Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2024 | Jul. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Year Focus | 2025 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | VSAT | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Security Exchange Name | NASDAQ | |
Entity Registrant Name | VIASAT, INC. | |
Entity Central Index Key | 0000797721 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 127,779,170 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-21767 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 33-0174996 | |
Entity Address, Address Line One | 6155 El Camino Real | |
Entity Address, City or Town | Carlsbad | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92009 | |
City Area Code | 760 | |
Local Phone Number | 476-2200 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Current assets: | ||
Cash and cash equivalents | $ 1,811,599 | $ 1,901,033 |
Accounts receivable, net | 694,889 | 678,210 |
Inventories | 329,829 | 317,878 |
Prepaid expenses and other current assets | 490,784 | 581,783 |
Total current assets | 3,327,101 | 3,478,904 |
Property, equipment and satellites, net | 7,531,809 | 7,557,206 |
Operating lease right-of-use assets | 380,169 | 393,077 |
Other acquired intangible assets, net | 2,475,492 | 2,544,467 |
Goodwill | 1,621,473 | 1,621,763 |
Other assets | 751,825 | 733,947 |
Total assets | 16,087,869 | 16,329,364 |
Current liabilities: | ||
Accounts payable | 230,882 | 287,206 |
Accrued and other liabilities | 791,102 | 950,621 |
Current portion of long-term debt | 57,764 | 58,054 |
Total current liabilities | 1,079,748 | 1,295,881 |
Senior notes | 4,367,667 | 4,354,714 |
Other long-term debt | 2,761,181 | 2,774,521 |
Non-current operating lease liabilities | 369,342 | 379,644 |
Other liabilities | 2,422,278 | 2,452,100 |
Total liabilities | 11,000,216 | 11,256,860 |
Commitments and contingencies (Note 9) | ||
Viasat, Inc. stockholders’ equity | ||
Common stock | 13 | 13 |
Paid-in capital | 4,845,072 | 4,797,253 |
Retained earnings | 216,520 | 249,432 |
Accumulated other comprehensive income (loss) | (32,251) | (21,268) |
Total Viasat, Inc. stockholders’ equity | 5,029,354 | 5,025,430 |
Noncontrolling interest in subsidiary | 58,299 | 47,074 |
Total equity | 5,087,653 | 5,072,504 |
Total liabilities and equity | $ 16,087,869 | $ 16,329,364 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues: | ||
Total revenues | $ 1,126,460 | $ 779,791 |
Operating expenses: | ||
Selling, general and administrative | 251,122 | 219,581 |
Independent research and development | 38,563 | 29,004 |
Amortization of acquired intangible assets | 66,215 | 27,811 |
Income (loss) from operations | 59,735 | (41,516) |
Other income (expense): | ||
Interest income | 22,792 | 19,189 |
Interest expense | (105,776) | (55,939) |
Income (loss) before income taxes | (23,249) | (78,266) |
(Provision for) benefit from income taxes | (1,184) | 533 |
Equity in income (loss) of unconsolidated affiliate, net | 2,746 | 831 |
Net income (loss) | (21,687) | (76,902) |
Less: net income (loss) attributable to noncontrolling interest, net of tax | 11,225 | 102 |
Net income (loss) attributable to Viasat, Inc. | $ (32,912) | $ (77,004) |
Basic net income (loss) per share attributable to Viasat, Inc. common stockholders: | $ (0.26) | $ (0.83) |
Diluted net income (loss) per share attributable to Viasat, Inc. common stockholders: | $ (0.26) | $ (0.83) |
Shares used in computing basic net income (loss) per share | 126,580 | 93,106 |
Shares used in computing diluted net income (loss) per share | 126,580 | 93,106 |
Comprehensive income (loss): | ||
Net income (loss) | $ (21,687) | $ (76,902) |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments, net of tax | (9,895) | 8,527 |
Unrealized gain (loss) on hedging, net of tax | (1,088) | 6,297 |
Other comprehensive income (loss), net of tax | (10,983) | 14,824 |
Comprehensive income (loss) | (32,670) | (62,078) |
Less: comprehensive income (loss) attributable to noncontrolling interest, net of tax | 11,225 | 102 |
Comprehensive income (loss) attributable to Viasat, Inc. | (43,895) | (62,180) |
Product [Member] | ||
Revenues: | ||
Total revenues | 305,739 | 236,372 |
Operating expenses: | ||
Cost of revenues | 194,158 | 197,078 |
Service [Member] | ||
Revenues: | ||
Total revenues | 820,721 | 543,419 |
Operating expenses: | ||
Cost of revenues | $ 516,667 | $ 347,833 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (21,687) | $ (76,902) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation | 249,800 | 132,011 |
Amortization of intangible assets | 81,404 | 42,568 |
Stock-based compensation expense | 19,182 | 21,752 |
Loss on disposition of fixed assets | 19,778 | 9,729 |
Deferred income taxes and other non-cash adjustments | 9,387 | (24,203) |
Increase (decrease) in cash resulting from changes in operating assets and liabilities, net of effect of acquisition: | ||
Accounts receivable | (26,224) | (739) |
Inventories | (11,888) | (34,684) |
Other assets | 13,581 | (39,564) |
Accounts payable | (28,529) | 41,509 |
Accrued liabilities | (110,114) | (58,969) |
Other liabilities | (43,594) | 91,158 |
Net cash provided by (used in) operating activities | 151,096 | 103,666 |
Cash flows from investing activities: | ||
Purchase of property, equipment and satellites, and other assets | (301,019) | (374,926) |
Proceeds from insurance claims on satellites | 79,500 | |
Payment related to acquisition of a business, net of cash acquired | (342,621) | |
Payments to acquire short-term investments | (52,000) | |
Net cash provided by (used in) investing activities | (221,519) | (769,547) |
Cash flows from financing activities: | ||
Payments on debt borrowings | (19,462) | (18,868) |
Proceeds from debt borrowings | 1,334,683 | |
Payments of debt issuance costs | (710) | (34,558) |
Proceeds from issuance of common stock under equity plans | 82 | |
Purchase of common stock in treasury (immediately retired) related to tax withholdings for stock-based compensation | (1,415) | (2,212) |
Other financing activities | (866) | (779) |
Net cash provided by (used in) financing activities | (22,453) | 1,278,348 |
Effect of exchange rate changes on cash | 3,442 | 617 |
Net increase (decrease) in cash and cash equivalents and restricted cash | (89,434) | 613,084 |
Cash and cash equivalents and restricted cash at beginning of period | 1,901,033 | 1,379,386 |
Cash and cash equivalents and restricted cash at end of period | 1,811,599 | 1,992,470 |
Non-cash investing and financing activities: | ||
Issuance of common stock in satisfaction of certain accrued employee compensation liabilities | 28,063 | 31,173 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 3,060 | 5,241 |
Debt issuance costs not paid for | 6,649 | |
Inmarsat [Member] | ||
Non-cash investing and financing activities: | ||
Issuance of common stock in connection with acquisition | $ 2,123,455 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest in Subsidiary [Member] |
Beginning balance at Mar. 31, 2023 | $ 3,860,569 | $ 8 | $ 2,540,679 | $ 1,318,336 | $ (34,713) | $ 36,259 |
Beginning balance, shares at Mar. 31, 2023 | 76,912,016 | |||||
Exercise of stock options | 82 | 82 | ||||
Exercise of stock options, shares | 2,633 | |||||
Stock-based compensation | 24,882 | 24,882 | ||||
Shares issued in settlement of certain accrued employee compensation liabilities | 31,173 | 31,173 | ||||
Shares issued in settlement of certain accrued employee compensation liabilities, shares | 687,851 | |||||
RSU awards vesting, net of shares withheld for taxes which have been retired | (2,212) | (2,212) | ||||
RSU awards vesting, net of shares withheld for taxes which have been retired, shares | 88,619 | |||||
Common stock issued in private placement, net of issuance costs | 2,123,455 | $ 5 | 2,123,450 | |||
Common stock issued in private placement, net of issuance costs, shares | 46,363,636 | |||||
Other noncontrolling interest activity | 1 | 1 | ||||
Net income (loss) | (76,902) | (77,004) | 102 | |||
Other comprehensive income (loss), net of tax | 14,824 | 14,824 | ||||
Ending balance at Jun. 30, 2023 | 5,975,872 | $ 13 | 4,718,054 | 1,241,332 | (19,889) | 36,362 |
Ending balance, shares at Jun. 30, 2023 | 124,054,755 | |||||
Beginning balance at Mar. 31, 2024 | 5,072,504 | $ 13 | 4,797,253 | 249,432 | (21,268) | 47,074 |
Beginning balance, shares at Mar. 31, 2024 | 125,849,088 | |||||
Stock-based compensation | 21,171 | 21,171 | ||||
Shares issued in settlement of certain accrued employee compensation liabilities | 28,063 | 28,063 | ||||
Shares issued in settlement of certain accrued employee compensation liabilities, shares | 1,755,074 | |||||
RSU awards vesting, net of shares withheld for taxes which have been retired | (1,415) | (1,415) | ||||
RSU awards vesting, net of shares withheld for taxes which have been retired, shares | 134,475 | |||||
Net income (loss) | (21,687) | (32,912) | 11,225 | |||
Other comprehensive income (loss), net of tax | (10,983) | (10,983) | ||||
Ending balance at Jun. 30, 2024 | $ 5,087,653 | $ 13 | $ 4,845,072 | $ 216,520 | $ (32,251) | $ 58,299 |
Ending balance, shares at Jun. 30, 2024 | 127,738,637 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (32,912) | $ (77,004) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On June 1, 2024 , John Stenbit , a member of our board of directors , adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) for the sale of up to 5,000 shares of our common stock (to be acquired upon the exercise of options if certain price thresholds are met) from August 31, 2024 until September 5, 2024 . |
John Stenbit | |
Trading Arrangements, by Individual | |
Name | John Stenbit |
Title | a member of our board of directors |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | June 1, 2024 |
Expiration Date | September 5, 2024 |
Arrangement Duration | 5 days |
Aggregate Available | 5,000 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1 — Basis of Presentation The accompanying condensed consolidated balance sheet at June 30, 2024, the condensed consolidated statements of operations and comprehensive income (loss) for the three months ended June 30, 2024 and 2023, the condensed consolidated statements of cash flows for the three months ended June 30, 2024 and 2023 and the condensed consolidated statements of equity for the three months ended June 30, 2024 and 2023 have been prepared by the management of Viasat, Inc. (also referred to hereafter as the Company or Viasat), and have not been audited. These financial statements have been prepared on the same basis as the audited consolidated financial statements for the fiscal year ended March 31, 2024 and, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the Company’s results for the periods presented. These financial statements should be read in conjunction with the financial statements and notes thereto for the fiscal year ended March 31, 2024 included in the Company’s Annual Report on Form 10-K. Interim operating results are not necessarily indicative of operating results for the full year. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (GAAP). The Company’s condensed consolidated financial statements include the assets, liabilities and results of operations of Viasat, its wholly owned subsidiaries and its majority-owned subsidiary, TrellisWare Technologies, Inc. (TrellisWare). All significant intercompany amounts have been eliminated. Investments in entities in which the Company can exercise significant influence, but does not own a majority equity interest or otherwise control, are accounted for using the equity method and are included as investment in unconsolidated affiliate in other assets (long-term) on the condensed consolidated balance sheets. On May 30, 2023, the Company completed the acquisition of Connect Topco Limited, a private company limited by shares and incorporated in Guernsey (Inmarsat Holdings and, together with its subsidiaries, Inmarsat, and such acquisition, the Inmarsat Acquisition). The Inmarsat Acquisition was accounted for as a purchase and accordingly, the condensed consolidated financial statements include the operating results of Inmarsat from the date of acquisition. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting period. Estimates have been prepared on the basis of the most current and best available information and actual results could differ from those estimates. Significant estimates made by management include revenue recognition, stock-based compensation, allowance for doubtful accounts, valuation of goodwill and other intangible assets, patents, orbital slots and other licenses, software development, property, equipment and satellites, long-lived assets, derivatives, contingencies and income taxes including the valuation allowance on deferred tax assets. Revenue recognition In accordance with the authoritative guidance for revenue from contracts with customers (Accounting Standards Codification (ASC) 606), the Company applies the five-step model to its contracts with its customers. Under this model the Company (1) identifies the contract with the customer, (2) identifies its performance obligations in the contract, (3) determines the transaction price for the contract, (4) allocates the transaction price to its performance obligations and (5) recognizes revenue when or as it satisfies its performance obligations. These performance obligations generally include the purchase of services (including broadband capacity and the leasing of broadband equipment), the purchase of products, and the development and delivery of complex equipment built to customer specifications under long-term contracts. Taxes imposed by governmental authorities on the Company’s revenues, such as sales taxes and value added taxes, are excluded from net sales. Performance obligations The timing of satisfaction of performance obligations may require judgment. The Company derives a substantial portion of its revenues from contracts with customers for services, primarily consisting of connectivity services. These contracts typically require advance or recurring monthly payments by the customer. The Company’s obligation to provide connectivity services is satisfied over time as the customer simultaneously receives and consumes the benefits provided. The measure of progress over time is based upon either a period of time (e.g., over the estimated contractual term) or usage (e.g., bandwidth used/bytes of data processed). The Company evaluates whether broadband equipment provided to its customers as part of the delivery of connectivity services represents a lease in accordance with the authoritative guidance for leases (ASC 842). As discussed further below under “Leases - Lessor accounting”, for broadband equipment leased to customers in conjunction with the delivery of connectivity services, the Company accounts for the lease and non-lease components of connectivity service arrangements as a single performance obligation as the connectivity services represent the predominant component. The Company also derives a portion of its revenues from contracts with customers to provide products. Performance obligations to provide products are satisfied at the point in time when control is transferred to the customer. These contracts typically require payment by the customer upon passage of control and determining the point at which control is transferred may require judgment. To identify the point at which control is transferred to the customer, the Company considers indicators that include, but are not limited to, whether (1) the Company has the present right to payment for the asset, (2) the customer has legal title to the asset, (3) physical possession of the asset has been transferred to the customer, (4) the customer has the significant risks and rewards of ownership of the asset, and (5) the customer has accepted the asset. For product revenues, control generally passes to the customer upon delivery of goods to the customer. The Company’s contracts with the U.S. Government typically are subject to the Federal Acquisition Regulation (FAR) and are priced based on estimated or actual costs of producing goods or providing services. The FAR provides guidance on the types of costs that are allowable in establishing prices for goods and services provided under U.S. Government contracts. The pricing for non-U.S. Government contracts is based on the specific negotiations with each customer. Under the typical payment terms of the Company’s U.S. Government fixed-price contracts, the customer pays the Company either performance-based payments (PBPs) or progress payments. PBPs are interim payments based on quantifiable measures of performance or on the achievement of specified events or milestones. Progress payments are interim payments based on a percentage of the costs incurred as the work progresses. Because the customer can often retain a portion of the contract price until completion of the contract, the Company’s U.S. Government fixed-price contracts generally result in revenue recognized in excess of billings which the Company presents as unbilled accounts receivable on the balance sheet. Amounts billed and due from the Company’s customers are classified as receivables on the balance sheet. The portion of the payments retained by the customer until final contract settlement is not considered a significant financing component because the intent is to protect the customer. For the Company’s U.S. Government cost-type contracts, the customer generally pays the Company for its actual costs incurred within a short period of time. For non-U.S. Government contracts, the Company typically receives interim payments as work progresses, although for some contracts, the Company may be entitled to receive an advance payment. The Company recognizes a liability for these advance payments in excess of revenue recognized and presents it as collections in excess of revenues and deferred revenues on the balance sheet. An advance payment is not typically considered a significant financing component because it is used to meet working capital demands that can be higher in the early stages of a contract and to protect the Company from the other party failing to adequately complete some or all of its obligations under the contract. Performance obligations related to developing and delivering complex equipment built to customer specifications under long-term contracts are recognized over time as these performance obligations do not create assets with an alternative use to the Company and the Company has an enforceable right to payment for performance to date. To measure the transfer of control, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. The Company generally uses the cost-to-cost measure of progress for its contracts because that best depicts the transfer of control to the customer which occurs as the Company incurs costs on its contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Estimating the total costs at completion of a performance obligation requires management to make estimates related to items such as subcontractor performance, material costs and availability, labor costs and productivity and the costs of overhead. When estimates of total costs to be incurred on a contract exceed total estimates of revenue to be earned, a provision for the entire loss on the contract is recognized in the period the loss is determined. Contract costs on U.S. Government contracts are subject to audit and review by the Defense Contract Management Agency (DCMA), the Defense Contract Audit Agency (DCAA), and other U.S. Government agencies, as well as negotiations with U.S. Government representatives. As of June 30, 2024 , the DCMA had approved the Company’s incurred costs through fiscal year 2022. The DCMA is currently auditing the Company’s fiscal year 2023 incurred cost submission. The Company's cost accounting practices are examined for compliance with the applicable Cost Accounting Standards (CAS). Although the Company has recorded contract revenues subsequent to fiscal year 2022 based upon an estimate of costs that the Company believes will be approved upon final audit or review, the Company does not know the outcome of any ongoing or future audits or reviews and adjustments and if future adjustments exceed the Company’s estimates its profitability would be adversely affected. The Company had $ 7.4 million and $ 16.6 million as of June 30, 2024 and March 31, 2024, respectively, in contract-related reserves for its estimate of potential refunds to customers for potential cost adjustments on several multi-year U.S. Government cost reimbursable contracts (see Note 9 — Commitments and Contingencies for more information). Evaluation of transaction price The evaluation of transaction price, including the amounts allocated to performance obligations, may require significant judgments. Due to the nature of the work required to be performed on many of the Company’s performance obligations, the estimation of total revenue, and, where applicable, the cost at completion, is complex, subject to many variables and requires significant judgment. The Company’s contracts may contain award fees, incentive fees, or other provisions, including the potential for significant financing components, that can either increase or decrease the transaction price. These amounts, which are sometimes variable, can be dictated by performance metrics, program milestones or cost targets, the timing of payments, and customer discretion. The Company estimates variable consideration at the amount to which it expects to be entitled. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company’s estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information (historical, current and forecasted) that is reasonably available to the Company. In the event an agreement includes embedded financing components, the Company recognizes interest expense or interest income on the embedded financing components using the effective interest method. This methodology uses an implied interest rate which reflects the incremental borrowing rate which would be expected to be obtained in a separate financing transaction. The Company has elected the practical expedient not to adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. If a contract is separated into more than one performance obligation, the total transaction price is allocated to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. Estimating standalone selling prices may require judgment. When available, the Company utilizes the observable price of a good or service when the Company sells that good or service separately in similar circumstances and to similar customers. If a standalone selling price is not directly observable, the Company estimates the standalone selling price by considering all information (including market conditions, specific factors, and information about the customer or class of customer) that is reasonably available. Transaction price allocated to remaining performance obligations The Company’s remaining performance obligations represent the transaction price of firm contracts and orders for which work has not been performed. The Company includes in its remaining performance obligations only those contracts and orders for which it has accepted purchase orders. Remaining performance obligations associated with the Company’s subscribers for fixed consumer and business broadband services in its communication services segment exclude month-to-month service contracts in accordance with a practical expedient and are estimated using a portfolio approach in which the Company reviews all relevant promotional activities and calculates the remaining performance obligation using the average service component for the portfolio and the average time remaining under the contract. The Company’s future recurring in-flight connectivity (IFC) service contracts in its communication services segment do not have minimum service purchase requirements and therefore are not included in the Company’s remaining performance obligations. As of June 30, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 3.6 billion, of which the Company expects to recognize a little less than half over the next 12 months, with the balance recognized thereafter . Disaggregation of revenue The Company operates and manages its business in two segments: communication services and defense and advanced technologies. Revenue is disaggregated by products and services, business line, customer type, contract type, and geographic area, respectively, as the Company believes this approach best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. See Note 11 — Segment Information for disaggregation of revenue by business line and additional disaggregated revenue disclosures. The following sets forth disaggregated reported revenue by segment and products and services for the three months ended June 30, 2024 and 2023: Three Months Ended June 30, 2024 Communication Services Defense and Advanced Technologies Total (In thousands) Product revenues $ 60,176 $ 245,563 $ 305,739 Service revenues 766,611 54,110 820,721 Total revenues $ 826,787 $ 299,673 $ 1,126,460 Three Months Ended June 30, 2023 Communication Services Defense and Advanced Technologies Total (In thousands) Product revenues $ 66,487 $ 169,885 $ 236,372 Service revenues 493,773 49,646 543,419 Total revenues $ 560,260 $ 219,531 $ 779,791 Revenues from the U.S. Government as an individual customer comprised approximately 16 % and 17 % of total revenues for the three months ended June 30, 2024 and 2023, respectively. Revenues from the U.S. Government are attributable to each of the communication services segment and defense and advanced technologies segment, with slightly higher revenues from the U.S. Government reported within the Company's communication services segment for the three months ended June 30, 2024 and the Company's defense and advanced technologies segment for the three months ended June 30, 2023. The Company’s communication services segment revenues are primarily derived from the Company’s aviation services (including IFC services), government satcom services, maritime services (including narrowband and safety of communication capabilities primarily acquired through the Inmarsat Acquisition), fixed broadband services, and energy services, as well as a wide array of advanced satellite and wireless products, networks and terminal solutions that support or enable the provision of fixed and mobile broadband and narrowband services. The Company’s defense and advanced technologies segment revenues are primarily derived from the Company’s information security and cyber defense, space and mission systems, tactical networking, and advanced technologies and other products and services which are provided to government and commercial customers. The Company’s revenues are primarily derived from two types of contracts: fixed-price and cost-reimbursement contracts. Fixed-price contracts (which require the Company to provide products and services under a contract at a specified price), comprised approximately 96 % and 93 % of the Company’s total revenues for the three months ended June 30, 2024 and 2023, respectively, a majority of which are reported in the Company's communication services segment. The remainder of the Company’s revenues for such periods was derived primarily from cost-reimbursement contracts (under which the Company is reimbursed for all actual costs incurred in performing the contract to the extent such costs are within the contract ceiling and allowable under the terms of the contract, plus a fee or profit), which contracts are mainly reported within the Company's defense and advanced technologies segment. Historically, a significant portion of the Company’s revenues has been derived from customer contracts that include the development of products. The development efforts are conducted in direct response to the customer’s specific requirements and, accordingly, expenditures related to such efforts are included in cost of sales when incurred and the related funding (which includes a profit component) is included in revenues. Revenues for the Company’s funded development from its customer contracts were approximately 12 % and 15 % of its total revenues for the three months ended June 30, 2024 and 2023, respectively, mainly reported within the Company's defense and advanced technologies segment. Contract balances Contract balances consist of contract assets and contract liabilities. A contract asset, or with respect to the Company, an unbilled accounts receivable, is recorded when revenue is recognized in advance of the Company’s right to bill and receive consideration, typically resulting from sales under long-term contracts. Unbilled accounts receivable are generally expected to be billed and collected within one year. The unbilled accounts receivable will decrease as provided services or delivered products are billed. The Company receives payments from customers based on a billing schedule established in the Company’s contracts. When consideration is received in advance of the delivery of goods or services, a contract liability, or with respect to the Company, collections in excess of revenues or deferred revenues, is recorded. Reductions in the