Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | May 07, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Entity Interactive Data Current | Yes | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Gogo Inc. | |
Entity Central Index Key | 0001537054 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | 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 | |
Entity Common Stock, Shares Outstanding | 83,770,421 | |
Trading Symbol | GOGO | |
Security Exchange Name | NASDAQ | |
Entity Address, Country | IL | |
Document Quarterly Report | true | |
Document Transition Report | false |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 214,229 | $ 170,016 |
Accounts receivable, net of allowances of $3,970 and $686, respectively | 92,619 | 101,360 |
Inventories | 123,179 | 117,144 |
Prepaid expenses and other current assets, net of allowances of $997 and $0, respectively | 36,462 | 36,305 |
Total current assets | 466,489 | 424,825 |
Non-current assets: | ||
Property and equipment, net | 505,584 | 560,318 |
Goodwill and intangible assets, net | 75,083 | 76,499 |
Operating lease right-of-use assets | 58,085 | 63,386 |
Other non-current assets, net of allowances of $6,111 and $0, respectively | 86,229 | 89,672 |
Total non-current assets | 724,981 | 789,875 |
Total assets | 1,191,470 | 1,214,700 |
Current liabilities: | ||
Accounts payable | 35,995 | 17,160 |
Accrued liabilities | 176,238 | 174,111 |
Deferred revenue | 28,472 | 34,789 |
Deferred airborne lease incentives | 30,718 | 26,582 |
Total current liabilities | 271,423 | 252,642 |
Non-current liabilities: | ||
Long-term debt | 1,124,713 | 1,101,248 |
Deferred airborne lease incentives | 145,172 | 135,399 |
Non-current operating lease liabilities | 82,975 | 77,808 |
Other non-current liabilities | 53,793 | 46,493 |
Total non-current liabilities | 1,406,653 | 1,360,948 |
Total liabilities | 1,678,076 | 1,613,590 |
Commitments and contingencies (Note 13) | ||
Stockholders' deficit | ||
Common stock, par value $0.0001 per share; 500,000,000 shares authorized at March 31, 2020 and December 31, 2019; 83,825,592 and 88,292,821 shares issued at March 31, 2020 and December 31, 2019, respectively; and 83,773,648 and 88,240,877 shares outstanding at March 31, 2020 and December 31, 2019, respectively | 8 | 9 |
Additional paid-in-capital | 1,081,955 | 979,499 |
Accumulated other comprehensive loss | (5,127) | (2,256) |
Treasury stock, at cost | (98,857) | |
Accumulated deficit | (1,464,585) | (1,376,142) |
Total stockholders' deficit | (486,606) | (398,890) |
Total liabilities and stockholders' deficit | $ 1,191,470 | $ 1,214,700 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowances on accounts receivable | $ 3,970 | $ 686 |
Prepaid expenses and other current assets | 997 | 0 |
Other non-current assets, net of allowances | $ 6,111 | $ 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 83,825,592 | 88,292,821 |
Common stock, shares outstanding | 83,773,648 | 88,240,877 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue: | ||
Total revenue | $ 184,475 | $ 199,549 |
Operating expenses: | ||
Cost of service revenue (exclusive of items shown below) | 70,755 | 68,121 |
Cost of equipment revenue (exclusive of items shown below) | 26,040 | 29,731 |
Engineering, design and development | 22,863 | 24,728 |
Sales and marketing | 9,652 | 12,318 |
General and administrative | 27,166 | 22,454 |
Impairment of long-lived assets | 46,389 | |
Depreciation and amortization | 32,670 | 30,749 |
Total operating expenses | 235,535 | 188,101 |
Operating income (loss) | (51,060) | 11,448 |
Other (income) expense: | ||
Interest income | (606) | (1,149) |
Interest expense | 31,174 | 32,554 |
Other (income) expense | 2,993 | (3,365) |
Total other expense | 33,561 | 28,040 |
Loss before income taxes | (84,621) | (16,592) |
Income tax provision | 157 | 207 |
Net loss | $ (84,778) | $ (16,799) |
Net loss attributable to common stock per share—basic and diluted | $ (1.04) | $ (0.21) |
Weighted average number of shares—basic and diluted | 81,205 | 80,446 |
Service [Member] | ||
Revenue: | ||
Total revenue | $ 150,782 | $ 165,012 |
Product [Member] | ||
Revenue: | ||
Total revenue | $ 33,693 | $ 34,537 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (84,778) | $ (16,799) |
Currency translation adjustments, net of tax | (2,871) | 410 |
Comprehensive loss | $ (87,649) | $ (16,389) |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities: | ||
Net loss | $ (84,778) | $ (16,799) |
Adjustments to reconcile net loss to cash provided by (used in) operating activities: | ||
Depreciation and amortization | 32,670 | 30,749 |
Loss on asset disposals, abandonments and write-downs | 1,098 | 1,241 |
Provision for expected credit losses | 6,764 | 84 |
Impairment of long-lived assets | 46,389 | |
Impairment of cost-basis investment | 3,000 | |
Deferred income taxes | 45 | 44 |
Stock-based compensation expense | 3,995 | 4,327 |
Amortization of deferred financing costs | 1,419 | 1,249 |
Accretion and amortization of debt discount and premium | 3,326 | 4,774 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 5,085 | 10,551 |
Inventories | (6,035) | (1,118) |
Prepaid expenses and other current assets | 1,038 | 3,015 |
Contract assets | (10,622) | (6,175) |
Accounts payable | 16,399 | 2,843 |
Accrued liabilities | (18,291) | (19,381) |
Deferred airborne lease incentives | 2,345 | (3,923) |
Deferred revenue | 1,378 | 2,257 |
Accrued interest | 26,413 | (19,514) |
Warranty reserves | (526) | (588) |
Other non-current assets and liabilities | 6,915 | 208 |
Net cash provided by (used in) operating activities | 38,027 | (6,156) |
Investing activities: | ||
Purchases of property and equipment | (13,202) | (23,154) |
Acquisition of intangible assets—capitalized software | (2,108) | (4,557) |
Redemptions of short-term investments | 39,323 | |
Other, net | 89 | 95 |
Net cash provided by (used in) investing activities | (15,221) | 11,707 |
Financing activities: | ||
Proceeds from credit facility draw | 22,000 | |
Repurchase of convertible notes | (2,498) | |
Payment of debt issuance costs | (557) | |
Payments on financing leases | (247) | (125) |
Stock-based compensation activity | (397) | (58) |
Net cash provided by (used in) financing activities | 18,858 | (740) |
Effect of exchange rate changes on cash | 51 | (276) |
Increase in cash, cash equivalents and restricted cash | 41,715 | 4,535 |
Cash, cash equivalents and restricted cash at beginning of period | 177,675 | 191,116 |
Cash, cash equivalents and restricted cash at end of period | 219,390 | 195,651 |
Less: current restricted cash | 560 | 1,535 |
Less: non-current restricted cash | 4,601 | 5,426 |
Cash and cash equivalents at end of period | 214,229 | 188,690 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | 66 | 46,163 |
Cash paid for taxes | 1 | 41 |
Noncash Investing and Financing Activities: | ||
Purchases of property and equipment in current liabilities | 6,411 | 19,951 |
Purchases of property and equipment paid by commercial airlines | $ 5,580 | $ 5,016 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] |
Beginning Balance at Dec. 31, 2018 | $ (268,761) | $ 9 | $ 963,458 | $ (3,554) | $ (1,228,674) | |
Beginning Balance, Shares at Dec. 31, 2018 | 87,560,694 | |||||
Net loss | (16,799) | (16,799) | ||||
Currency translation adjustments, net of tax | 410 | 410 | ||||
Stock-based compensation expense | 4,327 | 4,327 | ||||
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares | 161,667 | |||||
Tax withholding related to vesting of restricted stock units | (351) | (351) | ||||
Issuance of common stock in connection with employee stock purchase plan | 293 | 293 | ||||
Issuance of common stock in connection with employee stock purchase plan, Shares | 75,253 | |||||
Impact of the adoption of new accounting standards | (3,093) | (3,093) | ||||
Ending Balance at Mar. 31, 2019 | (283,974) | $ 9 | 967,727 | (3,144) | (1,248,566) | |
Ending Balance, Shares at Mar. 31, 2019 | 87,797,614 | |||||
Beginning Balance at Dec. 31, 2019 | (398,890) | $ 9 | 979,499 | (2,256) | (1,376,142) | |
Beginning Balance, Shares at Dec. 31, 2019 | 88,240,877 | |||||
Net loss | (84,778) | (84,778) | ||||
Currency translation adjustments, net of tax | (2,871) | (2,871) | ||||
Stock-based compensation expense | 3,995 | 3,995 | ||||
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares | 522,490 | |||||
Tax withholding related to vesting of restricted stock units | (682) | (682) | ||||
Issuance of common stock in connection with employee stock purchase plan | 285 | 285 | ||||
Issuance of common stock in connection with employee stock purchase plan, Shares | 87,681 | |||||
Settlement of prepaid forward shares [value] | $ (1) | 98,858 | $ (98,857) | |||
Settlement of prepaid forward shares [shares] | (5,077,400) | 5,077,400 | ||||
Impact of the adoption of new accounting standards | (3,665) | (3,665) | ||||
Ending Balance at Mar. 31, 2020 | $ (486,606) | $ 8 | $ 1,081,955 | $ (5,127) | $ (1,464,585) | $ (98,857) |
Ending Balance, Shares at Mar. 31, 2020 | 83,773,648 | 5,077,400 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The Business - in-flight “CA-NA,” “CA-ROW,” CA-NA CA-ROW Wi-Fi-enabled in-flight Wi-Fi CA-NA CA-ROW CA-ROW in-flight in-flight in-flight in-flight Basis of Presentation - S-X 10-K 10-K”). The results of operations and cash flows for the three month period ended March 31, 2020, including the impact of COVID-19, We have one class of common stock outstanding as of March 31, 2020 and December 31, 2019. During March 2020, approximately 5.1 million shares of common stock were delivered to us in connection with the Forward Transactions (as defined and described in Note 10 Paid-In Reclassifications – Use of Estimates - |
Impact of COVID-19 Pandemic
Impact of COVID-19 Pandemic | 3 Months Ended |
Mar. 31, 2020 | |
Impact Of Coronavirus Global Pandemic [Abstract] | |
