Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Sep. 30, 2017 | Oct. 27, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
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 | 58,237,198 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Mar. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 242,708 | $ 130,098 |
Accounts receivable, net | 251,879 | 263,721 |
Inventories | 181,399 | 163,201 |
Prepaid expenses and other current assets | 72,389 | 57,836 |
Total current assets | 748,375 | 614,856 |
Other acquired intangible assets, net | 36,796 | 41,677 |
Goodwill | 120,592 | 119,876 |
Other assets | 642,090 | 529,366 |
Total assets | 3,288,221 | 2,954,653 |
Current liabilities: | ||
Accounts payable | 101,052 | 100,270 |
Accrued liabilities | 207,000 | 224,959 |
Current portion of long-term debt | 22,945 | 288 |
Total current liabilities | 330,997 | 325,517 |
Senior notes | 690,270 | 575,380 |
Other long-term debt | 306,202 | 273,103 |
Other liabilities | 112,979 | 42,722 |
Total liabilities | 1,440,448 | 1,216,722 |
Commitments and contingencies (Note 8) | ||
ViaSat, Inc. stockholders' equity | ||
Common stock | 6 | 6 |
Paid-in capital | 1,504,630 | 1,439,645 |
Retained earnings | 332,754 | 297,471 |
Accumulated other comprehensive income (loss) | 7,451 | (2,504) |
Total ViaSat, Inc. stockholders' equity | 1,844,841 | 1,734,618 |
Noncontrolling interest in subsidiaries | 2,932 | 3,313 |
Total equity | 1,847,773 | 1,737,931 |
Total liabilities and equity | 3,288,221 | 2,954,653 |
Property Plant and Equipment - Satellites [Member] | ||
Current assets: | ||
Property and equipment, net | 1,162,851 | 1,108,270 |
Property Plant and Equipment - Excluding Satellites [Member] | ||
Current assets: | ||
Property and equipment, net | $ 577,517 | $ 540,608 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues: | ||||
Product revenues | $ 181,783 | $ 187,235 | $ 347,901 | $ 347,911 |
Service revenues | 211,291 | 211,923 | 425,217 | 414,377 |
Total revenues | 393,074 | 399,158 | 773,118 | 762,288 |
Operating expenses: | ||||
Cost of product revenues | 133,850 | 136,825 | 256,495 | 257,505 |
Cost of service revenues | 135,412 | 134,241 | 273,263 | 261,823 |
Selling, general and administrative | 90,084 | 77,224 | 179,257 | 156,624 |
Independent research and development | 46,268 | 30,177 | 91,333 | 55,354 |
Amortization of acquired intangible assets | 3,320 | 2,277 | 6,580 | 4,790 |
(Loss) income from operations | (15,860) | 18,414 | (33,810) | 26,192 |
Other income (expense): | ||||
Interest income | 177 | 229 | 270 | 552 |
Interest expense | (197) | (4,308) | (253) | (9,442) |
Loss on extinguishment of debt | (10,217) | (10,217) | ||
(Loss) income before income taxes | (26,097) | 14,335 | (44,010) | 17,302 |
Benefit from (provision for) income taxes | 11,464 | (3,596) | 20,644 | (4,406) |
Equity in income of unconsolidated affiliate, net | 741 | 228 | ||
Net (loss) income | (13,892) | 10,739 | (23,138) | 12,896 |
Less: net (loss) income attributable to noncontrolling interests, net of tax | (203) | (280) | (410) | 22 |
Net (loss) income attributable to ViaSat, Inc. | $ (13,689) | $ 11,019 | $ (22,728) | $ 12,874 |
Basic net (loss) income per share attributable to ViaSat, Inc. common stockholders | $ (0.24) | $ 0.22 | $ (0.39) | $ 0.26 |
Diluted net (loss) income per share attributable to ViaSat, Inc. common stockholders | $ (0.24) | $ 0.22 | $ (0.39) | $ 0.26 |
Shares used in computing basic net (loss) income per share | 58,229 | 49,503 | 58,039 | 49,319 |
Shares used in computing diluted net (loss) income per share | 58,229 | 50,533 | 58,039 | 50,393 |
Comprehensive income (loss): | ||||
Net (loss) income | $ (13,892) | $ 10,739 | $ (23,138) | $ 12,896 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gain (loss) on hedging, net of tax | 17 | 21 | 109 | (79) |
Foreign currency translation adjustments, net of tax | 6,321 | (175) | 9,846 | (939) |
Other comprehensive income (loss), net of tax | 6,338 | (154) | 9,955 | (1,018) |
Comprehensive (loss) income | (7,554) | 10,585 | (13,183) | 11,878 |
Less: comprehensive (loss) income attributable to noncontrolling interests, net of tax | (203) | (280) | (410) | 22 |
Comprehensive (loss) income attributable to ViaSat, Inc. | $ (7,351) | $ 10,865 | $ (12,773) | $ 11,856 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (23,138) | $ 12,896 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation | 101,659 | 100,541 |
Amortization of intangible assets | 23,150 | 21,279 |
Deferred income taxes | (21,313) | 3,430 |
Equity in income of unconsolidated affiliate, net | (228) | |
Stock-based compensation expense | 31,490 | 25,418 |
Loss on disposition of fixed assets | 17,853 | 17,812 |
Loss on extinguishment of debt | 10,217 | |
Other non-cash adjustments | 4,481 | 4,895 |
Increase (decrease) in cash resulting from changes in operating assets and liabilities | ||
Accounts receivable | 7,657 | 6,494 |
Inventories | (12,455) | (2,074) |
Other assets | (18,277) | (5,907) |
Accounts payable | (7,744) | (8,876) |
Accrued liabilities | 5,984 | 13,404 |
Other liabilities | 66,490 | 2,315 |
Net cash provided by operating activities | 185,826 | 191,627 |
Cash flows from investing activities: | ||
Purchase of property, equipment and satellites | (206,627) | (260,033) |
Cash paid for patents, licenses and other assets | (36,969) | (38,430) |
Other investing activities | (649) | |
Net cash used in investing activities | (243,596) | (299,112) |
Cash flows from financing activities: | ||
Payment of debt issuance costs | (8,735) | (6,583) |
Proceeds from issuance of common stock under equity plans | 14,871 | 14,487 |
Purchase of common stock in treasury (immediately retired) related to tax withholdings for stock-based compensation | (2,483) | (2,504) |
Other financing activities | (757) | (761) |
Net cash provided by financing activities | 169,797 | 116,875 |
Effect of exchange rate changes on cash | 583 | (203) |
Net increase in cash and cash equivalents | 112,610 | 9,187 |
Cash and cash equivalents at beginning of period | 130,098 | 42,088 |
Cash and cash equivalents at end of period | 242,708 | 51,275 |
Non-cash investing and financing activities: | ||
Issuance of common stock in satisfaction of certain accrued employee compensation liabilities | 16,409 | 13,080 |
Capital expenditures not paid for | 13,003 | 19,923 |
Revolving Credit Facility [Member] | ||
Cash flows from financing activities: | ||
Proceeds from credit facility borrowings | 90,000 | |
Payments of revolving credit facility borrowings | (45,000) | |
Ex-Im Credit Facility [Member] | ||
Cash flows from financing activities: | ||
Proceeds from credit facility borrowings | 52,503 | 67,236 |
Non-cash investing and financing activities: | ||
Exposure fees on Ex-Im credit facility financed through Ex-Im credit facility | 5,764 | $ 7,382 |
2025 Notes [Member] | ||
Cash flows from financing activities: | ||
Proceeds from issuance of 2025 Notes | 700,000 | |
2020 Notes [Member] | ||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Loss on extinguishment of debt | 10,217 | |
Cash flows from financing activities: | ||
Repayment of 2020 Notes | (575,000) | |
Payment of debt extinguishment costs | $ (10,602) |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Equity (Unaudited) - 6 months ended Sep. 30, 2017 - USD ($) $ in Thousands | Total | Common Stock [Member] | Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest in Subsidiaries [Member] |
Beginning balance at Mar. 31, 2017 | $ 1,737,931 | $ 6 | $ 1,439,645 | $ 297,471 | $ (2,504) | $ 3,313 |
Beginning balance, shares at Mar. 31, 2017 | 57,600,609 | |||||
Exercise of stock options | 8,854 | 8,854 | ||||
Exercise of stock options, shares | 200,225 | |||||
Issuance of stock under Employee Stock Purchase Plan | 6,017 | 6,017 | ||||
Issuance of stock under Employee Stock Purchase Plan, shares | 106,937 | |||||
Stock-based compensation | 35,078 | 35,078 | ||||
Shares issued in settlement of certain accrued employee compensation liabilities | 16,409 | 16,409 | ||||
Shares issued in settlement of certain accrued employee compensation liabilities, shares | 228,791 | |||||
RSU awards vesting, net of shares withheld for taxes which have been retired | (2,483) | (2,483) | ||||
RSU awards vesting, net of shares withheld for taxes which have been retired, shares | 70,075 | |||||
Other noncontrolling interest activity | 29 | 29 | ||||
Net loss | (23,138) | (22,728) | (410) | |||
Other comprehensive income, net of tax | 9,955 | 9,955 | ||||
Ending balance at Sep. 30, 2017 | 1,847,773 | $ 6 | 1,504,630 | 332,754 | $ 7,451 | $ 2,932 |
Ending balance, shares at Sep. 30, 2017 | 58,206,637 | |||||
Cumulative effect adjustment upon adoption of new stock compensation guidance (ASU 2016-09) | $ 59,121 | $ 1,110 | $ 58,011 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1 — Basis of Presentation The accompanying condensed consolidated balance sheet at September 30, 2017, the condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended September 30, 2017 and 2016, the condensed consolidated statements of cash flows for the six months ended September 30, 2017 and 2016 and the condensed consolidated statement of equity for the six months ended September 30, 2017 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, 2017 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, 2017 included in the Company’s Annual Report on Form 10-K. Interim operating results are not necessarily indicative of operating results for the full year. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (GAAP). The Company’s condensed consolidated financial statements include the assets, liabilities and results of operations of ViaSat, its wholly owned subsidiaries and its majority-owned subsidiaries, TrellisWare Technologies, Inc. (TrellisWare) and Euro Broadband Retail Sàrl (Euro Retail Co.). All significant intercompany amounts have been eliminated. Investments in entities in which the Company can exercise significant influence, but does not own a majority equity interest or otherwise control, are accounted for using the equity method and are included as investment in unconsolidated affiliate in other assets (long-term) on the condensed consolidated balance sheets. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting period. Estimates have been prepared on the basis of the most current and best available information and actual results could differ from those estimates. Significant estimates made by management include revenue recognition, stock-based compensation, self-insurance reserves, allowance for doubtful accounts, warranty accruals, valuation of goodwill and other intangible assets, patents, orbital slots and other licenses, software development, property, equipment and satellites, long-lived assets, derivatives, contingencies and income taxes including the valuation allowance on deferred tax assets. Revenue recognition A substantial portion of the Company’s revenues is derived from long-term contracts requiring development and delivery of complex equipment built to customer specifications. Sales related to long-term contracts are accounted for under the authoritative guidance for the percentage-of-completion method of accounting (Accounting Standards Codification (ASC) 605-35). Sales and earnings under these contracts are recorded either based on the ratio of actual costs incurred to date to total estimated costs expected to be incurred related to the contract, or as products are shipped under the units-of-delivery method. Anticipated losses on contracts are recognized in full in the period in which losses become probable and estimable. Changes in estimates of profit or loss on contracts are included in earnings on a cumulative basis in the period the estimate is changed. During the three months ended September 30, 2017 and 2016, the Company recorded losses of approximately $1.5 million and $1.6 million, respectively, related to loss contracts. During the six months ended September 30, 2017 and 2016, the Company recorded losses of approximately $3.7 million and $2.0 million, respectively, related to loss contracts. The Company also derives a substantial portion of its revenues from contracts and purchase orders where revenue is recorded on delivery of products or performance of services in accordance with the authoritative guidance for revenue recognition (ASC 605). Under this standard, the Company recognizes revenue when an arrangement exists, prices are determinable, collectability is reasonably assured and the goods or services have been delivered. The Company also enters into certain leasing arrangements with customers and evaluates the contracts in accordance with the authoritative guidance for leases (ASC 840). The Company’s accounting for equipment leases involves specific determinations under the authoritative guidance for leases, which often involve complex provisions and significant judgments. In accordance with the authoritative guidance for leases, the Company classifies the transactions as sales type or operating leases based on: (1) review for transfers of ownership of the equipment to the lessee by the end of the lease term, (2) review of the lease terms to determine if it contains an option to purchase the leased equipment for a price which is sufficiently lower than the expected fair value of the equipment at the date of the option, (3) review of the lease term to determine if it is equal to or greater than 75% of the economic life of the equipment, and (4) review of the present value of the minimum lease payments to determine if they are equal to or greater than 90% of the fair market value of the equipment at the inception of the lease. Additionally, the Company considers the cancelability of the contract and any related uncertainty of collections or risk in recoverability of the lease investment at lease inception. Revenue from sales type leases is recognized at the inception of the lease or when the equipment has been delivered and installed at the customer site, if installation is required. Revenues from equipment rentals under operating leases are recognized as earned over the lease term, which is generally on a straight-line basis. In accordance with the authoritative guidance for revenue recognition for multiple element arrangements, the Accounting Standards Update (ASU) 2009-13 (ASU 2009-13), Revenue Recognition (ASC 605) Multiple-Deliverable Revenue Arrangements, which updates ASC 605-25, Revenue Recognition-Multiple element arrangements, of the Financial Accounting Standards Board (FASB) codification, for substantially all of the arrangements with multiple deliverables, the Company allocates revenue to each element based on a selling price hierarchy at the arrangement inception. The selling price for each element is based upon the following selling price hierarchy: vendor specific objective evidence (VSOE) if available, third-party evidence (TPE) if VSOE is not available, or estimated selling price (ESP) if neither VSOE nor TPE are available (a description as to how the Company determines VSOE, TPE and ESP is provided below). If a tangible hardware systems product includes software, the Company determines whether the tangible hardware systems product and the software work together to deliver the product’s essential functionality and, if so, the entire product is treated as a nonsoftware deliverable. The total arrangement consideration is allocated to each separate unit of accounting for each of the nonsoftware deliverables using the relative selling prices of each unit based on the aforementioned selling price hierarchy. Revenue for each separate unit of accounting is recognized when the applicable revenue recognition criteria for each element have been met. To determine the selling price in multiple-element arrangements, the Company establishes VSOE of the selling price using the price charged for a deliverable when sold separately. The Company also considers specific renewal rates offered to customers for software license updates, product support and hardware systems support, and other services. For nonsoftware multiple-element arrangements, TPE is established by evaluating similar and/or interchangeable competitor products or services in standalone arrangements with similarly situated customers and/or agreements. If the Company is unable to determine the selling price because VSOE or TPE doesn’t exist, the Company determines ESP for the purposes of allocating the arrangement by reviewing historical transactions, including transactions whereby the deliverable was sold on a standalone basis and considers several other external and internal factors including, but not limited to, pricing practices including discounting, margin objectives, competition, the geographies in which the Company offers its products and services, the type of customer (i.e., distributor, value added reseller, government agency or direct end user, among others), volume commitments and the stage of the product lifecycle. The determination of ESP considers the Company’s pricing model and go-to-market strategy. As the Company’s, or its competitors’, pricing and go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to its determination of VSOE, TPE and ESP. As a result, the Company’s future revenue recognition for multiple-element arrangements could differ materially from those in the current period. In accordance with the authoritative guidance for shipping and handling fees and costs (ASC 605-45), the Company records shipping and handling costs billed to customers as a component of revenues, and shipping and handling costs incurred by the Company for inbound and outbound freight as a component of cost of revenues. Collections in excess of revenues and deferred revenues represent cash collected from customers in advance of revenue recognition and are recorded in accrued liabilities for obligations within the next 12 months. Amounts for obligations extending beyond 12 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 years 2016 and 2017. As of September 30, 2017, 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 September 30, 2017 and March 31, 2017, the Company had $1.3 million and $1.8 million, respectively, in contract-related reserves for its estimate of potential refunds to customers for potential cost adjustments on several multi-year U.S. government cost reimbursable contracts (see Note 8). Advertising costs In accordance with the authoritative guidance for advertising costs (ASC 720-35), advertising costs are expensed as incurred and included in selling, general and administrative (SG&A) expenses. Advertising expenses for the three months ended September 30, 2017 and 2016 were $2.3 million and $0.8 million, respectively, and for the six months ended September 30, 2017 and 2016 were $3.5 million and $1.6 million, respectively. Commissions The Company compensates third parties based on specific commission programs directly