collections in excess of revenues or deferred revenues will be recorded as the Company satisfies the performance obligations. The following table presents contract assets and liabilities as of June 30, 2024 and March 31, 2024: As of As of (In thousands) Unbilled accounts receivable $ 173,967 $ 156,322 Collections in excess of revenues and deferred revenues 277,665 260,264 Deferred revenues, long-term portion 878,053 896,402 Unbilled accounts receivable increased by $ 17.6 million during the three months ended June 30, 2024, driven primarily by revenue recognized in excess of billings primarily in the Company's defense and advanced technologies segment. Collections in excess of revenues and deferred revenues increased by $ 17.4 million during the three months ended June 30, 2024, driven by advances on goods or services received in excess of revenue recognized within both of the Company's segments. During the three months ended June 30, 2024 , the Company recognized revenue of $ 106.3 million that was previously included in the Company’s collections in excess of revenues and deferred revenues at March 31, 2024. During the three months ended June 30, 2023 , the Company recognized revenue of $ 53.8 million that was previously included in the Company’s collections in excess of revenues and deferred revenues at March 31, 2023 . Cash equivalents Cash equivalents consist of highly liquid investments with original maturities of three months or less at the date of purchase, with a significant portion held in U.S. government-backed qualified money-market securities. Property, equipment and satellites Satellites and other property and equipment, including internally developed software, are recorded at cost or, in the case of certain satellites and other property acquired, the fair value at the date of acquisition, net of accumulated depreciation. Capitalized satellite costs consist primarily of the costs of satellite construction and launch, including launch insurance and insurance during the period of in-orbit testing, the net present value of performance incentives expected to be payable to satellite manufacturers (dependent on the continued satisfactory performance of the satellites), costs directly associated with the monitoring and support of satellite construction, and interest costs incurred during the period of satellite construction. The Company also constructs earth stations, network operations systems and other assets to support its satellites, and those construction costs, including interest, are capitalized as incurred. At the time satellites are placed in service, the Company estimates the useful life of its satellites for depreciation purposes based upon an analysis of each satellite’s performance against the original manufacturer’s orbital design life, estimated fuel levels and related consumption rates, as well as historical satellite operating trends. The Company periodically reviews the remaining estimated useful life of its satellites to determine if revisions to estimated useful lives are necessary. Costs incurred for additions to property, equipment and satellites, together with major renewals and betterments, are capitalized and depreciated over the remaining life of the underlying asset. Costs incurred for maintenance, repairs and minor renewals and betterments are charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the accounts and any resulting gain or loss is recognized in operations, which for the periods presented, primarily related to losses incurred for unreturned customer premise equipment (CPE). The Company computes depreciation using the straight-line method over the estimated useful lives of the assets ranging from two to 38 years . Leasehold improvements are capitalized and amortized using the straight-line method over the shorter of the lease term or the life of the improvement. Costs related to internally developed software for internal uses are capitalized after the preliminary project stage is complete and are amortized over the estimated useful lives of the assets, which are approximately three to seven years . Capitalized costs for internal-use software are included in property, equipment and satellites, net in the Company’s condensed consolidated balance sheets. Interest expense is capitalized on the carrying value of assets under construction, in accordance with the authoritative guidance for the capitalization of interest (ASC 835-20). With respect to the construction of satellites, gateway and networking equipment and other assets under construction, the Company capitalized $ 56.6 million of interest expense for the three months ended June 30, 2024 , and $ 56.7 million for the three months ended June 30, 2023. The Company's complementary fleet of 21 in service or operational satellites spans the Ka-, L- and S- bands, with 11 Ka-band satellites, eight L-band satellites (three of which are contingency L-band satellites that are operational but not currently in service), an S-band satellite that supports the European Aviation Network to provide IFC services to commercial airlines in Europe, and an I-6 class hybrid Ka-/L-band satellite (the I-6 F1 satellite). Subsequent to the quarter end, in late July 2024, the ViaSat-3 F1 satellite completed in-orbit testing and was integrated into the Company's existing satellite fleet covering the Americas. Furthermore, the Company has ten additional geostationary (GEO) and highly-elliptical earth orbit (HEO) satellites under development: two additional high-capacity Ka-band GEO satellites (ViaSat-3 F2 and ViaSat-3 F3), three additional adaptive Ka-band GEO satellites: (GX 7, GX 8 and GX 9), two Ka-band HEO satellite payloads intended to provide polar coverage (GX 10a and GX 10b) and three Inmarsat-8 L-band GEO safety service satellites. In addition to the Company's satellite fleet, the Company has purchased capacity on and has access to additional regional partner satellites. In addition, the Company owns related earth stations and networking equipment for all of its satellites. The Company procures CPE units leased to customers in order to connect to the Company's satellite network as part of the Company’s communication services segment, which are reflected in investing activities and property, equipment and satellites, net in the accompanying condensed consolidated financial statements. The Company depreciates the satellites, earth stations and networking equipment, CPE units and related installation costs over their estimated useful lives. The total cost and accumulated depreciation of CPE units included in property, equipment and satellites, net, as of June 30, 2024 were $ 554.6 million and $ 286.5 million, respectively. The total cost and accumulated depreciation of CPE units included in property, equipment and satellites, net, as of March 31, 2024 were $ 567.5 million and $ 267.4 million, respectively. The Company launched the first of its third-generation ViaSat-3 class satellites, ViaSat-3 F1, into orbit on April 30, 2023. On July 12, 2023, the Company reported a reflector deployment issue that materially impacted the performance of the ViaSat-3 F1 satellite. The Company and the reflector provider conducted a rigorous review of the development and deployment of the affected reflector to determine its impact and potential remedial measures. In connection with the root cause analysis, the Company determined that while the satellite payload is functional, the Company will recover less than 10 % of the planned throughput on the ViaSat-3 F1 satellite. On August 24, 2023, the Company reported that the I-6 F2 satellite, which was launched on February 18, 2023, suffered a power subsystem anomaly during its orbit raising phase. The Company and Airbus, the satellite's manufacturer, performed a root cause analysis of the anomaly and concluded the satellite would not operate as intended. The Company determined that the full carrying value of the I-6 F2 satellite is not recoverable. The I-6 F2 anomaly does not impact ongoing customer services. The I-6 F1 satellite, which was launched in December 2021, is operational and continues to perform as expected. As a result of the anomalies that occurred with respect to the ViaSat-3 F1 and I-6 F2 satellites, as well as the impact of integration efforts related to the Inmarsat Acquisition, the Company undertook extensive analysis of its existing integrated satellite fleet and ongoing satellites under construction projects, taking into account its anticipated future capacity needs, projected capital investment profile and access to third party satellites under existing bandwidth arrangements. Based on the impairment analysis performed during the second quarter of fiscal year 2024, as a result of the anomalies experienced in the two satellites and integration impact related to the Inmarsat Acquisition, the Company recorded a reduction to the carrying value of satellites under construction (including capitalized interest) and certain related assets of $ 1.67 billion during fiscal year 2024 (based on the Company's originally estimated ViaSat-3 F1 satellite output capabilities compared to the anticipated potential and configured capacity of the ViaSat-3 F1 satellite, the full value of the I-6 F2 satellite and the ViaSat-4 satellite program, each a separate asset group), which was partially offset by total insurance claim receivables of approximately $ 770.0 million recorded in the second quarter of fiscal year 2024. As a result, the Company recorded a net loss of approximately $ 905.5 million during the second and third quarters of fiscal year 2024, including liabilities associated with the termination of certain subcontractor agreements, in selling, general and administrative expenses in its communication services segment in the condensed consolidated statements of operations and comprehensive income (loss). During the first quarter of fiscal year 2025 and subsequent to the first quarter of fiscal year 2025, the Company received approximately $ 79.5 million and just over $ 38 million, respectively, in insurance recovery proceeds related to such claims. To date, the Company has received an aggregate of approximately $ 626 million in insurance recovery proceeds related to such claims. Occasionally, the Company may enter into finance lease arrangements for various machinery, equipment, computer-related equipment, software, furniture, fixtures, or satellites. The Company records amortization of assets leased under finance lease arrangements within depreciation expense. The Company’s finance leases consist primarily of satellite lifetime Ka-band capacity leases and have remaining terms from less than one year to two years . The Company reports assets obtained under finance leases in property, equipment and satellites, net and the current and non-current portions of its finance lease liabilities in current portion of long-term debt and other long-term debt, respectively (see Note 1 — Basis of Presentation – Leases for more information) . Cloud computing arrangements The Company enters into certain cloud-based software hosting arrangements that are accounted for as service contracts. Costs incurred for these arrangements are capitalized for application development activities, if material, and immediately expensed for preliminary project activities and postimplementation activities. The Company amortizes the capitalized |
Composition of Certain Balance
Composition of Certain Balance Sheet Captions | 3 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Composition of Certain Balance Sheet Captions | Note 2 — Composition of Certain Balance Sheet Captions As of As of (In thousands) Accounts receivable, net: Billed $ 546,790 $ 545,081 Unbilled 173,967 156,322 Allowance for doubtful accounts ( 25,868 ) ( 23,193 ) $ 694,889 $ 678,210 Inventories: Raw materials $ 100,978 $ 89,778 Work in process 33,153 31,884 Finished goods 195,698 196,216 $ 329,829 $ 317,878 Prepaid expenses and other current assets: Insurance receivable $ 182,000 $ 261,500 Prepaid expenses 189,525 185,892 Other 119,259 134,391 $ 490,784 $ 581,783 Property, equipment and satellites, net: Equipment and software (estimated useful life of 3 - 7 years ) $ 3,051,930 $ 2,992,325 CPE leased equipment (estimated useful life of 4 - 7 years ) 554,648 567,548 Furniture and fixtures (estimated useful life of 7 years) 65,338 65,433 Leasehold improvements (estimated useful life of 2 - 20 years ) 211,668 209,162 Buildings (estimated useful life of 12 - 38 years ) 16,649 16,647 Land 20,789 20,787 Construction in progress 1,361,156 1,301,376 Satellites (estimated useful life of 7 - 17 years ) 3,325,299 3,324,458 Satellite Ka-band capacity obtained under finance leases (estimated useful life of 7 - 11 years ) 177,576 177,576 Satellites under construction 2,071,760 1,976,469 10,856,813 10,651,781 Less: accumulated depreciation and amortization ( 3,325,004 ) ( 3,094,575 ) $ 7,531,809 $ 7,557,206 Other acquired intangible assets, net: Contracts and customer relationships (weighted average useful life of 11 years) $ 1,436,728 $ 1,437,738 Orbital slots and spectrum assets (weighted average useful life of 12 years) 1,088,600 1,088,600 Technology (weighted average useful life of 7 years) 248,846 251,889 Trade names (weighted average useful life of 8 years) 116,990 117,280 Other (weighted average useful life of 11 years) 21,739 21,792 2,912,903 2,917,299 Less: accumulated amortization ( 437,411 ) ( 372,832 ) $ 2,475,492 $ 2,544,467 Other assets: Deferred income taxes $ 164,909 $ 163,590 Capitalized software costs, net 245,134 240,597 Patents, orbital slots and other licenses, net 115,036 112,535 Other 226,746 217,225 $ 751,825 $ 733,947 Accrued and other liabilities: Collections in excess of revenues and deferred revenues $ 277,665 $ 260,264 Accrued employee compensation 85,092 177,854 Accrued vacation 49,576 48,636 Operating lease liabilities 69,808 71,561 Interest payable 75,534 127,098 Other 233,427 265,208 $ 791,102 $ 950,621 Other liabilities: Deferred revenues, long-term portion $ 878,053 $ 896,402 Deferred income taxes 1,223,012 1,228,270 Other 321,213 327,428 $ 2,422,278 $ 2,452,100 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 3 — Fair Value Measurements In accordance with the authoritative guidance for financial assets and liabilities measured at fair value on a recurring basis (ASC 820), the Company determines fair value based on the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants, and prioritizes the inputs used to measure fair value from market-based assumptions to entity specific assumptions: Level 1 — Inputs based on quoted market prices for identical assets or liabilities in active markets at the measurement date. Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 — Inputs which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation. The following tables present the Company's hierarchy for its assets measured at fair value on a recurring basis as of June 30, 2024 and March 31, 2024 . The Company had no liabilities measured at fair value on a recurring basis as of both June 30, 2024 and March 31, 2024. Fair Value as of Level 1 Level 2 Level 3 (In thousands) Assets: Cash equivalents $ 508,282 $ 508,282 $ — $ — Interest rate cap contracts 33,862 — 33,862 — Total assets measured at fair value on a recurring $ 542,144 $ 508,282 $ 33,862 $ — Fair Value as of Level 1 Level 2 Level 3 (In thousands) Assets: Cash equivalents $ 474,743 $ 474,743 $ — $ — Interest rate cap contracts 44,497 — 44,497 — Total assets measured at fair value on a recurring $ 519,240 $ 474,743 $ 44,497 $ — The following section describes the valuation methodologies the Company uses to measure financial instruments at fair value: Cash equivalents — The Company’s cash equivalents consist of money market funds, with a significant portion held in U.S. government backed qualified money market securities. Interest rate cap contracts — The Company assumed interest rate cap contracts to hedge the variable interest rate under the Inmarsat Term Loan Facilities (see Note 1 — Basis of Presentation – Derivatives for more information). The Company’s interest rate cap contracts are valued using the forward interest rate curve at each reporting date (Level 2). Long-term debt — As of June 30, 2024, the Company’s long-term debt was comprised of (1) $700.0 million in aggregate principal amount of Viasat's 5.625% Senior Notes due 2025 (the 2025 Notes), $600.0 million in aggregate principal amount of Viasat's 5.625% Senior Secured Notes due 2027 (the 2027 Notes), $400.0 million in aggregate principal amount of Viasat's 6.500% Senior Notes due 2028 (the 2028 Notes), $733.4 million in aggregate principal amount of Viasat’s 7.500% Senior Notes due 2031 (the 2031 Notes), $2.08 billion in aggregate principal amount of Inmarsat's 6.750% Senior Secured Notes due 2026 (the Inmarsat 2026 Notes), (2) borrowings under Viasat’s $700.0 million senior secured term loan facility (the 2022 Term Loan Facility), borrowings under Viasat’s $616.7 million senior secured term loan facility (the 2023 Term Loan Facility), borrowings under the Inmarsat Term Loan Facilities and borrowings under Viasat’s direct loan facility with the Export-Import Bank of the United States (the Ex-Im Credit Facility), and (3) finance lease obligations reported at the present value of future minimum lease payments with current accrued interest. Long-term debt related to the Revolving Credit Facilities is reported at the outstanding principal amount of borrowings, while long-term debt related to the Company's other Credit Facilities and the Notes is reported at amortized cost. However, for disclosure purposes, the Company is required to measure the fair value of outstanding debt on a recurring basis. The fair value of the Company’s long-term debt related to the Company's variable rate Credit Facilities approximates its carrying amount due to its variable interest rate, which approximates a market interest rate. As of June 30, 2024 and March 31, 2024 , the fair value of the Company’s long-term debt related to the Ex-Im Credit Facility was Level 2 and was approximately $ 28.8 million and $ 38.5 million, respectively. As of June 30, 2024 and March 31, 2024 , the estimated fair value of the Company’s outstanding long-term debt related to each series of Notes was Level 2 and was $ 679.0 million and $ 680.8 million, respectively, for the 2025 Notes, $ 535.5 million and $ 564.0 million, respectively, for the 2027 Notes, $ 303.0 million and $ 307.5 million, respectively, for the 2028 Notes, $ 484.7 million and $ 529.9 million, respectively, for the 2031 Notes, and $ 2.01 billion and $ 2.04 billion, respectively for the Inmarsat 2026 Notes. Satellite performance incentive obligations — The Company’s contracts with satellite manufacturers require the Company to make monthly in-orbit satellite performance incentive payments with respect to certain satellites in service, including interest, through fiscal year 2028 , subject to the continued satisfactory performance of the applicable satellites. The Company records the net present value of these expected future payments as a liability and as a component of the cost of the satellites. However, for disclosure purposes, the Company is required to measure the fair value of outstanding satellite performance incentive obligations on a recurring basis. The fair value of the Company’s outstanding satellite performance incentive obligations is estimated to approximate their carrying value based on current rates (Level 2). As of June 30, 2024 and March 31, 2024 , the Company’s estimated satellite performance incentive obligations relating to certain satellites in service, including accrued interest, were $ 14.8 million and $ 15.9 million, respectively. |
Acquisition
Acquisition | 3 Months Ended |
Jun. 30, 2024 | |
Business Combinations [Abstract] | |
Acquisitions | Note 4 — Acquisition In May 2023, the Company completed the acquisition of all outstanding shares of Inmarsat Holdings, a privately held leading provider of global mobile satellite communications services. The Inmarsat Acquisition positions the Company as a leading global communications innovator with enhanced scale and scope to connect the world affordably, securely and reliably. The complementary assets and resources of the combined company position the Company to provide advanced new services in mobile and fixed segments, driving greater customer choice in broadband communications and narrowband services (including the Internet of Things (IoT)). These benefits and additional opportunities were among the factors that contributed to a purchase price resulting in the recognition of goodwill of $ 1.5 billion which was recognized in the Company's communication services segment. The goodwill recognized was not deductible for U.S. and foreign income tax purposes. The consideration transferred of approximately $ 2.7 billion was comprised of $ 2.1 billion of the fair value of approximately 46.36 million shares of the Company’s common stock issued at the closing of the transaction and $ 550.7 million in cash consideration. In connection with the Inmarsat Acquisition, the Company recorded acquisition-related transaction costs of zero and $ 27.4 million during the three months ended June 30, 2024 and 2023, respectively, included in selling, general and administrative expenses. The purchase price allocation of the acquired assets and assumed liabilities in the Inmarsat Acquisition based on the estimated fair values as of May 30, 2023, adjusted since the closing of the Inmarsat Acquisition, primarily between property, equipment and satellites, identifiable intangible assets, deferred tax liabilities and goodwill, is as follows: (In thousands) Current assets $ 641,893 Property, equipment and satellites 4,363,049 Identifiable intangible assets 2,570,000 Other assets 388,745 Total assets acquired $ 7,963,687 Current liabilities ( 598,296 ) Long-term debt, excluding short-term portion ( 3,519,774 ) Other long-term liabilities ( 2,629,406 ) Total liabilities assumed $ ( 6,747,476 ) Goodwill 1,462,881 Total consideration transferred $ 2,679,092 Current liabilities and other long-term liabilities include approximately $ 29.6 million and $ 248.3 million, respectively, of unfavorable contract liabilities amortized into service revenue over a weighted average estimated useful life of approximately nine years . Amounts assigned to identifiable intangible assets are being amortized on a straight-line basis over their determined useful lives (which approximates the economic pattern of benefit) and are as follows as of May 30, 2023: Weighted Fair Value Average Useful Life (In thousands) (In years) Orbital slots and spectrum assets $ 1,080,000 12 Customer relationships 1,305,000 11 Technology 100,000 7 Trade names 85,000 8 Total identifiable intangible assets $ 2,570,000 11 Management determined the fair value of acquired customer relationships by applying the multi-period excess earnings method, which involved the use of significant judgments and assumptions related to revenue growth rates, customer attrition rates, discount rates, and contributory asset charges. Additionally, management determined the fair value of acquired orbital slots and spectrum assets using an avoided cost method, which involved the use of significant judgments and assumptions related to hypothetical lease payments, discount rates, and contributory asset charges. The intangible assets acquired in the Inmarsat Acquisition were determined in accordance with ASC 805, based on estimated fair values using valuation techniques consistent with the market approach, income approach and/or cost approach to measure fair value. The condensed consolidated financial statements include the operating results of Inmarsat from the date of its acquisition on May 30, 2023. The Company recorded approximately $ 134.1 million and an insignificant amount of revenue and net income, respectively, from the Inmarsat business during the three months ended June 30, 2023 for the period following the acquisition date, which was recorded in the Company's communication services segment in the condensed consolidated statements of operations. Unaudited Pro Forma Financial Information The unaudited financial information in the table below summarizes the combined results of operations for the Company and Inmarsat on a pro forma basis, as though the companies had been combined as of the beginning of fiscal year 2023, April 1, 2022. The pro forma information is presented for informational purposes only and may not be indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of the related fiscal periods. The pro forma financial information for the three months ended June 30, 2023 includes the business combination accounting effects primarily related to the amortization and depreciation changes from acquired intangible and tangible assets, interest expense from the debt issued to finance the acquisition, acquisition-related transaction costs and related tax effects. Three Months Ended June 30, 2023 (In thousands) Total revenues $ 1,050,226 Net income (loss) attributable to Viasat, Inc. $ ( 41,962 ) |
Shares Used In Computing Dilute
Shares Used In Computing Diluted Net Income (Loss) Per Share | 3 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Shares Used In Computing Diluted Net Income (Loss) Per Share | Note 5 — Shares Used In Computing Diluted Net Income (Loss) Per Share The weighted average number of shares used to calculate basic and diluted net loss per share attributable to Viasat, Inc. common stockholders is the same for the three months ended June 30, 2024 and 2023, as the Company incurred a net loss attributable to Viasat, Inc. common stockholders for such periods and inclusion of potentially dilutive weighted average shares of common stock would be antidilutive. Potentially dilutive weighted average shares excluded from the calculation for the three months ended June 30, 2024 and 2023 consisted of 221,949 shares and 209,581 shares, respectively, related to stock options (other than market-based performance stock options), zero and 1,714,844 shares, respectively, related to market-based performance stock options and market condition PSUs, 3,705,569 shares and 2,056,995 shares, respectively, related to restricted stock units (other than PSUs), 72,660 and zero shares, respectively, related to performance condition PSUs, and 1,666,593 shares and 626,271 shares, respectively, related to certain terms of the Viasat 401(k) Profit Sharing Plan and Employee Stock Purchase Plan. |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 3 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets | Note 6 — Goodwill and Acquired Intangible Assets During the three months ended June 30, 2024, the insignificant decrease in the Company’s goodwill primarily related to foreign currency translation effect recorded within both of the Company's segments. During the three months ended June 30, 2023, the increase in the Company’s goodwill primarily related to the Inmarsat Acquisition (see Note 4 — Acquisition for more information) and foreign currency translation effect recorded within both of the Company’s segments. Other acquired intangible assets are amortized using the straight-line method over their estimated useful lives of two to 20 years (which approximates the economic pattern of benefit). Amortization expense related to other acquired intangible assets was $ 66.2 million and $ 27.8 million for the three months ended June 30, 2024 and 2023 , respectively. |
Senior Notes and Other Long-Ter
