Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2016 | Jan. 27, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
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 | 57,589,030 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 284,943 | $ 42,088 |
Accounts receivable, net | 254,759 | 286,724 |
Inventories | 158,460 | 145,161 |
Prepaid expenses and other current assets | 53,562 | 47,583 |
Total current assets | 751,724 | 521,556 |
Other acquired intangible assets, net | 44,552 | 33,604 |
Goodwill | 119,625 | 117,040 |
Other assets | 380,342 | 340,005 |
Total assets | 2,883,080 | 2,397,312 |
Current liabilities: | ||
Accounts payable | 79,485 | 95,645 |
Accrued liabilities | 199,070 | 184,344 |
Total current liabilities | 278,555 | 279,989 |
Senior notes, net | 575,368 | 575,304 |
Other long-term debt, net | 271,776 | 370,224 |
Other liabilities | 40,739 | 37,371 |
Total liabilities | 1,166,438 | 1,262,888 |
Commitments and contingencies (Note 8) | ||
ViaSat, Inc. stockholders' equity | ||
Common stock | 6 | 5 |
Paid-in capital | 1,422,575 | 855,387 |
Retained earnings | 290,821 | 273,704 |
Accumulated other comprehensive (loss) income | (2,466) | 7 |
Total ViaSat, Inc. stockholders' equity | 1,710,936 | 1,129,103 |
Noncontrolling interest in subsidiary | 5,706 | 5,321 |
Total equity | 1,716,642 | 1,134,424 |
Total liabilities and equity | 2,883,080 | 2,397,312 |
Property Plant and Equipment - Satellites [Member] | ||
Current assets: | ||
Property and equipment, net | 1,041,162 | 898,197 |
Property Plant and Equipment - Excluding Satellites [Member] | ||
Current assets: | ||
Property and equipment, net | $ 545,675 | $ 486,910 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | ||||
Product revenues | $ 169,574 | $ 156,290 | $ 517,485 | $ 488,298 |
Service revenues | 211,056 | 191,469 | 625,433 | 557,169 |
Total revenues | 380,630 | 347,759 | 1,142,918 | 1,045,467 |
Operating expenses: | ||||
Cost of product revenues | 124,579 | 113,823 | 382,084 | 355,832 |
Cost of service revenues | 130,967 | 123,770 | 392,790 | 365,974 |
Selling, general and administrative | 80,282 | 76,351 | 236,906 | 220,809 |
Independent research and development | 34,436 | 19,169 | 89,790 | 55,569 |
Amortization of acquired intangible assets | 2,775 | 4,261 | 7,565 | 13,658 |
Income from operations | 7,591 | 10,385 | 33,783 | 33,625 |
Other income (expense): | ||||
Interest income | 243 | 517 | 795 | 1,811 |
Interest expense | (2,362) | (6,063) | (11,804) | (19,343) |
Income before income taxes | 5,472 | 4,839 | 22,774 | 16,093 |
Provision for (benefit from) income taxes | 850 | (5,105) | 5,256 | (1,290) |
Net income | 4,622 | 9,944 | 17,518 | 17,383 |
Less: net income attributable to the noncontrolling interest, net of tax | 379 | 197 | 401 | 92 |
Net income attributable to ViaSat, Inc. | $ 4,243 | $ 9,747 | $ 17,117 | $ 17,291 |
Basic net income per share attributable to ViaSat, Inc. common stockholders | $ 0.08 | $ 0.20 | $ 0.34 | $ 0.36 |
Diluted net income per share attributable to ViaSat, Inc. common stockholders | $ 0.08 | $ 0.20 | $ 0.33 | $ 0.35 |
Shares used in computing basic net income per share | 52,976 | 48,712 | 50,542 | 48,275 |
Shares used in computing diluted net income per share | 54,015 | 49,630 | 51,647 | 49,230 |
Comprehensive income: | ||||
Net income | $ 4,622 | $ 9,944 | $ 17,518 | $ 17,383 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized (loss) gain on hedging, net of tax | (124) | (88) | (203) | 6 |
Foreign currency translation adjustments, net of tax | (1,331) | (235) | (2,270) | (49) |
Other comprehensive loss, net of tax | (1,455) | (323) | (2,473) | (43) |
Comprehensive income | 3,167 | 9,621 | 15,045 | 17,340 |
Less: comprehensive income attributable to the noncontrolling interest, net of tax | 379 | 197 | 401 | 92 |
Comprehensive income attributable to ViaSat, Inc. | $ 2,788 | $ 9,424 | $ 14,644 | $ 17,248 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Cash Flows (Unaudited) $ in Thousands | 9 Months Ended | |
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Cash flows from operating activities: | ||
Net income | $ 17,518 | $ 17,383 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 150,881 | 144,441 |
Amortization of intangible assets | 32,517 | 37,721 |
Deferred income taxes | 3,083 | (1,263) |
Stock-based compensation expense | 39,923 | 34,316 |
Loss on disposition of fixed assets | 26,995 | 25,980 |
Other non-cash adjustments | 7,077 | 5,658 |
Increase (decrease) in cash resulting from changes in operating assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable | 26,673 | 2,171 |
Inventories | (9,752) | (20,149) |
Other assets | (11,123) | (4,686) |
Accounts payable | (7,827) | (8,659) |
Accrued liabilities | 34,219 | (10,994) |
Other liabilities | 2,495 | (2,429) |
Net cash provided by operating activities | 312,679 | 219,490 |
Cash flows from investing activities: | ||
Purchase of property, equipment and satellites | (390,223) | (283,202) |
Cash paid for patents, licenses and other assets | (56,013) | (52,495) |
Payments related to acquisition of businesses, net of cash acquired | (16,528) | (3,908) |
Other investing activities | (649) | |
Net cash used in investing activities | (463,413) | (339,605) |
Cash flows from financing activities: | ||
Payment of debt issuance costs | (6,677) | (803) |
Proceeds from issuance of common stock under equity plans | 22,403 | 20,318 |
Purchase of common stock in treasury (immediately retired) related to tax withholdings for stock-based compensation | (21,150) | (16,056) |
Proceeds from common stock issued in public offering, net of issuance costs | 503,061 | |
Other financing activities | (1,146) | (1,142) |
Net cash provided by financing activities | 393,960 | 131,713 |
Effect of exchange rate changes on cash | (371) | 3 |
Net increase in cash and cash equivalents | 242,855 | 11,601 |
Cash and cash equivalents at beginning of period | 42,088 | 52,263 |
Cash and cash equivalents at end of period | 284,943 | 63,864 |
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 | 10,918 | 51,093 |
Issuance of common stock in connection with acquisition | 4,988 | |
Revolving Credit Facility [Member] | ||
Cash flows from financing activities: | ||
Proceeds from credit facility borrowings | 90,000 | 175,000 |
Payments of revolving credit facility borrowings | (270,000) | (185,000) |
Ex-Im Credit Facility [Member] | ||
Cash flows from financing activities: | ||
Proceeds from credit facility borrowings | 77,469 | 139,396 |
Non-cash investing and financing activities: | ||
Exposure fees on Ex-Im credit facility expected to be financed through Ex-Im credit facility | $ 8,505 | $ 13,658 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Equity (Unaudited) - 9 months ended Dec. 31, 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 | 12,117 | 12,117 | ||||
Exercise of stock options, shares | 273,050 | |||||
Issuance of stock under Employee Stock Purchase Plan | 10,286 | 10,286 | ||||
Issuance of stock under Employee Stock Purchase Plan, shares | 188,938 | |||||
Common stock issued in public offering, net of issuance costs | 503,061 | $ 1 | 503,060 | |||
Common stock issued in public offering, net of issuance costs, shares | 7,475,000 | |||||
Stock-based compensation | 44,807 | 44,807 | ||||
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 | (21,150) | (21,150) | ||||
RSU awards vesting, net of shares withheld for taxes which have been retired, shares | 487,006 | |||||
Shares issued in connection with acquisition of business | 4,988 | 4,988 | ||||
Shares issued in connection with acquisition of business, shares | 61,888 | |||||
Other noncontrolling interest activity | (16) | (16) | ||||
Net income | 17,518 | 17,117 | 401 | |||
Other comprehensive loss, net of tax | (2,473) | (2,473) | ||||
Ending balance at Dec. 31, 2016 | $ 1,716,642 | $ 6 | $ 1,422,575 | $ 290,821 | $ (2,466) | $ 5,706 |