related to certain product and service sales, and these commissions costs are expensed as incurred. Property, equipment and satellites Satellites and other property and equipment are recorded at cost or, in the case of certain satellites and other property acquired, the fair value at the date of acquisition, net of accumulated depreciation. Capitalized satellite costs consist primarily of the costs of satellite construction and launch, including launch insurance and insurance during the period of in-orbit testing, the net present value of performance incentives expected to be payable to satellite manufacturers (dependent on the continued satisfactory performance of the satellites), costs directly associated with the monitoring and support of satellite construction, and interest costs incurred during the period of satellite construction. The Company also constructs earth stations, network operations systems and other assets to support its satellites, and those construction costs, including interest, are capitalized as incurred. At the time satellites are placed in service, the Company estimates the useful life of its satellites for depreciation purposes based upon an analysis of each satellite’s performance against the original manufacturer’s orbital design life, estimated fuel levels and related consumption rates, as well as historical satellite operating trends. Costs related to internally developed software for internal uses are capitalized after the preliminary project stage is complete and are amortized over the estimated useful lives of the assets. Costs incurred for additions to property, equipment and satellites, together with major renewals and betterments, are capitalized and depreciated over the remaining life of the underlying asset. Costs incurred for maintenance, repairs and minor renewals and betterments are charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the accounts and any resulting gain or loss is recognized in operations, which for the periods presented, primarily related to losses incurred for unreturned customer premise equipment (CPE). The Company computes depreciation using the straight-line method over the estimated useful lives of the assets ranging from two to 24 years. Leasehold improvements are capitalized and amortized using the straight-line method over the shorter of the lease term or the life of the improvement. Interest expense is capitalized on the carrying value of assets under construction, in accordance with the authoritative guidance for the capitalization of interest (ASC 835-20). With respect to assets under construction, including the ViaSat-2 satellite and related gateway and networking equipment (which commenced construction during the first quarter of fiscal year 2014), and the ViaSat-3 class satellites (which commenced construction during the fourth quarter of fiscal year 2016), the Company capitalized $16.1 million and $11.6 million of interest expense for the three months ended September 30, 2017 and 2016, respectively, and capitalized $30.7 million and $21.8 million of interest expense for the six months ended September 30, 2017 and 2016, respectively. The Company owns two satellites in service: ViaSat-1 (its first-generation high-capacity Ka-band spot-beam satellite, which was placed into service in January 2012) and WildBlue-1 (which was placed into service in March 2007). On June 1, 2017, the Company’s second-generation ViaSat-2 satellite was successfully launched into orbit, and the satellite manufacturer will transfer operation of the satellite to the Company following the successful completion of orbit raising, orbital placement and in-orbit testing. The Company currently has two third-generation ViaSat-3 class satellites under construction. The Company also has an exclusive prepaid lifetime capital lease of Ka-band capacity over the contiguous United States on Telesat Canada’s Anik F2 satellite (which was placed into service in April 2005) and owns related earth stations and networking equipment for all of its satellites. The Company periodically reviews the remaining estimated useful life of its satellites to determine if revisions to estimated lives are necessary. The Company procures indoor and outdoor CPE units leased to subscribers under a retail leasing program as part of the Company’s satellite services segment, which are reflected in investing activities and property and equipment in the accompanying condensed consolidated financial statements. The Company depreciates the satellites, earth stations and networking equipment, CPE units and related installation costs over their estimated useful lives. The total cost and accumulated depreciation of CPE units included in property and equipment, net, as of September 30, 2017 were $260.2 million and $162.4 million, respectively. The total cost and accumulated depreciation of CPE units included in property and equipment, net, as of March 31, 2017 were $271.9 million and $158.2 million, respectively. Occasionally, the Company may enter into capital lease arrangements for various machinery, equipment, computer-related equipment, software, furniture or fixtures. The Company records amortization of assets leased under capital lease arrangements within depreciation expense. Patents, orbital slots and other licenses The Company capitalizes the costs of obtaining or acquiring patents, orbital slots and other licenses. Amortization of intangible assets that have finite lives is provided for by the straight-line method over the shorter of the legal or estimated economic life. Total capitalized costs of $3.2 million related to patents were included in other assets as of September 30, 2017 and March 31, 2017. The Company capitalized costs of $15.4 million related to acquiring and obtaining orbital slots and other licenses included in other assets as of September 30, 2017 and March 31, 2017. Accumulated amortization related to these assets was $2.3 million and $2.1 million as of September 30, 2017 and March 31, 2017, respectively. Amortization expense related to these assets was an insignificant amount for the three and six months ended September 30, 2017 and 2016. 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 six months ended September 30, 2017 and 2016, 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 September 30, 2017 and 2016, $9.8 million and an insignificant amount, respectively, of debt issuance costs were capitalized. During the six months ended September 30, 2017 and 2016, $9.8 million and $6.1 million, 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 (loss). Debt issuance costs related to the Company’s revolving credit facility (the Revolving Credit Facility) are recorded in prepaid expenses and other current assets and in other long-term assets in the condensed consolidated balance sheets in accordance with the authoritative guidance for imputation of interest (ASC 835-30). Debt issuance costs related to the Company’s 5.625% Senior Notes due 2025 (the 2025 Notes) and the Company’s direct loan facility with the Export-Import Bank of the United States for ViaSat-2 (the Ex-Im Credit Facility) are recorded as a direct deduction from the carrying amount of the related debt, consistent with debt discounts, in accordance with the authoritative guidance for imputation of interest (ASC 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 $225.2 million and $203.7 million related to software developed for resale were included in other assets as of September 30, 2017 and March 31, 2017, respectively. The Company capitalized $20.0 million and $37.8 million of costs related to software developed for resale for the three and six months ended September 30, 2017, respectively. The Company capitalized $19.7 million and $40.7 million of costs related to software developed for resale for the three and six months ended September 30, 2016, respectively. Amortization expense for capitalized software development costs was $6.6 million and $16.3 million for the three and six months ended September 30, 2017, respectively, and $8.7 million and $16.4 million for the three and six months ended September, 30, 2016, 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 $4.2 million in accrued liabilities in the condensed consolidated balance sheets as of September 30, 2017 and March 31, 2017, 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 September 30, 2017 and March 31, 2017, no such amounts were accrued related to the aforementioned provisions. Noncontrolling interests A noncontrolling interest represents the equity interest in a subsidiary that is not attributable, either directly or indirectly, to the Company and is reported as equity of the Company, 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. Investments in unconsolidated affiliate — equity method Investments in entities in which the Company can exercise significant influence, but does not own a majority equity interest or otherwise control, are accounted for using the equity method and are included as investment in unconsolidated affiliate in other assets (long-term) on the condensed consolidated balance sheets. The Company records its share of the results of such entities within equity in income (losses) of unconsolidated affiliate, net on the condensed consolidated statements of operations and comprehensive income (loss). The Company monitors such investments for other-than-temporary impairment by considering factors including the current economic and market conditions and the operating performance of the entities and records reductions in carrying values when necessary. The fair value of privately held investments is estimated using the best available information as of the valuation date, including current earnings trends, undiscounted cash flows, quoted stock prices of comparable public companies, and other company specific information, including recent financing rounds. Common stock held in treasury As of September 30, 2017 and March 31, 2017, the Company had no shares of common stock held in treasury. During the six months ended September 30, 2017 and 2016, the Company issued 106,741 and 102,103 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, during the six months ended September 30, 2017 and 2016, the Company repurchased 36,666 and 34,204 shares of common stock, respectively, at cost and in each instance with a total value of $2.5 million. The shares of common stock repurchased during the six months ended September 30, 2017 and 2016 were immediately retired. 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. 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. 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 and six months ended September 30, 2017 and 2016, the Company settled certain foreign exchange contracts and in connection therewith for each period recognized an insignificant gain or loss recorded in cost of revenues based on the nature of the underlying transactions. The fair value of the Company’s foreign currency forward contracts was an insignificant amount recorded as an other current asset as of September 30, 2017 and as an accrued liability as of March 31, 2017. The notional value of foreign currency forward contracts outstanding as of September 30, 2017 and March 31, 2017 was $1.5 million and $2.6 million, respectively. At September 30, 2017, 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 12 months was insignificant. The Company’s foreign currency forward contracts outstanding as of September 30, 2017 will mature within approximately 30 to 36 months from their inception. There were no gains or losses from ineffectiveness of these derivative instruments recorded for the three and six months ended September 30, 2017 and 2016. 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. Effective April 1, 2017, the Company adopted a change in accounting policy in accordance with ASU 2016-09, Compensation — Stock Compensation (ASC 718) to account for forfeitures as they occur. Prior to April 1, 2017, forfeitures were estimated at the date of grant and revised, if necessary, in subsequent periods if actual forfeitures differed from those estimates. The Company recognized $16.0 million and $31.5 million of stock-based compensation expense for the three and six months ended September 30, 2017, respectively. The Company recognized $12.6 million and $25.4 million of stock-based compensation expense for the three and six months ended September 30, 2016, respectively. Effective April 1, 2017, in accordance with ASU 2016-09, on a prospective basis, the Company recognizes excess tax benefits or deficiencies on vesting or settlement of awards as discrete items within income tax benefit or provision within net income (loss) and the related cash flows classified within operating activities. Prior to April 1, 2017 any unrealized excess tax benefits were tracked off the balance sheet and recognition of the benefits was deferred until realized through a reduction in taxes payable. When the excess tax benefits or deficiencies were realized, they were recognized in paid-in-capital and the related cash flows were classified as an outflow from operating activities and an inflow from financing activities. For the three months ended September 30, 2017 the Company recorded an insignificant amount of incremental tax deficiencies from stock options exercised and restricted stock unit awards released as an income tax expense. For the six months ended September 30, 2017 the Company recorded an insignificant amount of incremental tax benefits from stock options exercised and restricted stock unit awards released as an income tax benefit. For the three and six months ended September 30, 2016, the Company recorded no incremental tax benefits from stock options exercised and restricted stock unit awards released as the excess tax benefit from stock options exercised and restricted stock unit awards released 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 |
Composition of Certain Balance
Composition of Certain Balance Sheet Captions | 6 Months Ended |
Sep. 30, 2017 | |
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 $ 157,903 $ 145,626 Unbilled 96,528 119,565 Allowance for doubtful accounts (2,552 ) (1,470 ) $ 251,879 $ 263,721 Inventories: Raw materials $ 59,008 $ 56,096 Work in process 42,216 25,820 Finished goods 80,175 81,285 $ 181,399 $ 163,201 Prepaid expenses and other current assets: Prepaid expenses $ 61,841 $ 51,856 Other 10,548 5,980 $ 72,389 $ 57,836 Satellites, net: Satellites (estimated useful life of 10-17 years) $ 551,201 $ 559,380 Capital lease of satellite capacity — Anik F2 (estimated useful life of 10 years) 99,090 99,090 Satellites under construction 858,246 776,354 1,508,537 1,434,824 Less: accumulated depreciation and amortization (345,686 ) (326,554 ) $ 1,162,851 $ 1,108,270 Property and equipment, net: Equipment and software (estimated useful life of 2-7 years) $ 741,635 $ 679,008 CPE leased equipment (estimated useful life of 4-5 years) 260,219 271,917 Furniture and fixtures (estimated useful life of 7 years) 32,430 30,539 Leasehold improvements (estimated useful life of 2-17 years) 89,456 80,727 Building (estimated useful life of 24 years) 8,923 8,923 Land 14,573 14,573 Construction in progress 140,667 116,902 1,287,903 1,202,589 Less: accumulated depreciation (710,386 ) (661,981 ) $ 577,517 $ 540,608 Other acquired intangible assets, net: Technology (weighted average useful life of 6 years) $ 89,580 $ 87,592 Contracts and customer relationships (weighted average useful life of 7 years) 103,540 103,034 Satellite co-location rights (weighted average useful life of 9 years) 8,600 8,600 Trade name (weighted average useful life of 3 years) 5,940 5,940 Other (weighted average useful life of 6 years) 10,065 9,925 217,725 215,091 Less: accumulated amortization (180,929 ) (173,414 ) $ 36,796 $ 41,677 Other assets: Investment in unconsolidated affiliate $ 153,973 $ 141,894 Deferred income taxes 209,477 134,764 Capitalized software costs, net 225,163 203,686 Patents, orbital slots and other licenses, net 16,300 16,500 Other 37,177 32,522 $ 642,090 $ 529,366 Accrued liabilities: Collections in excess of revenues and deferred revenues $ 86,293 $ 76,682 Accrued employee compensation 25,774 41,691 Accrued vacation 34,311 33,214 Warranty reserve, current portion 6,514 7,796 Other 54,108 65,576 $ 207,000 $ 224,959 Other liabilities: Deferred revenue, long-term portion $ 71,666 $ 4,617 Deferred rent, long-term portion 12,219 10,743 Warranty reserve, long-term portion 2,145 3,262 Satellite performance incentives obligation, long-term portion 18,700 19,164 Deferred income taxes, long-term 566 1,936 Other 7,683 3,000 $ 112,979 $ 42,722 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 3 — Fair Value Measurements In accordance with the authoritative guidance for financial assets and liabilities measured at fair value on a recurring basis (ASC 820), the Company prioritizes the inputs used to measure fair value from market-based assumptions to entity specific assumptions: • Level 1 — Inputs based on quoted market prices for identical assets or liabilities in active markets at the measurement date. • Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Inputs which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation. The following tables present the Company’s hierarchy for its assets measured at fair value on a recurring basis as of September 30, 2017 and assets and liabilities measured at fair value on a recurring basis as of March 31, 2017. The Company had no liabilities measured at fair value on a recurring basis as of September 30, 2017: Fair Value as of Level 1 Level 2 Level 3 (In thousands) Assets: Cash equivalents $ 1,006 $ 1,006 $ — $ — Foreign currency forward contracts 80 — 80 — Total assets measured at fair value on a recurring basis $ 1,086 $ 1,006 $ 80 $ — 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 $ 96 $ — $ 96 $ — Total liabilities measured at fair value on a recurring basis $ 96 $ — $ 96 $ — The following section describes the valuation methodologies the Company uses to measure financial instruments at fair value: Cash equivalents Foreign currency forward contracts Long-term debt Satellite performance incentives obligation |
Shares Used In Computing Dilute
