Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2016 | Jul. 29, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | VSAT | |
Entity Registrant Name | VIASAT INC | |
Entity Central Index Key | 797,721 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 49,286,977 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 47,252 | $ 42,088 |
Accounts receivable, net | 262,670 | 286,724 |
Inventories | 155,511 | 145,161 |
Prepaid expenses and other current assets | 53,453 | 47,583 |
Total current assets | 518,886 | 521,556 |
Other acquired intangible assets, net | 31,039 | 33,604 |
Goodwill | 116,560 | 117,040 |
Other assets | 361,867 | 340,005 |
Total assets | 2,491,249 | 2,397,312 |
Current liabilities: | ||
Accounts payable | 94,413 | 95,645 |
Accrued liabilities | 156,894 | 184,344 |
Total current liabilities | 251,307 | 279,989 |
Senior notes, net | 575,330 | 575,304 |
Other long-term debt, net | 458,730 | 370,224 |
Other liabilities | 37,928 | 37,371 |
Total liabilities | 1,323,295 | 1,262,888 |
Commitments and contingencies (Note 8) | ||
ViaSat, Inc. stockholders' equity | ||
Common stock | 5 | 5 |
Paid-in capital | 887,637 | 855,387 |
Retained earnings | 275,559 | 273,704 |
Accumulated other comprehensive (loss) income | (857) | 7 |
Total ViaSat, Inc. stockholders' equity | 1,162,344 | 1,129,103 |
Noncontrolling interest in subsidiary | 5,610 | 5,321 |
Total equity | 1,167,954 | 1,134,424 |
Total liabilities and equity | 2,491,249 | 2,397,312 |
Property Plant and Equipment - Satellites [Member] | ||
Current assets: | ||
Property and equipment, net | 961,252 | 898,197 |
Property Plant and Equipment - Excluding Satellites [Member] | ||
Current assets: | ||
Property and equipment, net | $ 501,645 | $ 486,910 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues: | ||
Product revenues | $ 160,676 | $ 168,348 |
Service revenues | 202,454 | 176,030 |
Total revenues | 363,130 | 344,378 |
Operating expenses: | ||
Cost of product revenues | 120,680 | 125,830 |
Cost of service revenues | 127,582 | 117,609 |
Selling, general and administrative | 79,400 | 71,107 |
Independent research and development | 25,177 | 15,608 |
Amortization of acquired intangible assets | 2,513 | 4,810 |
Income from operations | 7,778 | 9,414 |
Other income (expense): | ||
Interest income | 323 | 696 |
Interest expense | (5,134) | (6,584) |
Income before income taxes | 2,967 | 3,526 |
Provision for income taxes | 810 | 1,007 |
Net income | 2,157 | 2,519 |
Less: Net income (loss) attributable to the noncontrolling interest, net of tax | 302 | (89) |
Net income attributable to ViaSat, Inc. | $ 1,855 | $ 2,608 |
Basic net income per share attributable to ViaSat, Inc. common stockholders | $ 0.04 | $ 0.05 |
Diluted net income per share attributable to ViaSat, Inc. common stockholders | $ 0.04 | $ 0.05 |
Shares used in computing basic net income per share | 49,133 | 47,918 |
Shares used in computing diluted net income per share | 50,170 | 48,840 |
Comprehensive income: | ||
Net income | $ 2,157 | $ 2,519 |
Other comprehensive (loss) income, net of tax: | ||
Unrealized (loss) gain on hedging, net of tax | (100) | 114 |
Foreign currency translation adjustments, net of tax | (764) | 867 |
Other comprehensive (loss) income, net of tax | (864) | 981 |
Comprehensive income | 1,293 | 3,500 |
Less: comprehensive income (loss) attributable to the noncontrolling interest, net of tax | 302 | (89) |
Comprehensive income attributable to ViaSat, Inc. | $ 991 | $ 3,589 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 2,157 | $ 2,519 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 49,772 | 46,205 |
Amortization of intangible assets | 10,226 | 11,106 |
Deferred income taxes | (183) | 1,100 |
Stock-based compensation expense | 12,761 | 10,709 |
Loss on disposition of fixed assets | 8,088 | 9,599 |
Other non-cash adjustments | 2,761 | 2,453 |
Increase (decrease) in cash resulting from changes in operating assets and liabilities, net of effects of acquisition: | ||
Accounts receivable | 21,938 | (30,165) |
Inventories | (11,737) | (3,117) |
Other assets | (8,835) | (4,643) |
Accounts payable | (18,340) | (3,391) |
Accrued liabilities | (7,636) | (23,042) |
Other liabilities | 1,146 | (1,347) |
Net cash provided by operating activities | 62,118 | 17,986 |
Cash flows from investing activities: | ||
Purchase of property, equipment and satellites | (120,577) | (65,954) |
Cash paid for patents, licenses and other assets | (21,003) | (17,145) |
Payments related to acquisition of business, net of cash acquired | (3,613) | |
Other investing activities | (504) | |
Net cash used in investing activities | (142,084) | (86,712) |
Cash flows from financing activities: | ||
Payment of debt issuance costs | (6,322) | (803) |
Proceeds from issuance of common stock under equity plans | 6,709 | 5,170 |
Purchase of common stock in treasury (immediately retired) related to tax withholdings for stock-based compensation | (1,937) | (531) |
Other financing activities | (376) | (372) |
Net cash provided by financing activities | 85,310 | 58,759 |
Effect of exchange rate changes on cash | (180) | 198 |
Net increase (decrease) in cash and cash equivalents | 5,164 | (9,769) |
Cash and cash equivalents at beginning of period | 42,088 | 52,263 |
Cash and cash equivalents at end of period | 47,252 | 42,494 |
Non-cash investing and financing activities: | ||
Issuance of common stock in satisfaction of certain accrued employee compensation liabilities | 13,080 | 11,609 |
Capital expenditures not paid for | 21,798 | 8,566 |
Revolving Credit Facility [Member] | ||
Cash flows from financing activities: | ||
Proceeds from credit facility borrowings | 20,000 | 85,000 |
Payments of revolving credit facility borrowings | (70,000) | |
Ex-Im Credit Facility [Member] | ||
Cash flows from financing activities: | ||
Proceeds from credit facility borrowings | 67,236 | $ 40,295 |
Non-cash investing and financing activities: | ||
Exposure fees on Ex-Im credit facility expected to be financed through Ex-Im credit facility | $ 7,382 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Equity (Unaudited) - 3 months ended Jun. 30, 2016 - USD ($) $ in Thousands | Total | Common Stock [Member] | Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest in Subsidiary [Member] |
Beginning balance at Mar. 31, 2016 | $ 1,134,424 | $ 5 | $ 855,387 | $ 273,704 | $ 7 | $ 5,321 |
Beginning balance, shares at Mar. 31, 2016 | 48,926,417 | |||||
Exercise of stock options | 1,817 | 1,817 | ||||
Exercise of stock options, shares | 35,975 | |||||
Issuance of stock under Employee Stock Purchase Plan | 4,892 | 4,892 | ||||
Issuance of stock under Employee Stock Purchase Plan, shares | 94,339 | |||||
Stock-based compensation | 14,398 | 14,398 | ||||
Shares issued in settlement of certain accrued employee compensation liabilities | 13,080 | 13,080 | ||||
Shares issued in settlement of certain accrued employee compensation liabilities, shares | 176,731 | |||||
RSU awards vesting, net of shares withheld for taxes which have been retired | (1,937) | (1,937) | ||||
RSU awards vesting, net of shares withheld for taxes which have been retired, shares | 45,985 | |||||
Other noncontrolling interest activity | (13) | (13) | ||||
Net income | 2,157 | 1,855 | 302 | |||
Other comprehensive (loss) income, net of tax | (864) | (864) | ||||
Ending balance at Jun. 30, 2016 | $ 1,167,954 | $ 5 | $ 887,637 | $ 275,559 | $ (857) | $ 5,610 |
Ending balance, shares at Jun. 30, 2016 | 49,279,447 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1 — Basis of Presentation The accompanying condensed consolidated balance sheet at June 30, 2016, the condensed consolidated statements of operations and comprehensive income for the three months ended June 30, 2016 and 2015, the condensed consolidated statements of cash flows for the three months ended June 30, 2016 and 2015 and the condensed consolidated statement of equity for the three months ended June 30, 2016 have been prepared by the management of ViaSat, Inc. (also referred to hereafter as the Company or ViaSat), and have not been audited. These financial statements have been prepared on the same basis as the audited consolidated financial statements for the fiscal year ended March 31, 2016 and, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the Company’s results for the periods presented. These financial statements should be read in conjunction with the financial statements and notes thereto for the fiscal year ended March 31, 2016 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. During the first quarter of fiscal year 2016, the Company completed the acquisition of Engreen Inc. (Engreen), a privately held company focused on network function virtualization. The Engreen purchase price of approximately $5.3 million (of which $0.5 million has been withheld as security for any indemnifiable damages) was primarily allocated to acquired technology intangible assets and the assumption of certain liabilities. This acquisition was accounted for as a purchase and, accordingly, the condensed consolidated financial statements include the operating results of Engreen from the date of acquisition. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting period. Estimates have been prepared on the basis of the most current and best available information and actual results could differ from those estimates. Significant estimates made by management include revenue recognition, stock-based compensation, 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 June 30, 2016 and 2015, the Company recorded losses of approximately $0.4 million and $1.4 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’s, 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 2016. As of June 30, 2016, the DCAA had completed its incurred cost audit for fiscal year 2004 and approved the Company’s incurred cost claims for fiscal years 2005 through 2015 without further audit. Although the Company has recorded contract revenues subsequent to fiscal year 2015 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 June 30, 2016 and March 31, 2016, the Company had $2.4 million and $2.5 million, respectively, in contract-related reserves for its estimate of potential refunds to customers for potential cost adjustments on several multi-year U.S. government cost reimbursable contracts (see Note 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 (SG&A) expenses. Advertising expenses for the three months ended June 30, 2016 and 2015 were $0.8 million and $3.7 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 earth stations, network operations systems and other assets to support its satellites, and those construction costs, including interest, are capitalized as incurred. At the time satellites are placed in service, the Company estimates the useful life of its satellites for depreciation purposes based upon an analysis of each satellite’s performance against the original manufacturer’s orbital design life, estimated fuel levels and related consumption rates, as well as historical satellite operating trends. The Company 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, which for the periods presented, primarily related to losses incurred for unreturned customer premise equipment (CPE). 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), and the ViaSat-3 class satellites (which commenced construction during the fourth quarter of fiscal year 2016), the Company capitalized $10.2 million and $6.1 million of interest expense for the three months ended June 30, 2016 and 2015, respectively. The Company owns two satellites: ViaSat-1 (its first-generation 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 addition, three additional satellites are under construction: the ViaSat-2 satellite (the Company’s second-generation high-capacity Ka-band satellite design) and two ViaSat-3 class satellites (the Company’s third-generation high-capacity Ka-band satellite design). The Company expects that the ViaSat-2 satellite will be launched during fiscal year 2017 and that the two ViaSat-3 class satellites will be launched in fiscal year 2020 or early fiscal year 2021. The Company also 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 earth stations 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 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, earth stations and networking equipment, CPE units and related installation costs over their estimated useful lives. The total cost and accumulated depreciation of CPE units included in property and equipment, net, as of June 30, 2016 were $264.0 million and $143.2 million, respectively. The total cost and accumulated depreciation of CPE units included in property and equipment, net, as of March 31, 2016 were $260.4 million and $136.4 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 June 30, 2016 and March 31, 2016. The Company capitalized costs of $15.4 million related to acquiring and obtaining orbital slots and other licenses included in other assets as of June 30, 2016 and March 31, 2016. Accumulated amortization related to these assets was $1.8 million and $1.7 million as of June 30, 2016 and March 31, 2016, respectively. Amortization expense related to these assets was an insignificant amount for the three months ended June 30, 2016 and 2015. 