Ending balance, shares at Dec. 31, 2016 | 57,589,030 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1 — Basis of Presentation The accompanying condensed consolidated balance sheet at December 31, 2016, the condensed consolidated statements of operations and comprehensive income for the three and nine months ended December 31, 2016 and 2015, the condensed consolidated statements of cash flows for the nine months ended December 31, 2016 and 2015 and the condensed consolidated statement of equity for the nine months ended December 31, 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. year-end 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 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. On November 14, 2016, the Company completed the acquisition of Aerodocs Limited (Arconics), a privately held company focused on wireless in-flight entertainment management software services. The Arconics purchase price of approximately $21.6 million was comprised of approximately $16.6 million in cash consideration paid to former Arconics equity holders and $5.0 million related to the fair value of 61,888 shares of the Company’s common stock issued at the closing. The approximately $16.6 million in cash consideration paid to former Arconics equity holders less cash acquired of $0.6 million resulted in a net cash outlay by the Company of approximately $16.0 million. The Arconics purchase price was primarily allocated to acquired technology and customer relationships intangible assets, and goodwill. Through this acquisition the Company gained broader expertise, aviation-grade software and mobile applications to make flying safer and more efficient for pilots, cabin crews and flight operations teams, as well as applications that are expected to create new opportunities for passenger entertainment and airline services and revenue. This acquisition was accounted for as a purchase and, accordingly, the condensed consolidated financial statements include the operating results of Arconics in our satellite services segment from the date of acquisition. On November 23, 2016, the Company completed the sale of an aggregate of 7,475,000 shares of ViaSat common stock in an underwritten public offering. The Company’s net proceeds from the offering were approximately $503.1 million after deducting underwriting discounts and offering expenses. In November 2016, the Company used $225.0 million of the net proceeds from the offering to repay outstanding borrowings under the Company’s revolving credit facility (the Revolving Credit Facility). The Company expects to use the remaining net proceeds for general corporate purposes, which may include financing costs related to the purchase, launch and operation of satellites, potential acquisitions, joint ventures and strategic alliances, working capital or capital expenditures. 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 605-35). units-of-delivery 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 2009-13), 605-25, 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 go-to-market In accordance with the authoritative guidance for shipping and handling fees and costs (ASC 605-45), 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 December 31, 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 December 31, 2016 and March 31, 2016, the Company had $1.7 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), 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 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). ViaSat-2 ViaSat-3 The Company owns two satellites: ViaSat-1 Ka-band WildBlue-1 ViaSat-2 Ka-band ViaSat-3 Ka-band ViaSat-2 ViaSat-3 Ka-band 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 December 31, 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 December 31, 2016 and March 31, 2016. Accumulated amortization related to these assets was $2.0 million and $1.7 million as of December 31, 2016 and March 31, 2016, respectively. Amortization expense related to these assets was an insignificant amount for the three and nine months ended December 31, 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 and nine months ended December 31, 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 December 31, 2016 and 2015, zero and an insignificant amount, respectively, of debt issuance costs were capitalized. During the nine months ended December 31, 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 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, 835-30): Line-of-Credit ViaSat-2 Ex-Im 2015-03, 835-30): 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 $196.6 million and $163.1 million related to software developed for resale were included in other assets as of December 31, 2016 and March 31, 2016, respectively. The Company capitalized $17.6 million and $58.3 million of costs related to software developed for resale for the three and nine months ended December 31, 2016, respectively. The Company capitalized $20.6 million and $54.1 million of costs related to software developed for resale for the three and nine months ended December 31, 2015, respectively. Amortization expense for capitalized software development costs was $8.4 million and $24.8 million for the three and nine months ended December 31, 2016, respectively, and $9.9 million and $23.8 million for the three and nine months ended December 31, 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 December 31, 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 December 31, 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 December 31, 2016 and March 31, 2016, the Company had no shares of common stock held in treasury. During the first nine months of fiscal years 2017 and 2016, the Company issued 773,290 and 689,693 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 286,284 and 257,789 shares of common stock at cost with a total value of $21.2 million and $16.1 million during the first nine months of fiscal years 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 December 31, 2016 and 2015, the Company settled certain foreign exchange contracts and in connection therewith recognized an insignificant loss and insignificant gain recorded in cost of revenues based on the nature of the underlying transactions, respectively. During the nine months ended December 31, 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 accrued liability as of December 31, 2016 and as an other current asset as of March 31, 2016. The notional value of foreign currency forward contracts outstanding as of December 31, 2016 and March 31, 2016 was $3.0 million and $5.0 million, respectively. At December 31, 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 December 31, 2016 will mature within approximately 21 to 36 months from their inception. There were no gains or losses from ineffectiveness of these derivative instruments recorded for the three and nine months ended December 31, 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 and nine months ended December 31, 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 $14.5 million and $39.9 million of stock-based compensation expense for the three and nine months ended December 31, 2016, respectively. The Company recognized $12.0 million and $34.3 million of stock-based compensation expense for the three and nine months ended December 31, 2015, respectively. For the nine months ended December 31, 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 year-to-date 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, 2014-09 2015-14, 2016-08, 2016-10, 2016-12, 2016-20, 2014-09. In August 2014, the FASB issued ASU 2014-15, 2014-15 In February 2015, the FASB issued ASU 2015-02, 2015-02 In April 2015, the FASB issued ASU 2015-03, 2015-15 2015-03, line-of-credit 2015-15 line-of-credit line-of-credit Ex-Im 2015-15, In April 2015, the FASB issued ASU 2015-05, Other—Internal-Use 350-40): 2015-05 In July 2015, the FASB issued ASU 2015-11, 2015-11 last-in, in-scope In September 2015, the FASB issued ASU 2015-16, 2015-16 In November 2015, the FASB issued ASU 2015-17, 2015-17), non-current 2015-17 non-current In January 2016, the FASB issued ASU 2016-01, 825-10). 2016-01 2016-01 In February 2016, the FASB issued ASU 2016-02, 2016-02 right-of-use 2016-02 In March 2016, the FASB issued ASU 2016-05, 2016-05 In March 2016, the FASB issued ASU 2016-06, 2016-06 2016-06 In March 2016, the FASB issued ASU 2016-07, 2016-07 2016-07 In March 2016, the FASB issued ASU 2016-09, 2016-09 In June 2016, the FASB issued ASU 2016-13, 2016-13 available-for-sale In August 2016, the FASB issued ASU 2016-15, 2016-15 In October 2016, the FASB issued ASU 2016-16, 2016-16 In October 2016, the FASB issued ASU 2016-17, In November 2016, the FASB issued ASU 2016-18, In January 2017, the FASB issued ASU 2017-01, 2017-01 In January 2017, the FASB issued ASU 2017-04, 2017-04 |
Composition of Certain Balance
Composition of Certain Balance Sheet Captions | 9 Months Ended |