Shares Used In Computing Diluted Net (Loss) Income Per Share | 6 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Shares Used In Computing Diluted Net (Loss) Income Per Share | Note 4 — Shares Used In Computing Diluted Net (Loss) Income Per Share Three Months Ended Six Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 (In thousands) Weighted average: Common shares outstanding used in calculating basic net (loss) income per share attributable to ViaSat, Inc. common stockholders 58,229 49,503 58,039 49,319 Options to purchase common stock as determined by application of the treasury stock method — 276 — 281 Restricted stock units to acquire common stock as determined by application of the treasury stock method — 669 — 637 Potentially issuable shares in connection with certain terms of the ViaSat 401(k) Profit Sharing Plan and Employee Stock Purchase Plan — 85 — 156 Shares used in computing diluted net (loss) income per share attributable to ViaSat, Inc. common stockholders 58,229 50,533 58,039 50,393 The weighted average number of shares used to calculate basic and diluted net loss per share attributable to ViaSat, Inc. common stockholders is the same for the three and six months ended September 30, 2017, as the Company incurred a net loss attributable to ViaSat, Inc. common stockholders for such periods and inclusion of potentially dilutive weighted average shares of common stock would be antidilutive. Potentially dilutive weighted average shares of common stock excluded from the calculation for the three and six months ended September 30, 2017 were 1,400,231 and 1,381,582 shares relating to stock options, respectively, 598,245 and 545,821 shares relating to restricted stock units, respectively, and 114,770 and 159,524 shares relating to certain terms of the ViaSat 401(k) Profit Sharing Plan and Employee Stock Purchase Plan, respectively. Antidilutive shares relating to stock options excluded from the calculation comprised 413,750 and 398,771 shares for the three and six months ended September 30, 2016, respectively. Antidilutive shares relating to restricted stock units excluded from the calculation comprised zero shares for the three and six months ended September 30, 2016. |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 6 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets | Note 5 — Goodwill and Acquired Intangible Assets During the six months ended September 30, 2017, the Company’s goodwill increased by $0.7 million, which related to the effects of foreign currency translation recorded within all three of the Company’s segments. Other acquired intangible assets are amortized using the straight-line method over their estimated useful lives of two to ten years. Amortization expense related to other acquired intangible assets was $3.3 million and $2.3 million for the three months ended September 30, 2017 and 2016, respectively, and $6.6 million and $4.8 million for the six months ended September 30, 2017 and 2016, 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 six months ended September 30, 2017 $ 6,580 Expected for the remainder of fiscal year 2018 $ 5,518 Expected for fiscal year 2019 9,411 Expected for fiscal year 2020 7,593 Expected for fiscal year 2021 5,186 Expected for fiscal year 2022 3,362 Amortization (In thousands) Thereafter 5,726 $ 36,796 |
Senior Notes and Other Long-Ter
Senior Notes and Other Long-Term Debt | 6 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 and March 31, 2017: As of As of (In thousands) 2025 Notes $ 700,000 $ — 2020 Notes — 575,000 Revolving Credit Facility — — Ex-Im Credit Facility (1) 362,401 304,134 Other 295 288 Total debt 1,062,696 879,422 Unamortized premium/(discount and debt issuance costs), net (1) (43,279 ) (30,651 ) Less: current portion of long-term debt 22,945 288 Total long-term debt $ 996,472 $ 848,483 (1) As of March 31, 2017, included in Ex-Im Credit Facility and in unamortized discount and debt issuance costs on the Ex-Im Credit Facility was $29.5 million and $23.0 million, respectively, relating to the exposure fees accrued as of such date and subsequently financed under the Ex-Im Credit Facility. Revolving Credit Facility As of September 30, 2017, 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. 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 September 30, 2017, 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 September 30, 2017. At September 30, 2017, the Company had no outstanding borrowings under the Revolving Credit Facility and $30.1 million outstanding under standby letters of credit, leaving borrowing availability under the Revolving Credit Facility as of September 30, 2017 of $769.9 million. Ex-Im Credit Facility As of September 30, 2017, the Ex-Im Credit Facility provided a $362.4 million senior secured direct loan facility, which was fully drawn. Of the $362.4 million in principal amount of borrowings made under the Ex-Im Credit Facility, $321.2 million was used to finance up to 85% of the costs of construction, launch and insurance of the ViaSat-2 satellite and related goods and services (including costs incurred on or after September 18, 2012), with the remaining $41.2 million used to finance the total exposure fees incurred under the Ex-Im Credit Facility (which includes all previously accrued completion exposure fees). Borrowings under the Ex-Im Credit Facility bear interest at a fixed rate of 2.38% and are required to be repaid in 16 approximately equal semi-annual installments, commencing approximately six months after the in-orbit acceptance date of the ViaSat-2 satellite (or, if earlier, on April 15, 2018), with a maturity date of October 15, 2025. Exposure fees under the Ex-Im Credit Facility are amortized using the effective interest rate method. The effective interest rate on the Company’s outstanding borrowings under the Ex-Im Credit Facility, which takes into account timing and amount of borrowings, exposure fees, debt issuance costs and other fees, was approximately 4.6%. The Ex-Im Credit Facility is guaranteed by ViaSat and is secured by first-priority liens on the ViaSat-2 satellite and related assets, as well as a pledge of the capital stock of the borrower under the facility. The Ex-Im Credit Facility contains financial covenants regarding ViaSat’s maximum total leverage ratio and minimum interest coverage ratio. In addition, the Ex-Im Credit Facility contains covenants that restrict, among other things, the Company’s ability to sell assets, make investments and acquisitions, make capital expenditures, grant liens, pay dividends and make certain other restricted payments. The Company was in compliance with its financial covenants under the Ex-Im Credit Facility as of September 30, 2017. Borrowings under the Ex-Im Credit Facility were issued with a discount of $42.3 million (comprising the initial $6.0 million exposure fee, $35.3 million of completion exposure fees, and other customary fees). Borrowings under the Ex-Im Credit Facility are recorded as current portion of long-term debt and as other long-term debt, net of unamortized discount and debt issuance costs, in the Company’s condensed consolidated financial statements. The discount and deferred financing cost associated with the issuance of the borrowings under the Ex-Im Credit Facility is amortized to interest expense on an effective interest rate basis over the term of the borrowings under the Ex-Im Credit Facility. Senior Notes Discharge of indenture and loss on extinguishment of debt In connection with the Company’s issuance of the 2025 Notes on September 21, 2017, the Company repurchased and redeemed all of its $575.0 million in aggregate principal amount of 2020 Notes then outstanding through a cash tender offer and redemption, and the indenture governing the 2020 Notes was satisfied and discharged in accordance with its terms. On September 21, 2017, the Company repurchased $298.2 million in aggregate principal amount of the 2020 Notes pursuant to the tender offer. The total cash payment to repurchase the tendered 2020 Notes in the tender offer, including accrued and unpaid interest to, but excluding, the repurchase date, was $309.3 million. Also on September 21, 2017, in connection with the redemption of the remaining $276.8 million in aggregate principal amount of 2020 Notes, the Company irrevocably deposited $287.4 million with Wilmington Trust, as trustee, as trust funds solely for the benefit of the holders of such 2020 Notes. The redemption price for the 2020 Notes was 101.719% of the principal amount so redeemed, plus accrued and unpaid interest to, but excluding, the redemption date of October 5, 2017. In connection with the satisfaction and discharge of the indenture governing the 2020 Notes, all of the obligations of the Company (other than certain customary provisions of the indenture that expressly survive pursuant to the terms of the indenture) were discharged on September 21, 2017. As a result of the repurchase of the 2020 Notes in the tender offer and the redemption of the remaining 2020 Notes, the Company recognized a $10.2 million loss on extinguishment of debt during the three and six months ended September 30, 2017, which was comprised of $10.6 million in cash payments (including tender offer consideration, redemption premium and related professional fees), net of $0.4 million in non-cash gain (including unamortized premium, net of unamortized debt issuance costs). Senior Notes due 2025 On September 21, 2017, the Company issued $700.0 million in principal amount of 2025 Notes in a private placement to institutional buyers. The 2025 Notes were issued at face value and are recorded as long-term debt, net of debt issuance costs, in the Company’s condensed consolidated financial statements. The 2025 Notes bear interest at the rate of 5.625% per year, payable semi-annually in cash in arrears, which interest payments will commence in March 2018. Debt issuance costs associated with the issuance of the 2025 Notes are amortized to interest expense on a straight-line basis over the term of the 2025 Notes, the results of which are not materially different from the effective interest rate basis. The 2025 Notes are required to be guaranteed on an unsecured senior basis by each of the Company’s existing and future subsidiaries that guarantees the Revolving Credit Facility. As of September 30, 2017, none of the Company’s subsidiaries guaranteed the 2025 Notes. The 2025 Notes are the Company’s general senior unsecured obligations and rank equally in right of payment with all of the Company’s existing and future unsecured unsubordinated debt. The 2025 Notes are effectively junior in right of payment to the Company’s existing and future secured debt, including under the Credit Facilities (to the extent of the value of the assets securing such debt), are structurally subordinated to all existing and future liabilities (including trade payables) of the Company’s subsidiaries that do not guarantee the 2025 Notes, and are senior in right of payment to all of their existing and future subordinated indebtedness. The indenture governing the 2025 Notes limits, among other things, the Company’s and its restricted subsidiaries’ ability to: incur, assume or guarantee additional debt; issue redeemable stock and preferred stock; pay dividends, make distributions or redeem or repurchase capital stock; prepay, redeem or repurchase subordinated debt; make loans and investments; grant or incur liens; restrict dividends, loans or asset transfers from restricted subsidiaries; sell or otherwise dispose of assets; enter into transactions with affiliates; reduce the Company’s satellite insurance; and consolidate or merge with, or sell substantially all of their assets to, another person. Prior to September 15, 2020, the Company may redeem up to 40% of the 2025 Notes at a redemption price of 105.625% of the principal amount thereof, plus accrued and unpaid interest, if any, thereon to the redemption date, from the net cash proceeds of specified equity offerings. The Company may also redeem the 2025 Notes prior to September 15, 2020, in whole or in part, at a redemption price equal to 100% of the principal amount thereof plus the applicable premium and any accrued and unpaid interest, if any, thereon to the redemption date. The applicable premium is calculated as the greater of: (i) 1.0% of the principal amount of such 2025 Notes and (ii) the excess, if any, of (a) the present value at such date of redemption of (1) the redemption price of such 2025 Notes on September 15, 2020 plus (2) all required interest payments due on such 2025 Notes through September 15, 2020 (excluding accrued but unpaid interest to the date of redemption), computed using a discount rate equal to the treasury rate (as defined under the indenture) plus 50 basis points, over (b) the then-outstanding principal amount of such 2025 Notes. The 2025 Notes may be redeemed, in whole or in part, at any time during the 12 months beginning on September 15, 2020 at a redemption price of 102.813%, during the 12 months beginning on September 15, 2021 at a redemption price of 101.406%, and at any time on or after September 15, 2022 at a redemption price of 100%, in each case plus accrued and unpaid interest, if any, thereon to the redemption date. In the event a change of control triggering event occurs (as defined in the indenture), each holder will have the right to require the Company to repurchase all or any part of such holder’s 2025 Notes at a purchase price in cash equal to 101% of the aggregate principal amount of the 2025 Notes repurchased, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date). |
Product Warranty
Product Warranty | 6 Months Ended |
Sep. 30, 2017 | |
Guarantees and Product Warranties [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 12 months are classified as accrued liabilities and amounts expected to be incurred beyond 12 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 six months ended September 30, 2017 and 2016: Six Months Ended September 30, 2017 September 30, 2016 (In thousands) Balance, beginning of period $ 11,058 $ 11,434 Change in liability for warranties issued in period 218 4,167 Settlements made (in cash or in kind) during the period (2,617 ) (4,235 ) Balance, end of period $ 8,659 $ 11,366 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8 — Commitments and Contingencies In May 2013, the Company entered into an agreement to purchase the ViaSat-2 satellite from The Boeing Company (Boeing) at a price of approximately $358.0 million, plus an additional amount for launch support services to be performed by Boeing. In April 2017, the satellite construction agreement was amended to replace the remaining milestone payments for the satellite under the agreement with approximately $21.0 million of in-orbit satellite performance incentives payments, excluding interest, payable monthly over a nine-year period commencing one month after the completion of in-orbit testing, subject to the continued satisfactory performance of the satellite. As of September 30, 2017, the Company had two separate agreements with Boeing for the construction and purchase of two ViaSat-3 class satellites and the integration of ViaSat’s payload technologies into the satellites at an amended price of approximately $379.5 million in the aggregate (subject to purchase price adjustments based on factors such as launch delay and early delivery), plus an additional amount for launch support services to be performed by Boeing. In addition, under one of these agreements, the Company has the option to order up to two additional ViaSat-3 class satellites. The first ViaSat-3 class satellite is expected to provide broadband services over the Americas, and the second is expected to provide broadband services over Europe, the Middle East and Africa. From time to time, the Company is involved in a variety of claims, suits, investigations and proceedings arising in the ordinary course of business, including government investigations and claims, and other claims and proceedings with respect to intellectual property, breach of contract, labor and employment, tax and other matters. Such matters could result in fines; penalties, compensatory, treble or other damages; or non-monetary relief. A violation of government contract laws and regulations could also result in the termination of its government contracts or debarment from bidding on future government contracts. Although claims, suits, investigations and proceedings are inherently uncertain and their results cannot be predicted with certainty, the Company believes that the resolution of its current pending matters will not have a material adverse effect on its business, financial condition, results of operations or liquidity. In March 2016, the Company’s 52% 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 was investigating TrellisWare’s eligibility for certain prior government contracts and whether TrellisWare’s conduct in connection therewith violated the False Claims Act. An estimated loss contingency is accrued when it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. The Company regularly evaluates current information available to determine whether such accruals should be adjusted and whether new accruals are required. During the fourth quarter of fiscal year 2017, based on further developments in that investigation and TrellisWare’s discussions with the U.S. Attorney’s Office, the Company accrued a total loss contingency of $11.8 million in SG&A expenses in its government systems segment, which consisted of $11.4 million in uncharacterized damages and $0.4 million in penalties. The impact of the loss contingency on net income attributable to ViaSat, Inc. stockholders for fiscal year 2017, net of tax, was $4.0 million, with the related amount of $3.7 million recorded to net (loss) income attributable to noncontrolling interests, net of tax. As of September 30, 2017, the total loss contingency was recorded in accrued liabilities and other long term liabilities in the condensed consolidated balance sheet in the amounts of $8.8 million and $3.0 million, respectively. At this time, the Company cannot determine with certainty how or whether the TrellisWare investigation will conclude or whether this will be the final amount of damages and penalties. 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 years 2016 and 2017. As of September 30, 2017, 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 September 30, 2017 and March 31, 2017, the Company had $1.3 million and $1.8 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 | 6 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 — Income Taxes The Company calculates its provision for income taxes at the end of each interim reporting period on the basis of an estimated annual effective tax rate adjusted for tax items that are discrete to each period. For the three and six months ended September 30, 2017, the Company recorded an income tax benefit of $11.5 million and $20.6 million, respectively, resulting in an effective tax benefit rate of 43.9% and 46.9%, respectively. For the three and six months ended September 30, 2016, the Company recorded an income tax provision of $3.6 million and $4.4 million, respectively, resulting in an effective tax rate of 25.1% and 25.5%, respectively. The effective tax rates for the periods differed from the U.S. statutory rate due primarily to the benefit of research and development tax credits. The effective tax rate for the six months ended September 30, 2016 also reflects an increase in valuation allowances on state net operating losses and state research and development tax credits. When a reliable estimate of the annual effective tax rate cannot be made, the Company computes its provision for income taxes using the actual effective tax rate method for the year-to-date period. For the three and six months ended September 30, 2016, the Company used the actual effective tax rate method in calculating the income tax provision for the period as a reliable estimate of the annual effective tax rate could not be made. 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 six months ended September 30, 2017, the Company’s gross unrecognized tax benefits increased by $1.2 million and $2.4 million, respectively. In the next 12 months it is reasonably possible that the amount of unrecognized tax benefits will not change significantly. In accordance with the ASU 2016-09, which the Company adopted during the first quarter of fiscal year 2018, the Company recorded a cumulative effect adjustment as of the beginning of the first quarter of fiscal year 2018 to increase retained earnings by $58.7 million with a corresponding increase to deferred tax assets to recognize net operating loss carryforwards attributable to excess tax benefits on share-based compensation that had not been previously recognized. On a prospective basis, the Company recognizes excess tax benefits or deficiencies on vesting or settlement of awards as discrete items within income tax benefit or provision within net income (loss) and the related cash flows classified within operating activities. |
