Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Jul. 04, 2014 | Aug. 01, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 4-Jul-14 | ' |
Document Fiscal Year Focus | '2015 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'VSAT | ' |
Entity Registrant Name | 'VIASAT INC | ' |
Entity Central Index Key | '0000797721 | ' |
Current Fiscal Year End Date | '--04-03 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 46,712,748 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Jul. 04, 2014 | Apr. 04, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $58,140 | $58,347 |
Accounts receivable, net | 279,148 | 271,891 |
Inventories | 128,567 | 119,601 |
Deferred income taxes | 34,482 | 37,712 |
Prepaid expenses and other current assets | 40,681 | 44,070 |
Total current assets | 541,018 | 531,621 |
Other acquired intangible assets, net | 56,106 | 35,397 |
Goodwill | 117,930 | 83,627 |
Other assets | 267,511 | 256,968 |
Total assets | 2,056,280 | 1,960,115 |
Current liabilities: | ' | ' |
Accounts payable | 86,379 | 98,852 |
Accrued liabilities | 166,665 | 175,974 |
Total current liabilities | 253,044 | 274,826 |
Senior notes, net | 583,567 | 583,861 |
Other long-term debt | 205,832 | 105,900 |
Other liabilities | 46,178 | 48,893 |
Total liabilities | 1,088,621 | 1,013,480 |
Commitments and contingencies (Note 8) | ' | ' |
ViaSat, Inc. stockholders' equity | ' | ' |
Common stock | 5 | 5 |
Paid-in capital | 753,840 | 776,452 |
Retained earnings | 205,656 | 211,600 |
Common stock held in treasury | ' | -49,358 |
Accumulated other comprehensive income | 2,912 | 2,313 |
Total ViaSat, Inc. stockholders' equity | 962,413 | 941,012 |
Noncontrolling interest in subsidiary | 5,246 | 5,623 |
Total equity | 967,659 | 946,635 |
Total liabilities and equity | 2,056,280 | 1,960,115 |
Property Plant and Equipment - Satellites [Member] | ' | ' |
Current assets: | ' | ' |
Property and equipment, net | 659,154 | 630,836 |
Property Plant and Equipment - Excluding Satellites [Member] | ' | ' |
Current assets: | ' | ' |
Property and equipment, net | $414,561 | $421,666 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jul. 04, 2014 | Jun. 28, 2013 |
Revenues: | ' | ' |
Product revenues | $168,129 | $182,161 |
Service revenues | 151,342 | 138,941 |
Total revenues | 319,471 | 321,102 |
Operating expenses: | ' | ' |
Cost of product revenues | 128,994 | 129,414 |
Cost of service revenues | 108,741 | 105,893 |
Selling, general and administrative | 69,096 | 64,781 |
Independent research and development | 9,780 | 14,089 |
Amortization of acquired intangible assets | 4,029 | 3,501 |
(Loss) income from operations | -1,169 | 3,424 |
Other income (expense): | ' | ' |
Interest income | 26 | 21 |
Interest expense | -8,629 | -10,163 |
Loss before income taxes | -9,772 | -6,718 |
Benefit from income taxes | -3,451 | -5,231 |
Net loss | -6,321 | -1,487 |
Less: Net (loss) income attributable to the noncontrolling interest, net of tax | -377 | 347 |
Net loss attributable to ViaSat, Inc. | -5,944 | -1,834 |
Basic net loss per share attributable to ViaSat, Inc. common stockholders | ($0.13) | ($0.04) |
Diluted net loss per share attributable to ViaSat, Inc. common stockholders | ($0.13) | ($0.04) |
Shares used in computing basic net loss per share | 46,528 | 45,110 |
Shares used in computing diluted net loss per share | 46,528 | 45,110 |
Comprehensive loss: | ' | ' |
Net loss | -6,321 | -1,487 |
Other comprehensive income (loss), net of tax: | ' | ' |
Unrealized gain on hedging, net of tax | 7 | 77 |
Foreign currency translation adjustments, net of tax | 592 | -42 |
Other comprehensive income, net of tax | 599 | 35 |
Comprehensive loss | -5,722 | -1,452 |
Less: comprehensive (loss) income attributable to the noncontrolling interest, net of tax | -377 | 347 |
Comprehensive loss attributable to ViaSat, Inc. | ($5,345) | ($1,799) |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jul. 04, 2014 | Jun. 28, 2013 |
Cash flows from operating activities: | ' | ' |
Net loss | ($6,321) | ($1,487) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation | 43,126 | 36,226 |
Amortization of intangible assets | 8,481 | 5,889 |
Deferred income taxes | -3,060 | -5,888 |
Stock-based compensation expense | 8,904 | 7,490 |
Loss on disposition of fixed assets | 9,214 | 6,036 |
Other non-cash adjustments | 1,178 | 1,200 |
Increase (decrease) in cash resulting from changes in operating assets and liabilities, net of effects of acquisitions: | ' | ' |
Accounts receivable | -5,726 | 5,474 |
Inventories | -8,138 | -14,245 |
Other assets | 4,480 | 1,728 |
Accounts payable | -1,204 | 18,994 |
Accrued liabilities | -1,589 | -8,012 |
Other liabilities | -2,434 | 417 |
Net cash provided by operating activities | 46,911 | 53,822 |
Cash flows from investing activities: | ' | ' |
Purchase of property, equipment and satellites | -85,513 | -73,030 |
Cash paid for patents, licenses and other assets | -12,238 | -11,776 |
Payments related to acquisition of businesses, net of cash acquired | -56,545 | -2,400 |
Net cash used in investing activities | -154,296 | -87,206 |
Cash flows from financing activities: | ' | ' |
Proceeds from revolving credit facility borrowings | 130,000 | ' |
Payments of revolving credit facility borrowings | -30,000 | ' |
Proceeds from issuance of common stock under equity plans | 7,791 | 8,279 |
Purchase of common stock in treasury related to tax withholdings for stock-based compensation | -375 | -273 |
Other | -385 | -574 |
Net cash provided by financing activities | 107,031 | 7,432 |
Effect of exchange rate changes on cash | 147 | -104 |
Net decrease in cash and cash equivalents | -207 | -26,056 |
Cash and cash equivalents at beginning of period | 58,347 | 105,738 |
Cash and cash equivalents at end of period | 58,140 | 79,682 |
Non-cash investing and financing activities: | ' | ' |
Issuance of common stock in satisfaction of certain accrued employee compensation liabilities | 10,194 | 8,018 |
Capital expenditures not paid for | $882 | $19,534 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Equity (Unaudited) (USD $) | Total | Common Stock [Member] | Paid-in Capital [Member] | Retained Earnings [Member] | Common Stock Held in Treasury [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest in Subsidiary [Member] |
In Thousands, except Share data | |||||||
Beginning balance at Apr. 04, 2014 | $946,635 | $5 | $776,452 | $211,600 | ($49,358) | $2,313 | $5,623 |
Beginning balance, shares at Apr. 04, 2014 | ' | ' | ' | ' | -1,190,572 | ' | ' |
Beginning balance, shares at Apr. 04, 2014 | ' | 47,419,831 | ' | ' | ' | ' | ' |
Exercise of stock options | 4,263 | ' | 4,263 | ' | ' | ' | ' |
Exercise of stock options, shares | ' | 201,216 | ' | ' | ' | ' | ' |
Issuance of stock under Employee Stock Purchase Plan | 3,528 | ' | 3,528 | ' | ' | ' | ' |
Issuance of stock under Employee Stock Purchase Plan, shares | ' | 71,610 | ' | ' | ' | ' | ' |
Stock-based compensation | 9,136 | ' | 9,136 | ' | ' | ' | ' |
Shares issued in settlement of certain accrued employee compensation liabilities | 10,194 | ' | 10,194 | ' | ' | ' | ' |
Shares issued in settlement of certain accrued employee compensation liabilities, shares | ' | 180,526 | ' | ' | ' | ' | ' |
RSU awards vesting, shares | ' | 20,438 | ' | ' | ' | ' | ' |
Purchase of treasury shares pursuant to vesting of certain RSU agreements | -375 | ' | ' | ' | -375 | ' | ' |
Purchase of treasury shares pursuant to vesting of certain RSU agreements, shares | ' | ' | ' | ' | -6,791 | ' | ' |
Retirement of common stock held in treasury | ' | ' | -49,733 | ' | 49,733 | ' | ' |
Retirement of common stock held in treasury, shares | ' | -1,197,363 | ' | ' | 1,197,363 | ' | ' |
Net loss | -6,321 | ' | ' | -5,944 | ' | ' | -377 |
Other comprehensive income, net of tax | 599 | ' | ' | ' | ' | 599 | ' |
Ending balance at Jul. 04, 2014 | $967,659 | $5 | $753,840 | $205,656 | ' | $2,912 | $5,246 |
Ending balance, shares at Jul. 04, 2014 | ' | ' | ' | ' | 0 | ' | ' |
Ending balance, shares at Jul. 04, 2014 | ' | 46,696,258 | ' | ' | ' | ' | ' |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Jul. 04, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Note 1 — Basis of Presentation | |
The accompanying condensed consolidated balance sheet at July 4, 2014, the condensed consolidated statements of operations and comprehensive income (loss) for the three months ended July 4, 2014 and June 28, 2013, the condensed consolidated statements of cash flows for the three months ended July 4, 2014 and June 28, 2013 and the condensed consolidated statement of equity for the three months ended July 4, 2014 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 April 4, 2014 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 April 4, 2014 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 TrellisWare Technologies, Inc. (TrellisWare), a majority-owned subsidiary. All significant intercompany amounts have been eliminated. | |
The Company’s fiscal year is the 52 or 53 weeks ending on the Friday closest to March 31 of the specified year. For example, references to fiscal year 2015 refer to the fiscal year ending on April 3, 2015. The Company’s quarters for fiscal year 2015 end on July 4, 2014, October 3, 2014, January 2, 2015 and April 3, 2015. This results in a 53 week fiscal year approximately every four to five years. Fiscal year 2015 is a 52 week year, compared with a 53 week year in fiscal year 2014. As a result of the shift in the fiscal calendar, the second quarter of fiscal year 2014 included an additional week. The Company does not believe that the extra week results in any material impact on its financial results. | |
During the first quarter of fiscal year 2015, the Company completed the acquisition of NetNearU Corp. (NetNearU), a privately held Delaware corporation. During the first quarter of fiscal year 2014, the Company completed the acquisition of LonoCloud, Inc. (LonoCloud), an early-stage privately held company. These acquisitions were accounted for as purchases and, accordingly, the condensed consolidated financial statements include the operating results of NetNearU and LonoCloud from the dates of acquisition (see Note 10). | |
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, self-insurance reserves, allowance for doubtful accounts, warranty accruals, 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 | |
A substantial portion of the Company’s revenues is derived from long-term contracts requiring development and delivery of complex equipment built to customer specifications. Sales related to long-term contracts are accounted for under the authoritative guidance for the percentage-of-completion method of accounting (Accounting Standards Codification (ASC) 605-35). Sales and earnings under these contracts are recorded either based on the ratio of actual costs incurred to date to total estimated costs expected to be incurred related to the contract, or as products are shipped under the units-of-delivery method. Anticipated losses on contracts are recognized in full in the period in which losses become probable and estimable. Changes in estimates of profit or loss on contracts are included in earnings on a cumulative basis in the period the estimate is changed. During the three months ended July 4, 2014 and June 28, 2013, the Company recorded losses of approximately $0.1 million and $0.4 million, respectively, related to loss contracts. | |
The Company also derives a substantial portion of its revenues from contracts and purchase orders where revenue is recorded on delivery of products or performance of services in accordance with the authoritative guidance for revenue recognition (ASC 605). Under this standard, the Company recognizes revenue when an arrangement exists, prices are determinable, collectability is reasonably assured and the goods or services have been delivered. | |
The Company also enters into certain leasing arrangements with customers and evaluates the contracts in accordance with the authoritative guidance for leases (ASC 840). The Company’s accounting for equipment leases involves specific determinations under the authoritative guidance for leases, which often involve complex provisions and significant judgments. In accordance with the authoritative guidance for leases, the Company classifies the transactions as sales type or operating leases based on: (1) review for transfers of ownership of the equipment to the lessee by the end of the lease term, (2) review of the lease terms to determine if it contains an option to purchase the leased equipment for a price which is sufficiently lower than the expected fair value of the equipment at the date of the option, (3) review of the lease term to determine if it is equal to or greater than 75% of the economic life of the equipment, and (4) review of the present value of the minimum lease payments to determine if they are equal to or greater than 90% of the fair market value of the equipment at the inception of the lease. Additionally, the Company considers the cancelability of the contract and any related uncertainty of collections or risk in recoverability of the lease investment at lease inception. Revenue from sales type leases is recognized at the inception of the lease or when the equipment has been delivered and installed at the customer site, if installation is required. Revenues from equipment rentals under operating leases are recognized as earned over the lease term, which is generally on a straight-line basis. | |
In accordance with the authoritative guidance for revenue recognition for multiple element arrangements, the Accounting Standards Update (ASU) 2009-13 (ASU 2009-13), Revenue Recognition (ASC 605) Multiple-Deliverable Revenue Arrangements, which updates ASC 605-25, Revenue Recognition-Multiple element arrangements, of the Financial Accounting Standards Board (FASB) codification, for substantially all of the arrangements with multiple deliverables, the Company allocates revenue to each element based on a selling price hierarchy at the arrangement inception. The selling price for each element is based upon the following selling price hierarchy: vendor specific objective evidence (VSOE) if available, third party evidence (TPE) if VSOE is not available, or estimated selling price (ESP) if neither VSOE nor TPE are available (a description as to how the Company determines VSOE, TPE and ESP is provided below). If a tangible hardware systems product includes software, the Company determines whether the tangible hardware systems product and the software work together to deliver the product’s essential functionality and, if so, the entire product is treated as a nonsoftware deliverable. The total arrangement consideration is allocated to each separate unit of accounting for each of the nonsoftware deliverables using the relative selling prices of each unit based on the aforementioned selling price hierarchy. Revenue for each separate unit of accounting is recognized when the applicable revenue recognition criteria for each element have been met. | |
To determine the selling price in multiple-element arrangements, the Company establishes VSOE of the selling price using the price charged for a deliverable when sold separately. The Company also considers specific renewal rates offered to customers for software license updates, product support and hardware systems support, and other services. For nonsoftware multiple-element arrangements, TPE is established by evaluating similar and/or interchangeable competitor products or services in standalone arrangements with similarly situated customers and/or agreements. If the Company is unable to determine the selling price because VSOE or TPE doesn’t exist, the Company determines ESP for the purposes of allocating the arrangement by reviewing historical transactions, including transactions whereby the deliverable was sold on a standalone basis and considers several other external and internal factors including, but not limited to, pricing practices including discounting, margin objectives, competition, the geographies in which the Company offers its products and services, the type of customer (i.e., distributor, value added reseller, government agency or direct end user, among others), volume commitments and the stage of the product lifecycle. The determination of ESP considers the Company’s pricing model and go-to-market strategy. As the Company, or its competitors’, pricing and go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to its determination of VSOE, TPE and ESP. As a result, the Company’s future revenue recognition for multiple-element arrangements could differ materially from those in the current period. | |
In accordance with the authoritative guidance for shipping and handling fees and costs (ASC 605-45), the Company records shipping and handling costs billed to customers as a component of revenues, and shipping and handling costs incurred by the Company for inbound and outbound freight as a component of cost of revenues. | |
Collections in excess of revenues and deferred revenues represent cash collected from customers in advance of revenue recognition and are recorded in accrued liabilities for obligations within the next twelve months. Amounts for obligations extending beyond twelve months are recorded within other liabilities in the condensed consolidated financial statements. | |
Contract costs on U.S. government contracts are subject to audit and review by the Defense Contracting Management Agency (DCMA), the Defense Contract Audit Agency (DCAA), and other U.S. government agencies, as well as negotiations with U.S. government representatives. The Company’s incurred cost audits by the DCAA have not been concluded for fiscal year 2004 and subsequent fiscal years. Although the Company has recorded contract revenues subsequent to fiscal year 2003 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. As of July 4, 2014 and April 4, 2014, the Company had $6.7 million 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 8). | |
Advertising costs | |
In accordance with the authoritative guidance for advertising costs (ASC 720-35), advertising costs are expensed as incurred and included in selling, general and administrative expenses (SG&A). Advertising expenses for the three months ended July 4, 2014 and June 28, 2013 were $2.3 million and $2.9 million, respectively. | |
Commissions | |
The Company compensates third parties based on specific commission programs directly related to certain product and service sales, and these commissions costs are expensed as incurred. | |
Property, equipment and satellites | |