Impact of COVID-19 Pandemic | 2. Impact of COVID-19 In December 2019, a novel strain of coronavirus (“COVID-19”) COVID-19 COVID-19 CA-NA CA-ROW. service in one-month In response to the COVID-19 • Employee and customer safety • Personnel actions Additionally, we furloughed approximately 54% of our workforce and reduced compensation for most other employees, starting May 4, 2020. The furloughs impact approximately 600 employees across the entire company. The time and duration of the furloughs will vary based on workload in individual departments. Salary reductions begin at 30% for the Chief Executive Officer, then 20% for the executive leadership team and reducing downward by staff level from there. In addition, the compensation for the members of our Board of Directors has been reduced by 30%. Certain types of employees, such as hourly workers, have not had their compensation reduced. • Expense management • Renegotiating terms with suppliers, including satellite capacity providers; • Deferring purchases of capital equipment; • Delaying aircraft equipment installations; • Reducing marketing, travel and other non-essential • Renegotiating terms with airline partners. • Financing • Government assistance Aid, assistance. Additionally, receipt of funds may require the consent of a majority of the holders of the 2024 Senior Secured Notes and We expect COVID-19 COVID-19 COVID-19 Impairment assessments - COVID-19 COVID-19 Credit Losses COVID-19 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements Accounting standards adopted: On January 1, 2020, we adopted ASU 2016- 1 Financial Instruments-Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments 2016-13”), The cumulative effect adjustment from using the modified retrospective approach for the adoption of ASC 326 impacted our unaudited condensed consolidated balance sheet as of January 1, 2020 by the recognition of allowance for credit losses as summarized below: Balance at Impact of Balances Assets Accounts receivable 101,360 (1,386 ) 99,974 Prepaid and other current assets 36,305 (356 ) 35,949 Other non-current 89,672 (1,923 ) 87,749 Equity Accumulated deficit (1,376,142 ) (3,665 ) (1,379,807 ) See Note 9, “Composition of Certain Reserves and Allowances,” for additional information. On January 1, 2020, we adopted ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use 350-40): 2018-15”), 350-40 On January 1, 2020, we adopted ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement 2018-13”), New pronouncements: In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting 2020-04”), consolidate d statements |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 4. Revenue Recognition Arrangements with commercial airlines For CA-NA CA-ROW, Remaining performance obligations As of March 31, 2020, the aggregate amount of the transaction price in our contracts allocated to the remaining unsatisfied performance obligations was approximately $585 million, most of which relate to our commercial aviation contracts. Approximately $109 million represents future equipment revenue that is expected to be recognized within the next one to three years. The remaining $476 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 Three Months Ended March 31, 2020 CA-NA CA-ROW BA Total Service revenue Connectivity $ 68,869 $ 18,029 $ 56,975 $ 143,873 Entertainment, CAS and other 4,959 1,199 751 6,909 Total service revenue $ 73,828 $ 19,228 $ 57,726 $ 150,782 Equipment revenue ATG $ 4,396 $ — $ 9,624 $ 14,020 Satellite 1,832 14,184 3,374 19,390 Other 80 — 203 283 Total equipment revenue $ 6,308 $ 14,184 $ 13,201 $ 33,693 Customer type Airline passenger and aircraft owner/operator $ 43,702 $ 6,517 $ 57,726 $ 107,945 Airline, OEM and aftermarket dealer 26,258 25,399 13,201 64,858 Third party 10,176 1,496 — 11,672 Total revenue $ 80,136 $ 33,412 $ 70,927 $ 184,475 For the Three Months Ended March 31, 2019 CA-NA CA-ROW BA Total Service revenue Connectivity $ 79,818 $ 18,854 $ 52,685 $ 151,357 Entertainment, CAS and other 12,209 918 528 13,655 Total service revenue $ 92,027 $ 19,772 $ 53,213 $ 165,012 Equipment revenue ATG $ 2,872 $ — $ 11,335 $ 14,207 Satellite 630 13,159 5,235 19,024 Other 540 — 766 1,306 Total equipment revenue $ 4,042 $ 13,159 $ 17,336 $ 34,537 Customer type Airline passenger and aircraft owner/operator $ 54,349 $ 5,851 $ 53,213 $ 113,413 Airline, OEM and aftermarket dealer 30,913 25,491 17,336 73,740 Third party 10,807 1,589 — 12,396 Total revenue $ 96,069 $ 32,931 $ 70,549 $ 199,549 Contract balances Our current and non-current Our current and non-current Capitalized STC balances for our airline-directed contracts were $16.5 million and $17.5 million as of March 31, 2020 and December 31, 2019, 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 unaudited condensed consolidated statements of operations. Total amortization expense was $0.8 million and $0.3 million, respectively, for the three month periods ended March 31, 2020 and 2019. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 5. Net Loss Per Share Basic and diluted net loss per share have been calculated using the weighted average number of common shares outstanding for the period. The shares of common stock effectively repurchased in connection with the Forward Transactions (as defined and described in Note 10 two-class As a result of the net loss for the three month periods ended March 31, 2020 and 2019, all of the outstanding shares of common stock underlying stock options, deferred stock units and restricted stock units were excluded from the computation of diluted shares outstanding because they were anti-dilutive. The following table sets forth the computation of basic and diluted earnings per share for the three month periods ended March 31, 2020 and 2019; however, because of the undistributed losses, the shares of common stock associated with the Forward Transactions are excluded from the computation of basic earnings per share in 2020 and 2019 as undistributed losses are not allocated to these shares ( in thousands, except per share amounts For the Three Months Ended March 31, 2020 2019 Net loss $ (84,778 ) $ (16,799 ) Less: Participation rights of the Forward Transactions — — Undistributed losses $ (84,778 ) $ (16,799 ) Weighted-average common shares outstanding-basic and diluted 81,205 80,446 Net loss attributable to common stock per share-basic and diluted $ (1.04 ) $ (0.21 ) |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | 6. 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. Inventories as of March 31, 2020 and December 31, 2019 were as follows ( in thousands March 31, December 31, 2020 2019 Work-in-process $ 23,585 $ 23,141 Finished goods 99,594 94,003 Total inventory $ 123,179 $ 117,144 |
Composition of Certain Balance
Composition of Certain Balance Sheet Accounts | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Composition of Certain Balance Sheet Accounts | 7. Composition of Certain Balance Sheet Accounts Prepaid expenses and other current assets as of March 31, 2020 and December 31, 2019 were as follows ( in thousands March 31, December 31, 2020 2019 Contract assets, net of allowances of $997 and $0, respectively (1) $ 14,319 $ 12,364 Prepaid satellite services 7,970 11,299 Restricted cash 560 560 Other 13,613 12,082 Total prepaid expenses and other current assets $ 36,462 $ 36,305 (1) Allowance for contract assets as of March 31, 2020 is due to the adoption of ASC 326. See Note 9, “Composition of Certain Reserves and Allowances,” for additional information. Property and equipment as of March 31, 2020 and December 31, 2019 were as follows ( in thousands March 31, December 31, 2020 2019 Office equipment, furniture, fixtures and other $ 56,482 $ 56,205 Leasehold improvements 44,403 44,389 Airborne equipment (1) 709,980 737,593 Network equipment 225,169 229,451 1,036,034 1,067,638 Accumulated depreciation (530,450 ) (507,320 ) Total property and equipment, net $ 505,584 $ 560,318 (1) Decrease in A Other non-current in thousands March 31, December 31, 2020 2019 Contract assets, net of allowances of $6,111 and $0, respectively (1) $ 56,516 $ 51,829 Deferred STC costs 16,475 17,453 Restricted cash 4,601 7,099 Other (2) 8,637 13,291 Total other non-current $ 86,229 $ 89,672 (1) Allowances for contract assets as of March 31, 2020 is due to the adoption of ASC 326. See Note 9, “Composition of Certain Reserves and Allowances,” for additional information. (2) Decrease due in part to the $3.0 million impairment of a cost-basis investment which is included in Other (income) expense within our unaudited condensed consolidated statements of operations for the three month period ended March 31, 2020. We review our long-lived assets, including property and equipment, right-of-use non-current In light of the COVID-19 right-of-use We are continuously monitoring the COVID-19 Accrued liabilities as of March 31, 2020 and December 31, 2019 were as follows ( in thousands March 31, December 31, 2020 2019 Airline related accrued liabilities $ 40,882 $ 43,592 Accrued interest 43,461 17,048 Employee compensation and benefits 15,136 29,954 Accrued satellite network costs 19,438 13,843 Warranty reserve 12,639 13,165 Operating leases 9,484 12,241 Airborne equipment and installation costs 4,293 11,466 Other 30,905 32,802 Total accrued liabilities $ 176,238 $ 174,111 Other non-current in thousands March 31, December 31, 2020 2019 Deferred revenue $ 29,433 $ 21,889 Asset retirement obligations 11,773 11,560 Deferred tax liabilities 2,384 2,340 Other 10,203 10,704 Total other non-current $ 53,793 $ 46,493 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 8. Intangible Assets Our intangible assets are comprised of both indefinite-lived and finite-lived intangible assets. Intangible assets with indefinite lives and goodwill are not amortized; rather, they are reviewed for impairment at least annually or whenever events or circumstances indicate the carrying value of the asset may not be recoverable. We perform our annual impairment tests of our indefinite-lived intangible assets and goodwill during the fourth quarter of each fiscal year. We also reevaluate the useful life of indefinite-lived intangible assets each reporting period to determine whether events and circumstances continue to support an indefinite useful life. The results of our annual indefinite-lived intangible assets and goodwill impairment assessments in the fourth quarter of 2019 indicated no impairment. As of as a result of COVID-19, and concluded there were As of both March 31, 2020 and December 31, 2019, our goodwill balance, all of which related to our BA segment, was $0.6 million. Our intangible assets, other than goodwill, as of March 31, 2020 and December 31, 2019 were as follows ( in thousands, except for weighted average remaining useful life Weighted Average As of March 31, 2020 As of December 31, 2019 Remaining Gross Net Gross Net Useful Life Carrying Accumulated Carrying Carrying Accumulated Carrying (in years) Amount Amortization Amount Amount Amortization Amount Amortized intangible assets: Software 2.5 $ 180,568 $ (139,943 ) $ 40,625 $ 177,190 $ (135,154 ) $ 42,036 Other intangible assets 7.8 3,000 (1,445 ) 1,555 3,000 (1,440 ) 1,560 Service customer relationships 8,081 (8,081 ) — 8,081 (8,081 ) — OEM and dealer relationships 6,724 (6,724 ) — 6,724 (6,724 ) — Total amortized intangible assets 198,373 (156,193 ) 42,180 194,995 (151,399 ) 43,596 Unamortized intangible assets: FCC Licenses 32,283 — 32,283 32,283 — 32,283 Total intangible assets $ 230,656 $ (156,193 ) $ 74,463 $ 227,278 $ (151,399 ) $ 75,879 Amortization expense was $4.8 million and $5.3 million, respectively, for the three month periods ended March 31, 2020 and 2019. Amortization expense for each of the next five years and thereafter is estimated to be as follows ( in thousands Years ending December 31, Amortization 2020 (period from April 1 to December 31) $ 13,092 2021 $ 14,451 2022 $ 9,670 2023 $ 2,808 2024 $ 547 Thereafter $ 1,612 Actual future amortization expense could differ from the estimated amount as a result of future investments and other factors. |
Composition of Certain Reserves
Composition of Certain Reserves and Allowances | 3 Months Ended |
Mar. 31, 2020 | |
Allowance for Credit Loss [Abstract] | |