Dec. 31, 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 As of (In thousands) Accounts receivable, net: Billed $ 126,592 $ 146,309 Unbilled 129,724 141,568 Allowance for doubtful accounts (1,557 ) (1,153 ) $ 254,759 $ 286,724 Inventories: Raw materials $ 53,756 $ 46,757 Work in process 28,113 27,200 Finished goods 76,591 71,204 $ 158,460 $ 145,161 Prepaid expenses and other current assets: Prepaid expenses $ 49,589 $ 41,784 Other 3,973 5,799 $ 53,562 $ 47,583 Satellites, net: Satellites (estimated useful life of 10-17 $ 559,380 $ 559,094 Capital lease of satellite capacity — Anik F2 (estimated useful life of 10 years) 99,090 99,090 Satellites under construction 696,699 515,696 1,355,169 1,173,880 Less: accumulated depreciation and amortization (314,007 ) (275,683 ) $ 1,041,162 $ 898,197 Property and equipment, net: Equipment and software (estimated useful life of 2-7 years) $ 650,307 $ 568,663 CPE leased equipment (estimated useful life of 4-5 268,742 260,409 Furniture and fixtures (estimated useful life of 7 years) 29,767 25,501 Leasehold improvements (estimated useful life of 2-17 79,823 71,895 Building (estimated useful life of 24 years) 8,923 8,923 Land 42,070 41,960 Construction in progress 99,976 73,535 1,179,608 1,050,886 Less: accumulated depreciation (633,933 ) (563,976 ) $ 545,675 $ 486,910 Other acquired intangible assets, net: Technology (weighted average useful life of 6 years) $ 87,214 $ 74,848 Contracts and customer relationships (weighted average useful life of 7 years) 102,937 99,499 Satellite co-location 8,600 8,600 Trade name (weighted average useful life of 3 years) 5,940 5,940 Other (weighted average useful life of 6 years) 9,895 8,717 214,586 197,604 Less: accumulated amortization (170,034 ) (164,000 ) $ 44,552 $ 33,604 As of As of (In thousands) Other assets: Deferred income taxes $ 131,808 $ 134,721 Capitalized software costs, net 196,620 163,061 Patents, orbital slots and other licenses, net 16,600 16,900 Other 35,314 25,323 $ 380,342 $ 340,005 Accrued liabilities: Collections in excess of revenues and deferred revenues $ 84,430 $ 64,624 Accrued employee compensation 39,206 35,056 Accrued vacation 29,952 28,646 Warranty reserve, current portion 7,859 7,867 Current portion of other long-term debt 284 274 Other 37,339 47,877 $ 199,070 $ 184,344 Other liabilities: Deferred revenue, long-term portion $ 5,123 $ 5,470 Deferred rent, long-term portion 10,387 8,808 Warranty reserve, long-term portion 3,644 3,567 Satellite performance incentives obligation, long-term portion 19,372 19,514 Deferred income taxes, long-term 2,213 12 $ 40,739 $ 37,371 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Dec. 31, 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 and liabilities measured at fair value on a recurring basis as of December 31, 2016 and March 31, 2016: Fair Value as of Level 1 Level 2 Level 3 (In thousands) Assets: Cash equivalents $ 2,003 $ 2,003 $ — $ — Total assets measured at fair value on a recurring basis $ 2,003 $ 2,003 $ — $ — Liabilities: Foreign currency forward contracts $ 131 $ — $ 131 — Total liabilities measured at fair value on a recurring basis $ 131 $ — $ 131 $ — 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 Ex-Im Ex-Im Ex-Im Satellite performance incentives obligation ViaSat-1 in-orbit |
Shares Used In Computing Dilute
Shares Used In Computing Diluted Net Income Per Share | 9 Months Ended |
Dec. 31, 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 Nine Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 (In thousands) Weighted average: Common shares outstanding used in calculating basic net income per share attributable to ViaSat, Inc. common stockholders 52,976 48,712 50,542 48,275 Options to purchase common stock as determined by application of the treasury stock method 235 229 265 297 Restricted stock units to acquire common stock as determined by application of the treasury stock method 629 529 656 502 Potentially issuable shares in connection with certain terms of the ViaSat 401(k) Profit Sharing Plan and Employee Stock Purchase Plan 175 160 184 156 Shares used in computing diluted net income per share attributable to ViaSat, Inc. common stockholders 54,015 49,630 51,647 49,230 Antidilutive shares relating to stock options excluded from the calculation comprised 648,043 and 478,400 shares for the three and nine months ended December 31, 2016, respectively, and 871,457 and 722,235 shares for the three and nine months ended December 31, 2015, respectively. Antidilutive shares relating to restricted stock units excluded from the calculation comprised 500 and zero shares for the three and nine months ended December 31, 2016, and zero and four shares for the three and nine months ended December 31, 2015, respectively. |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 9 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets | Note 5 — Goodwill and Acquired Intangible Assets During the first nine months of fiscal year 2017, the Company’s goodwill increased by $2.6 million, of which $3.8 million related to the acquisition of Arconics, recorded during the third quarter of fiscal year 2017, within the Company’s satellite services segment. The increase was partially offset by the effects of foreign currency translation recorded within all three of the Company’s segments. During the first nine months of fiscal year 2017, $19.3 million of the increase in the Company’s other acquired intangible assets related to the acquisition of Arconics, recorded during the third quarter of fiscal year 2017, within the Company’s satellite services segment. All other amounts related to the acquisition of Arconics were not significant. 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 $2.8 million and $4.3 million for the three months ended December 31, 2016 and 2015, respectively, and $7.6 million and $13.7 million for the nine months ended December 31, 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 nine months ended December 31, 2016 $ 7,565 Expected for the remainder of fiscal year 2017 $ 3,192 Expected for fiscal year 2018 11,668 Expected for fiscal year 2019 9,013 Expected for fiscal year 2020 7,259 Expected for fiscal year 2021 4,956 Thereafter 8,464 $ 44,552 |
Senior Notes and Other Long-Ter
Senior Notes and Other Long-Term Debt | 9 Months Ended |
Dec. 31, 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 December 31, 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) 368 304 Total senior notes, net 575,368 575,304 Less: current portion of the senior notes — — Total senior notes long-term, net 575,368 575,304 Other Long-Term Debt Revolving Credit Facility — 180,000 Ex-Im 304,134 218,157 Unamortized discount and debt issuance costs on the Ex-Im (32,657 ) (28,221 ) Other 583 562 Total other long-term debt, net 272,060 370,498 Less: current portion of other long-term debt, net 284 274 Other long-term debt, net 271,776 370,224 Total debt, net 847,428 945,802 Less: current portion 284 274 Long-term debt, net $ 847,144 $ 945,528 (1) As of December 31, 2016, included in Ex-Im Ex-Im Ex-Im Ex-Im Ex-Im Ex-Im (2) During the first quarter of fiscal year 2017, the Company adopted ASU 2015-03. Ex-Im Revolving Credit Facility As of December 31, 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. 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 December 31, 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 December 31, 2016. At December 31, 2016, the Company had no outstanding borrowings under the Revolving Credit Facility and $42.7 million outstanding under standby letters of credit, leaving borrowing availability under the Revolving Credit Facility as of December 31, 2016 of $757.3 million. Ex-Im As of December 31, 2016, the Ex-Im ViaSat-2 Ex-Im Ex-Im Borrowings under the Ex-Im in-orbit ViaSat-2 Ex-Im in-orbit ViaSat-2. Ex-Im Ex-Im Ex-Im ViaSat-2 The Ex-Im Ex-Im The Company was in compliance with its financial covenants under the Ex-Im Ex-Im Ex-Im Ex-Im ViaSat-2 pre-shipping Ex-Im Ex-Im Ex-Im Ex-Im Ex-Im 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 December 31, 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 | 9 Months Ended |
Dec. 31, 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 nine months ended December 31, 2016 and 2015: Nine Months Ended December 31, 2016 December 31, 2015 (In thousands) Balance, beginning of period $ 11,434 $ 15,545 Change in liability for warranties issued in period 6,177 2,664 Settlements made (in cash or in kind) during (6,108 ) (6,363 ) Balance, end of period $ 11,503 $ 11,846 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 31, 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 Ka-band In July 2016, the Company entered into two separate agreements with Boeing for the construction and purchase of two ViaSat-3 Ka-band ViaSat-3 ViaSat-3 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 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 December 31, 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 December 31, 2016 and March 31, 2016, the Company had $1.7 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 | 9 Months Ended |
Dec. 31, 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 year-to-date 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 and nine months ended December 31, 2016, the Company’s gross unrecognized tax benefits increased by $1.2 million and $3.3 million, respectively. 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 | 9 Months Ended |
Dec. 31, 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 KA-SAT |
Segment Information
Segment Information | 9 Months Ended |