Senior Notes and Other Long-Term Debt | 3 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Senior Notes and Other Long-Term Debt | Note 7 — Senior Notes and Other Long-Term Debt Total long-term debt consisted of the following as of June 30, 2024 and March 31, 2024: As of As of (In thousands) 2031 Notes $ 733,400 $ 733,400 2028 Notes 400,000 400,000 2027 Notes 600,000 600,000 Inmarsat 2026 Notes 2,075,000 2,075,000 2025 Notes 700,000 700,000 2022 Term Loan Facility 686,000 687,750 2023 Term Loan Facility 612,075 613,617 Inmarsat Term Loan Facilities 1,596,750 1,600,000 Ex-Im Credit Facility 29,478 39,304 Viasat Revolving Credit Facility — — Inmarsat Revolving Credit Facility — — Finance lease obligations (see Note 1) 23,666 26,771 Total debt 7,456,369 7,475,842 Unamortized discount, debt issuance costs and fair value adjustments made in purchase accounting ( 269,757 ) ( 288,553 ) Less: current portion of long-term debt 57,764 58,054 Total long-term debt $ 7,128,848 $ 7,129,235 2022 Term Loan Facility In March 2022, the Company entered into the $ 700.0 million 2022 Term Loan Facility, which was fully drawn at closing and matures on March 4, 2029 . At June 30, 2024, the Company had $ 686.0 million in principal amount of outstanding borrowings under the 2022 Term Loan Facility. Borrowings under the 2022 Term Loan Facility are required to be repaid in quarterly installments of $ 1.75 million each, which commenced on September 30, 2022 , followed by a final installment of $ 654.5 million at maturity. Borrowings under the 2022 Term Loan Facility bear interest, at the Company’s option, at either (1) a base rate equal to the greater of the administrative agent’s prime rate as announced from time to time, the federal funds effective rate plus 0.50%, and the forward-looking term SOFR rate administered by CME for a one-month interest period plus 1.00%, subject to a floor of 1.50% for the initial term loans, plus an applicable margin of 3.50%, or (2) the forward-looking term SOFR rate administered by CME for the applicable interest period, subject to a floor of 0.50% for the initial term loans, plus an applicable margin of 4.50%. As of June 30, 2024, the effective interest rate on the Company’s outstanding borrowings under the 2022 Term Loan Facility was 10.38 % . The 2022 Term Loan Facility is required to be guaranteed by certain significant domestic subsidiaries of the Company (as defined in the 2022 Term Loan Facility) and secured by substantially all of the Company’s and any such subsidiaries’ assets. As of June 30, 2024, none of the Company’s subsidiaries guaranteed the 2022 Term Loan Facility. The 2022 Term Loan Facility contains covenants that restrict, among other things, the ability of Company and its restricted subsidiaries to incur additional debt, grant liens, sell assets, make investments, pay dividends and make certain other restricted payments. The Company was in compliance with its financial covenants under the 2022 Term Loan Facility as of June 30, 2024. Borrowings under the 2022 Term Loan Facility are recorded as current portion of long-term debt and as other long-term debt, net of unamortized discount and debt issuance costs, in the Company’s condensed consolidated financial statements. The 2022 Term Loan Facility was issued with an original issue discount of 2.00 %, or $ 14.0 million. The original issue discount and deferred financing cost associated with the issuance of the borrowings under the 2022 Term Loan Facility are amortized to interest expense on a straight-line basis over the term of the 2022 Term Loan Facility, the results of which are not materially different from the effective interest rate basis. 2023 Term Loan Facility In connection with the closing of the Inmarsat Acquisition, on May 30, 2023, the Company entered into the $ 616.7 million 2023 Term Loan Facility, which was fully drawn at closing and matures on May 30, 2030 . At June 30, 2024, the Company had $ 612.1 million in principal amount of outstanding borrowings under the 2023 Term Loan Facility. Borrowings under the 2023 Term Loan Facility are required to be repaid in quarterly installments of $ 1.5 million each, which commenced on December 31, 2023 , followed by a final installment of $ 576.6 million at maturity. Borrowings under the 2023 Term Loan Facility bear interest, at the Company's option, at either (1) a base rate equal to the greater of the administrative agent’s prime rate as announced from time to time, the federal funds effective rate plus 0.50%, and the forward-looking term SOFR rate administered by CME for a one-month interest period plus 1.00%, subject to a floor of 1.50% for the initial term loans, plus an applicable margin of 3.50%, or (2) the forward-looking term SOFR rate administered by CME for the applicable interest period, subject to a floor of 0.50% for the initial term loans, plus an applicable margin of 4.50%, plus a credit spread adjustment ranging from 0.11% to 0.43%. As of June 30, 2024, the effective interest rate on the Company’s outstanding borrowings under the 2023 Term Loan Facility was 10.92 % . The 2023 Term Loan Facility is required to be guaranteed by certain significant domestic subsidiaries of the Company (as defined in the 2023 Term Loan Facility) and secured by substantially all of the Company’s assets and any such subsidiaries' assets. As of June 30, 2024, none of the Company’s subsidiaries guaranteed the 2023 Term Loan Facility. The 2023 Term Loan Facility contains covenants that restrict, among other things, the ability of Company and its restricted subsidiaries to incur additional debt, grant liens, sell assets, make investments, pay dividends and make certain other restricted payments. The Company was in compliance with its financial covenants under the 2023 Term Loan Facility as of June 30, 2024. Borrowings under the 2023 Term Loan Facility are recorded as current portion of long-term debt and as other long-term debt, net of unamortized discount and debt issuance costs, in the Company’s condensed consolidated financial statements. The 2023 Term Loan Facility was issued with an original issue discount of 2.50 %, or $ 15.4 million. The original issue discount and deferred financing cost associated with the issuance of the borrowings under the 2023 Term Loan Facility are amortized to interest expense on a straight-line basis over the term of the 2023 Term Loan Facility, the results of which are not materially different from the effective interest rate basis. Ex-Im Credit Facility The Ex-Im Credit Facility originally provided a $ 362.4 million senior secured direct loan facility, which was fully drawn. Of the $ 362.4 million in principal amount of borrowings made under the Ex-Im Credit Facility, $ 321.2 million was used to finance up to 85 % of the costs of construction, launch and insurance of the ViaSat-2 satellite and related goods and services (including costs incurred on or after September 18, 2012), with the remaining $ 41.2 million used to finance the total exposure fees incurred under the Ex-Im Credit Facility (which included all previously accrued completion exposure fees). As of June 30, 2024, the Company had $ 29.5 million in principal amount of outstanding borrowings under the Ex-Im Credit Facility. Borrowings under the Ex-Im Credit Facility bear interest at a fixed rate of 2.38 %, payable semi-annually in arrears. The effective interest rate on the Company’s outstanding borrowings under the Ex-Im Credit Facility, which takes into account timing and amount of borrowings and payments, exposure fees, debt issuance costs and other fees, is 4.54 %. Borrowings under the Ex-Im Credit Facility are required to be repaid in 16 semi-annual principal installments, which commenced on April 15, 2018 , with a maturity date of October 15, 2025 . The Ex-Im Credit Facility is guaranteed by Viasat and is secured by first-priority liens on the ViaSat-2 satellite and related assets, as well as a pledge of the capital stock of the borrower under the facility. The Ex-Im Credit Facility contains financial covenants regarding Viasat’s maximum total leverage ratio and minimum interest coverage ratio. In addition, the Ex-Im Credit Facility contains covenants that restrict, among other things, the Company’s ability to sell assets, make investments and acquisitions, make capital expenditures, grant liens, pay dividends and make certain other restricted payments. The Company was in compliance with its financial covenants under the Ex-Im Credit Facility as of June 30, 2024. Borrowings under the Ex-Im Credit Facility are recorded as current portion of long-term debt and as other long-term debt, net of unamortized discount and debt issuance costs, in the Company’s condensed consolidated financial statements. The discount of $ 42.3 million (consisting of the initial $ 6.0 million pre-exposure fee, $ 35.3 million of completion exposure fees, and other customary fees) and deferred financing cost associated with the issuance of the borrowings under the Ex-Im Credit Facility are amortized to interest expense on an effective interest rate basis over the weighted average term of the Ex-Im Credit Facility and in accordance with the related payment obligations. Viasat Revolving Credit Facility As of June 30, 2024, Viasat's revolving credit facility (the Viasat Revolving Credit Facility) provided a $ 647.5 million revolving line of credit (including up to $ 150.0 million of letters of credit), with a maturity date of the earliest of (A) August 24, 2028 and (B) t he springing maturity date (as defined in the Viasat Revolving Credit Agreement, which is effectively 91 days prior to the maturity date of certain material debt for borrowed money of Viasat and its subsidiaries to the extent certain conditions have not been satisfied as of such date) . At June 30, 2024, the Company had no outstanding borrowings under the Viasat Revolving Credit Facility and $ 59.2 million outstanding under standby letters of credit, leaving borrowing availability under the Viasat Revolving Credit Facility as of June 30, 2024 of $ 588.3 million. Borrowings under the Viasat Revolving Credit Facility bear interest, at the Company’s option, at either (1) the highest of the federal funds rate plus 0.50%, forward-looking term SOFR (as defined in the definitive credit agreement governing the Viasat Revolving Credit Facility) for an interest period of one month plus 1.00%, or the administrative agent’s prime rate as announced from time to time, or (2) forward-looking term SOFR (not to be less than 0.00% per annum), plus, in the case of each of (1) and (2), an applicable margin that is based on the Company’s total leverage ratio. The Company has capitalized certain amounts of interest expense on the Viasat Revolving Credit Facility in connection with the construction of various assets during the construction period. The Viasat Revolving Credit Facility is required to be guaranteed by certain significant domestic subsidiaries of the Company (as defined in the Viasat Revolving Credit Facility) and secured by substantially all of the Company’s and any such subsidiaries’ assets. As of June 30, 2024, none of the Company’s subsidiaries guaranteed the Viasat Revolving Credit Facility. The Viasat Revolving Credit Facility contains financial covenants regarding a maximum total leverage ratio and a minimum interest coverage ratio. In addition, the Viasat Revolving Credit Facility contains covenants that restrict, among other things, the Company’s ability to incur additional debt, grant liens, sell assets, make investments and acquisitions, make capital expenditures, pay dividends and make certain other restricted payments. The Company was in compliance with its financial covenants under the Viasat Revolving Credit Facility as of June 30, 2024 . Inmarsat Secured Credit Facilities As of June 30, 2024 , the Inmarsat Secured Credit Facilities comprised an aggregate of $ 1.6 billion of Inmarsat Term Loan Facilities (consisting of the new $ 1.3 billion New Term Loan Facility and $ 300.0 million in aggregate principal amount of outstanding borrowings under the prior Inmarsat term loan facility (the Original Term Loan Facility)) and Inmarsat's $550.0 million revolving line of credit (including up to $ 100.0 million of letters of credit) (the Inmarsat Revolving Credit Facility). As of June 30, 2024, Inmarsat had $1.6 billion in principal amount of outstanding borrowings under the Inmarsat Term Loan Facilities. As of June 30, 2024 , the Inmarsat Revolving Credit Facility was undrawn and there were no amounts outstanding under standby letters of credit, leaving borrowing availability under the Inmarsat Revolving Credit Facility as of June 30, 2024 of $ 550.0 million. On March 28, 2024, the Inmarsat Secured Credit Facilities were amended to (among other matters): (1) provide for the $ 1.3 billion New Term Loan Facility, the proceeds of which, together with cash on hand, were used to repay approximately $ 1.38 billion of the outstanding borrowings under the Original Term Loan Facility, resulting in $ 300.0 million in principal amount of borrowings remaining outstanding under the Original Term Loan Facility at the closing of the amendment, and (2) replace the prior $ 700.0 million revolving credit facility maturing in December 2024 with a new $ 550.0 million (undrawn) Inmarsat Revolving Credit Facility that matures in March 2027 or earlier and due on such date if more than $ 100.0 million of borrowings are outstanding 91 days prior to the maturity of either the Original Term Loan Facility or the Inmarsat 2026 Notes. The maturity date for the New Term Loan Facility is September 28, 2029 . Borrowings under the New Term Loan Facility are required to be repaid in quarterly installments of $ 3.25 million each, beginning in the quarter ending June 30, 2024 , followed by a final installment of $ 1.23 billion at maturity. As a result of the voluntary prepayments at the closing of the amendment, all quarterly amortization installments with respect to the Original Term Loan Facility have been reduced to $ 0 , with the only remaining scheduled principal repayment being a final installment of $ 300.0 million at the maturity date on December 12, 2026 . Borrowings under the Inmarsat Secured Credit Facilities: (1) in the case of borrowings denominated in U.S. Dollars, bear interest, at Inmarsat's option, at either (i) the highest of (x) for the Original Term Loan Facility, the greater of the federal funds rate or the overnight banking fund rate for such day plus 0.50% and for the New Term Loan Facility, the federal funds rate plus 0.50%, (y) the forward-looking one-month term SOFR rate plus 1.00% or (z) the administrative agent's prime rate as announced from time to time, or (ii) the forward-looking term SOFR rate for the applicable interest period (subject to, in the case of the New Term Loan Facility, a floor of 0.50% per annum, in the case of the Inmarsat Revolving Credit Facility, a floor of 0.00% per annum and, in the case of the Original Term Loan Facility, a floor of 1.00% per annum), and (2) in the case of borrowings denominated in available currencies other than U.S. Dollars, bear interest based upon the applicable benchmark for such currencies (as described in the Inmarsat Secured Credit Facilities) plus, in all cases, an applicable margin. The applicable margin for the Original Term Loan Facility is 2.50% per annum for base rate loans and 3.50% per annum for SOFR loans. The applicable margin for the New Term Loan Facility is 3.50% per annum for base rate loans and 4.50% per annum for SOFR loans. The applicable margin for borrowings under the Inmarsat Revolving Credit Facility is based on Inmarsat’s total net leverage ratio and ranges between 1.50% and 2.25% per annum for base rate loans and 2.50% and 3.25% per annum for SOFR loans. As of June 30, 2024, the weighted average effective interest rate on the Company's outstanding borrowings under the Inmarsat Term Loan Facilities, including the impact of interest rate cap contracts (see Note 1 — Basis of Presentation – Derivatives for more information), was approximately 9.48 % . The Inmarsat Secured Credit Facilities are required to be guaranteed by certain material Inmarsat subsidiaries and secured by substantially all of the assets of the Inmarsat borrowers and subsidiary guarantors. The Inmarsat Secured Credit Facilities contain covenants that restrict, among other things, Inmarsat’s ability to incur additional debt, grant liens, sell assets, make investments and acquisitions, pay dividends and make certain other restricted payments. In addition, financial covenants regarding Inmarsat’s total net leverage ratio and interest coverage ratio apply to the Inmarsat Revolving Credit Facility. The borrowers under the Inmarsat Secured Credit Facilities were in compliance with the financial covenants under the Inmarsat Secured Credit Facilities as of June 30, 2024 . Borrowings under the Inmarsat Term Loan Facilities are recorded as current portion of long-term debt and as other long-term debt, net of unamortized discount, unamortized fair value adjustment made in purchase accounting and debt issuance costs, in the Company’s condensed consolidated financial statements. The New Term Loan Facility was issued with an original issue discount of 2.00 %. Senior Notes Senior Notes due 2031 On September 28, 2023, the Company issued $ 733.4 million in principal amount of 2031 Notes in a private placement to institutional buyers to replace the $ 733.4 million unsecured bridge loan facility that was entered into in connection with the closing of the Inmarsat Acquisition on May 30, 2023. The 2031 Notes were issued at face value and are recorded as long-term debt, net of debt issuance costs, in the Company’s condensed consolidated financial statements. The 2031 Notes bear interest at the rate of 7.500 % per year, payable semi-annually in cash in arrears, which interest payments commenced at the end of May 2024. Debt issuance costs associated with the issuance of the 2031 Notes are amortized to interest expense on a straight-line basis over the term of the 2031 Notes, the results of which are not materially different from the effective interest rate basis. The 2031 Notes are required to be guaranteed on an unsecured senior basis by each of the Company’s existing and future subsidiaries that guarantees the Viasat Revolving Credit Facility. As of June 30, 2024, none of the Company’s subsidiaries guaranteed the 2031 Notes. The 2031 Notes are the Company’s general senior unsecured obligations and rank equally in right of payment with all of the Company’s existing and future unsecured unsubordinated debt. The 2031 Notes are effectively junior in right of payment to the Company’s existing and future secured debt, including under the Credit Facilities and the 2027 Notes (to the extent of the value of the assets securing such debt), are structurally subordinated to all existing and future liabilities (including trade payables) of the Company’s subsidiaries that do not guarantee the 2031 Notes, and are senior in right of payment to all of the Company’s existing and future subordinated indebtedness. The indenture governing the 2031 Notes limits, among other things, the Company’s and its restricted subsidiaries’ ability to: incur, assume or guarantee additional debt; issue redeemable stock and preferred stock; pay dividends, make distributions or redeem or repurchase capital stock; prepay, redeem or repurchase subordinated debt; make loans and investments; grant or incur liens; restrict dividends, loans or asset transfers from restricted subsidiaries; sell or otherwise dispose of assets; enter into transactions with affiliates; reduce the Company’s satellite insurance; and consolidate or merge with, or sell substantially all of their assets to, another person. Prior to May 30, 2026, the Company may redeem up to 40% of the 2031 Notes at a redemption price of 107.500 % of the principal amount thereof, plus accrued and unpaid interest, if any, thereon to the redemption date, from the net cash proceeds of specified equity offerings. The Company may also redeem the 2031 Notes prior to May 30, 2026, in whole or in part, at a redemption price equal to 100 % of the principal amount thereof plus a “make whole” premium and any accrued and unpaid interest, if any, thereon to the redemption date. The 2031 Notes may be redeemed, in whole or in part, at any time during the 12 months beginning on May 30, 2026 at a redemption price of 103.750 % , during the 12 months beginning on May 30, 2027 at a redemption price of 101.875 % , and at any time on or after May 30, 2028 at a redemption price of 100 %, in each case plus accrued and unpaid interest, if any, thereon to the redemption date. In the event a change of control triggering event occurs (as defined in the indenture governing the 2031 Notes), each holder will have the right to require the Company to repurchase all or any part of such holder’s 2031 Notes at a purchase price in cash equal to 101 % of the aggregate principal amount of the 2031 Notes repurchased, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date). Senior Notes due 2028 In June 2020, the Company issued $ 400.0 million in principal amount of 2028 Notes in a private placement to institutional buyers. The 2028 Notes were issued at face value and are recorded as long-term debt, net of debt issuance costs, in the Company’s condensed consolidated financial statements. The 2028 Notes bear interest at the rate of 6.500 % per year, payable semi-annually in cash in arrears, which interest payments commenced in January 2021. Debt issuance costs associated with the issuance of the 2028 Notes are amortized to interest expense on a straight-line basis over the term of the 2028 Notes, the results of which are not materially different from the effective interest rate basis. The 2028 Notes are required to be guaranteed on an unsecured senior basis by each of the Company’s existing and future subsidiaries that guarantees the Viasat Revolving Credit Facility. As of June 30, 2024, none of the Company’s subsidiaries guaranteed the 2028 Notes. The 2028 Notes are the Company’s general senior unsecured obligations and rank equally in right of payment with all of the Company’s existing and future unsecured unsubordinated debt. The 2028 Notes are effectively junior in right of payment to the Company’s existing and future secured debt, including under the Credit Facilities and the 2027 Notes (to the extent of the value of the assets securing such debt), are structurally subordinated to all existing and future liabilities (including trade payables) of the Company’s subsidiaries that do not guarantee the 2028 Notes, and are senior in right of payment to all of the Company’s existing and future subordinated indebtedness. The indenture governing the 2028 Notes limits, among other things, the Company’s and its restricted subsidiaries’ ability to: incur, assume or guarantee additional debt; issue redeemable stock and preferred stock; pay dividends, make distributions or redeem or repurchase capital stock; prepay, redeem or repurchase subordinated debt; make loans and investments; grant or incur liens; restrict dividends, loans or asset transfers from restricted subsidiaries; sell or otherwise dispose of assets; enter into transactions with affiliates; reduce the Company’s satellite insurance; and consolidate or merge with, or sell substantially all of their assets to, another person. The 2028 Notes may be redeemed, in whole or in part, at any time during the 12 months beginning on July 15, 2024 at a redemption price of 101.625 % , and at any time on or after July 15, 2025 at a redemption price of 100 %, in each case plus accrued and unpaid interest, if any, thereon to the redemption date. In the event a change of control triggering event occurs (as defined in the indenture governing the 2028 Notes), each holder will have the right to require the Company to repurchase all or any part of such holder’s 2028 Notes at a purchase price in cash equal to 101 % of the aggregate principal amount of the 2028 Notes repurchased, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date). Senior Secured Notes due 2027 In March 2019, the Company issued $ 600.0 million in principal amount of 2027 Notes in a private placement to institutional buyers. The 2027 Notes were issued at face value and are recorded as long-term debt, net of debt issuance costs, in the Company’s condensed consolidated financial statements. The 2027 Notes bear interest at the rate of 5.625 % per year, payable semi-annually in cash in arrears, which interest payments commenced in October 2019. Debt issuance costs associated with the issuance of the 2027 Notes are amortized to interest expense on a straight-line basis over the term of the 2027 Notes, the results of which are not materially different from the effective interest rate basis. The 2027 Notes are required to be guaranteed on a senior secured basis by each of the Company’s existing and future subsidiaries that guarantees the Viasat Revolving Credit Facility. As of June 30, 2024, none of the Company’s subsidiaries guaranteed the 2027 Notes. The 2027 Notes are secured, equally and ratably with the 2022 Term Loan Facility, the 2023 Term Loan Facility, the Viasat Revolving Credit Facility and any future parity lien debt, by liens on substantially all of the Company’s and such subsidiaries' assets. The 2027 Notes are the Company’s general senior secured obligations and rank equally in right of payment with all of its existing and future unsubordinated debt. The 2027 Notes are effectively senior to all of the Company’s existing and future unsecured debt (including the 2025 Notes, the 2028 Notes and the 2031 Notes) as well as to all of any permitted junior lien debt that may be incurred in the future, in each case to the extent of the value of the assets securing the 2027 Notes. The 2027 Notes are effectively subordinated to any obligations that are secured by liens on assets that do not constitute a part of the collateral securing the 2027 Notes (such as the Inmarsat 2026 Notes), are structurally subordinated to all existing and future liabilities (including trade payables) of the Company’s subsidiaries that do not guarantee the 2027 Notes, and are senior in right of payment to all of the Company’s existing and future subordinated indebtedness. The indenture governing the 2027 Notes limits, among other things, the Company’s and its restricted subsidiaries’ ability to: incur, assume or guarantee additional debt; issue redeemable stock and preferred stock; pay dividends, make distributions or redeem or repurchase capital stock; prepay, redeem or repurchase subordinated debt; make loans and investments; grant or incur liens; restrict dividends, loans or asset transfers from restricted subsidiaries; sell or otherwise dispose of assets; enter into transactions with affiliates; reduce the Company’s satellite insurance; and consolidate or merge with, or sell substantially all of their assets to, another person. The 2027 Notes may be redeemed, in whole or in part, at any time at a redemption price of 100 % plus accrued and unpaid interest, if any, thereon to the redemption date. In the event a change of control triggering event occurs (as defined in the indenture governing the 2027 Notes), each holder will have the right to require the Company to repurchase all or any part of such holder’s 2027 Notes at a purchase price in cash equal to 101 % of the aggregate principal amount of the 2027 Notes repurchased, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date). Senior Notes due 2025 In September 2017, the Company issued $ 700.0 million in principal amount of 2025 Notes in a private placement to institutional buyers. In July 2024, subsequent to quarter end, the Company repurchased $ 50.5 million in aggregate principal amount of 2025 Notes in open market transactions. The 2025 Notes were issued at face value and are recorded as long-term debt, net of debt issuance costs, in the Company’s condensed consolidated financial statements. The 2025 Notes bear interest at the rate of 5.625 % per year, payable semi-annually in cash in arrears, which interest payments commenced in March 2018. Debt issuance costs associated with the issuance of the 2025 Notes are amortized to interest expense on a straight-line basis over the term of the 2025 Notes, the results of which are not materially different from the effective interest rate basis. The 2025 Notes are required to be guaranteed on an unsecured senior basis by each of the Company’s existing and future subsidiaries that guarantees the Viasat Revolving Credit Facility. As of June 30, 2024, none of the Company’s subsidiaries guaranteed the 2025 Notes. The 2025 Notes are the Company’s general senior unsecured obligations and rank equally in right of payment with all of the Company’s existing and future unsecured unsubordinated debt. The 2025 Notes are effectively junior in right of payment to the Company’s existing and future secured debt, including under the Credit Facilities and the 2027 Notes (to the extent of the value of the assets securing such debt), are structurally subordinated to all existing and future liabilities (including trade payables) of the Company’s subsidiaries that do not guarantee the 2025 Notes, and are senior in right of payment to all of the Company’s existing and future subordinated indebtedness. The indenture governing the 2025 Notes limits, among other things, the Company’s and its restricted subsidiaries’ ability to: incur, assume or guarantee additional debt; issue redeemable stock and preferred stock; pay dividends, make distributions or redeem or repurchase capital stock; prepay, redeem or repurchase subordinated debt; make loans and investments; grant or incur liens; restrict dividends, loans or asset transfers from restricted subsidiaries; sell or otherwise dispose of assets; enter into transactions with affiliates; reduce the Company’s satellite insurance; and consolidate or merge with, or sell substantially all of their assets to, another person. The 2025 Notes may be redeemed, in whole or in part, at any time at a redemption price of 100 % plus accrued and unpaid interest, if any, thereon to the redemption date. In the event a change of control triggering event occurs (as defined in the indenture governing the 2025 Notes), each holder will have the right to require the Company to repurchase all or any part of such holder’s 2025 Notes at a purchase price in cash equal to 101 % of the aggregate principal amount of the 2025 Notes repurchased, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date). Inmarsat Senior Secured Notes due 2026 In October 2019, certain subsidiaries of Inmarsat Holdings issued $ 2.08 billion in principal amount of Inmarsat 2026 Notes in a private placement to institutional buyers. In July 2024, subsequent to quarter end, Inmarsat repurchased $ 101.7 million in aggregate principal amount of Inmarsat 2026 Notes in open market transactions. The Inmarsat 2026 Notes bear interest at the rate of 6.750 % per year, payable semi-annually in cash in arrears. The Inmarsat 2026 Notes are secured by pari passu first priority liens on the collateral securing the Inmarsat Secured Credit Facilities, and are required to be guaranteed on a senior secured basis by restricted subsidiaries of Inmarsat Holdings that guarantee or are borrowers under Inmarsat’s senior secured indebtedness, subject to exceptions. The Inmarsat 2026 Notes are required to be guaranteed by the subsidiaries guaranteeing the Inmarsat Secured Credit Facilities. The indenture governing the Inmarsat 2026 Notes limits, among other things, the ability of the issuers and their restricted subsidiaries to: incur, assume or guarantee additional debt; issue redeemable stock and preferred stock; pay dividends, make distributions or redeem or repurchase capital stock; prepay, redeem or repurchase subordinated debt; make loans and investments; grant or incur liens; restrict dividends, loans or asset transfers from restricted subsidiaries; sell or otherwise dispose of assets; enter into transactions with affiliates; and consolidate or merge |