Satellites and other property and equipment 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 gateway facilities, 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 computes depreciation using the straight-line method over the estimated useful lives of the assets ranging from two to twenty-four 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 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. | |
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 assets under construction, including the ViaSat-2 satellite which commenced construction during the first quarter of fiscal year 2014, the Company capitalized $3.1 million and $0.9 million of interest expense during the three months ended July 4, 2014 and June 28, 2013, respectively. | |
The Company owns two satellites: ViaSat-1 (its first high-capacity Ka-band spot-beam satellite, which was placed into service in January 2012) and WildBlue-1 (which was placed into service in March 2007). In May 2013, the Company entered into a satellite construction contract for ViaSat-2, its second high-capacity Ka-band satellite. In addition, the Company has an exclusive prepaid lifetime capital lease of Ka-band capacity over the contiguous United States on Telesat Canada’s Anik F2 satellite (which was placed into service in April 2005) and owns related gateway and networking equipment for all of its satellites. The Company periodically reviews the remaining estimated useful life of its satellites to determine if revisions to estimated lives are necessary. The Company procures indoor and outdoor customer premise equipment (CPE) units leased to subscribers under a retail leasing program as part of the Company’s satellite services segment, which are reflected in investing activities and property and equipment in the accompanying condensed consolidated financial statements. The Company depreciates the satellites, gateway 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 and equipment, net, as of July 4, 2014 were $222.0 million and $86.9 million, respectively. The total cost and accumulated depreciation of CPE units included in property and equipment, net, as of April 4, 2014 were $221.0 million and $79.8 million, respectively. | |
Occasionally, the Company may enter into capital lease arrangements for various machinery, equipment, computer-related equipment, software, furniture or fixtures. The Company records amortization of assets leased under capital lease arrangements within depreciation expense. | |
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 of $3.2 million related to patents were included in other assets as of July 4, 2014 and April 4, 2014. The Company had capitalized costs of $14.8 million and $13.5 million related to acquiring and obtaining orbital slots and other licenses included in other assets as of July 4, 2014 and April 4, 2014, respectively. Accumulated amortization related to these assets was approximately $1.0 million as of July 4, 2014 and April 4, 2014. Amortization expense related to these assets was an insignificant amount for the three months ended July 4, 2014 and June 28, 2013. If a patent, orbital slot or orbital license is rejected, abandoned or otherwise invalidated, the unamortized cost is expensed in that period. During the three months ended July 4, 2014 and June 28, 2013, the Company did not write off any significant costs due to abandonment or impairment. | |
Debt issuance costs | |
Debt issuance costs are amortized and recognized as interest expense on a straight-line basis over the expected term of the related debt, the results of which are not materially different from the effective interest rate basis. During the three months ended July 4, 2014 and June 28, 2013, no amounts were paid and capitalized for debt issuance costs. 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 consolidated statements of operations and comprehensive income (loss). Other unamortized debt issuance costs are recorded in prepaid expenses and other current assets and in other long-term assets in the consolidated balance sheets, depending on the amounts expected to be amortized to interest expense within the next twelve months. | |
Software development | |
Costs of developing software for sale are charged to 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. Capitalized costs, net, of $97.3 million and $91.0 million related to software developed for resale were included in other assets as of July 4, 2014 and April 4, 2014, respectively. The Company capitalized $10.7 million and $6.4 million of costs related to software developed for resale for the three months ended July 4, 2014 and June 28, 2013, respectively. Amortization expense for software development costs was $4.4 million and $2.4 million for the three months ended July 4, 2014 and June 28, 2013, respectively. | |
Self-insurance 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 internal 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 $3.9 million and $3.5 million as of July 4, 2014 and April 4, 2014, 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 liabilities in accordance with the estimated timing of the projected payments. | |
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 July 4, 2014 and April 4, 2014, no such amounts were accrued related to the aforementioned provisions. | |
Noncontrolling interest | |
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, separately 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. | |
Common stock held in treasury | |
During the first three months of fiscal years 2015 and 2014, the Company issued 20,438 and 9,688 shares of common stock, respectively, based on the vesting terms of certain restricted stock unit agreements. In order for employees to satisfy minimum statutory employee tax withholding requirements related to the issuance of common stock underlying these restricted stock unit agreements, the Company repurchased 6,791 and 3,813 shares of common stock with a total value of $0.4 million and $0.3 million during the first three months of fiscal years 2015 and 2014, respectively. | |
During the first quarter of fiscal year 2015, the Company retired 1,197,363 shares of treasury stock with a total value of $49.7 million. These shares remain as authorized stock; however they are now considered to be unissued. This treasury stock retirement resulted in a decrease in common stock held in treasury and in paid-in capital of $49.7 million in the Company’s condensed consolidated balance sheet. The retirement of treasury stock had no impact on the Company’s total consolidated stockholders’ equity. | |
No repurchased shares of common stock and 1,190,572 repurchased shares of common stock were held in treasury as of July 4, 2014 and April 4, 2014, respectively. | |
Derivatives | |
The Company enters into foreign currency forward and option contracts from time to time to hedge certain forecasted foreign currency transactions. Gains and losses arising from foreign currency forward and option contracts not designated as hedging instruments are recorded in other income (expense) as gains (losses) on derivative instruments. Gains and losses arising from the effective portion of foreign currency forward and option contracts 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. | |
During the three months ended July 4, 2014 and June 28, 2013, the Company settled certain foreign exchange contracts and in connection therewith recognized a gain of less than $0.1 million and recognized a loss of less than $0.1 million, respectively, recorded in cost of revenues based on the nature of the underlying transactions. The fair value of the Company’s foreign currency forward contracts was an other current asset of less than $0.1 million at July 4, 2014 and April 4, 2014. The notional value of foreign currency forward contracts outstanding as of July 4, 2014 and April 4, 2014 was $3.2 million and $3.3 million, respectively. | |
At July 4, 2014, the estimated net amount of unrealized gains or losses related to foreign currency forward contracts that was expected to be reclassified to earnings within the next twelve months was less than $0.1 million. The Company’s foreign currency forward contracts outstanding as of July 4, 2014 will mature within thirteen to eighteen months from their inception. There were no gains or losses from ineffectiveness of these derivative instruments recorded for the three months ended July 4, 2014 and June 28, 2013. | |
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, and recognizes expense on a straight-line basis over the employee’s requisite service period. Stock-based compensation expense is recognized in the condensed consolidated statements of operations and comprehensive income (loss) for the three months ended July 4, 2014 and June 28, 2013 only for those awards ultimately expected to vest, with forfeitures estimated at the date of grant. The authoritative guidance for share-based payments requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company recognized $8.9 million and $7.5 million of stock-based compensation expense for the three months ended July 4, 2014 and June 28, 2013, respectively. | |
For the three months ended July 4, 2014 and June 28, 2013, the Company recorded no incremental tax benefits from stock options exercised and restricted stock unit awards vesting as the excess tax benefit from stock options exercised and restricted stock unit awards vesting increased the Company’s net operating loss carryforward. | |
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 current and 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 effective tax rate at the end of an interim period is calculated using an estimate of the annual effective tax rate expected to be applicable for the full fiscal year. However, when a reliable estimate cannot be made, the Company computes its provision for income taxes using the actual effective tax rate (discrete method) for the year-to-date 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. Deferred income tax expense (benefit) is the net change during the year in the deferred income tax asset or liability. | |
The Company’s analysis of the need for a valuation allowance on deferred tax assets considered the losses incurred during the three months ended July 4, 2014 and the fiscal years ended April 4, 2014 and March 29, 2013. In fiscal year 2013, the Company recorded a significant loss, a substantial portion of which resulted from an extinguishment of debt charge that was recorded upon the refinancing of the Company’s former 8.875% Senior Notes due 2016 (2016 Notes) with the proceeds from the issuance of additional 6.875% Senior Notes due 2020 (2020 Notes), which provides a benefit to net income due to the lower interest rate of the 2020 Notes. The loss from fiscal year 2014 was less significant and a substantial portion of that loss related to legal expense focused on protecting and extending the Company’s technology advantages. In addition to these events, the Company’s evaluation considered other factors, including the Company’s contractual backlog, the Company’s history of positive earnings, current earnings trends assuming the Company’s satellite subscriber base continues to grow, taxable income adjusted for certain items, and forecasted income by jurisdiction. The Company also considered the lengthy period over which these net deferred tax assets can be realized and the Company’s history of not having federal tax loss carryforwards expire unused. | |
Recent authoritative guidance | |
In March 2013, the FASB issued ASU 2013-05, Foreign Currency Matters (ASC 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. ASU 2013-05 clarifies that the cumulative translation adjustment should be released into net income only when a reporting entity ceases to have a controlling financial interest in a subsidiary or a business within a foreign entity. Further, for an equity method investment that is a foreign entity, a pro rata portion of the cumulative translation adjustment should be released into net income upon a partial sale of such an equity method investment. These amendments are to be applied prospectively to derecognition events occurring after the effective date. This guidance became effective for the Company beginning in the first quarter of fiscal year 2015 and the authoritative guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. | |
In July 2013, the FASB issued ASU 2013-11, Income Taxes (ASC 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 requires the netting of unrecognized tax benefits against available deferred tax assets for losses and other carryforward benefits that would be available to offset the liability for uncertain tax positions rather than presenting the unrecognized tax benefits on a gross basis. This guidance became effective for the Company beginning in the first quarter of fiscal year 2015 and the authoritative guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. | |
In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements and Property, Plant, and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 limits the requirement to report discontinued operations to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. The amendments also require expanded disclosures concerning discontinued operations and disclosures of certain financial results attributable to a disposal of a significant component of an entity that does not qualify for discontinued operations reporting. These amendments will become effective prospectively for the Company beginning in fiscal year 2016, with early adoption permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and disclosures. | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to a customer. This guidance will replace most existing revenue recognition guidance and will be effective for the Company beginning in the first quarter of fiscal year 2018, including interim periods within that reporting period. Early application is not permitted, but the guidance permits the use of either the retrospective or cumulative effect transition method. The Company has not selected a transition method and the Company is currently evaluating the impact this guidance will have on its consolidated financial statements and disclosures. |
Composition_of_Certain_Balance
Composition of Certain Balance Sheet Captions | 3 Months Ended | ||||||||
Jul. 04, 2014 | |||||||||
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 | ||||||||
July 4, 2014 | April 4, 2014 | ||||||||
(In thousands) | |||||||||
Accounts receivable, net: | |||||||||
Billed | $ | 131,010 | $ | 129,794 | |||||
Unbilled | 149,755 | 143,651 | |||||||
Allowance for doubtful accounts | (1,617 | ) | (1,554 | ) | |||||
$ | 279,148 | $ | 271,891 | ||||||
Inventories: | |||||||||
Raw materials | $ | 49,241 | $ | 42,786 | |||||
Work in process | 21,876 | 22,279 | |||||||
Finished goods | 57,450 | 54,536 | |||||||
$ | 128,567 | $ | 119,601 | ||||||
Prepaid expenses and other current assets: | |||||||||
Prepaid expenses | $ | 36,477 | $ | 41,341 | |||||
Other | 4,204 | 2,729 | |||||||
$ | 40,681 | $ | 44,070 | ||||||
Satellites, net: | |||||||||
Satellite — WildBlue-1 (estimated useful life of 10 years) | $ | 195,890 | $ | 195,890 | |||||
Capital lease of satellite capacity — Anik F2 (estimated useful life of 10 years) | 99,090 | 99,090 | |||||||
Satellite — ViaSat-1 (estimated useful life of 17 years) | 363,204 | 363,204 | |||||||
Satellite — ViaSat-2 (under construction) | 187,643 | 146,610 | |||||||
845,827 | 804,794 | ||||||||
Less accumulated depreciation and amortization | (186,673 | ) | (173,958 | ) | |||||
$ | 659,154 | $ | 630,836 | ||||||
Property and equipment, net: | |||||||||
Equipment and software (estimated useful life of 2-7 years) | $ | 468,028 | $ | 452,197 | |||||
CPE leased equipment (estimated useful life of 4-5 years) | 222,037 | 221,017 | |||||||
Furniture and fixtures (estimated useful life of 7 years) | 19,578 | 18,773 | |||||||
Leasehold improvements (estimated useful life of 2-17 years) | 64,755 | 62,159 | |||||||
Building (estimated useful life of 24 years) | 8,923 | 8,923 | |||||||
Land | 1,621 | 1,621 | |||||||
Construction in progress | 13,043 | 17,062 | |||||||
797,985 | 781,752 | ||||||||
Less accumulated depreciation | (383,424 | ) | (360,086 | ) | |||||
$ | 414,561 | $ | 421,666 | ||||||
Other acquired intangible assets, net: | |||||||||
Technology (weighted average useful life of 6 years) | $ | 68,371 | $ | 57,084 | |||||
Contracts and customer relationships (weighted average useful life of 8 years) | 99,873 | 88,853 | |||||||
Satellite co-location rights (weighted average useful life of 9 years) | 8,600 | 8,600 | |||||||
Trade name (weighted average useful life of 3 years) | 5,940 | 5,680 | |||||||
Other (weighted average useful life of 7 years) | 8,769 | 6,320 | |||||||
191,553 | 166,537 | ||||||||
Less accumulated amortization | (135,447 | ) | (131,140 | ) | |||||
$ | 56,106 | $ | 35,397 | ||||||
Other assets: | |||||||||
Capitalized software costs, net | $ | 97,316 | $ | 91,022 | |||||
Patents, orbital slots and other licenses, net | 17,000 | 15,700 | |||||||
Deferred income taxes | 114,282 | 110,711 | |||||||
Other | 38,913 | 39,535 | |||||||
$ | 267,511 | $ | 256,968 | ||||||
Accrued liabilities: | |||||||||
Collections in excess of revenues and deferred revenues | $ | 82,937 | $ | 69,127 | |||||
Accrued employee compensation | 14,206 | 23,954 | |||||||
Accrued vacation | 24,249 | 22,550 | |||||||
Warranty reserve, current portion | 9,207 | 9,368 | |||||||
Current portion of other long-term debt | 1,783 | 1,856 | |||||||
Other | 34,283 | 49,119 | |||||||
$ | 166,665 | $ | 175,974 | ||||||
Other liabilities: | |||||||||
Deferred revenue, long-term portion | $ | 8,418 | $ | 10,097 | |||||
Deferred rent, long-term portion | 8,766 | 9,758 | |||||||
Warranty reserve, long-term portion | 7,688 | 7,655 | |||||||
Deferred income taxes, long-term portion | 834 | 816 | |||||||
Satellite performance incentives obligation, long-term portion | 20,472 | 20,567 | |||||||
$ | 46,178 | $ | 48,893 | ||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Jul. 04, 2014 | |||||||||||||||||
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 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 instruments valuation. | ||||||||||||||||
The following tables present the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of July 4, 2014 and April 4, 2014: | |||||||||||||||||
Fair Value as of | Level 1 | Level 2 | Level 3 | ||||||||||||||
July 4, 2014 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents | $ | 1,337 | $ | 1,337 | $ | — | $ | — | |||||||||
Foreign currency forward contracts | 51 | — | 51 | — | |||||||||||||
Total assets measured at fair value on a recurring basis | $ | 1,388 | $ | 1,337 | $ | 51 | $ | — | |||||||||
Fair Value as of | Level 1 | Level 2 | Level 3 | ||||||||||||||