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 June 30, 2016 and 2015, 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 using the effective interest rate method, or, when the results are not materially different, on a straight-line basis over the expected term of the related debt. During the three months ended June 30, 2016 and 2015, $6.1 million and an insignificant amount, respectively, of debt issuance costs were capitalized. Unamortized debt issuance costs related to extinguished debt are expensed at the time the debt is extinguished and recorded in loss on extinguishment of debt in the condensed consolidated statements of operations and comprehensive income. Debt issuance costs related to the Company’s revolving credit facility (the Revolving Credit Facility) are recorded in prepaid expenses and other current assets and in other long-term assets in the condensed consolidated balance sheets in accordance with ASU 2015-15, Interest — Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, which the Company adopted during the first quarter of fiscal year 2017. Debt issuance costs related to the Company’s 6.875% Senior Notes due 2020 (2020 Notes) and the Company’s direct loan facility with the Export-Import Bank of the United States for ViaSat-2 (the Ex-Im Credit Facility) are recorded as a direct deduction from the carrying amount of the related debt, consistent with debt discounts, in accordance with ASU 2015-03, Interest — Imputation of Interest (ASC 835-30): Simplifying the Presentation of Debt Issuance Costs, which the Company adopted during the first quarter of fiscal year 2017. 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 $176.4 million and $163.1 million related to software developed for resale were included in other assets as of June 30, 2016 and March 31, 2016, respectively. The Company capitalized $21.0 million and $16.5 million of costs related to software developed for resale for the three months ended June 30, 2016 and 2015, respectively. Amortization expense for software development costs was $7.7 million and $6.2 million for the three months ended June 30, 2016 and 2015, 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 $3.8 million in accrued liabilities in the condensed consolidated balance sheets as of June 30, 2016 and March 31, 2016, 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 June 30, 2016 and March 31, 2016, 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 As of June 30, 2016 and March 31, 2016, the Company had no shares of common stock held in treasury. During the first three months of fiscal years 2017 and 2016, the Company issued 72,581 and 23,392 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 withheld 26,596 and 8,492 shares of common stock at cost with a total value of $1.9 million and $0.5 million during the first three months of fiscal year 2017 and 2016, respectively. Although shares withheld for employee withholding taxes are technically not issued, they are treated as common stock repurchases for accounting purposes (with such shares deemed to be repurchased and then immediately retired), as they reduce the number of shares that otherwise would have been issued upon vesting of the restricted stock units. These retired shares remain as authorized stock; however they are considered to be unissued. The retirement of treasury stock had no impact on the Company’s total consolidated stockholders’ equity. 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 June 30, 2016 and 2015, the Company settled certain foreign exchange contracts and in connection therewith recognized an insignificant gain 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 insignificant amount recorded as an other current asset as of June 30, 2016 and March 31, 2016. The notional value of foreign currency forward contracts outstanding as of June 30, 2016 and March 31, 2016 was $4.4 million and $5.0 million, respectively. At June 30, 2016, 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 insignificant. The Company’s foreign currency forward contracts outstanding as of June 30, 2016 will mature within approximately fifteen to thirty-six months from their inception. There were no gains or losses from ineffectiveness of these derivative instruments recorded for the three months ended June 30, 2016 and 2015. 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 for the three months ended June 30, 2016 and 2015 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 $12.8 million and $10.7 million of stock-based compensation expense for the three months ended June 30, 2016 and 2015, respectively. For the three months ended June 30, 2016 and 2015, 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 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. For the three months ended June 30, 2016, we used the actual effective year-to-date tax rate in calculating the income tax provision for that period as a reliable estimate of the annual effective tax rate could not be made. A deferred income tax asset or liability is established for the expected future tax consequences resulting from differences in the financial reporting and tax bases of assets and liabilities and for the expected future tax benefit to be derived from tax credit and loss carryforwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Recent authoritative guidance 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 fiscal year 2019, including interim periods within that reporting period, based on the FASB decision in July 2015 (ASU 2015-14, Revenue from Contracts with Customers – Deferral of the Effective Date) to delay the effective date of the new revenue recognition standard by one year, but providing entities a choice to adopt the standard as of the original effective date. In March 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Identifying Performance Obligations and Licensing, which clarifies the implementation guidance on identifying performance obligations and the licensing implementation guidance. In May 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients, which provides practical expedient for contract modifications and clarification on assessing the collectability criterion, presentation of sales taxes, measurement date for noncash consideration and completed contracts at transition. These standards permit the use of either the retrospective or cumulative effect transition method. The Company has not selected a transition method and is currently evaluating the impact these standards will have on its consolidated financial statements and disclosures. In February 2015, the FASB issued ASU 2015-02, Consolidation (ASC 810): Amendments to the Consolidation Analysis. ASU 2015-02 amended the process that a reporting entity must perform to determine |
Composition of Certain Balance
Composition of Certain Balance Sheet Captions | 3 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Composition of Certain Balance Sheet Captions | Note 2 — Composition of Certain Balance Sheet Captions As of June 30, As of March 31, (In thousands) Accounts receivable, net: Billed $ 144,386 $ 146,309 Unbilled 120,181 141,568 Allowance for doubtful accounts (1,897 ) (1,153 ) $ 262,670 $ 286,724 Inventories: Raw materials $ 50,171 $ 46,757 Work in process 31,920 27,200 Finished goods 73,420 71,204 $ 155,511 $ 145,161 Prepaid expenses and other current assets: Prepaid expenses $ 47,987 $ 41,784 Other 5,466 5,799 $ 53,453 $ 47,583 Satellites, net: Satellites (estimated useful life of 10-17 years) $ 559,094 $ 559,094 Capital lease of satellite capacity — Anik F2 (estimated useful life of 10 years) 99,090 99,090 Satellites under construction 591,432 515,696 1,249,616 1,173,880 Less: accumulated depreciation and amortization (288,364 ) (275,683 ) $ 961,252 $ 898,197 Property and equipment, net: Equipment and software (estimated useful life of 2-7 years) $ 594,447 $ 568,663 CPE leased equipment (estimated useful life of 4-5 years) 264,024 260,409 Furniture and fixtures (estimated useful life of 7 years) 28,594 25,501 Leasehold improvements (estimated useful life of 2-17 years) 73,157 71,895 Building (estimated useful life of 24 years) 8,923 8,923 Land 41,960 41,960 Construction in progress 81,881 73,535 1,092,986 1,050,886 Less: accumulated depreciation (591,341 ) (563,976 ) $ 501,645 $ 486,910 Other acquired intangible assets, net: Technology (weighted average useful life of 6 years) $ 74,233 $ 74,848 Contracts and customer relationships (weighted average useful life of 8 years) 99,367 99,499 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 5,940 Other (weighted average useful life of 7 years) 8,700 8,717 196,840 197,604 Less: accumulated amortization (165,801 ) (164,000 ) $ 31,039 $ 33,604 Other assets: Deferred income taxes $ 135,009 $ 134,721 Capitalized software costs, net 176,386 163,061 Patents, orbital slots and other licenses, net 16,800 16,900 Other 33,672 25,323 $ 361,867 $ 340,005 Accrued liabilities: Collections in excess of revenues and deferred revenues $ 64,576 $ 64,624 Accrued employee compensation 17,681 35,056 Accrued vacation 30,065 28,646 Warranty reserve, current portion 8,263 7,867 Current portion of other long-term debt 277 274 Other 36,032 47,877 $ 156,894 $ 184,344 Other liabilities: Deferred revenue, long-term portion $ 5,221 $ 5,470 Deferred rent, long-term portion 9,479 8,808 Warranty reserve, long-term portion 3,894 3,567 Satellite performance incentives obligation, long-term portion 19,334 19,514 Other — 12 $ 37,928 $ 37,371 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2016 | |
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 instrument’s valuation. The following tables present the Company’s hierarchy for its assets measured at fair value on a recurring basis as of June 30, 2016 and March 31, 2016: Fair Value as of Level 1 Level 2 Level 3 (In thousands) Assets: Cash equivalents $ 2,003 $ 2,003 $ — $ — Foreign currency forward contracts 35 — 35 — Total assets measured at fair value on a recurring basis $ 2,038 $ 2,003 $ 35 $ — Fair Value as of Level 1 Level 2 Level 3 (In thousands) Assets: Cash equivalents $ 2,003 $ 2,003 $ — $ — Foreign currency forward contracts 196 — 196 — Total assets measured at fair value on a recurring basis $ 2,199 $ 2,003 $ 196 $ — The following section describes the valuation methodologies the Company uses to measure financial instruments at fair value: Cash equivalents Foreign currency forward contracts Long-term debt Satellite performance incentives obligation |
Shares Used In Computing Dilute
Shares Used In Computing Diluted Net Income Per Share | 3 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Shares Used In Computing Diluted Net Income Per Share | Note 4 — Shares Used In Computing Diluted Net Income Per Share Three Months Ended June 30, 2016 June 30, 2015 (in thousands) Weighted average: Common shares outstanding used in calculating basic net income per share attributable to ViaSat, Inc. common stockholders 49,133 47,918 Options to purchase common stock as determined by application of the treasury stock method 289 346 Restricted stock units to acquire common stock as determined by application of the treasury stock method 564 402 Potentially issuable shares in connection with certain terms of the ViaSat 401(k) Profit Sharing Plan and Employee Stock Purchase Plan 184 174 Shares used in computing diluted net income per share attributable to ViaSat, Inc. common stockholders 50,170 48,840 Antidilutive shares relating to stock options excluded from the calculation comprised 713,863 and 642,841 shares for the three months ended June 30, 2016 and 2015, respectively. Antidilutive shares relating to restricted stock units excluded from the calculation comprised 12,332 and 15 shares for the three months ended June 30, 2016 and 2015, respectively. |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 3 Months Ended |
Jun. 30, 2016 | |
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 2017, the Company’s goodwill decreased by $0.5 million, which related to the effects 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. Amortization expense related to other acquired intangible assets was $2.5 million and $4.8 million for the three months ended June 30, 2016 and 2015, 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 June 30, 2016 $ 2,513 Expected for the remainder of fiscal year 2017 $ 6,834 Expected for fiscal year 2018 8,010 Expected for fiscal year 2019 5,498 Expected for fiscal year 2020 4,465 Expected for fiscal year 2021 3,041 Thereafter 3,191 $ 31,039 |
Senior Notes and Other Long-Ter