Related-Party Transactions
Related-Party Transactions | 3 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Note 8 — Related-Party Transactions In the normal course of business, the Company engages in transactions with its equity method investments (Navarino UK and JSAT Mobile), which are considered related-party transactions. The Company recognized revenue from Navarino UK and JSAT Mobile for the three months ended June 30, 2024 and 2023 of $ 16.8 million and $ 6.1 million, respectively. The Company received cash of $ 19.3 million and $ 5.9 million from Navarino UK and JSAT Mobile for the three months ended June 30, 2024 and 2023, respectively. Accounts receivable from Navarino UK and JSAT Mobile as of June 30, 2024 and March 31, 2024 was $ 9.6 million and $ 13.2 million, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 — Commitments and Contingencies From time to time, the Company enters into satellite construction agreements as well as various other satellite-related purchase commitments, including with respect to the provision of launch services, operation of its satellites and satellite insurance. See Note 14 — Commitments to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended March 31, 2024 for information regarding the Company’s future minimum payments under its satellite construction contracts and other satellite-related purchase commitments. Periodically, the Company is involved in a variety of claims, suits, investigations and proceedings arising in the ordinary course of business, including government investigations and claims, and other claims and proceedings with respect to intellectual property, breach of contract, labor and employment, tax and other matters. Such matters could result in fines; penalties, compensatory, treble or other damages; or non-monetary relief. A violation of government contract laws and regulations could also result in the termination of its government contracts or debarment from bidding on future government contracts. Although claims, suits, investigations and proceedings are inherently uncertain and their results cannot be predicted with certainty, the Company believes that the resolution of its current pending matters will not have a material adverse effect on its business, financial condition, results of operations or liquidity. The Company has contracts with various U.S. Government agencies. Accordingly, the Company is routinely subject to audit and review by the DCMA, the DCAA and other U.S. Government agencies of its performance on government contracts, indirect rates and pricing practices, accounting and management internal control business systems, and compliance with applicable contracting and procurement laws, regulations and standards. An adverse outcome to a review or audit or other failure to comply with applicable contracting and procurement laws, regulations and standards could result in material civil and criminal penalties and administrative sanctions being imposed on the Company, which may include termination of contracts, forfeiture of profits, triggering of price reduction clauses, suspension of payments, significant customer refunds, fines and suspension, or a prohibition on doing business with U.S. Government agencies. In addition, if the Company fails to obtain an “adequate” determination of its various accounting and management internal control business systems from applicable U.S. Government agencies or if allegations of impropriety are made against it, the Company could suffer serious harm to its business or its reputation, including its ability to bid on new contracts or receive contract renewals and its competitive position in the bidding process. As of June 30, 2024 , the DCMA had approved the Company’s incurred costs through fiscal year 2022. The DCMA is currently auditing the Company's fiscal year 2023 incurred cost submission. The Company's cost accounting practices are examined for compliance with the applicable CAS. Although the Company has recorded contract revenues subsequent to fiscal year 2022 based upon an estimate of costs that the Company believes will be approved upon final audit or review, the Company does not know the outcome of any ongoing or future audits or reviews and adjustments and if future adjustments exceed the Company’s estimates its profitability would be adversely affected. The Company had $ 7.4 million and $ 16.6 million as of June 30, 2024 and March 31, 2024, respectively, in contract-related reserves for its estimate of potential refunds to customers for potential cost adjustments on several multi-year U.S. Government cost reimbursable contracts. This reserve is classified as either an element of accrued liabilities or as a reduction of unbilled accounts receivable based on the status of the related contracts. In September 2023, the Company settled certain pending litigation. Under the terms of the settlement and licensing agreement, the Company receives certain payments, which may vary based on sales of licensed products. In April 2024, the Company received a payment of approximately $ 41.7 million, which was recognized as product revenue for the three months ended June 30, 2024 in the Company’s defense and advanced technologies segment. The Company may from time to time receive additional licensing and royalty payments under the settlement and licensing agreement. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 — Income Taxes For the three months ended June 30, 2024, the Company recorded an income tax provision of $ 1.2 million resulting in an effective tax rate of negative 5 % . The effective tax rate for the period differed from the U.S. statutory rate primarily due to a U.S. valuation allowance and foreign tax rate differences. For the three months ended June 30, 2023, the Company recorded an income tax benefit of an insignificant amount, resulting in effective tax rate of 1 % . The effective tax rate for the period differed from the U.S. statutory rate primarily due to the benefit of federal R&D tax credits offset by expense for non-deductible transaction costs related to the Inmarsat Acquisition. The Company's total valuation allowance decreased from $ 353.6 million at March 31, 2024 to $ 352.9 million at June 30, 2024 relating to carryforwards for federal, state, and foreign net operating losses, federal and state R&D tax credits, and foreign tax credits. For the three months ended June 30, 2024 , the Company’s gross unrecognized tax benefits increased by an insignificant amount and interest and penalties decreased by $ 1.1 million. Of the total $ 186.4 million gross unrecognized tax benefits at June 30, 2024 , $ 16.2 million would reduce the Company's annual effective tax rate if recognized based on the Company's valuation allowance position at June 30, 2024 . |
Segment Information
Segment Information | 3 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Note 11 — Segment Information The Company reports its results in two separate segments consisting of communications services and defense and advanced technologies. The Company's segments are determined consistent with the way management currently organizes and evaluates financial information internally for making operating decisions and assessing performance. Due to the resegmentation that was implemented commencing with the first quarter of fiscal year 2025, prior period segment amounts have been recast to conform to the current segment presentation. The Company’s reportable segments (communication services and defense and advanced technologies) have been determined based upon their market and economic characteristics while also giving consideration to the structure and management of various business lines. The reportable segments are primarily determined based upon industry categories and core competencies relating to product or service end market distribution, operations, and servicing and distinguished by the type of customer and, to a lesser extent, the related contractual requirements. The Company’s communication services segment provides a wide range of broadband and narrowband communications solutions across government and commercial mobility markets, as well as for fixed and residential broadband customers. In addition, this segment includes the development and sale of a wide array of advanced satellite and wireless products, and networks and terminal solutions that support or enable the provision of fixed and mobile broadband and narrowband services. The Company’s defense and advanced technologies segment develops and offers a diverse array of resilient, vertically integrated solutions to government and commercial customers, leveraging the Company’s technical competencies in encryption, cyber security, tactical gateway, modems and waveforms. The more regulated government environment for defense , encryption and other products is subject to unique contractual requirements and possesses economic characteristics that differ from the communication services segment. Segment revenues and operating profits (losses) for the three months ended June 30, 2024 and 2023 were as follows: Three Months Ended June 30, 2024 June 30, 2023 (In thousands) Revenues: Communication services Aviation services $ 257,155 $ 151,112 Government satcom services 183,873 82,624 Maritime services 123,947 45,345 Fixed services and other services 201,636 214,692 Total services 766,611 493,773 Total products 60,176 66,487 Total communication services revenues 826,787 560,260 Defense and advanced technologies Total services 54,110 49,646 Information security and cyber defense products 55,507 56,676 Space and mission systems products 73,306 72,387 Tactical networking products 71,410 37,384 Advanced technologies and other products 45,340 3,438 Total products 245,563 169,885 Total defense and advanced technologies revenues 299,673 219,531 Elimination of intersegment revenues — — Total revenues $ 1,126,460 $ 779,791 Operating profits (losses): Communication services $ 41,939 $ ( 9,943 ) Defense and advanced technologies 84,011 ( 3,762 ) Elimination of intersegment operating — — Segment operating profit (loss) before corporate 125,950 ( 13,705 ) Corporate — — Amortization of acquired intangible ( 66,215 ) ( 27,811 ) Income (loss) from operations $ 59,735 $ ( 41,516 ) Assets identifiable to segments include accounts receivable, unbilled accounts receivable, inventory, acquired intangible assets and goodwill, which identification is consistent with the information provided to the Company's chief operating decision maker for purposes of evaluating segment performance or allocating resources. Segment assets as of June 30, 2024 and March 31, 2024 were as follows: As of As of (In thousands) Segment assets: Communication services $ 4,752,423 $ 4,819,535 Defense and advanced technologies 367,759 341,450 Total segment assets 5,120,182 5,160,985 Corporate assets 10,967,687 11,168,379 Total assets $ 16,087,869 $ 16,329,364 Other acquired intangible assets, net and goodwill included in segment assets as of June 30, 2024 and March 31, 2024 were as follows: Other Acquired Intangible Goodwill As of As of As of As of (In thousands) Communication services $ 2,475,492 $ 2,544,315 $ 1,581,631 $ 1,581,937 Defense and advanced technologies — 152 39,842 39,826 Total $ 2,475,492 $ 2,544,467 $ 1,621,473 $ 1,621,763 Depreciation and amortization of intangible assets allocated to segments for the three months ended June 30, 2024 and 2023 was as follows: Three Months Ended June 30, 2024 June 30, 2023 (In thousands) Communication services $ 249,133 $ 134,783 Defense and advanced technologies 15,856 11,985 Corporate (1) 66,215 27,811 Total depreciation and amortization of $ 331,204 $ 174,579 (1) Corporate amounts include the amortization of acquired intangible assets as they are not considered part of management’s evaluation of segment performance. Revenues by geographic area for the three months ended June 30, 2024 and 2023 were as follows: Three Months Ended June 30, 2024 June 30, 2023 (In thousands) U.S. customers $ 776,495 $ 593,162 Non-U.S. customers (each country individually insignificant) 349,965 186,629 Total revenues $ 1,126,460 $ 779,791 The Company distinguishes revenues from external customers by geographic area based on customer location. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 12 — Subsequent Events In July 2024, subsequent to quarter end, the Company and Inmarsat repurchased $ 152.2 million in aggregate principal amount of the Company's and Inmarsat's outstanding notes in open market transactions, consisting of approximately $ 101.7 million of Inmarsat 2026 Notes and $ 50.5 million of 2025 Notes. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Principles of consolidation | The Company’s condensed consolidated financial statements include the assets, liabilities and results of operations of Viasat, its wholly owned subsidiaries and its majority-owned subsidiary, TrellisWare Technologies, Inc. (TrellisWare). All significant intercompany amounts have been eliminated. Investments in entities in which the Company can exercise significant influence, but does not own a majority equity interest or otherwise control, are accounted for using the equity method and are included as investment in unconsolidated affiliate in other assets (long-term) on the condensed consolidated balance sheets. On May 30, 2023, the Company completed the acquisition of Connect Topco Limited, a private company limited by shares and incorporated in Guernsey (Inmarsat Holdings and, together with its subsidiaries, Inmarsat, and such acquisition, the Inmarsat Acquisition). The Inmarsat Acquisition was accounted for as a purchase and accordingly, the condensed consolidated financial statements include the operating results of Inmarsat from the date of acquisition. |
Management estimates and assumptions | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting period. Estimates have been prepared on the basis of the most current and best available information and actual results could differ from those estimates. Significant estimates made by management include revenue recognition, stock-based compensation, allowance for doubtful accounts, valuation of goodwill and other intangible assets, patents, orbital slots and other licenses, software development, property, equipment and satellites, long-lived assets, derivatives, contingencies and income taxes including the valuation allowance on deferred tax assets. |
Revenue recognition | Revenue recognition In accordance with the authoritative guidance for revenue from contracts with customers (Accounting Standards Codification (ASC) 606), the Company applies the five-step model to its contracts with its customers. Under this model the Company (1) identifies the contract with the customer, (2) identifies its performance obligations in the contract, (3) determines the transaction price for the contract, (4) allocates the transaction price to its performance obligations and (5) recognizes revenue when or as it satisfies its performance obligations. These performance obligations generally include the purchase of services (including broadband capacity and the leasing of broadband equipment), the purchase of products, and the development and delivery of complex equipment built to customer specifications under long-term contracts. Taxes imposed by governmental authorities on the Company’s revenues, such as sales taxes and value added taxes, are excluded from net sales. Performance obligations The timing of satisfaction of performance obligations may require judgment. The Company derives a substantial portion of its revenues from contracts with customers for services, primarily consisting of connectivity services. These contracts typically require advance or recurring monthly payments by the customer. The Company’s obligation to provide connectivity services is satisfied over time as the customer simultaneously receives and consumes the benefits provided. The measure of progress over time is based upon either a period of time (e.g., over the estimated contractual term) or usage (e.g., bandwidth used/bytes of data processed). The Company evaluates whether broadband equipment provided to its customers as part of the delivery of connectivity services represents a lease in accordance with the authoritative guidance for leases (ASC 842). As discussed further below under “Leases - Lessor accounting”, for broadband equipment leased to customers in conjunction with the delivery of connectivity services, the Company accounts for the lease and non-lease components of connectivity service arrangements as a single performance obligation as the connectivity services represent the predominant component. The Company also derives a portion of its revenues from contracts with customers to provide products. Performance obligations to provide products are satisfied at the point in time when control is transferred to the customer. These contracts typically require payment by the customer upon passage of control and determining the point at which control is transferred may require judgment. To identify the point at which control is transferred to the customer, the Company considers indicators that include, but are not limited to, whether (1) the Company has the present right to payment for the asset, (2) the customer has legal title to the asset, (3) physical possession of the asset has been transferred to the customer, (4) the customer has the significant risks and rewards of ownership of the asset, and (5) the customer has accepted the asset. For product revenues, control generally passes to the customer upon delivery of goods to the customer. The Company’s contracts with the U.S. Government typically are subject to the Federal Acquisition Regulation (FAR) and are priced based on estimated or actual costs of producing goods or providing services. The FAR provides guidance on the types of costs that are allowable in establishing prices for goods and services provided under U.S. Government contracts. The pricing for non-U.S. Government contracts is based on the specific negotiations with each customer. Under the typical payment terms of the Company’s U.S. Government fixed-price contracts, the customer pays the Company either performance-based payments (PBPs) or progress payments. PBPs are interim payments based on quantifiable measures of performance or on the achievement of specified events or milestones. Progress payments are interim payments based on a percentage of the costs incurred as the work progresses. Because the customer can often retain a portion of the contract price until completion of the contract, the Company’s U.S. Government fixed-price contracts generally result in revenue recognized in excess of billings which the Company presents as unbilled accounts receivable on the balance sheet. Amounts billed and due from the Company’s customers are classified as receivables on the balance sheet. The portion of the payments retained by the customer until final contract settlement is not considered a significant financing component because the intent is to protect the customer. For the Company’s U.S. Government cost-type contracts, the customer generally pays the Company for its actual costs incurred within a short period of time. For non-U.S. Government contracts, the Company typically receives interim payments as work progresses, although for some contracts, the Company may be entitled to receive an advance payment. The Company recognizes a liability for these advance payments in excess of revenue recognized and presents it as collections in excess of revenues and deferred revenues on the balance sheet. An advance payment is not typically considered a significant financing component because it is used to meet working capital demands that can be higher in the early stages of a contract and to protect the Company from the other party failing to adequately complete some or all of its obligations under the contract. Performance obligations related to developing and delivering complex equipment built to customer specifications under long-term contracts are recognized over time as these performance obligations do not create assets with an alternative use to the Company and the Company has an enforceable right to payment for performance to date. To measure the transfer of control, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. The Company generally uses the cost-to-cost measure of progress for its contracts because that best depicts the transfer of control to the customer which occurs as the Company incurs costs on its contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Estimating the total costs at completion of a performance obligation requires management to make estimates related to items such as subcontractor performance, material costs and availability, labor costs and productivity and the costs of overhead. When estimates of total costs to be incurred on a contract exceed total estimates of revenue to be earned, a provision for the entire loss on the contract is recognized in the period the loss is determined. Contract costs on U.S. Government contracts are subject to audit and review by the Defense Contract Management Agency (DCMA), the Defense Contract Audit Agency (DCAA), and other U.S. Government agencies, as well as negotiations with U.S. Government representatives. As of June 30, 2024 , the DCMA had approved the Company’s incurred costs through fiscal year 2022. The DCMA is currently auditing the Company’s fiscal year 2023 incurred cost submission. The Company's cost accounting practices are examined for compliance with the applicable Cost Accounting Standards (CAS). Although the Company has recorded contract revenues subsequent to fiscal year 2022 based upon an estimate of costs that the Company believes will be approved upon final audit or review, the Company does not know the outcome of any ongoing or future audits or reviews and adjustments and if future adjustments exceed the Company’s estimates its profitability would be adversely affected. The Company had $ 7.4 million and $ 16.6 million as of June 30, 2024 and March 31, 2024, respectively, in contract-related reserves for its estimate of potential refunds to customers for potential cost adjustments on several multi-year U.S. Government cost reimbursable contracts (see Note 9 — Commitments and Contingencies for more information). Evaluation of transaction price The evaluation of transaction price, including the amounts allocated to performance obligations, may require significant judgments. Due to the nature of the work required to be performed on many of the Company’s performance obligations, the estimation of total revenue, and, where applicable, the cost at completion, is complex, subject to many variables and requires significant judgment. The Company’s contracts may contain award fees, incentive fees, or other provisions, including the potential for significant financing components, that can either increase or decrease the transaction price. These amounts, which are sometimes variable, can be dictated by performance metrics, program milestones or cost targets, the timing of payments, and customer discretion. The Company estimates variable consideration at the amount to which it expects to be entitled. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company’s estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information (historical, current and forecasted) that is reasonably available to the Company. In the event an agreement includes embedded financing components, the Company recognizes interest expense or interest income on the embedded financing components using the effective interest method. This methodology uses an implied interest rate which reflects the incremental borrowing rate which would be expected to be obtained in a separate financing transaction. The Company has elected the practical expedient not to adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. If a contract is separated into more than one performance obligation, the total transaction price is allocated to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. Estimating standalone selling prices may require judgment. When available, the Company utilizes the observable price of a good or service when the Company sells that good or service separately in similar circumstances and to similar customers. If a standalone selling price is not directly observable, the Company estimates the standalone selling price by considering all information (including market conditions, specific factors, and information about the customer or class of customer) that is reasonably available. Transaction price allocated to remaining performance obligations The Company’s remaining performance obligations represent the transaction price of firm contracts and orders for which work has not been performed. The Company includes in its remaining performance obligations only those contracts and orders for which it has accepted purchase orders. Remaining performance obligations associated with the Company’s subscribers for fixed consumer and business broadband services in its communication services segment exclude month-to-month service contracts in accordance with a practical expedient and are estimated using a portfolio approach in which the Company reviews all relevant promotional activities and calculates the remaining performance obligation using the average service component for the portfolio and the average time remaining under the contract. The Company’s future recurring in-flight connectivity (IFC) service contracts in its communication services segment do not have minimum service purchase requirements and therefore are not included in the Company’s remaining performance obligations. As of June 30, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 3.6 billion, of which the Company expects to recognize a little less than half over the next 12 months, with the balance recognized thereafter . Disaggregation of revenue The Company operates and manages its business in two segments: communication services and defense and advanced technologies. Revenue is disaggregated by products and services, business line, customer type, contract type, and geographic area, respectively, as the Company believes this approach best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. See Note 11 — Segment Information for disaggregation of revenue by business line and additional disaggregated revenue disclosures. The following sets forth disaggregated reported revenue by segment and products and services for the three months ended June 30, 2024 and 2023: Three Months Ended June 30, 2024 Communication Services Defense and Advanced Technologies Total (In thousands) Product revenues $ 60,176 $ 245,563 $ 305,739 Service revenues 766,611 54,110 820,721 Total revenues $ 826,787 $ 299,673 $ 1,126,460 Three Months Ended June 30, 2023 Communication Services Defense and Advanced Technologies Total (In thousands) Product revenues $ 66,487 $ 169,885 $ 236,372 Service revenues 493,773 49,646 543,419 Total revenues $ 560,260 $ 219,531 $ 779,791 Revenues from the U.S. Government as an individual customer comprised approximately 16 % and 17 % of total revenues for the three months ended June 30, 2024 and 2023, respectively. Revenues from the U.S. Government are attributable to each of the communication services segment and defense and advanced technologies segment, with slightly higher revenues from the U.S. Government reported within the Company's communication services segment for the three months ended June 30, 2024 and the Company's defense and advanced technologies segment for the three months ended June 30, 2023. The Company’s communication services segment revenues are primarily derived from the Company’s aviation services (including IFC services), government satcom services, maritime services (including narrowband and safety of communication capabilities primarily acquired through the Inmarsat Acquisition), fixed broadband services, and energy services, as well as a wide array of advanced satellite and wireless products, networks and terminal solutions that support or enable the provision of fixed and mobile broadband and narrowband services. The Company’s defense and advanced technologies segment revenues are primarily derived from the Company’s information security and cyber defense, space and mission systems, tactical networking, and advanced technologies and other products and services which are provided to government and commercial customers. The Company’s revenues are primarily derived from two types of contracts: fixed-price and cost-reimbursement contracts. Fixed-price contracts (which require the Company to provide products and services under a contract at a specified price), comprised approximately 96 % and 93 % of the Company’s total revenues for the three months ended June 30, 2024 and 2023, respectively, a majority of which are reported in the Company's communication services segment. The remainder of the Company’s revenues for such periods was derived primarily from cost-reimbursement contracts (under which the Company is reimbursed for all actual costs incurred in performing the contract to the extent such costs are within the contract ceiling and allowable under the terms of the contract, plus a fee or profit), which contracts are mainly reported within the Company's defense and advanced technologies segment. Historically, a significant portion of the Company’s revenues has been derived from customer contracts that include the development of products. The development efforts are conducted in direct response to the customer’s specific requirements and, accordingly, expenditures related to such efforts are included in cost of sales when incurred and the related funding (which includes a profit component) is included in revenues. Revenues for the Company’s funded development from its customer contracts were approximately 12 % and 15 % of its total revenues for the three months ended June 30, 2024 and 2023, respectively, mainly reported within the Company's defense and advanced technologies segment. Contract balances Contract balances consist of contract assets and contract liabilities. A contract asset, or with respect to the Company, an unbilled accounts receivable, is recorded when revenue is recognized in advance of the Company’s right to bill and receive consideration, typically resulting from sales under long-term contracts. Unbilled accounts receivable are generally expected to be billed and collected within one year. The unbilled accounts receivable will decrease as provided services or delivered products are billed. The Company receives payments from customers based on a billing schedule established in the Company’s contracts. When consideration is received in advance of the delivery of goods or services, a contract liability, or with respect to the Company, collections in excess of revenues or deferred revenues, is recorded. Reductions in the collections in excess of revenues or deferred revenues will be recorded as the Company satisfies the performance obligations. The following table presents contract assets and liabilities as of June 30, 2024 and March 31, 2024: As of As of (In thousands) Unbilled accounts receivable $ 173,967 $ 156,322 Collections in excess of revenues and deferred revenues 277,665 260,264 Deferred revenues, long-term portion 878,053 896,402 Unbilled accounts receivable increased by $ 17.6 million during the three months ended June 30, 2024, driven primarily by revenue recognized in excess of billings primarily in the Company's defense and advanced technologies segment. Collections in excess of revenues and deferred revenues increased by $ 17.4 million during the three months ended June 30, 2024, driven by advances on goods or services received in excess of revenue recognized within both of the Company's segments. During the three months ended June 30, 2024 , the Company recognized revenue of $ 106.3 million that was previously included in the Company’s collections in excess of revenues and deferred revenues at March 31, 2024. During the three months ended June 30, 2023 , the Company recognized revenue of $ 53.8 million that was previously included in the Company’s collections in excess of revenues and deferred revenues at March 31, 2023 . |