Equity Method Investments and R
Equity Method Investments and Related-Party Transactions | 6 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
Equity Method Investments and Related-Party Transactions | Note 10 — Equity Method Investments and Related-Party Transactions Eutelsat strategic partnering arrangement In March 2017, the Company acquired a 49% interest in Euro Broadband Infrastructure Sàrl (Euro Infrastructure Co.) for $139.5 million as part of the consummation of the Company’s strategic partnering arrangement with Eutelsat S.A. (together with its affiliates, Eutelsat). The Company’s investment in Euro Infrastructure Co. is accounted for under the equity method and the total investment, including basis difference allocated to tangible assets, identifiable intangible assets, deferred income taxes and goodwill, is classified as a single line item, as an investment in unconsolidated affiliate, on the Company’s condensed consolidated balance sheets. Because the underlying net assets in Euro Infrastructure Co. and the related excess carrying value of investment over the proportionate share of net assets are denominated in Euros, foreign currency translation gains or losses impact the recorded value of the Company’s investment. Therefore the Company recorded foreign currency translation gains, net of tax, of approximately $5.7 million and $7.7 million for the three and six months ended September 30, 2017, respectively, in accumulated other comprehensive income (loss). The Company records its proportionate share of the results of Euro Infrastructure Co., and any related basis difference amortization expense, within equity in income (losses) of unconsolidated affiliate, net, one quarter in arrears. Accordingly, the Company included its share of the results of Euro Infrastructure Co. for the three months ended June 30, 2017 in its condensed consolidated financial statements for the three months ended September 30, 2017, and its share of the results of Euro Infrastructure Co. from the date of the Company’s investment in Euro Infrastructure Co. on March 3, 2017 through June 30, 2017 in its condensed consolidated financial statements for the six months ended September 30, 2017. The Company’s investment in Euro Infrastructure Co. is presented at cost of investment plus its accumulated proportional share of income or loss, including amortization of the difference in the historical basis of the Company’s contribution, less any distributions it has received. The difference between the Company’s carrying value of its investment in Euro Infrastructure Co. and its proportionate share of the net assets of Euro Infrastructure Co. as of September 30, 2017 and March 31, 2017 is summarized as follows: As of As of (In thousands) Carrying value of investment in Euro Infrastructure Co. $ 153,973 $ 141,894 Less: proportionate share of net assets of Euro Infrastructure Co. 138,313 127,393 Excess carrying value of investment over proportionate share of net assets $ 15,660 $ 14,501 The excess carrying value has been primarily assigned to: Goodwill $ 22,537 $ 20,791 Identifiable intangible assets 13,815 12,379 Tangible assets (22,411 ) (20,241 ) Deferred income taxes 1,719 1,572 $ 15,660 $ 14,501 The identifiable intangible assets have useful lives of up to 11 years and a weighted average useful life of approximately ten years, and tangible assets have useful lives of up to 11 years and a weighted average useful life of approximately 11 years. The preliminary allocation is subject to revision as a more detailed analysis is completed and additional information on the assets and liabilities of Euro Infrastructure Co. as of the closing date becomes available. Any change in the net assets of Euro Infrastructure Co. will change the amount of the purchase price allocable to goodwill. Goodwill is not deductible for tax purposes. The Company’s share of income on its investment in Euro Infrastructure Co. was $0.7 million and $0.2 million for the three and six months ended September 30, 2017, respectively, (consisting of the Company’s share of equity in Euro Infrastructure Co.’s income, including amortization of the difference in the historical basis of the Company’s contribution). The Company did not hold any investment in Euro Infrastructure Co. in the prior year period. Since acquiring its interest in Euro Infrastructure Co., the Company has recorded in retained earnings an insignificant amount of undistributed cumulative earnings in equity interests, net of tax, as of September 30, 2017. Related-party transactions Transactions with the equity method investee are considered related-party transactions. The following tables set forth the material related-party transactions entered into between Euro Infrastructure Co. and its subsidiaries, on the one hand, and the Company and its subsidiaries, on the other hand, in the ordinary course of business for the time periods presented: Three Months Ended Six Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 (In thousands) Revenue $ 2,177 $ * $ 5,628 $ * Expense 1,757 * 3,588 * Cash received 2,278 * 4,349 * Cash paid 1,989 * 4,009 * As of As of (In thousands) Accounts receivable $ 1,910 $ * * Collections in excess of revenues and deferred revenues 2,971 * * * Euro Infrastructure Co. and its subsidiaries were not related parties in the prior year period. ** Amount was insignificant. |
Segment Information
Segment Information | 6 Months Ended |
Sep. 30, 2017 | |
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 and related services to consumers, enterprises, commercial airlines and mobile broadband customers. The Company’s commercial networks segment develops and offers advanced satellite and wireless broadband platforms, ground networking equipment, radio frequency and advanced microwave solutions, ASIC chip design, satellite payload development and space-to-earth connectivity systems, some of which are ultimately used by the Company’s satellite services segment. The Company’s government systems segment provides global mobile broadband services to military and government users and develops and offers network-centric, internet protocol (IP)-based fixed and mobile secure communications products and solutions. The more regulated government environment is subject to unique contractual requirements and possesses economic characteristics which differ from the satellite services and commercial networks segments. The Company’s segments are determined consistent with the way management currently organizes and evaluates financial information internally for making operating decisions and assessing performance. Segment revenues and operating profits (losses) for the three and six months ended September 30, 2017 and 2016 were as follows: Three Months Ended Six Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 (In thousands) Revenues: Satellite services Product (1) $ 214 $ 6,782 $ 431 $ 13,467 Service 147,364 149,502 299,361 295,210 Total 147,578 156,284 299,792 308,677 Commercial networks Product 47,347 58,445 83,830 117,041 Service 8,922 7,018 17,687 13,975 Total 56,269 65,463 101,517 131,016 Government systems Product 134,222 122,008 263,640 217,403 Service 55,005 55,403 108,169 105,192 Total 189,227 177,411 371,809 322,595 Elimination of intersegment revenues — — — — Total revenues $ 393,074 $ 399,158 $ 773,118 $ 762,288 Operating profits (losses): Satellite services (1) $ 12,616 $ 32,550 $ 31,459 $ 63,417 Commercial networks (59,377 ) (40,868 ) (125,502 ) (79,399 ) Government systems 34,221 29,009 66,813 46,964 Elimination of intersegment operating profits — — — — Segment operating (loss) profit before corporate and amortization of acquired intangible assets (12,540 ) 20,691 (27,230 ) 30,982 Corporate — — — — Amortization of acquired intangible assets (3,320 ) (2,277 ) (6,580 ) (4,790 ) (Loss) income from operations $ (15,860 ) $ 18,414 $ (33,810 ) $ 26,192 (1) Product revenues and operating profits in the satellite services segment for the three and six months ended September 30, 2016 included $6.6 million and $13.2 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. As of March 31, 2017, all payments pursuant to this settlement agreement had been recorded and no further impacts to the Company’s consolidated financial statements are anticipated related to this settlement agreement. 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 September 30, 2017 and March 31, 2017 were as follows: As of As of (In thousands) Segment assets: Satellite services $ 74,234 $ 81,728 Commercial networks 192,563 179,992 Government systems 322,467 326,242 Total segment assets 589,264 587,962 Corporate assets 2,698,957 2,366,691 Total assets $ 3,288,221 $ 2,954,653 Other acquired intangible assets, net and goodwill included in segment assets as of September 30, 2017 and March 31, 2017 were as follows: Other Acquired Intangible Goodwill As of As of As of As of (In thousands) Satellite services $ 19,238 $ 21,843 $ 13,814 $ 13,579 Commercial networks 4,111 4,903 43,981 43,930 Government systems 13,447 14,931 62,797 62,367 Total $ 36,796 $ 41,677 $ 120,592 $ 119,876 Amortization of acquired intangible assets by segment for the three and six months ended September 30, 2017 and 2016 was as follows: Three Months Ended Six Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 (In thousands) Satellite services $ 2,173 $ 1,105 $ 4,267 $ 2,209 Commercial networks 386 411 792 856 Government systems 761 761 1,521 1,725 Total amortization of acquired intangible assets $ 3,320 $ 2,277 $ 6,580 $ 4,790 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Principles of consolidation | The Company’s condensed consolidated financial statements include the assets, liabilities and results of operations of ViaSat, its wholly owned subsidiaries and its majority-owned subsidiaries, TrellisWare Technologies, Inc. (TrellisWare) and Euro Broadband Retail Sàrl (Euro Retail Co.). All significant intercompany amounts have been eliminated. Investments in entities in which the Company can exercise significant influence, but does not own a majority equity interest or otherwise control, are accounted for using the equity method and are included as investment in unconsolidated affiliate in other assets (long-term) on the condensed consolidated balance sheets. |
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 method of accounting (Accounting Standards Codification (ASC) 605-35). Sales and earnings under these contracts are recorded either based on the ratio of actual costs incurred to date to total estimated costs expected to be incurred related to the contract, or as products are shipped under the units-of-delivery method. Anticipated losses on contracts are recognized in full in the period in which losses become probable and estimable. Changes in estimates of profit or loss on contracts are included in earnings on a cumulative basis in the period the estimate is changed. During the three months ended September 30, 2017 and 2016, the Company recorded losses of approximately $1.5 million and $1.6 million, respectively, related to loss contracts. During the six months ended September 30, 2017 and 2016, the Company recorded losses of approximately $3.7 million and $2.0 million, respectively, related to loss contracts. |
Revenue recognition sale of goods and services | The Company also derives a substantial portion of its revenues from contracts and purchase orders where revenue is recorded on delivery of products or performance of services in accordance with the authoritative guidance for revenue recognition (ASC 605). Under this standard, the Company recognizes revenue when an arrangement exists, prices are determinable, collectability is reasonably assured and the goods or services have been delivered. |
Revenue recognition leases | The Company also enters into certain leasing arrangements with customers and evaluates the contracts in accordance with the authoritative guidance for leases (ASC 840). The Company’s accounting for equipment leases involves specific determinations under the authoritative guidance for leases, which often involve complex provisions and significant judgments. In accordance with the authoritative guidance for leases, the Company classifies the transactions as sales type or operating leases based on: (1) review for transfers of ownership of the equipment to the lessee by the end of the lease term, (2) review of the lease terms to determine if it contains an option to purchase the leased equipment for a price which is sufficiently lower than the expected fair value of the equipment at the date of the option, (3) review of the lease term to determine if it is equal to or greater than 75% of the economic life of the equipment, and (4) review of the present value of the minimum lease payments to determine if they are equal to or greater than 90% of the fair market value of the equipment at the inception of the lease. Additionally, the Company considers the cancelability of the contract and any related uncertainty of collections or risk in recoverability of the lease investment at lease inception. Revenue from sales type leases is recognized at the inception of the lease or when the equipment has been delivered and installed at the customer site, if installation is required. Revenues from equipment rentals under operating leases are recognized as earned over the lease term, which is generally on a straight-line basis. |
Revenue recognition multiple element arrangements | In accordance with the authoritative guidance for revenue recognition for multiple element arrangements, the Accounting Standards Update (ASU) 2009-13 (ASU 2009-13), Revenue Recognition (ASC 605) Multiple-Deliverable Revenue Arrangements, which updates ASC 605-25, Revenue Recognition-Multiple element arrangements, of the Financial Accounting Standards Board (FASB) codification, for substantially all of the arrangements with multiple deliverables, the Company allocates revenue to each element based on a selling price hierarchy at the arrangement inception. The selling price for each element is based upon the following selling price hierarchy: vendor specific objective evidence (VSOE) if available, third-party evidence (TPE) if VSOE is not available, or estimated selling price (ESP) if neither VSOE nor TPE are available (a description as to how the Company determines VSOE, TPE and ESP is provided below). If a tangible hardware systems product includes software, the Company determines whether the tangible hardware systems product and the software work together to deliver the product’s essential functionality and, if so, the entire product is treated as a nonsoftware deliverable. The total arrangement consideration is allocated to each separate unit of accounting for each of the nonsoftware deliverables using the relative selling prices of each unit based on the aforementioned selling price hierarchy. Revenue for each separate unit of accounting is recognized when the applicable revenue recognition criteria for each element have been met. To determine the selling price in multiple-element arrangements, the Company establishes VSOE of the selling price using the price charged for a deliverable when sold separately. The Company also considers specific renewal rates offered to customers for software license updates, product support and hardware systems support, and other services. For nonsoftware multiple-element arrangements, TPE is established by evaluating similar and/or interchangeable competitor products or services in standalone arrangements with similarly situated customers and/or agreements. If the Company is unable to determine the selling price because VSOE or TPE doesn’t exist, the Company determines ESP for the purposes of allocating the arrangement by reviewing historical transactions, including transactions whereby the deliverable was sold on a standalone basis and considers several other external and internal factors including, but not limited to, pricing practices including discounting, margin objectives, competition, the geographies in which the Company offers its products and services, the type of customer (i.e., distributor, value added reseller, government agency or direct end user, among others), volume commitments and the stage of the product lifecycle. The determination of ESP considers the Company’s pricing model and go-to-market strategy. As the Company’s, or its competitors’, pricing and go-to-market strategies evolve, the Company may modify its pricing practices in the future, which could result in changes to its determination of VSOE, TPE and ESP. As a result, the Company’s future revenue recognition for multiple-element arrangements could differ materially from those in the current period. |
Revenue recognition shipping and handling fees and costs | In accordance with the authoritative guidance for shipping and handling fees and costs (ASC 605-45), the Company records shipping and handling costs billed to customers as a component of revenues, and shipping and handling costs incurred by the Company for inbound and outbound freight as a component of cost of revenues. |
Revenue recognition collections in excess of revenues and deferred revenues | Collections in excess of revenues and deferred revenues represent cash collected from customers in advance of revenue recognition and are recorded in accrued liabilities for obligations within the next 12 months. Amounts for obligations extending beyond 12 months are recorded within other liabilities in the condensed consolidated financial statements. |