Senior Notes and Other Long-Term Debt | 3 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and March 31, 2016: As of As of (In thousands) Senior Notes 2020 Notes $ 575,000 $ 575,000 Unamortized premium and debt issuance costs on the 2020 Notes, net (2) 330 304 Total senior notes, net 575,330 575,304 Less: current portion of the senior notes — — Total senior notes long-term, net 575,330 575,304 Other Long-Term Debt Revolving Credit Facility 200,000 180,000 Ex-Im Credit Facility (1) 292,777 218,157 Unamortized discount and debt issuance costs on the Ex-Im Credit Facility (1) (2) (34,338 ) (28,221 ) Other 568 562 Total other long-term debt, net 459,007 370,498 Less: current portion of other long-term debt, net 277 274 Other long-term debt, net 458,730 370,224 Total debt, net 1,034,337 945,802 Less: current portion 277 274 Long-term debt, net $ 1,034,060 $ 945,528 (1) As of June 30, 2016, included in Ex-Im Credit Facility and in unamortized discount and debt issuance costs on the Ex-Im Credit Facility was $28.4 million and $25.4 million, respectively, relating to the exposure fees accrued as of such date expected to be financed under the Ex-Im Credit Facility. As of March 31, 2016, included in Ex-Im Credit Facility and in unamortized discount and debt issuance costs on the Ex-Im Credit Facility was $21.0 million and $18.7 million, respectively, relating to the exposure fees accrued as of such date expected to be financed under the Ex-Im Credit Facility. (2) During the first quarter of fiscal year 2017, the Company adopted ASU 2015-03. The retrospective basis adoption of this guidance resulted in reclassification of unamortized debt issuance costs as a direct deduction from the carrying amount of the Company’s 2020 Notes and the Ex-Im Credit Facility, respectively, consistent with unamortized discount, as of March 31, 2016. Revolving Credit Facility As of June 30, 2016, the Revolving Credit Facility provided an $800.0 million revolving line of credit (including up to $150.0 million of letters of credit), with a maturity date of May 24, 2021 (or March 16, 2020, if more than $200.0 million of the Company’s 2020 Notes are then outstanding and certain conditions are met). Borrowings under the Revolving 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 June 30, 2016, the weighted average effective interest rate on the Company’s outstanding borrowings under the Revolving Credit Facility was 2.47%. The Company has capitalized certain amounts of interest expense on the Revolving Credit Facility in connection with the construction of various assets during the construction period. The Revolving Credit Facility is required to be guaranteed by certain significant domestic subsidiaries of the Company (as defined in the Revolving Credit Facility) and secured by substantially all of the Company’s and any such subsidiaries’ assets. As of June 30, 2016, none of the Company’s subsidiaries guaranteed the Revolving Credit Facility. The Revolving Credit Facility contains financial covenants regarding a maximum total leverage ratio and a minimum interest coverage ratio. In addition, the Revolving 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 Revolving Credit Facility as of June 30, 2016. At June 30, 2016, the Company had $200.0 million in principal amount of outstanding borrowings under the Revolving Credit Facility and $43.0 million outstanding under standby letters of credit, leaving borrowing availability under the Revolving Credit Facility as of June 30, 2016 of $557.0 million. Ex-Im Credit Facility As of June 30, 2016, the Ex-Im Credit Facility provided a $386.7 million senior secured direct loan facility, $343.1 million of which can be used to finance up to 85% of the costs of construction, launch and insurance of the ViaSat-2 satellite and related goods and services (including costs incurred on or after September 18, 2012), with the remainder used to finance the total exposure fees incurred under the Ex-Im Credit Facility of up to $43.6 million (depending on the total amount of financing borrowed under the Ex-Im Credit Facility). Borrowings under the Ex-Im Credit Facility bear interest at a fixed rate of 2.38% and are required to be repaid in 16 approximately equal semi-annual installments, commencing approximately six months after the in-orbit acceptance date of the ViaSat-2 satellite (or, if earlier, on April 15, 2018), with a maturity date of October 15, 2025. Exposure fees of $6.0 million were incurred in connection with the initial borrowing under the Ex-Im Credit Facility, with the remaining exposure fees payable by the in-orbit acceptance date for ViaSat-2. Exposure fees under the Ex-Im Credit Facility are amortized using the effective interest rate method. The effective interest rate on the Company’s outstanding borrowings under the Ex-Im Credit Facility, which takes into account estimated timing and amount of borrowings, exposure fees, debt issuance costs and other fees, was estimated to be between 4.5% and 4.6% as of June 30, 2016. The Ex-Im Credit Facility is guaranteed by ViaSat and is secured by first-priority liens on the ViaSat-2 satellite and related assets, as well as a pledge of the capital stock of the borrower under the facility. The Ex-Im Credit Facility contains financial covenants regarding ViaSat’s maximum total leverage ratio and minimum interest coverage ratio. In addition, the Ex-Im Credit Facility contains covenants that restrict, among other things, the Company’s ability to sell assets, make investments and acquisitions, make capital expenditures, grant liens, pay dividends and make certain other restricted payments. The Company was in compliance with its financial covenants under the Ex-Im Credit Facility as of June 30, 2016. At June 30, 2016, the Company had $264.4 million in principal amount of outstanding borrowings under the Ex-Im Credit Facility and had accrued $28.4 million in completion exposure fees expected to be financed under the Ex-Im Credit Facility. As of June 30, 2016, the undrawn commitment under the Ex-Im Credit Facility was $93.9 million (excluding $28.4 million of accrued completion exposure fees), of which $84.6 million was available to finance ViaSat-2 related costs once incurred. The borrowings under the Ex-Im Credit Facility were issued with a discount of $35.5 million (comprising the initial $6.0 million exposure fee, the completion exposure fees accrued as of June 30, 2016, and other customary fees). The borrowings under the Ex-Im Credit Facility are recorded as long-term debt, net of unamortized discount and debt issuance costs, in the Company’s condensed consolidated financial statements. The discount and deferred financing cost associated with the issuance of the borrowings under the Ex-Im Credit Facility is amortized to interest expense on an effective interest rate basis over the term of the borrowings under the Ex-Im Credit Facility. 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 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. In October 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 recorded as long-term debt, net of unamortized premium and debt issuance costs, in the Company’s condensed consolidated financial statements. 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 Revolving Credit Facility. As of June 30, 2016, 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 Facilities (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. 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 |
Jun. 30, 2016 | |
Guarantees [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 statements. 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 June 30, 2016 and 2015: Three Months Ended June 30, 2016 June 30, 2015 (In thousands) Balance, beginning of period $ 11,434 $ 15,545 Change in liability for warranties issued in period 2,872 793 Settlements made (in cash or in kind) during the period (2,149 ) (1,915 ) Balance, end of period $ 12,157 $ 14,423 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jun. 30, 2016 | |
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 July 2016, the Company entered into two separate agreements with Boeing for the construction and purchase of two ViaSat-3 class satellites (the Company’s third-generation high-capacity Ka-band satellite design) and the integration of ViaSat’s payload technologies into the satellites at a price of approximately $368.3 million in the aggregate (subject to purchase price adjustments based on factors such as launch delay and early delivery), plus an additional amount for launch support services to be performed by Boeing. In addition, under one of these agreements, the Company has the option to order up to two additional ViaSat-3 class satellites. These agreements supersede the prior limited authorization to proceed, under which the Company’s payment obligations were limited to $89.0 million in the aggregate. The first ViaSat-3 class satellite is expected to provide broadband services over the Americas, and the second is expected to provide broadband services over Europe, Middle East and Africa. From time to time, the Company is involved in a variety of claims, suits, investigations and proceedings arising in the ordinary course of business, including government investigations and claims, and other claims and proceedings with respect to intellectual property, breach of contract, labor and employment, tax and other matters. Such matters could result in fines; penalties, compensatory, treble or other damages; or non-monetary relief. A violation of government contract laws and regulations could also result in the termination of our government contracts or debarment from bidding on future government contracts. Although claims, suits, investigations and proceedings are inherently uncertain and their results cannot be predicted with certainty, the Company believes that the resolution of its current pending matters will not have a material adverse effect on its business, financial condition, results of operations or liquidity. In March 2016, the Company’s majority-owned subsidiary TrellisWare was informed by the Civil Division of the U.S. Attorney’s Office for the Southern District of California that it is investigating TrellisWare’s eligibility for certain prior government contracts and whether TrellisWare’s conduct in connection therewith violated the False Claims Act. At this time, the Company cannot determine whether the government will initiate a case and, if so, whether TrellisWare would be liable for any damages or penalties, or in what amount. Although the outcome of this investigation is difficult to predict, an unfavorable resolution could have a material impact on the Company’s financial results. 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 2016. As of June 30, 2016, the DCAA had completed its incurred cost audit for fiscal year 2004 and approved the Company’s incurred cost claims for fiscal years 2005 through 2015 without further audit. Although the Company has recorded contract revenues subsequent to fiscal year 2015 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 June 30, 2016 and March 31, 2016, the Company had $2.4 million and $2.5 million, respectively, in contract-related reserves for its estimate of potential refunds to customers for potential cost adjustments on several multi-year U.S. government cost reimbursable contracts. This reserve is classified as either an element of accrued liabilities or as a reduction of unbilled accounts receivable based on the status of the related contracts. |
Income Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2016 | |
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 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 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 June 30, 2016, by applying the actual effective tax rate to the year-to-date income for the three-month period. Future realization of existing deferred tax assets 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 which would cause a decrease to income in the period such determination is made. For the three months ended June 30, 2016, the Company’s gross unrecognized tax benefits increased by $1.0 million. In the next twelve months it is reasonably possible that the amount of unrecognized tax benefits will not change significantly. |
Strategic Partnering Arrangemen
Strategic Partnering Arrangements | 3 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Strategic Partnering Arrangements | Note 10 —Strategic Partnering Arrangements In February 2016, the Company entered into a framework and subscription agreement (the Framework Agreement) with Eutelsat, pursuant to which the Company has agreed to enter into a strategic partnering arrangement with Eutelsat to own and operate satellite broadband infrastructure and equipment and provide satellite-based broadband internet services in the European region. The arrangement will consist of two entities coordinating efforts to expand the European broadband market: an entity to be owned 51% by Eutelsat and 49% by the Company following the closing will own and operate Eutelsat’s KA-SAT satellite and related assets and offer wholesale satellite capacity services in the European region; and an entity to be owned 51% by the Company and 49% by Eutelsat following the closing will purchase wholesale satellite capacity services and offer retail satellite-based broadband internet services in the European region. At the closing under the Framework Agreement, Eutelsat will contribute and transfer assets relating to Eutelsat’s existing wholesale satellite broadband business (including its KA-SAT satellite) to a newly formed subsidiary of Eutelsat in exchange for the issuance of new shares in such subsidiary, and following such contribution and issuance, the Company will purchase 49% of the issued shares of Eutelsat’s subsidiary from Eutelsat for €132.5 million and, similarly, Eutelsat will purchase 49% of the issued shares of a second newly formed subsidiary of the Company for an immaterial amount. Also at the closing, the Company and Eutelsat will enter into shareholders’ agreements and other ancillary agreements with respect to the ownership, management and operation of the two entities. The closing of the transactions under the Framework Agreement is subject to customary conditions, including the receipt of required regulatory approvals and third-party consents. The Company currently anticipates that the closing will occur in fiscal year 2017. |
