Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2018 | Jan. 25, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | VSAT | |
Entity Registrant Name | VIASAT INC | |
Entity Central Index Key | 797,721 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 60,481,263 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 43,365 | $ 71,446 |
Accounts receivable, net | 295,325 | 267,665 |
Inventories | 230,122 | 196,307 |
Prepaid expenses and other current assets | 115,844 | 77,135 |
Total current assets | 684,656 | 612,553 |
Other acquired intangible assets, net | 24,760 | 31,862 |
Goodwill | 121,506 | 121,085 |
Other assets | 744,851 | 686,134 |
Total assets | 3,629,716 | 3,414,109 |
Current liabilities: | ||
Accounts payable | 160,850 | 157,481 |
Accrued liabilities | 292,260 | 263,676 |
Current portion of long-term debt | 21,755 | 45,300 |
Total current liabilities | 474,865 | 466,457 |
Senior notes | 691,803 | 690,886 |
Other long-term debt | 445,032 | 287,519 |
Other liabilities | 131,970 | 121,240 |
Total liabilities | 1,743,670 | 1,566,102 |
Commitments and contingencies (Note 8) | ||
Viasat, Inc. stockholders’ equity | ||
Common stock | 6 | 6 |
Paid-in capital | 1,630,441 | 1,535,635 |
Retained earnings | 243,070 | 285,960 |
Accumulated other comprehensive income | 7,047 | 15,565 |
Total Viasat, Inc. stockholders’ equity | 1,880,564 | 1,837,166 |
Noncontrolling interest in subsidiaries | 5,482 | 10,841 |
Total equity | 1,886,046 | 1,848,007 |
Total liabilities and equity | 3,629,716 | 3,414,109 |
Property Plant and Equipment - Satellites [Member] | ||
Current assets: | ||
Property and equipment, net | 1,188,600 | 1,239,987 |
Property Plant and Equipment - Excluding Satellites [Member] | ||
Current assets: | ||
Property and equipment, net | $ 865,343 | $ 722,488 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | ||||
Total revenues | $ 554,694 | $ 381,837 | $ 1,511,037 | $ 1,154,955 |
Operating expenses: | ||||
Selling, general and administrative | 114,566 | 100,125 | 340,328 | 279,382 |
Independent research and development | 28,928 | 40,149 | 93,661 | 131,482 |
Amortization of acquired intangible assets | 2,487 | 3,177 | 7,375 | 9,757 |
Income (loss) from operations | 6,007 | (25,326) | (70,043) | (59,136) |
Other income (expense): | ||||
Interest income | 31 | 512 | 96 | 782 |
Interest expense | (14,896) | (40,294) | (253) | |
Loss on extinguishment of debt | (10,217) | |||
Loss before income taxes | (8,858) | (24,814) | (110,241) | (68,824) |
(Provision for) benefit from income taxes | (3,230) | (2,172) | 35,679 | 18,472 |
Equity in income of unconsolidated affiliate, net | 1,351 | 1,365 | 2,730 | 1,593 |
Net loss | (10,737) | (25,621) | (71,832) | (48,759) |
Less: net loss attributable to noncontrolling interests, net of tax | (333) | (990) | (1,694) | (1,400) |
Net loss attributable to Viasat, Inc. | $ (10,404) | $ (24,631) | $ (70,138) | $ (47,359) |
Basic net loss per share attributable to Viasat, Inc. common stockholders | $ (0.17) | $ (0.42) | $ (1.17) | $ (0.81) |
Diluted net loss per share attributable to Viasat, Inc. common stockholders | $ (0.17) | $ (0.42) | $ (1.17) | $ (0.81) |
Shares used in computing basic net loss per share | 60,152 | 58,638 | 59,698 | 58,237 |
Shares used in computing diluted net loss per share | 60,152 | 58,638 | 59,698 | 58,237 |
Comprehensive income (loss): | ||||
Net loss | $ (10,737) | $ (25,621) | $ (71,832) | $ (48,759) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized (loss) gain on hedging, net of tax | (50) | (28) | (338) | 81 |
Foreign currency translation adjustments, net of tax | (1,279) | 3,619 | (8,180) | 13,465 |
Other comprehensive (loss) income, net of tax | (1,329) | 3,591 | (8,518) | 13,546 |
Comprehensive loss | (12,066) | (22,030) | (80,350) | (35,213) |
Less: comprehensive loss attributable to noncontrolling interests, net of tax | (333) | (990) | (1,694) | (1,400) |
Comprehensive loss attributable to Viasat, Inc. | (11,733) | (21,040) | (78,656) | (33,813) |
Product [Member] | ||||
Revenues: | ||||
Total revenues | 301,865 | 175,957 | 800,429 | 523,858 |
Operating expenses: | ||||
Cost of revenues | 226,020 | 126,437 | 616,368 | 382,932 |
Service [Member] | ||||
Revenues: | ||||
Total revenues | 252,829 | 205,880 | 710,608 | 631,097 |
Operating expenses: | ||||
Cost of revenues | $ 176,686 | $ 137,275 | $ 523,348 | $ 410,538 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (71,832) | $ (48,759) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation | 195,562 | 153,211 |
Amortization of intangible assets | 42,543 | 33,165 |
Deferred income taxes | (37,137) | (19,940) |
Stock-based compensation expense | 58,658 | 49,132 |
Loss on disposition of fixed assets | 38,374 | 25,768 |
Loss on extinguishment of debt | 10,217 | |
Other non-cash adjustments | 9,229 | 4,685 |
Increase (decrease) in cash resulting from changes in operating assets and liabilities, net of effect of acquisition: | ||
Accounts receivable | (38,909) | 29,626 |
Inventories | (32,250) | (24,148) |
Other assets | (15,430) | (24,938) |
Accounts payable | 4,234 | 5,804 |
Accrued liabilities | 52,534 | 16,965 |
Other liabilities | 9,085 | 71,807 |
Net cash provided by operating activities | 214,661 | 282,595 |
Cash flows from investing activities: | ||
Purchase of property, equipment and satellites | (491,839) | (354,362) |
Cash paid for patents, licenses and other assets | (32,500) | (55,249) |
Proceeds from insurance claims on ViaSat-2 satellite | 172,206 | |
Proceeds from sale of real property | 14,034 | |
Other investing activities | (2,339) | |
Net cash used in investing activities | (340,438) | (409,611) |
Cash flows from financing activities: | ||
Payment of debt issuance costs | (9,759) | |
Proceeds from issuance of common stock under equity plans | 23,595 | 25,732 |
Purchase of common stock in treasury (immediately retired) related to tax withholdings for share-based awards | (28,108) | (23,663) |
Other financing activities | (9,735) | (1,267) |
Net cash provided by financing activities | 100,637 | 157,944 |
Effect of exchange rate changes on cash | (2,941) | 795 |
Net (decrease) increase in cash and cash equivalents | (28,081) | 31,723 |
Cash and cash equivalents at beginning of period | 71,446 | 130,098 |
Cash and cash equivalents at end of period | 43,365 | 161,821 |
Non-cash investing and financing activities: | ||
Issuance of common stock in satisfaction of certain accrued employee compensation liabilities | 32,129 | 16,409 |
Capital expenditures not paid for | 34,237 | 27,086 |
2020 Notes [Member] | ||
Adjustments to reconcile net loss 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) | |
2025 Notes [Member] | ||
Cash flows from financing activities: | ||
Proceeds from issuance of 2025 Notes | 700,000 | |
Revolving Credit Facility [Member] | ||
Cash flows from financing activities: | ||
Proceeds from credit facility borrowings | 465,000 | |
Payments of credit facility borrowings | (140,000) | |
Ex-Im Credit Facility [Member] | ||
Cash flows from financing activities: | ||
Proceeds from credit facility borrowings | 52,503 | |
Payments of credit facility borrowings | $ (210,115) | |
Non-cash investing and financing activities: | ||
Exposure fees on Ex-Im credit facility financed through Ex-Im credit facility | $ 5,764 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Equity (Unaudited) - 9 months ended Dec. 31, 2018 - 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, 2018 | $ 1,848,007 | $ 6 | $ 1,535,635 | $ 285,960 | $ 15,565 | $ 10,841 |
Beginning balance, shares at Mar. 31, 2018 | 58,905,274 | |||||
Exercise of stock options | 8,352 | 8,352 | ||||
Exercise of stock options, shares | 225,000 | |||||
Issuance of stock under Employee Stock Purchase Plan | 15,243 | 15,243 | ||||
Issuance of stock under Employee Stock Purchase Plan, shares | 289,024 | |||||
Stock-based compensation | 67,109 | 67,109 | ||||
Shares and fully-vested RSUs issued in settlement of certain accrued employee compensation liabilities, net of shares withheld for taxes which have been retired | 27,701 | 27,701 | ||||
Shares and fully-vested RSUs issued in settlement of certain accrued employee compensation liabilities, net of shares withheld for taxes which have been retired, shares | 438,433 | |||||
RSU awards vesting, net of shares withheld for taxes which have been retired | (23,680) | (23,680) | ||||
RSU awards vesting, net of shares withheld for taxes which have been retired, shares | 622,532 | |||||
Other noncontrolling interest activity | (3,584) | 81 | (3,665) | |||
Net loss | (71,832) | (70,138) | (1,694) | |||
Other comprehensive loss, net of tax | (8,518) | (8,518) | ||||
Ending balance at Dec. 31, 2018 | 1,886,046 | $ 6 | $ 1,630,441 | 243,070 | $ 7,047 | $ 5,482 |