Dec. 31, 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 space-to-earth Segment revenues and operating profits (losses) for the three and nine months ended December 31, 2016 and 2015 were as follows: Three Months Ended Nine Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 (In thousands) Revenues: Satellite services Product (1) $ 7,114 $ 6,453 $ 20,581 $ 19,105 Service 152,978 134,751 448,188 394,700 Total 160,092 141,204 468,769 413,805 Commercial networks Product 46,878 49,617 163,919 173,111 Service 7,633 5,809 21,608 15,440 Total 54,511 55,426 185,527 188,551 Government systems Product 115,582 100,220 332,985 296,082 Service 50,445 50,909 155,637 147,029 Total 166,027 151,129 488,622 443,111 Elimination of intersegment revenues — — — — Total revenues $ 380,630 $ 347,759 $ 1,142,918 $ 1,045,467 Operating profits (losses): Satellite services (1) $ 34,846 $ 21,772 $ 98,263 $ 59,849 Commercial networks (48,598 ) (29,889 ) (127,997 ) (70,928 ) Government systems 24,118 22,763 71,082 58,362 Elimination of intersegment operating profits — — — — Segment operating profit before corporate and amortization of acquired intangible assets 10,366 14,646 41,348 47,283 Corporate — — — — Amortization of acquired intangible assets (2,775 ) (4,261 ) (7,565 ) (13,658 ) Income from operations $ 7,591 $ 10,385 $ 33,783 $ 33,625 (1) Product revenues and operating profits in the satellite services segment for the three and nine months ended December 31, 2016 included $6.8 million and $20.0 million, respectively, and for the three and nine months ended December 31, 2015 included $6.4 million and $18.8 million, respectively, relating to amounts realized under the Company’s settlement agreement entered into in fiscal year 2015 with Space Systems 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 December 31, 2016 and March 31, 2016 were as follows: As of As of (In thousands) Segment assets: Satellite services $ 81,088 $ 57,529 Commercial networks 165,474 212,943 Government systems 330,714 311,927 Total segment assets 577,276 582,399 Corporate assets 2,305,804 1,814,913 Total assets $ 2,883,080 $ 2,397,312 Other acquired intangible assets, net and goodwill included in segment assets as of December 31, 2016 and March 31, 2016 were as follows: Other Acquired Intangible Goodwill As of As of As of As of (In thousands) Satellite services $ 23,556 $ 8,751 $ 13,434 $ 9,809 Commercial networks 5,314 6,581 43,892 43,990 Government systems 15,682 18,272 62,299 63,241 Total $ 44,552 $ 33,604 $ 119,625 $ 117,040 Amortization of acquired intangible assets by segment for the three and nine months ended December 31, 2016 and 2015 was as follows: Three Months Ended Nine Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 (In thousands) Satellite services $ 1,605 $ 2,488 $ 3,814 $ 8,018 Commercial networks 411 706 1,267 1,957 Government systems 759 1,067 2,484 3,683 Total amortization of acquired intangible assets $ 2,775 $ 4,261 $ 7,565 $ 13,658 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Dec. 31, 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 | 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 605-35). units-of-delivery |
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 2009-13), 605-25, 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 go-to-market |
Revenue recognition shipping and handling fees and costs | In accordance with the authoritative guidance for shipping and handling fees and costs (ASC 605-45), |
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), |
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 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). ViaSat-2 ViaSat-3 The Company owns two satellites: ViaSat-1 Ka-band WildBlue-1 ViaSat-2 Ka-band ViaSat-3 Ka-band ViaSat-2 ViaSat-3 Ka-band 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 December 31, 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 December 31, 2016 and March 31, 2016. Accumulated amortization related to these assets was $2.0 million and $1.7 million as of December 31, 2016 and March 31, 2016, respectively. Amortization expense related to these assets was an insignificant amount for the three and nine months ended December 31, 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 and nine months ended December 31, 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 December 31, 2016 and 2015, zero and an insignificant amount, respectively, of debt issuance costs were capitalized. During the nine months ended December 31, 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 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, 835-30): Line-of-Credit ViaSat-2 Ex-Im 2015-03, 835-30): |
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 $196.6 million and $163.1 million related to software developed for resale were included in other assets as of December 31, 2016 and March 31, 2016, respectively. The Company capitalized $17.6 million and $58.3 million of costs related to software developed for resale for the three and nine months ended December 31, 2016, respectively. The Company capitalized $20.6 million and $54.1 million of costs related to software developed for resale for the three and nine months ended December 31, 2015, respectively. Amortization expense for capitalized software development costs was $8.4 million and $24.8 million for the three and nine months ended December 31, 2016, respectively, and $9.9 million and $23.8 million for the three and nine months ended December 31, 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 December 31, 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 December 31, 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 and nine months ended December 31, 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 $14.5 million and $39.9 million of stock-based compensation expense for the three and nine months ended December 31, 2016, respectively. The Company recognized $12.0 million and $34.3 million of stock-based compensation expense for the three and nine months ended December 31, 2015, respectively. For the nine months ended December 31, 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 year-to-date 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, 2014-09 2015-14, 2016-08, 2016-10, 2016-12, 2016-20, 2014-09. In August 2014, the FASB issued ASU 2014-15, 2014-15 In February 2015, the FASB issued ASU 2015-02, 2015-02 In April 2015, the FASB issued ASU 2015-03, 2015-15 2015-03, line-of-credit 2015-15 line-of-credit line-of-credit Ex-Im 2015-15, In April 2015, the FASB issued ASU 2015-05, Other—Internal-Use 350-40): 2015-05 In July 2015, the FASB issued ASU 2015-11, 2015-11 last-in, in-scope In September 2015, the FASB issued ASU 2015-16, 2015-16 In November 2015, the FASB issued ASU 2015-17, 2015-17), non-current 2015-17 non-current In January 2016, the FASB issued ASU 2016-01, 825-10). 2016-01 2016-01 In February 2016, the FASB issued ASU 2016-02, 2016-02 right-of-use 2016-02 In March 2016, the FASB issued ASU 2016-05, 2016-05 In March 2016, the FASB issued ASU 2016-06, 2016-06 2016-06 In March 2016, the FASB issued ASU 2016-07, 2016-07 2016-07 In March 2016, the FASB issued ASU 2016-09, 2016-09 In June 2016, the FASB issued ASU 2016-13, 2016-13 available-for-sale In August 2016, the FASB issued ASU 2016-15, 2016-15 In October 2016, the FASB issued ASU 2016-16, 2016-16 In October 2016, the FASB issued ASU 2016-17, In November 2016, the FASB issued ASU 2016-18, In January 2017, the FASB issued ASU 2017-01, 2017-01 In January 2017, the FASB issued ASU 2017-04, 2017-04 |
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 and liabilities measured at fair value on a recurring basis as of December 31, 2016 and March 31, 2016: Fair Value as of Level 1 Level 2 Level 3 (In thousands) Assets: Cash equivalents $ 2,003 $ 2,003 $ — $ — Total assets measured at fair value on a recurring basis $ 2,003 $ 2,003 $ — $ — Liabilities: Foreign currency forward contracts $ 131 $ — $ 131 — Total liabilities measured at fair value on a recurring basis $ 131 $ — $ 131 $ — 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 Ex-Im Ex-Im Ex-Im Satellite performance incentives obligation ViaSat-1 in-orbit |