Cash equivalents | Cash equivalents Cash equivalents consist of highly liquid investments with original maturities of three months or less at the date of purchase, with a significant portion held in U.S. government-backed qualified money-market securities. |
Property, equipment and satellites | Property, equipment and satellites Satellites and other property and equipment, including internally developed software, are recorded at cost or, in the case of certain satellites and other property acquired, the fair value at the date of acquisition, net of accumulated depreciation. Capitalized satellite costs consist primarily of the costs of satellite construction and launch, including launch insurance and insurance during the period of in-orbit testing, the net present value of performance incentives expected to be payable to satellite manufacturers (dependent on the continued satisfactory performance of the satellites), costs directly associated with the monitoring and support of satellite construction, and interest costs incurred during the period of satellite construction. The Company also constructs earth stations, network operations systems and other assets to support its satellites, and those construction costs, including interest, are capitalized as incurred. At the time satellites are placed in service, the Company estimates the useful life of its satellites for depreciation purposes based upon an analysis of each satellite’s performance against the original manufacturer’s orbital design life, estimated fuel levels and related consumption rates, as well as historical satellite operating trends. The Company periodically reviews the remaining estimated useful life of its satellites to determine if revisions to estimated useful lives are necessary. Costs incurred for additions to property, equipment and satellites, together with major renewals and betterments, are capitalized and depreciated over the remaining life of the underlying asset. Costs incurred for maintenance, repairs and minor renewals and betterments are charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the accounts and any resulting gain or loss is recognized in operations, which for the periods presented, primarily related to losses incurred for unreturned customer premise equipment (CPE). The Company computes depreciation using the straight-line method over the estimated useful lives of the assets ranging from two to 38 years . Leasehold improvements are capitalized and amortized using the straight-line method over the shorter of the lease term or the life of the improvement. Costs related to internally developed software for internal uses are capitalized after the preliminary project stage is complete and are amortized over the estimated useful lives of the assets, which are approximately three to seven years . Capitalized costs for internal-use software are included in property, equipment and satellites, net in the Company’s condensed consolidated balance sheets. Interest expense is capitalized on the carrying value of assets under construction, in accordance with the authoritative guidance for the capitalization of interest (ASC 835-20). With respect to the construction of satellites, gateway and networking equipment and other assets under construction, the Company capitalized $ 56.6 million of interest expense for the three months ended June 30, 2024 , and $ 56.7 million for the three months ended June 30, 2023. The Company's complementary fleet of 21 in service or operational satellites spans the Ka-, L- and S- bands, with 11 Ka-band satellites, eight L-band satellites (three of which are contingency L-band satellites that are operational but not currently in service), an S-band satellite that supports the European Aviation Network to provide IFC services to commercial airlines in Europe, and an I-6 class hybrid Ka-/L-band satellite (the I-6 F1 satellite). Subsequent to the quarter end, in late July 2024, the ViaSat-3 F1 satellite completed in-orbit testing and was integrated into the Company's existing satellite fleet covering the Americas. Furthermore, the Company has ten additional geostationary (GEO) and highly-elliptical earth orbit (HEO) satellites under development: two additional high-capacity Ka-band GEO satellites (ViaSat-3 F2 and ViaSat-3 F3), three additional adaptive Ka-band GEO satellites: (GX 7, GX 8 and GX 9), two Ka-band HEO satellite payloads intended to provide polar coverage (GX 10a and GX 10b) and three Inmarsat-8 L-band GEO safety service satellites. In addition to the Company's satellite fleet, the Company has purchased capacity on and has access to additional regional partner satellites. In addition, the Company owns related earth stations and networking equipment for all of its satellites. The Company procures CPE units leased to customers in order to connect to the Company's satellite network as part of the Company’s communication services segment, which are reflected in investing activities and property, equipment and satellites, net in the accompanying condensed consolidated financial statements. The Company depreciates the satellites, earth stations and networking equipment, CPE units and related installation costs over their estimated useful lives. The total cost and accumulated depreciation of CPE units included in property, equipment and satellites, net, as of June 30, 2024 were $ 554.6 million and $ 286.5 million, respectively. The total cost and accumulated depreciation of CPE units included in property, equipment and satellites, net, as of March 31, 2024 were $ 567.5 million and $ 267.4 million, respectively. The Company launched the first of its third-generation ViaSat-3 class satellites, ViaSat-3 F1, into orbit on April 30, 2023. On July 12, 2023, the Company reported a reflector deployment issue that materially impacted the performance of the ViaSat-3 F1 satellite. The Company and the reflector provider conducted a rigorous review of the development and deployment of the affected reflector to determine its impact and potential remedial measures. In connection with the root cause analysis, the Company determined that while the satellite payload is functional, the Company will recover less than 10 % of the planned throughput on the ViaSat-3 F1 satellite. On August 24, 2023, the Company reported that the I-6 F2 satellite, which was launched on February 18, 2023, suffered a power subsystem anomaly during its orbit raising phase. The Company and Airbus, the satellite's manufacturer, performed a root cause analysis of the anomaly and concluded the satellite would not operate as intended. The Company determined that the full carrying value of the I-6 F2 satellite is not recoverable. The I-6 F2 anomaly does not impact ongoing customer services. The I-6 F1 satellite, which was launched in December 2021, is operational and continues to perform as expected. As a result of the anomalies that occurred with respect to the ViaSat-3 F1 and I-6 F2 satellites, as well as the impact of integration efforts related to the Inmarsat Acquisition, the Company undertook extensive analysis of its existing integrated satellite fleet and ongoing satellites under construction projects, taking into account its anticipated future capacity needs, projected capital investment profile and access to third party satellites under existing bandwidth arrangements. Based on the impairment analysis performed during the second quarter of fiscal year 2024, as a result of the anomalies experienced in the two satellites and integration impact related to the Inmarsat Acquisition, the Company recorded a reduction to the carrying value of satellites under construction (including capitalized interest) and certain related assets of $ 1.67 billion during fiscal year 2024 (based on the Company's originally estimated ViaSat-3 F1 satellite output capabilities compared to the anticipated potential and configured capacity of the ViaSat-3 F1 satellite, the full value of the I-6 F2 satellite and the ViaSat-4 satellite program, each a separate asset group), which was partially offset by total insurance claim receivables of approximately $ 770.0 million recorded in the second quarter of fiscal year 2024. As a result, the Company recorded a net loss of approximately $ 905.5 million during the second and third quarters of fiscal year 2024, including liabilities associated with the termination of certain subcontractor agreements, in selling, general and administrative expenses in its communication services segment in the condensed consolidated statements of operations and comprehensive income (loss). During the first quarter of fiscal year 2025 and subsequent to the first quarter of fiscal year 2025, the Company received approximately $ 79.5 million and just over $ 38 million, respectively, in insurance recovery proceeds related to such claims. To date, the Company has received an aggregate of approximately $ 626 million in insurance recovery proceeds related to such claims. Occasionally, the Company may enter into finance lease arrangements for various machinery, equipment, computer-related equipment, software, furniture, fixtures, or satellites. The Company records amortization of assets leased under finance lease arrangements within depreciation expense. The Company’s finance leases consist primarily of satellite lifetime Ka-band capacity leases and have remaining terms from less than one year to two years . The Company reports assets obtained under finance leases in property, equipment and satellites, net and the current and non-current portions of its finance lease liabilities in current portion of long-term debt and other long-term debt, respectively (see Note 1 — Basis of Presentation – Leases for more information) . |
Capitalized interest policy | Interest expense is capitalized on the carrying value of assets under construction, in accordance with the authoritative guidance for the capitalization of interest (ASC 835-20). |
Cloud computing arrangements | Cloud computing arrangements The Company enters into certain cloud-based software hosting arrangements that are accounted for as service contracts. Costs incurred for these arrangements are capitalized for application development activities, if material, and immediately expensed for preliminary project activities and postimplementation activities. The Company amortizes the capitalized development costs straight-line over the fixed, non-cancellable term of the associated hosting arrangement plus any reasonably certain renewal periods. The capitalized costs are included in other current assets within the prepaid expenses and other current assets caption, and other assets (long-term) on the Company's consolidated balance sheets. The Company has entered into several cloud computing arrangements that are hosted services contracts mainly as part of projects related to the continuous transformation of technology, integration and implementation of an ERP system. As of June 30, 2024 and March 31, 2024 , gross capitalized implementation costs incurred in cloud computing arrangements was $ 69.3 million and $ 63.6 million, respectively. As of June 30, 2024 and March 31, 2024 the related accumulated amortization was $ 11.2 million and $ 9.5 million, respectively. The Company recognized amortization of capitalized implementation costs of $ 1.5 million and an insignificant amount for the three months ended June 30, 2024 and 2023 , respectively. |
Lessee accounting | Lessee accounting In accordance with ASC 842, the Company assesses at contract inception whether the contract is, or contains, a lease. Generally, the Company determines that a lease exists when (1) the contract involves the use of a distinct identified asset, (2) the Company obtains the right to substantially all economic benefits from use of the asset, and (3) the Company has the right to direct the use of the asset. A lease is classified as a finance lease when one or more of the following criteria are met: (1) the lease transfers ownership of the asset by the end of the lease term, (2) the lease contains an option to purchase the asset that is reasonably certain to be exercised, (3) the lease term is for a major part of the remaining useful life of the asset, (4) the present value of the lease payments equals or exceeds substantially all of the fair value of the asset or (5) the asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. A lease is classified as an operating lease if it does not meet any of these criteria. At the lease commencement date, the Company recognizes a right-of-use asset and a lease liability for all leases, except short-term leases with an original term of 12 months or less. The right-of-use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the lease payments under the lease. The right-of-use asset is initially measured at cost, which primarily comprises the initial amount of the lease liability, less any lease incentives received. All right-of-use assets are periodically reviewed for impairment in accordance with standards that apply to long-lived assets. The lease liability is initially measured at the present value of the lease payments, discounted using an estimate of the Company’s incremental borrowing rate for a collateralized loan with the same term as the underlying leases. Lease payments included in the measurement of lease liabilities consist of (1) fixed lease payments for the noncancelable lease term, (2) fixed lease payments for optional renewal periods where it is reasonably certain the renewal option will be exercised, and (3) variable lease payments that depend on an underlying index or rate, based on the index or rate in effect at lease commencement. Certain of the Company’s real estate lease agreements require variable lease payments that do not depend on an underlying index or rate established at lease commencement. Such payments and changes in payments based on a rate or index are recognized in operating expenses when incurred. Lease expense for operating leases consists of the fixed lease payments recognized on a straight-line basis over the lease term plus variable lease payments as incurred. Lease expense for finance leases consists of the depreciation of assets obtained under finance leases on a straight-line basis over the lease term and interest expense on the lease liability based on the discount rate at lease commencement. For both operating and finance leases, lease payments are allocated between a reduction of the lease liability and interest expense. The Company’s operating leases consist primarily of leases for office space, data centers and satellite ground facilities and have remaining terms that typically range from less than one year to 14 years, some of which include renewal options, and some of which include options to terminate the leases within one year. Certain earth station leases have renewal terms that have been deemed to be reasonably certain to be exercised and as such have been recognized as part of the Company’s right-of-use assets and lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company recognizes right-of-use assets and lease liabilities for such leases in accordance with ASC 842. The Company reports operating lease right-of-use assets in operating lease right-of-use assets and the current and non-current portions of its operating lease liabilities in accrued and other liabilities and non-current operating lease liabilities, respectively. |
Lessor accounting | Lessor accounting For broadband equipment leased to customers in conjunction with the delivery of connectivity services, the Company has made an accounting policy election not to separate the broadband equipment from the related connectivity services. The connectivity services are the predominant component of these arrangements. The connectivity services are accounted for in accordance with ASC 606. The Company is also a lessor for certain insignificant communications equipment. These leases meet the criteria for operating lease classification. Lease income associated with these leases is not material. |
Business combinations | Business combinations The authoritative guidance for business combinations (ASC 805) requires that all business combinations be accounted for using the purchase method. The purchase price for business combinations is allocated to the estimated fair values of acquired tangible and intangible assets, and assumed liabilities, where applicable. The Company recognizes technology, contracts and customer relationships, orbital slots and spectrum assets, trade names and other as identifiable intangible assets, which are recorded at fair value as of the transaction date. Goodwill is recorded when consideration transferred exceeds the fair value of identifiable assets and liabilities. Measurement-period adjustments to assets acquired and liabilities assumed with a corresponding offset to goodwill are recorded in the period they occur, which may include up to one year from the acquisition date. Contingent consideration is recorded at fair value at the acquisition date. |
Patents, orbital slots and other licenses | Patents, orbital slots and other licenses The Company capitalizes the costs of obtaining or acquiring patents, orbital slots and other licenses. Amortization of intangible assets that have finite lives is provided for by the straight-line method over the shorter of the legal or estimated economic life. Total capitalized costs related to patents of $ 4.0 million and $ 3.9 million were included in other assets as of June 30, 2024 and March 31, 2024 , respectively. The Company capitalized costs of $ 119.8 million and $ 117.0 million related to acquiring and obtaining orbital slots and other licenses included in other assets as of June 30, 2024 and March 31, 2024 , respectively. Accumulated amortization related to these assets was $ 8.8 million and $ 8.4 million as of June 30, 2024 and March 31, 2024, respectively. Amortization expense related to these assets was an insignificant amount for both the three months ended June 30, 2024 and 2023. If a patent, orbital slot or other license is rejected, abandoned or otherwise invalidated, the unamortized cost is expensed in that period. During the three months ended June 30, 2024 and 2023 , the Company did not write off any significant costs due to abandonment or impairment. |
Debt issuance costs | Debt issuance costs Debt issuance costs are amortized and recognized as interest expense using the effective interest rate method, or, when the results are not materially different, on a straight-line basis over the expected term of the related debt. During the three months ended June 30, 2024 and 2023 , the Company capitalized no debt issuance costs and $ 41.2 million of debt issuance costs, respectively. Unamortized debt issuance costs related to extinguished debt are expensed at the time the debt is extinguished and recorded in loss on extinguishment of debt in the condensed consolidated statements of operations and comprehensive income (loss). If the terms of a financing obligation are amended and accounted for as a debt modification by the Company, fees incurred directly with the lending institution are capitalized and amortized over the remaining contractual term using the effective interest method. Fees incurred with other parties are expensed as incurred. Debt issuance costs related to the Company’s revolving credit facilities (collectively, the Revolving Credit Facilities) are recorded in other long-term assets in the condensed consolidated balance sheets in accordance with the authoritative guidance for imputation of interest (ASC 835-30). Debt issuance costs related to the Company’s senior secured and senior unsecured notes (collectively, the Notes) and senior secured term loan credit facilities (together with the Revolving Credit Facilities, the Credit Facilities) are recorded as a direct deduction from the carrying amount of the related debt, consistent with debt discounts, in accordance with ASC 835-30. |
Software development | Software development Costs of developing software for sale are charged to independent research and development expense when incurred, until technological feasibility has been established. Software development costs incurred from the time technological feasibility is reached until the product is available for general release to customers are capitalized and reported at the lower of unamortized cost or net realizable value. Once the product is available for general release, the software development costs are amortized based on the ratio of current to future revenue for each product with an annual minimum equal to straight-line amortization over the remaining estimated economic life of the product, generally within five years . As of June 30, 2024 and March 31, 2024 , the Company has $ 742.7 million and $ 723.9 million, respectively, of capitalized costs related to software developed for resale. Accumulated amortization related to these assets was $ 497.6 million and $ 483.3 million as of June 30, 2024 and March 31, 2024 , respectively. The Company capitalized $ 18.8 million and $ 16.0 million of costs related to software developed for resale for the three months ended June 30, 2024 and 2023 , respectively. Amortization expense for capitalized software development costs was $ 14.3 million and $ 14.4 million for the three months ended June 30, 2024 and 2023 , respectively. |
Self-insurance and post-retirement medical benefit liabilities | Self-insurance and post-retirement medical benefit liabilities The Company has self-insurance plans to retain a portion of the exposure for losses related to employee medical benefits and workers’ compensation. The self-insurance plans include policies which provide for both specific and aggregate stop-loss limits. The Company utilizes actuarial methods as well as other historical information for the purpose of estimating ultimate costs for a particular plan year. Based on these actuarial methods, along with currently available information and insurance industry statistics, the Company has recorded self-insurance liability for its plans of $ 6.6 million and $ 6.5 million as of June 30, 2024 and March 31, 2024, respectively. The Company’s estimate, which is subject to inherent variability, is based on average claims experience in the Company’s industry and its own experience in terms of frequency and severity of claims, including asserted and unasserted claims incurred but not reported, with no explicit provision for adverse fluctuation from year to year. This variability may lead to ultimate payments being either greater or less than the amounts presented above. Self-insurance liabilities have been classified as a current liability in accrued and other liabilities in accordance with the estimated timing of the projected payments. As a part of the Inmarsat Acquisition, the Company assumed a post-retirement medical benefit plan for retired employees (and their dependents) who were employed by Inmarsat before January 1, 1998. The plan is funded by the Company and there are no plan assets from which the costs are paid. The cost of providing these benefits is actuarially determined and accrued over the service period of the active employee groups. The annual increase in Inmarsat's contribution to post-retirement medical liability is capped at the United Kingdom Consumer Price Index +1%. |
Indemnification provisions | Indemnification provisions In the ordinary course of business, the Company includes indemnification provisions in certain of its contracts, generally relating to parties with which the Company has commercial relations. Pursuant to these agreements, the Company will indemnify, hold harmless and agree to reimburse the indemnified party for losses suffered or incurred by the indemnified party, including but not limited to losses relating to third-party intellectual property claims. To date, there have not been any material costs incurred in connection with such indemnification clauses. The Company’s insurance policies do not necessarily cover the cost of defending indemnification claims or providing indemnification, so if a claim was filed against the Company by any party that the Company has agreed to indemnify, the Company could incur substantial legal costs and damages. A claim would be accrued when a loss is considered probable and the amount can be reasonably estimated. At June 30, 2024 and March 31, 2024 , no such amounts were accrued related to the aforementioned provisions. |
Noncontrolling interests | Noncontrolling interests A noncontrolling interest represents the equity interest in a subsidiary that is not attributable, either directly or indirectly, to the Company and is reported as equity of the Company, separate from the Company’s controlling interest. Revenues, expenses, gains, losses, net income (loss) and other comprehensive income (loss) are reported in the condensed consolidated financial statements at the consolidated amounts, which include the amounts attributable to both the controlling and noncontrolling interest. |