Ending balance, shares at Dec. 31, 2018 | 60,480,263 | |||||
Cumulative effect adjustment upon adoption of new revenue recognition guidance (ASU 2014-09) | Accounting Standards Update 2014-09 [Member] | $ 27,248 | $ 27,248 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1 — Basis of Presentation The accompanying condensed consolidated balance sheet at December 31, 2018, the condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended December 31, 2018 and 2017, the condensed consolidated statements of cash flows for the nine months ended December 31, 2018 and 2017 and the condensed consolidated statement of equity for the nine months ended December 31, 2018 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, 2018 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, 2018 included in the Company’s Annual Report on Form 10-K. Interim operating results are not necessarily indicative of operating results for the full year. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (GAAP). The Company’s condensed consolidated financial statements include the assets, liabilities and results of operations of Viasat, its wholly owned subsidiaries and its majority-owned subsidiary, TrellisWare Technologies, Inc. During the third quarter of fiscal year 2019, Euro Broadband Retail Sàrl (Euro Broadband Retail), which was previously a majority-owned subsidiary, became a wholly owned subsidiary when the Company purchased the remaining 49% interest in Euro Broadband Retail for an insignificant amount. 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 Effective April 1, 2018, the Company adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (commonly referred to as Accounting Standards Codification (ASC) 606). This update established ASC 606, Revenue from Contracts with Customers and ASC 340-40, Other Assets and Deferred Costs – Contracts with Customers. In order to assess the impact of the new accounting standards, the Company applied the new standards to all open contracts existing as of April 1, 2018. The Company elected the practical expedient to reflect the aggregate effect of all contract modifications occurring before April 1, 2018 when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price to the satisfied and unsatisfied performance obligations. The aggregated effect of applying this practical expedient did not have a significant impact on the Company’s conclusions. To reflect the adoption of the new standards, the Company and its equity method investment investee elected to use the “modified retrospective method , ” which resulted in the Company recording the retrospective cumulative effect to the opening balance of retained earnings. The following table presents the summary of the impact of adopting the new standards: As of March 31, 2018 Adjustments Due to ASC 606 As of April 1, 2018 (In thousands) Condensed Consolidated Balance Sheets: Accounts receivable, net $ 267,665 $ (5,664 ) $ 262,001 Inventories 196,307 1,623 197,930 Prepaid expenses and other current assets 77,135 18,098 95,233 Other assets 686,134 19,107 705,241 Accrued liabilities 263,676 5,916 269,592 Retained earnings 285,960 27,248 313,208 The key impact of adoption is the deferral of commissions primarily in the Company’s satellite services segment, which were historically expensed as incurred as further described below. The Company applied the five-step model under ASC 606 to its contracts with its customers to determine the impact of the new standard. Under this model the Company (1) identifies the contract with the customer, (2) identifies its performance obligations in the contract, (3) determines the transaction price for the contract, (4) allocates the transaction price to its performance obligations and (5) recognizes revenue when or as it satisfies its performance obligations. These performance obligations generally include the purchase of services (including broadband capacity and the leasing of broadband equipment), the purchase of products, and requirements to develop and deliver complex equipment built to customer specifications under long-term contracts. Performance obligations The timing of satisfaction of performance obligations may require judgment. The Company derives a substantial portion of its revenues from contracts with customers for services, primarily connectivity services including leasing of related broadband equipment. These contracts typically require advance or recurring monthly payments by the customer. The Company’s obligation to provide connectivity services is satisfied over time as the customer simultaneously receives and consumes the benefits provided. The measure of progress over time is based upon either a period of time (e.g., over the estimated contractual term) or usage (e.g., bandwidth used/bytes of data processed). From a recognition perspective, the leasing of broadband equipment is evaluated in accordance with the authoritative guidance for leases (ASC 840). The Company’s accounting for equipment leases involves specific determinations under ASC 840, which may involve complex provisions and significant judgments. In accordance with ASC 840, the Company applies the following criteria to determine the nature of the lease (e.g., as an operating or sales type lease): (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. The Company also derives a portion of its revenues from contracts with customers to provide products. Performance obligations to provide products are satisfied at the point in time when control is transferred to the customer. These contracts typically require payment by the customer upon passage of control and determining the point at which control is transferred may require judgment. To identify the point at which control is transferred to the customer, the Company considers indicators that include, but are not limited to whether (1) the Company has the present right to payment for the asset, (2) the customer has legal title to the asset, (3) physical possession of the asset has been transferred to the customer, (4) the customer has the significant risks and rewards of ownership of the asset, and (5) the customer has accepted the asset. For product revenues, control generally passes to the customer upon delivery of goods to the customer. The vast majority of the Company’s revenues from long-term contracts to develop and deliver complex equipment built to customer specifications are derived from contracts with the U.S. government (including foreign military sales contracted through the U.S. government). The Company’s contracts with the U.S. government typically are subject to the Federal Acquisition Regulation (FAR) and are priced based on estimated or actual costs of producing goods or providing services. The FAR provides guidance on the types of costs that are allowable in establishing prices for goods and services provided under U.S. government contracts. The pricing for non-U.S. government contracts is based on the specific negotiations with each customer. Under the typical payment terms of the Company’s U.S. government fixed-price contracts, the customer pays the Company either performance-based payments (PBPs) or progress payments. PBPs are interim payments based on quantifiable measures of performance or on the achievement of specified events or milestones. Progress payments are interim payments based on a percentage of the costs incurred as the work progresses. Because the customer can often retain a portion of the contract price until completion of the contract, the Company’s U.S. government fixed-price contracts generally result in revenue recognized in excess of billings which the Company presents as unbilled accounts receivable on the balance sheet. Amounts billed and due from the Company’s customers are classified as receivables on the balance sheet. The portion of the payments retained by the customer until final contract settlement is not considered a significant financing component because the intent is to protect the customer. For the Company’s U.S. government cost-type contracts, the customer generally pays the Company for its actual costs incurred within a short period of time. For non-U.S. government contracts, the Company typically receives interim payments as work progresses, although for some contracts, the Company may be entitled to receive an advance payment. The Company recognizes a liability for these advance payments in excess of revenue recognized and presents it as collections in excess of revenues and deferred revenues on the balance sheet. An advance payment is not typically considered a significant financing component because it is used to meet working capital demands that can be higher in the early stages of a contract and to protect the Company from the other