Composition of Certain Reserves and Allowances | 9. Composition of Certain Reserves and Allowances Credit Losses non-current COVID-19 Estimates are used to determine the expected loss allowances. Such allowances are based on management’s assessment of anticipated payment, taking into account available historical and current information as well as management’s assessment of potential future developments. We are continuously monitoring our assumptions used to determine our expected credit losses, including the impact of COVID-19, A summary of our allowances for credit losses were in thousands Prepaid Other Accounts and other non-current receivable current assets assets Balance at January 1, 2020 $ 686 $ — $ — Cumulative-effect adjustment of ASC 326 1,386 356 1,923 Current-period provision for expected credit losses (1) 1,935 641 4,188 Write-offs charged against the allowances — — — Other, including dispositions and foreign currency (37 ) — — Balance at March 31, 2020 $ 3,970 $ 997 $ 6,111 (1) The current-period provision for expected credit losses was due primarily to the impact of COVID-19. Warranties — We provide warranties on parts and labor related to our products. Our warranty terms range from two to ten years. Warranty reserves are established for costs that are estimated to be incurred after the sale, delivery and installation of the products under warranty. The warranty reserves are determined based on known product failures, historical experience and other available evidence, and are included in accrued liabilities in our unaudited condensed consolidated balance sheets. Our warranty reserve balance was $12.6 million and $13.2 million, respectively, as of March 31, 2020 and December 31, 2019. |
Long-Term Debt and Other Liabil
Long-Term Debt and Other Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Other Liabilities | 10. Long-Term Debt and Other Liabilities Long-term debt as of March 31, 2020 and December 31, 2019 was as follows ( in thousands March 31, December 31, 2020 2019 2024 Senior Secured Notes $ 921,310 $ 921,137 2022 Convertible Notes 205,020 201,868 ABL Credit Facility 22,000 — 2020 Convertible Notes — 2,498 Total debt 1,148,330 1,125,503 Less deferred financing costs (23,617 ) (24,255 ) Total long-term debt $ 1,124,713 $ 1,101,248 2024 Senior Secured Notes - (the “First Supplemental 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 (as defined below) by $20 million in aggregate principal amount. On March 6, 2020, 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 entered into a second supplemental indenture (together with the Base Indenture and the First Supplemental Indenture, the “2024 Indenture”) to add Gogo International as a guarantor to As of March 31, 2020 and December 31, 2019, the outstanding principal amount of the 2024 Senior Secured Notes was $925.0 million for both dates, the unaccreted debt discount was $3.7 million and $3.9 million, respectively, and the net carrying amount was $921.3 million and $921.1 million, respectively. 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). 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 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 unaudited condensed 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 $0.9 million for the three month period ended March 31, 2020. Amortization expense is included in interest expense in the unaudited condensed consolidated statements of operations. As of March 31, 2020 and December 31, 2019, the balance of unamortized deferred financing costs related to the 2024 Senior Secured Notes was $18.9 million and $19.7 million, respectively, and was included as a reduction to long-term debt in our unaudited condensed consolidated balance sheet. See Note 11, “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 (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 March 31, 2020, 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 March 31, 2020 and December 31, 2019, $22.0 million and zero, was outstanding under the ABL Credit Facility, respectively. 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 March 31, 2020, 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. We paid approximately $0.9 million of origination fees and financing costs related to the issuance of the ABL Credit Facility, which have been accounted for as deferred financing costs. The deferred financing costs on our unaudited condensed consolidated balance sheet are being amortized over the contractual term of the ABL Credit Facility using the effective interest method. Total amortization expense was $0.1 million for the three month period ended March 31, 2020. Amortization expense is included in interest expense in the unaudited condensed consolidated statements of operations. As of March 31, 2020 and December 31, 2019, the balance of unamortized deferred financing costs related to the ABL Credit Facility was $0.7 million and $0.8 million, respectively, and is included as a reduction to long-term debt in our unaudited condensed consolidated balance sheet. See Note 11, “Interest Costs,” for additional information. 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 $0.8 million for the three month period ended March 31, 2019. Amortization expense is included in interest expense in the unaudited condensed consolidated statements of operations. As 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 March 31, 2020 and December 31, 2019, the outstanding principal on the 2022 Convertible Notes was $237.8 million on both dates, the unaccreted debt discount was $32.7 million and $35.9 million, respectively, and the net carrying amount of the liability component was $205.0 million and $201.9 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 shares of common stock 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 three month period ended March 31, 2020 or 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. The 2020 Convertible Notes that were not repurchased prior to maturity, as described below, matured on March 1, 2020. We paid interest on the 2020 Convertible Notes semi-annually in arrears on March 1 and September 1 of each year from September 1, 2015 through March 1, 2020. 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 remaining $2.5 million of outstanding 2020 Convertible Notes matured on March 1, 2020 and we repaid the remaining outstanding aggregate principle amount of the 2020 Convertible Notes, plus accrued and unpaid interest, in order to satisfy our obligations in full and retire the securities. 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 noted above, the 2020 Convertible Notes were no longer outstanding upon maturity on March 1, 2020. As of December 31, 2019, the outstanding principal on the 2020 Convertible Notes and the net carrying amount of the liability component was $2.5 million and the unamortized debt discount was zero. 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. 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 10 Paid-In Restricted Cash - Our restricted cash balances were $5.2 million and $7.7 million, respectively, as of March 31, 2020 and December 31, 2019 and primarily consist of letters of credit. Certain of the letters of credit require us to maintain restricted cash accounts in a similar amount, and are issued for the benefit of the landlords at our current office locations in Chicago, IL, Bensenville, IL and Broomfield, CO. |
Interest Costs
Interest Costs | 3 Months Ended |
Mar. 31, 2020 | |
Text Block [Abstract] | |
Interest Costs | 11. Interest Costs We capitalize a portion of our interest on funds borrowed during the active construction period of major capital projects. Capitalized interest is added to the cost of the underlying assets and amortized over the useful lives of the assets. The following is a summary of our interest costs for the three month periods ended Mach 31, 2020 and 2019 (in thousands) For the Three Months Ended March 31, 2020 2019 Interest costs charged to expense $ 26,429 $ 26,531 Amortization of deferred financing costs 1,419 1,249 Accretion of debt discount 3,326 5,534 Amortization of debt premium — (760 ) Interest expense 31,174 32,554 Interest costs capitalized to property and equipment — 4 Interest costs capitalized to software 89 125 Total interest costs $ 31,263 $ 32,683 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | 12. Leases Operating and Financing Leases — We determine whether a contract contains a lease at contract inception. For leases subsequent to adoption of ASC 842, lease liabilities are calculated using a discount rate based on our incremental borrowing rate at lease commencement. We have operating lease agreements for certain facilities and equipment as well as tower space and base stations. Certain tower space leases have renewal option terms that have been deemed to be reasonably certain to be exercised. These renewal options extend a lease up to 20 years. We recognize operating lease expense on a straight-line basis over the lease term. As of March 31, 2020, there are no significant leases which have not commenced. The following is a summary of our lease expense included in the unaudited condensed consolidated statements of operations (in thousands) For the Three For the Three Months Ended Months Ended March 31, 2020 March 31, 2019 Operating lease cost $ 4,857 $ 4,918 Financing lease cost Amortization of leased assets 91 205 Interest on lease liabilities 26 11 Total lease cost $ 4,974 $ 5,134 Other information regarding our leases is as follows (in thousands, except lease terms and discount rates) For the Three For the Three Months Ended Months Ended March 31, 2020 March 31, 2019 Supplemental cash flow information Cash paid for amounts included in measurement of lease liabilities: Operating cash flows used in operating leases $ 5,700 $ 6,117 Operating cash flows used in financing leases 26 11 Financing cash flows used in financing leases 247 125 Non-cash Operating leases obtained 7,274 279 Weighted average remaining lease term Operating leases 8 years 9 years Financing leases 2 years 1 year Weighted average discount rate Operating leases 9.4 % 10.3 % Financing leases 8.3 % 8.7 % Annual future minimum lease payments as of March 31, 2020 (in thousands) Operating Financing Years ending December 31, Leases Leases 2020 (period from April 1 to December 31) $ 12,456 $ 529 2021 20,566 530 2022 18,994 451 2023 15,023 — 2024 11,451 — Thereafter 56,550 — Total future minimum lease payments 135,040 1,510 Less: Amount representing interest (42,581 ) (124 ) Present value of net minimum lease payments $ 92,459 $ 1,386 Reported as of March 31, 2020 Accrued liabilities $ 9,484 $ 543 Non-current 82,975 — Other non-current — 843 Total lease liabilities $ 92,459 $ 1,386 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 unaudited condensed consolidated balance sheets, as noted in Note 7 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 | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. 