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) | 9 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Composition of Certain Balance Sheet Captions | As of As of (In thousands) Accounts receivable, net: Billed $ 126,592 $ 146,309 Unbilled 129,724 141,568 Allowance for doubtful accounts (1,557 ) (1,153 ) $ 254,759 $ 286,724 Inventories: Raw materials $ 53,756 $ 46,757 Work in process 28,113 27,200 Finished goods 76,591 71,204 $ 158,460 $ 145,161 Prepaid expenses and other current assets: Prepaid expenses $ 49,589 $ 41,784 Other 3,973 5,799 $ 53,562 $ 47,583 Satellites, net: Satellites (estimated useful life of 10-17 $ 559,380 $ 559,094 Capital lease of satellite capacity — Anik F2 (estimated useful life of 10 years) 99,090 99,090 Satellites under construction 696,699 515,696 1,355,169 1,173,880 Less: accumulated depreciation and amortization (314,007 ) (275,683 ) $ 1,041,162 $ 898,197 Property and equipment, net: Equipment and software (estimated useful life of 2-7 years) $ 650,307 $ 568,663 CPE leased equipment (estimated useful life of 4-5 268,742 260,409 Furniture and fixtures (estimated useful life of 7 years) 29,767 25,501 Leasehold improvements (estimated useful life of 2-17 79,823 71,895 Building (estimated useful life of 24 years) 8,923 8,923 Land 42,070 41,960 Construction in progress 99,976 73,535 1,179,608 1,050,886 Less: accumulated depreciation (633,933 ) (563,976 ) $ 545,675 $ 486,910 Other acquired intangible assets, net: Technology (weighted average useful life of 6 years) $ 87,214 $ 74,848 Contracts and customer relationships (weighted average useful life of 7 years) 102,937 99,499 Satellite co-location 8,600 8,600 Trade name (weighted average useful life of 3 years) 5,940 5,940 Other (weighted average useful life of 6 years) 9,895 8,717 214,586 197,604 Less: accumulated amortization (170,034 ) (164,000 ) $ 44,552 $ 33,604 As of As of (In thousands) Other assets: Deferred income taxes $ 131,808 $ 134,721 Capitalized software costs, net 196,620 163,061 Patents, orbital slots and other licenses, net 16,600 16,900 Other 35,314 25,323 $ 380,342 $ 340,005 Accrued liabilities: Collections in excess of revenues and deferred revenues $ 84,430 $ 64,624 Accrued employee compensation 39,206 35,056 Accrued vacation 29,952 28,646 Warranty reserve, current portion 7,859 7,867 Current portion of other long-term debt 284 274 Other 37,339 47,877 $ 199,070 $ 184,344 Other liabilities: Deferred revenue, long-term portion $ 5,123 $ 5,470 Deferred rent, long-term portion 10,387 8,808 Warranty reserve, long-term portion 3,644 3,567 Satellite performance incentives obligation, long-term portion 19,372 19,514 Deferred income taxes, long-term 2,213 12 $ 40,739 $ 37,371 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2016 and March 31, 2016: Fair Value as of Level 1 Level 2 Level 3 (In thousands) Assets: Cash equivalents $ 2,003 $ 2,003 $ — $ — Total assets measured at fair value on a recurring basis $ 2,003 $ 2,003 $ — $ — Liabilities: Foreign currency forward contracts $ 131 $ — $ 131 — Total liabilities measured at fair value on a recurring basis $ 131 $ — $ 131 $ — 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) | 9 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Shares Used in Computing Diluted Net Income Per Share | Three Months Ended Nine Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 (In thousands) Weighted average: Common shares outstanding used in calculating basic net income per share attributable to ViaSat, Inc. common stockholders 52,976 48,712 50,542 48,275 Options to purchase common stock as determined by application of the treasury stock method 235 229 265 297 Restricted stock units to acquire common stock as determined by application of the treasury stock method 629 529 656 502 Potentially issuable shares in connection with certain terms of the ViaSat 401(k) Profit Sharing Plan and Employee Stock Purchase Plan 175 160 184 156 Shares used in computing diluted net income per share attributable to ViaSat, Inc. common stockholders 54,015 49,630 51,647 49,230 |
Goodwill and Acquired Intangi21
Goodwill and Acquired Intangible Assets (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Current and Expected Amortization Expense for Acquired Intangible Assets | 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 nine months ended December 31, 2016 $ 7,565 Expected for the remainder of fiscal year 2017 $ 3,192 Expected for fiscal year 2018 11,668 Expected for fiscal year 2019 9,013 Expected for fiscal year 2020 7,259 Expected for fiscal year 2021 4,956 Thereafter 8,464 $ 44,552 |
Senior Notes and Other Long-T22
Senior Notes and Other Long-Term Debt (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | Total long-term debt consisted of the following as of December 31, 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) 368 304 Total senior notes, net 575,368 575,304 Less: current portion of the senior notes — — Total senior notes long-term, net 575,368 575,304 Other Long-Term Debt Revolving Credit Facility — 180,000 Ex-Im 304,134 218,157 Unamortized discount and debt issuance costs on the Ex-Im (32,657 ) (28,221 ) Other 583 562 Total other long-term debt, net 272,060 370,498 Less: current portion of other long-term debt, net 284 274 Other long-term debt, net 271,776 370,224 Total debt, net 847,428 945,802 Less: current portion 284 274 Long-term debt, net $ 847,144 $ 945,528 (1) As of December 31, 2016, included in Ex-Im Ex-Im Ex-Im Ex-Im Ex-Im Ex-Im (2) During the first quarter of fiscal year 2017, the Company adopted ASU 2015-03. Ex-Im |
Product Warranty (Tables)
Product Warranty (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Guarantees [Abstract] | |
Change in the Company's Warranty Accrual | future adjustments will be made to the recorded warranty obligation. The following table reflects the change in the Company’s warranty accrual during the nine months ended December 31, 2016 and 2015: Nine Months Ended December 31, 2016 December 31, 2015 (In thousands) Balance, beginning of period $ 11,434 $ 15,545 Change in liability for warranties issued in period 6,177 2,664 Settlements made (in cash or in kind) during (6,108 ) (6,363 ) Balance, end of period $ 11,503 $ 11,846 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Revenues and Operating Profits (Losses) | Segment revenues and operating profits (losses) for the three and nine months ended December 31, 2016 and 2015 were as follows: Three Months Ended Nine Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 (In thousands) Revenues: Satellite services Product (1) $ 7,114 $ 6,453 $ 20,581 $ 19,105 Service 152,978 134,751 448,188 394,700 Total 160,092 141,204 468,769 413,805 Commercial networks Product 46,878 49,617 163,919 173,111 Service 7,633 5,809 21,608 15,440 Total 54,511 55,426 185,527 188,551 Government systems Product 115,582 100,220 332,985 296,082 Service 50,445 50,909 155,637 147,029 Total 166,027 151,129 488,622 443,111 Elimination of intersegment revenues — — — — Total revenues $ 380,630 $ 347,759 $ 1,142,918 $ 1,045,467 Operating profits (losses): Satellite services (1) $ 34,846 $ 21,772 $ 98,263 $ 59,849 Commercial networks (48,598 ) (29,889 ) (127,997 ) (70,928 ) Government systems 24,118 22,763 71,082 58,362 Elimination of intersegment operating profits — — — — Segment operating profit before corporate and amortization of acquired intangible assets 10,366 14,646 41,348 47,283 Corporate — — — — Amortization of acquired intangible assets (2,775 ) (4,261 ) (7,565 ) (13,658 ) Income from operations $ 7,591 $ 10,385 $ 33,783 $ 33,625 (1) Product revenues and operating profits in the satellite services segment for the three and nine months ended December 31, 2016 included $6.8 million and $20.0 million, respectively, and for the three and nine months ended December 31, 2015 included $6.4 million and $18.8 million, respectively, relating to amounts realized under the Company’s settlement agreement entered into in fiscal year 2015 with Space Systems Loral, Inc. and its former parent company Loral Space & Communications, Inc. |
Segment Assets | use by the various segments throughout their estimated useful lives. Segment assets as of December 31, 2016 and March 31, 2016 were as follows: As of As of (In thousands) Segment assets: Satellite services $ 81,088 $ 57,529 Commercial networks 165,474 212,943 Government systems 330,714 311,927 Total segment assets 577,276 582,399 Corporate assets 2,305,804 1,814,913 Total assets $ 2,883,080 $ 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 December 31, 2016 and March 31, 2016 were as follows: Other Acquired Intangible Goodwill As of As of As of As of (In thousands) Satellite services $ 23,556 $ 8,751 $ 13,434 $ 9,809 Commercial networks 5,314 6,581 43,892 43,990 Government systems 15,682 18,272 62,299 63,241 Total $ 44,552 $ 33,604 $ 119,625 $ 117,040 Amortization of acquired intangible assets by segment for the three and nine months ended December 31, 2016 and 2015 was as follows: Three Months Ended Nine Months Ended December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 (In thousands) Satellite services $ 1,605 $ 2,488 $ 3,814 $ 8,018 Commercial networks 411 706 1,267 1,957 Government systems 759 1,067 2,484 3,683 Total amortization of acquired intangible assets $ 2,775 $ 4,261 $ 7,565 $ 13,658 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands | Nov. 23, 2016 | Nov. 14, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | Jun. 30, 2015 |