party failing to adequately complete some or all of its obligations under the contract. Performance obligations related to developing and delivering complex equipment built to customer specifications under long-term contracts are recognized over time as these performance obligations do not create assets with an alternative use to the Company and the Company has an enforceable right to payment for performance to date. To measure the transfer of control, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. The Company generally uses the cost-to-cost measure of progress for its contracts because that best depicts the transfer of control to the customer which occurs as the Company incurs costs on its contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. When estimates of total costs to be incurred on a performance obligation exceed total estimates of revenue to be earned, a provision for the entire loss on the performance obligation is recognized in the period the loss is determined. Contract costs on U.S. government contracts are subject to audit and review by the Defense 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 through 2018. As of December 31, 2018, the DCAA had completed its incurred cost audit for fiscal year 2004 and approved the Company’s incurred cost claims for fiscal years 2005 through 2015 without further audit. Although the Company has recorded contract revenues subsequent to fiscal year 2015 based upon an estimate of costs that the Company believes will be approved upon final audit or review, the Company does not know the outcome of any ongoing or future audits or reviews and adjustments, and if future adjustments exceed the Company’s estimates, its profitability would be adversely affected. As of December 31, 2018 and March 31, 2018, the Company had $4.9 million and $1.6 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). Evaluation of transaction price The evaluation of transaction price, including the amounts allocated to performance obligations, may require significant judgments. Due to the nature of the work required to be performed on many of the Company’s performance obligations, the estimation of total revenue, and where applicable the cost at completion, is complex, subject to many variables and requires significant judgment. The Company’s contracts may contain award fees, incentive fees, or other provisions, including the potential for significant financing components, that can either increase or decrease the transaction price. These amounts, which are sometimes variable, can be dictated by performance metrics, program milestones or cost targets, the timing of payments, and customer discretion. The Company estimates variable consideration at the amount to which it expects to be entitled. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company’s estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information (historical, current and forecasted) that is reasonably available to the Company. The Company has elected the practical expedient not to adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. If a contract is separated into more than one performance obligation, the total transaction price is allocated to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. Estimating standalone selling prices may require judgment. When available, the Company utilizes the observable price of a good or service when the Company sells that good or service separately in similar circumstances and to similar customers. If a standalone selling price is not directly observable, the Company estimates the standalone selling price by considering all information (including market conditions, specific factors, and information about the customer or class of customer) that is reasonably available. Transaction price allocated to remaining performance obligations The Company’s remaining performance obligations represent the transaction price of firm contracts and orders for which work has not been performed. The Company includes in its remaining performance obligations only those contracts and orders for which it has accepted purchase orders. Remaining performance obligations associated with the Company’s subscribers for fixed consumer and business broadband services in its satellite services segment exclude month-to-month service contracts in accordance with a practical expedient and are estimated using a portfolio approach in which the Company reviews all relevant promotional activities and calculates the remaining performance obligation using the average service component for the portfolio and the average time remaining under the contract. The Company’s future recurring in-flight connectivity (IFC) service contracts in its satellite services segment, do not have minimum service purchase requirements and therefore are not included in the Company’s remaining performance obligations. As of December 31, 2018, the aggregate amount of the transaction price allocated to remaining performance obligations was $1.8 billion, of which the Company expects to recognize approximately half over the next twelve months, with the balance recognized thereafter. Disaggregation of revenue The Company operates and manages its business in three reportable segments: satellite services, commercial networks and government systems. Revenue is disaggregated by products and services, customer type, contract type, and geographic area, respectively, as the Company believes this approach best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. The following sets forth disaggregated reported revenue by segment and product and services for the three and nine months ended December 31, 2018: Three Months Ended December 31, 2018 Satellite Services Commercial Networks Government Systems Total Revenues (In thousands) Product revenues $ — $ 115,409 $ 186,456 $ 301,865 Service revenues 177,651 11,568 63,610 252,829 Total revenues $ 177,651 $ 126,977 $ 250,066 $ 554,694 Nine Months Ended December 31, 2018 Satellite Services Commercial Networks Government Systems Total Revenues (In thousands) Product revenues $ — $ 304,732 $ 495,697 $ 800,429 Service revenues 494,174 31,831 184,603 710,608 Total revenues $ 494,174 $ 336,563 $ 680,300 $ 1,511,037 Revenues from the U.S. government as an individual customer comprised approximately 23% and 27% of total revenues for the three and nine months ended December 31, 2018, respectively, mainly reported within the government systems segment. The Company’s commercial customers, mainly reported within the commercial networks and satellite services segments, comprised approximately 77% and 73% of total revenues for the three and nine months ended December 31, 2018, respectively. The Company’s satellite services segment revenues are primarily derived from the Company’s fixed broadband services, IFC services and worldwide managed network services. Revenues in the Company’s commercial networks and government systems segments are primarily derived from three types of contracts: fixed-price, cost-reimbursement and time-and-materials contracts. Fixed-price contracts (which require the Company to provide products and services under a contract at a specified price) comprised approximately 89% Historically, a significant portion of the Company’s revenues in its commercial networks and government systems segments has been derived from customer contracts that include the development of products. The development efforts are conducted in direct response to the customer’s specific requirements and, accordingly, expenditures related to such efforts are included in cost of sales when incurred and the related funding (which includes a profit component) is included in revenues. Revenues for the Company’s funded development from its customer contracts were approximately 18% and 17% of its total revenues for the three and nine months ended December 31, 2018, respectively. Revenues by geographic area for the three and nine months ended December 31, 2018 were as follows: Three Months Ended Nine Months Ended December 31, 2018 December 31, 2018 (In thousands) U.S. customers $ 492,681 $ 1,341,073 Non U.S. customers 62,013 169,964 Total revenues $ 554,694 $ 1,511,037 The Company distinguishes revenues from external customers by geographic area based on customer location. Contract balances Contract balances consist of contract asset and contract liability. A contract asset, or with respect to the Company, an unbilled accounts receivable, is recorded when revenue is recognized in advance of the Company’s right to bill and receive consideration, typically resulting from sales under long-term contracts. Unbilled accounts receivable are generally expected to be billed and collected within one year. The unbilled accounts receivable