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 - inter partes inter partes Securities Litigation - 10b-5 The amended complaint was dismissed without prejudice, and in December 2019, defendants filed a second amended complaint. In February 2020 we filed a motion to dismiss such second amended complaint and that motion is pending. We believe that the claims are without merit and intend to continue to defend them vigorously. In accordance with Delaware law, we will indemnify the individual named defendants for their defense costs and any damages they incur in connection with the suit. We have filed a claim with the issuer of our Directors’ and Officers’ insurance policy with respect to this suit. No amounts have been accrued for any potential losses under this matter, as we cannot reasonably predict the outcome of the litigation or any potential losses. Derivative Litigation - re sume s |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | 14. 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 and the 2022 Convertible Notes, and, while outstanding, the 2020 Convertible 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, and, while outstanding, the 2020 Convertible 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 March 31, 2020 unaudited condensed consolidated balance sheet, excluding any issuance costs, are the amount that a market participant would be willing to lend at March 31, 2020 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, while outstanding, the 2020 Convertible Notes. The calculated fair value of each of the 2022 Convertible Notes and, while outstanding, the The fair value and carrying value of long-term debt as of March 31, 2020 and December 31, 2019 were as follows (in thousands) March 31, 2020 December 31, 2019 Fair Value (1) Carrying Fair Value (1) Carrying 2024 Senior Secured Notes $ 731,000 $ 921,310 (2) $ 982,000 $ 921,137 (2) 2022 Convertible Notes 177,000 205,020 (3) 297,000 201,868 (3) 2020 Convertible Notes — — 2,498 2,498 (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 $3.7 million and $3.9 million, respectively, as of March 31, 2020 and December 31, 2019. See Note 10, “Long-Term Debt and Other Liabilities,” for further information. (3) Carrying value of the 2022 Convertible Notes reflects the unaccreted debt discount of $32.7 million and $35.9 million, respectively, as of March 31, 2020 and December 31, 2019. See Note 10, “Long-Term Debt and Other Liabilities,” for further information. We have held-to-maturity |
Income Tax
Income Tax | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax | 15. Income Tax The effective income tax rates for the three month periods ended March 31, 2020 and 2019 were (0.2)% and (1.2)%, respectively. For the three month periods ended March 31, 2020 and 2019, our income tax expense was not significant primarily due to the full valuation allowance against our net deferred tax assets. We are subject to income taxation in the United States, various states within the United States, Canada, Switzerland, Japan, Mexico, Brazil, Singapore, the United Kingdom, Hong Kong, Australia, China, India, France, Germany and the Netherlands. With few exceptions, as of March 31, 2020, we are no longer subject to U.S. federal, state, local or foreign examinations by tax authorities for years before 2016. We record penalties and interest relating to uncertain tax positions in the income tax provision line item in the unaudited condensed consolidated statement of operations. No penalties or interest related to uncertain tax positions were recorded for the three month periods ended March 31, 2020 and 2019. As of March 31, 2020 and December 31, 2019, we did not have a liability recorded for interest or potential penalties. We do not expect a change in the unrecognized tax benefits within the next 12 months. |
Business Segments and Major Cus
Business Segments and Major Customers | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segments and Major Customers | 16. Business Segments and Major Customers We operate our business through three operating segments: Commercial Aviation North America, or “CA-NA,” “CA-ROW,” The accounting policies of the operating segments are the same as those described in Note 2, “Summary of Significant Accounting Policies,” in our 2019 10-K. 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 long-lived assets, impairment of 280-10, Segment Reporting As noted in our 2019 10-K, CA-NA Information regarding our reportable segments is as follows ( in thousands For the Three Months Ended March 31, 2020 CA-NA CA-ROW BA Total Service revenue $ 73,828 $ 19,228 $ 57,726 $ 150,782 Equipment revenue 6,308 14,184 13,201 33,693 Total revenue $ 80,136 $ 33,412 $ 70,927 $ 184,475 Reportable segment profit (loss) $ 15,883 $ (17,371 ) $ 35,854 $ 34,366 For the Three Months Ended March 31, 2019 CA-NA CA-ROW BA Total Service revenue $ 92,027 $ 19,772 $ 53,213 $ 165,012 Equipment revenue 4,042 13,159 17,336 34,537 Total revenue $ 96,069 $ 32,931 $ 70,549 $ 199,549 Reportable segment profit (loss) $ 30,662 $ (18,193 ) $ 33,755 $ 46,224 A reconciliation of total reportable segment profit (loss) to the relevant consolidated amounts is as follows ( in thousands For the Three Months Ended March 31, 2020 2019 CA-NA $ 15,883 $ 30,662 CA-ROW (17,371 ) (18,193 ) BA segment profit 35,854 33,755 Total reportable segment profit 34,366 46,224 Unallocated corporate costs (1) (8,636 ) (8,333 ) Interest income 606 1,149 Interest expense (31,174 ) (32,554 ) Depreciation and amortization (32,670 ) (30,749 ) Amortization of deferred airborne lease incentives 7,071 8,953 Amortization of STC costs (807 ) (320 ) Stock-based compensation expense (3,995 ) (4,327 ) Impairment of long-lived assets (46,389 ) — Impairment of cost-basis investment (3,000 ) — Proceeds from litigation settlement — 3,215 Other income 7 150 Loss before income taxes $ (84,621 ) $ (16,592 ) (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 $1.6 million and $1.5 million, respectively, for the three month periods ending March 31, 2020 and 2019. Major Customers and Airline Partnerships — Revenue earned from Delta Air Lines and its passengers accounted for approximately 28% and 29% of consolidated revenue, respectively, for the three month periods ended March 31, 2020 and 2019. Delta Air Lines accounted for approximately 16% and 11% of consolidated accounts receivable, respectively, as of March 31, 2020 and December 31, 2019. |
Employee Retirement and Postret
Employee Retirement and Postretirement Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Text Block [Abstract] | |
Employee Retirement and Postretirement Benefits | 17. Employee Retirement and Postretirement Benefits Stock-Based Compensation — 10-K Effective March 17, 2020, the performance-vesting conditions for all outstanding options to purchase shares of common stock and restricted stock units (“RSUs”) subject to both service and performance vesting requirements that were granted in 2017, 2018, and 2019 were eliminated. The performance modification resulted in the immediate issuance of 186,139 shares of common stock, corresponding to the portion of RSUs for which service-vesting dates had previously elapsed. For the three month period ended March 31, 2020, options to purchase 1,121,402 shares of common stock were granted, no options to purchase shares of common stock were exercised, options to purchase 25,747 shares of common stock were forfeited, and options to purchase 1,906,849 shares of common stock expired. For the three month period ended March 31, 2020, 2,953,496 RSUs (of which 186,139 were RSUs that fully and immediately vested in connection with the performance modification) and 87,138 RSUs were forfeited. For the three month period ended March 31, 2020, 8,227 restricted shares vested and no shares were cancelled. These shares are deemed issued as of the date of grant, but not outstanding until they vest. For the three month period ended March 31, 2020, 124,996 Deferred Stock Units were granted and 26,508 vested. For the three month period ended March 31, 2020, 87,681 shares of common stock were issued under the ESPP. On April 29, 2020, our stockholders approved a stock option exchange program that, when commenced, will provide eligible employees (which includes all current employees and executive officers and excludes all non-executive The following is a summary of our stock-based compensation expense by operating expense line in the unaudited condensed consolidated statements of operations (in thousands) For the Three Months Ended March 31, 2020 2019 Cost of service revenue $ 477 $ 428 Cost of equipment revenue 73 71 Engineering, design and development 753 774 Sales and marketing 752 970 General and administrative 1,940 2,084 Total stock-based compensation expense $ 3,995 $ 4,327 401(k) Plan — tax-deferred |
Research and Development Costs
Research and Development Costs | 3 Months Ended |
Mar. 31, 2020 | |
Research and Development [Abstract] | |
Research and Development Costs | 18. Research and Development Costs Expenditures for research and development are charged to expense as incurred and totaled $15.7 million and $14.1 million, respectively, during the three month periods ended March 31, 2020 and 2019. Research and development costs are reported as a component of engineering, design and development expenses in our unaudited condensed consolidated statements of operations. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The Business - in-flight “CA-NA,” “CA-ROW,” CA-NA CA-ROW Wi-Fi-enabled in-flight Wi-Fi CA-NA CA-ROW CA-ROW in-flight in-flight in-flight in-flight Basis of Presentation - S-X 10-K 10-K”). The results of operations and cash flows for the three month period ended March 31, 2020, including the impact of COVID-19, We have one class of common stock outstanding as of March 31, 2020 and December 31, 2019. During March 2020, approximately 5.1 million shares of common stock were delivered to us in connection with the Forward Transactions (as defined and described in Note 10 Paid-In |
Reclassifications | Reclassifications – |