Segment Information
Segment Information | 3 Months Ended |
Jun. 30, 2016 | |
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 satellite-based broadband services to consumers, enterprises, commercial airlines and mobile broadband customers primarily in the United States. The Company’s commercial networks segment develops and offers advanced end-to-end satellite and wireless communication systems, ground networking equipment and space-to-earth connectivity systems, some of which are ultimately used by the Company’s satellite services segment. The Company’s government systems segment develops and offers network-centric, internet protocol (IP)-based fixed and mobile secure government communications systems, products, services and solutions, and provides global mobile broadband service and product offerings. 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 profits (losses) for the three months ended June 30, 2016 and 2015 were as follows: Three Months Ended June 30, 2016 June 30, 2015 (in thousands) Revenues: Satellite services Product (1) $ 6,685 $ 6,276 Service 145,708 126,140 Total 152,393 132,416 Commercial networks Product 58,596 61,511 Service 6,957 5,244 Total 65,553 66,755 Government systems Product 95,395 100,561 Service 49,789 44,646 Total 145,184 145,207 Elimination of intersegment revenues — — Total revenues $ 363,130 $ 344,378 Operating profits (losses): Satellite services (1) $ 30,867 $ 17,041 Commercial networks (38,531 ) (18,733 ) Government systems 17,955 15,916 Elimination of intersegment operating profits — — Segment operating profit before corporate and amortization of acquired intangible assets 10,291 14,224 Corporate — — Amortization of acquired intangible assets (2,513 ) (4,810 ) Income from operations $ 7,778 $ 9,414 (1) Product revenues and operating profits in the satellite services segment for the three months ended June 30, 2016 and 2015 included $6.6 million and $6.2 million, respectively, relating to amounts realized under the Company’s settlement agreement entered into in fiscal year 2015 with Space System Loral, Inc. and its former parent company Loral Space & Communications, Inc. 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, earth stations 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 June 30, 2016 and March 31, 2016 were as follows: As of As of (In thousands) Segment assets: Satellite services $ 60,687 $ 57,529 Commercial networks 184,190 212,943 Government systems 320,645 311,927 Total segment assets 565,522 582,399 Corporate assets 1,925,727 1,814,913 Total assets $ 2,491,249 $ 2,397,312 Other acquired intangible assets, net and goodwill included in segment assets as of June 30, 2016 and March 31, 2016 were as follows: Other Acquired Intangible Goodwill As of As of As of As of (In thousands) Satellite services $ 7,646 $ 8,751 $ 9,809 $ 9,809 Commercial networks 6,137 6,581 43,956 43,990 Government systems 17,256 18,272 62,795 63,241 Total $ 31,039 $ 33,604 $ 116,560 $ 117,040 Amortization of acquired intangible assets by segment for the three months ended June 30, 2016 and 2015 was as follows: Three Months Ended June 30, 2016 June 30, 2015 Satellite services $ 1,104 $ 2,765 Commercial networks 445 496 Government systems 964 1,549 Total amortization of acquired intangible assets $ 2,513 $ 4,810 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Jun. 30, 2016 | |
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. |
Business combinations | This acquisition was accounted for as a purchase and, accordingly, the condensed consolidated financial statements include the operating results of Engreen from the date of acquisition. |
Management estimates and assumptions | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting period. Estimates have been prepared on the basis of the most current and best available information and actual results could differ from those estimates. Significant estimates made by management include revenue recognition, stock-based compensation, 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 June 30, 2016 and 2015, the Company recorded losses of approximately $0.4 million and $1.4 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’s, 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 (SG&A) expenses. Advertising expenses for the three months ended June 30, 2016 and 2015 were $0.8 million and $3.7 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 earth stations, network operations systems and other assets to support its satellites, and those construction costs, including interest, are capitalized as incurred. At the time satellites are placed in service, the Company estimates the useful life of its satellites for depreciation purposes based upon an analysis of each satellite’s performance against the original manufacturer’s orbital design life, estimated fuel levels and related consumption rates, as well as historical satellite operating trends. The Company 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, which for the periods presented, primarily related to losses incurred for unreturned customer premise equipment (CPE). 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), and the ViaSat-3 class satellites (which commenced construction during the fourth quarter of fiscal year 2016), the Company capitalized $10.2 million and $6.1 million of interest expense for the three months ended June 30, 2016 and 2015, respectively. The Company owns two satellites: ViaSat-1 (its first-generation 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 addition, three additional satellites are under construction: the ViaSat-2 satellite (the Company’s second-generation high-capacity Ka-band satellite design) and two ViaSat-3 class satellites (the Company’s third-generation high-capacity Ka-band satellite design). The Company expects that the ViaSat-2 satellite will be launched during fiscal year 2017 and that the two ViaSat-3 class satellites will be launched in fiscal year 2020 or early fiscal year 2021. The Company also 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 earth stations 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 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, earth stations and networking equipment, CPE units and related installation costs over their estimated useful lives. The total cost and accumulated depreciation of CPE units included in property and equipment, net, as of June 30, 2016 were $264.0 million and $143.2 million, respectively. The total cost and accumulated depreciation of CPE units included in property and equipment, net, as of March 31, 2016 were $260.4 million and $136.4 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 June 30, 2016 and March 31, 2016. The Company capitalized costs of $15.4 million related to acquiring and obtaining orbital slots and other licenses included in other assets as of June 30, 2016 and March 31, 2016. Accumulated amortization related to these assets was $1.8 million and $1.7 million as of June 30, 2016 and March 31, 2016, respectively. Amortization expense related to these assets was an insignificant amount for the three months ended June 30, 2016 and 2015. 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 June 30, 2016 and 2015, the Company did not write off any significant costs due to abandonment or impairment. |
Debt issuance costs | Debt issuance costs Debt issuance costs are amortized and recognized as interest expense using the effective interest rate method, or, when the results are not materially different, on a straight-line basis over the expected term of the related debt. During the three months ended June 30, 2016 and 2015, $6.1 million and an insignificant amount, respectively, of debt issuance costs were capitalized. Unamortized debt issuance costs related to extinguished debt are expensed at the time the debt is extinguished and recorded in loss on extinguishment of debt in the condensed consolidated statements of operations and comprehensive income. Debt issuance costs related to the Company’s revolving credit facility (the Revolving Credit Facility) are recorded in prepaid expenses and other current assets and in other long-term assets in the condensed consolidated balance sheets in accordance with ASU 2015-15, Interest — Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, which the Company adopted during the first quarter of fiscal year 2017. Debt issuance costs related to the Company’s 6.875% Senior Notes due 2020 (2020 Notes) and the Company’s direct loan facility with the Export-Import Bank of the United States for ViaSat-2 (the Ex-Im Credit Facility) are recorded as a direct deduction from the carrying amount of the related debt, consistent with debt discounts, in accordance with ASU 2015-03, Interest — Imputation of Interest (ASC 835-30): Simplifying the Presentation of Debt Issuance Costs, which the Company adopted during the first quarter of fiscal year 2017. |
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 $176.4 million and $163.1 million related to software developed for resale were included in other assets as of June 30, 2016 and March 31, 2016, respectively. The Company capitalized $21.0 million and $16.5 million of costs related to software developed for resale for the three months ended June 30, 2016 and 2015, respectively. Amortization expense for software development costs was $7.7 million and $6.2 million for the three months ended June 30, 2016 and 2015, 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 $3.8 million in accrued liabilities in the condensed consolidated balance sheets as of June 30, 2016 and March 31, 2016, 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 June 30, 2016 and March 31, 2016, 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 for the three months ended June 30, 2016 and 2015 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 $12.8 million and $10.7 million of stock-based compensation expense for the three months ended June 30, 2016 and 2015, respectively. For the three months ended June 30, 2016 and 2015, 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 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. For the three months ended June 30, 2016, we used the actual effective year-to-date tax rate in calculating the income tax provision for that period as a reliable estimate of the annual effective tax rate could not be made. A deferred income tax asset or liability is established for the expected future tax consequences resulting from differences in the financial reporting and tax bases of assets and liabilities and for the expected future tax benefit to be derived from tax credit and loss carryforwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. |
Recent authoritative guidance | Recent authoritative guidance In 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 fiscal year 2019, including interim periods within that reporting period, based on the FASB decision in July 2015 (ASU 2015-14, Revenue from Contracts with Customers – Deferral of the Effective Date) to delay the effective date of the new revenue recognition standard by one year, but providing entities a choice to adopt the standard as of the original effective date. In March 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Identifying Performance Obligations and Licensing, which clarifies the implementation guidance on identifying performance obligations and the licensing implementation guidance. In May 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients, which provides practical expedient for contract modifications and clarification on assessing the collectability criterion, presentation of sales taxes, measurement date for noncash consideration and completed contracts at transition. These standards permit the use of either the retrospective or cumulative effect transition method. The Company has not selected a transition method and is currently evaluating the impact these standards will have on its consolidated financial statements and disclosures. In February 2015, the FASB issued ASU 2015-02, Consolidation (ASC 810): Amendments to the Consolidation Analysis. ASU 2015-02 amended the process that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance became effective for the Company beginning in the first quarter of fiscal year 2017 and the guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. In April 2015, the FASB issued ASU 2015-03, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU 2015-15 which provides additional guidance to ASU 2015-03, which did not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. ASU 2015-15 noted that staff of the Securities and Exchange Commission (the SEC) would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. This guidance became effective for the Company beginning in the first quarter of fiscal year 2017 and was applied on a retrospective basis, wherein the condensed consolidated balance sheet of each individual period presented was adjusted to reflect the period-specific effects of applying