained three stock-based incentive , ” as well as an ESPP, as defined and discussed below. non-qualified Under the Stock Plans, 27,906,570 shares of common stock were reserved for issuance. As of December 31, 2019, 5,097,835 shares remained available for grant under our Stock Plans. The contractual life of granted options is 10 years. All options that are unvested as of the date on which a recipient’s employment terminates, as well as vested options that are not exercised within a prescribed period following termination, are forfeited and become available for future grants. Options granted to date include options that (a) vest 20% upon grant with the remainder vesting in equal annual increments over a four-year period, (b) vest over a four-year period with 25% vesting on the anniversary of each grant date, (c) vest 25% after one year from grant date and in equal monthly increments for the following three years or (d) vest on the date of grant for options granted to non-employee non-market non-market non-market The following is a summary of our stock-based compensation expense included in the consolidated statements of operations for the years December 31, 2019, 2018 and 2017 (in thousands) 2019 2018 2017 Cost of service revenue $ 1,615 $ 1,659 $ 1,748 Cost of equipment revenue 275 210 185 Engineering, design and development 2,999 3,347 3,656 Sales and marketing 3,377 4,267 4,751 General and administrative 8,245 7,429 9,481 Total stock-based compensation expense $ 16,511 $ 16,912 $ 19,821 A summary of stock option activity for the year ended December 31, 2019 is as follows: Number of Weighted Weighted Aggregate (in Options outstanding—January 1, 2019 10,714,158 $ 12.81 6.25 $ — Granted 1,525,880 $ 4.69 Exercised (3,338 ) $ 5.01 Forfeited (555,605 ) $ 9.45 Expired (606,591 ) $ 15.78 Options outstanding—December 31, 2019 11,074,504 $ 11.70 5.25 $ 3,050 Options exercisable—December 31, 2019 7,393,469 $ 13.34 3.82 $ 780 As of December 31, 2019, total unrecognized compensation costs related to unvested stock options were approximately $9 million which is expected to be recognized over a weighted average period of approximately 3.8 years. The total grant date fair value of stock options vested in 2019, 2018 and 2017 was approximately $8 million, $9 million and $10 million, respectively. We estimate the fair value of stock options using the Black-Scholes option-pricing model. Weighted average assumptions used and weighted average grant date fair value of stock options granted for the years ended December 31, 2019, 2018, and 2017 were as follows: 2019 2018 2017 Approximate risk-free interest rate 2.3 % 2.7 % 2.3 % Average expected life (years) 6.02 6.03 6.14 Dividend yield N/A N/A N/A Volatility 60.5 % 49.2 % 45.3 % Weighted average grant date fair value of common stock underlying options granted $ 4.71 $ 8.97 $ 11.97 Weighted average grant date fair value of stock options granted $ 2.69 $ 4.42 $ 5.59 The risk-free interest rate assumptions were based on the U.S. Treasury yield curve for the term that mirrored the expected term in effect at the time of grant. The expected life of our stock options was determined based upon a simplified assumption that the stock options will be exercised evenly from vesting to expiration, as we do not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected life. The dividend yield was based on expected dividends at the time of grant. We have not been a public company long enough to calculate volatility based exclusively on our own common stock. Therefore, the expected volatility is calculated as of each grant date based on a weighting of our own common stock and reported data for a peer group of publicly traded companies for which historical information is available. Beginning in 2020, we will calculate volatility based exclusively on our own common stock. The following table summarizes the activities for our unvested RSUs and DSUs for the year ended December 31, 2019: Number of Weighted Unvested—January 1, 2019 3,223,980 $ 6.51 Granted 2,219,248 $ 4.73 Vested (692,693 ) $ 9.20 Forfeited/canceled (567,303 ) $ 5.94 Unvested — December 31, 2019 4,183,232 $ 5.18 As of December 31, 2019, there was approximately $13 million of unrecognized compensation cost related to unvested employee RSUs. This amount is expected to be recognized over a weighted-average period of approximately 1.9 years. The total grant date fair value of RSUs and DSUs vested in 2019 was approximately $7 million. The following table summarizes the activity for our restricted stock for the year ended December 31, 2019: Number of Weighted Unvested—January 1, 2019 118,053 $ 12.38 Granted — $ — Vested (66,174 ) $ 11.95 Forfeited/canceled (7,675 ) $ 2.99 Unvested—December 31, 2019 44,204 $ 11.63 As of December 31, 2019, there was approximately $0.3 million of unrecognized compensation cost related to unvested employee restricted stock. This amount is expected to be recognized over a weighted-average period of approximately 1.1 years. ESPP - pre-specified As of December 31, 2019, 178,349 shares remained available for purchase under the ESPP. |
Employee Retirement and Postret
Employee Retirement and Postretirement Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Employee Retirement and Postretirement Benefits | 13. Employee Retirement and Postretirement Benefits 401(k) Plan tax-deferred |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 14. Income Tax For financial reporting purposes, loss before income taxes included the following components for the years ended December 31, 2019, 2018, and 2017 ( in thousands For the Years Ended December 31, 2019 2018 2017 United States $ (131,220 ) $ (128,361 ) $ (138,881 ) Foreign (13,778 ) (36,963 ) (35,111 ) Loss before income taxes $ (144,998 ) $ (165,324 ) $ (173,992 ) Significant components of the (benefit) provision for income taxes for the years ended December 31, 2019, 2018, and 2017 are as follows ( in thousands For the Years Ended December 31, 2019 2018 2017 Current: Federal $ — $ — $ — State 385 467 235 Foreign 444 61 49 829 528 284 Deferred: Federal 91 (3,908 ) (2,590 ) State 86 87 309 177 (3,821 ) (2,281 ) Total $ 1,006 $ (3,293 ) $ (1,997 ) The (benefit) provision for income taxes differs from income taxes computed at the federal statutory tax rates for the years ended December 31, 2019, 2018, and 2017 as a result of the following items: For the Years Ended December 31, 2019 2018 2017 Federal statutory rate 21.0 % 21.0 % 35.0 % Effect of: Impact of change in tax rate (0.1 ) 0.1 (47.0 ) Change in valuation allowance (22.7 ) (24.8 ) 12.5 State income taxes-net 4.2 4.0 2.4 Other (3.1 ) 1.7 (1.8 ) Effective tax rate (0.7 )% 2.0 % 1.1 % Components of the net deferred income tax asset as of December 31, 2019 and 2018 are as follows ( in thousands December 31, December 31, 2019 2018 Deferred income tax assets: Compensation accruals $ 5,847 $ 3,407 Stock options 18,192 15,552 Inventory 1,266 1,102 Warranty reserves 913 1,014 Deferred rent — 9,603 Deferred revenue 43,256 37,501 Federal net operating loss (NOL) 141,803 143,433 State NOL 24,744 24,623 Interest carryforward 48,980 22,029 UN I 2,539 2,311 Finite-lived intangible assets 6,394 7,576 Lease liability 22,355 — Other 9,243 11,576 Total deferred income tax assets 325,532 279,727 Deferred income tax liabilities: Fixed assets (59,584 ) (53,944 ) Indefinite-lived intangible assets (7,074 ) (6,528 ) Convertible Notes discount (8,706 ) (14,612 ) Right-of-use (13,553 ) — Other (3,768 ) (2,272 ) Total deferred income tax liabilities (92,685 ) (77,356 ) Total deferred income tax 232,847 202,371 Valuation allowance (235,187 ) (204,533 ) Net deferred income tax liability $ (2,340 ) $ (2,162 ) We assess the realizability of the deferred tax assets by considering whether it is more likely than not that some portion or all of the deferred tax assets would not be realized through the generation of future taxable income. We generated net losses in fiscal years 2019, 2018, and 2017, which means we are in a domestic three-year cumulative loss position. As a result of this and other assessments in fiscal year 2019, we concluded that a full valuation allowance is required for all deferred tax assets and liabilities except for deferred tax liabilities associated with indefinite-lived intangible assets. As of December 31, 2019, the federal net operating loss (“NOL”) carryforward amount was approximately $579 million and the state NOL carryforward amount was approximately $430 million. The federal NOLs begin to expire in 2031. The state NOLs expire in various tax years and began to expire in 2016. Utilization of our NOL, interest carryforward and tax credit carryforwards may be subject to substantial annual limitations due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such annual limitations could result in the expiration of the NOL and tax credit carryforwards before their utilization. The interest carryforward arises from U.S. Tax Reform and limits the interest expense deduction to 30% of EBITDA for tax years 2018 to 2021 and 30% of EBIT for 2022 and subsequent years. The interest carryforward will not expire as it may be carried forward indefinitely. The events that may cause ownership changes include, but are not limited to, a cumulative stock ownership change of greater than 50% over a three-year period. We are subject to taxation in the United States, Canada, Switzerland, Japan, Mexico, Brazil, Singapore, the United Kingdom, Hong Kong, Australia, China, France, Germany, the Netherlands and India. With few exceptions, as of December 31, 2019, we are no longer subject to U.S. federal, state, local or foreign examinations by tax authorities for years before 2016. As a result of the passage of H.R. 1, originally known as the Tax Cuts and Jobs Act (“U.S. Tax Reform”) in December 2017, the tax effected amounts of the deferred tax assets and liabilities decreased. A large portion of this change in the deferred tax balances resulted in an offsetting change to the deferred tax asset valuation allowance and did not affect tax expense. For the deferred tax liabilities that are not offset by changes to the valuation allowance, our net deferred tax liability was reduced by approximately $3 million. As of December 31, 2019, 2018 and 2017, we did not have any unrecognized tax benefits. We record penalties and interest relating to uncertain tax positions in the income tax provision line item in the consolidated statement of operations. No penalties or interest related to uncertain tax positions were recorded for the years ended December 31, 2019, 2018 or 2017. As of December 31, 2019 and 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. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 15. Leases The following is a summary of our lease expense included in the consolidated statement of operations (in thousands) For the Year Ended December 31, 2019 Operating lease cost $ 19,437 Financing lease cost Amortization of leased assets 666 Interest on lease liabilities 57 Total lease cost $ 20,160 Other information regarding our leases is as follows (in thousands, except lease terms and discount rates) For the Year Ended December 31, 2019 Supplemental cash flow information Cash paid for amounts included in measurement of lease liabilities: Operating cash flows used in operating leases $ 23,202 Operating cash flows used in financing leases 57 Financing cash flows used in financing leases 713 Non-cash Operating leases obtained 15,588 Modifications to operating leases (20,027 ) Finance leases obtained 1,326 Weighted average remaining lease term Operating leases 8 years Financing leases 3 years Weighted average discount rate Operating leases 9.44 % Financing leases 8.28 % Annual future minimum lease payments as of December 31, 2019 (in thousands) Operating Financing Years ending December 31, Leases Leases 2020 $ 19,930 $ 761 2021 18,760 555 2022 17,145 473 2023 13,246 — 2024 9,571 — Thereafter 53,913 — Total future minimum lease payments 132,565 1,789 Less: Amount representing interest (42,516 ) (157 ) Present value of net minimum lease payments $ 90,049 $ 1,632 Reported as of December 31, 2019 Accrued liabilities $ 12,241 $ 620 Non-current 77,808 — Other non-current — 1,012 Total lease liabilities $ 90,049 $ 1,632 As of December 31, 2019, we had one operating lease that had not yet commenced with a present value of net minimum lease payments of $6 million. Such lease will commence in 2020. Arrangements with Commercial Airlines — Pursuant to contractual agreements with our airline partners, we place our equipment on commercial aircraft operated by the airlines for the purpose of delivering our service to passengers on the aircraft. There are currently two types of commercial airline arrangements: turnkey and airline-directed. See Note 2, “Summary of Significant Accounting Policies,” for additional information on airline-directed arrangements. We recognized $28.6 million, $31.7 million, and $41.8 million, respectively, for the years ended December 31, 2019, 2018 and 2017, as a reduction to cost of service revenue in our consolidated statements of operations from the amortization of deferred airborne lease incentives. As of December 31, 2019, deferred airborne lease incentives of $26.6 million and $135.4 million, respectively, are included in current and non-current non-current Under the turnkey model, the revenue share paid to our airline partners represents operating lease payments. They are deemed to be contingent rental payments, as the payments due to each airline are based on a percentage of our CA-NA CA-ROW |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies Contractual Commitments— We have agreements with various vendors under which we have remaining commitments to purchase satellite-based systems, certifications and development services. Such commitments will become payable as we receive the equipment or certifications, or as development services are provided. Damages and Penalties— Indemnifications and Guarantees— In the ordinary course of business we may occasionally enter into agreements pursuant to which we may be obligated to pay for the failure of 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— April 20, 2018, Linksmart Wireless Technology, LLC filed suit against us and eight of our airline partners in the U.S. District Court for the Central District of California alleging that our redirection server and login portal infringe a patent owned by the plaintiff. The suits seek an unspecified amount of damages. We are required under our contracts with these airlines to indemnify them for defense costs and any liabilities resulting from the suit. The Court has stayed the suits against our airline customers pending resolution of the suit against Gogo. Linksmart has also filed suit against other defendants asserting the same patent. Following the filing by one of those defendants of a petition to commence an inter partes inter partes Securities Litigation— 10b-5 Derivative Litigation— September 25, 2018 and September 26, 2018, two purported stockholders of the Company filed substantively identical derivative lawsuits in the United States District Court for the Northern District of Illinois, Eastern Division, styled Nanduri v. Gogo Inc. and Hutsenpiller v. Gogo Inc., respectively. Both lawsuits were purportedly brought derivatively on behalf of us and name us as a nominal defendant and name as defendants each member of the Company’s Board of Directors, its former Chief Executive Officer and Chief Financial Officer and its current Chief Executive Officer, Chief Financial Officer and President, Commercial Aviation. The complaints assert claims under Section 14(a) of the Securities Exchange Act of 1934, breach of fiduciary duty, unjust enrichment, and waste of corporate assets, and allege misrepresentations or omissions by us purporting to relate to our 2Ku antenna’s reliability and installation and remediation costs, as well as allegedly excessive bonuses, stock options, and other compensation paid to current Officers and Directors and excessive severance paid to former Officers. The two lawsuits were consolidated and are stayed until a final disposition of the motion to dismiss in the class action suit. We believe that the claims are without merit and intend to defend them vigorously if the litigation resumes. The plaintiffs seek to recover, on our behalf, an unspecified amount of damages from the individual defendants. We have filed a claim with the issuer of our Directors’ and Officers’ insurance policy with respect to these suits. No amounts have been accrued for any potential costs under this matter, as we cannot reasonably predict the outcome of the litigation or any potential costs. |