Company And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Shares issued in connection with acquisition of business, net of issuance costs | $ 4,988 | |||||||
Payment related to acquisition of business, net of cash acquired | 16,528 | $ 3,908 | ||||||
Common stock issued under public offering, net of issuance costs | 503,061 | |||||||
Forward loss related to loss contracts | $ 800 | $ 400 | $ 2,800 | 2,100 | ||||
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 December 31, 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 | 1,900 | 3,100 | $ 3,500 | 9,700 | ||||
Capitalized interest expense | 13,400 | $ 7,700 | 35,200 | 20,900 | ||||
Total capitalized costs related to patents | 3,200 | 3,200 | $ 3,200 | |||||
Total capitalized costs related to orbital slots and other licenses | 15,400 | 15,400 | 15,400 | |||||
Accumulated amortization of patents, orbital slots and other licenses | 2,000 | 2,000 | 1,700 | |||||
Capitalized debt issuance costs | 6,100 | $ 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 | 1,179,608 | $ 1,179,608 | 1,050,886 | |||||
Accumulated depreciation and amortization | 633,933 | $ 633,933 | 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 | 268,742 | $ 268,742 | 260,409 | |||||
Accumulated depreciation and amortization | 153,400 | $ 153,400 | 136,400 | |||||
Common Stock [Member] | ||||||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Shares issued in connection with acquisition of business, net of issuance costs | 61,888 | |||||||
Common stock issued under public offering, net of issuance costs | 7,475,000 | 7,475,000 | ||||||
Common stock issued under public offering, net of issuance costs | $ 1 | |||||||
Paid-in Capital [Member] | ||||||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Shares issued in connection with acquisition of business, net of issuance costs | 4,988 | |||||||
Common stock issued under public offering, net of issuance costs | $ 503,100 | 503,060 | ||||||
Revolving Credit Facility [Member] | ||||||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Payments of revolving credit facility borrowings | $ 225,000 | 270,000 | $ 185,000 | |||||
Engreen [Member] | ||||||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Purchase price of the acquisition | $ 5,300 | |||||||
Arconics [Member] | ||||||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Purchase price of acquisition of business | $ 21,600 | |||||||
Shares issued in connection with acquisition of business, net of issuance costs | $ 5,000 | |||||||
Shares issued in connection with acquisition of business, net of issuance costs | 61,888 | |||||||
Cash consideration related to acquisition of business | $ 16,600 | |||||||
Cash acquired from acquisition of business | 600 | |||||||
Payment related to acquisition of business, net of cash acquired | $ 16,000 | |||||||
Unfavorable Regulatory Action [Member] | ||||||||
Company And Summary Of Significant Accounting Policies [Line Items] | ||||||||
U.S. government contract-related reserves | $ 1,700 | $ 1,700 | $ 2,500 |
Basis of Presentation - Addit26
Basis of Presentation - Additional Information 1 (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | |
Company And Summary Of Significant Accounting Policies [Line Items] | |||||
Capitalized costs, net, related to software developed for resale | $ 196,620,000 | $ 196,620,000 | $ 163,061,000 | ||
Capitalized cost related to software development for resale | 17,600,000 | $ 20,600,000 | 58,300,000 | $ 54,100,000 | |
Amortization expense of capitalized software development costs | 8,400,000 | 9,900,000 | 24,800,000 | 23,800,000 | |
Self-insurance liability | 3,900,000 | 3,900,000 | $ 3,800,000 | ||
Repurchase and immediate retirement of treasury shares pursuant to vesting of certain RSU agreements | 21,150,000 | ||||
Stock-based compensation expense | $ 14,500,000 | 12,000,000 | 39,923,000 | 34,316,000 | |
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 | 0 | ||
Repurchase and immediate retirement of treasury shares pursuant to vesting of certain RSU agreements, shares | 286,284 | 257,789 | |||
Repurchase and immediate retirement of treasury shares pursuant to vesting of certain RSU agreements | $ 21,200,000 | $ 16,100,000 | |||
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 | 773,290 | 689,693 | |||
Indemnification Agreement [Member] | |||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||
Accrued indemnification losses | $ 0 | $ 0 | $ 0 | ||
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | Foreign Currency Forward Contracts [Member] | |||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||
Notional value of foreign currency forward contracts outstanding | 3,000,000 | 3,000,000 | $ 5,000,000 | ||
Gains or losses from ineffectiveness of derivative instruments | $ 0 | $ 0 | $ 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. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which provides for correction or improvement to the guidance previously issued in ASU 2014-09. 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 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. | ||||
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. | ||||
Accounting Standards Update 2016-15 [Member] | |||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||
Description of new accounting pronouncements | In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230). ASU 2016-15 makes eight targeted changes to how companies present and classify certain cash receipts and cash payments in the statement of cash flows. The new standard will become effective for the Company beginning in fiscal year 2019, with early adoption permitted. The new standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case the Company would be required to apply the amendments prospectively as of the earliest date practicable. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. | ||||
Accounting Standards Update 2016-16 [Member] | |||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||
Description of new accounting pronouncements | In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740). ASU 2016-16 requires that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs as opposed to when the asset has been sold to an outside party. The new standard will become effective for the Company beginning in fiscal year 2019, with early adoption permitted. The new standard will require a modified retrospective basis through cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. | ||||
Accounting Standards Update 2014-15 [Member] | |||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||
Description of new accounting pronouncements | In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU 2014-15 provides guidance regarding management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. The new standard requires management to perform interim and annual evaluations and sets forth principles for considering the mitigating effect of management’s plans. The standard mandates certain disclosures when conditions give rise to substantial doubt about a company’s ability to continue as a going concern within one year from the financial statement issuance date. This guidance is effective for the Company in fiscal year 2017, with early application permitted. The Company early adopted the guidance, which did not have a material impact on the Company’s consolidated financial statements and disclosures. | ||||
Accounting Standards Update 2016-17 [Member] | |||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||
Description of new accounting pronouncements | In October 2016, the FASB issued ASU 2016-17, Consolidation: Interests Held through Related Parties That Are Under Common Control (Topic 810). The amendments change how a reporting entity that is the single decision maker of a variable interest entity should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that variable interest entity. The new standard 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 2016-18 [Member] | |||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||
Description of new accounting pronouncements | In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash (Topic 230). The amendments address diversity in practice that exists in the classification and presentation of changes in restricted cash and require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The new standard will become effective for the Company beginning in fiscal year 2019, with early adoption permitted. During the third quarter of fiscal year 2017, the Company early adopted this standard on a retrospective basis. The guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. | ||||
Accounting Standards Update 2017-01 [Member] | |||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||