Investments in unconsolidated affiliate - equity method | Investments in unconsolidated affiliate — equity method Investments in entities in which the Company can exercise significant influence, but does not own a majority equity interest or otherwise control, are accounted for using the equity method and are included as investment in unconsolidated affiliate in other assets (long-term) on the condensed consolidated balance sheets. The Company records its share of the results of such entities within equity in income (loss) of unconsolidated affiliate, net on the condensed consolidated statements of operations and comprehensive income (loss). The Company monitors such investments for other-than-temporary impairment by considering factors including the current economic and market conditions and the operating performance of the entities and records reductions in carrying values when necessary. The fair value of privately held investments is estimated using the best available information as of the valuation date, including current earnings trends, undiscounted cash flows, quoted stock prices of comparable public companies, and other company specific information, including recent financing rounds. |
Derivatives | Derivatives As a result of the Inmarsat Acquisition (see Note 4 — Acquisition for more information), the Company assumed interest rate cap contracts to hedge the variable interest rate under Inmarsat's senior secured term loan facilities (the Inmarsat Term Loan Facilities) (see Note 7 — Senior Notes and Other Long-Term Debt for more information). The interest rate cap contracts provide protection from Compound SOFR rates over 2 %, cover the total nominal amount of the Inmarsat Term Loan Facilities of $ 1.6 billion and mature in February 2025. At the time of the acquisition, the Company continued to account for the interest rate cap contracts as cash-flow hedges. Upon amendment of the Inmarsat Term Loan Facilities on March 28, 2024 (see Note 7 — Senior Notes and Other Long-Term Debt for more information), the portion of the interest rate cap contracts related to Inmarsat's new $1.3 billion term loan facility (the New Term Loan Facility) continued to be accounted for as cash-flow hedges, as the interest rate cap contracts remain in place with their original maturity dat e. The Company does not use this instrument, or these types of instruments in general, for speculative or trading purposes. The Company’s objective is to reduce the risk to earnings and cash flows associated with changes in debt with variable interest rates. Derivative instruments are recognized as either assets or liabilities in the condensed consolidated balance sheets and are measured at fair value. The value of a hedging derivative is classified as a non-current asset or liability if the cash flows are due to be received in greater than 12 months, and as a current asset or liability if the cash flows are due to be received in less than 12 months. Gains and losses arising from changes in the fair value of derivative instruments which are designated as cash-flow hedging instruments are recorded in accumulated other comprehensive income (loss) as unrealized gains (losses) on derivative instruments until the underlying transaction affects the Company’s earnings, at which time they are then recorded in the same income statement line as the underlying transaction. The Company may designate a derivative with periodic cash settlements and a non-zero fair value at hedge inception as the hedging instrument in a qualifying cash flow hedging relationship. The non-zero fair value of cash flow hedges on the designation date is recognized into income under a systematic and rational method over the life of the hedging instrument and in the same line item on the condensed consolidated statements of operations as the earnings of the hedge item, with the offset recorded to other comprehensive income (loss). During the three months ended June 30, 2024 and 2023 , the Company recognized a gain of $ 3.2 million (and related tax expense of an insignificant amount) and a gain of $ 12.7 million (and related tax expense of $ 3.2 million), respectively, in other comprehensive income arising from changes in the fair value of the interest rate cap contracts (designated as cash-flow hedging instruments) related to the Inmarsat Term Loan Facilities. During the three months ended June 30, 2024 and 2023 , the Company recorded a decrease of $ 4.6 million (and related tax benefit of $ 1.2 million) and a decrease of $ 4.4 million (and related tax benefit of $ 1.1 million), respectively, to other comprehensive income and interest expense, net of the recognition into income of the non-zero hedge inception fair value (based on the nature of the underlying transaction). During the three months ended June 30, 2024 and 2023 , the Company received $ 14.1 million and $ 4.2 million in cash, respectively, as a result of periodic cash settlements, which are included in operating cash flow in the condensed consolidated statements of cash flows. As of June 30, 2024 and March 31, 2024 , the fair value of the Company's interest rate cap contracts was $ 33.9 million and $ 44.5 million, respectively and recorded in other current assets. At June 30, 2024 the estimated net amount of unrealized gains or losses related to the interest rate cap contracts that was expected to be reclassified to earnings net of the recognition into income of non-zero hedge inception fair value within the next 12 months was $ 17.3 million. |
Stock-based compensation | Stock-based compensation In accordance with the authoritative guidance for share-based payments (ASC 718), the Company measures stock-based compensation cost at the grant date, based on the estimated fair value of the award. Expense for restricted stock units and stock options is recognized on a straight-line basis over the employee’s requisite service period. Expense for market-based performance stock options and performance-based restricted stock units (PSUs) with a market condition (such as a stock price milestone) (market condition PSUs) that vest is recognized regardless of the actual outcome achieved and is recognized on a graded-vesting basis. Expense for PSUs with a performance condition (such as an operational milestone) (performance condition PSUs) that vest is recorded each period based on a probability assessment of the expected outcome of the performance metric with a final adjustment upon measurement at the end of the performance period and is recognized on a graded-vesting basis. The Company accounts for forfeitures as they occur. The Company recognized $ 19.2 million and $ 21.8 million of stock-based compensation expense for the three months ended June 30, 2024 and 2023 , respectively. The Company recognizes excess tax benefits or deficiencies on vesting or settlement of awards as discrete items within income tax benefit or provision within net income (loss) and the related cash flows are classified within operating activities. |
Income taxes | Income taxes Accruals for uncertain tax positions are provided for in accordance with the authoritative guidance for accounting for uncertainty in income taxes (ASC 740). The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The authoritative guidance for accounting for uncertainty in income taxes also provides guidance on derecognition of income tax assets and liabilities, classification of deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and income tax disclosures. The Company’s policy is to recognize interest expense and penalties related to income tax matters as a component of income tax expense. Ordinarily, the Company calculates its provision for income taxes at the end of each interim reporting period on the basis of an estimated annual effective tax rate adjusted for tax items that are discrete to each period. A deferred income tax asset or liability is established for the expected future tax consequences resulting from differences in the financial reporting and tax bases of assets and liabilities and for the expected future tax benefit to be derived from tax credit and loss carryforwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. |
Recent authoritative guidance | Recent authoritative guidance In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement ( Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered in measuring the security's fair value. The standard also requires certain disclosures for equity securities that are subject to contractual restrictions. The Company adopted the new guidance in the first quarter of fiscal year 2025 and the guidance did not have a material impact on its consolidated financial statements and disclosures. In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842) – Common Control Agreements. The amendments in this update that apply to public business entities clarify the accounting for leasehold improvements associated with common control leases. The Company adopted the new guidance in the first quarter of fiscal year 2025 and the guidance did not have a material impact on its consolidated financial statements and disclosures. In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. This ASU amends certain disclosure and presentation requirements for a variety of topics within the FASB ASC. These amendments will also align the requirements in the ASC with the SEC's regulations. The effective date for each amended topic in the ASC is the date on which the SEC’s removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, and will not be effective if the SEC has not removed the applicable disclosure requirements by June 30, 2027. Early adoption is prohibited. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU requires public entities to enhance disclosures about their reportable segments' significant expenses on an interim and annual basis. The new standard will become effective for the Company's annual disclosures beginning in fiscal year 2025 and for interim disclosures beginning in fiscal year 2026 on a retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 enhances income tax disclosures by requiring disclosure of specific categories in the income tax rate reconciliation table and disaggregation of income taxes paid. The new standard will become effective for the Company beginning in fiscal year 2026. Early adoption is permitted and the new standard should be applied prospectively , however retrospective application is permitted . The Company is currently evaluating the impact of this standard on its consolidated financial statement disclosures. In March 2024, the FASB issued ASU 2024-02, Codification Improvements – Amendments to Remove References to the Concepts Statements. This update contains amendments to the Codification that remove references to various Concepts Statements. The amendments in this update are not intended to result in significant accounting changes for most entities. The amendments in this update are effective for the Company beginning in fiscal year 2026. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. |
Fair value measurements | In accordance with the authoritative guidance for financial assets and liabilities measured at fair value on a recurring basis (ASC 820), the Company determines fair value based on the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants, and prioritizes the inputs used to measure fair value from market-based assumptions to entity specific assumptions: Level 1 — Inputs based on quoted market prices for identical assets or liabilities in active markets at the measurement date. Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 — Inputs which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation. The following tables present the Company's hierarchy for its assets measured at fair value on a recurring basis as of June 30, 2024 and March 31, 2024 . The Company had no liabilities measured at fair value on a recurring basis as of both June 30, 2024 and March 31, 2024. Fair Value as of Level 1 Level 2 Level 3 (In thousands) Assets: Cash equivalents $ 508,282 $ 508,282 $ — $ — Interest rate cap contracts 33,862 — 33,862 — Total assets measured at fair value on a recurring $ 542,144 $ 508,282 $ 33,862 $ — Fair Value as of Level 1 Level 2 Level 3 (In thousands) Assets: Cash equivalents $ 474,743 $ 474,743 $ — $ — Interest rate cap contracts 44,497 — 44,497 — Total assets measured at fair value on a recurring $ 519,240 $ 474,743 $ 44,497 $ — The following section describes the valuation methodologies the Company uses to measure financial instruments at fair value: Cash equivalents — The Company’s cash equivalents consist of money market funds, with a significant portion held in U.S. government backed qualified money market securities. Interest rate cap contracts — The Company assumed interest rate cap contracts to hedge the variable interest rate under the Inmarsat Term Loan Facilities (see Note 1 — Basis of Presentation – Derivatives for more information). The Company’s interest rate cap contracts are valued using the forward interest rate curve at each reporting date (Level 2). Long-term debt — As of June 30, 2024, the Company’s long-term debt was comprised of (1) $700.0 million in aggregate principal amount of Viasat's 5.625% Senior Notes due 2025 (the 2025 Notes), $600.0 million in aggregate principal amount of Viasat's 5.625% Senior Secured Notes due 2027 (the 2027 Notes), $400.0 million in aggregate principal amount of Viasat's 6.500% Senior Notes due 2028 (the 2028 Notes), $733.4 million in aggregate principal amount of Viasat’s 7.500% Senior Notes due 2031 (the 2031 Notes), $2.08 billion in aggregate principal amount of Inmarsat's 6.750% Senior Secured Notes due 2026 (the Inmarsat 2026 Notes), (2) borrowings under Viasat’s $700.0 million senior secured term loan facility (the 2022 Term Loan Facility), borrowings under Viasat’s $616.7 million senior secured term loan facility (the 2023 Term Loan Facility), borrowings under the Inmarsat Term Loan Facilities and borrowings under Viasat’s direct loan facility with the Export-Import Bank of the United States (the Ex-Im Credit Facility), and (3) finance lease obligations reported at the present value of future minimum lease payments with current accrued interest. Long-term debt related to the Revolving Credit Facilities is reported at the outstanding principal amount of borrowings, while long-term debt related to the Company's other Credit Facilities and the Notes is reported at amortized cost. However, for disclosure purposes, the Company is required to measure the fair value of outstanding debt on a recurring basis. The fair value of the Company’s long-term debt related to the Company's variable rate Credit Facilities approximates its carrying amount due to its variable interest rate, which approximates a market interest rate. As of June 30, 2024 and March 31, 2024 , the fair value of the Company’s long-term debt related to the Ex-Im Credit Facility was Level 2 and was approximately $ 28.8 million and $ 38.5 million, respectively. As of June 30, 2024 and March 31, 2024 , the estimated fair value of the Company’s outstanding long-term debt related to each series of Notes was Level 2 and was $ 679.0 million and $ 680.8 million, respectively, for the 2025 Notes, $ 535.5 million and $ 564.0 million, respectively, for the 2027 Notes, $ 303.0 million and $ 307.5 million, respectively, for the 2028 Notes, $ 484.7 million and $ 529.9 million, respectively, for the 2031 Notes, and $ 2.01 billion and $ 2.04 billion, respectively for the Inmarsat 2026 Notes. Satellite performance incentive obligations — The Company’s contracts with satellite manufacturers require the Company to make monthly in-orbit satellite performance incentive payments with respect to certain satellites in service, including interest, through fiscal year 2028 , subject to the continued satisfactory performance of the applicable satellites. The Company records the net present value of these expected future payments as a liability and as a component of the cost of the satellites. However, for disclosure purposes, the Company is required to measure the fair value of outstanding satellite performance incentive obligations on a recurring basis. The fair value of the Company’s outstanding satellite performance incentive obligations is estimated to approximate their carrying value based on current rates (Level 2). As of June 30, 2024 and March 31, 2024 , the Company’s estimated satellite performance incentive obligations relating to certain satellites in service, including accrued interest, were $ 14.8 million and $ 15.9 million, respectively. |
Other acquired intangible assets | Other acquired intangible assets are amortized using the straight-line method over their estimated useful lives of two to 20 years (which approximates the economic pattern of benefit). |
Segment Reporting | The Company reports its results in two separate segments consisting of communications services and defense and advanced technologies. The Company's segments are determined consistent with the way management currently organizes and evaluates financial information internally for making operating decisions and assessing performance. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Disaggregation of Revenue by Segment and Products and Services | The following sets forth disaggregated reported revenue by segment and products and services for the three months ended June 30, 2024 and 2023: Three Months Ended June 30, 2024 Communication Services Defense and Advanced Technologies Total (In thousands) Product revenues $ 60,176 $ 245,563 $ 305,739 Service revenues 766,611 54,110 820,721 Total revenues $ 826,787 $ 299,673 $ 1,126,460 Three Months Ended June 30, 2023 Communication Services Defense and Advanced Technologies Total (In thousands) Product revenues $ 66,487 $ 169,885 $ 236,372 Service revenues 493,773 49,646 543,419 Total revenues $ 560,260 $ 219,531 $ 779,791 |
Summary of Contract Assets and Liabilities | The following table presents contract assets and liabilities as of June 30, 2024 and March 31, 2024: As of As of (In thousands) Unbilled accounts receivable $ 173,967 $ 156,322 Collections in excess of revenues and deferred revenues 277,665 260,264 Deferred revenues, long-term portion 878,053 896,402 |
Composition of Certain Balanc_2
Composition of Certain Balance Sheet Captions (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Composition of Certain Balance Sheet Captions | As of As of (In thousands) Accounts receivable, net: Billed $ 546,790 $ 545,081 Unbilled 173,967 156,322 Allowance for doubtful accounts ( 25,868 ) ( 23,193 ) $ 694,889 $ 678,210 Inventories: Raw materials $ 100,978 $ 89,778 Work in process 33,153 31,884 Finished goods 195,698 196,216 $ 329,829 $ 317,878 Prepaid expenses and other current assets: Insurance receivable $ 182,000 $ 261,500 Prepaid expenses 189,525 185,892 Other 119,259 134,391 $ 490,784 $ 581,783 Property, equipment and satellites, net: Equipment and software (estimated useful life of 3 - 7 years ) $ 3,051,930 $ 2,992,325 CPE leased equipment (estimated useful life of 4 - 7 years ) 554,648 567,548 Furniture and fixtures (estimated useful life of 7 years) 65,338 65,433 Leasehold improvements (estimated useful life of 2 - 20 years ) 211,668 209,162 Buildings (estimated useful life of 12 - 38 years ) 16,649 16,647 Land 20,789 20,787 Construction in progress 1,361,156 1,301,376 Satellites (estimated useful life of 7 - 17 years ) 3,325,299 3,324,458 Satellite Ka-band capacity obtained under finance leases (estimated useful life of 7 - 11 years ) 177,576 177,576 Satellites under construction 2,071,760 1,976,469 10,856,813 10,651,781 Less: accumulated depreciation and amortization ( 3,325,004 ) ( 3,094,575 ) $ 7,531,809 $ 7,557,206 Other acquired intangible assets, net: Contracts and customer relationships (weighted average useful life of 11 years) $ 1,436,728 $ 1,437,738 Orbital slots and spectrum assets (weighted average useful life of 12 years) 1,088,600 1,088,600 Technology (weighted average useful life of 7 years) 248,846 251,889 Trade names (weighted average useful life of 8 years) 116,990 117,280 Other (weighted average useful life of 11 years) 21,739 21,792 2,912,903 2,917,299 Less: accumulated amortization ( 437,411 ) ( 372,832 ) $ 2,475,492 $ 2,544,467 Other assets: Deferred income taxes $ 164,909 $ 163,590 Capitalized software costs, net 245,134 240,597 Patents, orbital slots and other licenses, net 115,036 112,535 Other 226,746 217,225 $ 751,825 $ 733,947 Accrued and other liabilities: Collections in excess of revenues and deferred revenues $ 277,665 $ 260,264 Accrued employee compensation 85,092 177,854 Accrued vacation 49,576 48,636 Operating lease liabilities 69,808 71,561 Interest payable 75,534 127,098 Other 233,427 265,208 $ 791,102 $ 950,621 Other liabilities: Deferred revenues, long-term portion $ 878,053 $ 896,402 Deferred income taxes 1,223,012 1,228,270 Other 321,213 327,428 $ 2,422,278 $ 2,452,100 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the Company's hierarchy for its assets measured at fair value on a recurring basis as of June 30, 2024 and March 31, 2024 . The Company had no liabilities measured at fair value on a recurring basis as of both June 30, 2024 and March 31, 2024. Fair Value as of Level 1 Level 2 Level 3 (In thousands) Assets: Cash equivalents $ 508,282 $ 508,282 $ — $ — Interest rate cap contracts 33,862 — 33,862 — Total assets measured at fair value on a recurring $ 542,144 $ 508,282 $ 33,862 $ — Fair Value as of Level 1 Level 2 Level 3 (In thousands) Assets: Cash equivalents $ 474,743 $ 474,743 $ — $ — Interest rate cap contracts 44,497 — 44,497 — Total assets measured at fair value on a recurring $ 519,240 $ 474,743 $ 44,497 $ — |
Acquisition (Tables)
Acquisition (Tables) - Inmarsat Holdings [Member] | 3 Months Ended |
Jun. 30, 2024 | |
Business Acquisition [Line Items] | |
Summary of Purchase Price Allocation of Acquired Assets and Assumed Liabilities | The purchase price allocation of the acquired assets and assumed liabilities in the Inmarsat Acquisition based on the estimated fair values as of May 30, 2023, adjusted since the closing of the Inmarsat Acquisition, primarily between property, equipment and satellites, identifiable intangible assets, deferred tax liabilities and goodwill, is as follows: (In thousands) Current assets $ 641,893 Property, equipment and satellites 4,363,049 Identifiable intangible assets 2,570,000 Other assets 388,745 Total assets acquired $ 7,963,687 Current liabilities ( 598,296 ) Long-term debt, excluding short-term portion ( 3,519,774 ) Other long-term liabilities ( 2,629,406 ) Total liabilities assumed $ ( 6,747,476 ) Goodwill 1,462,881 Total consideration transferred $ 2,679,092 Current liabilities and other long-term liabilities include approximately $ 29.6 million and $ 248.3 million, respectively, of unfavorable contract liabilities amortized into service revenue over a weighted average estimated useful life of approximately nine years . |
Summary of Identifiable Intangible Assets Amortized on a Straight Line Basis | Amounts assigned to identifiable intangible assets are being amortized on a straight-line basis over their determined useful lives (which approximates the economic pattern of benefit) and are as follows as of May 30, 2023: Weighted Fair Value Average Useful Life (In thousands) (In years) Orbital slots and spectrum assets $ 1,080,000 12 Customer relationships 1,305,000 11 Technology 100,000 7 Trade names 85,000 8 Total identifiable intangible assets $ 2,570,000 11 |
Summary of Proforma Financial Information | The pro forma financial information for the three months ended June 30, 2023 includes the business combination accounting effects primarily related to the amortization and depreciation changes from acquired intangible and tangible assets, interest expense from the debt issued to finance the acquisition, acquisition-related transaction costs and related tax effects. Three Months Ended June 30, 2023 (In thousands) Total revenues $ 1,050,226 Net income (loss) attributable to Viasat, Inc. $ ( 41,962 ) |
Senior Notes and Other Long-T_2
Senior Notes and Other Long-Term Debt (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | Total long-term debt consisted of the following as of June 30, 2024 and March 31, 2024: As of As of (In thousands) 2031 Notes $ 733,400 $ 733,400 2028 Notes 400,000 400,000 2027 Notes 600,000 600,000 Inmarsat 2026 Notes 2,075,000 2,075,000 2025 Notes 700,000 700,000 2022 Term Loan Facility 686,000 687,750 2023 Term Loan Facility 612,075 613,617 Inmarsat Term Loan Facilities 1,596,750 1,600,000 Ex-Im Credit Facility 29,478 39,304 Viasat Revolving Credit Facility — — Inmarsat Revolving Credit Facility — — Finance lease obligations (see Note 1) 23,666 26,771 Total debt 7,456,369 7,475,842 Unamortized discount, debt issuance costs and fair value adjustments made in purchase accounting ( 269,757 ) ( 288,553 ) Less: current portion of long-term debt 57,764 58,054 Total long-term debt $ 7,128,848 $ 7,129,235 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Revenues and Operating Profits (Losses) | Segment revenues and operating profits (losses) for the three months ended June 30, 2024 and 2023 were as follows: Three Months Ended June 30, 2024 June 30, 2023 (In thousands) Revenues: Communication services Aviation services $ 257,155 $ 151,112 Government satcom services 183,873 82,624 Maritime services 123,947 45,345 Fixed services and other services 201,636 214,692 Total services 766,611 493,773 Total products 60,176 66,487 Total communication services revenues 826,787 560,260 Defense and advanced technologies Total services 54,110 49,646 Information security and cyber defense products 55,507 56,676 Space and mission systems products 73,306 72,387 Tactical networking products 71,410 37,384 Advanced technologies and other products 45,340 3,438 Total products 245,563 169,885 Total defense and advanced technologies revenues 299,673 219,531 Elimination of intersegment revenues — — Total revenues $ 1,126,460 $ 779,791 Operating profits (losses): Communication services $ 41,939 $ ( 9,943 ) Defense and advanced technologies 84,011 ( 3,762 ) Elimination of intersegment operating — — Segment operating profit (loss) before corporate 125,950 ( 13,705 ) Corporate — — Amortization of acquired intangible ( 66,215 ) ( 27,811 ) Income (loss) from operations $ 59,735 $ ( 41,516 ) |
Segment Assets | Segment assets as of June 30, 2024 and March 31, 2024 were as follows: As of As of (In thousands) Segment assets: Communication services $ 4,752,423 $ 4,819,535 Defense and advanced technologies 367,759 341,450 Total segment assets 5,120,182 5,160,985 Corporate assets 10,967,687 11,168,379 Total assets $ 16,087,869 $ 16,329,364 |
Other Acquired Intangible Assets, Net, Goodwill Included in Segment Assets and Depreciation and Amortization of Acquired Intangible Assets by Segment | Other acquired intangible assets, net and goodwill included in segment assets as of June 30, 2024 and March 31, 2024 were as follows: Other Acquired Intangible Goodwill As of As of As of As of (In thousands) Communication services $ 2,475,492 $ 2,544,315 $ 1,581,631 $ 1,581,937 Defense and advanced technologies — 152 39,842 39,826 Total $ 2,475,492 $ 2,544,467 $ 1,621,473 $ 1,621,763 Depreciation and amortization of intangible assets allocated to segments for the three months ended June 30, 2024 and 2023 was as follows: Three Months Ended June 30, 2024 June 30, 2023 (In thousands) Communication services $ 249,133 $ 134,783 Defense and advanced technologies 15,856 11,985 Corporate (1) 66,215 27,811 Total depreciation and amortization of $ 331,204 $ 174,579 |
Revenues by Geographic Area | Revenues by geographic area for the three months ended June 30, 2024 and 2023 were as follows: Three Months Ended June 30, 2024 June 30, 2023 (In thousands) U.S. customers $ 776,495 $ 593,162 Non-U.S. customers (each country individually insignificant) 349,965 186,629 Total revenues $ 1,126,460 $ 779,791 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | 3 Months Ended | |||
Jun. 30, 2024 USD ($) Segment shares | Jun. 30, 2023 USD ($) shares | Sep. 30, 2024 USD ($) | Mar. 31, 2024 USD ($) shares | |
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Revenue, practical expedient, financing component | true | |||
Remaining performance obligations | $ 3,600,000,000 | |||
Number of reportable segments | Segment | 2 | |||
Increase in collections in excess of revenues and deferred revenues | $ 17,400,000 | |||
Collections in excess of revenues and deferred revenues, recognized revenue | 106,300,000 | $ 53,800,000 | ||
Capitalized interest expense | $ 56,600,000 | 56,700,000 | ||
Proportion of insured amount to asset net book value | On July 12, 2023, the Company reported a reflector deployment issue that materially impacted the performance of the ViaSat-3 F1 satellite. The Company and the reflector provider conducted a rigorous review of the development and deployment of the affected reflector to determine its impact and potential remedial measures. In connection with the root cause analysis, the Company determined that while the satellite payload is functional, the Company will recover less than 10% of the planned throughput on the ViaSat-3 F1 satellite. | |||
Operating lease, existence of option to terminate | true | |||