Quarterly Data (Unaudited)
Quarterly Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data (Unaudited) | 17. Quarterly Data (Unaudited) Summarized quarterly financial information is as follows for each quarterly period for the years ended December 31, 2019 and 2018 ( in thousands, except per share amounts For the Three Months Ended Mar 31, June 30, Sep 30, Dec 31, Total revenue $ 199,549 $ 213,685 $ 201,182 $ 221,310 Operating income 11,448 9,666 7,218 8,392 Net loss (16,799 ) (83,963 ) (22,891 ) (22,351 ) Net loss attributable to common stock (16,799 ) (83,963 ) (22,891 ) (22,351 ) Net loss attributable to common stock per share—basic and diluted $ (0.21 ) $ (1.04 ) $ (0.28 ) $ (0.28 ) Weighted average number of shares—basic and diluted 80,446 80,702 80,908 80,997 For the Three Months Ended Mar 31, June 30, Sep 30, Dec 31, Total revenue $ 231,825 $ 227,458 $ 217,257 $ 217,224 Operating loss (2,171 ) (7,449 ) (7,610 ) (9,691 ) Net loss (27,419 ) (37,207 ) (37,717 ) (59,688 ) Net loss attributable to common stock (27,419 ) (37,207 ) (37,717 ) (59,688 ) Net loss attributable to common stock per share—basic and diluted $ (0.34 ) $ (0.47 ) $ (0.47 ) $ (0.74 ) Weighted average number of shares—basic and diluted 79,696 79,783 80,196 80,303 |
Condensed Financial Information
Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Financial Information of Registrant | 18. Condensed Financial Information of Registrant The following presents the condensed financial information of our parent company on a standalone basis. Gogo Inc. Condensed Balance Sheets (in thousands) December 31, December 31, 2019 2018 Assets: Cash and cash equivalents $ 118,323 $ 161,113 Short-term investments — 39,323 Prepaid expenses and other current assets 164 738 Other non-current 2,599 101 Total assets $ 121,086 $ 201,275 Liabilities and stockholders’ deficit: Total current liabilities $ 2,200 $ 3,998 Long-term debt 199,849 332,211 Other non-current 2,340 2,162 Investments and payables with subsidiaries 315,587 131,665 Total liabilities 519,976 470,036 Total stockholders’ deficit (398,890 ) (268,761 ) Total liabilities and stockholders’ deficit $ 121,086 $ 201,275 Gogo Inc. Condensed Statements of Operations and Comprehensive Loss (in thousands) For the Years Ended December 31, 2019 2018 2017 Interest income $ (3,083 ) $ (3,123 ) $ (1,681 ) Interest expense 33,807 36,984 34,577 Loss on extinguishment of debt 9,163 19,653 — Other 3 — — Total other (income) expense 39,890 53,514 32,896 Income (loss) before income taxes (39,890 ) (53,514 ) (32,896 ) Income tax provision (benefit) 563 (3,354 ) (2,045 ) Equity losses of subsidiaries 105,551 111,871 141,144 Net loss $ (146,004 ) $ (162,031 ) $ (171,995 ) Comprehensive loss $ (146,004 ) $ (162,031 ) $ (171,995 ) Gogo Inc. Condensed Statements of Cash Flows (in thousands) For the Years Ended December 31, 2019 2018 2017 Net loss $ (146,004 ) $ (162,031 ) $ (171,995 ) Accretion of debt discount 15,276 21,105 19,520 Amortization of deferred financing costs 1,906 1,648 1,484 Loss on extinguishment of debt 9,163 19,653 — Subsidiary equity losses 105,551 111,871 141,144 Deferred income taxes 178 (3,821 ) (2,281 ) Other operating activities (1,224 ) (674 ) (609 ) Net cash used in operating activities (15,154 ) (12,249 ) (12,737 ) Acquisition of short-term investments — (39,323 ) (192,893 ) Redemption of short-term investments 39,323 192,893 213,905 Investments and advances with subsidiaries 94,716 (19,595 ) 601 Net cash provided by (used in) investing activities 134,039 133,975 21,613 Financing activities: Proceeds from issuance of convertible notes — 237,750 — Repurchase of convertible notes (159,502 ) (200,438 ) — Payment of debt issuance costs — (8,054 ) — Other financing activities 325 396 (227 ) Net cash provided by (used in) financing activities (159,177 ) 29,654 (227 ) Increase (decrease) in cash, cash equivalents and restricted cash (40,292 ) 151,380 8,649 Cash, cash equivalents and restricted cash at beginning of period 161,214 9,834 1,185 Cash, cash equivalents and restricted cash at end of period $ 120,922 $ 161,214 $ 9,834 Cash, cash equivalents and restricted cash at end of period $ 120,922 $ 161,214 $ 9,834 Less: current restricted cash — — — Less: non-current 2,599 101 100 Cash and cash equivalents at end of period $ 118,323 $ 161,113 $ 9,734 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 19. Subsequent Events In December 2019, a novel strain of coronavirus, COVID-19, was identified in Wuhan, China which has resulted in global travel restrictions and the suspension of certain commercial flights by some of our airline partners, which has had, and is expected to continue to have, an adverse impact on our CA business. In recent weeks, we have seen significantly reduced demand on aircraft operated in the Asia Pacific region as compared to demand levels in January 2020 before COVID-19 affected travel. More recently, demand for both business and leisure airline travel on a global basis has declined significantly due to COVID-19, and airlines are responding by cancelling additional flights, including domestic U.S. flights. All of our U.S. airline partners have announced international and domestic capacity reductions, and in the week in which this report is being filed, we are seeing for the first time reduced demand on domestic U.S. flights as a result of COVID-19. In addition, on March 11, 2020 the President of the United States announced a 30-day suspension of travel from 26 European countries to the U.S. and similar or other U.S. or foreign governmental actions could further materially impact business and leisure airline travel. We expect COVID-19 to continue to have a significant negative impact on CA revenue and are unable to predict how long that impact will continue. To date, we have not seen any impact of COVID-19 on our BA business. The extent of the impact of COVID-19 on the CA and BA businesses and our financial and operational performance will depend on future developments, including the duration, spread and severity of the outbreak, the duration and geographic scope of related travel advisories and restrictions and the extent of the impact of COVID-19 on overall demand for commercial and business aviation travel, all of which are highly uncertain and cannot be predicted. If our airline partners continue to experience significantly reduced demand for passenger traffic for an extended period, our 2020 consolidated results of operations and our liquidity and financial condition may be materially adversely affected. The extent to which the outbreak affects our earnings and liquidity will depend in part on our ability to implement various measures intended to reduce expenses and/or conserve cash. Earnings in CA-ROW may be particularly affected if reduced demand for travel continues, as we provide service in that segment solely via satellite-based systems and satellite capacity and certain other costs are largely fixed. Further, travel and other restrictions adopted in response to COVID-19 may impact our ability to complete installations on certain aircraft and successfully operate our services on aircraft that operate in regions affected by the coronavirus, particularly where travel is restricted. Additionally, our suppliers or other third parties we rely upon to install and maintain our services may experience delays or shortages, which could have an adverse effect on our business prospects and results of operations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation— The consolidated financial statements include our wholly owned subsidiaries. All intercompany transactions and account balances have been eliminated. |
Use of Estimates | Use of Estimates— |
Reclassifications | Reclassifications — To conform with the current year presentation, $652 thousand of the current portion of capital lease liabilities has been combined with accrued liabilities in our consolidated balance sheet as of December 31, 2018. |
Significant Risks and Uncertainties | Significant Risks and Uncertainties— |
Cash, Cash Equivalents and Short-Term Investments | Cash, Cash Equivalents and Short-Term Investments — We consider cash and cash equivalents to be short-term, highly liquid investments that have the following characteristics: readily convertible to known amounts of cash, so near their maturities that there is insignificant risk of changes in value due to any changes in market interest rates, and having maturities of three months or less when purchased. We continually monitor positions with, and the credit quality of, the financial institutions with which we invest. The carrying amounts reported in the balance sheets for cash and cash equivalents approximate the fair market value of these assets. We consider short-term investments to be investments with maturities of twelve months or less (but greater than three months). Certain cash amounts are restricted as to use and are classified outside of cash and cash equivalents. See Note 7, “Long-term Debt and Other Liabilities,” for further details. |
Concentrations of Credit Risk | Concentrations of Credit Risk — Financial instruments that potentially subject us to a concentration of credit risk consist principally of cash and cash equivalents and accounts receivable. All cash and cash equivalents are invested with creditworthy financial institutions. We perform ongoing credit evaluations and generally do not require collateral to support receivables. See Note 11, “Business Segments and Major Customers,” for further details. |
Income Tax | Income Tax— See Note 14, “Income Tax,” for further details. |
Inventories | Inventories — Inventories consist primarily of telecommunications systems and parts, and are recorded at the lower of 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. Historically, inventories were solely related to the BA segment. Starting in 2018, the airborne equipment within our CA-NA CA-ROW CA-NA CA-ROW See Note 5, “Composition of Certain Balance Sheet Accounts,” for further details. |
Property and Equipment and Depreciation | Property and Equipment and Depreciation — Property and equipment, including leasehold improvements, are stated at historical cost, less accumulated depreciation. Network asset inventory and construction in progress, which include materials, transmission and related equipment, interest and other costs relating to the construction and development of our network, are not depreciated until they are put into service. Network equipment consists of switching equipment, antennas, base transceiver stations, site preparation costs, and other related equipment used in the operation of our network. Airborne equipment consists of routers, modems, radomes, antennas and related equipment, and accessories installed or to be installed on aircraft under the turnkey model. Depreciation expense totaled $99.2 million, $107.1 million and $120.6 million for the years ended December 31, 2019, 2018 and 2017, respectively. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives for owned assets, which are as follows: Office equipment, furniture, fixtures and other 3-7 Leasehold improvements 3-13 Airborne equipment 7 years Network equipment 5-25 See Note 5, “Composition of Certain Balance Sheet Accounts,” for further details. Improvements to leased property are depreciated over the shorter of the useful life of the improvement or the term of the related lease. We reassess the useful lives of leasehold improvements when there are changes to the terms of the underlying lease. Such reassessment has resulted in the useful life of specific assets being adjusted to a shorter period than originally estimated, resulting in an increase in annual depreciation expense for those assets. Repairs and maintenance costs are expensed as incurred. Due to advances in technology and changes in agreements with our airline partners, with respect to upgrading equipment, we periodically reassess the useful lives of our property and equipment. Such reassessment has resulted in the useful life of specific assets being adjusted to a shorter period than originally estimated, resulting in an increase in annual depreciation expense for those assets. |
Software Development Costs | Software Development Costs — non-network With respect to software sold as part of our equipment sales, we capitalize software development costs once technological feasibility has been established. Such capitalized software costs are amortized on a product-by-product |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets— Our quantitative impairment testing of the FCC Licenses uses the Greenfield method, an income-based approach. When performing this quantitative impairment testing, we estimate the fair value of the goodwill and FCC Licenses asset balances based primarily on projected future operating results, discounted cash flows, and other assumptions. Projected future operating results and cash flows used for valuation purposes may reflect considerable improvements relative to historical periods with respect to, among other things, revenue growth and operating margins. Although we believe our projected future operating results and cash flows and related estimates regarding fair values are based on reasonable assumptions, projected operating results and cash flows may not always be achieved. The failure to achieve one or more of our assumptions regarding projected operating results and cash flows in the near term or long term could reduce the estimated fair value below carrying value and result in the recognition of an impairment charge. The results of our annual goodwill and indefinite-lived intangible asset impairment assessments for 2019, 2018 and 2017 indicated no impairment. Intangible assets that are deemed to have a finite life are amortized over their useful lives as follows: Software 3-8 OEM and dealer relationships 10 years Service customer relationships 5-7 Other intangible assets 4-10 See Note 6, “Intangible Assets,” for further details. |
Long-Lived Assets | Long-Lived Assets— |
Arrangements with Commercial Airlines | 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 this model, we refer to the airline as a “partner.” Under the turnkey model, the assets are recorded as airborne equipment on our consolidated balance sheets, as noted in Note 5, “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 consolidated balance sheets and are recognized as a reduction of the cost of service revenue on the straight-line basis over the term of the agreement with the airline. See Note 15, “Leases,” for further details. |