Use of Estimates | Use of Estimates - |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Summary of Adoption Impact of ASC 326 on Unaudited Condensed Consolidated Balance Sheet | The cumulative effect adjustment from using the modified retrospective approach for the adoption of ASC 326 impacted our unaudited condensed consolidated balance sheet as of January 1, 2020 by the recognition of allowance for credit losses as summarized below: Balance at Impact of Balances Assets Accounts receivable 101,360 (1,386 ) 99,974 Prepaid and other current assets 36,305 (356 ) 35,949 Other non-current 89,672 (1,923 ) 87,749 Equity Accumulated deficit (1,376,142 ) (3,665 ) (1,379,807 ) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Summary of Revenue Disaggregated by Category | The following table presents our revenue disaggregated by category (in thousands) For the Three Months Ended March 31, 2020 CA-NA CA-ROW BA Total Service revenue Connectivity $ 68,869 $ 18,029 $ 56,975 $ 143,873 Entertainment, CAS and other 4,959 1,199 751 6,909 Total service revenue $ 73,828 $ 19,228 $ 57,726 $ 150,782 Equipment revenue ATG $ 4,396 $ — $ 9,624 $ 14,020 Satellite 1,832 14,184 3,374 19,390 Other 80 — 203 283 Total equipment revenue $ 6,308 $ 14,184 $ 13,201 $ 33,693 Customer type Airline passenger and aircraft owner/operator $ 43,702 $ 6,517 $ 57,726 $ 107,945 Airline, OEM and aftermarket dealer 26,258 25,399 13,201 64,858 Third party 10,176 1,496 — 11,672 Total revenue $ 80,136 $ 33,412 $ 70,927 $ 184,475 For the Three Months Ended March 31, 2019 CA-NA CA-ROW BA Total Service revenue Connectivity $ 79,818 $ 18,854 $ 52,685 $ 151,357 Entertainment, CAS and other 12,209 918 528 13,655 Total service revenue $ 92,027 $ 19,772 $ 53,213 $ 165,012 Equipment revenue ATG $ 2,872 $ — $ 11,335 $ 14,207 Satellite 630 13,159 5,235 19,024 Other 540 — 766 1,306 Total equipment revenue $ 4,042 $ 13,159 $ 17,336 $ 34,537 Customer type Airline passenger and aircraft owner/operator $ 54,349 $ 5,851 $ 53,213 $ 113,413 Airline, OEM and aftermarket dealer 30,913 25,491 17,336 73,740 Third party 10,807 1,589 — 12,396 Total revenue $ 96,069 $ 32,931 $ 70,549 $ 199,549 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share for the three month periods ended March 31, 2020 and 2019; however, because of the undistributed losses, the shares of common stock associated with the Forward Transactions are excluded from the computation of basic earnings per share in 2020 and 2019 as undistributed losses are not allocated to these shares ( in thousands, except per share amounts For the Three Months Ended March 31, 2020 2019 Net loss $ (84,778 ) $ (16,799 ) Less: Participation rights of the Forward Transactions — — Undistributed losses $ (84,778 ) $ (16,799 ) Weighted-average common shares outstanding-basic and diluted 81,205 80,446 Net loss attributable to common stock per share-basic and diluted $ (1.04 ) $ (0.21 ) |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | Inventories as of March 31, 2020 and December 31, 2019 were as follows ( in thousands March 31, December 31, 2020 2019 Work-in-process $ 23,585 $ 23,141 Finished goods 99,594 94,003 Total inventory $ 123,179 $ 117,144 |
Composition of Certain Balanc_2
Composition of Certain Balance Sheet Accounts (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets as of March 31, 2020 and December 31, 2019 were as follows ( in thousands March 31, December 31, 2020 2019 Contract assets, net of allowances of $997 and $0, respectively (1) $ 14,319 $ 12,364 Prepaid satellite services 7,970 11,299 Restricted cash 560 560 Other 13,613 12,082 Total prepaid expenses and other current assets $ 36,462 $ 36,305 (1) Allowance for contract assets as of March 31, 2020 is due to the adoption of ASC 326. See Note 9, “Composition of Certain Reserves and Allowances,” for additional information. |
Property and Equipment | Property and equipment as of March 31, 2020 and December 31, 2019 were as follows ( in thousands March 31, December 31, 2020 2019 Office equipment, furniture, fixtures and other $ 56,482 $ 56,205 Leasehold improvements 44,403 44,389 Airborne equipment (1) 709,980 737,593 Network equipment 225,169 229,451 1,036,034 1,067,638 Accumulated depreciation (530,450 ) (507,320 ) Total property and equipment, net $ 505,584 $ 560,318 (1) Decrease in A |
Schedule of Other Non-Current Assets | Other non-current in thousands March 31, December 31, 2020 2019 Contract assets, net of allowances of $6,111 and $0, respectively (1) $ 56,516 $ 51,829 Deferred STC costs 16,475 17,453 Restricted cash 4,601 7,099 Other (2) 8,637 13,291 Total other non-current $ 86,229 $ 89,672 (1) Allowances for contract assets as of March 31, 2020 is due to the adoption of ASC 326. See Note 9, “Composition of Certain Reserves and Allowances,” for additional information. (2) Decrease due in part to the $3.0 million impairment of a cost-basis investment which is included in Other (income) expense within our unaudited condensed consolidated statements of operations for the three month period ended March 31, 2020. |
Accrued Liabilities | March 31, December 31, 2020 2019 Airline related accrued liabilities $ 40,882 $ 43,592 Accrued interest 43,461 17,048 Employee compensation and benefits 15,136 29,954 Accrued satellite network costs 19,438 13,843 Warranty reserve 12,639 13,165 Operating leases 9,484 12,241 Airborne equipment and installation costs 4,293 11,466 Other 30,905 32,802 Total accrued liabilities $ 176,238 $ 174,111 |
Other Non-Current Liabilities | Other non-current in thousands March 31, December 31, 2020 2019 Deferred revenue $ 29,433 $ 21,889 Asset retirement obligations 11,773 11,560 Deferred tax liabilities 2,384 2,340 Other 10,203 10,704 Total other non-current $ 53,793 $ 46,493 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Other than Goodwill | Our intangible assets, other than goodwill, as of March 31, 2020 and December 31, 2019 were as follows ( in thousands, except for weighted average remaining useful life Weighted Average As of March 31, 2020 As of December 31, 2019 Remaining Gross Net Gross Net Useful Life Carrying Accumulated Carrying Carrying Accumulated Carrying (in years) Amount Amortization Amount Amount Amortization Amount Amortized intangible assets: Software 2.5 $ 180,568 $ (139,943 ) $ 40,625 $ 177,190 $ (135,154 ) $ 42,036 Other intangible assets 7.8 3,000 (1,445 ) 1,555 3,000 (1,440 ) 1,560 Service customer relationships 8,081 (8,081 ) — 8,081 (8,081 ) — OEM and dealer relationships 6,724 (6,724 ) — 6,724 (6,724 ) — Total amortized intangible assets 198,373 (156,193 ) 42,180 194,995 (151,399 ) 43,596 Unamortized intangible assets: FCC Licenses 32,283 — 32,283 32,283 — 32,283 Total intangible assets $ 230,656 $ (156,193 ) $ 74,463 $ 227,278 $ (151,399 ) $ 75,879 |
Summary of Amortization Expenses | Amortization expense for each of the next five years and thereafter is estimated to be as follows ( in thousands Years ending December 31, Amortization 2020 (period from April 1 to December 31) $ 13,092 2021 $ 14,451 2022 $ 9,670 2023 $ 2,808 2024 $ 547 Thereafter $ 1,612 |
Composition of Certain Reserv_2
Composition of Certain Reserves and Allowances (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Allowance for Credit Loss [Abstract] | |
Summary of our allowances for credit losses | A summary of our allowances for credit losses were in thousands Prepaid Other Accounts and other non-current receivable current assets assets Balance at January 1, 2020 $ 686 $ — $ — Cumulative-effect adjustment of ASC 326 1,386 356 1,923 Current-period provision for expected credit losses (1) 1,935 641 4,188 Write-offs charged against the allowances — — — Other, including dispositions and foreign currency (37 ) — — Balance at March 31, 2020 $ 3,970 $ 997 $ 6,111 (1) The current-period provision for expected credit losses was due primarily to the impact of COVID-19. |
Long-Term Debt and Other Liab_2
Long-Term Debt and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt as of March 31, 2020 and December 31, 2019 was as follows ( in thousands March 31, December 31, 2020 2019 2024 Senior Secured Notes $ 921,310 $ 921,137 2022 Convertible Notes 205,020 201,868 ABL Credit Facility 22,000 — 2020 Convertible Notes — 2,498 Total debt 1,148,330 1,125,503 Less deferred financing costs (23,617 ) (24,255 ) Total long-term debt $ 1,124,713 $ 1,101,248 |
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) | 3 Months Ended |
Mar. 31, 2020 | |
Text Block [Abstract] | |
Summary of Interest Costs | The following is a summary of our interest costs for the three month periods ended Mach 31, 2020 and 2019 (in thousands) For the Three Months Ended March 31, 2020 2019 Interest costs charged to expense $ 26,429 $ 26,531 Amortization of deferred financing costs 1,419 1,249 Accretion of debt discount 3,326 5,534 Amortization of debt premium — (760 ) Interest expense 31,174 32,554 Interest costs capitalized to property and equipment — 4 Interest costs capitalized to software 89 125 Total interest costs $ 31,263 $ 32,683 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lease expense included in the unaudited condensed consolidated statements of operations | The following is a summary of our lease expense included in the unaudited condensed consolidated statements of operations (in thousands) For the Three For the Three Months Ended Months Ended March 31, 2020 March 31, 2019 Operating lease cost $ 4,857 $ 4,918 Financing lease cost Amortization of leased assets 91 205 Interest on lease liabilities 26 11 Total lease cost $ 4,974 $ 5,134 |
Schedule Includes Other information About Leases | Other information regarding our leases is as follows (in thousands, except lease terms and discount rates) For the Three For the Three Months Ended Months Ended March 31, 2020 March 31, 2019 Supplemental cash flow information Cash paid for amounts included in measurement of lease liabilities: Operating cash flows used in operating leases $ 5,700 $ 6,117 Operating cash flows used in financing leases 26 11 Financing cash flows used in financing leases 247 125 Non-cash Operating leases obtained 7,274 279 Weighted average remaining lease term Operating leases 8 years 9 years Financing leases 2 years 1 year Weighted average discount rate Operating leases 9.4 % 10.3 % Financing leases 8.3 % 8.7 % |
Annual future minimum lease payments | Annual future minimum lease payments as of March 31, 2020 (in thousands) Operating Financing Years ending December 31, Leases Leases 2020 (period from April 1 to December 31) $ 12,456 $ 529 2021 20,566 530 2022 18,994 451 2023 15,023 — 2024 11,451 — Thereafter 56,550 — Total future minimum lease payments 135,040 1,510 Less: Amount representing interest (42,581 ) (124 ) Present value of net minimum lease payments $ 92,459 $ 1,386 Reported as of March 31, 2020 Accrued liabilities $ 9,484 $ 543 Non-current 82,975 — Other non-current — 843 Total lease liabilities $ 92,459 $ 1,386 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value and Carrying Value of Long-Term Debt | The fair value and carrying value of long-term debt as of March 31, 2020 and December 31, 2019 were as follows (in thousands) March 31, 2020 December 31, 2019 Fair Value (1) Carrying Fair Value (1) Carrying 2024 Senior Secured Notes $ 731,000 $ 921,310 (2) $ 982,000 $ 921,137 (2) 2022 Convertible Notes 177,000 205,020 (3) 297,000 201,868 (3) 2020 Convertible Notes — — 2,498 2,498 (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 $3.7 million and $3.9 million, respectively, as of March 31, 2020 and December 31, 2019. See Note 10, “Long-Term Debt and Other Liabilities,” for further information. (3) Carrying value of the 2022 Convertible Notes reflects the unaccreted debt discount of $32.7 million and $35.9 million, respectively, as of March 31, 2020 and December 31, 2019. See Note 10, “Long-Term Debt and Other Liabilities,” for further information. |
Business Segments and Major C_2
Business Segments and Major Customers (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Reportable Segments | Information regarding our reportable segments is as follows ( in thousands For the Three Months Ended March 31, 2020 CA-NA CA-ROW BA Total Service revenue $ 73,828 $ 19,228 $ 57,726 $ 150,782 Equipment revenue 6,308 14,184 13,201 33,693 Total revenue $ 80,136 $ 33,412 $ 70,927 $ 184,475 Reportable segment profit (loss) $ 15,883 $ (17,371 ) $ 35,854 $ 34,366 For the Three Months Ended March 31, 2019 CA-NA CA-ROW BA Total Service revenue $ 92,027 $ 19,772 $ 53,213 $ 165,012 Equipment revenue 4,042 13,159 17,336 34,537 Total revenue $ 96,069 $ 32,931 $ 70,549 $ 199,549 Reportable segment profit (loss) $ 30,662 $ (18,193 ) $ 33,755 $ 46,224 |