will decrease as provided service or delivered products are billed. The Company receives payments from customers based on a billing schedule established in the Company’s contracts. When consideration is received in advance of the delivery of goods or services, a contract liability, or with respect to the Company, collections in excess of revenues or deferred revenues, is recorded. Reductions in the collections in excess of revenues or deferred revenues will be recorded as the Company satisfies the performance obligations. The following table presents contract assets and liabilities as of December 31, 2018 and April 1, 2018: As of December 31, 2018 As of April 1, 2018 (In thousands) Unbilled accounts receivable $ 87,085 $ 79,492 Collections in excess of revenues and deferred revenues 127,286 127,355 Deferred revenues, long-term portion 81,877 77,831 During the three and nine months ended December 31, 2018, the Company recognized revenue of $12.6 million and $94.7 million, respectively, related to the Company’s collections in excess of revenues and deferred revenues at April 1, 2018. Other assets and deferred costs – contracts with customers The adoption of ASU 2014-09 also included the establishment of ASC 340-40, Other Assets and Deferred Costs – Contracts with Customers. The new standard requires the recognition of an asset from the incremental costs of obtaining a contract with a customer, if the Company expects to recover those costs. The incremental costs of obtaining a contract are those costs that the Company incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained. ASC 340-40 also requires the recognition of an asset from the costs incurred to fulfill a contract when (1) the costs relate directly to a contract or to an anticipated contract that the Company can specifically identify, (2) the costs generate or enhance resources of the Company that will be used in satisfying (or in continuing to satisfy) performance obligations in the future, and (3) the costs are expected to be recovered. Adoption of the standard has resulted in the recognition of an asset related to commission costs incurred primarily in the Company’s satellite services segment, and recognition of an asset related to costs incurred to fulfill contracts. Costs to acquire customer contracts are amortized over the estimated customer contract life. Costs to fulfill customer contracts are amortized in proportion to the revenue to which the costs relate. For contracts with an estimated amortization period of less than one year, the Company elected the practical expedient and expenses incremental costs immediately. The Company’s deferred customer contract acquisition costs and costs to fulfill contract balances were $49.5 million and $8.7 million as of December 31, 2018, respectively. Of the Company’s total deferred customer contract acquisition costs and costs to fulfill contracts, $19.6 million was included in prepaid expenses and other current assets and $38.6 million was included in other assets on the Company’s condensed consolidated balance sheet as of December 31, 2018. For total deferred customer contract acquisition costs and contract fulfillment costs, the Company’s amortization and reduction of carrying value associated with contract termination was $10.6 million and $30.9 million, for the three and nine months ended December 31, 2018, respectively. Comparative results The Company adopted ASC 606 as of April 1, 2018 using the “modified retrospective method” under which the Company is required to provide additional disclosures comparing results to previous accounting standards. Accordingly, the following table presents the Company’s reported results under ASC 606 and the Company’s pro forma results using the historical accounting method under ASC 605 for the three and nine months ended December 31, 2018 and as of December 31, 2018: Three Months Ended December 31, 2018 As Reported Impact of ASC 606 Historical Accounting Method (In thousands, except per share data) Condensed Consolidated Statements of Operations and Comprehensive Income (Loss): Product revenues $ 301,865 $ (789 ) $ 301,076 Service revenues 252,829 (771 ) 252,058 Total revenues 554,694 (1,560 ) 553,134 Cost of product revenues 226,020 (522 ) 225,498 Cost of service revenues 176,686 (47 ) 176,639 Selling, general and administrative 114,566 1,038 115,604 Independent research and development 28,928 1,658 30,586 Income from operations 6,007 (3,687 ) 2,320 Interest expense (14,896 ) 1,084 (13,812 ) Loss before income taxes (8,858 ) (2,603 ) (11,461 ) Provision for income taxes (3,230 ) 1,970 (1,260 ) Net loss (10,737 ) (633 ) (11,370 ) Net loss attributable to Viasat, Inc. (10,404 ) (633 ) (11,037 ) Basic net loss per share attributable to Viasat, Inc. common stockholders $ (0.17 ) $ (0.01 ) $ (0.18 ) Diluted net loss per share attributable to Viasat, Inc. common stockholders $ (0.17 ) $ (0.01 ) $ (0.18 ) Nine Months Ended December 31, 2018 As Reported Impact of ASC 606 Historical Accounting Method (In thousands, except per share data) Condensed Consolidated Statements of Operations and Comprehensive Income (Loss): Product revenues $ 800,429 $ (4,990 ) $ 795,439 Service revenues 710,608 (2,348 ) 708,260 Total revenues 1,511,037 (7,338 ) 1,503,699 Cost of product revenues 616,368 (3,669 ) 612,699 Cost of service revenues 523,348 (117 ) 523,231 Selling, general and administrative 340,328 7,247 347,575 Independent research and development 93,661 5,903 99,564 Loss from operations (70,043 ) (16,702 ) (86,745 ) Interest expense (40,294 ) 3,087 (37,207 ) Loss before income taxes (110,241 ) (13,614 ) (123,855 ) Benefit from income taxes 35,679 3,725 39,404 Net loss (71,832 ) (9,890 ) (81,722 ) Net loss attributable to Viasat, Inc. (70,138 ) (9,890 ) (80,028 ) Basic net loss per share attributable to Viasat, Inc. common stockholders $ (1.17 ) $ (0.17 ) $ (1.34 ) Diluted net loss per share attributable to Viasat, Inc. common stockholders $ (1.17 ) $ (0.17 ) $ (1.34 ) As of December 31, 2018 As Reported Impact of ASC 606 Historical Accounting Method (In thousands) Condensed Consolidated Balance Sheets: Accounts receivable, net $ 295,325 $ 2,047 $ 297,372 Inventories 230,122 (1,744 ) 228,378 Prepaid expenses and other current assets 115,844 (17,620 ) 98,224 Other assets 744,851 (25,104 ) 719,747 Accrued liabilities 292,260 (5,282 ) 286,978 Retained earnings 243,070 (37,138 ) 205,932 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 December 31, 2018 and 2017 were $12.2 million and $3.2 million, respectively, and for the nine months ended December 31, 2018 and 2017 were $29.1 million and $6.7 million, respectively. Property, equipment and satellites Satellites and other property and equipment, including internally developed software, are recorded at cost or, in the case of certain satellites and other property acquired, the fair value at the date of acquisition, net of accumulated depreciation. Capitalized satellite costs consist primarily of the costs of satellite construction and launch, including launch insurance and insurance during the period of in-orbit testing, the net present value of performance incentives expected to be payable to satellite manufacturers (dependent on the continued satisfactory performance of the satellites), costs directly associated with the monitoring and support of satellite construction, and interest costs incurred during the period of satellite construction. The Company also constructs earth stations, network operations systems and other assets to support its satellites, and those construction costs, including interest, are capitalized as incurred. At the time satellites are placed in service, the Company estimates the useful life of its satellites for depreciation purposes based upon an analysis of each satellite’s performance against the original manufacturer’s orbital design life, estimated fuel levels and related consumption rates, as well as historical satellite operating trends. 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 the ViaSat-3 class satellites, gateway and networking equipment and other assets under construction, the Company capitalized $15.6 million and $29.3 million of interest expense for the three and nine months ended December 31, 2018, respectively. With respect to the ViaSat-2 satellite, ViaSat-3 class satellites, gateway and networking equipment and other assets under construction, the Company capitalized $15.8 million and $46.5 million of interest expense for the three and nine months ended December 31, 2017, respectively. The Company owns three satellites in service: ViaSat-2 (its second-generation high-capacity Ka-band spot-beam satellite, which was placed into service in the fourth quarter of fiscal year 2018), 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). The Company currently has two third-generation ViaSat-3 class satellites that have entered the phase of full construction. The Company also has an exclusive prepaid lifetime capital lease of Ka-band capacity over the contiguous United States on Te |