Transition Between Commercial Airline Agreements | Transition Between Commercial Airline Agreements CA-NA CA-ROW, Transition to Turnkey Model As of January 1, 2019, one airline transitioned from the airline-directed model to the turnkey model. This transition did not have a material impact on our consolidated statements of operations. However, as a result of such transition, $46.8 million of inventory was reclassified to property and equipment, net, as of January 1, 2019. See “Inventories” above for information regarding the allocation of airborne equipment between Inventories and Property and equipment, net. In September 2019, an additional airline transitioned from the airline-directed model to the turnkey model. This transition did not have a material impact on our consolidated statements of operations and resulted in the reclassification of amounts primarily between other non-current right-of-use Transition to Airline-Directed Model 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 non-current non-current in thousands Increase 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 ) Consolidated statement of operations Equipment revenue 45,396 Cost of equipment revenue 23,845 |
Revenue Recognition | Revenue Recognition— We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue as we satisfy the performance obligations. CA-NA CA-ROW CA-NA CA-ROW Airline-directed connectivity revenue As noted above, under the airline-directed model, the airline is our customer and we earn service revenue as connectivity services are consumed directly by the airline or indirectly by passengers. Turnkey connectivity revenue (passenger connectivity): Under the turnkey model, passenger connectivity revenue is generated by services paid for by passengers, airlines and third parties. Passenger paid revenue represents point-of-sale Third party and airline-paid revenue is generated by sales of connectivity services to airlines or third parties in sponsorship, wholesale, enterprise and roaming arrangements. Sponsorship revenue is recognized over the sponsorship term. Revenue from wholesale, enterprise and roaming arrangements is recognized as sessions are used by the passenger. Entertainment revenue: Entertainment revenue consists of entertainment services we provide to the airline for use by its passengers. Revenue is recognized as the services are provided to the airline. CAS revenue: CAS revenue includes, among other things, real-time credit card transaction processing, electronic flight bags and real-time weather information. Revenue is recognized as the service is provided. BA Service Revenue BA service revenue primarily consists of monthly subscription and usage fees paid by aircraft owners and operators for telecommunication, data, and in-flight Equipment Revenue Equipment revenue primarily consists of the sale of ATG and satellite connectivity equipment and the sale of entertainment equipment. CA-NA CA-ROW Equipment revenue also includes revenue generated by the installation of the connectivity or entertainment equipment on commercial aircraft, which is recognized when the installation is complete. Contract price and allocation considerations Our CA-NA CA-ROW The contractual consideration used for allocation purposes includes connectivity and entertainment services, which may be based on a fixed monthly fee per aircraft or a variable fee based on the volume of connectivity activity, or a combination of both. Examples of variable consideration within our contracts include megabyte overages and pay-per-use A significant change in one or more of these estimates could affect our estimated contract value, and we regularly review and update our estimates and recognize adjustments under the cumulative catch-up |
Research and Development Costs | Research and Development Costs— |
Warranty | Warranty— See Note 5, “Composition of Certain Balance Sheet Accounts,” for the details of the changes in our warranty reserve. |
Asset Retirement Obligations | Asset Retirement Obligations— See Note 5, “Composition of Certain Balance Sheet Accounts,” for the details of the changes in our asset retirement obligations. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments— See Note 10, “Fair Value of Financial Assets and Liabilities,” for further information. |
Derivatives | Derivatives— Derivatives and Hedging See Note 7, “Long-Term Debt and Other Liabilities,” Note 9, “Common Stock and Preferred Stock,” and Note 10, “Fair Value of Financial Assets and Liabilities,” for further information. |
Convertible Notes | Convertible Notes – paid-in See Note 7, “Long-Term Debt and Other Liabilities,” for further information. |
Net Loss Per Share | Net Loss Per Share— See Note 3, “Net Loss Per Share,” for further information. |
Stock-Based Compensation Expense | Stock-Based Compensation Expense— See Note 12, “Stock-Based Compensation,” for further information. |
Leases | Leases — right-of-use right-of-use using For certain cell sites, the renewal options are deemed to be reasonably certain to be exercised. See Note 15, “Leases,” for further information. |
Advertising Costs | Advertising Costs— |
Debt Issuance Costs | Debt Issuance Costs— See Note 7, “Long-Term Debt and Other Liabilities” for further information. |
Comprehensive Loss | Comprehensive Loss— |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Accounting standards adopted: On January 1, 2019, we adopted Accounting Standards Codification Topic 842, Leases We elected the practical expedients regarding use of hindsight to evaluate lease terms as well as maintaining lease classifications established under the prior lease accounting standard. Through this practical expedient, we did not reevaluate contracts to determine if they contained a lease. We did not elect the practical expedients regarding short-term leases or the separation of lease and non-lease Adoption of ASC 842 had a material impact on our consolidated balance sheet through recognition of right-of-use 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 consolidated balance sheet as of January 1, 2019 was as follows ( in thousands) Balance at Balances with December 31, Impact of Adoption of 2018 ASC 842 ASC 842 Assets Operating lease right-of-use $ — $ 72,188 $ 72,188 Liabilities Accrued liabilities 213,111 9,019 222,130 Non-current — 102,440 102,440 Other non-current 80,191 (36,178 ) 44,013 Equity Accumulated deficit (1,228,674 ) (3,093 ) (1,231,767 ) See Note 15, “Leases,” for additional information. On January 1, 2019, we adopted ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income 2018-02”), On January 1, 2019, we adopted ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting 2018-07”), Compensation – Stock Compensation On January 1, 2018, we adopted Accounting Standards Codification Topic 606, Revenue From Contracts With Customers Prior to the adoption of ASC 606, equipment revenue (and related cost) under some of our CA-NA CA-ROW In conjunction with the adoption of ASC 606, we also adopted Accounting Standard Codification Subtopic 340-40, Other Assets and Deferred Costs – Contracts with Customers 340-40”), 340-40, 340-40 The cumulative effect of the adoption of ASC 606 and ASC 340-40 in thousands) Balances Balance at with December 31, Impact of Adoption of 2017 ASC 606 ASC 606 Assets Inventories $ 45,543 $ 974 $ 46,517 Prepaid expenses and other current assets 20,310 603 20,913 Property and equipment, net 656,038 (4,405 ) 651,633 Other non-current 67,107 (30,006 ) 37,101 Liabilities Current deferred revenue 43,448 (7,182 ) 36,266 Other non-current 134,655 (48,378 ) 86,277 Equity Accumulated deficit (1,089,369 ) 22,726 (1,066,643 ) During the fourth quarter 2018, we identified an additional $0.9 million of property and equipment, net, that should have been included in the transition adjustments as of January 1, 2018. The schedule above reflects the additional adjustment. All other new pronouncements: In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2019-12 Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes 2019-12”), 2019-12 year-to-date 2019-12 In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 2016-13”), 2016-13 available-for-sale 2016-13. In August 2018, the FASB issued Accounting Standards Update No. 2018-15, Intangibles – Goodwill and Other – Internal-Use 350-40): 2018-15”), 350-40 In August 2018, the FASB issued Accounting Standards Update No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement 2018-13”). 2018-13 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Depreciation of Property and Equipment Estimated Useful Lives | Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives for owned assets, which are as follows: Office equipment, furniture, fixtures and other 3-7 Leasehold improvements 3-13 Airborne equipment 7 years Network equipment 5-25 |
Finite Lived Intangible Asset Useful Life | Intangible assets that are deemed to have a finite life are amortized over their useful lives as follows: Software 3-8 OEM and dealer relationships 10 years Service customer relationships 5-7 Other intangible assets 4-10 |
Summary of Financial Effects Due to Transition of Agreements | the total financial statement effect on our consolidated balance sheet and consolidated statement of operations was as follows ( in thousands Increase 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 ) Consolidated statement of operations Equipment revenue 45,396 Cost of equipment revenue 23,845 |
Summary of Adoption Impact of ASC 842 on Unaudited Condensed Consolidated Balance Sheet | Balance at Balances with December 31, Impact of Adoption of 2018 ASC 842 ASC 842 Assets Operating lease right-of-use $ — $ 72,188 $ 72,188 Liabilities Accrued liabilities 213,111 9,019 222,130 Non-current — 102,440 102,440 Other non-current 80,191 (36,178 ) 44,013 Equity Accumulated deficit (1,228,674 ) (3,093 ) (1,231,767 ) |
Summary of Cumulative Effect of Adoption on Consolidated Balance Sheets | The cumulative effect of the adoption of ASC 606 and ASC 340-40 in thousands) Balances Balance at with December 31, Impact of Adoption of 2017 ASC 606 ASC 606 Assets Inventories $ 45,543 $ 974 $ 46,517 Prepaid expenses and other current assets 20,310 603 20,913 Property and equipment, net 656,038 (4,405 ) 651,633 Other non-current 67,107 (30,006 ) 37,101 Liabilities Current deferred revenue 43,448 (7,182 ) 36,266 Other non-current 134,655 (48,378 ) 86,277 Equity Accumulated deficit (1,089,369 ) 22,726 (1,066,643 ) |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 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 years ended December 31, 2019, 2018 and 2017; however, because of the undistributed losses, the shares associated with the Forward Transactions are excluded from the computation of basic earnings per share as undistributed losses are not allocated to these shares ( in thousands, except per share amounts For the Years Ended December 31, 2019 2018 2017 Net loss $ (146,004 ) $ (162,031 ) $ (171,995 ) Less: Participation rights of the Forward Transactions — — — Undistributed losses $ (146,004 ) $ (162,031 ) $ (171,995 ) Weighted-average common shares outstanding-basic and diluted 80,766 80,038 79,407 Net loss attributable to common stock per share-basic and diluted $ (1.81 ) $ (2.02 ) $ (2.17 ) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Revenue Disaggregated by Category | The following table presents our revenue disaggregated by category (in thousands) For the Year Ended December 31, 2019 CA-NA CA-ROW BA Total Service revenue Connectivity $ 322,783 $ 84,419 $ 219,450 $ 626,652 Entertainment, CAS and other 31,583 3,646 2,472 37,701 Total service revenue $ 354,366 $ 88,065 $ 221,922 $ 664,353 Equipment revenue ATG $ 15,973 $ — $ 62,899 $ 78,872 Satellite 6,340 60,657 21,755 88,752 Other 1,340 — 2,409 3,749 Total equipment revenue $ 23,653 $ 60,657 $ 87,063 $ 171,373 Customer type Airline passenger and aircraft owner/operator $ 203,376 $ 27,581 $ 221,922 $ 452,879 Airline, OEM and aftermarket dealer 129,844 113,254 87,063 330,161 Third party 44,799 7,887 — 52,686 Total revenue $ 378,019 $ 148,722 $ 308,985 $ 835,726 For the Year Ended December 31, 2018 CA-NA CA-ROW BA Total Service revenue Connectivity $ 339,791 $ 63,955 $ 195,022 $ 598,768 Entertainment, CAS and other 27,577 2,447 1,355 31,379 Total service revenue $ 367,368 $ 66,402 $ 196,377 $ 630,147 Equipment revenue ATG (1) $ 53,410 $ — $ 72,159 $ 125,569 Satellite (1) 48,439 67,992 18,165 134,596 Other — — 3,452 3,452 Total equipment revenue $ 101,849 $ 67,992 $ 93,776 $ 263,617 Customer type Airline passenger and aircraft owner/operator $ 216,466 $ 21,738 $ 196,377 $ 434,581 Airline, OEM and aftermarket dealer (2) 196,106 105,026 93,776 394,908 Third party 56,645 7,630 — 64,275 Total revenue $ 469,217 $ 134,394 $ 290,153 $ 893,764 (1) ATG and satellite equipment revenue for the CA-NA (2) Airline, OEM and aftermarket dealer revenue includes all equipment revenue for our three segments, including the $45.4 million accounting impact of the transition of one of our airline partners to the airline-directed model. |
Composition of Certain Balanc_2
Composition of Certain Balance Sheet Accounts (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Inventories | Inventories as of December 31, 2019 and 2018 were as follows ( in thousands December 31, 2019 2018 Work-in-process $ 23,141 $ 30,340 Finished goods (1) 94,003 162,705 Total inventory $ 117,144 $ 193,045 (1) The change between December 31, 2019 and December 31, 2018 includes the $46.8 million accounting impact of one of our airline partner agreements transitioning to the turnkey model in January 2019 (see Note 2, “Summary of Significant Accounting Policies,” for additional information). |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets as of December 31, 2019 and 2018 were as follows ( in thousands December 31, 2019 2018 Contract assets $ 12,364 $ 10,423 Prepaid satellite services 11,299 7,755 Restricted cash 560 1,535 Other 12,082 14,982 Total prepaid expenses and other current assets $ 36,305 $ 34,695 |
Property and Equipment | Property and equipment as of December 31, 2019 and 2018 were as follows ( in thousands December 31, 2019 2018 Office equipment, furniture, fixtures and other $ 56,205 $ 52,320 Leasehold improvements 44,389 44,838 Airborne equipment (1) 737,593 642,151 Network equipment 229,451 205,463 1,067,638 944,772 Accumulated depreciation (507,320 ) (432,905 ) Property and equipment, net $ 560,318 $ 511,867 (1) The change between December 31, 2019 and December 31, 2018 includes the $46.8 million accounting impact of one of our airline partner agreements transitioning to the turnkey model in January 2019 (see Note 2, “Summary of Significant Accounting Policies,” for additional information). |
Schedule of Other Non-Current Assets | Other non-current in thousands December 31, 2019 2018 Contract assets $ 51,829 $ 49,517 Deferred STC costs 17,453 16,453 Restricted cash 7,099 5,426 Other 13,291 12,816 Total other non-current $ 89,672 $ 84,212 |
Accrued Liabilities | Accrued liabilities as of December 31, 2019 and 2018 consist of the following ( in thousands December 31, 2019 2018 Airline-related accrued liabilities, including revenue share $ 43,592 $ 53,527 Accrued interest 17,048 46,694 Employee compensation and benefits 29,954 19,463 Airborne equipment and installation costs 11,466 25,119 Accrued satellite network costs 13,843 19,557 Warranty reserve 13,165 12,291 Operating leases (1) 12,241 — Other 32,802 36,460 Total accrued liabilities $ 174,111 $ 213,111 (1) The change between December 31, 2019 and December 31, 2018 is due to the adoption of ASC 842. See Note 2, “Summary of Significant Accounting Policies,” for additional information. |
Other Non-Current Liabilities | Other non-current in thousands December 31, 2019 2018 Deferred revenue $ 21,889 $ 21,482 Deferred rent (1) — 35,897 Asset retirement obligations 11,560 9,696 Deferred tax liabilities 2,340 2,162 Other 10,704 10,954 Total other non-current $ 46,493 $ 80,191 (1) The change between December 31, 2019 and December 31, 2018 is due to the adoption of ASC 842. See Note 2, “Summary of Significant Accounting Policies,” for additional information. |