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 Three Months Ended March 31, 2020 2019 CA-NA $ 15,883 $ 30,662 CA-ROW (17,371 ) (18,193 ) BA segment profit 35,854 33,755 Total reportable segment profit 34,366 46,224 Unallocated corporate costs (1) (8,636 ) (8,333 ) Interest income 606 1,149 Interest expense (31,174 ) (32,554 ) Depreciation and amortization (32,670 ) (30,749 ) Amortization of deferred airborne lease incentives 7,071 8,953 Amortization of STC costs (807 ) (320 ) Stock-based compensation expense (3,995 ) (4,327 ) Impairment of long-lived assets (46,389 ) — Impairment of cost-basis investment (3,000 ) — Proceeds from litigation settlement — 3,215 Other income 7 150 Loss before income taxes $ (84,621 ) $ (16,592 ) (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 $1.6 million and $1.5 million, respectively, for the three month periods ending March 31, 2020 and 2019. |
Employee Retirement and Postr_2
Employee Retirement and Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Text Block [Abstract] | |
Summary of Stock-Based Compensation Expense by Operating Expense | The following is a summary of our stock-based compensation expense by operating expense line in the unaudited condensed consolidated statements of operations (in thousands) For the Three Months Ended March 31, 2020 2019 Cost of service revenue $ 477 $ 428 Cost of equipment revenue 73 71 Engineering, design and development 753 774 Sales and marketing 752 970 General and administrative 1,940 2,084 Total stock-based compensation expense $ 3,995 $ 4,327 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) $ in Thousands, shares in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020USD ($)ClassOfCommonStockSegmentshares | Mar. 31, 2019USD ($) | Dec. 31, 2019ClassOfCommonStock | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Treasury stock shares | shares | 5.1 | ||
Treasury stock, at cost | $ (98,857) | ||
Number Of Classes Of Common Stock Outstanding | ClassOfCommonStock | 1 | 1 | |
Number of Operating Segments | Segment | 3 | ||
Provision For Doubtful Accounts | $ 84 |
Impact of COVID-19 Pandemic - A
Impact of COVID-19 Pandemic - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)Empolyees | |
Impact Of Coronavirus Global Pandemic [Line Items] | |
Credit facility available limit | $ 22 |
Amount of grant applied under CARES Act | 81 |
Amount of loan applied under CARES Act | $ 150 |
Number Of Employees Working Remotely | Empolyees | 1,000 |
Workers' Compensation Discount, Description | We implemented several cost-cutting measures related to personnel, including implementing a hiring freeze, suspending 2020 merit salary increases and deferring the Chief Executive Officer’s 2019 bonus payout. Additionally, we furloughed approximately 54% of our workforce and reduced compensation for most other employees, starting May 4, 2020. The furloughs impact approximately 600 employees across the entire company. The time and duration of the furloughs will vary based on workload in individual departments. Salary reductions begin at 30% for the Chief Executive Officer, then 20% for the executive leadership team and reducing downward by staff level from there. In addition, the compensation for the members of our Board of Directors has been reduced by 30%. Certain types of employees, such as hourly workers, have not had their compensation reduced. |
Revenue [Member] | Two Commercial Airline Segments [Member] | |
Impact Of Coronavirus Global Pandemic [Line Items] | |
Concentration Risk, Percentage | 60.00% |
Revenue [Member] | Aviation Segment [Member] | |
Impact Of Coronavirus Global Pandemic [Line Items] | |
Concentration Risk, Percentage | 40.00% |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements - Summary of Adoption Impact of ASC 326 on Unaudited Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Assets | |||
Accounts receivable | $ 92,619 | $ 101,360 | |
Prepaid and other current assets | 36,462 | 36,305 | |
Other non-current assets | 86,229 | 89,672 | |
Equity | |||
Accumulated deficit | $ (1,464,585) | (1,376,142) | |
Accounting Standards Update 2016-13 [Member] | |||
Assets | |||
Accounts receivable | $ 99,974 | ||
Prepaid and other current assets | 35,949 | ||
Other non-current assets | 87,749 | ||
Equity | |||
Accumulated deficit | $ (1,379,807) | ||
Difference Between Guidance in Effect Before and After ASC Three Two Six [Member] | Accounting Standards Update 2016-13 [Member] | |||
Assets | |||
Accounts receivable | (1,386) | ||
Prepaid and other current assets | (356) | ||
Other non-current assets | (1,923) | ||
Equity | |||
Accumulated deficit | $ (3,665) |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenue from Contracts with Customers [Line Items] | |||
Transaction price allocated to remaining performance obligations | $ 585 | ||
Service revenue occurring period | 1 year | ||
Future equipment revenue recognition period | next one to three years | ||
Contract with Customer, Asset, Allowance for Credit Loss | $ 7.1 | ||
Future Equipment Revenue [Member] | |||
Revenue from Contracts with Customers [Line Items] | |||
Equipment revenue | 109 | ||
Connectivity and Entertainment Service Revenues [Member] | |||
Revenue from Contracts with Customers [Line Items] | |||
Transaction price allocated to remaining performance obligations | 476 | ||
Airline [Member] | |||
Revenue from Contracts with Customers [Line Items] | |||
Contract assets, current and non-current | 70.8 | $ 64.2 | |
Accounting Standards Update 2014-09 [Member] | |||
Revenue from Contracts with Customers [Line Items] | |||
Deferred revenue, current and non-current | 57.9 | 56.7 | |
Deferred STC costs | 16.5 | $ 17.5 | |
Accounting Standards Update 2014-09 [Member] | Engineering, Design and Development [Member] | |||
Revenue from Contracts with Customers [Line Items] | |||
Amortization expense | $ 0.8 | $ 0.3 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Revenue Disaggregated by Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | $ 184,475 | $ 199,549 |
Airline Passenger and Aircraft Owner/Operator [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 107,945 | 113,413 |
Airline, OEM and Aftermarket Dealer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 64,858 | 73,740 |
Third Party [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 11,672 | 12,396 |
Service Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 150,782 | 165,012 |
Service Revenue [Member] | Connectivity [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 143,873 | 151,357 |
Service Revenue [Member] | Entertainment, CAS and Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 6,909 | 13,655 |
Equipment Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 33,693 | 34,537 |
Equipment Revenue [Member] | ATG [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 14,020 | 14,207 |
Equipment Revenue [Member] | Satellite [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 19,390 | 19,024 |
Equipment Revenue [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 283 | 1,306 |
CA-NA [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 80,136 | 96,069 |
CA-NA [Member] | Airline Passenger and Aircraft Owner/Operator [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 43,702 | 54,349 |
CA-NA [Member] | Airline, OEM and Aftermarket Dealer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 26,258 | 30,913 |
CA-NA [Member] | Third Party [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 10,176 | 10,807 |
CA-NA [Member] | Service Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 73,828 | 92,027 |
CA-NA [Member] | Service Revenue [Member] | Connectivity [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 68,869 | 79,818 |
CA-NA [Member] | Service Revenue [Member] | Entertainment, CAS and Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 4,959 | 12,209 |
CA-NA [Member] | Equipment Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 6,308 | 4,042 |
CA-NA [Member] | Equipment Revenue [Member] | ATG [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 4,396 | 2,872 |
CA-NA [Member] | Equipment Revenue [Member] | Satellite [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 1,832 | 630 |
CA-NA [Member] | Equipment Revenue [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 80 | 540 |
CA-ROW [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 33,412 | 32,931 |
CA-ROW [Member] | Airline Passenger and Aircraft Owner/Operator [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 6,517 | 5,851 |
CA-ROW [Member] | Airline, OEM and Aftermarket Dealer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 25,399 | 25,491 |
CA-ROW [Member] | Third Party [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 1,496 | 1,589 |
CA-ROW [Member] | Service Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 19,228 | 19,772 |
CA-ROW [Member] | Service Revenue [Member] | Connectivity [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 18,029 | 18,854 |
CA-ROW [Member] | Service Revenue [Member] | Entertainment, CAS and Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 1,199 | 918 |
CA-ROW [Member] | Equipment Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 14,184 | 13,159 |
CA-ROW [Member] | Equipment Revenue [Member] | Satellite [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 14,184 | 13,159 |
BA [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 70,927 | 70,549 |
BA [Member] | Airline Passenger and Aircraft Owner/Operator [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 57,726 | 53,213 |
BA [Member] | Airline, OEM and Aftermarket Dealer [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 13,201 | 17,336 |
BA [Member] | Service Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 57,726 | 53,213 |
BA [Member] | Service Revenue [Member] | Connectivity [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 56,975 | 52,685 |
BA [Member] | Service Revenue [Member] | Entertainment, CAS and Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 751 | 528 |
BA [Member] | Equipment Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 13,201 | 17,336 |
BA [Member] | Equipment Revenue [Member] | ATG [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 9,624 | 11,335 |
BA [Member] | Equipment Revenue [Member] | Satellite [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | 3,374 | 5,235 |
BA [Member] | Equipment Revenue [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregation of revenue | $ 203 | $ 766 |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Forward stock repurchase transaction shares, excluded from dilution effect | 2.1 | 7.2 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (84,778) | $ (16,799) |
Less: Participation rights of the Forward Transactions | ||
Undistributed losses | $ (84,778) | $ (16,799) |
Weighted-average common shares outstanding-basic and diluted | 81,205 | 80,446 |
Net loss attributable to common stock per share-basic and diluted | $ (1.04) | $ (0.21) |
Inventories - Components of Inv
Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Work-in-process component parts | $ 23,585 | $ 23,141 |
Finished goods | 99,594 | 94,003 |
Total inventory | $ 123,179 | $ 117,144 |
Composition of Certain Balanc_3