Composition of Certain Balance
Composition of Certain Balance Sheet Captions | 9 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Composition of Certain Balance Sheet Captions | Note 2 — Composition of Certain Balance Sheet Captions As of December 31, 2018 As of March 31, 2018 (In thousands) Accounts receivable, net: Billed $ 209,587 $ 184,536 Unbilled 87,085 85,156 Allowance for doubtful accounts (1,347 ) (2,027 ) $ 295,325 $ 267,665 Inventories: Raw materials $ 78,850 $ 62,252 Work in process 52,240 47,465 Finished goods 99,032 86,590 $ 230,122 $ 196,307 Prepaid expenses and other current assets: Prepaid expenses $ 81,155 $ 68,516 Insurance receivable 12,317 — Other 22,372 8,619 $ 115,844 $ 77,135 Satellites, net: Satellites (estimated useful life of 10-17 years) $ 978,114 $ 1,152,503 Capital lease of satellite capacity — Anik F2 (estimated useful life of 10 years) 99,090 99,090 Satellites under construction 543,556 362,342 1,620,760 1,613,935 Less: accumulated depreciation and amortization (432,160 ) (373,948 ) $ 1,188,600 $ 1,239,987 Property and equipment, net: Equipment and software (estimated useful life of 2-7 years) $ 970,351 $ 864,140 CPE leased equipment (estimated useful life of 4-5 years) 354,430 298,746 Furniture and fixtures (estimated useful life of 7 years) 46,049 35,234 Leasehold improvements (estimated useful life of 2-17 years) 122,021 111,841 Building (estimated useful life of 24 years) 8,923 8,923 Land 2,291 15,322 Construction in progress 167,897 108,192 1,671,962 1,442,398 Less: accumulated depreciation (806,619 ) (719,910 ) $ 865,343 $ 722,488 Other acquired intangible assets, net: Technology (weighted average useful life of 6 years) $ 90,046 $ 90,652 Contracts and customer relationships (weighted average useful life of 7 years) 103,321 103,808 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) 10,013 10,137 217,920 219,137 Less: accumulated amortization (193,160 ) (187,275 ) $ 24,760 $ 31,862 Other assets: Investment in unconsolidated affiliate $ 162,617 $ 163,835 Deferred income taxes 251,992 222,274 Capitalized software costs, net 244,924 246,792 Patents, orbital slots and other licenses, net 16,700 16,100 Other 68,618 37,133 $ 744,851 $ 686,134 Accrued liabilities: Collections in excess of revenues and deferred revenues $ 127,286 $ 121,439 Accrued employee compensation 55,418 46,106 Accrued vacation 39,971 39,022 Warranty reserve, current portion 5,311 5,357 Other 64,274 51,752 $ 292,260 $ 263,676 Other liabilities: Deferred revenues, long-term portion $ 81,877 $ 77,831 Deferred rent, long-term portion 16,525 13,769 Warranty reserve, long-term portion 1,696 1,557 Satellite performance incentive obligations, long-term portion 25,292 18,181 Other 6,580 9,902 $ 131,970 $ 121,240 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 3 — Fair Value Measurements In accordance with the authoritative guidance for financial assets and liabilities measured at fair value on a recurring basis (ASC 820), the Company determines fair value based on the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants, and prioritizes the inputs used to measure fair value from market-based assumptions to entity specific assumptions: • Level 1 — Inputs based on quoted market prices for identical assets or liabilities in active markets at the measurement date. • Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Inputs which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation. The Company had no assets and an insignificant amount of liabilities (Level 2) measured at fair value on a recurring basis as of December 31, 2018, and had an insignificant amount of assets (Level 1) and no liabilities measured at fair value on a recurring basis as of March 31, 2018. The following section describes the valuation methodologies the Company uses to measure financial instruments at fair value: Cash equivalents — The Company’s cash equivalents consist of money market funds. Money market funds are valued using quoted prices for identical assets in an active market with sufficient volume and frequency of transactions (Level 1). Foreign currency forward contracts — The Company uses derivative financial instruments to manage foreign currency risk relating to foreign exchange rates. The Company does not use these instruments for speculative or trading purposes. The Company’s objective is to reduce the risk to earnings and cash flows associated with changes in foreign currency exchange rates. Derivative instruments are recognized as either assets or liabilities in the accompanying condensed consolidated financial statements and are measured at fair value. Gains and losses resulting from changes in the fair values of those derivative instruments are recorded to earnings or other comprehensive income (loss) depending on the use of the derivative instrument and whether it qualifies for hedge accounting. The Company’s foreign currency forward contracts are valued using standard calculations/models that are primarily based on observable inputs, such as foreign currency exchange rates, or can be corroborated by observable market data (Level 2). Long-term debt — The Company’s long-term debt consists of borrowings under its Revolving Credit Facility and Ex-Im Credit Facility (collectively, the Credit Facilities), as well as $700.0 million in aggregate principal amount of 2025 Notes. Long-term debt related to the Revolving Credit Facility is reported at the outstanding principal amount of borrowings, while long-term debt related to the Ex-Im Credit Facility and the Company’s current and former senior notes (including the 2025 Notes) is reported at amortized cost. However, for disclosure purposes, the Company is required to measure the fair value of outstanding debt on a recurring basis. As of December 31, 2018 and March 31, 2018, the estimated fair value of the Company’s outstanding long-term debt related to the 2025 Notes was determined based on actual or estimated bids and offers for the 2025 Notes in an over-the-counter market (Level 2) and was $644.0 million and $674.0 million, respectively. The fair value of the Company’s long-term debt related to the Revolving Credit Facility approximates its carrying amount due to its variable interest rate, which approximates a market interest rate. As of December 31, 2018 and March 31, 2018, the fair value of the Company’s long-term debt related to the Ex-Im Credit Facility was determined based on a discounted cash flow analysis using observable market interest rates for instruments with similar terms (Level 2) and was approximately $144.7 million and $347.4 million, respectively Satellite performance incentive obligations — The Company’s contracts with the manufacturers of the ViaSat-1 and ViaSat-2 satellites require the Company to make monthly in-orbit satellite performance incentive payments, including interest, through approximately fiscal year 2028, subject to the continued satisfactory performance of the applicable satellites. The Company records the net present value of these expected future payments as a liability and as a component of the cost of the satellite. However, for disclosure purposes, the Company is required to measure the fair value of outstanding satellite performance incentive obligations on a recurring basis. The fair value of the Company’s outstanding satellite performance incentive obligations is estimated to approximate their carrying value based on current rates (Level 2). As of December 31, 2018 and March 31, 2018, the Company’s estimated satellite performance incentive obligations relating to the ViaSat-1 and ViaSat-2 satellites, including accrued interest, were $33.4 million and $21.0 million, respectively. |
Shares Used In Computing Dilute