Advertising costs | Advertising costs In accordance with the authoritative guidance for advertising costs (ASC 720-35), advertising costs are expensed as incurred and included in selling, general and administrative (SG&A) expenses. Advertising expenses for the three months ended September 30, 2017 and 2016 were $2.3 million and $0.8 million, respectively, and for the six months ended September 30, 2017 and 2016 were $3.5 million and $1.6 million, respectively. |
Commissions | Commissions The Company compensates third parties based on specific commission programs directly related to certain product and service sales, and these commissions costs are expensed as incurred. |
Property, equipment and satellites | Property, equipment and satellites Satellites and other property and equipment are recorded at cost or, in the case of certain satellites and other property acquired, the fair value at the date of acquisition, net of accumulated depreciation. Capitalized satellite costs consist primarily of the costs of satellite construction and launch, including launch insurance and insurance during the period of in-orbit testing, the net present value of performance incentives expected to be payable to satellite manufacturers (dependent on the continued satisfactory performance of the satellites), costs directly associated with the monitoring and support of satellite construction, and interest costs incurred during the period of satellite construction. The Company also constructs earth stations, network operations systems and other assets to support its satellites, and those construction costs, including interest, are capitalized as incurred. At the time satellites are placed in service, the Company estimates the useful life of its satellites for depreciation purposes based upon an analysis of each satellite’s performance against the original manufacturer’s orbital design life, estimated fuel levels and related consumption rates, as well as historical satellite operating trends. Costs related to internally developed software for internal uses are capitalized after the preliminary project stage is complete and are amortized over the estimated useful lives of the assets. Costs incurred for additions to property, equipment and satellites, together with major renewals and betterments, are capitalized and depreciated over the remaining life of the underlying asset. Costs incurred for maintenance, repairs and minor renewals and betterments are charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the accounts and any resulting gain or loss is recognized in operations, which for the periods presented, primarily related to losses incurred for unreturned customer premise equipment (CPE). The Company computes depreciation using the straight-line method over the estimated useful lives of the assets ranging from two to 24 years. Leasehold improvements are capitalized and amortized using the straight-line method over the shorter of the lease term or the life of the improvement. Interest expense is capitalized on the carrying value of assets under construction, in accordance with the authoritative guidance for the capitalization of interest (ASC 835-20). With respect to assets under construction, including the ViaSat-2 satellite and related gateway and networking equipment (which commenced construction during the first quarter of fiscal year 2014), and the ViaSat-3 class satellites (which commenced construction during the fourth quarter of fiscal year 2016), the Company capitalized $16.1 million and $11.6 million of interest expense for the three months ended September 30, 2017 and 2016, respectively, and capitalized $30.7 million and $21.8 million of interest expense for the six months ended September 30, 2017 and 2016, respectively. The Company owns two satellites in service: ViaSat-1 (its first-generation high-capacity Ka-band spot-beam satellite, which was placed into service in January 2012) and WildBlue-1 (which was placed into service in March 2007). On June 1, 2017, the Company’s second-generation ViaSat-2 satellite was successfully launched into orbit, and the satellite manufacturer will transfer operation of the satellite to the Company following the successful completion of orbit raising, orbital placement and in-orbit testing. The Company currently has two third-generation ViaSat-3 class satellites under construction. The Company also has an exclusive prepaid lifetime capital lease of Ka-band capacity over the contiguous United States on Telesat Canada’s Anik F2 satellite (which was placed into service in April 2005) and owns related earth stations and networking equipment for all of its satellites. The Company periodically reviews the remaining estimated useful life of its satellites to determine if revisions to estimated lives are necessary. The Company procures indoor and outdoor CPE units leased to subscribers under a retail leasing program as part of the Company’s satellite services segment, which are reflected in investing activities and property and equipment in the accompanying condensed consolidated financial statements. The Company depreciates the satellites, earth stations and networking equipment, CPE units and related installation costs over their estimated useful lives. The total cost and accumulated depreciation of CPE units included in property and equipment, net, as of September 30, 2017 were $260.2 million and $162.4 million, respectively. The total cost and accumulated depreciation of CPE units included in property and equipment, net, as of March 31, 2017 were $271.9 million and $158.2 million, respectively. Occasionally, the Company may enter into capital lease arrangements for various machinery, equipment, computer-related equipment, software, furniture or fixtures. The Company records amortization of assets leased under capital lease arrangements within depreciation expense. |
Capitalized interest policy | Interest expense is capitalized on the carrying value of assets under construction, in accordance with the authoritative guidance for the capitalization of interest (ASC 835-20). |
Patents, orbital slots and other licenses | Patents, orbital slots and other licenses The Company capitalizes the costs of obtaining or acquiring patents, orbital slots and other licenses. Amortization of intangible assets that have finite lives is provided for by the straight-line method over the shorter of the legal or estimated economic life. Total capitalized costs of $3.2 million related to patents were included in other assets as of September 30, 2017 and March 31, 2017. The Company capitalized costs of $15.4 million related to acquiring and obtaining orbital slots and other licenses included in other assets as of September 30, 2017 and March 31, 2017. Accumulated amortization related to these assets was $2.3 million and $2.1 million as of September 30, 2017 and March 31, 2017, respectively. Amortization expense related to these assets was an insignificant amount for the three and six months ended September 30, 2017 and 2016. 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 six months ended September 30, 2017 and 2016, 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 September 30, 2017 and 2016, $9.8 million and an insignificant amount, respectively, of debt issuance costs were capitalized. During the six months ended September 30, 2017 and 2016, $9.8 million and $6.1 million, 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 (loss). Debt issuance costs related to the Company’s revolving credit facility (the Revolving Credit Facility) are recorded in prepaid expenses and other current assets and in other long-term assets in the condensed consolidated balance sheets in accordance with the authoritative guidance for imputation of interest (ASC 835-30). Debt issuance costs related to the Company’s 5.625% Senior Notes due 2025 (the 2025 Notes) and the Company’s direct loan facility with the Export-Import Bank of the United States for ViaSat-2 (the Ex-Im Credit Facility) are recorded as a direct deduction from the carrying amount of the related debt, consistent with debt discounts, in accordance with the authoritative guidance for imputation of interest (ASC 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 $225.2 million and $203.7 million related to software developed for resale were included in other assets as of September 30, 2017 and March 31, 2017, respectively. The Company capitalized $20.0 million and $37.8 million of costs related to software developed for resale for the three and six months ended September 30, 2017, respectively. The Company capitalized $19.7 million and $40.7 million of costs related to software developed for resale for the three and six months ended September 30, 2016, respectively. Amortization expense for capitalized software development costs was $6.6 million and $16.3 million for the three and six months ended September 30, 2017, respectively, and $8.7 million and $16.4 million for the three and six months ended September, 30, 2016, 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 $4.2 million in accrued liabilities in the condensed consolidated balance sheets as of September 30, 2017 and March 31, 2017, 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 September 30, 2017 and March 31, 2017, no such amounts were accrued related to the aforementioned provisions. |
Noncontrolling interests | Noncontrolling interests A noncontrolling interest represents the equity interest in a subsidiary that is not attributable, either directly or indirectly, to the Company and is reported as equity of the Company, 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. |
Investments in unconsolidated affiliate - equity method | Investments in unconsolidated affiliate — equity method Investments in entities in which the Company can exercise significant influence, but does not own a majority equity interest or otherwise control, are accounted for using the equity method and are included as investment in unconsolidated affiliate in other assets (long-term) on the condensed consolidated balance sheets. The Company records its share of the results of such entities within equity in income (losses) of unconsolidated affiliate, net on the condensed consolidated statements of operations and comprehensive income (loss). The Company monitors such investments for other-than-temporary impairment by considering factors including the current economic and market conditions and the operating performance of the entities and records reductions in carrying values when necessary. The fair value of privately held investments is estimated using the best available information as of the valuation date, including current earnings trends, undiscounted cash flows, quoted stock prices of comparable public companies, and other company specific information, including recent financing rounds. |
Derivatives | Derivatives 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. Effective April 1, 2017, the Company adopted a change in accounting policy in accordance with ASU 2016-09, Compensation — Stock Compensation (ASC 718) to account for forfeitures as they occur. Prior to April 1, 2017, forfeitures were estimated at the date of grant and revised, if necessary, in subsequent periods if actual forfeitures differed from those estimates. The Company recognized $16.0 million and $31.5 million of stock-based compensation expense for the three and six months ended September 30, 2017, respectively. The Company recognized $12.6 million and $25.4 million of stock-based compensation expense for the three and six months ended September 30, 2016, respectively. Effective April 1, 2017, in accordance with ASU 2016-09, on a prospective basis, the Company recognizes excess tax benefits or deficiencies on vesting or settlement of awards as discrete items within income tax benefit or provision within net income (loss) and the related cash flows classified within operating activities. Prior to April 1, 2017 any unrealized excess tax benefits were tracked off the balance sheet and recognition of the benefits was deferred until realized through a reduction in taxes payable. When the excess tax benefits or deficiencies were realized, they were recognized in paid-in-capital and the related cash flows were classified as an outflow from operating activities and an inflow from financing activities. For the three months ended September 30, 2017 the Company recorded an insignificant amount of incremental tax deficiencies from stock options exercised and restricted stock unit awards released as an income tax expense. For the six months ended September 30, 2017 the Company recorded an insignificant amount of incremental tax benefits from stock options exercised and restricted stock unit awards released as an income tax benefit. For the three and six months ended September 30, 2016, the Company recorded no incremental tax benefits from stock options exercised and restricted stock unit awards released as the excess tax benefit from stock options exercised and restricted stock unit awards released 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. The Company calculates its provision for income taxes at the end of each interim reporting period on the basis of an estimated annual effective tax rate adjusted for tax items that are discrete to each period. However, when a reliable estimate cannot be made, the Company computes its provision for income taxes using the actual effective tax rate for the year-to-date period. For the three and six months ended September 30, 2016, the Company used the actual effective tax rate method in calculating the income tax provision for the period as a reliable estimate of the annual effective tax rate could not be made. A deferred income tax asset or liability is established for the expected future tax consequences resulting from differences in the financial reporting and tax bases of assets and liabilities and for the expected future tax benefit to be derived from tax credit and loss carryforwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. |
Recent authoritative guidance | Recent authoritative guidance In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to a customer. This guidance will replace most existing revenue recognition guidance and will be effective for the Company beginning in fiscal year 2019, including interim periods within that reporting period, based on the FASB decision in July 2015 (ASU 2015-14, Revenue from Contracts with Customers – Deferral of the Effective Date) to delay the effective date of the new revenue recognition standard by one year, but providing entities a choice to adopt the standard as of the original effective date. In March 2016, the FASB issued ASU 2016-08, Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Identifying Performance Obligations and Licensing, which clarifies the implementation guidance on identifying performance obligations and the licensing implementation guidance. In May 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients, which provides practical expedient for contract modifications and clarification on assessing the collectability criterion, presentation of sales taxes, measurement date for non-cash consideration and completed contracts at transition. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to ASC 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 currently plans to adopt the standard in fiscal year 2019 using the “modified retrospective method.” Under that method, the Company will apply the rules to all contracts existing as of April 1, 2018, recognizing in beginning retained earnings an adjustment for the cumulative effect of the change and providing additional disclosures comparing results to previous accounting standards. Upon initial evaluation, the Company believes the key changes in the standard that impact its revenue recognition relate to the deferral of commissions in the Company’s satellite service segment, which are currently expensed as incurred under the current standard. The requirement to defer incremental contract acquisition costs and recognize them with the transfer of the related good or service will result in the recognition of a deferred charge on the Company’s consolidated balance sheet and corresponding impact to the Company’s consolidated statement of operations and comprehensive income (loss). In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (ASC 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 (loss). The new guidance also impacts financial liabilities under the fair value option and the presentation and disclosure requirements for financial instruments. The new guidance should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. ASU 2016-01 will become effective for the Company in fiscal year 2019, with early adoption permitted with certain stipulations. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (ASC 842). ASU 2016-02 requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets and eliminates certain real estate-specific provisions. The new guidance will become effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted. ASU 2016-02 will be adopted on a modified retrospective transition basis for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (ASC 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. This guidance became effective for the Company beginning in the first quarter of fiscal year 2018. The Company adopted this guidance in the first quarter of fiscal year 2018 on a prospective basis and the guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (ASC 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. This guidance became effective for the Company beginning in the first quarter of fiscal year 2018. The Company adopted this guidance in the first quarter of fiscal year 2018 on a modified retrospective basis and the guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. In March 2016, the FASB issued ASU 2016-07, Investment — Equity Method and Joint Ventures (ASC 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. This guidance became effective for the Company beginning in the first quarter of fiscal year 2018. The Company adopted this guidance in the first quarter of fiscal year 2018 on a prospective basis and the guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation (ASC 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 became effective for the Company beginning in fiscal year 2018. The Company adopted this guidance in the first quarter of fiscal year 2018. On a prospective basis the Company recognizes excess tax benefits or deficiencies on vesting or settlement of awards as discrete items within income tax benefit or provision within net income (loss) and the related cash flows classified within operating activities. With respect to the forfeiture accounting policy election, the Company elected to account for forfeitures as they occur, adopted on a modified retrospective basis as a cumulative effect adjustment to retained earnings. The election to account for forfeitures as they occur did not have a material impact on the Company’s consolidated financial statements and disclosures. See Note 9 for additional information regarding the impact of the adoption of this guidance. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (ASC 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. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (ASC 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 early adopted the guidance on a retrospective basis in the second quarter of fiscal year 2018 and as a result cash payments for debt prepayment and extinguishment are classified as cash outflows for financing activities. Otherwise the adoption of this guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. In October 2016, the FASB issued ASU 2016-16, Income Taxes (ASC 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 adoption on a modified retrospective basis through cumulative-effect adjustment directly to retained earnings as of the beginning of the period. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. In October 2016, the FASB issued ASU 2016-17, Consolidation: Interests Held through Related Parties That Are Under Common Control (ASC 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 became effective for the Company beginning in the first quarter of fiscal year 2018. The Company adopted this guidance in the first quarter of fiscal year 2018 on a retrospective basis and the guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business (ASC 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. In January 2017, the FASB issued ASU 2017-04, Intangibles — Goodwill and Other: Simplifying the Test for Goodwill Impairment (ASC 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. In February 2017, the FASB issued ASU 2017-05, Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets (ASC 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. ASU 2017-05 clarifies the scope and accounting of a financial asset that meets the definition of an “in-substance nonfinancial asset” and defines the term “in-substance nonfinancial asset.” ASU 2017-05 also adds guidance for partial sales of nonfinancial assets. The standard will become effective for the Company in fiscal year 2019, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. In March 2017, the FASB issued ASU 2017-08, Receivables — Nonrefundable Fees and Other Costs (ASC 310-20): Premium Amortization on Purchased Callable Debt Securities. ASU 2017-08 amends the amortization period for certain callable debt securities held at a premium. The amendments require the premium to be amortized to the earliest call date. The standard will become effective for the Company beginning in fiscal year 2020, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. In May 2017, the FASB issued ASU 2017-09, Compensation — Stock Compensation (ASC 718): Scope of Modification Accounting. ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The standard will become effective for the Company beginning in fiscal year 2019, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. In May 2017, the FASB issued ASU 2017-10, Service Concession Arrangements (ASC 853): Determining the Customer of the Operation Services. ASU 2017-10 provides clarity on determining the customer in a service concession arrangement. The standard will become effective for the Company beginning in fiscal year 2019, with early adoption permitted. The new standard will require adoption on a modified retrospective approach by recording a cumulative-effect adjustment to equity, beginning with the earliest period presented, or a retrospective approach. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2017-12 improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. The amendments in this update better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and presentation of hedge results. The standard will become effective for the Company beginning in fiscal year 2020, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. |
Fair value measurements | In accordance with the authoritative guidance for financial assets and liabilities measured at fair value on a recurring basis (ASC 820), the Company prioritizes the inputs used to measure fair value from market-based assumptions to entity specific assumptions: • Level 1 — Inputs based on quoted market prices for identical assets or liabilities in active markets at the measurement date. • Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Inputs which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation. The following tables present the Company’s hierarchy for its assets measured at fair value on a recurring basis as of September 30, 2017 and assets and liabilities measured at fair value on a recurring basis as of March 31, 2017. The Company had no liabilities measured at fair value on a recurring basis as of September 30, 2017: Fair Value as of Level 1 Level 2 Level 3 (In thousands) Assets: Cash equivalents $ 1,006 $ 1,006 $ — $ — Foreign currency forward contracts 80 — 80 — Total assets measured at fair value on a recurring basis $ 1,086 $ 1,006 $ 80 $ — 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 $ 96 $ — $ 96 $ — Total liabilities measured at fair value on a recurring basis $ 96 $ — $ 96 $ — The following section describes the valuation methodologies the Company uses to measure financial instruments at fair value: Cash equivalents Foreign currency forward contracts Long-term debt Satellite performance incentives obligation |
Other acquired intangible assets | Other acquired intangible assets are amortized using the straight-line method over their estimated useful lives of two to ten years. |
Product warranty | The Company provides limited warranties on its products for periods of up to five years. The Company records a liability for its warranty obligations when products are shipped or they are included in long-term construction contracts based upon an estimate of expected warranty costs. Amounts expected to be incurred within 12 months are classified as accrued liabilities and amounts expected to be incurred beyond 12 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. |
Estimated loss contingency | An estimated loss contingency is accrued when it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. The Company regularly evaluates current information available to determine whether such accruals should be adjusted and whether new accruals are required. |
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) | 6 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Composition of Certain Balance Sheet Captions | As of As of (In thousands) Accounts receivable, net: Billed $ 157,903 $ 145,626 Unbilled 96,528 119,565 Allowance for doubtful accounts (2,552 ) (1,470 ) $ 251,879 $ 263,721 Inventories: Raw materials $ 59,008 $ 56,096 Work in process 42,216 25,820 Finished goods 80,175 81,285 $ 181,399 $ 163,201 Prepaid expenses and other current assets: Prepaid expenses $ 61,841 $ 51,856 Other 10,548 5,980 $ 72,389 $ 57,836 Satellites, net: Satellites (estimated useful life of 10-17 years) $ 551,201 $ 559,380 Capital lease of satellite capacity — Anik F2 (estimated useful life of 10 years) 99,090 99,090 Satellites under construction 858,246 776,354 1,508,537 1,434,824 Less: accumulated depreciation and amortization (345,686 ) (326,554 ) $ 1,162,851 $ 1,108,270 Property and equipment, net: Equipment and software (estimated useful life of 2-7 years) $ 741,635 $ 679,008 CPE leased equipment (estimated useful life of 4-5 years) 260,219 271,917 Furniture and fixtures (estimated useful life of 7 years) 32,430 30,539 Leasehold improvements (estimated useful life of 2-17 years) 89,456 80,727 Building (estimated useful life of 24 years) 8,923 8,923 Land 14,573 14,573 Construction in progress 140,667 116,902 1,287,903 1,202,589 Less: accumulated depreciation (710,386 ) (661,981 ) $ 577,517 $ 540,608 Other acquired intangible assets, net: Technology (weighted average useful life of 6 years) $ 89,580 $ 87,592 Contracts and customer relationships (weighted average useful life of 7 years) 103,540 103,034 Satellite co-location rights (weighted average useful life of 9 years) 8,600 8,600 Trade name (weighted average useful life of 3 years) 5,940 5,940 Other (weighted average useful life of 6 years) 10,065 9,925 217,725 215,091 Less: accumulated amortization (180,929 ) (173,414 ) $ 36,796 $ 41,677 Other assets: Investment in unconsolidated affiliate $ 153,973 $ 141,894 Deferred income taxes 209,477 134,764 Capitalized software costs, net 225,163 203,686 Patents, orbital slots and other licenses, net 16,300 16,500 Other 37,177 32,522 $ 642,090 $ 529,366 Accrued liabilities: Collections in excess of revenues and deferred revenues $ 86,293 $ 76,682 Accrued employee compensation 25,774 41,691 Accrued vacation 34,311 33,214 Warranty reserve, current portion 6,514 7,796 Other 54,108 65,576 $ 207,000 $ 224,959 Other liabilities: Deferred revenue, long-term portion $ 71,666 $ 4,617 Deferred rent, long-term portion 12,219 10,743 Warranty reserve, long-term portion 2,145 3,262 Satellite performance incentives obligation, long-term portion 18,700 19,164 Deferred income taxes, long-term 566 1,936 Other 7,683 3,000 $ 112,979 $ 42,722 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
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 measured at fair value on a recurring basis as of September 30, 2017 and assets and liabilities measured at fair value on a recurring basis as of March 31, 2017. The Company had no liabilities measured at fair value on a recurring basis as of September 30, 2017: Fair Value as of Level 1 Level 2 Level 3 (In thousands) Assets: Cash equivalents $ 1,006 $ 1,006 $ — $ — Foreign currency forward contracts 80 — 80 — Total assets measured at fair value on a recurring basis $ 1,086 $ 1,006 $ 80 $ — 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 $ 96 $ — $ 96 $ — Total liabilities measured at fair value on a recurring basis $ 96 $ — $ 96 $ — |
Shares Used In Computing Dilu20
Shares Used In Computing Diluted Net (Loss) Income Per Share (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Shares Used In Computing Diluted Net (Loss) Income Per Share | Three Months Ended Six Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 (In thousands) Weighted average: Common shares outstanding used in calculating basic net (loss) income per share attributable to ViaSat, Inc. common stockholders 58,229 49,503 58,039 49,319 Options to purchase common stock as determined by application of the treasury stock method — 276 — 281 Restricted stock units to acquire common stock as determined by application of the treasury stock method — 669 — 637 Potentially issuable shares in connection with certain terms of the ViaSat 401(k) Profit Sharing Plan and Employee Stock Purchase Plan — 85 — 156 Shares used in computing diluted net (loss) income per share attributable to ViaSat, Inc. common stockholders 58,229 50,533 58,039 50,393 |
Goodwill and Acquired Intangi21
Goodwill and Acquired Intangible Assets (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Current and Expected Amortization Expense for Acquired Intangible Assets | Current and expected amortization expense for acquired intangible assets for each of the following periods is as follows: Amortization (In thousands) For the six months ended September 30, 2017 $ 6,580 Expected for the remainder of fiscal year 2018 $ 5,518 Expected for fiscal year 2019 9,411 Expected for fiscal year 2020 7,593 Expected for fiscal year 2021 5,186 Expected for fiscal year 2022 3,362 Amortization (In thousands) Thereafter 5,726 $ 36,796 |
Senior Notes and Other Long-T22
Senior Notes and Other Long-Term Debt (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | Total long-term debt consisted of the following as of September 30, 2017 and March 31, 2017: As of As of (In thousands) 2025 Notes $ 700,000 $ — 2020 Notes — 575,000 Revolving Credit Facility — — Ex-Im Credit Facility (1) 362,401 304,134 Other 295 288 Total debt 1,062,696 879,422 Unamortized premium/(discount and debt issuance costs), net (1) (43,279 ) (30,651 ) Less: current portion of long-term debt 22,945 288 Total long-term debt $ 996,472 $ 848,483 (1) As of March 31, 2017, included in Ex-Im Credit Facility and in unamortized discount and debt issuance costs on the Ex-Im Credit Facility was $29.5 million and $23.0 million, respectively, relating to the exposure fees accrued as of such date and subsequently financed under the Ex-Im Credit Facility. |
Product Warranty (Tables)
Product Warranty (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Guarantees and Product Warranties [Abstract] | |
Change in the Company's Warranty Accrual | The following table reflects the change in the Company’s warranty accrual during the six months ended September 30, 2017 and 2016: Six Months Ended September 30, 2017 September 30, 2016 (In thousands) Balance, beginning of period $ 11,058 $ 11,434 Change in liability for warranties issued in period 218 4,167 Settlements made (in cash or in kind) during the period (2,617 ) (4,235 ) Balance, end of period $ 8,659 $ 11,366 |
Equity Method Investments and24
Equity Method Investments and Related-Party Transactions (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Text Block [Abstract] | |
The Difference Between Carrying Value of Investment in Euro Infrastructure Co. and Proportionate Share of Net Assets of Euro Infrastructure Co. | The difference between the Company’s carrying value of its investment in Euro Infrastructure Co. and its proportionate share of the net assets of Euro Infrastructure Co. as of September 30, 2017 and March 31, 2017 is summarized as follows: As of As of (In thousands) Carrying value of investment in Euro Infrastructure Co. $ 153,973 $ 141,894 Less: proportionate share of net assets of Euro Infrastructure Co. 138,313 127,393 Excess carrying value of investment over proportionate share of net assets $ 15,660 $ 14,501 The excess carrying value has been primarily assigned to: Goodwill $ 22,537 $ 20,791 Identifiable intangible assets 13,815 12,379 Tangible assets (22,411 ) (20,241 ) Deferred income taxes 1,719 1,572 $ 15,660 $ 14,501 |
Schedule of Related Party Transactions | The following tables set forth the material related-party transactions entered into between Euro Infrastructure Co. and its subsidiaries, on the one hand, and the Company and its subsidiaries, on the other hand, in the ordinary course of business for the time periods presented: Three Months Ended Six Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 (In thousands) Revenue $ 2,177 $ * $ 5,628 $ * Expense 1,757 * 3,588 * Cash received 2,278 * 4,349 * Cash paid 1,989 * 4,009 * As of As of (In thousands) Accounts receivable $ 1,910 $ * * Collections in excess of revenues and deferred revenues 2,971 * * * Euro Infrastructure Co. and its subsidiaries were not related parties in the prior year period. ** Amount was insignificant. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Revenues and Operating Profits (Losses) | Segment revenues and operating profits (losses) for the three and six months ended September 30, 2017 and 2016 were as follows: Three Months Ended Six Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 (In thousands) Revenues: Satellite services Product (1) $ 214 $ 6,782 $ 431 $ 13,467 Service 147,364 149,502 299,361 295,210 Total 147,578 156,284 299,792 308,677 Commercial networks Product 47,347 58,445 83,830 117,041 Service 8,922 7,018 17,687 13,975 Total 56,269 65,463 101,517 131,016 Government systems Product 134,222 122,008 263,640 217,403 Service 55,005 55,403 108,169 105,192 Total 189,227 177,411 371,809 322,595 Elimination of intersegment revenues — — — — Total revenues $ 393,074 $ 399,158 $ 773,118 $ 762,288 Operating profits (losses): Satellite services (1) $ 12,616 $ 32,550 $ 31,459 $ 63,417 Commercial networks (59,377 ) (40,868 ) (125,502 ) (79,399 ) Government systems 34,221 29,009 66,813 46,964 Elimination of intersegment operating profits — — — — Segment operating (loss) profit before corporate and amortization of acquired intangible assets (12,540 ) 20,691 (27,230 ) 30,982 Corporate — — — — Amortization of acquired intangible assets (3,320 ) (2,277 ) (6,580 ) (4,790 ) (Loss) income from operations $ (15,860 ) $ 18,414 $ (33,810 ) $ 26,192 (1) Product revenues and operating profits in the satellite services segment for the three and six months ended September 30, 2016 included $6.6 million and $13.2 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. As of March 31, 2017, all payments pursuant to this settlement agreement had been recorded and no further impacts to the Company’s consolidated financial statements are anticipated related to this settlement agreement. |
Segment Assets | Segment assets as of September 30, 2017 and March 31, 2017 were as follows: As of As of (In thousands) Segment assets: Satellite services $ 74,234 $ 81,728 Commercial networks 192,563 179,992 Government systems 322,467 326,242 Total segment assets 589,264 587,962 Corporate assets 2,698,957 2,366,691 Total assets $ 3,288,221 $ 2,954,653 |
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 September 30, 2017 and March 31, 2017 were as follows: Other Acquired Intangible Goodwill As of As of As of As of (In thousands) Satellite services $ 19,238 $ 21,843 $ 13,814 $ 13,579 Commercial networks 4,111 4,903 43,981 43,930 Government systems 13,447 14,931 62,797 62,367 Total $ 36,796 $ 41,677 $ 120,592 $ 119,876 Amortization of acquired intangible assets by segment for the three and six months ended September 30, 2017 and 2016 was as follows: Three Months Ended Six Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 (In thousands) Satellite services $ 2,173 $ 1,105 $ 4,267 $ 2,209 Commercial networks 386 411 792 856 Government systems 761 761 1,521 1,725 Total amortization of acquired intangible assets $ 3,320 $ 2,277 $ 6,580 $ 4,790 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2017 | |
Company And Summary Of Significant Accounting Policies [Line Items] | |||||
Losses related to loss contracts | $ 1,500,000 | $ 1,600,000 | $ 3,700,000 | $ 2,000,000 | |
Defense contract audit agency completed cost audits | Contract costs on U.S. government contracts are subject to audit and review by the Defense Contracting Management Agency (DCMA), the Defense Contract Audit Agency (DCAA), and other U.S. government agencies, as well as negotiations with U.S. government representatives. The Company’s incurred cost audits by the DCAA have not been concluded for fiscal years 2016 and 2017. As of September 30, 2017, 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 | 2,300,000 | 800,000 | $ 3,500,000 | 1,600,000 | |