Composition of Certain Balance Sheet Accounts - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Prepaid Expense and Other Assets [Abstract] | ||
Contract assets, net of allowances of $997 and $0, respectively | $ 14,319 | $ 12,364 |
Prepaid satellite services | 7,970 | 11,299 |
Restricted cash | 560 | 560 |
Other | 13,613 | 12,082 |
Total prepaid expenses and other current assets | $ 36,462 | $ 36,305 |
Composition of Certain Balanc_4
Composition of Certain Balance Sheet Accounts - Schedule of Prepaid Expenses and Other Current Assets (Detail) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Prepaid Expense and Other Assets [Abstract] | ||
Contract with Customer, Asset, Accumulated Allowance for Credit Loss, Current | $ 997 | $ 0 |
Composition of Certain Balanc_5
Composition of Certain Balance Sheet Accounts - Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,036,034 | $ 1,067,638 |
Accumulated depreciation | (530,450) | (507,320) |
Total property and equipment, net | 505,584 | 560,318 |
Office Equipment, Furniture, Fixtures and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 56,482 | 56,205 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 44,403 | 44,389 |
Airborne Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 709,980 | 737,593 |
Network Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 225,169 | $ 229,451 |
Composition of Certain Balanc_6
Composition of Certain Balance Sheet Accounts - Schedule of Other Non-Current Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Other Assets, Noncurrent [Abstract] | ||
Contract assets, net of allowances of $6,111 and $0, respectively | $ 56,516 | $ 51,829 |
Deferred STC costs | 16,475 | 17,453 |
Restricted cash | 4,601 | 7,099 |
Other | 8,637 | 13,291 |
Total other non-current assets | $ 86,229 | $ 89,672 |
Composition of Certain Balanc_7
Composition of Certain Balance Sheet Accounts - Schedule of Other Non-Current Assets (Detail) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Other Assets, Noncurrent [Abstract] | ||
Contract with Customer, Asset, Accumulated Allowance for Credit Loss, Noncurrent | $ 6,111 | $ 0 |
Impairment of cost-basis investment | $ 3,000 |
Composition of Certain Balanc_8
Composition of Certain Balance Sheet Accounts - Additional Information (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Impairment of long-lived assets | $ 46,389 |
Composition of Certain Balanc_9
Composition of Certain Balance Sheet Accounts - Accrued Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accrued Liabilities, Current [Abstract] | ||
Airline related accrued liabilities | $ 40,882 | $ 43,592 |
Accrued interest | 43,461 | 17,048 |
Employee compensation and benefits | 15,136 | 29,954 |
Airborne equipment and installation costs | 4,293 | 11,466 |
Accrued satellite network costs | 19,438 | 13,843 |
Warranty reserve | 12,639 | 13,165 |
Operating leases | 9,484 | 12,241 |
Other | 30,905 | 32,802 |
Total accrued liabilities | $ 176,238 | $ 174,111 |
Composition of Certain Balan_10
Composition of Certain Balance Sheet Accounts - Other Non-Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Other Liabilities, Noncurrent [Abstract] | ||
Deferred revenue | $ 29,433 | $ 21,889 |
Asset retirement obligations | 11,773 | 11,560 |
Deferred tax liabilities | 2,384 | 2,340 |
Other | 10,203 | 10,704 |
Total other non-current liabilities | $ 53,793 | $ 46,493 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 0.6 | $ 0.6 | |
Amortization expense | $ 4.8 | $ 5.3 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets, Other than Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Intangible Assets Net Excluding Goodwill [Line Items] | ||
Total intangible assets, Gross Carrying Amount | $ 230,656 | $ 227,278 |
Amortized intangible assets, Gross Carrying Amount | 198,373 | 194,995 |
Amortized intangible assets, Accumulated Amortization | (156,193) | (151,399) |
Amortized intangible assets, Net Carrying Amount | 42,180 | 43,596 |
Total intangible assets, Net Carrying Amount | 74,463 | 75,879 |
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 6 months | |
Amortized intangible assets, Gross Carrying Amount | $ 180,568 | 177,190 |
Amortized intangible assets, Accumulated Amortization | (139,943) | (135,154) |
Amortized intangible assets, Net Carrying Amount | 40,625 | 42,036 |
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) | (8,081) |
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 | (1,445) | (1,440) |
Amortized intangible assets, Net Carrying Amount | $ 1,555 | $ 1,560 |
Intangible Assets - Summary of
Intangible Assets - Summary of Amortization Expenses (Detail) $ in Thousands | Mar. 31, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2019 (period from October 1 to December 31) | $ 13,092 |
2020 | 14,451 |
2021 | 9,670 |
2022 | 2,808 |
2023 | 547 |
Thereafter | $ 1,612 |
Composition of Certain Reserv_3
Composition of Certain Reserves and Allowances (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Accounts Receivable, Balance at January 1, 2020 | $ 686 |
Accounts Receivable, Cumulative-effect adjustment of ASC 326 adoption | 1,386 |
Current-period provision for expected credit losses | 1,935 |
Other, including dispositions and foreign currency | (37) |
Accounts Receivable, Balance at March 31, 2020 | 3,970 |
Prepaid and other current assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Financing Receivable, Cumulative-effect adjustment of ASC 326 adoption | 356 |
Financing Receivable, Current-period provision for expected credit losses | 641 |
Financing Receivable, Balance at March 31, 2020 | 997 |
Other non-current assets | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Financing Receivable, Cumulative-effect adjustment of ASC 326 adoption | 1,923 |
Financing Receivable, Current-period provision for expected credit losses | 4,188 |
Financing Receivable, Balance at March 31, 2020 | $ 6,111 |
Composition of Certain Reserv_4
Composition of Certain Reserves and Allowances - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Allowance for Credit Loss [Abstract] | ||
Warranty reserve balance | $ 12,639 | $ 13,165 |
Long-Term Debt and Other Liab_3
Long-Term Debt and Other Liabilities - Additional Information (Detail) | Mar. 01, 2020USD ($) | Dec. 11, 2019USD ($)shares | May 07, 2019USD ($) | Apr. 25, 2019USD ($) | Apr. 18, 2019USD ($) | Jan. 03, 2017USD ($) | Jun. 14, 2016USD ($) | Mar. 03, 2015USD ($)$ / sharesshares | Aug. 26, 2019USD ($)ClassOfCommonStockTradingday | May 03, 2019USD ($) | Apr. 15, 2019USD ($) | Nov. 30, 2018USD ($) | Nov. 21, 2018USD ($)$ / shares | Mar. 31, 2020USD ($)shares | Mar. 31, 2019USD ($)shares | Dec. 31, 2019USD ($) | Sep. 25, 2017USD ($) |
Debt Instrument [Line Items] | |||||||||||||||||
Total debt | $ 1,148,330,000 | $ 1,125,503,000 | |||||||||||||||
Amortization of deferred financing costs | 1,419,000 | $ 1,249,000 | |||||||||||||||
Additional paid-in-capital | $ 1,081,955,000 | 979,499,000 | |||||||||||||||
Forward stock repurchase transaction, shares | shares | 2,100,000 | 7,200,000 | |||||||||||||||
Repayment of convertible notes | $ 2,498,000 | ||||||||||||||||
Margin On LIBOR | London inter-bank offered rate plus an applicable margin ranging from 1.50% to 2.00% | ||||||||||||||||
Line of Credit Facility, Current Borrowing Capacity | 22,000,000 | ||||||||||||||||
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 | 5,200,000 | 7,700,000 | |||||||||||||||
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] | |||||||||||||||||
Loan origination fees | 900,000 | ||||||||||||||||
Amortization of deferred financing costs | 100,000 | ||||||||||||||||
Debt issuance costs | 700,000 | 800,000 | |||||||||||||||
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 | ||||||||||||||||
Minimum Fixed Charge Coverage Ratio | ClassOfCommonStock | 100 | ||||||||||||||||
Convertible Notes [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Forward stock repurchase transaction, shares | shares | 7,200,000 | ||||||||||||||||
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 | ||||||||||||||||
Loan origination fees | 15,900,000 | ||||||||||||||||
Amortization of deferred financing costs | $ 690,000,000 | 800,000 | |||||||||||||||
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% | ||||||||||||||||
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 | ||||||||||||||||
Interest rate | 3.75% | ||||||||||||||||
Interest rate payable term | semi-annually | ||||||||||||||||
Amortization of deferred financing costs | $ 200,000 | ||||||||||||||||
Option granted to initial purchasers | $ 60,000,000 | ||||||||||||||||
Additional paid-in-capital | 100,000,000 | ||||||||||||||||
Convertible Notes, carrying amount of liability component | 261,900,000 | 2,498,000 | |||||||||||||||
Effective interest rate on convertible notes | 11.50% | ||||||||||||||||
Proceeds received from the issuance of the convertible notes | $ 361,900,000 | ||||||||||||||||
Conversion rate | 41.9274 | ||||||||||||||||
Principal amount | $ 1,000 | ||||||||||||||||
Conversion price | $ / shares | $ 23.85 | ||||||||||||||||
Forward stock repurchase transactions amount | $ 140,000,000 | $ 140,000,000 | |||||||||||||||
Forward stock repurchase transaction, shares | shares | 2,100,000 | 5.1 | |||||||||||||||
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 | 2,500,000 | ||||||||||||||||
Shares Purchased and Retired Under Forward Transactions | shares | 98,900,000 | ||||||||||||||||
3.75% Convertible Senior Notes [Member] | Issuance Costs [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Loan origination fees | $ 10,400,000 | ||||||||||||||||
Additional paid-in-capital | 2,900,000 | ||||||||||||||||
Issuance cost recorded to deferred financing costs | 7,500,000 | ||||||||||||||||
3.75% Convertible Senior Notes [Member] | Institutional Buyers [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount | 340,000,000 | ||||||||||||||||
Principal amount of Convertible Notes, subsequently exercised | $ 21,900,000 | ||||||||||||||||
2024 Senior Secured Notes [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate principal amount | 925,000,000 | ||||||||||||||||
Total debt | 921,300,000 | 921,100,000 | |||||||||||||||
Convertible Notes, unamortized discount | 3,700,000 | 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 | 400,000 | ||||||||||||||||
Debt issuance costs | 4,100,000 | ||||||||||||||||
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 | 205,000,000 | 201,900,000 | ||||||||||||||
Effective interest rate on convertible notes | 13.60% | ||||||||||||||||
Proceeds received from the issuance of the convertible notes | $ 237,800,000 | ||||||||||||||||
Convertible Notes, unamortized discount | 32,700,000 | 35,900,000 | |||||||||||||||
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 | 4,500,000 | ||||||||||||||||
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 | 900,000 | ||||||||||||||||
Debt issuance costs | $ 18,900,000 | $ 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% | 9.875% | |||||||||||||||
Issue price as percentage of face value | 100.50% | ||||||||||||||||
Proceeds from issuance of debt | $ 920,700,000 | ||||||||||||||||
Accrued interest received | $ 100,000 | ||||||||||||||||