Shares Used In Computing Diluted Net Loss Per Share | 9 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Shares Used In Computing Diluted Net Loss Per Share | Note 4 — Shares Used In Computing Diluted Net Loss Per Share The weighted average number of shares used to calculate basic and diluted net loss per share attributable to Viasat, Inc. common stockholders is the same for the three and nine months ended December 31, 2018 and 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 nine months ended December 31, 2018 were 1,276,242 and 1,297,427 shares relating to stock options (other than TSR performance stock options), respectively, 1,101,149 and 707,353 shares relating to restricted stock units, respectively, 630,102 and 498,062 relating to TSR performance stock options, respectively, and 289,006 and 249,077 shares relating to certain terms of the ViaSat 401(k) Profit Sharing Plan and Employee Stock Purchase Plan, respectively. Potentially dilutive weighted average shares of common stock excluded from the calculation for the three and nine months ended December 31, 2017 were 1,355,232 and 1,376,667 shares relating to stock options (other than TSR performance stock options), respectively, 270,256 and 90,413 shares relating to TSR performance stock options, respectively, 1,208,047 and 811,747 shares relating to restricted stock units, respectively, and 183,537 and 163,440 shares relating to certain terms of the ViaSat 401(k) Profit Sharing Plan and Employee Stock Purchase Plan, respectively. |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 9 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets | Note 5 — Goodwill and Acquired Intangible Assets During the nine months ended December 31, 2018, the increase in the Company’s goodwill related to an insignificant acquisition, partially offset by 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 $2.5 million and $3.2 million for the three months ended December 31, 2018 and 2017, respectively, and $7.4 million and $9.8 million for the nine months ended December 31, 2018 and 2017, respectively. The expected amortization expense of amortizable acquired intangible assets may change due to the effects of foreign currency fluctuations as a result of international businesses acquired. Current and expected amortization expense for acquired intangible assets for each of the following periods is as follows: Amortization (In thousands) For the nine months ended December 31, 2018 $ 7,375 Expected for the remainder of fiscal year 2019 $ 2,209 Expected for fiscal year 2020 7,524 Expected for fiscal year 2021 5,133 Expected for fiscal year 2022 3,310 Expected for fiscal year 2023 3,005 Thereafter 3,579 $ 24,760 |
Senior Notes and Other Long-Ter
Senior Notes and Other Long-Term Debt | 9 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Senior Notes and Other Long-Term Debt | Note 6 — Senior Notes and Other Long-Term Debt Total long-term debt consisted of the following as of December 31, 2018 and March 31, 2018: As of December 31, 2018 As of March 31, 2018 (In thousands) 2025 Notes $ 700,000 $ 700,000 Revolving Credit Facility 325,000 — Ex-Im Credit Facility 152,286 362,401 Total debt 1,177,286 1,062,401 Unamortized discount and debt issuance costs (18,696 ) (38,696 ) Less: current portion of long-term debt 21,755 45,300 Total long-term debt $ 1,136,835 $ 978,405 Revolving Credit Facility As of December 31, 2018, 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. At December 31, 2018, the weighted average effective interest rate on the Company’s outstanding borrowings under the Revolving Credit Facility was 5.18%. The Company has capitalized certain amounts of interest expense on the Revolving Credit Facility in connection with the construction of various assets during the construction period. The Revolving Credit Facility is required to be guaranteed by certain significant domestic subsidiaries of the Company (as defined in the Revolving Credit Facility) and secured by substantially all of the Company’s and any such subsidiaries’ assets. As of December 31, 2018, none of the Company’s subsidiaries guaranteed the Revolving Credit Facility. The Revolving Credit Facility contains financial covenants regarding a maximum total leverage ratio and a minimum interest coverage ratio. In addition, the Revolving Credit Facility contains covenants that restrict, among other things, the Company’s ability to sell assets, make investments and acquisitions, make capital expenditures, grant liens, pay dividends and make certain other restricted payments. The Company was in compliance with its financial covenants under the Revolving Credit Facility as of December 31, 2018. At December 31, 2018, the Company had $325.0 million in principal amount of outstanding borrowings under the Revolving Credit Facility and $19.8 million outstanding under standby letters of credit, leaving borrowing availability under the Revolving Credit Facility as of December 31, 2018 of $455.2 million. On January 18, 2019, subsequent to the end of the fiscal third quarter, the Revolving Credit Facility was amended to, among other matters, extend the maturity date from May 2021 to January 2024, reduce the interest margin and provide additional covenant flexibility. Ex-Im Credit Facility As of December 31, 2018, 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 included all previously accrued completion exposure fees). As of December 31, 2018, the Company had $152.3 million in principal amount of outstanding borrowings under the Ex-Im Credit Facility. Borrowings under the Ex-Im Credit Facility bear interest at a fixed rate of 2.38%, payable semi-annually in arrears. The effective interest rate on the Company’s outstanding borrowings under the Ex-Im Credit Facility, which takes into account timing and amount of borrowings and payments, exposure fees, debt issuance costs and other fees, is 4.52%. Borrowings under the Ex-Im Credit Facility are required to be repaid in 16 approximately equal semi-annual principal installments, which commenced on April 15, 2018, with a maturity date of October 15, 2025. Pursuant to the terms of the Ex-Im Credit Facility, certain insurance recovery proceeds related to the ViaSat-2 satellite must be used to pay down outstanding borrowings under the Ex-Im Credit Facility upon receipt. During the second and third quarters of fiscal year 2019, the Company received $172.2 million of insurance proceeds related to the ViaSat-2 satellite, all of which were used to pay down outstanding borrowings under the Ex-Im Credit Facility upon receipt (see Note 1 – Property, equipment and satellites for more information). 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 December 31, 2018. Borrowings under the Ex-Im Credit Facility are recorded as current portion of long-term debt and as other long-term debt, net of unamortized discount and debt issuance costs, in the Company’s condensed consolidated financial statements. The discount of $42.3 million (comprising the initial $6.0 million pre-exposure fee, $35.3 million of completion exposure fees, and other customary fees) and deferred financing cost associated with the issuance of the borrowings under the Ex-Im Credit Facility is amortized to interest expense on an effective interest rate basis over the weighted average term of the Ex-Im Credit Facility and in accordance with the related payment obligations. Senior Notes Senior Notes due 2025 In September, 2017, the Company issued $700.0 million in principal amount of 2025 Notes in a private placement to institutional buyers. The 2025 Notes were issued at face value and are recorded as long-term debt, net of debt issuance costs, in the Company’s condensed consolidated financial statements. The 2025 Notes bear interest at the rate of 5.625% per year, payable semi-annually in cash in arrears, which interest payments commenced in March 2018. Debt issuance costs associated with the issuance of the 2025 Notes are amortized to interest expense on a straight-line basis over the term of the 2025 Notes, the results of which are not materially different from the effective interest rate basis. The 2025 Notes are required to be guaranteed on an unsecured senior basis by each of the Company’s existing and future subsidiaries that guarantees the Revolving Credit Facility. As of December 31, 2018, 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). Discharge of indenture and loss on extinguishment of debt In connection with the Company’s issuance of the 2025 Notes in September 2017, the Company repurchased and redeemed all of its $575.0 million in aggregate principal amount of 6.875% Notes due 2020 (the 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. In September 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 in September 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 in September 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 second quarter of fiscal year 2018, 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). |
Product Warranty
Product Warranty | 9 Months Ended |
Dec. 31, 2018 | |