the new guidance. As a result, the Company reclassed unamortized debt issuance costs related to the Company’s 2020 Notes and the Ex-Im Credit Facility from prepaid expenses and other current assets and from other assets (long-term) to senior notes, net, and other long-term debt, net, respectively, within its condensed consolidated balance sheets as of March 31, 2016. In accordance with ASU 2015-15, the Company has elected to continue to present debt issuance costs related to the Revolving Credit Facility as an asset and subsequently amortize the deferred debt issuance costs over the term of the Revolving Credit Facility arrangement. In April 2015, the FASB issued ASU 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. ASU 2015-11 simplifies the guidance on the subsequent measurement of inventory, excluding inventory measured using last-in, first out or the retail inventory method. Under the new standard, in-scope inventory should be measured at the lower of cost and net realizable value. The new standard should be applied prospectively and will become effective for the Company in fiscal year 2018, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. ASU 2015-16 requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Under current GAAP, the acquirer is required to retrospectively apply adjustments made to provisional amounts recognized in a business combination. This guidance became effective for the Company beginning in the first quarter of fiscal year 2017. The Company adopted this guidance on a prospective basis and the guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Income Taxes (ASU 2015-17), which requires entities to classify deferred tax liabilities and assets as non-current in a classified balance sheet. The new guidance can be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. ASU 2015-17 will become effective for the Company in fiscal year 2018, with early adoption permitted. During the fourth quarter of fiscal year 2016, the Company early adopted this standard retrospectively and reclassified all of its current deferred tax assets to non-current deferred tax assets on its consolidated balance sheets for all periods presented. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10). ASU 2016-01 requires that most equity investments (except those accounted for under the equity method for accounting or those that result in consolidation of the investee) be measured at fair value, with subsequent changes in fair value recognized in net income. The new guidance also impacts financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. The new guidance should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. ASU 2016-01 will become effective for the Company in fiscal year 2019, with early adoption permitted with certain stipulations. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets and eliminates certain real estate-specific provisions. The new guidance will become effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted. ASU 2016-02 will be adopted on a modified retrospective transition basis for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815). ASU 2016-05 clarifies that a change in the counterparty to a derivative instrument, in and of itself, does not require dedesignation of a hedging relationship. The new guidance will become effective for the Company beginning in the first quarter of fiscal year 2018, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815). ASU 2016-06 clarifies the requirements for assessing whether contingent put or call option in a debt instrument qualifies as a separate derivative. The new guidance is required to be applied on a modified retrospective basis to all existing and future debt instruments of the fiscal year for which the amendments are effective. ASU 2016-06 will become effective for the Company beginning in the first quarter of fiscal year 2018, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. In March 2016, the FASB issued ASU 2016-07, Investment — Equity Method and Joint Ventures (Topic 323). ASU 2016-07 eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. ASU 2016-07 will become effective for the Company beginning in the first quarter of fiscal year 2018, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation (Topic 718). ASU 2016-09 simplifies various aspects related to how share-based payments are accounted for and presented in the financial statements. The new guidance will become effective for the Company beginning in fiscal year 2018, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326). ASU 2016-13 requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The new guidance will become effective for the Company beginning in fiscal year 2021, with early adoption permitted. The new guidance is required to be applied on a modified-retrospective basis. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. |
Fair value measurements | In accordance with the authoritative guidance for financial assets and liabilities measured at fair value on a recurring basis (ASC 820), the Company prioritizes the inputs used to measure fair value from market-based assumptions to entity specific assumptions: • Level 1 — Inputs based on quoted market prices for identical assets or liabilities in active markets at the measurement date. • Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Inputs which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation. The following tables present the Company’s hierarchy for its assets measured at fair value on a recurring basis as of June 30, 2016 and March 31, 2016: Fair Value as of Level 1 Level 2 Level 3 (In thousands) Assets: Cash equivalents $ 2,003 $ 2,003 $ — $ — Foreign currency forward contracts 35 — 35 — Total assets measured at fair value on a recurring basis $ 2,038 $ 2,003 $ 35 $ — Fair Value as of Level 1 Level 2 Level 3 (In thousands) Assets: Cash equivalents $ 2,003 $ 2,003 $ — $ — Foreign currency forward contracts 196 — 196 — Total assets measured at fair value on a recurring basis $ 2,199 $ 2,003 $ 196 $ — The following section describes the valuation methodologies the Company uses to measure financial instruments at fair value: Cash equivalents Foreign currency forward contracts Long-term debt Satellite performance incentives obligation |
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. |
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 statements. 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. |
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 Balanc18
Composition of Certain Balance Sheet Captions (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Composition of Certain Balance Sheet Captions | As of June 30, As of March 31, (In thousands) Accounts receivable, net: Billed $ 144,386 $ 146,309 Unbilled 120,181 141,568 Allowance for doubtful accounts (1,897 ) (1,153 ) $ 262,670 $ 286,724 Inventories: Raw materials $ 50,171 $ 46,757 Work in process 31,920 27,200 Finished goods 73,420 71,204 $ 155,511 $ 145,161 Prepaid expenses and other current assets: Prepaid expenses $ 47,987 $ 41,784 Other 5,466 5,799 $ 53,453 $ 47,583 Satellites, net: Satellites (estimated useful life of 10-17 years) $ 559,094 $ 559,094 Capital lease of satellite capacity — Anik F2 (estimated useful life of 10 years) 99,090 99,090 Satellites under construction 591,432 515,696 1,249,616 1,173,880 Less: accumulated depreciation and amortization (288,364 ) (275,683 ) $ 961,252 $ 898,197 Property and equipment, net: Equipment and software (estimated useful life of 2-7 years) $ 594,447 $ 568,663 CPE leased equipment (estimated useful life of 4-5 years) 264,024 260,409 Furniture and fixtures (estimated useful life of 7 years) 28,594 25,501 Leasehold improvements (estimated useful life of 2-17 years) 73,157 71,895 Building (estimated useful life of 24 years) 8,923 8,923 Land 41,960 41,960 Construction in progress 81,881 73,535 1,092,986 1,050,886 Less: accumulated depreciation (591,341 ) (563,976 ) $ 501,645 $ 486,910 Other acquired intangible assets, net: Technology (weighted average useful life of 6 years) $ 74,233 $ 74,848 Contracts and customer relationships (weighted average useful life of 8 years) 99,367 99,499 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 5,940 Other (weighted average useful life of 7 years) 8,700 8,717 196,840 197,604 Less: accumulated amortization (165,801 ) (164,000 ) $ 31,039 $ 33,604 Other assets: Deferred income taxes $ 135,009 $ 134,721 Capitalized software costs, net 176,386 163,061 Patents, orbital slots and other licenses, net 16,800 16,900 Other 33,672 25,323 $ 361,867 $ 340,005 Accrued liabilities: Collections in excess of revenues and deferred revenues $ 64,576 $ 64,624 Accrued employee compensation 17,681 35,056 Accrued vacation 30,065 28,646 Warranty reserve, current portion 8,263 7,867 Current portion of other long-term debt 277 274 Other 36,032 47,877 $ 156,894 $ 184,344 Other liabilities: Deferred revenue, long-term portion $ 5,221 $ 5,470 Deferred rent, long-term portion 9,479 8,808 Warranty reserve, long-term portion 3,894 3,567 Satellite performance incentives obligation, long-term portion 19,334 19,514 Other — 12 $ 37,928 $ 37,371 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on Recurring Basis | The following tables present the Company’s hierarchy for its assets measured at fair value on a recurring basis as of June 30, 2016 and March 31, 2016: Fair Value as of Level 1 Level 2 Level 3 (In thousands) Assets: Cash equivalents $ 2,003 $ 2,003 $ — $ — Foreign currency forward contracts 35 — 35 — Total assets measured at fair value on a recurring basis $ 2,038 $ 2,003 $ 35 $ — Fair Value as of Level 1 Level 2 Level 3 (In thousands) Assets: Cash equivalents $ 2,003 $ 2,003 $ — $ — Foreign currency forward contracts 196 — 196 — Total assets measured at fair value on a recurring basis $ 2,199 $ 2,003 $ 196 $ — |
Shares Used In Computing Dilu20
Shares Used In Computing Diluted Net Income Per Share (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Shares Used in Computing Diluted Net Income Per Share | Three Months Ended June 30, 2016 June 30, 2015 (in thousands) Weighted average: Common shares outstanding used in calculating basic net income per share attributable to ViaSat, Inc. common stockholders 49,133 47,918 Options to purchase common stock as determined by application of the treasury stock method 289 346 Restricted stock units to acquire common stock as determined by application of the treasury stock method 564 402 Potentially issuable shares in connection with certain terms of the ViaSat 401(k) Profit Sharing Plan and Employee Stock Purchase Plan 184 174 Shares used in computing diluted net income per share attributable to ViaSat, Inc. common stockholders 50,170 48,840 |
Goodwill and Acquired Intangi21
Goodwill and Acquired Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Current and 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 June 30, 2016 $ 2,513 Expected for the remainder of fiscal year 2017 $ 6,834 Expected for fiscal year 2018 8,010 Expected for fiscal year 2019 5,498 Expected for fiscal year 2020 4,465 Expected for fiscal year 2021 3,041 Thereafter 3,191 $ 31,039 |
Senior Notes and Other Long-T22
Senior Notes and Other Long-Term Debt (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | Total long-term debt consisted of the following as of June 30, 2016 and March 31, 2016: As of As of (In thousands) Senior Notes 2020 Notes $ 575,000 $ 575,000 Unamortized premium and debt issuance costs on the 2020 Notes, net (2) 330 304 Total senior notes, net 575,330 575,304 Less: current portion of the senior notes — — Total senior notes long-term, net 575,330 575,304 Other Long-Term Debt Revolving Credit Facility 200,000 180,000 Ex-Im Credit Facility (1) 292,777 218,157 Unamortized discount and debt issuance costs on the Ex-Im Credit Facility (1) (2) (34,338 ) (28,221 ) Other 568 562 Total other long-term debt, net 459,007 370,498 Less: current portion of other long-term debt, net 277 274 Other long-term debt, net 458,730 370,224 Total debt, net 1,034,337 945,802 Less: current portion 277 274 Long-term debt, net $ 1,034,060 $ 945,528 (1) As of June 30, 2016, included in Ex-Im Credit Facility and in unamortized discount and debt issuance costs on the Ex-Im Credit Facility was $28.4 million and $25.4 million, respectively, relating to the exposure fees accrued as of such date expected to be financed under the Ex-Im Credit Facility. As of March 31, 2016, included in Ex-Im Credit Facility and in unamortized discount and debt issuance costs on the Ex-Im Credit Facility was $21.0 million and $18.7 million, respectively, relating to the exposure fees accrued as of such date expected to be financed under the Ex-Im Credit Facility. (2) During the first quarter of fiscal year 2017, the Company adopted ASU 2015-03. The retrospective basis adoption of this guidance resulted in reclassification of unamortized debt issuance costs as a direct deduction from the carrying amount of the Company’s 2020 Notes and the Ex-Im Credit Facility, respectively, consistent with unamortized discount, as of March 31, 2016. |
Product Warranty (Tables)
Product Warranty (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Guarantees [Abstract] | |