Schedule of Changes in Warranty Reserves | Changes in our warranty reserve, which is included in accrued liabilities, for the years ended December 31, 2019 and 2018 consist of the following ( in thousands Warranty Reserve Balance—January 1, 2018 $ 2,424 Accruals for warranties issued 10,172 Settlements of warranties (305 ) Balance—December 31, 2018 12,291 Accruals for warranties issued 8,754 Settlements and adjustments to warranties (1) (7,880 ) Balance—December 31, 2019 $ 13,165 (1) Includes the impact of airline partner agreements transitioning to the turnkey model in 2019 (see Note 2, “Summary of Significant Accounting Policies,” for additional information). |
Schedule of Changes in Non Current Asset Retirement Obligation | Changes in our non-current in thousands Asset Retirement Obligation Balance—January 1, 2018 $ 9,668 Liabilities incurred (1) (760 ) Liabilities settled (192 ) Accretion expense 1,035 Foreign exchange rate adjustments (55 ) Balance—December 31, 2018 9,696 Liabilities incurred 1,095 Liabilities settled (39 ) Accretion expense 848 Foreign exchange rate adjustments (40 ) Balance—December 31, 2019 $ 11,560 (1) Includes $0.8 million related to a change in estimate in the expected cash flows for our estimated liabilities. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Other than Goodwill | Our intangible assets, other than goodwill, as of December 31, 2019 and 2018 were as follows ( in thousands, except for weighted average remaining useful life Weighted As of December 31, 2019 As of December 31, 2018 Avera ge Gross Accumulated Net Gross Accumulated Net Amortized intangible assets: Software 2.6 $ 177,190 $ (135,154 ) $ 42,036 $ 164,580 $ (116,873 ) $ 47,707 Other intangible assets 7.8 3,000 (1,440 ) 1,560 3,000 (1,396 ) 1,604 Service customer relationships 8,081 (8,081 ) — 8,081 (6,804 ) 1,277 OEM and dealer relationships 6,724 (6,724 ) — 6,724 (6,724 ) — Total amortized intangible assets 194,995 (151,399 ) 43,596 182,385 (131,797 ) 50,588 Unamortized intangible assets: FCC Licenses 32,283 — 32,283 32,283 — 32,283 Total intangible assets $ 227,278 $ (151,399 ) $ 75,879 $ 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 2020 $ 18,092 2021 $ 13,820 2022 $ 9,165 2023 $ 1,411 2024 $ 343 Thereafter $ 765 |
Long-Term Debt and Other Liab_2
Long-Term Debt and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt as of December 31, 2019 and 2018 in thousands December 31, December 31, 2019 2018 2024 Senior Secured Notes $ 921,137 $ — 2022 Senior Secured Notes — 702,670 2022 Convertible Notes 201,868 190,083 2020 Convertible Notes 2,498 149,195 Total debt 1,125,503 1,041,948 Less deferred financing costs (24,255 ) (17,055 ) Total long-term debt $ 1,101,248 $ 1,024,893 |
Summary of Redemption Prices Plus Accrued and Unpaid Interest | 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 May 1 of the following years: Year Redemption 2021 104.938 % 2022 102.469 % 2023 and thereafter 100.000 % |
Interest Costs (Tables)
Interest Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Summary of Interest Costs | The following is a summary of our interest costs for the years ended December 31, 2019, 2018 and 2017 (in thousands) For the Years Ended December 31, 2019 2018 2017 Interest costs charged to expense $ 110,601 $ 100,274 $ 89,915 Amortization of deferred financing costs 5,260 4,280 3,743 Accretion of debt discount 15,729 21,105 19,520 Amortization of debt premium (1,018 ) (2,850 ) (1,234 ) Interest expense 130,572 122,809 111,944 Interest costs capitalized to property and equipment 11 32 26 Interest costs capitalized to software 608 364 1,075 Total interest costs $ 131,191 $ 123,205 $ 113,045 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 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 December 31, 2019 and 2018 was as follows (in thousands) December 31, 2019 December 31, 2018 Fair (1) Carrying Fair (1) Carrying 2024 Senior Secured Notes $ 982,000 $ 921,137 (2) $ — $ — 2022 Senior Secured Notes — — 737,000 702,670 (3) 2022 Convertible Notes 297,000 201,868 (4) 216,000 190,083 (4) 2020 Convertible Notes 2,498 2,498 150,000 149,195 (5) (1) Fair value amounts are rounded to the nearest million, except for the 2020 Convertible Notes as of December 31, 2019. (2) Carrying value of the 2024 Senior Secured Notes reflects the unaccreted debt discount of $3.9 million as of December 31, 2019. See Note 7, “Long-Term Debt and Other Liabilities,” for further information. (3) Carrying value of the 2022 Senior Secured Notes reflects the unamortized debt premium and consent fees of $12.7 million as of December 31, 2018. See Note 7, “Long-Term Debt and Other Liabilities,” for further information. (4) Carrying value of the 2022 Convertible Notes reflects the unaccreted debt discount of $35.9 million and $47.7 million, respectively, as of December 31, 2019 and 2018. See Note 7, “Long-Term Debt and Other Liabilities,” for further information. (5) Carrying value of the 2020 Convertible Notes reflects the unaccreted debt discount of $12.8 million as of December 31, 2018. See Note 7, “Long-Term Debt and Other Liabilities,” for further information. |
Business Segments and Major C_2
Business Segments and Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Reportable Segments | Information regarding our reportable segments is as follows ( in thousands For the Year Ended December 31, 2019 CA-NA CA-ROW BA Total Service revenue $ 354,366 $ 88,065 $ 221,922 $ 664,353 Equipment revenue 23,653 60,657 87,063 171,373 Total revenue $ 378,019 $ 148,722 $ 308,985 $ 835,726 Reportable segment profit (loss) $ 97,920 $ (62,314 ) $ 143,966 $ 179,572 For the Year Ended December 31, 2018 CA-NA CA-ROW BA Total Service revenue $ 367,368 $ 66,402 $ 196,377 $ 630,147 Equipment revenue (1) 101,849 67,992 93,776 263,617 Total revenue $ 469,217 $ 134,394 $ 290,153 $ 893,764 Reportable segment profit (loss) $ 62,286 $ (90,779 ) $ 140,198 $ 111,705 For the Year Ended December 31, 2017 CA-NA CA-ROW BA Total Service revenue $ 393,484 $ 53,542 $ 170,880 $ 617,906 Equipment revenue 7,129 4,323 69,732 81,184 Total revenue $ 400,613 $ 57,865 $ 240,612 $ 699,090 Reportable segment profit (loss) $ 100,754 $ (102,482 ) $ 99,513 $ 97,785 (1) CA-NA |
Reconciliation of Segment Profit (loss) | A reconciliation of total reportable segment profit (loss) to the relevant consolidated amounts is as follows ( in thousands For the Years Ended December 31, 2019 2018 2017 CA-NA $ 97,920 $ 62,286 $ 100,754 CA-ROW (62,314 ) (90,779 ) (102,482 ) BA segment profit 143,966 140,198 99,513 Total reportable segment profit 179,572 111,705 97,785 Unallocated corporate costs (1) (33,365 ) (40,275 ) (38,552 ) Interest income 4,210 4,292 2,964 Interest expense (130,572 ) (122,809 ) (111,944 ) Depreciation and amortization (118,817 ) (133,617 ) (145,490 ) Transition to airline-directed model — 21,551 — Amortization of deferred airborne lease incentives 28,551 31,650 41,816 Amortization of STC costs (2,706 ) (1,023 ) — Stock-based compensation expense (16,511 ) (16,912 ) (19,821 ) Loss on extinguishment of debt (57,962 ) (19,653 ) — Other income (expense) 2,602 (233 ) (750 ) Loss before income taxes $ (144,998 ) $ (165,324 ) $ (173,992 ) (1) Represents costs that are not directly attributable to the reportable segments, comprised primarily of the costs of corporate functions, including executive, legal, finance and human resources, but excluding stock-based compensation expense for those functions of $6.1 million, $5.9 million and $7.3 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Stock-Based Compensation Expense | The following is a summary of our stock-based compensation expense included in the consolidated statements of operations for the years December 31, 2019, 2018 and 2017 (in thousands) 2019 2018 2017 Cost of service revenue $ 1,615 $ 1,659 $ 1,748 Cost of equipment revenue 275 210 185 Engineering, design and development 2,999 3,347 3,656 Sales and marketing 3,377 4,267 4,751 General and administrative 8,245 7,429 9,481 Total stock-based compensation expense $ 16,511 $ 16,912 $ 19,821 |
Summary of Stock Options Activity | A summary of stock option activity for the year ended December 31, 2019 is as follows: Number of Weighted Weighted Aggregate (in thousands) Options outstanding – January 1, 2019 10,714,158 $ 12.81 6.25 $ — Granted 1,525,880 $ 4.69 Exercised (3,338 ) $ 5.01 Forfeited (555,605 ) $ 9.45 Expired (606,591 ) $ 15.78 Options outstanding – December 31, 2019 11,074,504 $ 11.70 5.25 $ 3,050 Options exercisable – December 31, 2019 7,393,469 $ 13.34 3.82 $ 780 |
Schedule of Weighted Average Assumptions Used and Weighted Average Grant Date Fair Value of Stock Options | We estimate the fair value of stock options using the Black-Scholes option-pricing model. Weighted average assumptions used and weighted average grant date fair value of stock options granted for the years ended December 31, 2019, 2018, and 2017 were as follows: 2019 2018 2017 Approximate risk-free interest rate 2.3 % 2.7 % 2.3 % Average expected life (years) 6.02 6.03 6.14 Dividend yield N/A N/A N/A Volatility 60.5 % 49.2 % 45.3 % Weighted average grant date fair value of common stock underlying options granted $ 4.71 $ 8.97 $ 11.97 Weighted average grant date fair value of stock options granted $ 2.69 $ 4.42 $ 5.59 |
Restricted Stock Units And Deferred Stock Units [Member] | |
Summarizes the Activities for Unvested RSUs and DSUs | The following table summarizes the activities for our unvested RSUs and DSUs for the year ended December 31, 2019: Number of Weighted Unvested – January 1, 2019 3,223,980 $ 6.51 Granted 2,219,248 $ 4.73 Vested (692,693 ) $ 9.20 Forfeited/canceled (567,303 ) $ 5.94 Unvested – December 31, 2019 4,183,232 $ 5.18 |
Restricted Stock [Member] | |
Summarizes the Activities for Unvested RSUs and DSUs | The following table summarizes the activity for our restricted stock for the year ended December 31, 2019: Number of Weighted Unvested – January 1, 2019 118,053 $ 12.38 Granted — $ — Vested (66,174 ) $ 11.95 Forfeited/canceled (7,675 ) $ 2.99 Unvested – December 31, 2019 44,204 $ 11.63 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Loss Before Income Taxes | For financial reporting purposes, loss before income taxes included the following components for the years ended December 31, 2019, 2018, and 2017 ( in thousands For the Years Ended December 31, 2019 2018 2017 United States $ (131,220 ) $ (128,361 ) $ (138,881 ) Foreign (13,778 ) (36,963 ) (35,111 ) Loss before income taxes $ (144,998 ) $ (165,324 ) $ (173,992 ) |
Components of (Benefit) Provision for Income Taxes | Significant components of the (benefit) provision for income taxes for the years ended December 31, 2019, 2018, and 2017 are as follows ( in thousands For the Years Ended December 31, 2019 2018 2017 Current: Federal $ — $ — $ — State 385 467 235 Foreign 444 61 49 829 528 284 Deferred: Federal 91 (3,908 ) (2,590 ) State 86 87 309 177 (3,821 ) (2,281 ) Total $ 1,006 $ (3,293 ) $ (1,997 ) |
Income Tax Computed at Federal Statutory Tax Rates | The (benefit) provision for income taxes differs from income taxes computed at the federal statutory tax rates for the years ended December 31, 2019, 2018, and 2017 as a result of the following items: For the Years Ended December 31, 2019 2018 2017 Federal statutory rate 21.0 % 21.0 % 35.0 % Effect of: Impact of change in tax rate (0.1 ) 0.1 (47.0 ) Change in valuation allowance (22.7 ) (24.8 ) 12.5 State income taxes-net 4.2 4.0 2.4 Other (3.1 ) 1.7 (1.8 ) Effective tax rate (0.7 )% 2.0 % 1.1 % |
Components of Deferred Income Tax Assets and Liabilities | Components of the net deferred income tax asset as of December 31, 2019 and 2018 are as follows ( in thousands December 31, December 31, 2019 2018 Deferred income tax assets: Compensation accruals $ 5,847 $ 3,407 Stock options 18,192 15,552 Inventory 1,266 1,102 Warranty reserves 913 1,014 Deferred rent — 9,603 Deferred revenue 43,256 37,501 Federal net operating loss (NOL) 141,803 143,433 State NOL 24,744 24,623 Interest carryforward 48,980 22,029 UN I 2,539 2,311 Finite-lived intangible assets 6,394 7,576 Lease liability 22,355 — Other 9,243 11,576 Total deferred income tax assets 325,532 279,727 Deferred income tax liabilities: Fixed assets (59,584 ) (53,944 ) Indefinite-lived intangible assets (7,074 ) (6,528 ) Convertible Notes discount (8,706 ) (14,612 ) Right-of-use (13,553 ) — Other (3,768 ) (2,272 ) Total deferred income tax liabilities (92,685 ) (77,356 ) Total deferred income tax 232,847 202,371 Valuation allowance (235,187 ) (204,533 ) Net deferred income tax liability $ (2,340 ) $ (2,162 ) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 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 consolidated statement of operations (in thousands) For the Year Ended December 31, 2019 Operating lease cost $ 19,437 Financing lease cost Amortization of leased assets 666 Interest on lease liabilities 57 Total lease cost $ 20,160 |
Schedule Includes Other information About Leases | Other information regarding our leases is as follows (in thousands, except lease terms and discount rates) For the Year Ended December 31, 2019 Supplemental cash flow information Cash paid for amounts included in measurement of lease liabilities: Operating cash flows used in operating leases $ 23,202 Operating cash flows used in financing leases 57 Financing cash flows used in financing leases 713 Non-cash Operating leases obtained 15,588 Modifications to operating leases (20,027 ) Finance leases obtained 1,326 Weighted average remaining lease term Operating leases 8 years Financing leases 3 years Weighted average discount rate Operating leases 9.44 % Financing leases 8.28 % |
Annual future minimum lease payments | Annual future minimum lease payments as of December 31, 2019 (in thousands) Operating Financing Years ending December 31, Leases Leases 2020 $ 19,930 $ 761 2021 18,760 555 2022 17,145 473 2023 13,246 — 2024 9,571 — Thereafter 53,913 — Total future minimum lease payments 132,565 1,789 Less: Amount representing interest (42,516 ) (157 ) Present value of net minimum lease payments $ 90,049 $ 1,632 Reported as of December 31, 2019 Accrued liabilities $ 12,241 $ 620 Non-current 77,808 — Other non-current — 1,012 Total lease liabilities $ 90,049 $ 1,632 |
Quarterly Data (Unaudited) (Tab
Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized Quarterly Financial Information | Summarized quarterly financial information is as follows for each quarterly period for the years ended December 31, 2019 and 2018 ( in thousands, except per share amounts For the Three Months Ended Mar 31, June 30, Sep 30, Dec 31, Total revenue $ 199,549 $ 213,685 $ 201,182 $ 221,310 Operating income 11,448 9,666 7,218 8,392 Net loss (16,799 ) (83,963 ) (22,891 ) (22,351 ) Net loss attributable to common stock (16,799 ) (83,963 ) (22,891 ) (22,351 ) Net loss attributable to common stock per share—basic and diluted $ (0.21 ) $ (1.04 ) $ (0.28 ) $ (0.28 ) Weighted average number of shares—basic and diluted 80,446 80,702 80,908 80,997 For the Three Months Ended Mar 31, June 30, Sep 30, Dec 31, Total revenue $ 231,825 $ 227,458 $ 217,257 $ 217,224 Operating loss (2,171 ) (7,449 ) (7,610 ) (9,691 ) Net loss (27,419 ) (37,207 ) (37,717 ) (59,688 ) Net loss attributable to common stock (27,419 ) (37,207 ) (37,717 ) (59,688 ) Net loss attributable to common stock per share—basic and diluted $ (0.34 ) $ (0.47 ) $ (0.47 ) $ (0.74 ) Weighted average number of shares—basic and diluted 79,696 79,783 80,196 80,303 |
Condensed Financial Informati_2
Condensed Financial Information of Registrant (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Balance Sheets | Gogo Inc. Condensed Balance Sheets (in thousands) December 31, December 31, 2019 2018 Assets: Cash and cash equivalents $ 118,323 $ 161,113 Short-term investments — 39,323 Prepaid expenses and other current assets 164 738 Other non-current 2,599 101 Total assets $ 121,086 $ 201,275 Liabilities and stockholders’ deficit: Total current liabilities $ 2,200 $ 3,998 Long-term debt 199,849 332,211 Other non-current 2,340 2,162 Investments and payables with subsidiaries 315,587 131,665 Total liabilities 519,976 470,036 Total stockholders’ deficit (398,890 ) (268,761 ) Total liabilities and stockholders’ deficit $ 121,086 $ 201,275 |