April 4, 2014 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents | $ | 2,087 | $ | 2,087 | $ | — | $ | — | |||||||||
Foreign currency forward contracts | 40 | — | 40 | — | |||||||||||||
Total assets measured at fair value on a recurring basis | $ | 2,127 | $ | 2,087 | $ | 40 | $ | — | |||||||||
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. Money market funds are valued using quoted prices for identical assets in an active market with sufficient volume and frequency of transactions (Level 1). | |||||||||||||||||
Foreign currency forward contracts — The Company uses derivative financial instruments to manage foreign currency risk relating to foreign exchange rates. The Company does not use these instruments for speculative or trading purposes. The Company’s objective is to reduce the risk to earnings and cash flows associated with changes in foreign currency exchange rates. Derivative instruments are recognized as either assets or liabilities in the accompanying condensed consolidated financial statements and are measured at fair value. Gains and losses resulting from changes in the fair values of those derivative instruments are recorded to earnings or other comprehensive income (loss) depending on the use of the derivative instrument and whether it qualifies for hedge accounting. The Company’s foreign currency forward contracts are valued using standard calculations/models that are primarily based on observable inputs, such as foreign currency exchange rates, or can be corroborated by observable market data (Level 2). | |||||||||||||||||
Long-term debt — The Company’s long-term debt consists of borrowings under its revolving credit facility (the Credit Facility), reported at the outstanding principal amount of borrowings, and $575.0 million in aggregate principal amount of 2020 Notes reported at amortized cost. However, for disclosure purposes, the Company is required to measure the fair value of outstanding debt on a recurring basis. As of July 4, 2014 and April 4, 2014, the fair value of the Company’s outstanding long-term debt related to the 2020 Notes was determined using quoted prices in active markets (Level 1) and was approximately $622.4 million and $616.7 million, respectively. The fair value of the Company’s long-term debt related to the Credit Facility approximates its carrying amount due to the variable interest rate on the revolving line of credit, which approximates a market interest rate. | |||||||||||||||||
Satellite performance incentives obligation — The Company’s contract with the manufacturer of ViaSat-1 requires the Company to make monthly in-orbit satellite performance incentive payments, including interest at 7.0%, over a fifteen-year period from December 2011 to December 2026, subject to the continued satisfactory performance of the satellite. The Company recorded the net present value of these expected future payments as a liability and as a component of the cost of the satellite. However, for disclosure purposes, the Company is required to measure the fair value of outstanding satellite performance incentives on a recurring basis. The fair value of the Company’s outstanding satellite performance incentives is estimated to approximate their carrying value based on current rates (Level 2). As of each of July 4, 2014 and April 4, 2014, the Company’s estimated satellite performance incentives obligation and accrued interest was $22.5 million and $22.6 million, respectively. |
Shares_Used_In_Computing_Dilut
Shares Used In Computing Diluted Net Loss Per Share | 3 Months Ended |
Jul. 04, 2014 | |
Earnings Per Share [Abstract] | ' |
Shares Used In Computing Diluted Net Loss Per Share | ' |
Note 4 — Shares Used In Computing Diluted Net 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 both the three months ended July 4, 2014 and June 28, 2013, as the Company incurred a net loss attributable to ViaSat, Inc. common stockholders in such periods and inclusion of potential common stock would be antidilutive. Potential common stock excluded from the calculation for the three months ended July 4, 2014 were 910,338 shares relating to stock options, 458,801 shares relating to restricted stock units and 165,341 shares relating to certain terms of the ViaSat 401(k) Profit Sharing Plan and Employee Stock Purchase Plan. Potential common stock excluded from the calculation for the three months ended June 28, 2013 were 880,132 shares relating to stock options, 576,238 shares relating to restricted stock units and 139,793 shares relating to certain terms of the ViaSat 401(k) Profit Sharing Plan and Employee Stock Purchase Plan. |
Goodwill_and_Acquired_Intangib
Goodwill and Acquired Intangible Assets | 3 Months Ended | ||||
Jul. 04, 2014 | |||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||
Goodwill and Acquired Intangible Assets | ' | ||||
Note 5 — Goodwill and Acquired Intangible Assets | |||||
During the first three months of fiscal year 2015, the Company’s goodwill increased by approximately $34.3 million, of which $34.1 million was related to the acquisition of NetNearU recorded within the Company’s government systems segment. The remaining change related to the effect of foreign currency translation recorded within the Company’s government systems and commercial networks segments. | |||||
Other acquired intangible assets are amortized using the straight-line method over their estimated useful lives of two to ten years, which is not materially different from the economic benefit method. Amortization expense related to other acquired intangible assets was $4.0 million and $3.5 million for the three months ended July 4, 2014 and June 28, 2013, respectively. | |||||
The expected amortization expense of amortizable acquired intangible assets may change due to the effects of foreign currency fluctuations as a result of international businesses acquired. Current and expected amortization expense for acquired intangible assets for each of the following periods is as follows: | |||||
Amortization | |||||
(In thousands) | |||||
For the three months ended July 4, 2014 | $ | 4,029 | |||
Expected for the remainder of fiscal year 2015 | $ | 14,063 | |||
Expected for fiscal year 2016 | 15,087 | ||||
Expected for fiscal year 2017 | 7,719 | ||||
Expected for fiscal year 2018 | 6,386 | ||||
Expected for fiscal year 2019 | 3,889 | ||||
Thereafter | 8,962 | ||||
$ | 56,106 | ||||
Senior_Notes_and_Other_LongTer
Senior Notes and Other Long-Term Debt | 3 Months Ended | ||||||||
Jul. 04, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Senior Notes and Other Long-Term Debt | ' | ||||||||
Note 6 — Senior Notes and Other Long-Term Debt | |||||||||
Total long-term debt consisted of the following as of July 4, 2014 and April 4, 2014: | |||||||||
As of | As of | ||||||||
July 4, 2014 | April 4, 2014 | ||||||||
(In thousands) | |||||||||
Senior Notes | |||||||||
2020 Notes | $ | 575,000 | $ | 575,000 | |||||
Unamortized premium on the 2020 Notes | 8,567 | 8,861 | |||||||
Total senior notes, net of premium | 583,567 | 583,861 | |||||||
Less: current portion of the senior notes | — | — | |||||||
Total senior notes long-term, net | 583,567 | 583,861 | |||||||
Other Long-Term Debt | |||||||||
Revolving credit facility | 205,000 | 105,000 | |||||||
Other | 2,615 | 2,756 | |||||||
Total other long-term debt | 207,615 | 107,756 | |||||||
Less: current portion of other long-term debt | 1,783 | 1,856 | |||||||
Other long-term debt, net | 205,832 | 105,900 | |||||||
Total debt | 791,182 | 691,617 | |||||||
Less: current portion | 1,783 | 1,856 | |||||||
Long-term debt, net | $ | 789,399 | $ | 689,761 | |||||
Credit Facility | |||||||||
As of July 4, 2014, the Company’s Credit Facility provided a $500.0 million revolving line of credit (including up to $150.0 million of letters of credit), with a maturity date of November 26, 2018. Borrowings under the Credit Facility bear interest, at the Company’s option, at either (1) the highest of the Federal Funds rate plus 0.50%, the Eurodollar rate plus 1.00%, or the administrative agent’s prime rate as announced from time to time, or (2) the Eurodollar rate, plus, in the case of each of (1) and (2), an applicable margin that is based on the Company’s total leverage ratio. At July 4, 2014, the weighted average effective interest rate on the Company’s outstanding borrowings under the Credit Facility was 2.16%. The Company has capitalized certain amounts of interest expense on the Credit Facility in connection with the construction of various assets during the construction period. The Credit Facility is required to be guaranteed by certain significant domestic subsidiaries of the Company (as defined in the Credit Facility) and secured by substantially all of the Company’s and any such subsidiaries’ assets. As of July 4, 2014, none of the Company’s subsidiaries guaranteed the Credit Facility. | |||||||||
The Credit Facility contains financial covenants regarding a maximum total leverage ratio and a minimum interest coverage ratio. In addition, the 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 Credit Facility as of July 4, 2014. At July 4, 2014, the Company had $205.0 million in principal amount of outstanding borrowings under the Credit Facility and $39.5 million outstanding under standby letters of credit, leaving borrowing availability under the Credit Facility as of July 4, 2014 of $255.5 million. | |||||||||
Senior Notes due 2020 | |||||||||
In February 2012, the Company issued $275.0 million in principal amount of 2020 Notes in a private placement to institutional buyers, which were exchanged in August 2012 for substantially identical 2020 Notes that had been registered with the Securities and Exchange Commission (the SEC). These initial 2020 Notes were issued at face value and are recorded as long-term debt in the Company’s condensed consolidated financial statements. On October 12, 2012, the Company issued an additional $300.0 million in principal amount of 2020 Notes in a private placement to institutional buyers at an issue price of 103.50% of the principal amount, which were exchanged in January 2013 for substantially identical 2020 Notes that had been registered with the SEC. The 2020 Notes are all treated as a single class. The 2020 Notes bear interest at the rate of 6.875% per year, payable semi-annually in cash in arrears, which interest payments commenced in June 2012. Debt issuance costs associated with the issuance of the 2020 Notes are amortized to interest expense on a straight-line basis over the term of the 2020 Notes, the results of which are not materially different from the effective interest rate basis. The $10.5 million premium the Company received in connection with the issuance of the additional 2020 Notes is recorded as long-term debt in the Company’s condensed consolidated financial statements and is being amortized as a reduction to interest expense on an effective interest rate basis over the term of those 2020 Notes. | |||||||||
The 2020 Notes are required to be guaranteed on an unsecured senior basis by each of the Company’s existing and future subsidiaries that guarantees the Credit Facility. During the second quarter of fiscal year 2014, the last remaining subsidiary guarantor, ViaSat Communications, Inc., was merged into the Company. Accordingly, as of July 4, 2014, none of the Company’s subsidiaries guaranteed the 2020 Notes. The 2020 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 2020 Notes are effectively junior in right of payment to the Company’s existing and future secured debt, including under the Credit Facility (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 2020 Notes, and are senior in right of payment to all of their existing and future subordinated indebtedness. | |||||||||
The indenture governing the 2020 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 June 15, 2015, the Company may redeem up to 35% of the 2020 Notes at a redemption price of 106.875% 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 2020 Notes prior to June 15, 2016, in whole or in part, at a redemption price equal to 100% of the principal amount thereof plus the applicable premium and any accrued and unpaid interest, if any, thereon to the redemption date. The applicable premium is calculated as the greater of: (i) 1.0% of the principal amount of such 2020 Notes and (ii) the excess, if any, of (a) the present value at such date of redemption of (1) the redemption price of such 2020 Notes on June 15, 2016 plus (2) all required interest payments due on such 2020 Notes through June 15, 2016 (excluding accrued but unpaid interest to the date of redemption), computed using a discount rate equal to the treasury rate (as defined under the indenture) plus 50 basis points, over (b) the then-outstanding principal amount of such 2020 Notes. The 2020 Notes may be redeemed, in whole or in part, at any time during the twelve months beginning on June 15, 2016 at a redemption price of 103.438%, during the twelve months beginning on June 15, 2017 at a redemption price of 101.719%, and at any time on or after June 15, 2018 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 occurs (as defined in the indenture), each holder will have the right to require the Company to repurchase all or any part of such holder’s 2020 Notes at a purchase price in cash equal to 101% of the aggregate principal amount of the 2020 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). |
Product_Warranty
Product Warranty | 3 Months Ended | ||||||||
Jul. 04, 2014 | |||||||||
Product Warranties Disclosures [Abstract] | ' | ||||||||
Product Warranty | ' | ||||||||
Note 7 — Product Warranty | |||||||||
The Company provides limited warranties on its products for periods of up to five years. The Company records a liability for its warranty obligations when products are shipped or they are included in long-term construction contracts based upon an estimate of expected warranty costs. Amounts expected to be incurred within twelve months are classified as accrued liabilities and amounts expected to be incurred beyond twelve months are classified as other liabilities in the condensed consolidated financial statement. For mature products, the warranty cost estimates are based on historical experience with the particular product. For newer products that do not have a history of warranty costs, the Company bases its estimates on its experience with the technology involved and the types of failures that may occur. It is possible that the Company’s underlying assumptions will not reflect the actual experience and in that case, future adjustments will be made to the recorded warranty obligation. The following table reflects the change in the Company’s warranty accrual during the three months ended July 4, 2014 and June 28, 2013: | |||||||||
Three Months Ended | |||||||||
July 4, 2014 | June 28, 2013 | ||||||||
(In thousands) | |||||||||
Balance, beginning of period | $ | 17,023 | $ | 14,107 | |||||
Change in liability for warranties issued in period | 1,716 | 2,130 | |||||||
Settlements made (in cash or in kind) during the period | (1,844 | ) | (1,508 | ) | |||||
Balance, end of period | $ | 16,895 | $ | 14,729 | |||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Jul. 04, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Note 8 — Commitments and Contingencies | |
In May 2013, the Company entered into an agreement to purchase ViaSat-2, the Company’s second high-capacity Ka-band satellite, from The Boeing Company (Boeing) at a price of approximately $358.0 million, plus an additional amount for launch support services to be performed by Boeing. | |
In February 2012, the Company filed a complaint against Space Systems/Loral, Inc. (SS/L) and its former parent company Loral Space & Communications, Inc. (Loral) in the United States District Court for the Southern District of California for patent infringement and breach of contract relating to the manufacture of ViaSat-1. The Company alleged, among other things, that SS/L and Loral infringed U.S. Patent Nos. 8,107,875, 8,010,043, 8,068,827 and 7,773,942 by making, using, offering to sell and/or selling other high-capacity broadband satellites, and requested monetary damages, injunctive relief and other remedies. On December 17, 2013, the Company voluntarily dismissed its claims against SS/L under U.S. Patent No. 7,773,942. | |
On June 15, 2012, SS/L filed counterclaims against the Company for patent infringement and declaratory relief. Specifically, SS/L sought a declaration that SS/L did not breach the parties’ contract for the manufacture of ViaSat-1, that SS/L did not infringe the Company’s patents described above, and that those patents are invalid and/or unenforceable. SS/L also alleged that the Company infringed U.S. Patent Nos. 6,879,808, 6,400,696 and 7,219,132. On November 13, 2013, the Court granted summary judgment of non-infringement of U.S. Patent No. 6,879,808 in favor of ViaSat. On December 17, 2013, SS/L dismissed its claims against ViaSat under U.S. Patent No. 7,219,132. | |
On April 24, 2014, a federal court jury returned a verdict in favor of the Company, finding that ViaSat’s patents are valid, SS/L infringed all of ViaSat’s patents, and SS/L breached the parties’ non-disclosure agreement and the manufacturing contract for the ViaSat-1 satellite. The jury awarded the Company $283.0 million in damages for patent infringement and breach of contract. During the trial, SS/L chose not to pursue its claim against the Company for infringing U.S. Patent No. 6,400,696. The Company intends to seek a judgment of non-infringement from the court with respect to that patent. | |
Following the trial, SS/L filed a number of motions to set aside the damages award, challenging the Company’s legal basis for damages and asking the Court to invalidate the Company’s patents as well as reverse the jury’s finding that SS/L breached the parties’ contracts and infringed all of the Company’s patents. The Company also filed a motion for a permanent injunction preventing SS/L from continuing to infringe the Company’s patents and using the Company’s intellectual property. | |
Subsequent to the fiscal quarter end, in August 2014, the Court upheld the jury’s findings that SS/L breached the parties’ contracts and infringed the Company’s patents. However, the Court ordered a new jury trial on the amount of damages resulting from SS/L’s breach and infringement. The damages retrial is currently scheduled for November 12, 2014. The Court’s liability and damages rulings are subject to appeal. In addition, the Court set a hearing on the Company’s motion for permanent injunction for August 26, 2014. | |