Change in the Company's Warranty Accrual | The following table reflects the change in the Company’s warranty accrual during the three months ended June 30, 2016 and 2015: Three Months Ended June 30, 2016 June 30, 2015 (In thousands) Balance, beginning of period $ 11,434 $ 15,545 Change in liability for warranties issued in period 2,872 793 Settlements made (in cash or in kind) during the period (2,149 ) (1,915 ) Balance, end of period $ 12,157 $ 14,423 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Revenues and Operating Profits (Losses) | Segment revenues and operating profits (losses) for the three months ended June 30, 2016 and 2015 were as follows: Three Months Ended June 30, 2016 June 30, 2015 (in thousands) Revenues: Satellite services Product (1) $ 6,685 $ 6,276 Service 145,708 126,140 Total 152,393 132,416 Commercial networks Product 58,596 61,511 Service 6,957 5,244 Total 65,553 66,755 Government systems Product 95,395 100,561 Service 49,789 44,646 Total 145,184 145,207 Elimination of intersegment revenues — — Total revenues $ 363,130 $ 344,378 Operating profits (losses): Satellite services (1) $ 30,867 $ 17,041 Commercial networks (38,531 ) (18,733 ) Government systems 17,955 15,916 Elimination of intersegment operating profits — — Segment operating profit before corporate and amortization of acquired intangible assets 10,291 14,224 Corporate — — Amortization of acquired intangible assets (2,513 ) (4,810 ) Income from operations $ 7,778 $ 9,414 (1) Product revenues and operating profits in the satellite services segment for the three months ended June 30, 2016 and 2015 included $6.6 million and $6.2 million, respectively, relating to amounts realized under the Company’s settlement agreement entered into in fiscal year 2015 with Space System Loral, Inc. and its former parent company Loral Space & Communications, Inc. |
Segment Assets | Segment assets as of June 30, 2016 and March 31, 2016 were as follows: As of As of (In thousands) Segment assets: Satellite services $ 60,687 $ 57,529 Commercial networks 184,190 212,943 Government systems 320,645 311,927 Total segment assets 565,522 582,399 Corporate assets 1,925,727 1,814,913 Total assets $ 2,491,249 $ 2,397,312 |
Other Acquired Intangible Assets, Net and Goodwill Included in Segment Assets and Amortization of Acquired Intangible Assets by Segment | Other acquired intangible assets, net and goodwill included in segment assets as of June 30, 2016 and March 31, 2016 were as follows: Other Acquired Intangible Goodwill As of As of As of As of (In thousands) Satellite services $ 7,646 $ 8,751 $ 9,809 $ 9,809 Commercial networks 6,137 6,581 43,956 43,990 Government systems 17,256 18,272 62,795 63,241 Total $ 31,039 $ 33,604 $ 116,560 $ 117,040 Amortization of acquired intangible assets by segment for the three months ended June 30, 2016 and 2015 was as follows: Three Months Ended June 30, 2016 June 30, 2015 Satellite services $ 1,104 $ 2,765 Commercial networks 445 496 Government systems 964 1,549 Total amortization of acquired intangible assets $ 2,513 $ 4,810 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | |
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Forward loss related to loss contracts | $ 400 | $ 1,400 | |
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 Company’s incurred cost audits by the DCAA have not been concluded for fiscal year 2016. As of June 30, 2016, the DCAA had completed its incurred cost audit for fiscal year 2004 and approved the Company’s incurred cost claims for fiscal years 2005 through 2015 without further audit. Although the Company has recorded contract revenues subsequent to fiscal year 2015 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. | ||
Advertising costs | $ 800 | 3,700 | |
Capitalized interest expense | 10,200 | 6,100 | |
Total capitalized costs related to patents | 3,200 | $ 3,200 | |
Total capitalized costs related to orbital slots and other licenses | 15,400 | 15,400 | |
Accumulated amortization of patents, orbital slots and other licenses | 1,800 | 1,700 | |
Capitalized debt issuance costs | $ 6,100 | ||
Minimum [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Property, equipment and satellites, estimated useful life (years) | 2 years | ||
Maximum [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Property, equipment and satellites, estimated useful life (years) | 24 years | ||
Property and Equipment, Net [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment | $ 1,092,986 | 1,050,886 | |
Accumulated depreciation and amortization | $ 591,341 | 563,976 | |
CPE Leased Equipment [Member] | Minimum [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Property, equipment and satellites, estimated useful life (years) | 4 years | ||
CPE Leased Equipment [Member] | Maximum [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Property, equipment and satellites, estimated useful life (years) | 5 years | ||
CPE Leased Equipment [Member] | Property and Equipment, Net [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Property and equipment | $ 264,024 | 260,409 | |
Accumulated depreciation and amortization | 143,200 | 136,400 | |
Engreen [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Purchase price of the acquisition | 5,300 | ||
Purchase price of the acquisition that has been withheld | 500 | ||
Unfavorable Regulatory Action [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
U.S. government contract-related reserves | $ 2,400 | $ 2,500 |
Basis of Presentation - Addit26
Basis of Presentation - Additional Information 1 (Detail) - USD ($) | 3 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | |
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Capitalized costs, net, related to software developed for resale | $ 176,386,000 | $ 163,061,000 | |
Capitalized cost related to software development for resale | 21,000,000 | $ 16,500,000 | |
Amortization expense of software development costs | 7,700,000 | 6,200,000 | |
Self-insurance liability | 3,900,000 | $ 3,800,000 | |
Repurchase and immediate retirement of treasury shares pursuant to vesting of certain RSU agreements | 1,937,000 | ||
Stock-based compensation expense | 12,761,000 | 10,709,000 | |
Employee Stock Options [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Incremental tax benefit from stock options exercised and restricted stock unit awards vesting | 0 | 0 | |
Restricted Stock Units [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Incremental tax benefit from stock options exercised and restricted stock unit awards vesting | $ 0 | $ 0 | |
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 | ||
Common Stock Held in Treasury [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Repurchased shares of common stock held in treasury | 0 | 0 | |
Repurchase and immediate retirement of treasury shares pursuant to vesting of certain RSU agreements, shares | 26,596 | 8,492 | |
Repurchase and immediate retirement of treasury shares pursuant to vesting of certain RSU agreements | $ 1,900,000 | $ 500,000 | |
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 | 72,581 | 23,392 | |
Indemnification Agreement [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Accrued indemnification losses | $ 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 | 4,400,000 | $ 5,000,000 | |
Gains or losses from ineffectiveness of derivative instruments | $ 0 | $ 0 | |
Foreign currency forward contracts maturity, maximum | 36 months | ||
Accounting Standards Update 2015-02 [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Description of new accounting pronouncements | In February 2015, the FASB issued ASU 2015-02, Consolidation (ASC 810) Amendments to the Consolidation Analysis. ASU 2015-02 amended the process that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance became effective for the Company beginning in the first quarter of fiscal year 2017 and the guidance did not have a material impact on the Company's consolidated financial statements and disclosures. | ||
Accounting Standards Update 2015 -11 [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Description of new accounting pronouncements | In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. ASU 2015-11 simplifies the guidance on the subsequent measurement of inventory, excluding inventory measured using last-in, first out or the retail inventory method. Under the new standard, in-scope inventory should be measured at the lower of cost and net realizable value. The new standard should be applied prospectively and will become effective for the Company in fiscal year 2018, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. | ||
Accounting Standards Update 2015-16 [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Description of new accounting pronouncements | In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. ASU 2015-16 requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Under current GAAP, the acquirer is required to retrospectively apply adjustments made to provisional amounts recognized in a business combination. This guidance became effective for the Company beginning in the first quarter of fiscal year 2017. The Company adopted this guidance on a prospective basis and the guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. | ||
Accounting Standards Update 2015-17 [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Description of new accounting pronouncements | In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Income Taxes (ASU 2015-17), which requires entities to classify deferred tax liabilities and assets as non-current in a classified balance sheet. The new guidance can be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. ASU 2015-17 will become effective for the Company in fiscal year 2018, with early adoption permitted. During the fourth quarter of fiscal year 2016, the Company early adopted this standard retrospectively and reclassified all of its current deferred tax assets to non-current deferred tax assets on its consolidated balance sheets for all periods presented. | ||
Accounting Standards Update 2016-01 [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Description of new accounting pronouncements | In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10). ASU 2016-01 requires that most equity investments (except those accounted for under the equity method for accounting or those that result in consolidation of the investee) be measured at fair value, with subsequent changes in fair value recognized in net income. The new guidance also impacts financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. The new guidance should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. ASU 2016-01 will become effective for the Company in fiscal year 2019, with early adoption permitted with certain stipulations. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. | ||
Accounting Standards Update 2016-02 [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Description of new accounting pronouncements | In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets and eliminates certain real estate-specific provisions. The new guidance will become effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted. ASU 2016-02 will be adopted on a modified retrospective transition basis for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. | ||
Accounting Standards Update 2016-05 [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Description of new accounting pronouncements | In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815). ASU 2016-05 clarifies that a change in the counterparty to a derivative instrument, in and of itself, does not require dedesignation of a hedging relationship. The new guidance will become effective for the Company beginning in the first quarter of fiscal year 2018, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. | ||
Accounting Standards Update 2016-06 [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Description of new accounting pronouncements | In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815). ASU 2016-06 clarifies the requirements for assessing whether contingent put or call option in a debt instrument qualifies as a separate derivative. The new guidance is required to be applied on a modified retrospective basis to all existing and future debt instruments of the fiscal year for which the amendments are effective. ASU 2016-06 will become effective for the Company beginning in the first quarter of fiscal year 2018, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. | ||
Accounting Standards Update 2016-07 [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Description of new accounting pronouncements | In March 2016, the FASB issued ASU 2016-07, Investment — Equity Method and Joint Ventures (Topic 323). ASU 2016-07 eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. ASU 2016-07 will become effective for the Company beginning in the first quarter of fiscal year 2018, with early adoption permitted. The Company is currently evaluating the impact of this standard on its 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 fiscal year 2019, including interim periods within that reporting period, based on the FASB decision in July 2015 (ASU 2015-14, Revenue from Contracts with Customers – Deferral of the Effective Date) to delay the effective date of the new revenue recognition standard by one year, but providing entities a choice to adopt the standard as of the original effective date. In March 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Identifying Performance Obligations and Licensing, which clarifies the implementation guidance on identifying performance obligations and the licensing implementation guidance. In May 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients, which provides practical expedient for contract modifications and clarification on assessing the collectability criterion, presentation of sales taxes, measurement date for noncash consideration and completed contracts at transition. These standards permit the use of either the retrospective or cumulative effect transition method. The Company has not selected a transition method and is currently evaluating the impact these standards will have on its consolidated financial statements and disclosures. | ||