Condensed Statements of Operations and Comprehensive Loss | Gogo Inc. Condensed Statements of Operations and Comprehensive Loss (in thousands) For the Years Ended December 31, 2019 2018 2017 Interest income $ (3,083 ) $ (3,123 ) $ (1,681 ) Interest expense 33,807 36,984 34,577 Loss on extinguishment of debt 9,163 19,653 — Other 3 — — Total other (income) expense 39,890 53,514 32,896 Income (loss) before income taxes (39,890 ) (53,514 ) (32,896 ) Income tax provision (benefit) 563 (3,354 ) (2,045 ) Equity losses of subsidiaries 105,551 111,871 141,144 Net loss $ (146,004 ) $ (162,031 ) $ (171,995 ) Comprehensive loss $ (146,004 ) $ (162,031 ) $ (171,995 ) |
Condensed Statements of Cash Flows | Gogo Inc. Condensed Statements of Cash Flows (in thousands) For the Years Ended December 31, 2019 2018 2017 Net loss $ (146,004 ) $ (162,031 ) $ (171,995 ) Accretion of debt discount 15,276 21,105 19,520 Amortization of deferred financing costs 1,906 1,648 1,484 Loss on extinguishment of debt 9,163 19,653 — Subsidiary equity losses 105,551 111,871 141,144 Deferred income taxes 178 (3,821 ) (2,281 ) Other operating activities (1,224 ) (674 ) (609 ) Net cash used in operating activities (15,154 ) (12,249 ) (12,737 ) Acquisition of short-term investments — (39,323 ) (192,893 ) Redemption of short-term investments 39,323 192,893 213,905 Investments and advances with subsidiaries 94,716 (19,595 ) 601 Net cash provided by (used in) investing activities 134,039 133,975 21,613 Financing activities: Proceeds from issuance of convertible notes — 237,750 — Repurchase of convertible notes (159,502 ) (200,438 ) — Payment of debt issuance costs — (8,054 ) — Other financing activities 325 396 (227 ) Net cash provided by (used in) financing activities (159,177 ) 29,654 (227 ) Increase (decrease) in cash, cash equivalents and restricted cash (40,292 ) 151,380 8,649 Cash, cash equivalents and restricted cash at beginning of period 161,214 9,834 1,185 Cash, cash equivalents and restricted cash at end of period $ 120,922 $ 161,214 $ 9,834 Cash, cash equivalents and restricted cash at end of period $ 120,922 $ 161,214 $ 9,834 Less: current restricted cash — — — Less: non-current 2,599 101 100 Cash and cash equivalents at end of period $ 118,323 $ 161,113 $ 9,734 |
Background - Additional Informa
Background - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 3 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) shares in Millions | Dec. 11, 2019 | Mar. 03, 2015 | Mar. 03, 2015 | Mar. 31, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 |
Schedule Of Summary Of Significant Accounting Policies [Line Items] | ||||||||
Depreciation expense | $ 99,200,000 | $ 107,100,000 | $ 120,600,000 | |||||
Impairment charges | 0 | 0 | 0 | |||||
Impairments of long-lived assets | 0 | 0 | 0 | |||||
Research and development expense | $ 71,500,000 | $ 72,700,000 | $ 78,100,000 | |||||
Forward stock repurchase transaction, shares | 7.2 | 7.2 | 7.2 | |||||
Forward stock repurchase transactions amount | $ 140,000,000 | $ 140,000,000 | ||||||
Property and equipment, net | $ 560,318,000 | $ 511,867,000 | $ 656,038,000 | |||||
Accrued Liabilities | $ 174,111,000 | 213,111,000 | ||||||
Current Financing Lease Liabilities [Member] | Previously Reported [Member] | ||||||||
Schedule Of Summary Of Significant Accounting Policies [Line Items] | ||||||||
Accrued Liabilities | $ 652,000 | |||||||
Air Line Inventory [Member] | ||||||||
Schedule Of Summary Of Significant Accounting Policies [Line Items] | ||||||||
Property and equipment, net | $ 46,800,000 | |||||||
3.75% Convertible Senior Notes [Member] | ||||||||
Schedule Of Summary Of Significant Accounting Policies [Line Items] | ||||||||
Forward stock repurchase transaction, shares | 7.2 | |||||||
Forward stock repurchase transactions amount | $ 140,000,000 | |||||||
Forward stock repurchase transaction, settlement date | Mar. 13, 2020 | |||||||
2022 Convertible Notes [Member] | ||||||||
Schedule Of Summary Of Significant Accounting Policies [Line Items] | ||||||||
Forward stock repurchase transaction, shares | 2.1 | |||||||
Forward stock repurchase transaction, settlement date | May 15, 2022 | |||||||
Minimum [Member] | ||||||||
Schedule Of Summary Of Significant Accounting Policies [Line Items] | ||||||||
Warranty term | 2 years | |||||||
Maximum [Member] | ||||||||
Schedule Of Summary Of Significant Accounting Policies [Line Items] | ||||||||
Warranty term | 10 years | |||||||
Cell Site [Member] | Minimum [Member] | ||||||||
Schedule Of Summary Of Significant Accounting Policies [Line Items] | ||||||||
Lease term | 5 years | |||||||
Option to renewal lease term | 5 years | |||||||
Cell Site [Member] | Maximum [Member] | ||||||||
Schedule Of Summary Of Significant Accounting Policies [Line Items] | ||||||||
Lease term | 10 years | |||||||
Option to renewal lease term | 25 years | |||||||
Building [Member] | Minimum [Member] | ||||||||
Schedule Of Summary Of Significant Accounting Policies [Line Items] | ||||||||
Lease term | 1 year | |||||||
Option to renewal lease term | 1 year | |||||||
Building [Member] | Maximum [Member] | ||||||||
Schedule Of Summary Of Significant Accounting Policies [Line Items] | ||||||||
Lease term | 10 years | |||||||
Option to renewal lease term | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Depreciation of Property and Equipment Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Office Equipment, Furniture, Fixtures and Other [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation of property and equipment estimated useful lives | 3 years |
Office Equipment, Furniture, Fixtures and Other [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation of property and equipment estimated useful lives | 7 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation of property and equipment estimated useful lives | 3 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation of property and equipment estimated useful lives | 13 years |
Airborne Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation of property and equipment estimated useful lives | 7 years |
Network Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation of property and equipment estimated useful lives | 5 years |
Network Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation of property and equipment estimated useful lives | 25 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Finite Lived Intangible Asset Useful Life (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Software [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite lived intangible asset useful life | 2 years 7 months 6 days |
Software [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite lived intangible asset useful life | 3 years |
Software [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite lived intangible asset useful life | 8 years |
OEM and Dealer Relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite lived intangible asset useful life | 10 years |
Service Customer Relationships [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite lived intangible asset useful life | 5 years |
Service Customer Relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite lived intangible asset useful life | 7 years |
Other Intangible Assets [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite lived intangible asset useful life | 7 years 9 months 18 days |
Other Intangible Assets [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite lived intangible asset useful life | 4 years |
Other Intangible Assets [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite lived intangible asset useful life | 10 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Financial Effects Due to Transition of Agreements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Prepaid expense and other current assets | $ 36,305 | $ 34,695 | $ 36,305 | $ 34,695 | $ 20,310 | ||||||
Property and equipment, net | (560,318) | (511,867) | (560,318) | (511,867) | (656,038) | ||||||
Other non-current assets | 89,672 | 84,212 | 89,672 | 84,212 | 67,107 | ||||||
Accrued liabilities | 174,111 | 213,111 | 174,111 | 213,111 | |||||||
Current deferred airborne lease incentive | 26,582 | 24,145 | 26,582 | 24,145 | |||||||
Non-current deferred airborne lease incentive | 135,399 | 129,086 | 135,399 | 129,086 | |||||||
Equipment revenue | 221,310 | $ 201,182 | $ 213,685 | $ 199,549 | $ 217,224 | $ 217,257 | $ 227,458 | $ 231,825 | 835,726 | 893,764 | 699,090 |
Cost of equipment revenue | 134,728 | $ 222,244 | $ 58,554 | ||||||||
Transition Agreements To Airline-directed Model [Member] | |||||||||||
Prepaid expense and other current assets | 6,603 | 6,603 | |||||||||
Property and equipment, net | (32,716) | (32,716) | |||||||||
Other non-current assets | 18,783 | 18,783 | |||||||||
Accrued liabilities | 2,000 | 2,000 | |||||||||
Current deferred airborne lease incentive | (13,592) | (13,592) | |||||||||
Non-current deferred airborne lease incentive | $ (17,289) | (17,289) | |||||||||
Equipment revenue | 45,396 | ||||||||||
Cost of equipment revenue | $ 23,845 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Adoption Impact of ASC 842 on Unaudited Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||||
Operating lease right-of-use assets | $ 63,386 | |||
Liabilities | ||||
Accrued liabilities | 174,111 | $ 213,111 | ||
Non-current operating lease liabilities | 77,808 | |||
Other non-current liabilities | 46,493 | 80,191 | $ 134,655 | |
Equity | ||||
Accumulated deficit | (1,376,142) | $ (1,228,674) | $ (1,089,369) | |
Accounting Standards Update 2016-02 [Member] | ||||
Assets | ||||
Operating lease right-of-use assets | $ 72,188 | |||
Liabilities | ||||
Accrued liabilities | 222,130 | |||
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) |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Summary of Cumulative Effect of Adoption on Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | |||
Inventories | $ 117,144 | $ 193,045 | $ 45,543 |
Prepaid expenses and other current assets | 36,305 | 34,695 | 20,310 |
Property and equipment, net | 560,318 | 511,867 | 656,038 |
Other non-current assets | 89,672 | 84,212 | 67,107 |
Liabilities | |||
Current deferred revenue | 34,789 | 38,571 | 43,448 |
Other non-current liabilities | 46,493 | 80,191 | 134,655 |
Equity | |||
Accumulated deficit | $ (1,376,142) | $ (1,228,674) | (1,089,369) |
Accounting Standards Update 2014-09 And 340-40 [Member] | |||
Assets | |||
Inventories | 46,517 | ||
Prepaid expenses and other current assets | 20,913 | ||
Property and equipment, net | 651,633 | ||
Other non-current assets | 37,101 | ||
Liabilities | |||
Current deferred revenue | 36,266 | ||
Other non-current liabilities | 86,277 | ||
Equity | |||
Accumulated deficit | (1,066,643) | ||
Accounting Standards Update 2014-09 And 340-40 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
Assets | |||
Inventories | 974 | ||
Prepaid expenses and other current assets | 603 | ||
Property and equipment, net | (4,405) | ||
Other non-current assets | (30,006) | ||
Liabilities | |||
Current deferred revenue | (7,182) | ||
Other non-current liabilities | (48,378) | ||
Equity | |||
Accumulated deficit | $ 22,726 |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Forward stock repurchase transaction shares, excluded from dilution effect | 7.2 | 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 | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net loss | $ (22,351) | $ (22,891) | $ (83,963) | $ (16,799) | $ (59,688) | $ (37,717) | $ (37,207) | $ (27,419) | $ (146,004) | $ (162,031) | $ (171,995) |
Less: Participation rights of the Forward Transactions | 0 | ||||||||||
Undistributed losses | $ (22,351) | $ (22,891) | $ (83,963) | $ (16,799) | $ (59,688) | $ (37,717) | $ (37,207) | $ (27,419) | $ (146,004) | $ (162,031) | $ (171,995) |
Weighted-average common shares outstanding-basic and diluted | 80,997 | 80,908 | 80,702 | 80,446 | 80,303 | 80,196 | 79,783 | 79,696 | 80,766 | 80,038 | 79,407 |
Net loss attributable to common stock per share-basic and diluted | $ (280) | $ (280) | $ (1,040) | $ (210) | $ (740) | $ (470) | $ (470) | $ (340) | $ (1.81) | $ (2.02) | $ (2.17) |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contracts with Customers [Line Items] | ||
Transaction price allocated to remaining performance obligations | $ 529 | |
Service revenue occurring period | 1 year | |
Future equipment revenue recognition period | next one to three years | |
Future Equipment Revenue [Member] | ||
Revenue from Contracts with Customers [Line Items] | ||
Equipment revenue | $ 98 | |
Connectivity and Entertainment Service Revenues [Member] | ||
Revenue from Contracts with Customers [Line Items] | ||
Transaction price allocated to remaining performance obligations | 431 | |
Airline [Member] | ||
Revenue from Contracts with Customers [Line Items] | ||
Contract assets, current and non-current | 64.2 | $ 59.9 |
Accounting Standards Update 2014-09 [Member] | ||
Revenue from Contracts with Customers [Line Items] | ||
Deferred revenue, current and non-current | 56.7 | 60.1 |
Deferred STC costs | 17.5 | 16.5 |
Accounting Standards Update 2014-09 [Member] | Engineering, Design and Development [Member] | ||
Revenue from Contracts with Customers [Line Items] | ||
Amortization expense | $ 2.7 | $ 1 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Revenue Disaggregated by Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | $ 221,310 | $ 201,182 | $ 213,685 | $ 199,549 | $ 217,224 | $ 217,257 | $ 227,458 | $ 231,825 | $ 835,726 | $ 893,764 | $ 699,090 |
Airline Passenger and Aircraft Owner/Operator [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 452,879 | 434,581 | |||||||||
Airline, OEM and Aftermarket Dealer [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 330,161 | 394,908 | |||||||||
Third Party [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 52,686 | 64,275 | |||||||||
Service Revenue [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 664,353 | 630,147 | |||||||||
Service Revenue [Member] | Connectivity [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 626,652 | 598,768 | |||||||||
Service Revenue [Member] | Entertainment, CAS and Other [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 37,701 | 31,379 | |||||||||
Equipment Revenue [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 171,373 | 263,617 | |||||||||
Equipment Revenue [Member] | ATG [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 78,872 | 125,569 | |||||||||
Equipment Revenue [Member] | Satellite [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 88,752 | 134,596 | |||||||||
Equipment Revenue [Member] | Other [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 3,749 | 3,452 | |||||||||
CA-NA [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 378,019 | 469,217 | 400,613 | ||||||||
CA-NA [Member] | Airline Passenger and Aircraft Owner/Operator [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 203,376 | 216,466 | |||||||||
CA-NA [Member] | Airline, OEM and Aftermarket Dealer [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 129,844 | 196,106 | |||||||||
CA-NA [Member] | Third Party [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 44,799 | 56,645 | |||||||||
CA-NA [Member] | Service Revenue [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 354,366 | 367,368 | |||||||||
CA-NA [Member] | Service Revenue [Member] | Connectivity [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 322,783 | 339,791 | |||||||||
CA-NA [Member] | Service Revenue [Member] | Entertainment, CAS and Other [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 31,583 | 27,577 | |||||||||
CA-NA [Member] | Equipment Revenue [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 23,653 | 101,849 | |||||||||
CA-NA [Member] | Equipment Revenue [Member] | ATG [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 15,973 | 53,410 | |||||||||