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 | $ 2,500,000 | $ 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 | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total debt | $ 1,148,330 | $ 1,125,503 |
Less deferred financing costs | (23,617) | (24,255) |
Total long-term debt | 1,124,713 | 1,101,248 |
2024 Senior Secured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Secured Notes | 921,310 | 921,137 |
Total debt | 921,310 | 921,137 |
2022 Convertible Notes [Member] | ||
Debt Instrument [Line Items] | ||
Convertible Notes | 205,020 | 201,868 |
2020 Convertible Notes [Member] | ||
Debt Instrument [Line Items] | ||
Convertible Notes | $ 2,498 | |
ABL Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Convertible Notes | $ 22,000 |
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] | 3 Months Ended |
Mar. 31, 2020 | |
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 | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule Of Interest [Line Items] | ||
Interest costs charged to expense | $ 26,429 | $ 26,531 |
Amortization of deferred financing costs | 1,419 | 1,249 |
Accretion of debt discount | 3,326 | 5,534 |
Amortization of debt premium | (760) | |
Interest expense | 31,174 | 32,554 |
Total interest costs | 31,263 | 32,683 |
Property and Equipment [Member] | ||
Schedule Of Interest [Line Items] | ||
Interest costs capitalized | 4 | |
Software [Member] | ||
Schedule Of Interest [Line Items] | ||
Interest costs capitalized | $ 89 | $ 125 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Leases [Line Items] | |||
Amortization of deferred airborne lease incentives | $ 7,071 | $ 8,953 | |
Deferred airborne lease incentives included in current liabilities | 30,718 | $ 26,582 | |
Deferred airborne lease incentives included in non-current liabilities | 145,172 | $ 135,399 | |
Revenue share expense, net of amortization of deferred airborne lease incentives | $ 4,600 | $ 3,700 | |
Lessee operating lease option to extend | 20 years |
Leases - summary of our lease e
Leases - summary of our lease expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating lease cost | $ 4,857 | $ 4,918 |
Finance lease cost | ||
Amortization of leased assets | 91 | 205 |
Interest on lease liabilities | 26 | 11 |
Total lease cost | $ 4,974 | $ 5,134 |
Leases - Other information rega
Leases - Other information regarding our leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash paid for amounts included in measurement of lease liabilities: | ||
Operating cash flows used in operating leases | $ 5,700 | $ 6,117 |
Operating cash flows used in financing leases | 26 | 11 |
Financing cash flows used in financing leases | 247 | 125 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 7,274 | $ 279 |
Weighted average remaining lease term | ||
Operating leases | 8 years | 9 years |
Financing leases | 2 years | 1 year |
Weighted average discount rate | ||
Operating leases | 9.40% | 10.30% |
Financing leases | 8.30% | 8.70% |
Leases - Annual Future Minimum
Leases - Annual Future Minimum Obligations for Operating Leases Other than Arrangements with Commercial Airline Partners (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
2020 (period from April 1 to December 31) | $ 12,456 | |
2021 | 20,566 | |
2022 | 18,994 | |
2023 | 15,023 | |
2024 | 11,451 | |
Thereafter | 56,550 | |
Total future minimum lease payments | 135,040 | |
Less: Amount representing interest | (42,581) | |
Present value of net minimum lease payments | 92,459 | |
Accrued liabilities | 9,484 | $ 12,241 |
Non-current operating lease liabilities | 82,975 | $ 77,808 |
Total lease liabilities | 92,459 | |
Financing Leases | ||
2020 (period from April 1 to December 31) | 529 | |
2021 | 530 | |
2022 | 451 | |
Total future minimum lease payments | 1,510 | |
Less: Amount representing interest | (124) | |
Present value of net minimum lease payments | 1,386 | |
Accrued liabilities | 543 | |
Other non-current liabilities | 843 | |
Total lease liabilities | $ 1,386 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Loss Contingencies [Line Items] | |
2020 (April 1 through December 31) | $ 101 |
2021 | 129.9 |
2022 | 110 |
2023 | 90.8 |
2024 | 85.4 |
Thereafter | $ 259.4 |
Linksmart Litigation [Member] | |
Loss Contingencies [Line Items] | |
Litigation filing date | April 20, 2018 |
Securities Litigation [Member] | |
Loss Contingencies [Line Items] | |
Litigation filing date | June 27, 2018 |
Derivative Litigation [Member] | |
Loss Contingencies [Line Items] | |
Litigation filing date | September 25, 2018 and September 26, 2018 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Assets fair value adjustments | $ 0 | $ 0 |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities - Summary of Fair Value and Carrying Value of Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 03, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total debt | $ 1,148,330 | $ 1,125,503 | |
2024 Senior Secured Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value of Long Term Debt | 731,000 | 982,000 | |
Total debt | 921,310 | 921,137 | |
2022 Convertible Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value of Convertible Notes | 177,000 | 297,000 | |
Carrying Value of Convertible Notes | $ 205,020 | 201,868 | |
2020 Convertible Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value of Convertible Notes | 2,498 | ||
Carrying Value of Convertible Notes | $ 2,498 | $ 261,900 |
Fair Value of Financial Asset_5
Fair Value of Financial Assets and Liabilities - Summary of Fair Value and Carrying Value of Long-Term Debt (Parenthetical) (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
2022 Convertible Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Unamortized Discount | $ 32.7 | $ 35.9 |
2024 Senior Secured Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Unamortized Discount | $ 3.7 | $ 3.9 |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Tax Credit Carryforward [Line Items] | ||
Unrecognized tax benefits | $ 0 | $ 0 |
Effective income tax rate | (0.20%) | (1.20%) |
Interest or penalties related to uncertain tax positions | $ 0 | $ 0 |
Liabilities for interest and potential penalties | $ 0 | $ 0 |
Business Segments and Major C_3
Business Segments and Major Customers - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue [Member] | Customer Concentration Risk [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of benchmark | 15.00% | 15.00% |
Revenue [Member] | Customer Concentration Risk [Member] | Delta Airline and American Airlines [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of benchmark | 28.00% | 29.00% |
Accounts Receivable [Member] | Delta Air Lines [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of benchmark | 16.00% | 11.00% |
Business Segments and Major C_4
Business Segments and Major Customers - Summary of Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 184,475 | $ 199,549 |
Segment profit (loss) | 34,366 | 46,224 |
Service [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 150,782 | 165,012 |
Product [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 33,693 | 34,537 |
CA-NA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 80,136 | 96,069 |
Segment profit (loss) | 15,883 | 30,662 |
CA-NA [Member] | Service [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 73,828 | 92,027 |
CA-NA [Member] | Product [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 6,308 | 4,042 |
CA-ROW [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 33,412 | 32,931 |
Segment profit (loss) | (17,371) | (18,193) |
CA-ROW [Member] | Service [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 19,228 | 19,772 |
CA-ROW [Member] | Product [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 14,184 | 13,159 |
BA [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 70,927 | 70,549 |
Segment profit (loss) | 35,854 | 33,755 |
BA [Member] | Service [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 57,726 | 53,213 |
BA [Member] | Product [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 13,201 | $ 17,336 |
Business Segments and Major C_5
Business Segments and Major Customers - Reconciliation of Segment Profit (loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment profit (loss) | $ 34,366 | $ 46,224 |
Unallocated corporate costs | (8,636) | (8,333) |
Interest income | 606 | 1,149 |
Interest expense | (31,174) | (32,554) |
Depreciation and amortization | (32,670) | (30,749) |
Amortization of deferred airborne lease incentives | 7,071 | 8,953 |
Amortization of STC costs | (807) | (320) |
Stock-based compensation expense | (3,995) | (4,327) |
Impairment of long-lived assets | (46,389) | |
Impairment of cost-basis investment | (3,000) | |
Proceeds from litigation settlement | 3,215 | |
Other income | 7 | 150 |
Loss before income taxes | (84,621) | (16,592) |
CA-NA [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment profit (loss) | 15,883 | 30,662 |
CA-ROW [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment profit (loss) | (17,371) | (18,193) |
BA [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment profit (loss) | $ 35,854 | $ 33,755 |
Business Segments and Major C_6
Business Segments and Major Customers - Reconciliation of Segment Profit (loss) (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Stock-based compensation expense | $ 3,995 | $ 4,327 |
Unallocated Corporate Costs [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Stock-based compensation expense | $ 1,600 | $ 1,500 |
Employee Retirement and Postr_3
Employee Retirement and Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Millions | Mar. 17, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Employee Contribution | 100.00% | ||
Percentage of employees contribution matched by the company | 4.00% | ||
Employer Contribution | $ 1.2 | $ 1.2 | |
Stock options, shares granted | 1,121,402 | ||
Stock options exercised | 25,747 | ||
Stock options, shares expired | 1,906,849 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share units granted | 2,953,496 | ||
Share units forfeited | 87,138 | ||
Share units vested | 752,342 | ||
Share units issued | 186,139 | 186,139 | |
Restricted Stock [Member] | |||
Share units vested | 8,227 | ||
Deferred Stock Units [Member] | |||
Share units granted | 124,996 | ||
Share units vested | 26,508 | ||
Employee Stock Purchase Plan [Member] | |||
Common stock, shares issued under ESPP | 87,681 |
Employee Retirement and Postr_4
Employee Retirement and Postretirement Benefits - Summary of Stock-Based Compensation Expense by Operating Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 3,995 | $ 4,327 |
Cost of Service Revenue [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 477 | 428 |
Cost of Equipment Revenue [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 73 | 71 |
Engineering, Design and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 753 | 774 |
Sales and Marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 752 | 970 |
General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 1,940 | $ 2,084 |
Research and Development Costs
Research and Development Costs - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Research and Development Expense | $ 15.7 | $ 14.1 |