Accounting Standards Update 2015-05 [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Description of new accounting pronouncements | In April 2015, the FASB issued ASU 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. ASU 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. This guidance became effective for the Company beginning in the first quarter of fiscal year 2017. The Company elected to adopt this guidance on a prospective basis and the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. | ||
Accounting Standards Update 2015-03 [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Description of new accounting pronouncements | In April 2015, the FASB issued ASU 2015-03, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. | ||
Accounting Standards Update 2015-15 [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Description of new accounting pronouncements | In August 2015, the FASB issued ASU 2015-15 which provides additional guidance to ASU 2015-03, which did not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. ASU 2015-15 noted that staff of the Securities and Exchange Commission (the SEC) would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. This guidance became effective for the Company beginning in the first quarter of fiscal year 2017 and was applied on a retrospective basis, wherein the condensed consolidated balance sheet of each individual period presented was adjusted to reflect the period-specific effects of applying the new guidance. As a result, the Company reclassed unamortized debt issuance costs related to the Company’s 2020 Notes and the Ex-Im Credit Facility from prepaid expenses and other current assets and from other assets (long-term) to senior notes, net, and other long-term debt, net, respectively, within its consolidated balance sheets as of March 31, 2016. In accordance with ASU 2015-15, the Company has elected to continue to present debt issuance costs related to the Revolving Credit Facility as an asset and subsequently amortize the deferred debt issuance costs over the term of the Revolving Credit Facility arrangement. | ||
Accounting Standards Update 2016-09 [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Description of new accounting pronouncements | In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation (Topic 718). ASU 2016-09 simplifies various aspects related to how share-based payments are accounted for and presented in the financial statements. The new guidance will become effective for the Company beginning in fiscal year 2018, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. | ||
Accounting Standards Update 2016-13 [Member] | |||
Company And Summary Of Significant Accounting Policies [Line Items] | |||
Description of new accounting pronouncements | In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326). ASU 2016-13 requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The new guidance will become effective for the Company beginning in fiscal year 2021, with early adoption permitted. The new guidance is required to be applied on a modified-retrospective basis. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. |
Composition of Certain Balanc27
Composition of Certain Balance Sheet Captions - Composition of Certain Balance Sheet Captions (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 |
Accounts receivable, net: | ||
Accounts receivable, Billed | $ 144,386 | $ 146,309 |
Accounts receivable, Unbilled | 120,181 | 141,568 |
Allowance for doubtful accounts | (1,897) | (1,153) |
Accounts receivable, net | 262,670 | 286,724 |
Inventories: | ||
Raw materials | 50,171 | 46,757 |
Work in process | 31,920 | 27,200 |
Finished goods | 73,420 | 71,204 |
Inventories | 155,511 | 145,161 |
Prepaid expenses and other current assets: | ||
Prepaid expenses | 47,987 | 41,784 |
Other | 5,466 | 5,799 |
Prepaid expenses and other current assets | 53,453 | 47,583 |
Other acquired intangible assets, net: | ||
Other acquired intangible assets, gross | 196,840 | 197,604 |
Less: accumulated amortization | (165,801) | (164,000) |
Other acquired intangible assets, net | 31,039 | 33,604 |
Other assets: | ||
Deferred income taxes | 135,009 | 134,721 |
Capitalized software costs, net | 176,386 | 163,061 |
Patents, orbital slots and other licenses, net | 16,800 | 16,900 |
Other | 33,672 | 25,323 |
Other assets | 361,867 | 340,005 |
Accrued liabilities: | ||
Collections in excess of revenues and deferred revenues | 64,576 | 64,624 |
Accrued employee compensation | 17,681 | 35,056 |
Accrued vacation | 30,065 | 28,646 |
Warranty reserve, current portion | 8,263 | 7,867 |
Current portion of other long-term debt | 277 | 274 |
Other | 36,032 | 47,877 |
Accrued liabilities | 156,894 | 184,344 |
Other liabilities: | ||
Deferred revenue, long-term portion | 5,221 | 5,470 |
Deferred rent, long-term portion | 9,479 | 8,808 |
Warranty reserve, long-term portion | 3,894 | 3,567 |
Satellite performance incentives obligation, long-term portion | 19,334 | 19,514 |
Other | 12 | |
Other liabilities | 37,928 | 37,371 |
Technology-Based Intangible Assets [Member] | ||
Other acquired intangible assets, net: | ||
Other acquired intangible assets, gross | 74,233 | 74,848 |
Contracts and Customer Relationships [Member] | ||
Other acquired intangible assets, net: | ||
Other acquired intangible assets, gross | 99,367 | 99,499 |
Satellite Co-Location Rights [Member] | ||
Other acquired intangible assets, net: | ||
Other acquired intangible assets, gross | 8,600 | 8,600 |
Trade Names [Member] | ||
Other acquired intangible assets, net: | ||
Other acquired intangible assets, gross | 5,940 | 5,940 |
Other Intangible Assets [Member] | ||
Other acquired intangible assets, net: | ||
Other acquired intangible assets, gross | 8,700 | 8,717 |
Satellites, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 1,249,616 | 1,173,880 |
Less: accumulated depreciation and amortization | (288,364) | (275,683) |
Property and equipment, net | 961,252 | 898,197 |
Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 1,092,986 | 1,050,886 |
Less: accumulated depreciation and amortization | (591,341) | (563,976) |
Property and equipment, net | 501,645 | 486,910 |
Satellites [Member] | Satellites, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 559,094 | 559,094 |
Capital Lease of Satellite Capacity - Anik F2 [Member] | Satellites, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 99,090 | 99,090 |
Construction in Progress [Member] | Satellites, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 591,432 | 515,696 |
Construction in Progress [Member] | Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 81,881 | 73,535 |
Equipment and Software [Member] | Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 594,447 | 568,663 |
CPE Leased Equipment [Member] | Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 264,024 | 260,409 |
Less: accumulated depreciation and amortization | (143,200) | (136,400) |
Furniture and Fixtures [Member] | Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 28,594 | 25,501 |
Leasehold Improvements [Member] | Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 73,157 | 71,895 |
Building [Member] | Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 8,923 | 8,923 |
Land [Member] | Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | $ 41,960 | $ 41,960 |
Composition of Certain Balanc28
Composition of Certain Balance Sheet Captions - Composition of Certain Balance Sheet Captions (Parenthetical) (Detail) | 3 Months Ended |
Jun. 30, 2016 | |
Technology-Based Intangible Assets [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 Names [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Other acquired intangible assets, weighted average useful life | 3 years |
Other Intangible Assets [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Other acquired intangible assets, weighted average useful life | 7 years |
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 |
Furniture and Fixtures [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 7 years |
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] | Satellites [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 10 years |
Minimum [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] | 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] | 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] | Satellites [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 17 years |
Maximum [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] | 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] | 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 - Asset
Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 |
Assets: | ||
Cash equivalents | $ 2,003 | $ 2,003 |
Foreign currency forward contracts | 35 | 196 |
Total assets measured at fair value on a recurring basis | 2,038 | 2,199 |
Level 1 [Member] | ||
Assets: | ||
Cash equivalents | 2,003 | 2,003 |
Total assets measured at fair value on a recurring basis | 2,003 | 2,003 |
Level 2 [Member] | ||
Assets: | ||
Foreign currency forward contracts | 35 | 196 |
Total assets measured at fair value on a recurring basis | $ 35 | $ 196 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Mar. 31, 2016 | |
2020 Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Principal amount of senior notes issued | $ 575,000 | $ 575,000 |
Satellite Performance Incentives Obligation [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest on in-orbit satellite performance incentive obligation | 7.00% | |
Period of in-orbit satellite performance incentive obligation including interest | 15 years | |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Satellite performance incentives obligation and accrued interest | $ 21,900 | 22,000 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Ex-Im Credit Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long term debt | 293,400 | 219,900 |
Level 1 [Member] | 2020 Notes [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long term debt | $ 593,700 | $ 597,300 |
Shares Used In Computing Dilu31
Shares Used In Computing Diluted Net Income Per Share - Shares Used in Computing Diluted Net Income Per Share (Detail) - shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||
Weighted average common shares outstanding used in calculating basic net income per share attributable to ViaSat, Inc. common stockholders | 49,133 | 47,918 |
Weighted average options to purchase common stock as determined by application of the treasury stock method | 289 | 346 |
Weighted average restricted stock units to acquire common stock as determined by application of the treasury stock method | 564 | 402 |
Weighted average potentially issuable shares in connection with certain terms of the ViaSat 401(k) Profit Sharing Plan and Employee Stock Purchase Plan | 184 | 174 |
Weighted average shares used in computing diluted net income per share attributable to ViaSat, Inc. common stockholders | 50,170 | 48,840 |
Shares Used In Computing Dilu32
Shares Used In Computing Diluted Net Income Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Employee Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares | 713,863 | 642,841 |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive shares | 12,332 | 15 |
Goodwill and Acquired Intangi33
Goodwill and Acquired Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Decrease in goodwill related to foreign currency translation | $ 500 | |
Amortization of acquired intangible assets | $ 2,513 | $ 4,810 |
Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other acquired intangible assets estimated useful lives | 2 years | |
Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other acquired intangible assets estimated useful lives | 10 years |
Goodwill and Acquired Intangi34
Goodwill and Acquired Intangible Assets - Expected Amortization Expense for Acquired Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
For the three months ended June 30, 2016 | $ 2,513 | $ 4,810 | |
Expected for the remainder of fiscal year 2017 | 6,834 | ||
Expected for fiscal year 2018 | 8,010 | ||
Expected for fiscal year 2019 | 5,498 | ||
Expected for fiscal year 2020 | 4,465 | ||
Expected for fiscal year 2021 | 3,041 | ||
Thereafter | 3,191 | ||
Other acquired intangible assets, net | $ 31,039 | $ 33,604 |
Senior Notes and Other Long-T35
Senior Notes and Other Long-Term Debt - Components of Long-Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 |
Senior Notes | ||
Total senior notes long-term, net | $ 575,330 | $ 575,304 |
Other Long-Term Debt | ||