Operating lease, option to terminate, description | some of which include renewal options, and some of which include options to terminate the leases within one year. | |||
Total capitalized costs related to patents | $ 4,000,000 | $ 3,900,000 | ||
Total capitalized costs related to orbital slots and other licenses | 119,800,000 | 117,000,000 | ||
Accumulated amortization of patents, orbital slots and other licenses | 8,800,000 | 8,400,000 | ||
Debt issuance costs capitalized | 0 | 41,200,000 | ||
Self-insurance liability | 6,600,000 | 6,500,000 | ||
Repurchase and immediate retirement of treasury shares pursuant to vesting of certain RSU agreements | value | 1,415,000 | 2,212,000 | ||
Stock-based compensation expense | 19,182,000 | 21,752,000 | ||
Insurance claim receivables | 182,000,000 | 261,500,000 | ||
Continuing Operations [Member] | ||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Stock-based compensation expense | $ 19,200,000 | $ 21,800,000 | ||
Accounting Standards Update 2022-03 [Member] | ||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Description of new accounting pronouncements | In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered in measuring the security's fair value. The standard also requires certain disclosures for equity securities that are subject to contractual restrictions. The Company adopted the new guidance in the first quarter of fiscal year 2025 and the guidance did not have a material impact on its consolidated financial statements and disclosures. | |||
Accounting Standards Update 2023-01 [Member] | ||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Description of new accounting pronouncements | In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842) – Common Control Agreements. The amendments in this update that apply to public business entities clarify the accounting for leasehold improvements associated with common control leases. The Company adopted the new guidance in the first quarter of fiscal year 2025 and the guidance did not have a material impact on its consolidated financial statements and disclosures. | |||
Accounting Standards Update 2023-06 [Member] | ||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Description of new accounting pronouncements | In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. This ASU amends certain disclosure and presentation requirements for a variety of topics within the FASB ASC. These amendments will also align the requirements in the ASC with the SEC's regulations. The effective date for each amended topic in the ASC is the date on which the SEC’s removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, and will not be effective if the SEC has not removed the applicable disclosure requirements by June 30, 2027. Early adoption is prohibited. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. | |||
Accounting Standards Update 2023-07 [Member] | ||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Description of new accounting pronouncements | In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU requires public entities to enhance disclosures about their reportable segments' significant expenses on an interim and annual basis. The new standard will become effective for the Company's annual disclosures beginning in fiscal year 2025 and for interim disclosures beginning in fiscal year 2026 on a retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. | |||
Accounting Standards Update 2023-09 [Member] | ||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Description of new accounting pronouncements | In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 enhances income tax disclosures by requiring disclosure of specific categories in the income tax rate reconciliation table and disaggregation of income taxes paid. The new standard will become effective for the Company beginning in fiscal year 2026. Early adoption is permitted and the new standard should be applied prospectively, however retrospective application is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statement disclosures. | |||
Accounting Standards Update 2024-02 [Member] | ||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Description of new accounting pronouncements | In March 2024, the FASB issued ASU 2024-02, Codification Improvements – Amendments to Remove References to the Concepts Statements. This update contains amendments to the Codification that remove references to various Concepts Statements. The amendments in this update are not intended to result in significant accounting changes for most entities. The amendments in this update are effective for the Company beginning in fiscal year 2026. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. | |||
CPE Leased Equipment [Member] | ||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Property, equipment and satellites, cost | $ 554,648,000 | 567,548,000 | ||
Accumulated depreciation and amortization | $ 286,500,000 | 267,400,000 | ||
ViaSat-3 F1 satellite [Member] | ||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Maximum expected recovery % of the planned throughput | 10% | |||
Satellites [Member] | ||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Reduction to carrying value including capitalized interest | 1,670,000,000 | |||
Insurance claim receivables | $ 770,000,000 | |||
Unfavorable Regulatory Action [Member] | ||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Accrued reserves | $ 7,400,000 | 16,600,000 | ||
Indemnification Guarantee [Member] | ||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Accrued reserves | $ 0 | $ 0 | ||
Common Stock [Member] | ||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Common stock issued based on the vesting terms of certain restricted stock unit agreements | shares | 220,113 | 137,469 | ||
Common Stock Held in Treasury [Member] | ||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Shares of common stock outstanding | shares | 0 | 0 | ||
Repurchase and immediate retirement of treasury shares pursuant to vesting of certain RSU agreements, shares | shares | 85,638 | 48,850 | ||
Repurchase and immediate retirement of treasury shares pursuant to vesting of certain RSU agreements | value | $ 1,400,000 | $ 2,200,000 |
Basis of Presentation - Addit_2
Basis of Presentation - Additional Information (Detail 1) | 3 Months Ended |
Jun. 30, 2024 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-07-01 | |
Company And Summary Of Significant Accounting Policies [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, explanation | Company expects to recognize a little less than half over the next 12 months, with the balance recognized thereafter |
Basis of Presentation - Addit_3
Basis of Presentation - Additional Information (Detail 2) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 10 Months Ended | ||
Aug. 09, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Jun. 30, 2024 | Mar. 31, 2024 | |
Company And Summary Of Significant Accounting Policies [Line Items] | ||||||
Insurance recovery proceeds | $ 79,500 | |||||
Capitalized costs, net, related to software developed for resale | 742,700 | $ 742,700 | $ 723,900 | |||
Capitalized cost related to software development for resale | 18,800 | $ 16,000 | ||||
Amortization expense of capitalized software development costs | 14,300 | $ 14,400 | ||||
Capitalized Computer Software, Accumulated Amortization | 497,600 | 497,600 | 483,300 | |||
Gross capitalized implementation costs incurred in cloud computing arrangements | 69,300 | 69,300 | 63,600 | |||
Accumulated amortization related to capitalized implementation costs incurred in cloud computing arrangements | 11,200 | $ 11,200 | $ 9,500 | |||
Amortization of capitalized implementation costs incurred in cloud computing arrangements | $ 1,500 | |||||
Maximum [Member] | ||||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life, years | 20 years | 20 years | ||||
Computer Software, Intangible Asset [Member] | Maximum [Member] | ||||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life, years | 5 years | 5 years | ||||
Funded Research and Development from Customer Contracts [Member] | ||||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||||
Percentage of revenue | 12% | 15% | ||||
Fixed-price Contract [Member] | ||||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||||
Percentage of revenue | 96% | 93% | ||||
U.S. Government as an Individual Customer [Member] | ||||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||||
Percentage of revenue | 16% | 17% | ||||
Satellites [Member] | ||||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||||
Insurance recovery proceeds | $ 79,500 | $ 626,000 | ||||
Satellites [Member] | Subsequent Event [Member] | ||||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||||
Insurance recovery proceeds | $ 38,000 | |||||
Defense and Advanced Technologies [Member] | ||||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||||
Increase (decrease) in unbilled accounts receivable | $ 17,600 | |||||
Communication Services [Member] | Satellites [Member] | Selling, General and Administrative Expenses [Member] | ||||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||||
Satellite impairment loss, net, including liabilities associated with the termination of certain subcontractor agreements | $ 905,500 |
Basis of Presentation - Addit_4
Basis of Presentation - Additional Information (Detail 3) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | May 30, 2023 | |
Interest Rate Cap [Member] | ||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Interest rate cap contracts, description | The interest rate cap contracts provide protection from Compound SOFR rates over 2%, cover the total nominal amount of the Inmarsat Term Loan Facilities of $1.6 billion and mature in February 2025. At the time of the acquisition, the Company continued to account for the interest rate cap contracts as cash-flow hedges. Upon amendment of the Inmarsat Term Loan Facilities on March 28, 2024 (see Note 7 — Senior Notes and Other Long-Term Debt for more information), the portion of the interest rate cap contracts related to Inmarsat's new $1.3 billion term loan facility (the New Term Loan Facility) continued to be accounted for as cash-flow hedges, as the interest rate cap contracts remain in place with their original maturity dat | |||
Gain (loss) in other comprehensive income arising from changes in the fair value of derivative contracts (designated as cash-flow hedging instruments) | $ 3,200 | $ 12,700 | ||
Tax on gain (loss) arising from changes in the fair value of the interest rate cap contracts (designated as cash-flow hedging instruments) | 3,200 | |||
Derivative contracts gain (loss) reclassified to other comprehensive income and interest expense, net (based on the nature of the underlying transaction) | 4,600 | 4,400 | ||
Interest rate cash flow hedge gain loss reclassified to earnings tax expense (benefit) | (1,200) | (1,100) | ||
Cash received | 14,100 | $ 4,200 | ||
The estimated net amount of unrealized gains or losses related to the interest rate cap contracts that was expected to be reclassified to earnings net of the recognition into income of non-zero hedge inception fair value within the next 12 months | 17,300 | |||
Interest Rate Cap [Member] | Other Current Assets [Member] | ||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Interest rate cap contracts | 33,900 | $ 44,500 | ||
Inmarsat Term Loan Facility [Member] | ||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Principal amount of debt | 1,596,750 | 1,600,000 | ||
Inmarsat Term Loan Facility [Member] | Interest Rate Cap [Member] | ||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Principal amount of debt | $ 1,600,000 | |||
Interest rate cap | 2% | |||
2023 Term Loan Facility [Member] | ||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Principal amount of debt | $ 612,075 | $ 613,617 | ||
Maximum [Member] | ||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Property, equipment and satellites, estimated useful life (years) | 38 years | |||
Financing lease, remaining lease term | 2 years | |||
Operating lease, remaining lease term | 14 years | |||
Maximum [Member] | Software Development Member | ||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Property, equipment and satellites, estimated useful life (years) | 7 years | |||
Minimum [Member] | ||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Property, equipment and satellites, estimated useful life (years) | 2 years | |||
Financing lease, remaining lease term | 1 year | |||
Operating lease, remaining lease term | 1 year | |||
Minimum [Member] | Software Development Member | ||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||
Property, equipment and satellites, estimated useful life (years) | 3 years |
Basis of Presentation - Summary
Basis of Presentation - Summary of Disaggregation of Revenue by Segment and Products and Services (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenues | $ 1,126,460 | $ 779,791 |
Product [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 305,739 | 236,372 |
Service [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 820,721 | 543,419 |
Operating Segments [Member] | Communication Services [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 826,787 | 560,260 |
Operating Segments [Member] | Communication Services [Member] | Product [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 60,176 | 66,487 |
Operating Segments [Member] | Communication Services [Member] | Service [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 766,611 | 493,773 |
Operating Segments [Member] | Defense and Advanced Technologies [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 299,673 | 219,531 |
Operating Segments [Member] | Defense and Advanced Technologies [Member] | Product [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | 245,563 | 169,885 |
Operating Segments [Member] | Defense and Advanced Technologies [Member] | Service [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenues | $ 54,110 | $ 49,646 |
Basis of Presentation - Summa_2
Basis of Presentation - Summary of Contract Assets and Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Accounting Policies [Abstract] | ||
Unbilled accounts receivable | $ 173,967 | $ 156,322 |
Collections in excess of revenues and deferred revenues | 277,665 | 260,264 |
Deferred revenues, long-term portion | $ 878,053 | $ 896,402 |
Composition of Certain Balanc_3
Composition of Certain Balance Sheet Captions - Composition of Certain Balance Sheet Captions (Detail) - USD ($) $ in Thousands | Sep. 30, 2024 | Jun. 30, 2024 | Mar. 31, 2024 |
Accounts receivable, net: | |||
Accounts receivable, Billed | $ 546,790 | $ 545,081 | |
Accounts receivable, Unbilled | 173,967 | 156,322 | |
Allowance for doubtful accounts | (25,868) | (23,193) | |
Accounts receivable, net | 694,889 | 678,210 | |
Inventories: | |||
Raw materials | 100,978 | 89,778 | |
Work in process | 33,153 | 31,884 | |
Finished goods | 195,698 | 196,216 | |
Inventories | 329,829 | 317,878 | |
Prepaid expenses and other current assets: | |||
Insurance receivable | 182,000 | 261,500 | |
Prepaid expenses | 189,525 | 185,892 | |
Other | 119,259 | 134,391 | |
Prepaid expenses and other current assets | 490,784 | 581,783 | |
Property, equipment and satellites, net: | |||
Property, equipment and satellites, gross | 10,856,813 | 10,651,781 | |
Less: accumulated depreciation and amortization | (3,325,004) | (3,094,575) | |
Property and equipment, net | 7,531,809 | 7,557,206 | |
Other acquired intangible assets, net: | |||
Other acquired intangible assets, gross | 2,912,903 | 2,917,299 | |
Less: accumulated amortization | (437,411) | (372,832) | |
Other acquired intangible assets, net | 2,475,492 | 2,544,467 | |
Other assets: | |||
Deferred income taxes | 164,909 | 163,590 | |
Capitalized software costs, net | 245,134 | 240,597 | |
Patents, orbital slots and other licenses, net | 115,036 | 112,535 | |
Other | 226,746 | 217,225 | |
Other assets | 751,825 | 733,947 | |
Accrued and other liabilities: | |||
Collections in excess of revenues and deferred revenues | 277,665 | 260,264 | |
Accrued employee compensation | 85,092 | 177,854 | |
Accrued vacation | 49,576 | 48,636 | |
Operating lease liabilities | $ 69,808 | $ 71,561 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued and other liabilities | Accrued and other liabilities | |
Interest payable | $ 75,534 | $ 127,098 | |
Other | 233,427 | 265,208 | |
Accrued and other liabilities | 791,102 | 950,621 | |
Other liabilities: | |||
Deferred revenues, long-term portion | 878,053 | 896,402 | |
Deferred income taxes | 1,223,012 | 1,228,270 | |
Other | 321,213 | 327,428 | |
Other liabilities | 2,422,278 | 2,452,100 | |
Contracts and Customer Relationships [Member] | |||
Other acquired intangible assets, net: | |||
Other acquired intangible assets, gross | 1,436,728 | 1,437,738 | |
Orbital Slots And Spectrum Assets [Member] | |||
Other acquired intangible assets, net: | |||
Other acquired intangible assets, gross | 1,088,600 | 1,088,600 | |
Technology [Member] | |||
Other acquired intangible assets, net: | |||
Other acquired intangible assets, gross | 248,846 | 251,889 | |
Trade Names [Member] | |||
Other acquired intangible assets, net: | |||
Other acquired intangible assets, gross | 116,990 | 117,280 | |
Other [Member] | |||
Other acquired intangible assets, net: | |||
Other acquired intangible assets, gross | 21,739 | 21,792 | |
Equipment and Software [Member] | |||
Property, equipment and satellites, net: | |||
Property, equipment and satellites, gross | 3,051,930 | 2,992,325 | |
CPE Leased Equipment [Member] | |||
Property, equipment and satellites, net: | |||
Property, equipment and satellites, cost | 554,648 | 567,548 | |
Furniture and Fixtures [Member] | |||
Property, equipment and satellites, net: | |||
Property, equipment and satellites, gross | 65,338 | 65,433 | |
Leasehold Improvements [Member] | |||
Property, equipment and satellites, net: | |||
Property, equipment and satellites, gross | 211,668 | 209,162 | |
Buildings [Member] | |||
Property, equipment and satellites, net: | |||
Property, equipment and satellites, gross | 16,649 | 16,647 | |
Land [Member] | |||
Property, equipment and satellites, net: | |||
Property, equipment and satellites, gross | 20,789 | 20,787 | |
Construction in Progress [Member] | |||
Property, equipment and satellites, net: | |||
Property, equipment and satellites, gross | 1,361,156 | 1,301,376 | |
Satellites [Member] | |||
Prepaid expenses and other current assets: | |||
Insurance receivable | $ 770,000 | ||
Property, equipment and satellites, net: | |||
Property, equipment and satellites, gross | 3,325,299 | 3,324,458 | |
Satellite Ka-band Capacity Obtained under Finance Leases [Member] | |||
Property, equipment and satellites, net: | |||
Property, equipment and satellites, gross | 177,576 | 177,576 | |
Satellites under Construction [Member] | |||
Property, equipment and satellites, net: | |||
Property, equipment and satellites, gross | $ 2,071,760 | $ 1,976,469 |
Composition of Certain Balanc_4
Composition of Certain Balance Sheet Captions - Composition of Certain Balance Sheet Captions (Parenthetical) (Detail) | 3 Months Ended |
Jun. 30, 2024 | |
Contracts and Customer Relationships [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Other acquired intangible assets, weighted average useful life | 11 years |
Orbital Slots And Spectrum Assets [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Other acquired intangible assets, weighted average useful life | 12 years |
Technology [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Other acquired intangible assets, weighted average useful life | 7 years |
Trade Names [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Other acquired intangible assets, weighted average useful life | 8 years |
Other [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Other acquired intangible assets, weighted average useful life | 11 years |
Minimum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 2 years |
Maximum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 38 years |
Equipment and Software [Member] | Minimum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 3 years |
Equipment and Software [Member] | Maximum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 7 years |
CPE Leased Equipment [Member] | Minimum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 4 years |
CPE Leased Equipment [Member] | Maximum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 7 years |
Furniture and Fixtures [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 7 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 2 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 20 years |
Buildings [Member] | Minimum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 12 years |
Buildings [Member] | Maximum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 38 years |
Satellites [Member] | Minimum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 7 years |
Satellites [Member] | Maximum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 17 years |
Satellite Ka-band Capacity Obtained under Finance Leases [Member] | Minimum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 7 years |
Satellite Ka-band Capacity Obtained under Finance Leases [Member] | Maximum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 11 years |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2024 | |
Satellite Performance Incentives Obligation [Member] | Satellites [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Expiration year of in-orbit satellite performance incentive obligation | 2028 | |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities measured at fair value on a recurring basis | $ 0 | $ 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Satellite Performance Incentives Obligation [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Satellite performance incentives obligation | 14,800,000 | 15,900,000 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | 2025 Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long term debt | 679,000,000 | 680,800,000 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | 2027 Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long term debt | 535,500,000 | 564,000,000 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | 2028 Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long term debt | 303,000,000 | 307,500,000 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | 2031 Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long term debt | 484,700,000 | 529,900,000 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Ex-Im Credit Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long term debt | 28,800,000 | 38,500,000 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Inmarsat Senior Secured Notes 2026 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long term debt | $ 2,010,000,000 | $ 2,040,000,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 508,282 | $ 474,743 |
Interest rate cap contracts | 33,862 | 44,497 |
Total assets measured at fair value on a recurring basis | 542,144 | 519,240 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 508,282 | 474,743 |
Interest rate cap contracts | 0 | 0 |
Total assets measured at fair value on a recurring basis | 508,282 | 474,743 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate cap contracts | 33,862 | 44,497 |
Total assets measured at fair value on a recurring basis | $ 33,862 | $ 44,497 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
May 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Business Acquisition [Line Items] | |||
Total revenues | $ 1,126,460 | $ 779,791 | |
Net Income (Loss) | (32,912) | (77,004) | |
Inmarsat Holdings [Member] | |||
Business Acquisition [Line Items] | |||
The consideration transferred | $ 2,700,000 | ||
Payments to acquire business | 550,700 | ||
Issuance of common stock in connection with acquisition | $ 2,100,000 | ||
Shares issued in connection with acquisition of business, net of issuance costs, shares | 46,360 | ||
Unfavorable contract liabilities included in current liabilities | 29,600 | ||
Unfavorable contract liabilities included in other long term liabilities | $ 248,300 | ||
Unfavorable contract liabilities weighted average estimated useful life | 9 years | ||
Total revenues | 134,100 | ||
Inmarsat Holdings [Member] | Selling General and Administrative Expenses [Member] | |||
Business Acquisition [Line Items] | |||
Acquisition-related transaction costs | $ 0 | $ 27,400 | |
Communication Services [Member] | Inmarsat Holdings [Member] | |||
Business Acquisition [Line Items] | |||
Recognition of goodwill | $ 1,500,000 |
Acquisition - Summary of Purcha
Acquisition - Summary of Purchase Price Allocation of Acquired Assets and Assumed Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 | May 30, 2023 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,621,473 | $ 1,621,763 | |
Inmarsat Holdings [Member] | |||
Business Acquisition [Line Items] | |||
Current assets | $ 641,893 | ||
Property, equipment and satellites | 4,363,049 | ||
Identifiable intangible assets | 2,570,000 | ||
Other assets | 388,745 | ||
Total assets acquired | 7,963,687 | ||
Current liabilities | (598,296) | ||
Long-term debt, excluding short-term portion | (3,519,774) | ||
Other long-term liabilities | (2,629,406) | ||
Total liabilities assumed | (6,747,476) | ||
Goodwill | 1,462,881 | ||
Total consideration transferred | $ 2,679,092 |
Acquisition - Summary of Identi
Acquisition - Summary of Identifiable Intangible Assets Amortized on a Straight Line Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 30, 2023 | Jun. 30, 2024 | |
Inmarsat Holdings [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Preliminary fair value | $ 2,570,000 | |
Weighted Average Estimated Useful Life | 11 years | |
Orbital Slots And Spectrum Assets [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Estimated Useful Life | 12 years | |
Orbital Slots And Spectrum Assets [Member] | Inmarsat Holdings [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Preliminary fair value | $ 1,080,000 | |
Weighted Average Estimated Useful Life | 12 years | |
Customer Relationships [Member] | Inmarsat Holdings [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Preliminary fair value | $ 1,305,000 | |
Weighted Average Estimated Useful Life | 11 years | |
Technology [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Estimated Useful Life | 7 years | |
Technology [Member] | Inmarsat Holdings [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Preliminary fair value | $ 100,000 | |
Weighted Average Estimated Useful Life | 7 years | |
Trade Names [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Estimated Useful Life | 8 years | |
Trade Names [Member] | Inmarsat Holdings [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Preliminary fair value | $ 85,000 | |
Weighted Average Estimated Useful Life | 8 years | |
Other [Member] | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Weighted Average Estimated Useful Life | 11 years |
Acquisition - Summary of Profor
Acquisition - Summary of Proforma Financial Information (Details) - Inmarsat Holdings [Member] $ in Thousands | 3 Months Ended |
Jun. 30, 2023 USD ($) | |
Business Acquisition [Line Items] | |
Total revenues | $ 1,050,226 |
Net income (loss) attributable to Viasat, Inc. | $ (41,962) |
Shares Used In Computing Dilu_2
Shares Used In Computing Diluted Net Income (Loss) Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Employee Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares | 221,949 | 209,581 |
Market Based Performance Stock Options And Market Based Performance Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares | 0 | 1,714,844 |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares | 3,705,569 | 2,056,995 |
Performance-Based Performance Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares | 72,660 | 0 |
Viasat 401(k) Profit Sharing Plan and Employee Stock Purchase Plan [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares | 1,666,593 | 626,271 |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of acquired intangible assets | $ 66,215 | $ 27,811 |
Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other acquired intangible assets estimated useful lives | 2 years | |
Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other acquired intangible assets estimated useful lives | 20 years |
Senior Notes and Other Long-T_3
Senior Notes and Other Long-Term Debt - Components of Long-Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Debt Instrument [Line Items] | ||
Finance lease obligations (see Note 1) | $ 23,666 | $ 26,771 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other long-term debt | Other long-term debt |
Total debt | $ 7,456,369 | $ 7,475,842 |
Unamortized discount, debt issuance costs and fair value adjustments made in purchase accounting | (269,757) | (288,553) |
Less: current portion of long-term debt | 57,764 | 58,054 |
Total long-term debt | 7,128,848 | 7,129,235 |
2031 Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | 733,400 | 733,400 |
2028 Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | 400,000 | 400,000 |
2027 Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | 600,000 | 600,000 |
Inmarsat 2026 Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | 2,075,000 | 2,075,000 |