CA-NA [Member] | Equipment Revenue [Member] | Satellite [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 6,340 | 48,439 | |||||||||
CA-NA [Member] | Equipment Revenue [Member] | Other [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 1,340 | ||||||||||
CA-ROW [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 148,722 | 134,394 | 57,865 | ||||||||
CA-ROW [Member] | Airline Passenger and Aircraft Owner/Operator [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 27,581 | 21,738 | |||||||||
CA-ROW [Member] | Airline, OEM and Aftermarket Dealer [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 113,254 | 105,026 | |||||||||
CA-ROW [Member] | Third Party [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 7,887 | 7,630 | |||||||||
CA-ROW [Member] | Service Revenue [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 88,065 | 66,402 | |||||||||
CA-ROW [Member] | Service Revenue [Member] | Connectivity [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 84,419 | 63,955 | |||||||||
CA-ROW [Member] | Service Revenue [Member] | Entertainment, CAS and Other [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 3,646 | 2,447 | |||||||||
CA-ROW [Member] | Equipment Revenue [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 60,657 | 67,992 | |||||||||
CA-ROW [Member] | Equipment Revenue [Member] | Satellite [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 60,657 | 67,992 | |||||||||
BA [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 308,985 | 290,153 | $ 240,612 | ||||||||
BA [Member] | Airline Passenger and Aircraft Owner/Operator [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 221,922 | 196,377 | |||||||||
BA [Member] | Airline, OEM and Aftermarket Dealer [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 87,063 | 93,776 | |||||||||
BA [Member] | Service Revenue [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 221,922 | 196,377 | |||||||||
BA [Member] | Service Revenue [Member] | Connectivity [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 219,450 | 195,022 | |||||||||
BA [Member] | Service Revenue [Member] | Entertainment, CAS and Other [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 2,472 | 1,355 | |||||||||
BA [Member] | Equipment Revenue [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 87,063 | 93,776 | |||||||||
BA [Member] | Equipment Revenue [Member] | ATG [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 62,899 | 72,159 | |||||||||
BA [Member] | Equipment Revenue [Member] | Satellite [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | 21,755 | 18,165 | |||||||||
BA [Member] | Equipment Revenue [Member] | Other [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Disaggregation of revenue | $ 2,409 | $ 3,452 |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Revenue Disaggregated by Category (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 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 |
Composition of Certain Balanc_3
Composition of Certain Balance Sheet Accounts - Components of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | |||
Work-in-process component parts | $ 23,141 | $ 30,340 | |
Finished goods | 94,003 | 162,705 | |
Total inventory | $ 117,144 | $ 193,045 | $ 45,543 |
Composition of Certain Balanc_4
Composition of Certain Balance Sheet Accounts - Components of Inventories (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||||
Property and equipment, net | $ 560,318 | $ 511,867 | $ 656,038 | |
Air Line Inventory [Member] | ||||
Inventory [Line Items] | ||||
Property and equipment, net | $ 46,800 |
Composition of Certain Balanc_5
Composition of Certain Balance Sheet Accounts - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Prepaid Expense and Other Assets [Abstract] | |||
Contract assets | $ 12,364 | $ 10,423 | |
Prepaid satellite services | 11,299 | 7,755 | |
Restricted cash | 560 | 1,535 | |
Other | 12,082 | 14,982 | |
Total prepaid expenses and other current assets | $ 36,305 | $ 34,695 | $ 20,310 |
Composition of Certain Balanc_6
Composition of Certain Balance Sheet Accounts - Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,067,638 | $ 944,772 | |
Accumulated depreciation | (507,320) | (432,905) | |
Total property and equipment, net | 560,318 | 511,867 | $ 656,038 |
Office Equipment, Furniture, Fixtures and Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 56,205 | 52,320 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 44,389 | 44,838 | |
Airborne Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 737,593 | 642,151 | |
Network Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 229,451 | $ 205,463 |
Composition of Certain Balanc_7
Composition of Certain Balance Sheet Accounts - Schedule of Other Non-Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Other Assets, Noncurrent [Abstract] | |||
Contract assets | $ 51,829 | $ 49,517 | |
Deferred STC costs | 17,453 | 16,453 | |
Restricted cash | 7,099 | 5,426 | |
Other | 13,291 | 12,816 | |
Total other non-current assets | $ 89,672 | $ 84,212 | $ 67,107 |
Composition of Certain Balanc_8
Composition of Certain Balance Sheet Accounts - Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued Liabilities, Current [Abstract] | |||
Airline-related accrued liabilities, including revenue share | $ 43,592 | $ 53,527 | |
Accrued interest | 17,048 | 46,694 | |
Employee compensation and benefits | 29,954 | 19,463 | |
Airborne equipment and installation costs | 11,466 | 25,119 | |
Accrued satellite network costs | 13,843 | 19,557 | |
Warranty reserve | 13,165 | 12,291 | $ 2,424 |
Operating leases | 12,241 | ||
Other | 32,802 | 36,460 | |
Total accrued liabilities | $ 174,111 | $ 213,111 |
Composition of Certain Balanc_9
Composition of Certain Balance Sheet Accounts - Other Non-Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Other Liabilities, Noncurrent [Abstract] | |||
Deferred revenue | $ 21,889 | $ 21,482 | |
Deferred rent | 35,897 | ||
Asset retirement obligations | 11,560 | 9,696 | $ 9,668 |
Deferred tax liabilities | 2,340 | 2,162 | |
Other | 10,704 | 10,954 | |
Total other non-current liabilities | $ 46,493 | $ 80,191 | $ 134,655 |
Composition of Certain Balan_10
Composition of Certain Balance Sheet Accounts - Schedule of Changes in Warranty Reserves (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Guarantees [Abstract] | ||
Warranty Beginning Balance | $ 12,291 | $ 2,424 |
Accruals for warranties issued | 8,754 | 10,172 |
Settlements of warranties | (7,880) | (305) |
Warranty Ending Balance | $ 13,165 | $ 12,291 |
Composition of Certain Balan_11
Composition of Certain Balance Sheet Accounts - Schedule of Changes in Non Current Asset Retirement Obligation (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Asset retirement obligation, Beginning Balance | $ 9,696 | $ 9,668 |
Liabilities incurred | 1,095 | (760) |
Liabilities settled | (39) | (192) |
Accretion expense | 848 | 1,035 |
Foreign exchange rate adjustments | (40) | (55) |
Asset retirement obligation, Ending Balance | $ 11,560 | $ 9,696 |
Composition of Certain Balan_12
Composition of Certain Balance Sheet Accounts - Schedule of Changes in Non Current Asset Retirement Obligation (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Asset Retirement Obligation Disclosure [Abstract] | |
Change in estimate in expected cash flows for liabilities | $ 0.8 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 0.6 | $ 0.6 | |
Amortization expense | $ 19.6 | $ 26.5 | $ 24.9 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets, Other than Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets Net Excluding Goodwill [Line Items] | ||
Total intangible assets, Gross Carrying Amount | $ 227,278 | $ 214,668 |
Amortized intangible assets, Gross Carrying Amount | 194,995 | 182,385 |
Amortized intangible assets, Accumulated Amortization | (151,399) | (131,797) |
Amortized intangible assets, Net Carrying Amount | 43,596 | 50,588 |
Total intangible assets, Net Carrying Amount | 75,879 | 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 7 months 6 days | |
Amortized intangible assets, Gross Carrying Amount | $ 177,190 | 164,580 |
Amortized intangible assets, Accumulated Amortization | (135,154) | (116,873) |
Amortized intangible assets, Net Carrying Amount | 42,036 | 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] | ||
Amortized intangible assets, Gross Carrying Amount | 8,081 | 8,081 |
Amortized intangible assets, Accumulated Amortization | (8,081) | (6,804) |
Amortized intangible assets, Net Carrying Amount | $ 0 | 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 | (1,440) | (1,396) |
Amortized intangible assets, Net Carrying Amount | $ 1,560 | $ 1,604 |
Intangible Assets - Summary of
Intangible Assets - Summary of Amortization Expenses (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 18,092 |
2021 | 13,820 |
2022 | 9,165 |
2023 | 1,411 |
2024 | 343 |
Thereafter | $ 765 |
Long-Term Debt and Other Liab_3
Long-Term Debt and Other Liabilities - Additional Information (Detail) $ / shares in Units, shares in Millions | Mar. 05, 2020shares | Dec. 11, 2019USD ($)shares | May 07, 2019USD ($) | Apr. 25, 2019USD ($) | Apr. 18, 2019USD ($) | Jan. 03, 2017USD ($) | Jun. 14, 2016USD ($) | Mar. 03, 2015USD ($)$ / sharesshares | Mar. 03, 2015USD ($)$ / shares | Aug. 26, 2019USD ($)ClassOfCommonStockTradingday | May 03, 2019USD ($) | Nov. 30, 2018USD ($) | Nov. 21, 2018USD ($)$ / shares | Sep. 25, 2017USD ($) | Dec. 31, 2019USD ($)Tradingdayshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares |
Debt Instrument [Line Items] | |||||||||||||||||
Proceeds from issuance of debt | $ 920,683,000 | $ 181,754,000 | |||||||||||||||
Total debt | 1,125,503,000 | $ 1,041,948,000 | |||||||||||||||
Amortization of deferred financing costs | 5,260,000 | 4,280,000 | $ 3,743,000 | ||||||||||||||
Additional paid-in-capital | $ 979,499,000 | 963,458,000 | |||||||||||||||
Proceeds received from the issuance of the convertible notes | $ 237,750,000 | ||||||||||||||||
Forward stock repurchase transactions amount | $ 140,000,000 | $ 140,000,000 | |||||||||||||||
Forward stock repurchase transaction, shares | shares | 7.2 | 7.2 | 7.2 | ||||||||||||||
Repayment of convertible notes | $ 159,502,000 | $ 200,438,000 | |||||||||||||||
Debt Issuance Costs, Net | 0 | ||||||||||||||||
Margin On LIBOR | London inter-bank offered rate plus an applicable margin ranging from 1.50% to 2.00% | ||||||||||||||||
Debt instrument maturity date description | The final maturity of the ABL Credit Facility is August 26, 2022, unless the aggregate outstanding principal amount of our 2022 Convertible Notes (as defined below) has not, on or prior to December 15, 2021, been repaid in full or refinanced with a new maturity date no earlier than February 26, 2023, in which case the final maturity date shall instead be December 16, 2021. | ||||||||||||||||
Letters of Credit [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Restricted cash | 7,700,000 | 7,000,000 | |||||||||||||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest Rate On Debt | 1.50% | ||||||||||||||||
Minimum [Member] | Base Rate [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest Rate On Debt | 0.50% | ||||||||||||||||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest Rate On Debt | 2.00% | ||||||||||||||||
Maximum [Member] | Base Rate [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest Rate On Debt | 1.00% | ||||||||||||||||
ABL Credit Facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Effective interest rate on convertible notes | 15.00% | ||||||||||||||||
Common stock price trading days | Tradingday | 30 | ||||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | 4,500,000 | ||||||||||||||||
ABL Credit Facility [Member] | JP Morgan Chase Bank NA [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Credit Facility borrowing base availability | $ 30,000,000 | ||||||||||||||||
ABL Credit Facility [Member] | Minimum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Unused Borrowing Fee Percentage | 0.25% | ||||||||||||||||
Fixed Charge Coverage Ratio | ClassOfCommonStock | 100 | ||||||||||||||||
Minimum Fixed Charge Coverage Ratio | ClassOfCommonStock | 100 | ||||||||||||||||
ABL Credit Facility [Member] | Maximum [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Unused Borrowing Fee Percentage | 0.375% | ||||||||||||||||
Fixed Charge Coverage Ratio | ClassOfCommonStock | 110 | ||||||||||||||||
Convertible Notes [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Forward stock repurchase transaction, shares | shares | 7.2 | ||||||||||||||||
Forward stock repurchase transaction, settlement date | Mar. 1, 2020 | ||||||||||||||||
12.500% Senior Secured Notes Due 2022 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount | $ 525,000,000 | ||||||||||||||||
Interest rate | 12.50% | ||||||||||||||||
Unamortized debt premium and consent fees | $ 11,700,000 | ||||||||||||||||
Interest rate payable term | semi-annually | ||||||||||||||||
Loan origination fees | $ 15,900,000 | ||||||||||||||||
Amortization of deferred financing costs | 900,000 | 2,600,000 | $ 2,300,000 | ||||||||||||||
Payment Of Premium On Debt Redemption | $ 51,400,000 | ||||||||||||||||
12.500% Senior Secured Notes Due 2022 [Member] | Condition One [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument redemption price percentage of principal amount redeemed | 40.00% | ||||||||||||||||
Debt instrument redemption price, percentage | 109.875% | ||||||||||||||||
Outstanding redemption percentage | 50.00% | ||||||||||||||||
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 | ||||||||||||||||
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 | ||||||||||||||||
12.500% Senior Secured Notes Due 2022 [Member] | Supplemental Indenture [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Consent fees paid | $ 1,400,000 | ||||||||||||||||
3.75% Convertible Senior Notes [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount | $ 361,900,000 | $ 361,900,000 | |||||||||||||||
Interest rate | 3.75% | 3.75% | |||||||||||||||
Interest rate payable term | semi-annually | ||||||||||||||||
Amortization of deferred financing costs | 200,000 | 1,400,000 | $ 1,500,000 | ||||||||||||||
Option granted to initial purchasers | $ 60,000,000 | $ 60,000,000 | |||||||||||||||
Additional paid-in-capital | 100,000,000 | 100,000,000 | |||||||||||||||
Convertible Notes, carrying amount of liability component | 261,900,000 | $ 261,900,000 | $ 2,498,000 | 149,195,000 | |||||||||||||
Effective interest rate on convertible notes | 11.50% | ||||||||||||||||
Proceeds received from the issuance of the convertible notes | $ 361,900,000 | $ 2,500,000 | 162,000,000 | ||||||||||||||
Convertible Notes, unamortized discount | 12,800,000 | ||||||||||||||||
Conversion rate | 41.9274 | ||||||||||||||||
Principal amount | $ 1,000 | ||||||||||||||||
Conversion price | $ / shares | $ 23.85 | $ 23.85 | |||||||||||||||
Forward stock repurchase transactions amount | $ 140,000,000 | ||||||||||||||||
Forward stock repurchase transaction, shares | shares | 2.1 | ||||||||||||||||
Repayment of convertible notes | $ 199,900,000 | ||||||||||||||||
Increase in convertale notes | $ 17,900,000 | ||||||||||||||||
Debt Instrument Redemption Price | $ 1,000 | ||||||||||||||||
Debt Instrument Principal Redemption | $ 1,000 | ||||||||||||||||
Debt Issuance Costs, Net | 900,000 | ||||||||||||||||
3.75% Convertible Senior Notes [Member] | Forecast [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Forward stock repurchase transaction, shares | shares | 5.1 | ||||||||||||||||
Shares Purchased and Retired Under Forward Transactions | shares | 2.1 | ||||||||||||||||
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 | $ 340,000,000 | |||||||||||||||
Principal amount of Convertible Notes, subsequently exercised | $ 21,900,000 | $ 21,900,000 | |||||||||||||||
2024 Senior Secured Notes [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount | 925,000,000 | ||||||||||||||||