Other | 568 | 562 |
Total other long-term debt, net | 459,007 | 370,498 |
Total other long-term debt, net | 459,007 | 370,498 |
Less: current portion of other long-term debt, net | 277 | 274 |
Other long-term debt, net | 458,730 | 370,224 |
Total debt, net | 1,034,337 | 945,802 |
Less: current portion | 277 | 274 |
Long-term debt, net | 1,034,060 | 945,528 |
Revolving Credit Facility [Member] | ||
Other Long-Term Debt | ||
Credit Facility | 200,000 | 180,000 |
Ex-Im Credit Facility [Member] | ||
Senior Notes | ||
Unamortized premium (discount) and debt issuance costs | (34,338) | (28,221) |
Other Long-Term Debt | ||
Credit Facility | 264,400 | |
Credit Facility | 292,777 | 218,157 |
Unamortized premium (discount) and debt issuance costs | (34,338) | (28,221) |
2020 Notes [Member] | ||
Senior Notes | ||
Principal amounts of Senior Notes issued | 575,000 | 575,000 |
Unamortized premium (discount) and debt issuance costs | 330 | 304 |
Total senior notes, net | 575,330 | 575,304 |
Total senior notes, net | 575,330 | 575,304 |
Less: current portion of the senior notes | 0 | 0 |
Total senior notes long-term, net | 575,330 | 575,304 |
Other Long-Term Debt | ||
Unamortized premium (discount) and debt issuance costs | $ 330 | $ 304 |
Senior Notes and Other Long-T36
Senior Notes and Other Long-Term Debt - Components of Long-Term Debt (Parenthetical) (Detail) - Ex-Im Credit Facility [Member] - USD ($) $ in Millions | Jun. 30, 2016 | Mar. 31, 2016 |
Other Long-Term Debt | ||
Exposure fees accrued as of balance sheet date expected to be financed under the Ex-Im Credit Facility | $ 28.4 | $ 21 |
Unamortized discount and debt issuance costs on Ex-Im Credit Facility related to the exposure fees expected to be financed under the Ex-Im Credit Facility | $ 25.4 | $ 18.7 |
Senior Notes and Other Long-T37
Senior Notes and Other Long-Term Debt - Additional Information (Detail) $ in Thousands | 3 Months Ended | ||||
Jun. 30, 2016USD ($)Installment | Apr. 03, 2015USD ($) | Mar. 31, 2016USD ($) | Oct. 31, 2012USD ($) | Feb. 27, 2012USD ($) | |
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit Facility maximum borrowing capacity | $ 800,000 | ||||
Maturity date of the Credit Facility | May 24, 2021 | ||||
Credit Facility interest rate description | Borrowings under the Revolving 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. | ||||
Weighted average effective interest rate on the Company's outstanding borrowings under the Credit Facility | 2.47% | ||||
Credit facility description | The Revolving Credit Facility contains financial covenants regarding a maximum total leverage ratio and a minimum interest coverage ratio. In addition, the Revolving 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. As of June 30, 2016, the Revolving Credit Facility provided a $800.0 million revolving line of credit (including up to $150.0 million of letters of credit), with a maturity date of May 24, 2021 (or March 16, 2020, if more than $200.0 million of the Company’s 2020 Notes are then outstanding and certain conditions are met). | ||||
Borrowing availability under the Credit Facility | $ 557,000 | ||||
Principal amount of outstanding borrowings under the Credit Facility | 200,000 | $ 180,000 | |||
Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit Facility maximum borrowing capacity | 150,000 | ||||
Standby letters of credit outstanding amount | 43,000 | ||||
Ex-Im Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit Facility maximum borrowing capacity | $ 386,700 | ||||
Credit facility description | The Ex-Im Credit Facility contains financial covenants regarding ViaSat's maximum total leverage ratio and minimum interest coverage ratio. In addition, the Ex-Im Credit Facility contains covenants that restrict, among other things, the Company's ability to sell assets, make investments and acquisitions, make capital expenditures, grant liens, pay dividends and make certain other restricted payments. | ||||
Principal amount of outstanding borrowings under the Credit Facility | $ 264,400 | ||||
Amount of qualified ViaSat-2 satellite costs limited to finance | $ 343,100 | ||||
Percent of qualified ViaSat-2 expenses used to finance | 85.00% | ||||
The maximum exposure fees under Ex-Im Credit Facility | $ 43,600 | ||||
Interest rate on the outstanding borrowings | 2.38% | ||||
Required number of installment repayments | Installment | 16 | ||||
Required first repayment date of borrowings under Ex-Im Credit Facility | Apr. 15, 2018 | ||||
Debt maturity date | Oct. 15, 2025 | ||||
The exposure fees paid under Ex-Im Credit Facility borrowings | $ 6,000 | ||||
Borrowing capacity available to finance ViaSat-2 related costs once incurred | $ 84,600 | ||||
Cumulative Ex-Im Credit Facility loan discount | 35,500 | ||||
Undrawn commitment under the Ex-Im Credit Facility | 93,900 | ||||
Exposure fees accrued as of balance sheet date expected to be financed under the Ex-Im Credit Facility | $ 28,400 | 21,000 | |||
Ex-Im Credit Facility [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate on the Ex-Im Credit Facility | 4.50% | ||||
Ex-Im Credit Facility [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate on the Ex-Im Credit Facility | 4.60% | ||||
Initial 2020 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amounts of Senior Notes issued | $ 275,000 | ||||
Additional 2020 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amounts of Senior Notes issued | $ 300,000 | ||||
Original issue premium of Senior Notes | 103.50% | ||||
Unamortized premium on the 2020 Notes | $ 10,500 | ||||
2020 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate on the outstanding borrowings | 6.875% | ||||
Debt maturity date | Jun. 15, 2020 | ||||
Principal amounts of Senior Notes issued | $ 575,000 | $ 575,000 | |||
2020 Notes [Member] | Debt Instrument, Redemption, Period One [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price percentage of Senior Notes | 103.438% | ||||
Redemption description of Senior 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% | ||||
2020 Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price percentage of Senior Notes | 101.719% | ||||
Redemption description of Senior Notes | During the twelve months beginning on June 15, 2017 at a redemption price of 101.719% | ||||
2020 Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price percentage of Senior Notes | 100.00% | ||||
Redemption description of Senior Notes | 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. | ||||
2020 Notes [Member] | Change of Control [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price percentage of Senior Notes | 101.00% | ||||
Redemption description of Senior Notes | 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 I
Product Warranty - Additional Information (Detail) | 3 Months Ended |
Jun. 30, 2016 | |
Product Warranties Disclosures [Abstract] | |
Maximum warranty periods provided on limited warranty | 5 years |
Product Warranty - Change in th
Product Warranty - Change in the Company's Warranty Accrual (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance, beginning of period | $ 11,434 | $ 15,545 |
Change in liability for warranties issued in period | 2,872 | 793 |
Settlements made (in cash or in kind) during the period | (2,149) | (1,915) |
Balance, end of period | $ 12,157 | $ 14,423 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Jul. 31, 2016 | May 31, 2013 | Jun. 30, 2016 | Mar. 31, 2016 | |
Unfavorable Regulatory Action [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
U.S. government contract-related reserves | $ 2.4 | $ 2.5 | ||
Satellite - ViaSat-2 [Member] | Capital Addition [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Commitment amount | $ 358 | |||
ViaSat-3 Class Satellites [Member] | Capital Addition [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Commitment amount | $ 89 | |||
ViaSat-3 Class Satellites [Member] | Capital Addition [Member] | Subsequent Event [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
Commitment amount | $ 368.3 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | 3 Months Ended |
Jun. 30, 2016USD ($) | |
Income Tax Disclosure [Abstract] | |
Increase (decrease) in gross unrecognized tax benefits | $ 1 |
Strategic Partnering Arrangem42
Strategic Partnering Arrangements - Additional Information (Detail) € in Millions | 1 Months Ended |
Feb. 29, 2016EUR (€) | |
Eutelsat Newly Formed Subsidiary [Member] | |
Business Acquisition [Line Items] | |
Minority interest ownership percentage of issued shares of an entity | 49.00% |
Payments to acquire the issued shares of an entity | € 132.5 |
Eutelsat Newly Formed Subsidiary [Member] | Eutelsat [Member] | |
Business Acquisition [Line Items] | |
Ownership percentage of issued and outstanding shares of an entity | 51.00% |
ViaSat Newly Formed Subsidiary [Member] | |
Business Acquisition [Line Items] | |
Ownership percentage of issued and outstanding shares of an entity | 51.00% |
ViaSat Newly Formed Subsidiary [Member] | Eutelsat [Member] | |
Business Acquisition [Line Items] | |
Minority interest ownership percentage of issued shares of an entity | 49.00% |
Segment Information - Segment R
Segment Information - Segment Revenues and Operating Profits (Losses) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues: | ||
Product revenues | $ 160,676 | $ 168,348 |
Service revenues | 202,454 | 176,030 |
Total revenues | 363,130 | 344,378 |
Operating profits (losses): | ||
Income from operations | 7,778 | 9,414 |
Amortization of acquired intangible assets | (2,513) | (4,810) |
Operating Segments [Member] | ||
Operating profits (losses): | ||
Income from operations | 10,291 | 14,224 |
Operating Segments [Member] | Satellite Services [Member] | ||
Revenues: | ||
Product revenues | 6,685 | 6,276 |
Service revenues | 145,708 | 126,140 |
Total revenues | 152,393 | 132,416 |
Operating profits (losses): | ||
Income from operations | 30,867 | 17,041 |
Amortization of acquired intangible assets | (1,104) | (2,765) |
Operating Segments [Member] | Commercial Networks [Member] | ||
Revenues: | ||
Product revenues | 58,596 | 61,511 |
Service revenues | 6,957 | 5,244 |
Total revenues | 65,553 | 66,755 |
Operating profits (losses): | ||
Income from operations | (38,531) | (18,733) |
Amortization of acquired intangible assets | (445) | (496) |
Operating Segments [Member] | Government Systems [Member] | ||
Revenues: | ||
Product revenues | 95,395 | 100,561 |
Service revenues | 49,789 | 44,646 |
Total revenues | 145,184 | 145,207 |
Operating profits (losses): | ||
Income from operations | 17,955 | 15,916 |
Amortization of acquired intangible assets | (964) | (1,549) |
Material Reconciling Items [Member] | ||
Operating profits (losses): | ||
Amortization of acquired intangible assets | $ (2,513) | $ (4,810) |
Segment Information - Segment44
Segment Information - Segment Revenues and Operating Profits (Losses) (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||
Product revenues | $ 160,676 | $ 168,348 |
Income (loss) from operations | 7,778 | 9,414 |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Income (loss) from operations | 10,291 | 14,224 |
Operating Segments [Member] | Satellite Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 6,685 | 6,276 |
Income (loss) from operations | 30,867 | 17,041 |
Operating Segments [Member] | Implied License [Member] | Satellite Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Product revenues | 6,600 | 6,200 |
Income (loss) from operations | $ 6,600 | $ 6,200 |
Segment Information - Segment A
Segment Information - Segment Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 2,491,249 | $ 2,397,312 |
Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 565,522 | 582,399 |
Operating Segments [Member] | Satellite Services [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 60,687 | 57,529 |
Operating Segments [Member] | Commercial Networks [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 184,190 | 212,943 |
Operating Segments [Member] | Government Systems [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 320,645 | 311,927 |
Corporate, Non-Segment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 1,925,727 | $ 1,814,913 |
Segment Information - Other Acq
Segment Information - Other Acquired Intangible Assets, Net and Goodwill Included in Segment Assets and Amortization of Acquired Intangible Assets by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Other acquired intangible assets, net | $ 31,039 | $ 33,604 | |
Goodwill | 116,560 | 117,040 | |
Amortization of acquired intangible assets | 2,513 | $ 4,810 | |
Operating Segments [Member] | Satellite Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Other acquired intangible assets, net | 7,646 | 8,751 | |
Goodwill | 9,809 | 9,809 | |
Amortization of acquired intangible assets | 1,104 | 2,765 | |
Operating Segments [Member] | Commercial Networks [Member] | |||
Segment Reporting Information [Line Items] | |||
Other acquired intangible assets, net | 6,137 | 6,581 | |
Goodwill | 43,956 | 43,990 | |
Amortization of acquired intangible assets | 445 | 496 | |
Operating Segments [Member] | Government Systems [Member] | |||
Segment Reporting Information [Line Items] | |||
Other acquired intangible assets, net | 17,256 | 18,272 | |
Goodwill | 62,795 | $ 63,241 | |
Amortization of acquired intangible assets | $ 964 | $ 1,549 |