On September 5, 2013, the Company filed a complaint against SS/L in the United States District Court for the Southern District of California for patent infringement and breach of contract relating to SS/L’s continued use of ViaSat’s patented technology and intellectual property in the manufacture of high-capacity broadband satellites. The Company alleges, among other things, that SS/L infringed U.S. Patent Nos. 7,230,908, 7,684,368, 8,213,929, 8,254,832, 8,285,202 and 8,548,377 by making, using, offering to sell and/or selling other high-capacity broadband satellites. The Company has requested monetary damages, injunctive relief and other remedies. | |
The Company is involved in a variety of claims, suits, investigations and proceedings arising in the ordinary course of business, including actions with respect to intellectual property claims, breach of contract claims, labor and employment claims, tax and other matters. 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. The Company’s incurred cost audits by the DCAA have not been concluded for fiscal year 2004 and subsequent fiscal years. Although the Company has recorded contract revenues subsequent to fiscal year 2003 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. As of July 4, 2014 and April 4, 2014, the Company had $6.7 million 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 status of the related contracts. |
Income_Taxes
Income Taxes | 3 Months Ended |
Jul. 04, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Note 9 — Income Taxes | |
Ordinarily, the effective tax rate at the end of an interim period is calculated using an estimate of the annual effective tax rate expected to be applicable for the full fiscal year. However, when a reliable estimate cannot be made, the Company computes its provision for income taxes using the actual effective tax rate (discrete method) for the year-to-date period. The Company’s effective tax rate is highly influenced by the amount of its state research and development tax credits. A small change in estimated annual pretax income (loss) can produce a significant variance in the annual effective tax rate given the Company’s expected amount of state research and development tax credits. This variability provides an unreliable estimate of the annual effective tax rate. As a result, and in accordance with the authoritative guidance for accounting for income taxes in interim periods, the Company has computed its provision for income taxes for the three months ended July 4, 2014 by applying the actual effective tax rate to the year-to-date income for the three-month period. | |
Future realization of the existing deferred tax asset ultimately depends on future profitability and the existence of sufficient taxable income of appropriate character (for example, ordinary income versus capital gains) within the carryforward period available under tax law. In the event that the Company’s estimate of taxable income is less than that required to utilize the full amount of any deferred tax asset, a valuation allowance is established. The Company’s analysis of the need for a valuation allowance on deferred tax assets considered the losses incurred during the three months ended July 4, 2014 and the fiscal years ended April 4, 2014 and March 29, 2013. In fiscal year 2013, the Company recorded a significant loss, a substantial portion of which resulted from an extinguishment of debt charge that was recorded upon the refinancing of the Company’s former 2016 Notes with the proceeds from the issuance of additional 2020 Notes, which provides a benefit to net income due to the lower interest rate of the 2020 Notes. The loss from fiscal year 2014 was less significant and a substantial portion of that loss related to legal expense focused on protecting and extending our technology advantages. In addition to these events, the Company’s evaluation considered other factors, including the Company’s contractual backlog, the Company’s history of positive earnings, current earnings trends assuming the Company’s satellite subscriber base continues to grow, taxable income adjusted for certain items, and forecasted income by jurisdiction. The Company also considered the lengthy period over which these net deferred tax assets can be realized and the Company’s history of not having federal tax loss carryforwards expire unused. Based on the Company’s analysis of the need for a valuation allowance on deferred tax assets, the Company added $0.7 million to the valuation allowance on state net operating loss carryforwards and research and development credit carryforwards available to reduce state income taxes during the first three months of fiscal year 2015. | |
For the three months ended July 4, 2014, the Company’s gross unrecognized tax benefits increased by $0.6 million. In the next twelve months it is reasonably possible that the amount of unrecognized tax benefits will not change significantly. |
Acquisition
Acquisition | 3 Months Ended | ||||||||
Jul. 04, 2014 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Acquisition | ' | ||||||||
Note 10 — Acquisition | |||||||||
On June 6, 2014, the Company completed the acquisition of all outstanding shares of NetNearU. The purchase price for NetNearU is estimated to be approximately $59.9 million in cash consideration (subject to certain minor working capital post-closing adjustments). The preliminary net cash outlay for the acquisition, after taking into account estimated cash acquired of $4.1 million, was approximately $55.8 million. | |||||||||
The Company accounts for business combinations pursuant to the authoritative guidance for business combinations (ASC 805). Accordingly, the Company allocated the purchase price of the acquired company to the net tangible assets and intangible assets acquired based upon their estimated fair values. Under the authoritative guidance for business combinations, acquisition-related transaction costs and acquisition-related restructuring charges are not included as components of consideration transferred but are accounted for as expenses in the period in which the costs are incurred. Total merger-related transaction costs incurred by the Company were approximately $0.4 million, all of which were incurred and recorded in SG&A expenses in the three months ended July 4, 2014. | |||||||||
The preliminary estimated purchase price allocation of the acquired assets and assumed liabilities based on the estimated fair values as of June 6, 2014 is as follows: | |||||||||
(In thousands) | |||||||||
Current assets | $ | 8,482 | |||||||
Property and equipment | 1,087 | ||||||||
Identifiable intangible assets | 24,310 | ||||||||
Goodwill | 34,065 | ||||||||
Total assets acquired | 67,944 | ||||||||
Current liabilities | (5,305 | ) | |||||||
Other long-term liabilities | (2,716 | ) | |||||||
Total liabilities assumed | (8,021 | ) | |||||||
Total purchase price | $ | 59,923 | |||||||
Amounts assigned to identifiable intangible assets are being amortized on a straight-line basis over their estimated useful lives and are as follows: | |||||||||
Preliminary | Estimated | ||||||||
fair value | weighted | ||||||||
(In thousands) | average | ||||||||
life | |||||||||
Technology | $ | 10,970 | 7 | ||||||
Customer relationships | 10,950 | 9 | |||||||
Non-compete agreements | 2,130 | 2 | |||||||
Trade name | 260 | 2 | |||||||
Total identifiable intangible assets | $ | 24,310 | 8 | ||||||
The intangible assets acquired in the NetNearU business combination were determined, in accordance with the authoritative guidance for business combinations, based on the estimated fair values using valuation techniques consistent with the market approach and/or income approach to measure fair value. The remaining useful lives were estimated based on the underlying agreements and/or the future economic benefit expected to be received from the assets. | |||||||||
NetNearU has developed a comprehensive network management system for WiFi and other Internet access networks that the Company expects to use to extend the Company’s Exede® broadband services to a wider subscriber base in multiple markets, including commercial airlines, live events, hospitality, enterprise networking and government broadband projects. NetNearU’s primary operations currently support government applications with the potential for future expansion into commercial applications. These current benefits and additional opportunities were among the factors that were taken into account in setting the purchase price and contributed to the recognition of preliminary estimated goodwill, which was recorded within the Company’s government systems segment. The intangible assets and goodwill recognized are not deductible for federal income tax purposes. The purchase price allocation is preliminary due to pending resolution of certain NetNearU tax attributes. | |||||||||
The consolidated financial statements include the operating results of NetNearU from the date of acquisition. Pro forma results of operations have not been presented because the effect of the acquisition was insignificant to the financial statements for all periods presented. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||||||||||
Jul. 04, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
Note 11 — Segment Information | |||||||||||||||||
The Company’s reporting segments, comprised of the satellite services, commercial networks and government systems segments, are primarily distinguished by the type of customer and the related contractual requirements. The Company’s satellite services segment provides retail and wholesale satellite-based broadband services for its consumer, enterprise and mobile broadband customers primarily in the United States. The Company’s commercial networks segment develops and produces a variety of advanced end-to-end satellite and other wireless communication systems and ground networking equipment and products, some of which are ultimately used by the Company’s satellite services segment. The Company’s government systems segment develops and produces network-centric, Internet Protocol (IP)-based fixed and mobile secure government communications systems, network management systems, products, services and solutions. The more regulated government environment is subject to unique contractual requirements and possesses economic characteristics which differ from the satellite services and commercial networks segments. 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. | |||||||||||||||||
Segment revenues and operating (losses) profits for the three months ended July 4, 2014 and June 28, 2013 were as follows: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
July 4, | June 28, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Revenues: | |||||||||||||||||
Satellite Services | |||||||||||||||||
Product | $ | 30 | $ | 16 | |||||||||||||
Service | 109,685 | 85,831 | |||||||||||||||
Total | 109,715 | 85,847 | |||||||||||||||
Commercial Networks | |||||||||||||||||
Product | 88,592 | 91,824 | |||||||||||||||
Service | 3,636 | 5,575 | |||||||||||||||
Total | 92,228 | 97,399 | |||||||||||||||
Government Systems | |||||||||||||||||
Product | 79,507 | 90,321 | |||||||||||||||
Service | 38,021 | 47,535 | |||||||||||||||
Total | 117,528 | 137,856 | |||||||||||||||
Elimination of intersegment revenues | — | — | |||||||||||||||
Total revenues | $ | 319,471 | $ | 321,102 | |||||||||||||
Operating (losses) profits: | |||||||||||||||||
Satellite Services | $ | (1,949 | ) | $ | (12,978 | ) | |||||||||||
Commercial Networks | (5,990 | ) | 3,336 | ||||||||||||||
Government Systems | 10,799 | 16,567 | |||||||||||||||
Elimination of intersegment operating profits | — | — | |||||||||||||||
Segment operating profit before corporate and amortization of acquired intangible assets | 2,860 | 6,925 | |||||||||||||||
Corporate | — | — | |||||||||||||||
Amortization of acquired intangible assets | (4,029 | ) | (3,501 | ) | |||||||||||||
(Loss) income from operations | $ | (1,169 | ) | $ | 3,424 | ||||||||||||
Assets identifiable to segments include: accounts receivable, unbilled accounts receivable, inventory, acquired intangible assets and goodwill. The Company’s property and equipment, including its satellites, gateways and other networking equipment, are assigned to corporate assets as they are available for use by the various segments throughout their estimated useful lives. Segment assets as of July 4, 2014 and April 4, 2014 were as follows: | |||||||||||||||||
As of | As of | ||||||||||||||||
July 4, | April 4, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Segment assets: | |||||||||||||||||
Satellite Services | $ | 77,543 | $ | 73,382 | |||||||||||||
Commercial Networks | 245,171 | 229,455 | |||||||||||||||
Government Systems | 258,356 | 206,848 | |||||||||||||||
Total segment assets | 581,070 | 509,685 | |||||||||||||||
Corporate assets | 1,475,210 | 1,450,430 | |||||||||||||||
Total assets | $ | 2,056,280 | $ | 1,960,115 | |||||||||||||
Other acquired intangible assets, net and goodwill included in segment assets as of July 4, 2014 and April 4, 2014 were as follows: | |||||||||||||||||
Other Acquired Intangible | Goodwill | ||||||||||||||||
Assets, Net | |||||||||||||||||
As of | As of | As of | As of | ||||||||||||||
July 4, 2014 | April 4, 2014 | July 4, 2014 | April 4, 2014 | ||||||||||||||
(In thousands) | |||||||||||||||||
Satellite Services | $ | 26,166 | $ | 28,931 | $ | 9,809 | $ | 9,809 | |||||||||
Commercial Networks | 2,552 | 2,583 | 44,143 | 44,148 | |||||||||||||
Government Systems | 27,388 | 3,883 | 63,978 | 29,670 | |||||||||||||
Total | $ | 56,106 | $ | 35,397 | $ | 117,930 | $ | 83,627 | |||||||||
Amortization of acquired intangible assets by segment for the three months ended July 4, 2014 and June 28, 2013 was as follows: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
July 4, 2014 | June 28, 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Satellite Services | $ | 2,765 | $ | 2,765 | |||||||||||||
Commercial Networks | 343 | 143 | |||||||||||||||
Government Systems | 921 | 593 | |||||||||||||||
Total amortization of acquired intangible assets | $ | 4,029 | $ | 3,501 | |||||||||||||
Certain_Relationships_and_Rela
Certain Relationships and Related-Party Transactions | 3 Months Ended |
Jul. 04, 2014 | |
Related Party Transactions [Abstract] | ' |
Certain Relationships and Related-Party Transactions | ' |
Note 12 — Certain Relationships and Related-Party Transactions | |
John Stenbit, a director of the Company since August 2004, also serves on the board of directors of Loral. Telesat Canada is an entity owned by TeleSat Holdings, Inc., a joint venture between Loral and the Public Sector Pension Investment Board. From time to time, the Company enters into various contracts in the ordinary course of business with Telesat Canada. These contracts are substantially the same as disclosed in the most recent Annual Report on Form 10-K. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 3 Months Ended | ||||||||||||||||
Jul. 04, 2014 | |||||||||||||||||
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 TrellisWare Technologies, Inc. (TrellisWare), a majority-owned subsidiary. All significant intercompany amounts have been eliminated. | |||||||||||||||||
Fiscal period | ' | ||||||||||||||||
The Company’s fiscal year is the 52 or 53 weeks ending on the Friday closest to March 31 of the specified year. For example, references to fiscal year 2015 refer to the fiscal year ending on April 3, 2015. The Company’s quarters for fiscal year 2015 end on July 4, 2014, October 3, 2014, January 2, 2015 and April 3, 2015. This results in a 53 week fiscal year approximately every four to five years. Fiscal year 2015 is a 52 week year, compared with a 53 week year in fiscal year 2014. As a result of the shift in the fiscal calendar, the second quarter of fiscal year 2014 included an additional week. The Company does not believe that the extra week results in any material impact on its financial results. | |||||||||||||||||
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, self-insurance reserves, allowance for doubtful accounts, warranty accruals, 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 percentage of completion method | ' | ||||||||||||||||
Revenue recognition | |||||||||||||||||
A substantial portion of the Company’s revenues is derived from long-term contracts requiring development and delivery of complex equipment built to customer specifications. Sales related to long-term contracts are accounted for under the authoritative guidance for the percentage-of-completion method of accounting (Accounting Standards Codification (ASC) 605-35). Sales and earnings under these contracts are recorded either based on the ratio of actual costs incurred to date to total estimated costs expected to be incurred related to the contract, or as products are shipped under the units-of-delivery method. Anticipated losses on contracts are recognized in full in the period in which losses become probable and estimable. Changes in estimates of profit or loss on contracts are included in earnings on a cumulative basis in the period the estimate is changed. During the three months ended July 4, 2014 and June 28, 2013, the Company recorded losses of approximately $0.1 million and $0.4 million, respectively, related to loss contracts. | |||||||||||||||||
Revenue recognition sale of goods and services | ' | ||||||||||||||||
The Company also derives a substantial portion of its revenues from contracts and purchase orders where revenue is recorded on delivery of products or performance of services in accordance with the authoritative guidance for revenue recognition (ASC 605). Under this standard, the Company recognizes revenue when an arrangement exists, prices are determinable, collectability is reasonably assured and the goods or services have been delivered. | |||||||||||||||||
Revenue recognition leases | ' | ||||||||||||||||
The Company also enters into certain leasing arrangements with customers and evaluates the contracts in accordance with the authoritative guidance for leases (ASC 840). The Company’s accounting for equipment leases involves specific determinations under the authoritative guidance for leases, which often involve complex provisions and significant judgments. In accordance with the authoritative guidance for leases, the Company classifies the transactions as sales type or operating leases based on: (1) review for transfers of ownership of the equipment to the lessee by the end of the lease term, (2) review of the lease terms to determine if it contains an option to purchase the leased equipment for a price which is sufficiently lower than the expected fair value of the equipment at the date of the option, (3) review of the lease term to determine if it is equal to or greater than 75% of the economic life of the equipment, and (4) review of the present value of the minimum lease payments to determine if they are equal to or greater than 90% of the fair market value of the equipment at the inception of the lease. Additionally, the Company considers the cancelability of the contract and any related uncertainty of collections or risk in recoverability of the lease investment at lease inception. Revenue from sales type leases is recognized at the inception of the lease or when the equipment has been delivered and installed at the customer site, if installation is required. Revenues from equipment rentals under operating leases are recognized as earned over the lease term, which is generally on a straight-line basis. | |||||||||||||||||