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 nine months ended December 31, 2018 and 2017: Nine Months Ended December 31, 2018 December 31, 2017 (In thousands) Balance, beginning of period $ 6,914 $ 11,058 Change in liability for warranties issued in period 2,982 218 Settlements made (in cash or in kind) during the period (2,889 ) (3,931 ) Balance, end of period $ 7,007 $ 7,345 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8 — Commitments and Contingencies In July 2016, the Company entered into 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. Pursuant to these agreements, as amended, the aggregate purchase price for the two satellites is approximately $390.1 million (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 one additional ViaSat-3 class satellite, with respect to which the Company signed an agreement to proceed in January 2019 for the third ViaSat-3 class satellite. The first ViaSat-3 class satellite is expected to provide broadband services over the Americas, the second is expected to provide broadband services over the Europe, Middle East and Africa (EMEA) region, and the third is expected to provide broadband services over the Asia and Pacific (APAC) region, enabling the Company to deliver affordable connectivity worldwide. 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. 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 through 2018. As of December 31, 2018, the DCAA had completed its incurred cost audit for fiscal year 2004 and approved the Company’s incurred cost claims for fiscal years 2005 throug h 2015 without further audit. Although the Company has recorded contract revenues subsequent to fiscal year 2015 based upon an estimate of costs that the Company believes will be approved upon final audit or review, the Company does not know the outcome of any ongoing or future audits or reviews and adjustments, and if future adjustments exceed the Company’s estimates, its profitability would be adversely affected. As of December 31, 2018 and March 31, 2018 , the Company had $ million and $ 1.6 million, respectively, in contract-related reserves for its estimate of potential refunds to customers for potential cost adjustments on several multi-year U.S. government cost reimbursable contracts. This reserve is classified as either an element of accrued liabilities or as a reduction of unbilled accounts receivable based on the status of the related contracts. |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2018 | |
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 nine months ended December 31, 2018, the Company recorded an income tax expense of $3.2 million and an income tax benefit of $35.7 million, respectively, resulting in a negative effective tax rate of 36% and an effective tax benefit rate of 32%, 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, offset by an increase in valuation allowances on state net operating losses and state research and development tax credits. For the three and nine months ended December 31, 2017, the Company recorded an income tax expense of $2.2 million and an income tax benefit of $18.5 million, respectively, resulting in a negative effective tax rate of 9% and an effective tax benefit rate of 27%, 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, offset by additional income tax expense due to the revaluation of net deferred tax assets resulting from the lowering of the corporate federal income tax rate from 35% to 21% under H.R.1, informally known as the Tax Cuts and Jobs Act, which was enacted into law on December 22, 2017 (the Tax Reform). Future realization of existing deferred tax assets ultimately depends on future profitability and the existence of sufficient taxable income of appropriate character (for example, ordinary income versus capital gains) within the carryforward period available under tax law. In the event that the Company’s estimate of taxable income is less than that required to utilize the full amount of any deferred tax asset, a valuation allowance is established, which would cause a decrease to income in the period such determination is made. For the three and nine months ended December 31, 2018, the Company’s gross unrecognized tax benefits decreased by an insignificant amount and increased by $5.1 million, respectively. In the next 12 months it is reasonably possible that the amount of unrecognized tax benefits will not change significantly. Among other matters, the Tax Reform lowered the corporate federal income tax rate from 35% to 21%, effective January 1, 2018, and transitioned U.S. international taxation from a worldwide tax system to a modified territorial tax system. The Securities and Exchange Commission issued rules under SAB 118 that allowed for a measurement period of up to one year after the enactment date of the Tax Reform to finalize the recording of the related enactment-date tax impacts. The Company finalized its accounting for the related enactment-date tax impacts during the three and nine months ended December 31, 2018 with no adjustments to the provisional estimate recorded at December 31, 2017. For the three and nine months ended December 31, 2018, the Company has accounted for the fiscal year 2019 impacts of the Tax Reform in its (provision for) benefit from income taxes in accordance with its interpretation of the Tax Reform and available guidance. However, additional Treasury regulations and other interpretive guidance are expected. The impact of any additional guidance will be recorded in the subsequent periods in which the additional guidance is released. |
Equity Method Investments and R
Equity Method Investments and Related-Party Transactions | 9 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments And Related Party Transactions [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. The Company recorded foreign currency translation losses, net of tax, of an insignificant amount and $3.8 million for the three and nine months ended December 31, 2018, respectively, in accumulated other comprehensive income (loss). The Company recorded foreign currency translation gains, net of tax, of approximately $3.2 million and $ 10.9 million for the three and nine months ended December 31, 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 (loss) of unconsolidated affiliate, net, one quarter in arrears. Accordingly, the Company included its share of the results of Euro Infrastructure Co. for the three and nine months ended September 30, 2018 in its condensed consolidated financial statements for the three and nine months ended December 31, 2018, respectively. 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 December 31, 2018 and March 31, 2018 is summarized as follows: As of December 31, 2018 As of March 31, 2018 (In thousands) Carrying value of investment in Euro Infrastructure Co. $ 162,617 $ 163,835 Less: proportionate share of net assets of Euro Infrastructure Co. 146,250 147,115 Excess carrying value of investment over proportionate share of net assets $ 16,367 $ 16,720 The excess carrying value has been primarily assigned to: Goodwill $ 22,791 $ 23,523 Identifiable intangible assets 11,225 12,839 Tangible assets (19,255 ) (21,342 ) Deferred income taxes 1,606 1,700 $ 16,367 $ 16,720 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. Goodwill is not deductible for tax purposes. The Company’s share of income on its investment in Euro Infrastructure Co. was income of $1.4 million and $2.7 million for the three and nine months ended December 31, 2018, respectively, and income of $1.4 million and $1.6 million for the three and nine months ended December 31, 2017, 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. Since acquiring its interest in Euro Infrastructure Co., the Company has recorded $5.7 million in retained earnings of undistributed cumulative earnings in equity interests, net of tax, as of December 31, 2018. Related-party transactions Transactions with the equity method investee are considered related-party transactions. In addition, Richard Baldridge, the President and Chief Operating Officer and a Director of the Company, also serves on the board of directors of Ducommun Inc. The following tables set forth the material related-party transactions entered into between Euro Infrastructure Co. and its subsidiaries, or Ducommon Inc. (inventory procurement) 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 Nine Months Ended December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 (In thousands) Revenue – Euro Infrastructure Co. $ 1,620 $ 1,945 $ 4,798 $ 7,574 Expense – Euro Infrastructure Co. 5,664 1,725 10,254 5,313 Cash received – Euro Infrastructure Co. 4,048 2,191 10,102 6,540 Cash paid – Euro Infrastructure Co. 6,585 1,407 10,677 5,416 Cash paid – Ducommun Inc. 8,209 * 15,188 * As of December 31, 2018 As of March 31, 2018 (In thousands) Accounts receivable – Euro Infrastructure Co. $ ** $ 3,307 Collections in excess of revenues and deferred revenues – Euro Infrastructure Co. 7,438 3,246 Accounts payable – Ducommun Inc. 4,287 2,073 * There was no related-party activity for the period indicated. ** Amount was insignificant. |
Segment Information
Segment Information | 9 Months Ended |