2025 Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | 700,000 | 700,000 |
2022 Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | 686,000 | 687,750 |
2023 Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | 612,075 | 613,617 |
Inmarsat Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | 1,596,750 | 1,600,000 |
Ex-Im Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount of debt | $ 29,478 | $ 39,304 |
Senior Notes and Other Long-T_4
Senior Notes and Other Long-Term Debt - 2022 Term Loan Facility (Detail) - 2022 Term Loan Facility [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | ||
Credit Facility maximum borrowing capacity | $ 700,000 | |
Maturity date | Mar. 04, 2029 | |
Outstanding borrowings under the Credit Facility | $ 686,000 | |
Term loan facility quarterly installments required to be repaid | $ 1,750 | |
Line of credit facility, date of first required payment | Sep. 30, 2022 | |
Final installment, principal | $ 654,500 | |
Credit Facility interest rate description | Borrowings under the 2022 Term Loan Facility bear interest, at the Company’s option, at either (1) a base rate equal to the greater of the administrative agent’s prime rate as announced from time to time, the federal funds effective rate plus 0.50%, and the forward-looking term SOFR rate administered by CME for a one-month interest period plus 1.00%, subject to a floor of 1.50% for the initial term loans, plus an applicable margin of 3.50%, or (2) the forward-looking term SOFR rate administered by CME for the applicable interest period, subject to a floor of 0.50% for the initial term loans, plus an applicable margin of 4.50%. As of June 30, 2024, the effective interest rate on the Company’s outstanding borrowings under the 2022 Term Loan Facility was 10.38% | |
Effective interest rate | 10.38% | |
Credit facility description | The 2022 Term Loan Facility contains covenants that restrict, among other things, the ability of Company and its restricted subsidiaries to incur additional debt, grant liens, sell assets, make investments, pay dividends and make certain other restricted payments. | |
Debt instrument unamortized discount percentage | 2% | |
Original issue discount | $ 14,000 |
Senior Notes and Other Long-T_5
Senior Notes and Other Long-Term Debt - 2023 Term Loan Facility (Detail) - 2023 Term Loan Facility [Member] - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2024 | May 30, 2023 | |
Debt Instrument [Line Items] | ||
Credit Facility maximum borrowing capacity | $ 616.7 | |
Maturity date | May 30, 2030 | |
Outstanding borrowings under the Credit Facility | $ 612.1 | |
Credit Facility interest rate description | Borrowings under the 2023 Term Loan Facility are required to be repaid in quarterly installments of $1.5 million each, which commenced on December 31, 2023, followed by a final installment of $576.6 million at maturity. Borrowings under the 2023 Term Loan Facility bear interest, at the Company's option, at either (1) a base rate equal to the greater of the administrative agent’s prime rate as announced from time to time, the federal funds effective rate plus 0.50%, and the forward-looking term SOFR rate administered by CME for a one-month interest period plus 1.00%, subject to a floor of 1.50% for the initial term loans, plus an applicable margin of 3.50%, or (2) the forward-looking term SOFR rate administered by CME for the applicable interest period, subject to a floor of 0.50% for the initial term loans, plus an applicable margin of 4.50%, plus a credit spread adjustment ranging from 0.11% to 0.43%. As of June 30, 2024, the effective interest rate on the Company’s outstanding borrowings under the 2023 Term Loan Facility was 10.92%. | |
Term loan facility quarterly installments required to be repaid | $ 1.5 | |
Line of credit facility, date of first required payment | Dec. 31, 2023 | |
Final installment, principal | $ 576.6 | |
Effective interest rate | 10.92% | |
Credit facility description | The 2023 Term Loan Facility contains covenants that restrict, among other things, the ability of Company and its restricted subsidiaries to incur additional debt, grant liens, sell assets, make investments, pay dividends and make certain other restricted payments. | |
Debt instrument unamortized discount percentage | 2.50% | |
Original issue discount | $ 15.4 |
Senior Notes and Other Long-T_6
Senior Notes and Other Long-Term Debt - Ex-Im Credit Facility (Detail) - Ex-Im Credit Facility [Member] $ in Millions | 3 Months Ended |
Jun. 30, 2024 USD ($) Installment | |
Debt Instrument [Line Items] | |
Credit Facility maximum borrowing capacity | $ 362.4 |
Amount of qualified ViaSat-2 satellite costs limited to finance | $ 321.2 |
Percent of qualified ViaSat-2 expenses used to finance | 85% |
The maximum exposure fees under Ex-Im Credit Facility | $ 41.2 |
Outstanding borrowings under the Credit Facility | $ 29.5 |
Interest rate on the outstanding borrowings | 2.38% |
Effective interest rate | 4.54% |
Required number of installment repayments | Installment | 16 |
Credit facility repayment commenced date | Apr. 15, 2018 |
Debt maturity date | Oct. 15, 2025 |
Credit facility description | The Ex-Im Credit Facility contains financial covenants regarding Viasat’s maximum total leverage ratio and minimum interest coverage ratio. In addition, the Ex-Im Credit Facility contains covenants that restrict, among other things, the Company’s ability to sell assets, make investments and acquisitions, make capital expenditures, grant liens, pay dividends and make certain other restricted payments. |
Cumulative Ex-Im Credit Facility loan discount | $ 42.3 |
The exposure fees paid under Ex-Im Credit Facility borrowings | 6 |
Exposure fees included in the principal | $ 35.3 |
Senior Notes and Other Long-T_7
Senior Notes and Other Long-Term Debt - Viasat Revolving Credit Facility (Detail) - Viasat Revolving Credit Facility [Member] | 3 Months Ended |
Jun. 30, 2024 USD ($) | |
Debt Instrument [Line Items] | |
Credit Facility maximum borrowing capacity | $ 647,500,000 |
Maturity date | Aug. 24, 2028 |
Outstanding borrowings under the Credit Facility | $ 0 |
Borrowing availability under the Credit Facility | $ 588,300,000 |
Credit Facility interest rate description | Borrowings under the Viasat Revolving Credit Facility bear interest, at the Company’s option, at either (1) the highest of the federal funds rate plus 0.50%, forward-looking term SOFR (as defined in the definitive credit agreement governing the Viasat Revolving Credit Facility) for an interest period of one month plus 1.00%, or the administrative agent’s prime rate as announced from time to time, or (2) forward-looking term SOFR (not to be less than 0.00% per annum), plus, in the case of each of (1) and (2), an applicable margin that is based on the Company’s total leverage ratio. |
Credit facility description | The Viasat Revolving Credit Facility contains financial covenants regarding a maximum total leverage ratio and a minimum interest coverage ratio. In addition, the Viasat Revolving Credit Facility contains covenants that restrict, among other things, the Company’s ability to incur additional debt, grant liens, sell assets, make investments and acquisitions, make capital expenditures, pay dividends and make certain other restricted payments. The Company was in compliance with its financial covenants under the Viasat Revolving Credit Facility as of June 30, 2024. |
Letter of Credit [Member] | |
Debt Instrument [Line Items] | |
Credit Facility maximum borrowing capacity | $ 150,000,000 |
Standby letters of credit outstanding amount | $ 59,200,000 |
Senior Notes and Other Long-T_8
Senior Notes and Other Long-Term Debt - Inmarsat Secured Credit Facility (Detail) - USD ($) | 3 Months Ended | |||
Mar. 28, 2024 | Mar. 27, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | |
Inmarsat Secured Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility description | As of June 30, 2024, the Inmarsat Secured Credit Facilities comprised an aggregate of $1.6 billion of Inmarsat Term Loan Facilities (consisting of the new $1.3 billion New Term Loan Facility and $300.0 million in aggregate principal amount of outstanding borrowings under the prior Inmarsat term loan facility (the Original Term Loan Facility)) and Inmarsat's $550.0 million revolving line of credit (including up to $100.0 million of letters of credit) (the Inmarsat Revolving Credit Facility). | |||
Inmarsat Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility description | The Inmarsat Secured Credit Facilities contain covenants that restrict, among other things, Inmarsat’s ability to incur additional debt, grant liens, sell assets, make investments and acquisitions, pay dividends and make certain other restricted payments. In addition, financial covenants regarding Inmarsat’s total net leverage ratio and interest coverage ratio apply to the Inmarsat Revolving Credit Facility. The borrowers under the Inmarsat Secured Credit Facilities were in compliance with the financial covenants under the Inmarsat Secured Credit Facilities as of June 30, 2024. | |||
Principal amount of debt | $ 1,596,750,000 | $ 1,600,000,000 | ||
Credit Facility interest rate description | Borrowings under the Inmarsat Secured Credit Facilities: (1) in the case of borrowings denominated in U.S. Dollars, bear interest, at Inmarsat's option, at either (i) the highest of (x) for the Original Term Loan Facility, the greater of the federal funds rate or the overnight banking fund rate for such day plus 0.50% and for the New Term Loan Facility, the federal funds rate plus 0.50%, (y) the forward-looking one-month term SOFR rate plus 1.00% or (z) the administrative agent's prime rate as announced from time to time, or (ii) the forward-looking term SOFR rate for the applicable interest period (subject to, in the case of the New Term Loan Facility, a floor of 0.50% per annum, in the case of the Inmarsat Revolving Credit Facility, a floor of 0.00% per annum and, in the case of the Original Term Loan Facility, a floor of 1.00% per annum), and (2) in the case of borrowings denominated in available currencies other than U.S. Dollars, bear interest based upon the applicable benchmark for such currencies (as described in the Inmarsat Secured Credit Facilities) plus, in all cases, an applicable margin. The applicable margin for the Original Term Loan Facility is 2.50% per annum for base rate loans and 3.50% per annum for SOFR loans. The applicable margin for the New Term Loan Facility is 3.50% per annum for base rate loans and 4.50% per annum for SOFR loans. The applicable margin for borrowings under the Inmarsat Revolving Credit Facility is based on Inmarsat’s total net leverage ratio and ranges between 1.50% and 2.25% per annum for base rate loans and 2.50% and 3.25% per annum for SOFR loans. As of June 30, 2024, the weighted average effective interest rate on the Company's outstanding borrowings under the Inmarsat Term Loan Facilities, including the impact of interest rate cap contracts (see Note 1 — Basis of Presentation – Derivatives for more information), was approximately 9.48%. The Inmarsat Secured Credit Facilities are required to be guaranteed by certain material Inmarsat subsidiaries and secured by substantially all of the assets of the Inmarsat borrowers and subsidiary guarantors. | |||
Effective interest rate | 9.48% | |||
Inmarsat Term Loan Facility [Member] | Inmarsat Original Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding borrowings under the Credit Facility | $ 300,000,000 | $ 300,000,000 | ||
Repayment of outstanding borrowings under the credit facility | $ 1,380,000,000 | |||
Maturity date | Dec. 12, 2026 | |||
Final installment payment at the maturity date | $ 300,000,000 | |||
Term loan facility quarterly installments required to be repaid | 0 | |||
Inmarsat Term Loan Facility [Member] | Inmarsat New Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal amount of debt | $ 1,300,000,000 | $ 1,300,000,000 | ||
Maturity date | Sep. 28, 2029 | |||
Line of credit facility, date of first required payment | Jun. 30, 2024 | |||
Final installment payment at the maturity date | $ 1,230,000,000 | |||
Term loan facility quarterly installments required to be repaid | 3,250,000 | |||
Debt instrument unamortized discount percentage | 2% | |||
Inmarsat Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 550,000,000 | |||
Credit Facility maximum borrowing capacity | $ 550,000,000 | $ 700,000,000 | ||
Maturity date | Mar. 31, 2027 | Dec. 31, 2024 | ||
Credit facility borrowings outstanding | 100,000,000 | |||
Inmarsat Revolving Credit Facility [Member] | Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit Facility maximum borrowing capacity | 100,000,000 | |||
Standby letters of credit outstanding amount | $ 0 |
Senior Notes and Other Long-T_9
Senior Notes and Other Long-Term Debt - Senior Notes (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||||||
Sep. 28, 2023 | Aug. 09, 2024 | Jul. 31, 2024 | Jun. 30, 2020 | Oct. 31, 2019 | Mar. 31, 2019 | Sep. 30, 2017 | Jun. 30, 2024 | May 30, 2023 | |
Subsequent Event [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount of senior notes repurchased | $ 152.2 | ||||||||
2031 Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount of senior notes issued | $ 733.4 | ||||||||
Debt maturity year | 2031 | ||||||||
Interest rate on the outstanding borrowings | 7.50% | ||||||||
2031 Notes [Member] | Debt Instrument, Redemption, Other Period One [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption description of Senior Notes | Prior to May 30, 2026, the Company may redeem up to 40% of the 2031 Notes at a redemption price of 107.500% of the principal amount thereof, plus accrued and unpaid interest, if any, thereon to the redemption date, from the net cash proceeds of specified equity offerings. | ||||||||
Redemption price percentage of Senior Notes | 107.50% | ||||||||
2031 Notes [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption description of Senior Notes | The Company may also redeem the 2031 Notes prior to May 30, 2026, in whole or in part, at a redemption price equal to 100% of the principal amount thereof plus a “make whole” premium and any accrued and unpaid interest, if any, thereon to the redemption date. | ||||||||
Redemption price percentage of Senior Notes | 100% | ||||||||
2031 Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption description of Senior Notes | The 2031 Notes may be redeemed, in whole or in part, at any time during the 12 months beginning on May 30, 2026 at a redemption price of 103.750% | ||||||||
Redemption price percentage of Senior Notes | 103.75% | ||||||||
2031 Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption description of Senior Notes | during the 12 months beginning on May 30, 2027 at a redemption price of 101.875% | ||||||||
Redemption price percentage of Senior Notes | 101.875% | ||||||||
2031 Notes [Member] | Debt Instrument, Redemption, Period Four [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption description of Senior Notes | after May 30, 2028 at a redemption price of 100%, in each case plus accrued and unpaid interest, if any, thereon to the redemption date. | ||||||||
Redemption price percentage of Senior Notes | 100% | ||||||||
2031 Notes [Member] | Change of Control [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption description of Senior Notes | In the event a change of control triggering event occurs (as defined in the indenture governing the 2031 Notes), each holder will have the right to require the Company to repurchase all or any part of such holder’s 2031 Notes at a purchase price in cash equal to 101% of the aggregate principal amount of the 2031 Notes repurchased, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date). | ||||||||
Redemption price percentage of Senior Notes | 101% | ||||||||
2028 Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount of senior notes issued | $ 400 | ||||||||
Debt maturity year | 2028 | ||||||||
Interest rate on the outstanding borrowings | 6.50% | ||||||||
2028 Notes [Member] | Debt Instrument, Redemption, Other Period One [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption description of Senior Notes | in whole or in part, at any time | ||||||||
2028 Notes [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption description of Senior Notes | during the 12 months beginning on July 15, 2024 at a redemption price of 101.625% | ||||||||
Redemption price percentage of Senior Notes | 101.625% | ||||||||
2028 Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption description of Senior Notes | at any time on or after July 15, 2025 at a redemption price of 100%, in each case plus accrued and unpaid interest, if any, thereon to the redemption date. | ||||||||
Redemption price percentage of Senior Notes | 100% | ||||||||
2028 Notes [Member] | Change of Control [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption description of Senior Notes | In the event a change of control triggering event occurs (as defined in the indenture governing the 2028 Notes), each holder will have the right to require the Company to repurchase all or any part of such holder’s 2028 Notes at a purchase price in cash equal to 101% of the aggregate principal amount of the 2028 Notes repurchased, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date). | ||||||||
Redemption price percentage of Senior Notes | 101% | ||||||||
2027 Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount of senior notes issued | $ 600 | ||||||||
Debt maturity year | 2027 | ||||||||
Interest rate on the outstanding borrowings | 5.625% | ||||||||
2027 Notes [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption description of Senior Notes | in whole or in part, at any time at a redemption price of 100% plus accrued and unpaid interest, if any, thereon to the redemption date. | ||||||||
2027 Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption price percentage of Senior Notes | 100% | ||||||||
2027 Notes [Member] | Change of Control [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption description of Senior Notes | In the event a change of control triggering event occurs (as defined in the indenture governing the 2027 Notes), each holder will have the right to require the Company to repurchase all or any part of such holder’s 2027 Notes at a purchase price in cash equal to 101% of the aggregate principal amount of the 2027 Notes repurchased, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date). | ||||||||
Redemption price percentage of Senior Notes | 101% | ||||||||
2025 Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount of senior notes issued | $ 700 | ||||||||
Debt maturity year | 2025 | ||||||||
Interest rate on the outstanding borrowings | 5.625% | ||||||||
2025 Notes [Member] | Subsequent Event [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount of senior notes repurchased | $ 50.5 | 50.5 | |||||||
2025 Notes [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption description of Senior Notes | in whole or in part, at any time at a redemption price of 100% plus accrued and unpaid interest, if any, thereon to the redemption date. | ||||||||
2025 Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption description of Senior Notes | at any time at a redemption price of 100% plus accrued and unpaid interest, if any, thereon to the redemption date. | ||||||||
Redemption price percentage of Senior Notes | 100% | ||||||||
2025 Notes [Member] | Change of Control [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption description of Senior Notes | In the event a change of control triggering event occurs (as defined in the indenture governing the 2025 Notes), each holder will have the right to require the Company to repurchase all or any part of such holder’s 2025 Notes at a purchase price in cash equal to 101% of the aggregate principal amount of the 2025 Notes repurchased, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date). | ||||||||
Redemption price percentage of Senior Notes | 101% | ||||||||
Inmarsat Senior Secured Notes 2026 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount of senior notes issued | $ 2,080 | ||||||||
Debt maturity year | 2026 | ||||||||
Interest rate on the outstanding borrowings | 6.75% | ||||||||
Inmarsat Senior Secured Notes 2026 [Member] | Subsequent Event [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount of senior notes repurchased | $ 101.7 | $ 101.7 | |||||||
Inmarsat Senior Secured Notes 2026 [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption description of Senior Notes | in whole or in part, at any time | ||||||||
Inmarsat Senior Secured Notes 2026 [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption description of Senior Notes | during the 12 months beginning on October 1, 2023 at a redemption price of 101.688% | ||||||||
Redemption price percentage of Senior Notes | 101.688% | ||||||||
Inmarsat Senior Secured Notes 2026 [Member] | Debt Instrument, Redemption, Period Three [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption description of Senior Notes | and at any time on or after October 1, 2024 at a redemption price of 100%, in each case, plus accrued and unpaid interest, if any, thereon to the redemption date. | ||||||||
Redemption price percentage of Senior Notes | 100% | ||||||||
Inmarsat Senior Secured Notes 2026 [Member] | Change of Control [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption description of Senior Notes | In the event a change of control occurs (as defined in the indenture governing the Inmarsat 2026 Notes), each holder will have the right to require Inmarsat to repurchase all or any part of such holder’s Inmarsat 2026 Notes at a purchase price in cash equal to 101% of the aggregate principal amount of the Inmarsat 2026 Notes repurchased, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date). The consummation of the Inmarsat Acquisition did not give rise to a “change of control” under the indenture governing the Inmarsat 2026 Notes. | ||||||||
Redemption price percentage of Senior Notes | 101% | ||||||||
Bridge Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit Facility maximum borrowing capacity | $ 733.4 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues | $ 1,126,460 | $ 779,791 | |
Amount receivable | 694,889 | $ 678,210 | |
Navarino UK And JSAT Mobile [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues | 16,800 | 6,100 | |
Cash received | 19,300 | $ 5,900 | |
Amount receivable | $ 9,600 | $ 13,200 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Loss Contingencies [Line Items] | |||
Revenues | $ 1,126,460 | $ 779,791 | |
Interest income | 22,792 | $ 19,189 | |
Defense and Advanced Technologies [Member] | Positive Outcome Of Litigation [Member] | |||
Loss Contingencies [Line Items] | |||
Revenues | 41,700 | ||
Unfavorable Regulatory Action [Member] | |||
Loss Contingencies [Line Items] | |||
U.S. government contract-related reserves | $ 7,400 | $ 16,600 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | |
Operating Loss Carryforwards [Line Items] | |||
(Provision for) benefit from income taxes | $ (1,184) | $ 533 | |
Effective income tax rate | (5.00%) | 1% | |
Valuation allowance | $ 352,900 | $ 353,600 | |
Increase (decrease) in unrecognized tax benefits income tax penalties and interest expense | (1,100) | ||
Impact on effective tax rate | 16,200 | ||
Unrecognized tax benefits | $ 186,400 |
Segment Information - Segment R
Segment Information - Segment Revenues and Operating Profits (Losses) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues: | ||
Total revenues | $ 1,126,460 | $ 779,791 |
Operating profits (losses): | ||
Income (loss) from operations | 59,735 | (41,516) |
Amortization of acquired intangible assets | (66,215) | (27,811) |
Product [Member] | ||
Revenues: | ||
Total revenues | 305,739 | 236,372 |
Service [Member] | ||
Revenues: | ||
Total revenues | 820,721 | 543,419 |
Operating Segments [Member] | ||
Operating profits (losses): | ||
Income (loss) from operations | 125,950 | (13,705) |
Operating Segments [Member] | Communication Services [Member] | ||
Revenues: | ||
Total revenues | 826,787 | 560,260 |
Operating profits (losses): | ||
Income (loss) from operations | 41,939 | (9,943) |
Operating Segments [Member] | Communication Services [Member] | Government Satcom Services [Member] | ||
Revenues: | ||
Total revenues | 183,873 | 82,624 |
Operating Segments [Member] | Communication Services [Member] | Aviation Services [Member] | ||
Revenues: | ||
Total revenues | 257,155 | 151,112 |
Operating Segments [Member] | Communication Services [Member] | Maritime Services [Member] | ||
Revenues: | ||
Total revenues | 123,947 | 45,345 |
Operating Segments [Member] | Communication Services [Member] | Fixed Services and Other Services [Member] | ||
Revenues: | ||
Total revenues | 201,636 | 214,692 |
Operating Segments [Member] | Communication Services [Member] | Product [Member] | ||
Revenues: | ||
Total revenues | 60,176 | 66,487 |
Operating Segments [Member] | Communication Services [Member] | Service [Member] | ||
Revenues: | ||
Total revenues | 766,611 | 493,773 |
Operating Segments [Member] | Defense and Advanced Technologies [Member] | ||
Revenues: | ||
Total revenues | 299,673 | 219,531 |
Operating profits (losses): | ||
Income (loss) from operations | 84,011 | (3,762) |
Operating Segments [Member] | Defense and Advanced Technologies [Member] | Information Security and Cyber Defense Products [Member] | ||
Revenues: | ||
Total revenues | 55,507 | 56,676 |
Operating Segments [Member] | Defense and Advanced Technologies [Member] | Space and Mission Systems Products [Member] | ||
Revenues: | ||
Total revenues | 73,306 | 72,387 |
Operating Segments [Member] | Defense and Advanced Technologies [Member] | Tactical Networking Products [Member] | ||
Revenues: | ||
Total revenues | 71,410 | 37,384 |
Operating Segments [Member] | Defense and Advanced Technologies [Member] | Advanced Technologies and Other Products [Member] | ||
Revenues: | ||
Total revenues | 45,340 | 3,438 |
Operating Segments [Member] | Defense and Advanced Technologies [Member] | Product [Member] | ||
Revenues: | ||
Total revenues | 245,563 | 169,885 |
Operating Segments [Member] | Defense and Advanced Technologies [Member] | Service [Member] | ||
Revenues: | ||
Total revenues | 54,110 | 49,646 |
Material Reconciling Items [Member] | ||
Operating profits (losses): | ||
Amortization of acquired intangible assets | $ (66,215) | $ (27,811) |
Segment Information - Segment A
Segment Information - Segment Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Mar. 31, 2024 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 16,087,869 | $ 16,329,364 |
Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 5,120,182 | 5,160,985 |
Operating Segments [Member] | Communication Services [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 4,752,423 | 4,819,535 |
Operating Segments [Member] | Defense and Advanced Technologies [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 367,759 | 341,450 |
Corporate, Non-Segment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 10,967,687 | $ 11,168,379 |
Segment Information - Other Acq
Segment Information - Other Acquired Intangible Assets, Net, Goodwill Included in Segment Assets and Depreciation and Amortization of Acquired Intangible Assets by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | ||
Segment Reporting Information [Line Items] | ||||
Other acquired intangible assets, net | $ 2,475,492 | $ 2,544,467 | ||
Goodwill | 1,621,473 | 1,621,763 | ||
Depreciation and amortization of intangible assets | 331,204 | $ 174,579 | ||
Operating Segments [Member] | Communication Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Other acquired intangible assets, net | 2,475,492 | 2,544,315 | ||
Goodwill | 1,581,631 | 1,581,937 | ||
Depreciation and amortization of intangible assets | 249,133 | 134,783 | ||
Operating Segments [Member] | Defense and Advanced Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Other acquired intangible assets, net | 152 | |||
Goodwill | 39,842 | $ 39,826 | ||
Depreciation and amortization of intangible assets | 15,856 | 11,985 | ||
Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization of intangible assets | [1] | $ 66,215 | $ 27,811 | |
[1] Corporate amounts include the amortization of acquired intangible assets as they are not considered part of management’s evaluation of segment performance. |
Segment Information - Revenues
Segment Information - Revenues by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 1,126,460 | $ 779,791 |
U.S. Customers [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 776,495 | 593,162 |
Non U.S. Customers [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | $ 349,965 | $ 186,629 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event [Member] - USD ($) $ in Millions | 1 Months Ended | |
Aug. 09, 2024 | Jul. 31, 2024 | |
Subsequent Event [Line Items] | ||
Principal amount of senior notes repurchased | $ 152.2 | |
Inmarsat Senior Secured Notes 2026 [Member] | ||
Subsequent Event [Line Items] | ||
Principal amount of senior notes repurchased | $ 101.7 | 101.7 |
2025 Notes [Member] | ||
Subsequent Event [Line Items] | ||
Principal amount of senior notes repurchased | $ 50.5 | $ 50.5 |