Revenue recognition multiple element arrangements | ' | ||||||||||||||||
In accordance with the authoritative guidance for revenue recognition for multiple element arrangements, the Accounting Standards Update (ASU) 2009-13 (ASU 2009-13), Revenue Recognition (ASC 605) Multiple-Deliverable Revenue Arrangements, which updates ASC 605-25, Revenue Recognition-Multiple element arrangements, of the Financial Accounting Standards Board (FASB) codification, for substantially all of the arrangements with multiple deliverables, the Company allocates revenue to each element based on a selling price hierarchy at the arrangement inception. The selling price for each element is based upon the following selling price hierarchy: vendor specific objective evidence (VSOE) if available, third party evidence (TPE) if VSOE is not available, or estimated selling price (ESP) if neither VSOE nor TPE are available (a description as to how the Company determines VSOE, TPE and ESP is provided below). If a tangible hardware systems product includes software, the Company determines whether the tangible hardware systems product and the software work together to deliver the product’s essential functionality and, if so, the entire product is treated as a nonsoftware deliverable. The total arrangement consideration is allocated to each separate unit of accounting for each of the nonsoftware deliverables using the relative selling prices of each unit based on the aforementioned selling price hierarchy. Revenue for each separate unit of accounting is recognized when the applicable revenue recognition criteria for each element have been met. | |||||||||||||||||
To determine the selling price in multiple-element arrangements, the Company establishes VSOE of the selling price using the price charged for a deliverable when sold separately. The Company also considers specific renewal rates offered to customers for software license updates, product support and hardware systems support, and other services. For nonsoftware multiple-element arrangements, TPE is established by evaluating similar and/or interchangeable competitor products or services in standalone arrangements with similarly situated customers and/or agreements. If the Company is unable to determine the selling price because VSOE or TPE doesn’t exist, the Company determines ESP for the purposes of allocating the arrangement by reviewing historical transactions, including transactions whereby the deliverable was sold on a standalone basis and considers several other external and internal factors including, but not limited to, pricing practices including discounting, margin objectives, competition, the geographies in which the Company offers its products and services, the type of customer (i.e., distributor, value added reseller, government agency or direct end user, among others), volume commitments and the stage of the product lifecycle. The determination of ESP considers the Company’s pricing model and go-to-market strategy. As the Company, or its competitors’, pricing and go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to its determination of VSOE, TPE and ESP. As a result, the Company’s future revenue recognition for multiple-element arrangements could differ materially from those in the current period. | |||||||||||||||||
Revenue recognition shipping and handling fees and costs | ' | ||||||||||||||||
In accordance with the authoritative guidance for shipping and handling fees and costs (ASC 605-45), the Company records shipping and handling costs billed to customers as a component of revenues, and shipping and handling costs incurred by the Company for inbound and outbound freight as a component of cost of revenues. | |||||||||||||||||
Revenue recognition collections in excess of revenues and deferred revenues | ' | ||||||||||||||||
Collections in excess of revenues and deferred revenues represent cash collected from customers in advance of revenue recognition and are recorded in accrued liabilities for obligations within the next twelve months. Amounts for obligations extending beyond twelve months are recorded within other liabilities in the condensed consolidated financial statements. | |||||||||||||||||
Advertising costs | ' | ||||||||||||||||
Advertising costs | |||||||||||||||||
In accordance with the authoritative guidance for advertising costs (ASC 720-35), advertising costs are expensed as incurred and included in selling, general and administrative expenses (SG&A). Advertising expenses for the three months ended July 4, 2014 and June 28, 2013 were $2.3 million and $2.9 million, respectively. | |||||||||||||||||
Commissions | ' | ||||||||||||||||
Commissions | |||||||||||||||||
The Company compensates third parties based on specific commission programs directly related to certain product and service sales, and these commissions costs are expensed as incurred. | |||||||||||||||||
Property, equipment and satellites | ' | ||||||||||||||||
Property, equipment and satellites | |||||||||||||||||
Satellites and other property and equipment 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 gateway facilities, 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 computes depreciation using the straight-line method over the estimated useful lives of the assets ranging from two to twenty-four 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 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. | |||||||||||||||||
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 assets under construction, including the ViaSat-2 satellite which commenced construction during the first quarter of fiscal year 2014, the Company capitalized $3.1 million and $0.9 million of interest expense during the three months ended July 4, 2014 and June 28, 2013, respectively. | |||||||||||||||||
The Company owns two satellites: ViaSat-1 (its first high-capacity Ka-band spot-beam satellite, which was placed into service in January 2012) and WildBlue-1 (which was placed into service in March 2007). In May 2013, the Company entered into a satellite construction contract for ViaSat-2, its second high-capacity Ka-band satellite. In addition, the Company has an exclusive prepaid lifetime capital lease of Ka-band capacity over the contiguous United States on Telesat Canada’s Anik F2 satellite (which was placed into service in April 2005) and owns related gateway and networking equipment for all of its satellites. The Company periodically reviews the remaining estimated useful life of its satellites to determine if revisions to estimated lives are necessary. The Company procures indoor and outdoor customer premise equipment (CPE) units leased to subscribers under a retail leasing program as part of the Company’s satellite services segment, which are reflected in investing activities and property and equipment in the accompanying condensed consolidated financial statements. The Company depreciates the satellites, gateway 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 and equipment, net, as of July 4, 2014 were $222.0 million and $86.9 million, respectively. The total cost and accumulated depreciation of CPE units included in property and equipment, net, as of April 4, 2014 were $221.0 million and $79.8 million, respectively. | |||||||||||||||||
Occasionally, the Company may enter into capital lease arrangements for various machinery, equipment, computer-related equipment, software, furniture or fixtures. The Company records amortization of assets leased under capital lease arrangements within depreciation expense. | |||||||||||||||||
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). | |||||||||||||||||
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 of $3.2 million related to patents were included in other assets as of July 4, 2014 and April 4, 2014. The Company had capitalized costs of $14.8 million and $13.5 million related to acquiring and obtaining orbital slots and other licenses included in other assets as of July 4, 2014 and April 4, 2014, respectively. Accumulated amortization related to these assets was approximately $1.0 million as of July 4, 2014 and April 4, 2014. Amortization expense related to these assets was an insignificant amount for the three months ended July 4, 2014 and June 28, 2013. If a patent, orbital slot or orbital license is rejected, abandoned or otherwise invalidated, the unamortized cost is expensed in that period. During the three months ended July 4, 2014 and June 28, 2013, 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 on a straight-line basis over the expected term of the related debt, the results of which are not materially different from the effective interest rate basis. During the three months ended July 4, 2014 and June 28, 2013, no amounts were paid and capitalized for debt issuance costs. 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 consolidated statements of operations and comprehensive income (loss). Other unamortized debt issuance costs are recorded in prepaid expenses and other current assets and in other long-term assets in the consolidated balance sheets, depending on the amounts expected to be amortized to interest expense within the next twelve months. | |||||||||||||||||
Software development | ' | ||||||||||||||||
Software development | |||||||||||||||||
Costs of developing software for sale are charged to 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. Capitalized costs, net, of $97.3 million and $91.0 million related to software developed for resale were included in other assets as of July 4, 2014 and April 4, 2014, respectively. The Company capitalized $10.7 million and $6.4 million of costs related to software developed for resale for the three months ended July 4, 2014 and June 28, 2013, respectively. Amortization expense for software development costs was $4.4 million and $2.4 million for the three months ended July 4, 2014 and June 28, 2013, respectively. | |||||||||||||||||
Self-insurance liabilities | ' | ||||||||||||||||
Self-insurance 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 internal 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 $3.9 million and $3.5 million as of July 4, 2014 and April 4, 2014, 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 liabilities in accordance with the estimated timing of the projected payments. | |||||||||||||||||
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 July 4, 2014 and April 4, 2014, no such amounts were accrued related to the aforementioned provisions. | |||||||||||||||||
Noncontrolling interest | ' | ||||||||||||||||
Noncontrolling interest | |||||||||||||||||
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, separately 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. | |||||||||||||||||
Derivatives | ' | ||||||||||||||||
Derivatives | |||||||||||||||||
The Company enters into foreign currency forward and option contracts from time to time to hedge certain forecasted foreign currency transactions. Gains and losses arising from foreign currency forward and option contracts not designated as hedging instruments are recorded in other income (expense) as gains (losses) on derivative instruments. Gains and losses arising from the effective portion of foreign currency forward and option contracts 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. | |||||||||||||||||
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, and recognizes expense on a straight-line basis over the employee’s requisite service period. Stock-based compensation expense is recognized in the condensed consolidated statements of operations and comprehensive income (loss) for the three months ended July 4, 2014 and June 28, 2013 only for those awards ultimately expected to vest, with forfeitures estimated at the date of grant. The authoritative guidance for share-based payments requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company recognized $8.9 million and $7.5 million of stock-based compensation expense for the three months ended July 4, 2014 and June 28, 2013, respectively. | |||||||||||||||||
For the three months ended July 4, 2014 and June 28, 2013, the Company recorded no incremental tax benefits from stock options exercised and restricted stock unit awards vesting as the excess tax benefit from stock options exercised and restricted stock unit awards vesting increased the Company’s net operating loss carryforward. | |||||||||||||||||
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 current and 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 effective tax rate at the end of an interim period is calculated using an estimate of the annual effective tax rate expected to be applicable for the full fiscal year. However, when a reliable estimate cannot be made, the Company computes its provision for income taxes using the actual effective tax rate (discrete method) for the year-to-date 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. Deferred income tax expense (benefit) is the net change during the year in the deferred income tax asset or liability. | |||||||||||||||||
The Company’s analysis of the need for a valuation allowance on deferred tax assets considered the losses incurred during the three months ended July 4, 2014 and the fiscal years ended April 4, 2014 and March 29, 2013. In fiscal year 2013, the Company recorded a significant loss, a substantial portion of which resulted from an extinguishment of debt charge that was recorded upon the refinancing of the Company’s former 8.875% Senior Notes due 2016 (2016 Notes) with the proceeds from the issuance of additional 6.875% Senior Notes due 2020 (2020 Notes), which provides a benefit to net income due to the lower interest rate of the 2020 Notes. The loss from fiscal year 2014 was less significant and a substantial portion of that loss related to legal expense focused on protecting and extending the Company’s technology advantages. In addition to these events, the Company’s evaluation considered other factors, including the Company’s contractual backlog, the Company’s history of positive earnings, current earnings trends assuming the Company’s satellite subscriber base continues to grow, taxable income adjusted for certain items, and forecasted income by jurisdiction. The Company also considered the lengthy period over which these net deferred tax assets can be realized and the Company’s history of not having federal tax loss carryforwards expire unused. | |||||||||||||||||
Recent authoritative guidance | ' | ||||||||||||||||
Recent authoritative guidance | |||||||||||||||||
In March 2013, the FASB issued ASU 2013-05, Foreign Currency Matters (ASC 830): Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. ASU 2013-05 clarifies that the cumulative translation adjustment should be released into net income only when a reporting entity ceases to have a controlling financial interest in a subsidiary or a business within a foreign entity. Further, for an equity method investment that is a foreign entity, a pro rata portion of the cumulative translation adjustment should be released into net income upon a partial sale of such an equity method investment. These amendments are to be applied prospectively to derecognition events occurring after the effective date. This guidance became effective for the Company beginning in the first quarter of fiscal year 2015 and the authoritative guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. | |||||||||||||||||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (ASC 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 requires the netting of unrecognized tax benefits against available deferred tax assets for losses and other carryforward benefits that would be available to offset the liability for uncertain tax positions rather than presenting the unrecognized tax benefits on a gross basis. This guidance became effective for the Company beginning in the first quarter of fiscal year 2015 and the authoritative guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. | |||||||||||||||||
In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements and Property, Plant, and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 limits the requirement to report discontinued operations to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. The amendments also require expanded disclosures concerning discontinued operations and disclosures of certain financial results attributable to a disposal of a significant component of an entity that does not qualify for discontinued operations reporting. These amendments will become effective prospectively for the Company beginning in fiscal year 2016, with early adoption permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and disclosures. | |||||||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to a customer. This guidance will replace most existing revenue recognition guidance and will be effective for the Company beginning in the first quarter of fiscal year 2018, including interim periods within that reporting period. Early application is not permitted, but the guidance permits the use of either the retrospective or cumulative effect transition method. The Company has not selected a transition method and the Company is currently evaluating the impact this guidance will have 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 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 instruments valuation. | ||||||||||||||||
The following tables present the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of July 4, 2014 and April 4, 2014: | |||||||||||||||||
Fair Value as of | Level 1 | Level 2 | Level 3 | ||||||||||||||
July 4, 2014 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents | $ | 1,337 | $ | 1,337 | $ | — | $ | — | |||||||||
Foreign currency forward contracts | 51 | — | 51 | — | |||||||||||||
Total assets measured at fair value on a recurring basis | $ | 1,388 | $ | 1,337 | $ | 51 | $ | — | |||||||||
Fair Value as of | Level 1 | Level 2 | Level 3 | ||||||||||||||