Capitalized interest expense | 16,100,000 | 11,600,000 | 30,700,000 | 21,800,000 | |
Total capitalized costs related to patents | 3,200,000 | 3,200,000 | $ 3,200,000 | ||
Total capitalized costs related to orbital slots and other licenses | 15,400,000 | 15,400,000 | 15,400,000 | ||
Accumulated amortization of patents, orbital slots and other licenses | 2,300,000 | 2,300,000 | 2,100,000 | ||
Debt issuance costs capitalized | 9,800,000 | 9,800,000 | 6,100,000 | ||
Capitalized costs, net, related to software developed for resale | 225,163,000 | 225,163,000 | 203,686,000 | ||
Capitalized cost related to software development for resale | 20,000,000 | 19,700,000 | 37,800,000 | 40,700,000 | |
Amortization expense of capitalized software development costs | 6,600,000 | 8,700,000 | 16,300,000 | 16,400,000 | |
Self-insurance liability | 3,900,000 | 3,900,000 | 4,200,000 | ||
Repurchase and immediate retirement of treasury shares pursuant to vesting of certain RSU agreements | 2,483,000 | ||||
Stock-based compensation expense | 16,000,000 | 12,600,000 | 31,490,000 | 25,418,000 | |
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 | 1,500,000 | 1,500,000 | 2,600,000 | ||
Gains or losses from ineffectiveness of derivative instruments | 0 | 0 | $ 0 | 0 | |
Foreign currency forward contracts maturity, maximum | 36 months | ||||
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 (ASC 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 (loss). 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 (ASC 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 (ASC 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. This guidance became effective for the Company beginning in the first quarter of fiscal year 2018. The Company adopted this guidance in the first quarter of fiscal year 2018 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 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 (ASC 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. This guidance became effective for the Company beginning in the first quarter of fiscal year 2018. The Company adopted this guidance in the first quarter of fiscal year 2018 on a modified retrospective basis and the guidance did not have a material impact on the Company’s 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 (ASC 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 (ASC 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 early adopted the guidance on a retrospective basis in the second quarter of fiscal year 2018 and as a result cash payments for debt prepayment and extinguishment are classified as cash outflows for financing activities. Otherwise the adoption of this guidance did not have a material impact on the Company’s 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 (ASC 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 adoption on a modified retrospective basis through cumulative-effect adjustment directly to retained earnings as of the beginning of the period. The Company is currently evaluating the impact of this standard on its 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 (ASC 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 became effective for the Company beginning in the first quarter of fiscal year 2018. The Company adopted this guidance in the first quarter of fiscal year 2018 on a retrospective basis and 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 (ASC 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 2017-05 [Member] | |||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||
Description of new accounting pronouncements | In February 2017, the FASB issued ASU 2017-05, Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets (ASC 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. ASU 2017-05 clarifies the scope and accounting of a financial asset that meets the definition of an “in-substance nonfinancial asset” and defines the term “in-substance nonfinancial asset.” ASU 2017-05 also adds guidance for partial sales of nonfinancial assets. The standard will become effective for the Company in fiscal year 2019, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. | ||||
Accounting Standards Update 2017-08 [Member] | |||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||
Description of new accounting pronouncements | In March 2017, the FASB issued ASU 2017-08, Receivables — Nonrefundable Fees and Other Costs (ASC 310-20): Premium Amortization on Purchased Callable Debt Securities. ASU 2017-08 amends the amortization period for certain callable debt securities held at a premium. The amendments require the premium to be amortized to the earliest call date. The standard will become effective for the Company beginning in fiscal year 2020, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. | ||||
Accounting Standards Update 2017-09 [Member] | |||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||
Description of new accounting pronouncements | In May 2017, the FASB issued ASU 2017-09, Compensation — Stock Compensation (ASC 718): Scope of Modification Accounting. ASU 2017-09 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The standard will become effective for the Company beginning in fiscal year 2019, 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 non-cash consideration and completed contracts at transition. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to ASC 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 currently plans to adopt the standard in fiscal year 2019 using the “modified retrospective method.” Under that method, the Company will apply the rules to all contracts existing as of April 1, 2018, recognizing in beginning retained earnings an adjustment for the cumulative effect of the change and providing additional disclosures comparing results to previous accounting standards. Upon initial evaluation, the Company believes the key changes in the standard that impact its revenue recognition relate to the deferral of commissions in the Company’s satellite service segment, which are currently expensed as incurred under the current standard. The requirement to defer incremental contract acquisition costs and recognize them with the transfer of the related good or service will result in the recognition of a deferred charge on the Company’s consolidated balance sheet and corresponding impact to the Company’s consolidated statement of operations and comprehensive income (loss). | ||||
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 (ASC 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. This guidance became effective for the Company beginning in the first quarter of fiscal year 2018. The Company adopted this guidance in the first quarter of fiscal year 2018 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 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 (ASC 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 became effective for the Company beginning in fiscal year 2018. The Company adopted this guidance in the first quarter of fiscal year 2018. On a prospective basis the Company recognizes excess tax benefits or deficiencies on vesting or settlement of awards as discrete items within income tax benefit or provision within net income (loss) and the related cash flows classified within operating activities. With respect to the forfeiture accounting policy election, the Company elected to account for forfeitures as they occur, adopted on a modified retrospective basis as a cumulative effect adjustment to retained earnings. The election to account for forfeitures as they occur did not have a material impact on the Company’s 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 (ASC 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. | ||||
Accounting Standards Update 2017-10 [Member] | |||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||
Description of new accounting pronouncements | In May 2017, the FASB issued ASU 2017-10, Service Concession Arrangements (ASC 853): Determining the Customer of the Operation Services. ASU 2017-10 provides clarity on determining the customer in a service concession arrangement. The standard will become effective for the Company beginning in fiscal year 2019, with early adoption permitted. The new standard will require adoption on a modified retrospective approach by recording a cumulative-effect adjustment to equity, beginning with the earliest period presented, or a retrospective approach. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. | ||||
Accounting Standards Update 2017-12 [Member] | |||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||
Description of new accounting pronouncements | In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2017-12 improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. The amendments in this update better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and presentation of hedge results. The standard will become effective for the Company beginning in fiscal year 2020, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. | ||||
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 released | 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 released | $ 0 | $ 0 | |||
Minimum [Member] | |||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||
Property, equipment and satellites, estimated useful life (years) | 2 years | ||||
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 | ||||
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 | ||||
Property and Equipment, Net [Member] | |||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment | 1,287,903,000 | $ 1,287,903,000 | 1,202,589,000 | ||
Accumulated depreciation and amortization | 710,386,000 | $ 710,386,000 | 661,981,000 | ||
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 | 260,219,000 | $ 260,219,000 | 271,917,000 | ||
Accumulated depreciation and amortization | $ 162,400,000 | $ 162,400,000 | $ 158,200,000 | ||
Common Stock Held in Treasury [Member] | |||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||
Shares of common stock held in treasury | 0 | 0 | 0 | ||
Purchase of treasury shares pursuant to vesting of certain RSU agreements, shares | 36,666 | 34,204 | |||
Repurchase and immediate retirement of treasury shares pursuant to vesting of certain RSU agreements | $ 2,500,000 | $ 2,500,000 | |||
Common Stock [Member] | |||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||
Common stock issued based on the vesting terms of certain restricted stock unit agreements | 106,741 | 102,103 | |||
Unfavorable Regulatory Action [Member] | |||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||
Accrued reserves | $ 1,300,000 | $ 1,300,000 | $ 1,800,000 | ||
Indemnification Agreement [Member] | |||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||
Accrued reserves | $ 0 | $ 0 | $ 0 |
Composition of Certain Balanc27
Composition of Certain Balance Sheet Captions - Composition of Certain Balance Sheet Captions (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Mar. 31, 2017 |
Accounts receivable, net: | ||
Accounts receivable, Billed | $ 157,903 | $ 145,626 |
Accounts receivable, Unbilled | 96,528 | 119,565 |
Allowance for doubtful accounts | (2,552) | (1,470) |
Accounts receivable, net | 251,879 | 263,721 |
Inventories: | ||
Raw materials | 59,008 | 56,096 |
Work in process | 42,216 | 25,820 |
Finished goods | 80,175 | 81,285 |
Inventories | 181,399 | 163,201 |
Prepaid expenses and other current assets: | ||
Prepaid expenses | 61,841 | 51,856 |
Other | 10,548 | 5,980 |
Prepaid expenses and other current assets | 72,389 | 57,836 |
Other acquired intangible assets, net: | ||
Other acquired intangible assets, gross | 217,725 | 215,091 |
Less: accumulated amortization | (180,929) | (173,414) |
Other acquired intangible assets, net | 36,796 | 41,677 |
Other assets: | ||
Investment in unconsolidated affiliate | 153,973 | 141,894 |
Deferred income taxes | 209,477 | 134,764 |
Capitalized software costs, net | 225,163 | 203,686 |
Patents, orbital slots and other licenses, net | 16,300 | 16,500 |
Other | 37,177 | 32,522 |
Other assets | 642,090 | 529,366 |
Accrued liabilities: | ||
Collections in excess of revenues and deferred revenues | 86,293 | 76,682 |
Accrued employee compensation | 25,774 | 41,691 |
Accrued vacation | 34,311 | 33,214 |
Warranty reserve, current portion | 6,514 | 7,796 |
Other | 54,108 | 65,576 |
Accrued liabilities | 207,000 | 224,959 |
Other liabilities: | ||
Deferred revenue, long-term portion | 71,666 | 4,617 |
Deferred rent, long-term portion | 12,219 | 10,743 |
Warranty reserve, long-term portion | 2,145 | 3,262 |
Satellite performance incentives obligation, long-term portion | 18,700 | 19,164 |
Deferred income taxes, long-term | 566 | 1,936 |
Other | 7,683 | 3,000 |
Other liabilities | 112,979 | 42,722 |
Technology [Member] | ||
Other acquired intangible assets, net: | ||
Other acquired intangible assets, gross | 89,580 | 87,592 |
Contracts and Customer Relationships [Member] | ||
Other acquired intangible assets, net: | ||
Other acquired intangible assets, gross | 103,540 | 103,034 |
Satellite Co-Location Rights [Member] | ||
Other acquired intangible assets, net: | ||
Other acquired intangible assets, gross | 8,600 | 8,600 |
Trade Name [Member] | ||
Other acquired intangible assets, net: | ||
Other acquired intangible assets, gross | 5,940 | 5,940 |
Other [Member] | ||
Other acquired intangible assets, net: | ||
Other acquired intangible assets, gross | 10,065 | 9,925 |
Satellites, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 1,508,537 | 1,434,824 |
Less accumulated depreciation and amortization | (345,686) | (326,554) |
Property and equipment, net | 1,162,851 | 1,108,270 |
Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 1,287,903 | 1,202,589 |
Less accumulated depreciation and amortization | (710,386) | (661,981) |
Property and equipment, net | 577,517 | 540,608 |
Satellites [Member] | Satellites, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 551,201 | 559,380 |
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 | 858,246 | 776,354 |
Construction in Progress [Member] | Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 140,667 | 116,902 |
Equipment and Software [Member] | Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 741,635 | 679,008 |
CPE Leased Equipment [Member] | Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 260,219 | 271,917 |
Less accumulated depreciation and amortization | (162,400) | (158,200) |
Furniture and Fixtures [Member] | Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 32,430 | 30,539 |
Leasehold Improvements [Member] | Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 89,456 | 80,727 |
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 | $ 14,573 | $ 14,573 |
Composition of Certain Balanc28
Composition of Certain Balance Sheet Captions - Composition of Certain Balance Sheet Captions (Parenthetical) (Detail) | 6 Months Ended |
Sep. 30, 2017 | |
Minimum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 2 years |
Maximum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 24 years |
Satellites [Member] | Minimum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 10 years |
Satellites [Member] | Maximum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 17 years |
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 |
Equipment and Software [Member] | Minimum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 2 years |
Equipment and Software [Member] | Maximum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 7 years |
CPE Leased Equipment [Member] | Minimum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 4 years |
CPE Leased Equipment [Member] | Maximum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 5 years |
Furniture and Fixtures [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 7 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 2 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 17 years |
Building [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Property, equipment and satellites, estimated useful life (years) | 24 years |
Technology [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Other acquired intangible assets, weighted average useful life | 6 years |
Contracts and Customer Relationships [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Other acquired intangible assets, weighted average useful life | 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 Name [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Other acquired intangible assets, weighted average useful life | 3 years |
Other [Member] | |
Schedule Of Composition Of Certain Balance Sheet Captions [Line Items] | |
Other acquired intangible assets, weighted average useful life | 6 years |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 21, 2017 | Mar. 31, 2017 | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities measured at fair value on a recurring basis | $ 0 | $ 96,000 | |
2020 Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Principal amount of senior notes issued | $ 575,000,000 | 575,000,000 | |
2025 Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Principal amount of senior notes issued | $ 700,000,000 | $ 700,000,000 | |
Satellite Performance Incentives Obligation [Member] | ViaSat-1 Satellite [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 | 15 years | ||
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 | 587,900,000 | ||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Liabilities measured at fair value on a recurring basis | 96,000 | ||
Satellite performance incentives obligation | $ 21,500,000 | 21,800,000 | |
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 | $ 356,900,000 | $ 297,200,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) | Sep. 30, 2017 | Mar. 31, 2017 |
Assets: | ||
Cash equivalents | $ 1,006,000 | $ 2,003,000 |
Foreign currency forward contracts | 80,000 | |
Total assets measured at fair value on a recurring basis | 1,086,000 | 2,003,000 |
Liabilities: | ||
Foreign currency forward contracts | 96,000 | |
Total liabilities measured at fair value on a recurring basis | 0 | 96,000 |
Level 1 [Member] | ||
Assets: | ||
Cash equivalents | 1,006,000 | 2,003,000 |
Total assets measured at fair value on a recurring basis | 1,006,000 | 2,003,000 |
Level 2 [Member] | ||
Assets: | ||
Foreign currency forward contracts | 80,000 | |
Total assets measured at fair value on a recurring basis | $ 80,000 | |
Liabilities: | ||
Foreign currency forward contracts | 96,000 | |
Total liabilities measured at fair value on a recurring basis | $ 96,000 |
Shares Used In Computing Dilu31
Shares Used In Computing Diluted Net (Loss) Income Per Share - Shares Used In Computing Diluted Net Income Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Weighted average common shares outstanding used in calculating basic net (loss) income per share attributable to ViaSat, Inc. common stockholders | 58,229 | 49,503 | 58,039 | 49,319 |
Weighted average options to purchase common stock as determined by application of the treasury stock method | 276 | 281 | ||