Description of new accounting pronouncements | In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business (Topic 805). ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The new standard will become effective for the Company beginning in fiscal year 2019, with early adoption permitted with limitations. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. | ||||
Accounting Standards Update 2017-04 [Member] | |||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||
Description of new accounting pronouncements | In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other Simplifying the Test for Goodwill Impairment (Topic 350). ASU 2017-04 removes Step 2 from the goodwill impairment test. The standard will become effective for the Company beginning in fiscal year 2021, with early adoption permitted. 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 | Dec. 31, 2016 | Mar. 31, 2016 |
Accounts receivable, net: | ||
Accounts receivable, Billed | $ 126,592 | $ 146,309 |
Accounts receivable, Unbilled | 129,724 | 141,568 |
Allowance for doubtful accounts | (1,557) | (1,153) |
Accounts receivable, net | 254,759 | 286,724 |
Inventories: | ||
Raw materials | 53,756 | 46,757 |
Work in process | 28,113 | 27,200 |
Finished goods | 76,591 | 71,204 |
Inventories | 158,460 | 145,161 |
Prepaid expenses and other current assets: | ||
Prepaid expenses | 49,589 | 41,784 |
Other | 3,973 | 5,799 |
Prepaid expenses and other current assets | 53,562 | 47,583 |
Other acquired intangible assets, net: | ||
Other acquired intangible assets, gross | 214,586 | 197,604 |
Less: accumulated amortization | (170,034) | (164,000) |
Other acquired intangible assets, net | 44,552 | 33,604 |
Other assets: | ||
Deferred income taxes | 131,808 | 134,721 |
Capitalized software costs, net | 196,620 | 163,061 |
Patents, orbital slots and other licenses, net | 16,600 | 16,900 |
Other | 35,314 | 25,323 |
Other assets | 380,342 | 340,005 |
Accrued liabilities: | ||
Collections in excess of revenues and deferred revenues | 84,430 | 64,624 |
Accrued employee compensation | 39,206 | 35,056 |
Accrued vacation | 29,952 | 28,646 |
Warranty reserve, current portion | 7,859 | 7,867 |
Current portion of other long-term debt | 284 | 274 |
Other | 37,339 | 47,877 |
Accrued liabilities | 199,070 | 184,344 |
Other liabilities: | ||
Deferred revenue, long-term portion | 5,123 | 5,470 |
Deferred rent, long-term portion | 10,387 | 8,808 |
Warranty reserve, long-term portion | 3,644 | 3,567 |
Satellite performance incentives obligation, long-term portion | 19,372 | 19,514 |
Deferred income taxes, long-term | 2,213 | 12 |
Other liabilities | 40,739 | 37,371 |
Technology-Based Intangible Assets [Member] | ||
Other acquired intangible assets, net: | ||
Other acquired intangible assets, gross | 87,214 | 74,848 |
Contracts and Customer Relationships [Member] | ||
Other acquired intangible assets, net: | ||
Other acquired intangible assets, gross | 102,937 | 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 | 9,895 | 8,717 |
Satellites, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 1,355,169 | 1,173,880 |
Less: accumulated depreciation and amortization | (314,007) | (275,683) |
Property and equipment, net | 1,041,162 | 898,197 |
Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 1,179,608 | 1,050,886 |
Less: accumulated depreciation and amortization | (633,933) | (563,976) |
Property and equipment, net | 545,675 | 486,910 |
Satellites [Member] | Satellites, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 559,380 | 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 | 696,699 | 515,696 |
Construction in Progress [Member] | Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 99,976 | 73,535 |
Equipment and Software [Member] | Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 650,307 | 568,663 |
CPE Leased Equipment [Member] | Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 268,742 | 260,409 |
Less: accumulated depreciation and amortization | (153,400) | (136,400) |
Furniture and Fixtures [Member] | Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 29,767 | 25,501 |
Leasehold Improvements [Member] | Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 79,823 | 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 | $ 42,070 | $ 41,960 |
Composition of Certain Balanc28
Composition of Certain Balance Sheet Captions - Composition of Certain Balance Sheet Captions (Parenthetical) (Detail) | 9 Months Ended |
Dec. 31, 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 | 7 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 | 6 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 and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
Assets: | ||
Cash equivalents | $ 2,003 | $ 2,003 |
Foreign currency forward contracts | 196 | |
Total assets measured at fair value on a recurring basis | 2,003 | 2,199 |
Liabilities: | ||
Foreign currency forward contracts | 131 | |
Total liabilities measured at fair value on a recurring basis | 131 | |
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 | 196 | |
Total assets measured at fair value on a recurring basis | $ 196 | |
Liabilities: | ||
Foreign currency forward contracts | 131 | |
Total liabilities measured at fair value on a recurring basis | $ 131 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 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 | $ 22,000 | 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 | 300,800 | 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 | $ 592,300 | $ 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 | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | ||||
Weighted average common shares outstanding used in calculating basic net income per share attributable to ViaSat, Inc. common stockholders | 52,976 | 48,712 | 50,542 | 48,275 |
Weighted average options to purchase common stock as determined by application of the treasury stock method | 235 | 229 | 265 | 297 |
Weighted average restricted stock units to acquire common stock as determined by application of the treasury stock method | 629 | 529 | 656 | 502 |
Weighted average potentially issuable shares in connection with certain terms of the ViaSat 401(k) Profit Sharing Plan and Employee Stock Purchase Plan | 175 | 160 | 184 | 156 |
Weighted average shares used in computing diluted net income per share attributable to ViaSat, Inc. common stockholders | 54,015 | 49,630 | 51,647 | 49,230 |
Shares Used In Computing Dilu32
Shares Used In Computing Diluted Net Income Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares | 648,043 | 871,457 | 478,400 | 722,235 |
Restricted Stock Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares | 500 | 0 | 0 | 4 |
Goodwill and Acquired Intangi33
Goodwill and Acquired Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of acquired intangible assets | $ 2,775 | $ 4,261 | $ 7,565 | $ 13,658 |
Arconics [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Increase in goodwill related to acquisition | 2,600 | |||
Change in goodwill related to an acquisition | 3,800 | |||
Increase in other intangible assets related to acquisition | $ 19,300 | |||
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 | 9 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
For the nine months ended December 31, 2016 | $ 2,775 | $ 4,261 | $ 7,565 | $ 13,658 | |
Expected for the remainder of fiscal year 2017 | 3,192 | 3,192 | |||
Expected for fiscal year 2018 | 11,668 | 11,668 | |||
Expected for fiscal year 2019 | 9,013 | 9,013 | |||
Expected for fiscal year 2020 | 7,259 | 7,259 | |||
Expected for fiscal year 2021 | 4,956 | 4,956 | |||
Thereafter | 8,464 | 8,464 | |||
Other acquired intangible assets, net | $ 44,552 | $ 44,552 | $ 33,604 |
Senior Notes and Other Long-T35
Senior Notes and Other Long-Term Debt - Components of Long-Term Debt (Detail) - USD ($) | Dec. 31, 2016 | Mar. 31, 2016 |
Senior Notes | ||
Total senior notes long-term, net | $ 575,368,000 | $ 575,304,000 |
Other Long-Term Debt | ||
Other | 583,000 | 562,000 |
Total other long-term debt, net | 272,060,000 | 370,498,000 |
Total other long-term debt, net | 272,060,000 | 370,498,000 |
Less: current portion of other long-term debt, net | 284,000 | 274,000 |
Other long-term debt, net | 271,776,000 | 370,224,000 |
Total debt, net | 847,428,000 | 945,802,000 |
Less: current portion | 284,000 | 274,000 |
Long-term debt, net | 847,144,000 | 945,528,000 |
Revolving Credit Facility [Member] | ||
Other Long-Term Debt | ||
Credit Facility | 0 | 180,000,000 |
Ex-Im Credit Facility [Member] | ||
Other Long-Term Debt | ||
Credit Facility | 274,600,000 | |
Credit Facility | 304,134,000 | 218,157,000 |
Unamortized discount and debt issuance costs on the Ex-Im Credit Facility | (32,657,000) | (28,221,000) |
2020 Notes [Member] | ||
Senior Notes | ||