April 4, 2014 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents | $ | 2,087 | $ | 2,087 | $ | — | $ | — | |||||||||
Foreign currency forward contracts | 40 | — | 40 | — | |||||||||||||
Total assets measured at fair value on a recurring basis | $ | 2,127 | $ | 2,087 | $ | 40 | $ | — | |||||||||
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. Money market funds are valued using quoted prices for identical assets in an active market with sufficient volume and frequency of transactions (Level 1). | |||||||||||||||||
Foreign currency forward contracts — The Company uses derivative financial instruments to manage foreign currency risk relating to foreign exchange rates. The Company does not use these instruments for speculative or trading purposes. The Company’s objective is to reduce the risk to earnings and cash flows associated with changes in foreign currency exchange rates. Derivative instruments are recognized as either assets or liabilities in the accompanying condensed consolidated financial statements and are measured at fair value. Gains and losses resulting from changes in the fair values of those derivative instruments are recorded to earnings or other comprehensive income (loss) depending on the use of the derivative instrument and whether it qualifies for hedge accounting. The Company’s foreign currency forward contracts are valued using standard calculations/models that are primarily based on observable inputs, such as foreign currency exchange rates, or can be corroborated by observable market data (Level 2). | |||||||||||||||||
Long-term debt — The Company’s long-term debt consists of borrowings under its revolving credit facility (the Credit Facility), reported at the outstanding principal amount of borrowings, and $575.0 million in aggregate principal amount of 2020 Notes reported at amortized cost. However, for disclosure purposes, the Company is required to measure the fair value of outstanding debt on a recurring basis. As of July 4, 2014 and April 4, 2014, the fair value of the Company’s outstanding long-term debt related to the 2020 Notes was determined using quoted prices in active markets (Level 1) and was approximately $622.4 million and $616.7 million, respectively. The fair value of the Company’s long-term debt related to the Credit Facility approximates its carrying amount due to the variable interest rate on the revolving line of credit, which approximates a market interest rate. | |||||||||||||||||
Satellite performance incentives obligation — The Company’s contract with the manufacturer of ViaSat-1 requires the Company to make monthly in-orbit satellite performance incentive payments, including interest at 7.0%, over a fifteen-year period from December 2011 to December 2026, subject to the continued satisfactory performance of the satellite. The Company recorded the net present value of these expected future payments as a liability and as a component of the cost of the satellite. However, for disclosure purposes, the Company is required to measure the fair value of outstanding satellite performance incentives on a recurring basis. The fair value of the Company’s outstanding satellite performance incentives is estimated to approximate their carrying value based on current rates (Level 2). As of each of July 4, 2014 and April 4, 2014, the Company’s estimated satellite performance incentives obligation and accrued interest was $22.5 million and $22.6 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 ten years, which is not materially different from the economic benefit method. | |||||||||||||||||
Product warranty | ' | ||||||||||||||||
The Company provides limited warranties on its products for periods of up to five years. The Company records a liability for its warranty obligations when products are shipped or they are included in long-term construction contracts based upon an estimate of expected warranty costs. Amounts expected to be incurred within twelve months are classified as accrued liabilities and amounts expected to be incurred beyond twelve months are classified as other liabilities in the condensed consolidated financial statement. For mature products, the warranty cost estimates are based on historical experience with the particular product. For newer products that do not have a history of warranty costs, the Company bases its estimates on its experience with the technology involved and the types of failures that may occur. It is possible that the Company’s underlying assumptions will not reflect the actual experience and in that case, future adjustments will be made to the recorded warranty obligation. | |||||||||||||||||
Acquisition | ' | ||||||||||||||||
The Company accounts for business combinations pursuant to the authoritative guidance for business combinations (ASC 805). Accordingly, the Company allocated the purchase price of the acquired company to the net tangible assets and intangible assets acquired based upon their estimated fair values. Under the authoritative guidance for business combinations, acquisition-related transaction costs and acquisition-related restructuring charges are not included as components of consideration transferred but are accounted for as expenses in the period in which the costs are incurred. Total merger-related transaction costs incurred by the Company were approximately $0.4 million, all of which were incurred and recorded in SG&A expenses in the three months ended July 4, 2014. | |||||||||||||||||
The intangible assets acquired in the NetNearU business combination were determined, in accordance with the authoritative guidance for business combinations, based on the estimated fair values using valuation techniques consistent with the market approach and/or income approach to measure fair value. The remaining useful lives were estimated based on the underlying agreements and/or the future economic benefit expected to be received from the assets. | |||||||||||||||||
Segment reporting | ' | ||||||||||||||||
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. |
Composition_of_Certain_Balance1
Composition of Certain Balance Sheet Captions (Tables) | 3 Months Ended | ||||||||
Jul. 04, 2014 | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ||||||||
Composition of Certain Balance Sheet Captions | ' | ||||||||
As of | As of | ||||||||
July 4, 2014 | April 4, 2014 | ||||||||
(In thousands) | |||||||||
Accounts receivable, net: | |||||||||
Billed | $ | 131,010 | $ | 129,794 | |||||
Unbilled | 149,755 | 143,651 | |||||||
Allowance for doubtful accounts | (1,617 | ) | (1,554 | ) | |||||
$ | 279,148 | $ | 271,891 | ||||||
Inventories: | |||||||||
Raw materials | $ | 49,241 | $ | 42,786 | |||||
Work in process | 21,876 | 22,279 | |||||||
Finished goods | 57,450 | 54,536 | |||||||
$ | 128,567 | $ | 119,601 | ||||||
Prepaid expenses and other current assets: | |||||||||
Prepaid expenses | $ | 36,477 | $ | 41,341 | |||||
Other | 4,204 | 2,729 | |||||||
$ | 40,681 | $ | 44,070 | ||||||
Satellites, net: | |||||||||
Satellite — WildBlue-1 (estimated useful life of 10 years) | $ | 195,890 | $ | 195,890 | |||||
Capital lease of satellite capacity — Anik F2 (estimated useful life of 10 years) | 99,090 | 99,090 | |||||||
Satellite — ViaSat-1 (estimated useful life of 17 years) | 363,204 | 363,204 | |||||||
Satellite — ViaSat-2 (under construction) | 187,643 | 146,610 | |||||||
845,827 | 804,794 | ||||||||
Less accumulated depreciation and amortization | (186,673 | ) | (173,958 | ) | |||||
$ | 659,154 | $ | 630,836 | ||||||
Property and equipment, net: | |||||||||
Equipment and software (estimated useful life of 2-7 years) | $ | 468,028 | $ | 452,197 | |||||
CPE leased equipment (estimated useful life of 4-5 years) | 222,037 | 221,017 | |||||||
Furniture and fixtures (estimated useful life of 7 years) | 19,578 | 18,773 | |||||||
Leasehold improvements (estimated useful life of 2-17 years) | 64,755 | 62,159 | |||||||
Building (estimated useful life of 24 years) | 8,923 | 8,923 | |||||||
Land | 1,621 | 1,621 | |||||||
Construction in progress | 13,043 | 17,062 | |||||||
797,985 | 781,752 | ||||||||
Less accumulated depreciation | (383,424 | ) | (360,086 | ) | |||||
$ | 414,561 | $ | 421,666 | ||||||
Other acquired intangible assets, net: | |||||||||
Technology (weighted average useful life of 6 years) | $ | 68,371 | $ | 57,084 | |||||
Contracts and customer relationships (weighted average useful life of 8 years) | 99,873 | 88,853 | |||||||
Satellite co-location rights (weighted average useful life of 9 years) | 8,600 | 8,600 | |||||||
Trade name (weighted average useful life of 3 years) | 5,940 | 5,680 | |||||||
Other (weighted average useful life of 7 years) | 8,769 | 6,320 | |||||||
191,553 | 166,537 | ||||||||
Less accumulated amortization | (135,447 | ) | (131,140 | ) | |||||
$ | 56,106 | $ | 35,397 | ||||||
Other assets: | |||||||||
Capitalized software costs, net | $ | 97,316 | $ | 91,022 | |||||
Patents, orbital slots and other licenses, net | 17,000 | 15,700 | |||||||
Deferred income taxes | 114,282 | 110,711 | |||||||
Other | 38,913 | 39,535 | |||||||
$ | 267,511 | $ | 256,968 | ||||||
Accrued liabilities: | |||||||||
Collections in excess of revenues and deferred revenues | $ | 82,937 | $ | 69,127 | |||||
Accrued employee compensation | 14,206 | 23,954 | |||||||
Accrued vacation | 24,249 | 22,550 | |||||||
Warranty reserve, current portion | 9,207 | 9,368 | |||||||
Current portion of other long-term debt | 1,783 | 1,856 | |||||||
Other | 34,283 | 49,119 | |||||||
$ | 166,665 | $ | 175,974 | ||||||
Other liabilities: | |||||||||
Deferred revenue, long-term portion | $ | 8,418 | $ | 10,097 | |||||
Deferred rent, long-term portion | 8,766 | 9,758 | |||||||
Warranty reserve, long-term portion | 7,688 | 7,655 | |||||||
Deferred income taxes, long-term portion | 834 | 816 | |||||||
Satellite performance incentives obligation, long-term portion | 20,472 | 20,567 | |||||||
$ | 46,178 | $ | 48,893 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Jul. 04, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
The following tables present the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of July 4, 2014 and April 4, 2014: | |||||||||||||||||
Fair Value as of | Level 1 | Level 2 | Level 3 | ||||||||||||||
July 4, 2014 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents | $ | 1,337 | $ | 1,337 | $ | — | $ | — | |||||||||
Foreign currency forward contracts | 51 | — | 51 | — | |||||||||||||
Total assets measured at fair value on a recurring basis | $ | 1,388 | $ | 1,337 | $ | 51 | $ | — | |||||||||
Fair Value as of | Level 1 | Level 2 | Level 3 | ||||||||||||||
April 4, 2014 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash equivalents | $ | 2,087 | $ | 2,087 | $ | — | $ | — | |||||||||
Foreign currency forward contracts | 40 | — | 40 | — | |||||||||||||
Total assets measured at fair value on a recurring basis | $ | 2,127 | $ | 2,087 | $ | 40 | $ | — | |||||||||
Goodwill_and_Acquired_Intangib1
Goodwill and Acquired Intangible Assets (Tables) | 3 Months Ended | ||||
Jul. 04, 2014 | |||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||
Expected Amortization Expense for Acquired Intangible Assets | ' | ||||
Current and expected amortization expense for acquired intangible assets for each of the following periods is as follows: | |||||
Amortization | |||||
(In thousands) | |||||
For the three months ended July 4, 2014 | $ | 4,029 | |||
Expected for the remainder of fiscal year 2015 | $ | 14,063 | |||
Expected for fiscal year 2016 | 15,087 | ||||
Expected for fiscal year 2017 | 7,719 | ||||
Expected for fiscal year 2018 | 6,386 | ||||
Expected for fiscal year 2019 | 3,889 | ||||
Thereafter | 8,962 | ||||
$ | 56,106 | ||||
Senior_Notes_and_Other_LongTer1
Senior Notes and Other Long-Term Debt (Tables) | 3 Months Ended | ||||||||
Jul. 04, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Components of Long-Term Debt | ' | ||||||||
Total long-term debt consisted of the following as of July 4, 2014 and April 4, 2014: | |||||||||
As of | As of | ||||||||
July 4, 2014 | April 4, 2014 | ||||||||
(In thousands) | |||||||||
Senior Notes | |||||||||
2020 Notes | $ | 575,000 | $ | 575,000 | |||||
Unamortized premium on the 2020 Notes | 8,567 | 8,861 | |||||||
Total senior notes, net of premium | 583,567 | 583,861 | |||||||
Less: current portion of the senior notes | — | — | |||||||
Total senior notes long-term, net | 583,567 | 583,861 | |||||||
Other Long-Term Debt | |||||||||
Revolving credit facility | 205,000 | 105,000 | |||||||
Other | 2,615 | 2,756 | |||||||
Total other long-term debt | 207,615 | 107,756 | |||||||
Less: current portion of other long-term debt | 1,783 | 1,856 | |||||||
Other long-term debt, net | 205,832 | 105,900 | |||||||
Total debt | 791,182 | 691,617 | |||||||
Less: current portion | 1,783 | 1,856 | |||||||
Long-term debt, net | $ | 789,399 | $ | 689,761 | |||||
Product_Warranty_Tables
Product Warranty (Tables) | 3 Months Ended | ||||||||
Jul. 04, 2014 | |||||||||
Product Warranties Disclosures [Abstract] | ' | ||||||||
Change in Company's Warranty Accrual | ' | ||||||||
The following table reflects the change in the Company’s warranty accrual during the three months ended July 4, 2014 and June 28, 2013: | |||||||||
Three Months Ended | |||||||||
July 4, 2014 | June 28, 2013 | ||||||||
(In thousands) | |||||||||
Balance, beginning of period | $ | 17,023 | $ | 14,107 | |||||
Change in liability for warranties issued in period | 1,716 | 2,130 | |||||||
Settlements made (in cash or in kind) during the period | (1,844 | ) | (1,508 | ) | |||||
Balance, end of period | $ | 16,895 | $ | 14,729 | |||||
Acquisition_Tables
Acquisition (Tables) | 3 Months Ended | ||||||||
Jul. 04, 2014 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
The Preliminary Estimated Purchase Price Allocation of the Acquired Assets and Assumed Liabilities Based on the Estimated Fair Values | ' | ||||||||
The preliminary estimated purchase price allocation of the acquired assets and assumed liabilities based on the estimated fair values as of June 6, 2014 is as follows: | |||||||||
(In thousands) | |||||||||
Current assets | $ | 8,482 | |||||||
Property and equipment | 1,087 | ||||||||
Identifiable intangible assets | 24,310 | ||||||||
Goodwill | 34,065 | ||||||||
Total assets acquired | 67,944 | ||||||||
Current liabilities | (5,305 | ) | |||||||
Other long-term liabilities | (2,716 | ) | |||||||
Total liabilities assumed | (8,021 | ) | |||||||
Total purchase price | $ | 59,923 | |||||||
Amounts Assigned to Identifiable Intangible Assets and Estimated Weighted Average Useful Lives | ' | ||||||||
Amounts assigned to identifiable intangible assets are being amortized on a straight-line basis over their estimated useful lives and are as follows: | |||||||||
Preliminary | Estimated | ||||||||
fair value | weighted | ||||||||
(In thousands) | average | ||||||||
life | |||||||||
Technology | $ | 10,970 | 7 | ||||||
Customer relationships | 10,950 | 9 | |||||||
Non-compete agreements | 2,130 | 2 | |||||||
Trade name | 260 | 2 | |||||||
Total identifiable intangible assets | $ | 24,310 | 8 | ||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||||||||||
Jul. 04, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Revenues, Operating (Losses) Profits and Assets | ' | ||||||||||||||||
Segment revenues and operating (losses) profits for the three months ended July 4, 2014 and June 28, 2013 were as follows: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
July 4, | June 28, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Revenues: | |||||||||||||||||
Satellite Services | |||||||||||||||||
Product | $ | 30 | $ | 16 | |||||||||||||
Service | 109,685 | 85,831 | |||||||||||||||
Total | 109,715 | 85,847 | |||||||||||||||
Commercial Networks | |||||||||||||||||
Product | 88,592 | 91,824 | |||||||||||||||
Service | 3,636 | 5,575 | |||||||||||||||
Total | 92,228 | 97,399 | |||||||||||||||
Government Systems | |||||||||||||||||
Product | 79,507 | 90,321 | |||||||||||||||
Service | 38,021 | 47,535 | |||||||||||||||
Total | 117,528 | 137,856 | |||||||||||||||
Elimination of intersegment revenues | — | — | |||||||||||||||
Total revenues | $ | 319,471 | $ | 321,102 | |||||||||||||
Operating (losses) profits: | |||||||||||||||||
Satellite Services | $ | (1,949 | ) | $ | (12,978 | ) | |||||||||||
Commercial Networks | (5,990 | ) | 3,336 | ||||||||||||||
Government Systems | 10,799 | 16,567 | |||||||||||||||
Elimination of intersegment operating profits | — | — | |||||||||||||||
Segment operating profit before corporate and amortization of acquired intangible assets | 2,860 | 6,925 | |||||||||||||||
Corporate | — | — | |||||||||||||||
Amortization of acquired intangible assets | (4,029 | ) | (3,501 | ) | |||||||||||||
(Loss) income from operations | $ | (1,169 | ) | $ | 3,424 | ||||||||||||
Assets identifiable to segments include: accounts receivable, unbilled accounts receivable, inventory, acquired intangible assets and goodwill. The Company’s property and equipment, including its satellites, gateways and other networking equipment, are assigned to corporate assets as they are available for use by the various segments throughout their estimated useful lives. Segment assets as of July 4, 2014 and April 4, 2014 were as follows: | |||||||||||||||||
As of | As of | ||||||||||||||||
July 4, | April 4, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Segment assets: | |||||||||||||||||
Satellite Services | $ | 77,543 | $ | 73,382 | |||||||||||||
Commercial Networks | 245,171 | 229,455 | |||||||||||||||
Government Systems | 258,356 | 206,848 | |||||||||||||||
Total segment assets | 581,070 | 509,685 | |||||||||||||||
Corporate assets | 1,475,210 | 1,450,430 | |||||||||||||||
Total assets | $ | 2,056,280 | $ | 1,960,115 | |||||||||||||
Other Net Acquired Intangible Assets and Goodwill Included in Segment Assets | ' | ||||||||||||||||
Other acquired intangible assets, net and goodwill included in segment assets as of July 4, 2014 and April 4, 2014 were as follows: | |||||||||||||||||
Other Acquired Intangible | Goodwill | ||||||||||||||||
Assets, Net | |||||||||||||||||
As of | As of | As of | As of | ||||||||||||||
July 4, 2014 | April 4, 2014 | July 4, 2014 | April 4, 2014 | ||||||||||||||
(In thousands) | |||||||||||||||||
Satellite Services | $ | 26,166 | $ | 28,931 | $ | 9,809 | $ | 9,809 | |||||||||
Commercial Networks | 2,552 | 2,583 | 44,143 | 44,148 | |||||||||||||
Government Systems | 27,388 | 3,883 | 63,978 | 29,670 | |||||||||||||
Total | $ | 56,106 | $ | 35,397 | $ | 117,930 | $ | 83,627 | |||||||||
Amortization of Acquired Intangible Assets by Segment | ' | ||||||||||||||||
Amortization of acquired intangible assets by segment for the three months ended July 4, 2014 and June 28, 2013 was as follows: | |||||||||||||||||