Total debt | 921,100,000 | ||||||||||||||||
Convertible Notes, unamortized discount | 3,900,000 | ||||||||||||||||
6.00% Convertible Senior Notes [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount | $ 237,800,000 | ||||||||||||||||
Interest rate | 6.00% | ||||||||||||||||
Amortization of deferred financing costs | 1,700,000 | ||||||||||||||||
Debt issuance costs | 4,500,000 | 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 | 201,900,000 | 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 | 35,900,000 | 47,700,000 | |||||||||||||||
Conversion rate | 166.6667 | ||||||||||||||||
Principal amount | $ 1,000 | 1,000 | |||||||||||||||
Conversion price | $ / shares | $ 6 | ||||||||||||||||
Multiples of principal amount | $ 1,000 | ||||||||||||||||
Outstanding principal balance paid | $ 237,800,000 | ||||||||||||||||
Debt Issuance Costs, Net | $ 6,200,000 | ||||||||||||||||
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 | ||||||||||||||||
9.875% Senior secured Notes Due On 2024 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount | $ 905,000,000 | ||||||||||||||||
Interest rate | 9.875% | ||||||||||||||||
Increase Decrease In Debt Indebtedness | $ 20,000,000 | ||||||||||||||||
Issue price as percentage of face value | 99.512% | ||||||||||||||||
Maturity date | May 1, 2024 | ||||||||||||||||
Loan origination fees | $ 22,000,000 | ||||||||||||||||
Amortization of deferred financing costs | 2,300,000 | ||||||||||||||||
Debt issuance costs | $ 19,700,000 | ||||||||||||||||
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 | ||||||||||||||||
Interest rate | 9.875% | ||||||||||||||||
Issue price as percentage of face value | 100.50% | ||||||||||||||||
Proceeds from issuance of debt | $ 920,700,000 | ||||||||||||||||
Accrued interest received | $ 100,000 | ||||||||||||||||
Debt Instrument, Interest Rate Terms | semiannually | ||||||||||||||||
9.875% Senior secured Notes Due On 2024 [Member] | Condition One [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument redemption price percentage of principal amount redeemed | 103.00% | ||||||||||||||||
Debt Instrument Redemption Price Aggregate Of Principal Amount Redeemable | $ 150,000,000 | ||||||||||||||||
9.875% Senior secured Notes Due On 2024 [Member] | Condition Two [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt instrument redemption price percentage of principal amount redeemed | 101.00% | ||||||||||||||||
Debt instrument redemption price, percentage | 100.00% | ||||||||||||||||
Two Thousand Twenty Convertible Notes [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Repayment of convertible notes | $ 500,000 | ||||||||||||||||
Two Thousand Twenty Convertible Notes [Member] | loss on extinguishment of debt [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Repayment of convertible notes | 159,000,000 | ||||||||||||||||
Debt Issuance Costs, Net | 600,000 | ||||||||||||||||
Repayments Of Convertible Debt Adjustments | $ 8,500,000 |
Long-Term Debt and Other Liab_4
Long-Term Debt and Other Liabilities - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 03, 2015 |
Debt Instrument [Line Items] | |||
Total debt | $ 1,125,503 | $ 1,041,948 | |
Less deferred financing costs | (24,255) | (17,055) | |
Total long-term debt | 1,101,248 | 1,024,893 | |
2024 Senior Secured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Senior Secured Notes | 921,137 | ||
Total debt | 921,137 | ||
2022 Senior Secured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Senior Secured Notes | 702,670 | ||
2022 Convertible Notes [Member] | |||
Debt Instrument [Line Items] | |||
Convertible Notes | 201,868 | 190,083 | |
2020 Convertible Notes [Member] | |||
Debt Instrument [Line Items] | |||
Convertible Notes | $ 2,498 | $ 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) - 2024 Senior Secured Notes [Member] | 12 Months Ended |
Dec. 31, 2019 | |
2021 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument redemption price, percentage | 104.938% |
2022 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt instrument redemption price, percentage | 102.469% |
2023 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 | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Interest [Line Items] | |||
Interest costs charged to expense | $ 110,601 | $ 100,274 | $ 89,915 |
Amortization of deferred financing costs | 5,260 | 4,280 | 3,743 |
Accretion of debt discount | 15,729 | 21,105 | 19,520 |
Amortization of debt premium | (1,018) | (2,850) | (1,234) |
Interest expense | 130,572 | 122,809 | 111,944 |
Total interest costs | 131,191 | 123,205 | 113,045 |
Property and Equipment [Member] | |||
Schedule Of Interest [Line Items] | |||
Interest costs capitalized | 11 | 32 | 26 |
Software [Member] | |||
Schedule Of Interest [Line Items] | |||
Interest costs capitalized | $ 608 | $ 364 | $ 1,075 |
Common Stock and Preferred St_2
Common Stock and Preferred Stock - Additional Information (Detail) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Equity [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Preferred stock share authorized | 100,000,000 | |
Preferred stock, par value | $ 0.01 | |
Preferred stock share issued | 0 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | |||
Assets fair value adjustments | $ 0 | $ 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 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 03, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total debt | $ 1,125,503 | $ 1,041,948 | |
2024 Senior Secured Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value of Long Term Debt | 982,000 | ||
Total debt | 921,137 | ||
2022 Senior Secured Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value of Long Term Debt | 737,000 | ||
Total debt | 702,670 | ||
2022 Convertible Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value of Convertible Notes | 297,000 | 216,000 | |
Carrying Value of Convertible Notes | 201,868 | 190,083 | |
2020 Convertible Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value of Convertible Notes | 2,498 | 150,000 | |
Carrying Value of Convertible Notes | $ 2,498 | $ 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 | Dec. 31, 2019 | Dec. 31, 2018 |
2024 Senior Secured Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unamortized debt premium and consent fees | $ 3.9 | |
2022 Senior Secured Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unamortized debt premium and consent fees | $ 12.7 | |
6% Convertible Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Unamortized Discount | $ 35.9 | 47.7 |
3.75% Convertible Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Unamortized Discount | $ 12.8 |
Business Segments and Major C_3
Business Segments and Major Customers - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)SegmentCustomer | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of operating segments | Segment | 3 | ||||||||||
Number of customers meeting concentration risk threshold | Customer | 0 | ||||||||||
Equipment revenue | $ 221,310 | $ 201,182 | $ 213,685 | $ 199,549 | $ 217,224 | $ 217,257 | $ 227,458 | $ 231,825 | $ 835,726 | $ 893,764 | $ 699,090 |
American Airlines [Member] | Transition Agreement To Airline Directed Model [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Equipment revenue | $ 45,400 | ||||||||||
Revenue [Member] | Customer Concentration Risk [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage of benchmark | 15.00% | 15.00% | 15.00% | ||||||||
Revenue [Member] | Customer Concentration Risk [Member] | Delta Airline and American Airlines [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage of benchmark | 28.00% | 23.00% | 26.00% | ||||||||
Revenue [Member] | Customer Concentration Risk [Member] | American Airlines [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage of benchmark | 10.00% | 22.00% | 21.00% | ||||||||
Accounts Receivable [Member] | Delta Air Lines [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage of benchmark | 11.00% | 11.00% | |||||||||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | Delta Air Lines [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage of benchmark | 10.00% | 11.00% |
Business Segments and Major C_4
Business Segments and Major Customers - Summary of Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 221,310 | $ 201,182 | $ 213,685 | $ 199,549 | $ 217,224 | $ 217,257 | $ 227,458 | $ 231,825 | $ 835,726 | $ 893,764 | $ 699,090 |
Segment profit (loss) | 179,572 | 111,705 | 97,785 | ||||||||
Service [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 664,353 | 630,147 | 617,906 | ||||||||
Product [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 171,373 | 263,617 | 81,184 | ||||||||
CA-NA [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 378,019 | 469,217 | 400,613 | ||||||||
Segment profit (loss) | 97,920 | 62,286 | 100,754 | ||||||||
CA-NA [Member] | Service [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 354,366 | 367,368 | 393,484 | ||||||||
CA-NA [Member] | Product [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 23,653 | 101,849 | 7,129 | ||||||||
CA-ROW [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 148,722 | 134,394 | 57,865 | ||||||||
Segment profit (loss) | (62,314) | (90,779) | (102,482) | ||||||||
CA-ROW [Member] | Service [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 88,065 | 66,402 | 53,542 | ||||||||
CA-ROW [Member] | Product [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 60,657 | 67,992 | 4,323 | ||||||||
BA [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 308,985 | 290,153 | 240,612 | ||||||||
Segment profit (loss) | 143,966 | 140,198 | 99,513 | ||||||||
BA [Member] | Service [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 221,922 | 196,377 | 170,880 | ||||||||
BA [Member] | Product [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 87,063 | $ 93,776 | $ 69,732 |
Business Segments and Major C_5
Business Segments and Major Customers - Reconciliation of Segment Profit (loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment profit (loss) | $ 179,572 | $ 111,705 | $ 97,785 |
Unallocated corporate costs | (33,365) | (40,275) | (38,552) |
Interest income | 4,210 | 4,292 | 2,964 |
Interest expense | (130,572) | (122,809) | (111,944) |
Depreciation and amortization | (118,817) | (133,617) | (145,490) |
Transition to airline-directed model | 21,551 | 0 | |
Amortization of deferred airborne lease incentives | 28,551 | 31,650 | 41,816 |
Amortization of STC costs | (2,706) | (1,023) | 0 |
Stock-based compensation expense | 16,511 | 16,912 | 19,821 |
Loss on extinguishment of debt | (57,962) | (19,653) | |
Other income (expense) | 2,602 | (233) | (750) |
Loss before income taxes | (144,998) | (165,324) | (173,992) |
CA-NA [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment profit (loss) | 97,920 | 62,286 | 100,754 |
CA-ROW [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment profit (loss) | (62,314) | (90,779) | (102,482) |
BA [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Segment profit (loss) | $ 143,966 | $ 140,198 | $ 99,513 |
Business Segments and Major C_6
Business Segments and Major Customers - Reconciliation of Segment Profit (loss) (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Stock-based compensation expense | $ 16,511 | $ 16,912 | $ 19,821 |
Unallocated Corporate Costs [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Stock-based compensation expense | $ 6,100 | $ 5,900 | $ 7,300 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)ClassOfCommonStockshares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Schedule Of Share Based Compensation Arrangement [Line Items] | |||
Number of share-based employee compensation plans | ClassOfCommonStock | 3 | ||
Restricted Stock Units And Deferred Stock Units [Member] | |||
Schedule Of Share Based Compensation Arrangement [Line Items] | |||
DSU settlement period | 90 days | ||
Total unrecognized compensation costs related to unvested stock options | $ | $ 13 | ||
Weighted average period related to unvested stock options | 1 year 10 months 24 days | ||
Total grant date fair value of stock options vested | $ | $ 7 | ||
Restricted Stock [Member] | |||
Schedule Of Share Based Compensation Arrangement [Line Items] | |||
Total unrecognized compensation costs related to unvested stock options | $ | $ 0.3 | ||
Weighted average period related to unvested stock options | 1 year 1 month 6 days | ||
Stock Plan 2010, 2013 and 2016 [Member] | |||
Schedule Of Share Based Compensation Arrangement [Line Items] | |||
Common stock, shares reserved for issuance | shares | 27,906,570 | ||
Shares available for grant | shares | 5,097,835 | ||
Contractual life of granted options | 10 years | ||
Options vesting period | 4 years | ||
Stock Plan 2010, 2013 and 2016 [Member] | Stock options [Member] | |||
Schedule Of Share Based Compensation Arrangement [Line Items] | |||
Total unrecognized compensation costs related to unvested stock options | $ | $ 9 | ||
Weighted average period related to unvested stock options | 3 years 9 months 18 days | ||
Total grant date fair value of stock options vested | $ | $ 8 | $ 9 | $ 10 |
Stock Plan 2010, 2013 and 2016 [Member] | Option 2 [Member] | |||
Schedule Of Share Based Compensation Arrangement [Line Items] | |||
Options vesting percentage | 25.00% | ||
Options vesting period | 4 years | ||
Stock Plan 2010, 2013 and 2016 [Member] | Option 1 [Member] | |||
Schedule Of Share Based Compensation Arrangement [Line Items] | |||
Options vesting percentage | 20.00% | ||
Stock Plan 2010, 2013 and 2016 [Member] | Director [Member] | Restricted Stock Units And Deferred Stock Units [Member] | |||
Schedule Of Share Based Compensation Arrangement [Line Items] | |||
2013 Omnibus Plan settlement, Description | DSUs will be settled in shares of our common stock 90 days after the director ceases to serve as a director. | ||
Employee Stock Purchase Plan [Member] | |||
Schedule Of Share Based Compensation Arrangement [Line Items] | |||
Common stock, shares reserved for issuance | shares | 1,200,000 | ||
Shares available for grant | shares | 178,349 | ||
Common stock, shares issued under ESPP | shares | 304,831 | ||
Employee Stock Purchase Plan [Member] | Maximum [Member] | |||
Schedule Of Share Based Compensation Arrangement [Line Items] | |||
Purchase Price of Common Stock, Percent | 15.00% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 16,511 | $ 16,912 | $ 19,821 |
Cost of Service Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 1,615 | 1,659 | 1,748 |
Cost of Equipment Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 275 | 210 | 185 |
Engineering, Design and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 2,999 | 3,347 | 3,656 |
Sales and Marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 3,377 | 4,267 | 4,751 |
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 8,245 | $ 7,429 | $ 9,481 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Options Activity (Detail) - Stock options [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Stock Option Activity [Line Items] | ||
Options Outstanding, Beginning Balance | 10,714,158,000 | |
Number of Options, Granted | 1,525,880,000 | |
Number of Options, Exercised | (3,338,000) | |
Number of Options, Forfeited | (555,605,000) | |
Number of Options, Expired | (606,591,000) | |
Options Outstanding, Ending Balance | 11,074,504,000 | 10,714,158,000 |
Options Exercisable, Ending Balance | 7,393,469,000 | |
Weighted Average Exercise Price Per Share, Outstanding Beginning Balance | $ 12,810 | |
Weighted Average Exercise Price Per Share, Granted | 4,690 | |
Weighted Average Exercise Price Per Share, Exercised | 5,010 | |
Weighted Average Exercise Price Per Share, Forfeited | 9,450 | |
Weighted Average Exercise Price Per Share, Expired | 15,780 | |
Weighted Average Exercise Price Per Share, Outstanding Ending Balance | 11,700 | $ 12,810 |
Weighted Average Exercise Price Per Share, Exercisable Ending Balance | $ 13,340 | |