Principal amounts of Senior Notes issued | 575,000,000 | 575,000,000 |
Unamortized premium and debt issuance costs on the 2020 Notes, net | 368,000 | 304,000 |
Total senior notes, net | 575,368,000 | 575,304,000 |
Total senior notes, net | 575,368,000 | 575,304,000 |
Less: current portion of the senior notes | 0 | 0 |
Total senior notes long-term, net | $ 575,368,000 | $ 575,304,000 |
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 | Dec. 31, 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 | $ 29.5 | $ 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 | $ 24.3 | $ 18.7 |
Senior Notes and Other Long-T37
Senior Notes and Other Long-Term Debt - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |||
Apr. 03, 2015USD ($) | Dec. 31, 2016USD ($)Installment | Mar. 31, 2016USD ($) | Oct. 31, 2012USD ($) | Feb. 27, 2012USD ($) | |
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit Facility maximum borrowing capacity | $ 800,000,000 | ||||
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. | ||||
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 December 31, 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). | ||||
Borrowing availability under the Credit Facility | $ 757,300,000 | ||||
Outstanding borrowings under the Credit Facility | 0 | $ 180,000,000 | |||
Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit Facility maximum borrowing capacity | 150,000,000 | ||||
Standby letters of credit outstanding amount | 42,700,000 | ||||
Ex-Im Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit Facility maximum borrowing capacity | $ 386,700,000 | ||||
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. | ||||
Outstanding borrowings under the Credit Facility | $ 274,600,000 | ||||
Amount of qualified ViaSat-2 satellite costs limited to finance | $ 343,100,000 | ||||
Percent of qualified ViaSat-2 expenses used to finance | 85.00% | ||||
The maximum exposure fees under Ex-Im Credit Facility | $ 43,600,000 | ||||
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 | $ 6,000,000 | ||||
Borrowing capacity available to finance ViaSat-2 related costs once incurred | $ 74,400,000 | ||||
Cumulative Ex-Im Credit Facility loan discount | 36,600,000 | ||||
Undrawn commitment under the Ex-Im Credit Facility | 82,500,000 | ||||
Exposure fees accrued as of balance sheet date expected to be financed under the Ex-Im Credit Facility | $ 29,500,000 | 21,000,000 | |||
Ex-Im Credit Facility [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate on the Ex-Im Credit Facility | 4.40% | ||||
Ex-Im Credit Facility [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate on the Ex-Im Credit Facility | 4.50% | ||||
Initial 2020 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amounts of Senior Notes issued | $ 275,000,000 | ||||
Additional 2020 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amounts of Senior Notes issued | $ 300,000,000 | ||||
Original issue premium of Senior Notes | 103.50% | ||||
Unamortized premium on the 2020 Notes | $ 10,500,000 | ||||
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 | $ 575,000,000 | $ 575,000,000 | |||
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) | 9 Months Ended |
Dec. 31, 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 | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 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 | 6,177 | 2,664 |
Settlements made (in cash or in kind) during the period | (6,108) | (6,363) |
Balance, end of period | $ 11,503 | $ 11,846 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | |||
Jul. 31, 2016 | May 31, 2013 | Dec. 31, 2016 | Mar. 31, 2016 | |
Unfavorable Regulatory Action [Member] | ||||
Long-term Purchase Commitment [Line Items] | ||||
U.S. government contract-related reserves | $ 1.7 | $ 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 | $ 368.3 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Dec. 31, 2016 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Increase (decrease) in gross unrecognized tax benefits | $ 1.2 | $ 3.3 |
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 | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | ||||
Product revenues | $ 169,574 | $ 156,290 | $ 517,485 | $ 488,298 |
Service revenues | 211,056 | 191,469 | 625,433 | 557,169 |
Total revenues | 380,630 | 347,759 | 1,142,918 | 1,045,467 |
Operating profits (losses): | ||||
Income from operations | 7,591 | 10,385 | 33,783 | 33,625 |
Amortization of acquired intangible assets | (2,775) | (4,261) | (7,565) | (13,658) |
Operating Segments [Member] | ||||
Operating profits (losses): | ||||
Income from operations | 10,366 | 14,646 | 41,348 | 47,283 |
Operating Segments [Member] | Satellite Services [Member] | ||||
Revenues: | ||||
Product revenues | 7,114 | 6,453 | 20,581 | 19,105 |
Service revenues | 152,978 | 134,751 | 448,188 | 394,700 |
Total revenues | 160,092 | 141,204 | 468,769 | 413,805 |
Operating profits (losses): | ||||
Income from operations | 34,846 | 21,772 | 98,263 | 59,849 |
Amortization of acquired intangible assets | (1,605) | (2,488) | (3,814) | (8,018) |
Operating Segments [Member] | Commercial Networks [Member] | ||||
Revenues: | ||||
Product revenues | 46,878 | 49,617 | 163,919 | 173,111 |
Service revenues | 7,633 | 5,809 | 21,608 | 15,440 |
Total revenues | 54,511 | 55,426 | 185,527 | 188,551 |
Operating profits (losses): | ||||
Income from operations | (48,598) | (29,889) | (127,997) | (70,928) |
Amortization of acquired intangible assets | (411) | (706) | (1,267) | (1,957) |
Operating Segments [Member] | Government Systems [Member] | ||||
Revenues: | ||||
Product revenues | 115,582 | 100,220 | 332,985 | 296,082 |
Service revenues | 50,445 | 50,909 | 155,637 | 147,029 |
Total revenues | 166,027 | 151,129 | 488,622 | 443,111 |
Operating profits (losses): | ||||
Income from operations | 24,118 | 22,763 | 71,082 | 58,362 |
Amortization of acquired intangible assets | (759) | (1,067) | (2,484) | (3,683) |
Material Reconciling Items [Member] | ||||
Operating profits (losses): | ||||
Amortization of acquired intangible assets | $ (2,775) | $ (4,261) | $ (7,565) | $ (13,658) |
Segment Information - Segment44
Segment Information - Segment Revenues and Operating Profits (Losses) (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 169,574 | $ 156,290 | $ 517,485 | $ 488,298 |
Income (loss) from operations | 7,591 | 10,385 | 33,783 | 33,625 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from operations | 10,366 | 14,646 | 41,348 | 47,283 |
Operating Segments [Member] | Satellite Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | 7,114 | 6,453 | 20,581 | 19,105 |
Income (loss) from operations | 34,846 | 21,772 | 98,263 | 59,849 |
Operating Segments [Member] | Implied License [Member] | Satellite Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | 6,800 | 6,400 | 20,000 | 18,800 |
Income (loss) from operations | $ 6,800 | $ 6,400 | $ 20,000 | $ 18,800 |
Segment Information - Segment A
Segment Information - Segment Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 31, 2016 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 2,883,080 | $ 2,397,312 |
Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 577,276 | 582,399 |
Operating Segments [Member] | Satellite Services [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 81,088 | 57,529 |
Operating Segments [Member] | Commercial Networks [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 165,474 | 212,943 |
Operating Segments [Member] | Government Systems [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 330,714 | 311,927 |
Corporate, Non-Segment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 2,305,804 | $ 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 | 9 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
Other acquired intangible assets, net | $ 44,552 | $ 44,552 | $ 33,604 | ||
Goodwill | 119,625 | 119,625 | 117,040 | ||
Amortization of acquired intangible assets | 2,775 | $ 4,261 | 7,565 | $ 13,658 | |
Operating Segments [Member] | Satellite Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Other acquired intangible assets, net | 23,556 | 23,556 | 8,751 | ||
Goodwill | 13,434 | 13,434 | 9,809 | ||
Amortization of acquired intangible assets | 1,605 | 2,488 | 3,814 | 8,018 | |
Operating Segments [Member] | Commercial Networks [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Other acquired intangible assets, net | 5,314 | 5,314 | 6,581 | ||
Goodwill | 43,892 | 43,892 | 43,990 | ||
Amortization of acquired intangible assets | 411 | 706 | 1,267 | 1,957 | |
Operating Segments [Member] | Government Systems [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Other acquired intangible assets, net | 15,682 | 15,682 | 18,272 | ||
Goodwill | 62,299 | 62,299 | $ 63,241 | ||
Amortization of acquired intangible assets | $ 759 | $ 1,067 | $ 2,484 | $ 3,683 |