Three Months Ended | |||||||||||||||||
July 4, 2014 | June 28, 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Satellite Services | $ | 2,765 | $ | 2,765 | |||||||||||||
Commercial Networks | 343 | 143 | |||||||||||||||
Government Systems | 921 | 593 | |||||||||||||||
Total amortization of acquired intangible assets | $ | 4,029 | $ | 3,501 | |||||||||||||
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Jul. 04, 2014 | Jun. 28, 2013 | Apr. 04, 2014 | |
Company And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Forward loss related to loss contracts | $100,000 | $400,000 | ' |
Defense contract audit agency completed cost audits | 'Contract costs on U.S. government contracts are subject to audit and review by the Defense Contracting Management Agency (DCMA), the Defense Contract Audit Agency (DCAA), and other U.S. government agencies, as well as negotiations with U.S. government representatives. The Companybs incurred cost audits by the DCAA have not been concluded for fiscal year 2004 and subsequent fiscal years. Although the Company has recorded contract revenues subsequent to fiscal year 2003 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 Companybs estimates, its profitability would be adversely affected. | ' | ' |
Total U.S. government contract-related reserves balance | 6,700,000 | ' | 6,700,000 |
Advertising expenses | 2,300,000 | 2,900,000 | ' |
Capitalized interest expense | 3,100,000 | 900,000 | ' |
CPE leased equipment, total cost | 222,000,000 | ' | 221,000,000 |
Total capitalized costs related to patents | 3,200,000 | ' | 3,200,000 |
Total capitalized costs related to orbital slots and other licenses | 14,800,000 | ' | 13,500,000 |
Accumulated amortization of patents and other licenses | 1,000,000 | ' | 1,000,000 |
Amortization expense related to patents and other licenses | 0 | 0 | ' |
Impairment of long-lived assets (property, equipment, and satellites, and other assets) recorded | 0 | 0 | ' |
Payment of debt issuance costs | 0 | 0 | ' |
Property Plant and Equipment - Excluding Satellites [Member] | ' | ' | ' |
Company And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Accumulated depreciation and amortization | 383,424,000 | ' | 360,086,000 |
Property Plant and Equipment - Excluding Satellites [Member] | CPE leased equipment [Member] | ' | ' | ' |
Company And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Accumulated depreciation and amortization | $86,900,000 | ' | $79,800,000 |
Minimum [Member] | ' | ' | ' |
Company And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Property, equipment and satellites, estimated useful life (years) | '2 years | ' | ' |
Minimum [Member] | Property Plant and Equipment - Excluding Satellites [Member] | CPE leased equipment [Member] | ' | ' | ' |
Company And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Property, equipment and satellites, estimated useful life (years) | '4 years | ' | ' |
Maximum [Member] | ' | ' | ' |
Company And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Property, equipment and satellites, estimated useful life (years) | '24 years | ' | ' |
Maximum [Member] | Property Plant and Equipment - Excluding Satellites [Member] | CPE leased equipment [Member] | ' | ' | ' |
Company And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Property, equipment and satellites, estimated useful life (years) | '5 years | ' | ' |
Basis_of_Presentation_Addition1
Basis of Presentation - Additional Information 1 (Detail) (USD $) | 3 Months Ended | ||
Jul. 04, 2014 | Jun. 28, 2013 | Apr. 04, 2014 | |
Company And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Capitalized costs, net, related to software developed for resale | $97,316,000 | ' | $91,022,000 |
Capitalized cost related to software development for resale | 10,700,000 | 6,400,000 | ' |
Amortization expense of software development costs | 4,400,000 | 2,400,000 | ' |
Self-insurance liability | 3,900,000 | ' | 3,500,000 |
Accrued indemnification losses | 0 | ' | 0 |
Purchase of treasury shares pursuant to vesting of certain RSU agreements | 375,000 | ' | ' |
Gains or losses from ineffectiveness of derivative instruments | 0 | 0 | ' |
Stock-based compensation expense | 8,904,000 | 7,490,000 | ' |
Incremental tax benefit from stock options exercised and restricted stock unit awards vesting | 0 | 0 | ' |
Derivatives designated as hedging instruments [Member] | Cash Flow Hedging [Member] | Foreign currency forward contracts [Member] | ' | ' | ' |
Company And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Notional value of foreign currency forward contracts outstanding | 3,200,000 | ' | 3,300,000 |
Estimated net amount of unrealized gains or losses on foreign currency cash flow income expected to be reclassified to earnings within the next twelve months | 100,000 | ' | ' |
Foreign currency forward contracts maturity, maximum | '18 months | ' | ' |
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 | 20,438 | 9,688 | ' |
Retirement of common stock held in treasury, shares | -1,197,363 | ' | ' |
Common Stock Held in Treasury [Member] | ' | ' | ' |
Company And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Purchase of treasury shares pursuant to vesting of certain RSU agreements, shares | 6,791 | 3,813 | ' |
Purchase of treasury shares pursuant to vesting of certain RSU agreements | 375,000 | 300,000 | ' |
Retirement of common stock held in treasury, shares | 1,197,363 | ' | ' |
Total value of treasury stock retired | 49,733,000 | ' | ' |
Repurchased shares of common stock held in treasury | 0 | ' | 1,190,572 |
Paid-in Capital [Member] | ' | ' | ' |
Company And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Total value of treasury stock retired | -49,733,000 | ' | ' |
Other current asset [Member] | Derivatives designated as hedging instruments [Member] | Cash Flow Hedging [Member] | Foreign currency forward contracts [Member] | ' | ' | ' |
Company And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Fair value of foreign currency forward contracts, asset | 100,000 | ' | 100,000 |
Cost of revenues [Member] | Derivatives designated as hedging instruments [Member] | Cash Flow Hedging [Member] | Foreign currency forward contracts [Member] | ' | ' | ' |
Company And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Settlement of foreign exchange contracts gain (loss) recognized | $100,000 | $100,000 | ' |
Maximum [Member] | ' | ' | ' |
Company And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life, years | '10 years | ' | ' |
Maximum [Member] | Software Development Costs [Member] | ' | ' | ' |
Company And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life, years | '5 years | ' | ' |
Accounting Standards Update 2014-08 [Member] | ' | ' | ' |
Company And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Description of new accounting pronouncements | 'In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements and Property, Plant, and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 limits the requirement to report discontinued operations to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entitybs operations and financial results. The amendments also require expanded disclosures concerning discontinued operations and disclosures of certain financial results attributable to a disposal of a significant component of an entity that does not qualify for discontinued operations reporting. These amendments will become effective prospectively for the Company beginning in fiscal year 2016, with early adoption permitted. The adoption of this standard is not expected to have a material impact on the Companybs consolidated financial statements and disclosures. | ' | ' |
Accounting Standards Update 2013-05 [Member] | ' | ' | ' |
Company And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Description of new accounting pronouncements | 'In March 2013, the FASB issued ASU 2013-05, Foreign Currency Matters (ASC 830): Parentbs Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. ASU 2013-05 clarifies that the cumulative translation adjustment should be released into net income only when a reporting entity ceases to have a controlling financial interest in a subsidiary or a business within a foreign entity. Further, for an equity method investment that is a foreign entity, a pro rata portion of the cumulative translation adjustment should be released into net income upon a partial sale of such an equity method investment. These amendments are to be applied prospectively to derecognition events occurring after the effective date. This guidance became effective for the Company beginning in the first quarter of fiscal year 2015 and the authoritative guidance did not have a material impact on the Companybs consolidated financial statements and disclosures. | ' | ' |
Accounting Standards Update 2013-11 [Member] | ' | ' | ' |
Company And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Description of new accounting pronouncements | 'In July 2013, the FASB issued ASU 2013-11, Income Taxes (ASC 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 requires the netting of unrecognized tax benefits against available deferred tax assets for losses and other carryforward benefits that would be available to offset the liability for uncertain tax positions rather than presenting the unrecognized tax benefits on a gross basis. This guidance became effective for the Company beginning in the first quarter of fiscal year 2015 and the authoritative guidance did not have a material impact on the Companybs consolidated financial statements and disclosures. | ' | ' |
Accounting Standards Update 2014-09 [Member] | ' | ' | ' |
Company And Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Description of new accounting pronouncements | 'In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to a customer. This guidance will replace most existing revenue recognition guidance and will be effective for the Company beginning in the first quarter of fiscal year 2018, including interim periods within that reporting period. Early application is not permitted, but the guidance permits the use of either the retrospective or cumulative effect transition method. The Company has not selected a transition method and the Company is currently evaluating the impact this guidance will have on its consolidated financial statements and disclosures. | ' | ' |
Composition_of_Certain_Balance2
Composition of Certain Balance Sheet Captions - Composition of Certain Balance Sheet Captions (Detail) (USD $) | Jul. 04, 2014 | Apr. 04, 2014 |
In Thousands, unless otherwise specified | ||
Accounts receivable, net: | ' | ' |
Accounts receivable, Billed | $131,010 | $129,794 |
Accounts receivable, Unbilled | 149,755 | 143,651 |
Allowance for doubtful accounts | -1,617 | -1,554 |
Accounts receivable, net | 279,148 | 271,891 |
Inventories: | ' | ' |
Raw materials | 49,241 | 42,786 |
Work in process | 21,876 | 22,279 |
Finished goods | 57,450 | 54,536 |
Inventories | 128,567 | 119,601 |
Prepaid expenses and other current assets: | ' | ' |
Prepaid expenses | 36,477 | 41,341 |
Other | 4,204 | 2,729 |
Prepaid expenses and other current assets | 40,681 | 44,070 |
Other acquired intangible assets, net: | ' | ' |
Other acquired intangible assets, gross | 191,553 | 166,537 |
Less accumulated amortization | -135,447 | -131,140 |
Other acquired intangible assets, net | 56,106 | 35,397 |
Other assets: | ' | ' |
Capitalized software costs, net | 97,316 | 91,022 |
Patents, orbital slots and other licenses, net | 17,000 | 15,700 |
Deferred income taxes | 114,282 | 110,711 |
Other | 38,913 | 39,535 |
Other assets | 267,511 | 256,968 |
Accrued liabilities: | ' | ' |
Collections in excess of revenues and deferred revenues | 82,937 | 69,127 |
Accrued employee compensation | 14,206 | 23,954 |
Accrued vacation | 24,249 | 22,550 |
Warranty reserve, current portion | 9,207 | 9,368 |
Current portion of other long-term debt | 1,783 | 1,856 |
Other | 34,283 | 49,119 |
Accrued liabilities | 166,665 | 175,974 |
Other liabilities: | ' | ' |
Deferred revenue, long-term portion | 8,418 | 10,097 |
Deferred rent, long-term portion | 8,766 | 9,758 |
Warranty reserve, long-term portion | 7,688 | 7,655 |
Deferred income taxes, long-term portion | 834 | 816 |
Other liabilities | 46,178 | 48,893 |
Technology [Member] | ' | ' |
Other acquired intangible assets, net: | ' | ' |
Other acquired intangible assets, gross | 68,371 | 57,084 |
Contracts and customer relationships [Member] | ' | ' |
Other acquired intangible assets, net: | ' | ' |
Other acquired intangible assets, gross | 99,873 | 88,853 |
Satellite co-location rights [Member] | ' | ' |
Other acquired intangible assets, net: | ' | ' |
Other acquired intangible assets, gross | 8,600 | 8,600 |
Trade name [Member] | ' | ' |
Other acquired intangible assets, net: | ' | ' |
Other acquired intangible assets, gross | 5,940 | 5,680 |
Other [Member] | ' | ' |
Other acquired intangible assets, net: | ' | ' |
Other acquired intangible assets, gross | 8,769 | 6,320 |
Property Plant and Equipment - Satellites [Member] | ' | ' |
Property and equipment, net: | ' | ' |
Property and equipment | 845,827 | 804,794 |
Less accumulated depreciation and amortization | -186,673 | -173,958 |
Property and equipment, net | 659,154 | 630,836 |
Property Plant and Equipment - Excluding Satellites [Member] | ' | ' |
Property and equipment, net: | ' | ' |
Property and equipment | 797,985 | 781,752 |
Less accumulated depreciation and amortization | -383,424 | -360,086 |
Property and equipment, net | 414,561 | 421,666 |
Satellite - WildBlue-1 [Member] | Property Plant and Equipment - Satellites [Member] | ' | ' |
Property and equipment, net: | ' | ' |
Property and equipment | 195,890 | 195,890 |
Capital lease of satellite capacity - Anik F2 [Member] | Property Plant and Equipment - Satellites [Member] | ' | ' |
Property and equipment, net: | ' | ' |
Property and equipment | 99,090 | 99,090 |
Satellite - ViaSat-1 [Member] | Property Plant and Equipment - Satellites [Member] | ' | ' |
Property and equipment, net: | ' | ' |
Property and equipment | 363,204 | 363,204 |
Satellite - ViaSat-2 (under construction) [Member] | Property Plant and Equipment - Satellites [Member] | ' | ' |
Property and equipment, net: | ' | ' |
Property and equipment | 187,643 | 146,610 |
Equipment and software [Member] | Property Plant and Equipment - Excluding Satellites [Member] | ' | ' |
Property and equipment, net: | ' | ' |
Property and equipment | 468,028 | 452,197 |
CPE leased equipment [Member] | Property Plant and Equipment - Excluding Satellites [Member] | ' | ' |
Property and equipment, net: | ' | ' |
Property and equipment | 222,037 | 221,017 |
Less accumulated depreciation and amortization | -86,900 | -79,800 |
Furniture and fixtures [Member] | Property Plant and Equipment - Excluding Satellites [Member] | ' | ' |
Property and equipment, net: | ' | ' |
Property and equipment | 19,578 | 18,773 |
Leasehold improvements [Member] | Property Plant and Equipment - Excluding Satellites [Member] | ' | ' |
Property and equipment, net: | ' | ' |
Property and equipment | 64,755 | 62,159 |
Building [Member] | Property Plant and Equipment - Excluding Satellites [Member] | ' | ' |
Property and equipment, net: | ' | ' |
Property and equipment | 8,923 | 8,923 |
Land [Member] | Property Plant and Equipment - Excluding Satellites [Member] | ' | ' |
Property and equipment, net: | ' | ' |
Property and equipment | 1,621 | 1,621 |
Construction in progress [Member] | Property Plant and Equipment - Excluding Satellites [Member] | ' | ' |
Property and equipment, net: | ' | ' |
Property and equipment | 13,043 | 17,062 |
Satellite Performance Incentives Obligation [Member] | ' | ' |
Other liabilities: | ' | ' |
Satellite performance incentives obligation, long-term portion | $20,472 | $20,567 |
Composition_of_Certain_Balance3
Composition of Certain Balance Sheet Captions - Composition of Certain Balance Sheet Captions (Parenthetical) (Detail) | 3 Months Ended |
Jul. 04, 2014 | |
Technology [Member] | ' |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | ' |
Other acquired intangible assets, weighted average useful life | '6 years |
Contracts and customer relationships [Member] | ' |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | ' |
Other acquired intangible assets, weighted average useful life | '8 years |
Satellite co-location rights [Member] | ' |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | ' |
Other acquired intangible assets, weighted average useful life | '9 years |
Trade name [Member] | ' |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | ' |
Other acquired intangible assets, weighted average useful life | '3 years |
Other [Member] | ' |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | ' |
Other acquired intangible assets, weighted average useful life | '7 years |
Property Plant and Equipment - Satellites [Member] | Satellite - WildBlue-1 [Member] | ' |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | ' |
Property, equipment and satellites, estimated useful life (years) | '10 years |
Property Plant and Equipment - Satellites [Member] | Capital lease of satellite capacity - Anik F2 [Member] | ' |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | ' |
Property, equipment and satellites, estimated useful life (years) | '10 years |
Property Plant and Equipment - Satellites [Member] | Satellite - ViaSat-1 [Member] | ' |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | ' |
Property, equipment and satellites, estimated useful life (years) | '17 years |
Property Plant and Equipment - Excluding Satellites [Member] | Furniture and fixtures [Member] | ' |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | ' |
Property, equipment and satellites, estimated useful life (years) | '7 years |
Property Plant and Equipment - Excluding Satellites [Member] | Building [Member] | ' |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | ' |
Property, equipment and satellites, estimated useful life (years) | '24 years |
Minimum [Member] | ' |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | ' |
Property, equipment and satellites, estimated useful life (years) | '2 years |
Minimum [Member] | Property Plant and Equipment - Excluding Satellites [Member] | Equipment and software [Member] | ' |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | ' |
Property, equipment and satellites, estimated useful life (years) | '2 years |
Minimum [Member] | Property Plant and Equipment - Excluding Satellites [Member] | CPE leased equipment [Member] | ' |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | ' |
Property, equipment and satellites, estimated useful life (years) | '4 years |