Weighted average restricted stock units to acquire common stock as determined by application of the treasury stock method | 669 | 637 | ||
Weighted average potentially issuable shares in connection with certain terms of the ViaSat 401(k) Profit Sharing Plan and Employee Stock Purchase Plan | 85 | 156 | ||
Weighted average shares used in computing diluted net (loss) income per share attributable to ViaSat, Inc. common stockholders | 58,229 | 50,533 | 58,039 | 50,393 |
Shares Used In Computing Dilu32
Shares Used In Computing Diluted Net (Loss) Income Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Employee Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares | 1,400,231 | 413,750 | 1,381,582 | 398,771 |
Restricted Stock Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares | 598,245 | 0 | 545,821 | 0 |
ViaSat 401(k) Profit Sharing Plan and Employee Stock Purchase Plan [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares | 114,770 | 159,524 |
Goodwill and Acquired Intangi33
Goodwill and Acquired Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Increase in goodwill related to foreign currency translation | $ 700 | |||
Amortization of acquired intangible assets | $ 3,320 | $ 2,277 | $ 6,580 | $ 4,790 |
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 - Current and Expected Amortization Expense for Acquired Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
For the six months ended September 30, 2017 | $ 3,320 | $ 2,277 | $ 6,580 | $ 4,790 | |
Expected for the remainder of fiscal year 2018 | 5,518 | 5,518 | |||
Expected for fiscal year 2019 | 9,411 | 9,411 | |||
Expected for fiscal year 2020 | 7,593 | 7,593 | |||
Expected for fiscal year 2021 | 5,186 | 5,186 | |||
Expected for fiscal year 2022 | 3,362 | 3,362 | |||
Thereafter | 5,726 | 5,726 | |||
Other acquired intangible assets, net | $ 36,796 | $ 36,796 | $ 41,677 |
Senior Notes and Other Long-T35
Senior Notes and Other Long-Term Debt - Components of Long-Term Debt (Detail) - USD ($) | Sep. 30, 2017 | Sep. 21, 2017 | Mar. 31, 2017 |
Debt Instrument [Line Items] | |||
Other | $ 295,000 | $ 288,000 | |
Total debt | 1,062,696,000 | 879,422,000 | |
Unamortized premium/(discount and debt issuance costs), net | (43,279,000) | (30,651,000) | |
Less: current portion of long-term debt | 22,945,000 | 288,000 | |
Total long-term debt | 996,472,000 | 848,483,000 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit Facility | 0 | 0 | |
Ex-Im Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit Facility | 362,401,000 | 304,134,000 | |
2025 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Notes | $ 700,000,000 | $ 700,000,000 | |
2020 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Notes | $ 575,000,000 | $ 575,000,000 |
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 | Sep. 30, 2017 | Mar. 31, 2017 |
Other Long-Term Debt | ||
Exposure fees included in the principal | $ 35.3 | $ 29.5 |
Unamortized discount and debt issuance costs on Ex-Im Credit Facility related to the exposure fees | $ 23 |
Senior Notes and Other Long-T37
Senior Notes and Other Long-Term Debt - Additional Information (Detail) | Sep. 21, 2017USD ($) | Sep. 30, 2017USD ($)Installment | Sep. 30, 2017USD ($)Installment | Mar. 31, 2017USD ($) |
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ (10,217,000) | $ (10,217,000) | ||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit Facility maximum borrowing capacity | 800,000,000 | $ 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 September 30, 2017, 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. | |||
Borrowing availability under the Credit Facility | 769,900,000 | $ 769,900,000 | ||
Principal amount of outstanding borrowings under the Credit Facility | 0 | 0 | $ 0 | |
Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit Facility maximum borrowing capacity | 150,000,000 | 150,000,000 | ||
Standby letters of credit outstanding amount | 30,100,000 | 30,100,000 | ||
Ex-Im Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit Facility maximum borrowing capacity | 362,400,000 | $ 362,400,000 | ||
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. | |||
Amount of qualified ViaSat-2 satellite costs limited to finance | 321,200,000 | $ 321,200,000 | ||
Percent of qualified ViaSat-2 expenses used to finance | 85.00% | |||
The maximum exposure fees under Ex-Im Credit Facility | $ 41,200,000 | $ 41,200,000 | ||
Interest rate on the outstanding borrowings | 2.38% | 2.38% | ||
Required number of installment repayments | Installment | 16 | 16 | ||
Debt maturity date | Oct. 15, 2025 | |||
Effective interest rate on the Ex-Im Credit Facility | 4.60% | 4.60% | ||
Cumulative Ex-Im Credit Facility loan discount | $ 42,300,000 | $ 42,300,000 | ||
Exposure fees included in the principal | 35,300,000 | 35,300,000 | 29,500,000 | |
The exposure fees paid under Ex-Im Credit Facility borrowings | 6,000,000 | |||
2020 Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal amounts of Senior Notes issued | $ 575,000,000 | $ 575,000,000 | ||
Loss on extinguishment of debt | (10,217,000) | (10,217,000) | ||
Cash payment on extinguishment of debt | 10,602,000 | 10,602,000 | ||
Non-cash gain (including unamortized premium, net of unamortized debt issuance costs) | 400,000 | 400,000 | ||
2020 Notes [Member] | Tender Offer [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount deposited to redeem debt | 309,300,000 | |||
Aggregate principal amount | $ 298,200,000 | |||
2020 Notes [Member] | Redemption [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage of Senior Notes | 101.719% | |||
Amount deposited to redeem debt | $ 287,400,000 | |||
Aggregate principal amount | $ 276,800,000 | |||
2025 Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate on the outstanding borrowings | 5.625% | |||
Principal amounts of Senior Notes issued | $ 700,000,000 | $ 700,000,000 | $ 700,000,000 | |
2025 Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage of Senior Notes | 102.813% | |||
Redemption description of Senior Notes | During the 12 months beginning on September 15, 2020 at a redemption price of 102.813% | |||
2025 Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage of Senior Notes | 101.406% | |||
Redemption description of Senior Notes | During the 12 months beginning on September 15, 2021 at a redemption price of 101.406% | |||
2025 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 trigger event 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 2025 Notes at a purchase price in cash equal to 101% of the aggregate principal amount of the 2025 Notes repurchased, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date). | |||
2025 Notes [Member] | Debt Instrument, Redemption, Period Four [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 September 15, 2022 at a redemption price of 100%, in each case plus accrued and unpaid interest, if any, thereon to the redemption date. | |||
2025 Notes [Member] | Debt Instrument, Redemption, Other Period One [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage of Senior Notes | 105.625% | |||
Redemption description of Senior Notes | Prior to September 15, 2020, the Company may redeem up to 40% of the 2025 Notes at a redemption price of 105.625% of the principal amount thereof, plus accrued and unpaid interest, if any, thereon to the redemption date, from the net cash proceeds of specified equity offerings. | |||
2025 Notes [Member] | Debt Instrument, Redemption, Period One [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption price percentage of Senior Notes | 100.00% | |||
Redemption description of Senior Notes | The Company may also redeem the 2025 Notes prior to September 15, 2020, in whole or in part, at a redemption price equal to 100% of the principal amount thereof plus the applicable premium and any accrued and unpaid interest, if any, thereon to the redemption date. The applicable premium is calculated as the greater of: (i) 1.0% of the principal amount of such 2025 Notes and (ii) the excess, if any, of (a) the present value at such date of redemption of (1) the redemption price of such 2025 Notes on September 15, 2020 plus (2) all required interest payments due on such 2020 Notes through September 15, 2020 (excluding accrued but unpaid interest to the date of redemption), computed using a discount rate equal to the treasury rate (as defined under the indenture) plus 50 basis points, over (b) the then-outstanding principal amount of such 2025 Notes. |
Product Warranty - Additional I
Product Warranty - Additional Information (Detail) | 6 Months Ended |
Sep. 30, 2017 | |
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 | 6 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance, beginning of period | $ 11,058 | $ 11,434 |
Change in liability for warranties issued in period | 218 | 4,167 |
Settlements made (in cash or in kind) during the period | (2,617) | (4,235) |
Balance, end of period | $ 8,659 | $ 11,366 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Apr. 30, 2017 | May 31, 2013 | Mar. 31, 2017 | Mar. 31, 2016 |
Long-term Purchase Commitment [Line Items] | |||||
Loss contingency impact to net income attributable to ViaSat, Inc. stockholders | $ 4 | ||||
Loss contingency impact to net (loss) income attributable to noncontrolling interests, net of tax | 3.7 | ||||
TrellisWare [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Minority interest ownership percentage by parent | 52.00% | ||||
Operating Segments [Member] | Government Systems [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Accrued total loss contingency | 11.8 | ||||
Accrued loss contingency in uncharacterized damages | 11.4 | ||||
Accrued loss contingency in penalties | 0.4 | ||||
Accrued Liabilities [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Accrued total loss contingency | $ 8.8 | ||||
Other Long Term Liabilities [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Accrued total loss contingency | 3 | ||||
Unfavorable Regulatory Action [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
U.S. government contract-related reserves | 1.3 | $ 1.8 | |||
Satellite - ViaSat-2 [Member] | Capital Addition [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Commitment amount | $ 358 | ||||
Satellite - ViaSat-2 [Member] | Satellite Performance Incentives Obligation [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Commitment amount | $ 21 | ||||
Period of in-orbit satellite performance incentive payments | 9 years | ||||
ViaSat-3 Class Satellites [Member] | Capital Addition [Member] | |||||
Long-term Purchase Commitment [Line Items] | |||||
Commitment amount | $ 379.5 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Benefit from (provision for) income taxes | $ 11,464 | $ (3,596) | $ 20,644 | $ (4,406) |
Effective income tax benefit rate | 43.90% | 25.10% | 46.90% | 25.50% |
Increase (decrease) in gross unrecognized tax benefits | $ 1,200 | $ 2,400 | ||
Cumulative effect adjustment related to unrecognized excess tax benefits on share based compensation | $ 58,700 | $ 58,700 |
Equity Method Investments and42
Equity Method Investments and Related-Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||||
Foreign currency translation adjustments, net of tax | $ 6,321 | $ (175) | $ 9,846 | $ (939) | |
Income (loss) from equity method investments | 741 | 228 | |||
Euro Infrastructure Co [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Payments, net of transaction costs, to acquire the issued shares in investment | $ 139,500 | ||||
Equity method investment ownership percentage | 49.00% | ||||
Foreign currency translation adjustments, net of tax | 5,700 | $ 7,700 | |||
Estimated useful life, years | 11 years | ||||
Estimated weighted average life (In years) | 10 years | ||||
Tangible assets, useful life | 11 years | ||||
Tangible assets, weighted average useful life | 11 years | ||||
Income (loss) from equity method investments | $ 700 | $ 200 |
Equity Method Investments and43
Equity Method Investments and Related-Party Transactions - The Difference Between Carrying Value of Investment in Euro Infrastructure Co. and Proportionate Share of Net Assets of Euro Infrastructure Co. (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Mar. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | ||
Carrying value of investment in Euro Infrastructure Co. | $ 153,973 | $ 141,894 |
Euro Infrastructure Co [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Carrying value of investment in Euro Infrastructure Co. | 153,973 | 141,894 |
Less: proportionate share of net assets of Euro Infrastructure Co. | 138,313 | 127,393 |
Excess carrying value of investment over proportionate share of net assets | 15,660 | 14,501 |
Euro Infrastructure Co [Member] | Goodwill [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Excess carrying value of investment over proportionate share of net assets | 22,537 | 20,791 |
Euro Infrastructure Co [Member] | Identifiable Intangible Assets [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Excess carrying value of investment over proportionate share of net assets | 13,815 | 12,379 |
Euro Infrastructure Co [Member] | Tangible Assets [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Excess carrying value of investment over proportionate share of net assets | (22,411) | (20,241) |
Euro Infrastructure Co [Member] | Deferred Income Taxes [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Excess carrying value of investment over proportionate share of net assets | $ 1,719 | $ 1,572 |
Equity Method Investments and44
Equity Method Investments and Related-Party Transactions - Schedule of Related Party Transactions (Detail) - Euro Infrastructure Co [Member] $ in Thousands | 3 Months Ended | 6 Months Ended |
Sep. 30, 2017USD ($) | Sep. 30, 2017USD ($) | |
Related Party Transaction [Line Items] | ||
Revenue | $ 2,177 | $ 5,628 |
Expense | 1,757 | 3,588 |
Cash received | 2,278 | 4,349 |
Cash paid | 1,989 | 4,009 |
Accounts receivable | 1,910 | 1,910 |
Collections in excess of revenues and deferred revenues | $ 2,971 | $ 2,971 |
Segment Information - Segment R
Segment Information - Segment Revenues and Operating Profits (Losses) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues: | ||||
Product revenues | $ 181,783 | $ 187,235 | $ 347,901 | $ 347,911 |
Service revenues | 211,291 | 211,923 | 425,217 | 414,377 |
Total revenues | 393,074 | 399,158 | 773,118 | 762,288 |
Operating profits (losses): | ||||
(Loss) income from operations | (15,860) | 18,414 | (33,810) | 26,192 |
Amortization of acquired intangible assets | (3,320) | (2,277) | (6,580) | (4,790) |
Operating Segments [Member] | ||||
Operating profits (losses): | ||||
(Loss) income from operations | (12,540) | 20,691 | (27,230) | 30,982 |
Operating Segments [Member] | Satellite Services [Member] | ||||
Revenues: | ||||
Product revenues | 214 | 6,782 | 431 | 13,467 |
Service revenues | 147,364 | 149,502 | 299,361 | 295,210 |
Total revenues | 147,578 | 156,284 | 299,792 | 308,677 |
Operating profits (losses): | ||||
(Loss) income from operations | 12,616 | 32,550 | 31,459 | 63,417 |
Amortization of acquired intangible assets | (2,173) | (1,105) | (4,267) | (2,209) |
Operating Segments [Member] | Commercial Networks [Member] | ||||
Revenues: | ||||
Product revenues | 47,347 | 58,445 | 83,830 | 117,041 |
Service revenues | 8,922 | 7,018 | 17,687 | 13,975 |
Total revenues | 56,269 | 65,463 | 101,517 | 131,016 |
Operating profits (losses): | ||||
(Loss) income from operations | (59,377) | (40,868) | (125,502) | (79,399) |
Amortization of acquired intangible assets | (386) | (411) | (792) | (856) |
Operating Segments [Member] | Government Systems [Member] | ||||
Revenues: | ||||
Product revenues | 134,222 | 122,008 | 263,640 | 217,403 |
Service revenues | 55,005 | 55,403 | 108,169 | 105,192 |
Total revenues | 189,227 | 177,411 | 371,809 | 322,595 |
Operating profits (losses): | ||||
(Loss) income from operations | 34,221 | 29,009 | 66,813 | 46,964 |
Amortization of acquired intangible assets | (761) | (761) | (1,521) | (1,725) |
Material Reconciling Items [Member] | ||||
Operating profits (losses): | ||||
Amortization of acquired intangible assets | $ (3,320) | $ (2,277) | $ (6,580) | $ (4,790) |
Segment Information - Segment46
Segment Information - Segment Revenues and Operating Profits (Losses) (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Product revenues | $ 181,783 | $ 187,235 | $ 347,901 | $ 347,911 |
Income (loss) from operations | (15,860) | 18,414 | (33,810) | 26,192 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from operations | (12,540) | 20,691 | (27,230) | 30,982 |
Operating Segments [Member] | Satellite Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | 214 | 6,782 | 431 | 13,467 |
Income (loss) from operations | $ 12,616 | 32,550 | $ 31,459 | 63,417 |
Operating Segments [Member] | Implied License [Member] | Satellite Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Product revenues | 6,600 | 13,200 | ||
Income (loss) from operations | $ 6,600 | $ 13,200 |
Segment Information - Segment A
Segment Information - Segment Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Mar. 31, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 3,288,221 | $ 2,954,653 |
Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 589,264 | 587,962 |
Operating Segments [Member] | Satellite Services [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 74,234 | 81,728 |
Operating Segments [Member] | Commercial Networks [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 192,563 | 179,992 |
Operating Segments [Member] | Government Systems [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 322,467 | 326,242 |
Corporate, Non-Segment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 2,698,957 | $ 2,366,691 |
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 | 6 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Other acquired intangible assets, net | $ 36,796 | $ 36,796 | $ 41,677 | ||
Goodwill | 120,592 | 120,592 | 119,876 | ||
Amortization of acquired intangible assets | 3,320 | $ 2,277 | 6,580 | $ 4,790 | |
Operating Segments [Member] | Satellite Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Other acquired intangible assets, net | 19,238 | 19,238 | 21,843 | ||
Goodwill | 13,814 | 13,814 | 13,579 | ||
Amortization of acquired intangible assets | 2,173 | 1,105 | 4,267 | 2,209 | |
Operating Segments [Member] | Commercial Networks [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Other acquired intangible assets, net | 4,111 | 4,111 | 4,903 | ||
Goodwill | 43,981 | 43,981 | 43,930 | ||
Amortization of acquired intangible assets | 386 | 411 | 792 | 856 | |
Operating Segments [Member] | Government Systems [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Other acquired intangible assets, net | 13,447 | 13,447 | 14,931 | ||
Goodwill | 62,797 | 62,797 | $ 62,367 | ||
Amortization of acquired intangible assets | $ 761 | $ 761 | $ 1,521 | $ 1,725 |