Weighted Average Remaining Contractual Life, Outstanding | 5 years 3 months | 6 years 3 months |
Weighted Average Remaining Contractual Life, Exercisable Ending Balance | 3 years 9 months 25 days | |
Aggregate Intrinsic Value, Outstanding | $ 3,050,000 | $ 0 |
Aggregate Intrinsic Value, Exercisable Ending Balance | $ 780,000 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Weighted Average Assumptions Used and Weighted Average Grant Date Fair Value of Stock Options (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Approximate risk-free interest rate | 2.30% | 2.70% | 2.30% |
Average expected life (years) | 6 years 7 days | 6 years 10 days | 6 years 1 month 20 days |
Volatility | 60.50% | 49.20% | 45.30% |
Weighted average grant date fair value of stock options granted | $ 2.69 | $ 4.42 | $ 5.59 |
Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Weighted average grant date fair value of stock options granted | $ 4.71 | $ 8.97 | $ 11.97 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summarizes the Activities for Unvested RSUs and DSUs (Detail) - Restricted Stock Units And Deferred Stock Units [Member] | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Underlying Shares, Unvested - Beginning balance | shares | 3,223,980 |
Number of Underlying Shares, Granted | shares | 2,219,248 |
Number of Underlying Shares, Vested | shares | (692,693) |
Number of Underlying Shares, Forfeited/canceled | shares | (567,303) |
Number of Underlying Shares, Unvested - Ending balance | shares | 4,183,232 |
Weighted Average Grant Date Fair Value, Unvested - Beginning balance | $ / shares | $ 6.51 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 4.73 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 9.20 |
Weighted Average Grant Date Fair Value, Forfeited/canceled | $ / shares | 5.94 |
Weighted Average Grant Date Fair Value, Unvested - Ending balance | $ / shares | $ 5.18 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summarizes the Activity for Restricted Stock (Detail) - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Underlying Shares, Unvested - Beginning balance | shares | 118,053 |
Number of Underlying Shares, Granted | shares | 0 |
Number of Underlying Shares, Vested | shares | (66,174) |
Number of Underlying Shares, Forfeited/canceled | shares | (7,675) |
Number of Underlying Shares, Unvested - Ending balance | shares | 44,204 |
Weighted Average Grant Date Fair Value, Unvested - Beginning balance | $ / shares | $ 12.38 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 0 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 11.95 |
Weighted Average Grant Date Fair Value, Forfeited/canceled | $ / shares | 2.99 |
Weighted Average Grant Date Fair Value, Unvested - Ending balance | $ / shares | $ 11.63 |
Employee Retirement and Postr_2
Employee Retirement and Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Contribution | 100.00% | ||
Percentage of employees contribution matched by the company | 4.00% | ||
Employer Contribution | $ 5.2 | $ 5.1 | $ 5.9 |
Income Tax - (Loss) Before Inco
Income Tax - (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (131,220) | $ (128,361) | $ (138,881) |
Foreign | (13,778) | (36,963) | (35,111) |
Loss before income taxes | $ (144,998) | $ (165,324) | $ (173,992) |
Income Tax - Components of (Ben
Income Tax - Components of (Benefit) Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 385 | 467 | 235 |
Foreign | 444 | 61 | 49 |
Current Total | 829 | 528 | 284 |
Deferred: | |||
Federal | 91 | (3,908) | (2,590) |
State | 86 | 87 | 309 |
Deferred Total | 178 | (3,821) | (2,281) |
Total | $ 1,006 | $ (3,293) | $ (1,997) |
Income Tax - Income Tax Compute
Income Tax - Income Tax Computed at Federal Statutory Tax Rates (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 35.00% |
Impact of change in tax rate | (0.10%) | 0.10% | (47.00%) |
Change in valuation allowance | (22.70%) | (24.80%) | 12.50% |
State income taxes-net of federal tax benefit | 4.20% | 4.00% | 2.40% |
Other | (3.10%) | 1.70% | (1.80%) |
Effective tax rate | (0.70%) | 2.00% | 1.10% |
Income Tax - Components of Defe
Income Tax - Components of Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Compensation accruals | $ 5,847 | $ 3,407 |
Stock options | 18,192 | 15,552 |
Inventory | 1,266 | 1,102 |
Warranty reserves | 913 | 1,014 |
Deferred rent | 0 | 9,603 |
Deferred revenue | 43,256 | 37,501 |
Federal net operating loss (NOL) | 141,803 | 143,433 |
State NOL | 24,744 | 24,623 |
Interest carryforward | 48,980 | 22,029 |
UNICAP adjustment | 2,539 | 2,311 |
Finite-lived intangible assets | 6,394 | 7,576 |
Lease liability | 22,355 | 0 |
Other | 9,243 | 11,576 |
Total deferred income tax assets | 325,532 | 279,727 |
Fixed assets | (59,584) | (53,944) |
Indefinite-lived intangible assets | (7,074) | (6,528) |
Convertible Notes discount | (8,706) | (14,612) |
Right-of-use asset | (13,553) | 0 |
Other | (3,768) | (2,272) |
Total deferred income tax liabilities | (92,685) | (77,356) |
Total deferred income tax | 232,847 | 202,371 |
Valuation allowance | (235,187) | (204,533) |
Net deferred income tax liability | $ (2,340) | $ (2,162) |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Tax Credit Carryforward [Line Items] | |||
Utilization of NOL and tax credit carryforwards due to ownership changes | 50.00% | ||
Decrease in net deferred tax liability due to tax reform | $ 3,000,000 | ||
Unrecognized tax benefits | 0 | $ 0 | $ 0 |
Interest or penalties related to uncertain tax positions | 0 | 0 | $ 0 |
Liabilities for interest and potential penalties | 0 | $ 0 | |
Increase (decrease) in unrecognized tax benefits | $ 0 | ||
Interest expense allowable of EBITDA | 30.00% | ||
Interest expense allowable of EBIT | 30.00% | ||
Federal net operating loss [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Net operating loss carryforward | $ 579,000,000 | ||
State NOL [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Net operating loss carryforward | $ 430,000,000 |
Leases - summary of our lease e
Leases - summary of our lease expense (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Operating lease cost | $ 19,437 |
Finance lease cost | |
Amortization of leased assets | 666 |
Interest on lease liabilities | 57 |
Total lease cost | $ 20,160 |
Leases - Other information rega
Leases - Other information regarding our leases (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in measurement of lease liabilities: | |
Operating cash flows used in operating leases | $ 23,202 |
Operating cash flows used in financing leases | 57 |
Financing cash flows used in financing leases | 713 |
Non-cash items: | |
Operating leases obtained | 15,588 |
Modifications to operating leases | (20,027) |
Finance leases obtained | $ 1,326 |
Weighted average remaining lease term | |
Operating leases | 8 years |
Financing leases | 3 years |
Weighted average discount rate | |
Operating leases | 9.44% |
Financing leases | 8.28% |
Leases - Annual Future Minimum
Leases - Annual Future Minimum Obligations for Operating Leases Other than Arrangements with Commercial Airline Partners (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 19,930 |
2021 | 18,760 |
2022 | 17,145 |
2023 | 13,246 |
2024 | 9,571 |
Thereafter | 53,913 |
Total future minimum lease payments | 132,565 |
Less: Amount representing interest | (42,516) |
Present value of net minimum lease payments | 90,049 |
Accrued liabilities | 12,241 |
Non-current operating lease liabilities | 77,808 |
Total lease liabilities | 90,049 |
Financing Leases | |
2020 | 761 |
2021 | 555 |
2022 | 473 |
Total future minimum lease payments | 1,789 |
Less: Amount representing interest | (157) |
Present value of net minimum lease payments | 1,632 |
Accrued liabilities | 620 |
Other non-current liabilities | 1,012 |
Total lease liabilities | $ 1,632 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Line Items] | |||
Amortization of deferred airborne lease incentives | $ 28,551 | $ 31,650 | $ 41,816 |
Deferred airborne lease incentives included in current liabilities | 26,582 | 24,145 | |
Deferred airborne lease incentives included in non-current liabilities | 135,399 | 129,086 | |
Revenue share expense, net of amortization of deferred airborne lease incentives | 25,100 | $ 24,500 | $ 30,500 |
Present value of net minimum lease payments not yet commences | $ 6,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Loss Contingencies [Line Items] | |
2019 (July 1 through December 31) | $ 141,300,000 |
2020 | 129,700,000 |
2021 | 109,800,000 |
2022 | 90,600,000 |
2023 | 85,400,000 |
Thereafter | 289,000,000 |
Potential losses accrued | $ 0 |
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 |
Quarterly Data (Unaudited) - Su
Quarterly Data (Unaudited) - Summarized Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 221,310 | $ 201,182 | $ 213,685 | $ 199,549 | $ 217,224 | $ 217,257 | $ 227,458 | $ 231,825 | $ 835,726 | $ 893,764 | $ 699,090 |
Operating income (loss) | 8,392 | 7,218 | 9,666 | 11,448 | (9,691) | (7,610) | (7,449) | (2,171) | 36,724 | (26,921) | (64,262) |
Net loss | (22,351) | (22,891) | (83,963) | (16,799) | (59,688) | (37,717) | (37,207) | (27,419) | (146,004) | (162,031) | (171,995) |
Net loss attributable to common stock | $ (22,351) | $ (22,891) | $ (83,963) | $ (16,799) | $ (59,688) | $ (37,717) | $ (37,207) | $ (27,419) | $ (146,004) | $ (162,031) | $ (171,995) |
Net loss attributable to common stock per share—basic and diluted | $ (280) | $ (280) | $ (1,040) | $ (210) | $ (740) | $ (470) | $ (470) | $ (340) | $ (1.81) | $ (2.02) | $ (2.17) |
Weighted average number of shares—basic and diluted | 80,997 | 80,908 | 80,702 | 80,446 | 80,303 | 80,196 | 79,783 | 79,696 | 80,766 | 80,038 | 79,407 |
Condensed Financial Informati_3
Condensed Financial Information of Registrant - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||||
Cash and cash equivalents | $ 170,016 | $ 184,155 | $ 196,356 | |
Short-term investments | 39,323 | |||
Prepaid expenses and other current assets | 36,305 | 34,695 | 20,310 | |
Other non-current assets | 89,672 | 84,212 | 67,107 | |
Total assets | 1,214,700 | 1,265,096 | ||
Liabilities and stockholders' deficit: | ||||
Total current liabilities | 252,642 | 299,687 | ||
Long-term debt | 1,101,248 | 1,024,893 | ||
Other non-current liabilities | 46,493 | 80,191 | 134,655 | |
Total liabilities | 1,613,590 | 1,533,857 | ||
Total stockholders' deficit | (398,890) | (268,761) | (191,564) | $ (40,393) |
Total liabilities and stockholders' deficit | 1,214,700 | 1,265,096 | ||
Parent Company [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 118,323 | 161,113 | $ 9,734 | |
Short-term investments | 39,323 | |||
Prepaid expenses and other current assets | 164 | 738 | ||
Other non-current assets | 2,599 | 101 | ||
Total assets | 121,086 | 201,275 | ||
Liabilities and stockholders' deficit: | ||||
Total current liabilities | 2,200 | 3,998 | ||
Long-term debt | 199,849 | 332,211 | ||
Other non-current liabilities | 2,340 | 2,162 | ||
Investments and payables with subsidiaries | 315,587 | 131,665 | ||
Total liabilities | 519,976 | 470,036 | ||
Total stockholders' deficit | (398,890) | (268,761) | ||
Total liabilities and stockholders' deficit | $ 121,086 | $ 201,275 |
Condensed Financial Informati_4
Condensed Financial Information of Registrant - Condensed Statements of Operations and Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Interest income | $ (4,210) | $ (4,292) | $ (2,964) | ||||||||
Interest expense | 130,572 | 122,809 | 111,944 | ||||||||
Loss on extinguishment of debt | 57,962 | 19,653 | |||||||||
Other | 2,602 | (233) | (750) | ||||||||
Total other (income) expense | (181,722) | (138,403) | (109,730) | ||||||||
Income (loss) before income taxes | (144,998) | (165,324) | (173,992) | ||||||||
Income tax provision (benefit) | 1,006 | (3,293) | (1,997) | ||||||||
Net loss | $ (22,351) | $ (22,891) | $ (83,963) | $ (16,799) | $ (59,688) | $ (37,717) | $ (37,207) | $ (27,419) | (146,004) | (162,031) | (171,995) |
Comprehensive loss | (144,706) | (164,652) | (170,765) | ||||||||
Parent Company [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Interest income | (3,083) | (3,123) | (1,681) | ||||||||
Interest expense | 33,807 | 36,984 | 34,577 | ||||||||
Loss on extinguishment of debt | 9,163 | 19,653 | |||||||||
Other | 3 | ||||||||||
Total other (income) expense | 39,890 | 53,514 | 32,896 | ||||||||
Income (loss) before income taxes | (39,890) | (53,514) | (32,896) | ||||||||
Income tax provision (benefit) | 563 | (3,354) | (2,045) | ||||||||
Equity losses of subsidiaries | 105,551 | 111,871 | 141,144 | ||||||||
Net loss | (146,004) | (162,031) | (171,995) | ||||||||
Comprehensive loss | $ (146,004) | $ (162,031) | $ (171,995) |
Condensed Financial Informati_5
Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Net loss | $ (22,351) | $ (22,891) | $ (83,963) | $ (16,799) | $ (59,688) | $ (37,717) | $ (37,207) | $ (27,419) | $ (146,004) | $ (162,031) | $ (171,995) |
Accretion of debt discount | 15,729 | 21,105 | 19,520 | ||||||||
Amortization of deferred financing costs | 5,260 | 4,280 | 3,743 | ||||||||
Loss on extinguishment of debt | 57,962 | 19,653 | |||||||||
Deferred income taxes | 178 | (3,821) | (2,281) | ||||||||
Acquisition of short-term investments | (39,323) | (317,418) | |||||||||
Redemption of short-term investments | 39,323 | 212,792 | 443,103 | ||||||||
Financing activities: | |||||||||||
Proceeds from issuance of convertible notes | 237,750 | ||||||||||
Repurchase of convertible notes | (159,502) | (200,438) | |||||||||
Payment of debt issuance costs | (22,976) | (8,054) | (3,630) | ||||||||
Cash, cash equivalents and restricted cash at beginning of period | 191,116 | 203,729 | 191,116 | 203,729 | 125,189 | ||||||
Cash, cash equivalents and restricted cash at end of period | 177,675 | 191,116 | 177,675 | 191,116 | 203,729 | ||||||
Less: current restricted cash | 560 | 1,535 | 560 | 1,535 | 500 | ||||||
Less: non-current restricted cash | 7,099 | 5,426 | 7,099 | 5,426 | 6,873 | ||||||
Cash, cash equivalents and restricted cash at end of period | 170,016 | 184,155 | 170,016 | 184,155 | 196,356 | ||||||
Parent Company [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Net loss | (146,004) | (162,031) | (171,995) | ||||||||
Accretion of debt discount | 15,276 | 21,105 | 19,520 | ||||||||
Amortization of deferred financing costs | 1,906 | 1,648 | 1,484 | ||||||||
Loss on extinguishment of debt | 9,163 | 19,653 | |||||||||
Subsidiary equity losses | 105,551 | 111,871 | 141,144 | ||||||||
Deferred income taxes | 178 | (3,821) | (2,281) | ||||||||
Other operating activities | (1,224) | (674) | (609) | ||||||||
Net cash used in operating activities | (15,154) | (12,249) | (12,737) | ||||||||
Acquisition of short-term investments | (39,323) | (192,893) | |||||||||
Redemption of short-term investments | 39,323 | 192,893 | 213,905 | ||||||||
Investments and advances with subsidiaries | 94,716 | (19,595) | 601 | ||||||||
Net cash provided by (used in) investing activities | 134,039 | 133,975 | 21,613 | ||||||||
Financing activities: | |||||||||||
Proceeds from issuance of convertible notes | 237,750 | ||||||||||
Repurchase of convertible notes | (159,502) | (200,438) | |||||||||
Payment of debt issuance costs | (8,054) | ||||||||||
Other financing activities | 325 | 396 | (227) | ||||||||
Net cash provided by (used in) financing activities | (159,177) | 29,654 | (227) | ||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | (40,292) | 151,380 | 8,649 | ||||||||
Cash, cash equivalents and restricted cash at beginning of period | $ 161,214 | $ 9,834 | 161,214 | 9,834 | 1,185 | ||||||
Cash, cash equivalents and restricted cash at end of period | 120,922 | 161,214 | 120,922 | 161,214 | 9,834 | ||||||
Less: current restricted cash | |||||||||||
Less: non-current restricted cash | 2,599 | 101 | 2,599 | 101 | 100 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ 118,323 | $ 161,113 | $ 118,323 | $ 161,113 | $ 9,734 |