Minimum [Member] | Property Plant and Equipment - Excluding Satellites [Member] | Leasehold improvements [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) | '24 years |
Maximum [Member] | Property Plant and Equipment - Excluding Satellites [Member] | Equipment and software [Member] | ' |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | ' |
Property, equipment and satellites, estimated useful life (years) | '7 years |
Maximum [Member] | Property Plant and Equipment - Excluding Satellites [Member] | CPE leased equipment [Member] | ' |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | ' |
Property, equipment and satellites, estimated useful life (years) | '5 years |
Maximum [Member] | Property Plant and Equipment - Excluding Satellites [Member] | Leasehold improvements [Member] | ' |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | ' |
Property, equipment and satellites, estimated useful life (years) | '17 years |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring [Member], USD $) | Jul. 04, 2014 | Apr. 04, 2014 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Cash equivalents | $1,337 | $2,087 |
Foreign currency forward contracts | 51 | 40 |
Total assets measured at fair value on a recurring basis | 1,388 | 2,127 |
Level 1 [Member] | ' | ' |
Assets: | ' | ' |
Cash equivalents | 1,337 | 2,087 |
Foreign currency forward contracts | ' | ' |
Total assets measured at fair value on a recurring basis | 1,337 | 2,087 |
Level 2 [Member] | ' | ' |
Assets: | ' | ' |
Cash equivalents | ' | ' |
Foreign currency forward contracts | 51 | 40 |
Total assets measured at fair value on a recurring basis | 51 | 40 |
Level 3 [Member] | ' | ' |
Assets: | ' | ' |
Cash equivalents | ' | ' |
Foreign currency forward contracts | ' | ' |
Total assets measured at fair value on a recurring basis | ' | ' |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | ||||||
Jul. 04, 2014 | Jul. 04, 2014 | Apr. 04, 2014 | Jul. 04, 2014 | Apr. 04, 2014 | Jul. 04, 2014 | Apr. 04, 2014 | |
2020 Notes [Member] | 2020 Notes [Member] | Level 2 [Member] | Level 2 [Member] | Level 1 [Member] | Level 1 [Member] | ||
Satellite Performance Incentives Obligation [Member] | Satellite Performance Incentives Obligation [Member] | 2020 Notes [Member] | 2020 Notes [Member] | ||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Fair value of senior notes | ' | ' | ' | ' | ' | $622,400,000 | $616,700,000 |
Principal amount of senior notes issued | ' | 575,000,000 | 575,000,000 | ' | ' | ' | ' |
Interest on in-orbit satellite performance incentive obligation | 7.00% | ' | ' | ' | ' | ' | ' |
Period of in-orbit satellite performance incentive obligation including interest | '15 years | ' | ' | ' | ' | ' | ' |
Satellite performance incentives obligation and accrued interest | ' | ' | ' | $22,500,000 | $22,600,000 | ' | ' |
Shares_Used_In_Computing_Dilut1
Shares Used In Computing Diluted Net Loss Per Share - Additional Information (Detail) | 3 Months Ended | |
Jul. 04, 2014 | Jun. 28, 2013 | |
Employee Stock Options [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive shares | 910,338 | 880,132 |
Restricted Stock Units [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive shares | 458,801 | 576,238 |
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 | 165,341 | 139,793 |
Goodwill_and_Acquired_Intangib2
Goodwill and Acquired Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | |
Jul. 04, 2014 | Jun. 28, 2013 | |
Goodwill And Other Intangible Asset [Line Items] | ' | ' |
Change in goodwill | $34,300,000 | ' |
Amortization of acquired intangible assets | 4,029,000 | 3,501,000 |
Government Systems [Member] | ' | ' |
Goodwill And Other Intangible Asset [Line Items] | ' | ' |
Amortization of acquired intangible assets | 921,000 | 593,000 |
Minimum [Member] | ' | ' |
Goodwill And Other Intangible Asset [Line Items] | ' | ' |
Other acquired intangible assets estimated useful lives | '2 years | ' |
Maximum [Member] | ' | ' |
Goodwill And Other Intangible Asset [Line Items] | ' | ' |
Other acquired intangible assets estimated useful lives | '10 years | ' |
NetNearU [Member] | Government Systems [Member] | ' | ' |
Goodwill And Other Intangible Asset [Line Items] | ' | ' |
Change in goodwill related to an acquisition | $34,100,000 | ' |
Goodwill_and_Acquired_Intangib3
Goodwill and Acquired Intangible Assets - Expected Amortization Expense for Acquired Intangible Assets (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 04, 2014 | Jun. 28, 2013 | Apr. 04, 2014 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' | ' |
For the three months ended July 4, 2014 | $4,029 | $3,501 | ' |
Expected for the remainder of fiscal year 2015 | 14,063 | ' | ' |
Expected for fiscal year 2016 | 15,087 | ' | ' |
Expected for fiscal year 2017 | 7,719 | ' | ' |
Expected for fiscal year 2018 | 6,386 | ' | ' |
Expected for fiscal year 2019 | 3,889 | ' | ' |
Thereafter | 8,962 | ' | ' |
Other acquired intangible assets, net | $56,106 | ' | $35,397 |
Senior_Notes_and_Other_LongTer2
Senior Notes and Other Long-Term Debt - Components of Long-Term Debt (Detail) (USD $) | Jul. 04, 2014 | Apr. 04, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Unamortized premium on the 2020 Notes | $8,567 | $8,861 |
Total senior notes, net of premium | 583,567 | 583,861 |
Less: current portion of the senior notes | ' | ' |
Total senior notes long-term, net | 583,567 | 583,861 |
Other Long-Term Debt | ' | ' |
Revolving credit facility | 205,000 | 105,000 |
Other | 2,615 | 2,756 |
Total other long-term debt | 207,615 | 107,756 |
Total other long-term debt | 207,615 | 107,756 |
Less: current portion of other long-term debt | 1,783 | 1,856 |
Other long-term debt, net | 205,832 | 105,900 |
Total debt | 791,182 | 691,617 |
Less: current portion | 1,783 | 1,856 |
Long-term debt, net | 789,399 | 689,761 |
2020 Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Principal amounts of Senior Notes issued | $575,000 | $575,000 |
Senior_Notes_and_Other_LongTer3
Senior Notes and Other Long-Term Debt - Additional Information (Detail) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||
Jul. 04, 2014 | Apr. 04, 2014 | Jul. 04, 2014 | Jul. 04, 2014 | Jul. 04, 2014 | Jul. 04, 2014 | Jul. 04, 2014 | Jul. 04, 2014 | Jul. 04, 2014 | Jul. 04, 2014 | Feb. 27, 2012 | Oct. 12, 2012 | Jul. 04, 2014 | Apr. 04, 2014 | |
Revolving credit facility [Member] | Letter of credit [Member] | Early Period Redemption [Member] | Debt Instrument, Redemption, Period One [Member] | Debt Instrument, Redemption, Period Two [Member] | Debt Instrument, Redemption, Period Three [Member] | Debt Instrument, Redemption, Period Four [Member] | Change of control [Member] | Initial 2020 Notes [Member] | Additional 2020 Notes [Member] | 2020 Notes [Member] | 2020 Notes [Member] | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit Facility maximum borrowing capacity | $500,000,000 | ' | ' | $150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date of credit facility | 26-Nov-18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit Facility interest rate description | ' | ' | 'Borrowings under the Credit Facility bear interest, at the Companybs option, at either (1) the highest of the Federal Funds rate plus 0.50%, the Eurodollar rate plus 1.00%, or the administrative agentbs prime rate as announced from time to time, or (2) the Eurodollar rate, plus, in the case of each of (1) and (2), an applicable margin that is based on the Companybs total leverage ratio. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average effective interest rate on the Company's outstanding borrowings | ' | ' | 2.16% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit Facility revolving credit description | ' | ' | 'The Credit Facility contains financial covenants regarding a maximum total leverage ratio and a minimum interest coverage ratio. In addition, the 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. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing availability under the Credit Facility | 255,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Standby letters of credit outstanding amount | 39,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount of outstanding borrowings under the Credit Facility | 205,000,000 | 105,000,000 | 205,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amounts of Senior Notes issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 275,000,000 | 300,000,000 | 575,000,000 | 575,000,000 |
Original issue premium | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 103.50% | ' | ' |
Interest rate at which the Notes bear interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.88% | ' |
Senior Notes due date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Jun-20 | ' |
Unamortized premium on the 2020 Notes | $8,567,000 | $8,861,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,500,000 | ' | ' |
Redemption price percentage | ' | ' | ' | ' | 106.88% | 100.00% | 103.44% | 101.72% | 100.00% | 101.00% | ' | ' | ' | ' |
Redemption description | ' | ' | ' | ' | 'Prior to June 15, 2015, the Company may redeem up to 35% of the 2020 Notes at a redemption price of 106.875% 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 2020 Notes prior to June 15, 2016, in whole or in part, at a redemption price equal to 100% of the principal amount thereof plus the applicable premium and any accrued and unpaid interest, if any, thereon to the redemption date. The applicable premium is calculated as the greater of: (i) 1.0% of the principal amount of such 2020 Notes and (ii) the excess, if any, of (a) the present value at such date of redemption of (1) the redemption price of such 2020 Notes on June 15, 2016 plus (2) all required interest payments due on such 2020 Notes through June 15, 2016 (excluding accrued but unpaid interest to the date of redemption), computed using a discount rate equal to the treasury rate (as defined under the indenture) plus 50 basis points, over (b) the then-outstanding principal amount of such 2020 Notes. | 'The 2020 Notes may be redeemed, in whole or in part, at any time during the twelve months beginning on June 15, 2016 at a redemption price of 103.438% | 'During the twelve months beginning on June 15, 2017 at a redemption price of 101.719% | 'And at any time on or after June 15, 2018 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 occurs (as defined in the indenture), each holder will have the right to require the Company to repurchase all or any part of such holder's 2020 Notes at a purchase price in cash equal to 101% of the aggregate principal amount of the 2020 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). | ' | ' | ' | ' |
Product_Warranty_Additional_In
Product Warranty - Additional Information (Detail) | 3 Months Ended |
Jul. 04, 2014 | |
Product Warranty Liability [Abstract] | ' |
Maximum warranty periods provided on limited warranty | '5 years |
Product_Warranty_Change_in_Com
Product Warranty - Change in Company's Warranty Accrual (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jul. 04, 2014 | Jun. 28, 2013 |
Product Warranty Liability [Abstract] | ' | ' |
Balance, beginning of period | $17,023 | $14,107 |
Change in liability for warranties issued in period | 1,716 | 2,130 |
Settlements made (in cash or in kind) during the period | -1,844 | -1,508 |
Balance, end of period | $16,895 | $14,729 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Apr. 24, 2014 | Jul. 04, 2014 | Apr. 04, 2014 | 31-May-13 |
Construction in Progress Satellite ViaSat-2 [Member] | ||||
Capital Addition Purchase Commitments [Member] | ||||
Loss Contingencies [Line Items] | ' | ' | ' | ' |
Purchase price under agreement | ' | ' | ' | $358 |
Amount awarded in damages for patent infringement and breach of contract | 283 | ' | ' | ' |
Total U.S. government contract-related reserves balance | ' | $6.70 | $6.70 | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Jul. 04, 2014 |
Income Tax Disclosure [Abstract] | ' |
Valuation allowance on state net operating loss carryforwards increase (decrease) | $0.70 |
Increase (decrease) in gross unrecognized tax benefits | 0.6 |
Reasonably possible decrease in unrecognized tax benefits in the next twelve months | $0 |
Acquisition_Additional_Informa
Acquisition - Additional Information (Detail) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | |
Jul. 04, 2014 | Jun. 28, 2013 | Jun. 06, 2014 | Jul. 04, 2014 | |
NetNearU [Member] | NetNearU [Member] | |||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Purchase price | ' | ' | $59,900,000 | ' |
Preliminary cash acquired | ' | ' | 4,100,000 | ' |
Payments related to acquisition of businesses, preliminary net of cash acquired | 56,545,000 | 2,400,000 | 55,800,000 | ' |
Total merger-related transaction costs incurred by the Company | ' | ' | ' | $400,000 |
Acquisition_The_Preliminary_Es
Acquisition - The Preliminary Estimated Purchase Price Allocation of the Acquired Assets and Assumed Liabilities Based on the Estimated Fair Values (Detail) (USD $) | Jul. 04, 2014 | Apr. 04, 2014 | Jun. 06, 2014 |
In Thousands, unless otherwise specified | NetNearU [Member] | ||
Business Acquisition [Line Items] | ' | ' | ' |
Current assets | ' | ' | $8,482 |
Property and equipment | ' | ' | 1,087 |
Identifiable intangible assets | ' | ' | 24,310 |
Goodwill | 117,930 | 83,627 | 34,065 |
Total assets acquired | ' | ' | 67,944 |
Current liabilities | ' | ' | -5,305 |
Other long-term liabilities | ' | ' | -2,716 |
Total liabilities assumed | ' | ' | -8,021 |
Total purchase price | ' | ' | $59,923 |
Acquisition_Amounts_Assigned_t
Acquisition - Amounts Assigned to Identifiable Intangible Assets and Estimated Weighted Average Useful Lives (Detail) (USD $) | 3 Months Ended | 0 Months Ended | ||||
In Thousands, unless otherwise specified | Jul. 04, 2014 | Jun. 06, 2014 | Jun. 06, 2014 | Jun. 06, 2014 | Jun. 06, 2014 | Jun. 06, 2014 |
Trade name [Member] | NetNearU [Member] | NetNearU [Member] | NetNearU [Member] | NetNearU [Member] | NetNearU [Member] | |
Technology [Member] | Customer relationships [Member] | Non-compete agreements [Member] | Trade name [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' |
Fair Value identifiable intangible assets | ' | $24,310 | $10,970 | $10,950 | $2,130 | $260 |
Estimated weighted average life | '3 years | '8 years | '7 years | '9 years | '2 years | '2 years |
Segment_Information_Segment_Re
Segment Information - Segment Revenues, Operating (Losses) Profits and Assets (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 04, 2014 | Jun. 28, 2013 | Apr. 04, 2014 |
Revenues: | ' | ' | ' |
Product revenues | $168,129 | $182,161 | ' |
Service revenues | 151,342 | 138,941 | ' |
Total revenues | 319,471 | 321,102 | ' |
Operating (losses) profits: | ' | ' | ' |
Amortization of acquired intangible assets | -4,029 | -3,501 | ' |
(Loss) income from operations | -1,169 | 3,424 | ' |
Assets | ' | ' | ' |
Total assets | 2,056,280 | ' | 1,960,115 |
Satellite Services [Member] | ' | ' | ' |
Operating (losses) profits: | ' | ' | ' |
Amortization of acquired intangible assets | -2,765 | -2,765 | ' |
Commercial Networks [Member] | ' | ' | ' |
Operating (losses) profits: | ' | ' | ' |
Amortization of acquired intangible assets | -343 | -143 | ' |
Government Systems [Member] | ' | ' | ' |
Operating (losses) profits: | ' | ' | ' |
Amortization of acquired intangible assets | -921 | -593 | ' |
Operating Segments [Member] | ' | ' | ' |
Operating (losses) profits: | ' | ' | ' |
(Loss) income from operations | 2,860 | 6,925 | ' |
Assets | ' | ' | ' |
Total assets | 581,070 | ' | 509,685 |
Operating Segments [Member] | Satellite Services [Member] | ' | ' | ' |
Revenues: | ' | ' | ' |
Product revenues | 30 | 16 | ' |
Service revenues | 109,685 | 85,831 | ' |
Total revenues | 109,715 | 85,847 | ' |
Operating (losses) profits: | ' | ' | ' |
(Loss) income from operations | -1,949 | -12,978 | ' |
Assets | ' | ' | ' |
Total assets | 77,543 | ' | 73,382 |
Operating Segments [Member] | Commercial Networks [Member] | ' | ' | ' |
Revenues: | ' | ' | ' |
Product revenues | 88,592 | 91,824 | ' |
Service revenues | 3,636 | 5,575 | ' |
Total revenues | 92,228 | 97,399 | ' |
Operating (losses) profits: | ' | ' | ' |
(Loss) income from operations | -5,990 | 3,336 | ' |
Assets | ' | ' | ' |
Total assets | 245,171 | ' | 229,455 |
Operating Segments [Member] | Government Systems [Member] | ' | ' | ' |
Revenues: | ' | ' | ' |
Product revenues | 79,507 | 90,321 | ' |
Service revenues | 38,021 | 47,535 | ' |
Total revenues | 117,528 | 137,856 | ' |
Operating (losses) profits: | ' | ' | ' |
(Loss) income from operations | 10,799 | 16,567 | ' |
Assets | ' | ' | ' |
Total assets | 258,356 | ' | 206,848 |
Intersegment Elimination [Member] | ' | ' | ' |
Revenues: | ' | ' | ' |
Total revenues | ' | ' | ' |
Operating (losses) profits: | ' | ' | ' |
(Loss) income from operations | ' | ' | ' |
Corporate, Non-Segment [Member] | ' | ' | ' |
Operating (losses) profits: | ' | ' | ' |
(Loss) income from operations | ' | ' | ' |
Assets | ' | ' | ' |
Total assets | 1,475,210 | ' | 1,450,430 |
Material Reconciling Items [Member] | ' | ' | ' |
Operating (losses) profits: | ' | ' | ' |
Amortization of acquired intangible assets | ($4,029) | ($3,501) | ' |
Segment_Information_Other_Net_
Segment Information - Other Net Acquired Intangible Assets and Goodwill Included in Segment Assets (Detail) (USD $) | Jul. 04, 2014 | Apr. 04, 2014 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Other acquired intangible assets, net | $56,106 | $35,397 |
Goodwill | 117,930 | 83,627 |
Operating Segments [Member] | Satellite Services [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Other acquired intangible assets, net | 26,166 | 28,931 |
Goodwill | 9,809 | 9,809 |
Operating Segments [Member] | Commercial Networks [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Other acquired intangible assets, net | 2,552 | 2,583 |
Goodwill | 44,143 | 44,148 |
Operating Segments [Member] | Government Systems [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Other acquired intangible assets, net | 27,388 | 3,883 |
Goodwill | $63,978 | $29,670 |
Segment_Information_Amortizati
Segment Information - Amortization of Acquired Intangible Assets by Segment (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jul. 04, 2014 | Jun. 28, 2013 |
Segment Reporting Information [Line Items] | ' | ' |
Amortization of acquired intangible assets | $4,029 | $3,501 |
Satellite Services [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Amortization of acquired intangible assets | 2,765 | 2,765 |
Commercial Networks [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Amortization of acquired intangible assets | 343 | 143 |
Government Systems [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Amortization of acquired intangible assets | $921 | $593 |