Dec. 31, 2018 | |
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, Application-Specific Integrated Circuit 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-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 nine months ended December 31, 2018 and 2017 were as follows: Three Months Ended Nine Months Ended December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 (In thousands) Revenues: Satellite services Product $ — $ 233 $ — $ 664 Service 177,651 144,310 494,174 443,671 Total 177,651 144,543 494,174 444,335 Commercial networks Product 115,409 47,073 304,732 130,903 Service 11,568 8,463 31,831 26,150 Total 126,977 55,536 336,563 157,053 Government systems Product 186,456 128,651 495,697 392,291 Service 63,610 53,107 184,603 161,276 Total 250,066 181,758 680,300 553,567 Elimination of intersegment revenues — — — — Total revenues $ 554,694 $ 381,837 $ 1,511,037 $ 1,154,955 Operating profits (losses): Satellite services $ (10,196 ) $ 1,681 $ (64,971 ) $ 33,140 Commercial networks (31,219 ) (53,505 ) (117,424 ) (179,007 ) Government systems 49,909 29,675 119,727 96,488 Elimination of intersegment operating profits — — — — Segment operating profit (loss) before corporate and amortization of acquired intangible assets 8,494 (22,149 ) (62,668 ) (49,379 ) Corporate — — — — Amortization of acquired intangible assets (2,487 ) (3,177 ) (7,375 ) (9,757 ) Income (loss) from operations $ 6,007 $ (25,326 ) $ (70,043 ) $ (59,136 ) Assets identifiable to segments include: accounts receivable, unbilled accounts receivable, inventory, acquired intangible assets and goodwill. The Company’s property and equipment, including its satellites, earth stations and other networking equipment, are assigned to corporate assets as they are available for use by the various segments throughout their estimated useful lives. Segment assets as of December 31, 2018 and March 31, 2018 were as follows: As of December 31, 2018 As of March 31, 2018 (In thousands) Segment assets: Satellite services $ 77,548 $ 66,830 Commercial networks 230,057 211,447 Government systems 363,319 337,451 Total segment assets 670,924 615,728 Corporate assets 2,958,792 2,798,381 Total assets $ 3,629,716 $ 3,414,109 Other acquired intangible assets, net and goodwill included in segment assets as of December 31, 2018 and March 31, 2018 were as follows: Other Acquired Intangible Assets, Net Goodwill As of December 31, 2018 As of March 31, 2018 As of December 31, 2018 As of March 31, 2018 (In thousands) Satellite services $ 11,751 $ 16,580 $ 13,694 $ 13,991 Commercial networks 2,183 3,340 43,955 44,011 Government systems 10,826 11,942 63,857 63,083 Total $ 24,760 $ 31,862 $ 121,506 $ 121,085 Amortization of acquired intangible assets by segment for the three and nine months ended December 31, 2018 and 2017 was as follows: Three Months Ended Nine Months Ended December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 (In thousands) Satellite services $ 1,183 $ 2,031 $ 3,776 $ 6,297 Commercial networks 386 385 1,157 1,178 Government systems 918 761 2,442 2,282 Total amortization of acquired intangible assets $ 2,487 $ 3,177 $ 7,375 $ 9,757 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of consolidation | The Company’s condensed consolidated financial statements include the assets, liabilities and results of operations of Viasat, its wholly owned subsidiaries and its majority-owned subsidiary, TrellisWare Technologies, Inc. During the third quarter of fiscal year 2019, Euro Broadband Retail Sàrl (Euro Broadband Retail), which was previously a majority-owned subsidiary, became a wholly owned subsidiary when the Company purchased the remaining 49% interest in Euro Broadband Retail for an insignificant amount. 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 | Revenue recognition Effective April 1, 2018, the Company adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (commonly referred to as Accounting Standards Codification (ASC) 606). This update established ASC 606, Revenue from Contracts with Customers and ASC 340-40, Other Assets and Deferred Costs – Contracts with Customers. In order to assess the impact of the new accounting standards, the Company applied the new standards to all open contracts existing as of April 1, 2018. The Company elected the practical expedient to reflect the aggregate effect of all contract modifications occurring before April 1, 2018 when identifying the satisfied and unsatisfied performance obligations, determining the transaction price and allocating the transaction price to the satisfied and unsatisfied performance obligations. The aggregated effect of applying this practical expedient did not have a significant impact on the Company’s conclusions. To reflect the adoption of the new standards, the Company and its equity method investment investee elected to use the “modified retrospective method , ” which resulted in the Company recording the retrospective cumulative effect to the opening balance of retained earnings. The following table presents the summary of the impact of adopting the new standards: As of March 31, 2018 Adjustments Due to ASC 606 As of April 1, 2018 (In thousands) Condensed Consolidated Balance Sheets: Accounts receivable, net $ 267,665 $ (5,664 ) $ 262,001 Inventories 196,307 1,623 197,930 Prepaid expenses and other current assets 77,135 18,098 95,233 Other assets 686,134 19,107 705,241 Accrued liabilities 263,676 5,916 269,592 Retained earnings 285,960 27,248 313,208 The key impact of adoption is the deferral of commissions primarily in the Company’s satellite services segment, which were historically expensed as incurred as further described below. The Company applied the five-step model under ASC 606 to its contracts with its customers to determine the impact of the new standard. Under this model the Company (1) identifies the contract with the customer, (2) identifies its performance obligations in the contract, (3) determines the transaction price for the contract, (4) allocates the transaction price to its performance obligations and (5) recognizes revenue when or as it satisfies its performance obligations. These performance obligations generally include the purchase of services (including broadband capacity and the leasing of broadband equipment), the purchase of products, and requirements to develop and deliver complex equipment built to customer specifications under long-term contracts. Performance obligations The timing of satisfaction of performance obligations may require judgment. The Company derives a substantial portion of its revenues from contracts with customers for services, primarily connectivity services including leasing of related broadband equipment. These contracts typically require advance or recurring monthly payments by the customer. The Company’s obligation to provide connectivity services is satisfied over time as the customer simultaneously receives and consumes the benefits provided. The measure of progress over time is based upon either a period of time (e.g., over the estimated contractual term) or usage (e.g., bandwidth used/bytes of data processed). From a recognition perspective, the leasing of broadband equipment is evaluated in accordance with the authoritative guidance for leases (ASC 840). The Company’s accounting for equipment leases involves specific determinations under ASC 840, which may involve complex provisions and significant judgments. In accordance with ASC 840, the Company applies the following criteria to determine the nature of the lease (e.g., as an operating or sales type lease): (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. The Company also derives a portion of its revenues from contracts with customers to provide products. Performance obligations to provide products are satisfied at the point in time when control is transferred to the customer. These contracts typically require payment by the customer upon passage of control and determining the point at which control is transferred may require judgment. To identify the point at which control is transferred to the customer, the Company considers indicators that include, but are not limited to whether (1) the Company has the present right to payment for the asset, (2) the customer has legal title to the asset, (3) physical possession of the asset has been transferred to the customer, (4) the customer has the significant risks and rewards of ownership of the asset, and (5) the customer has accepted the asset. For product revenues, control generally passes to the customer upon delivery of goods to the customer. The vast majority of the Company’s revenues from long-term contracts to develop and deliver complex equipment built to customer specifications are derived from contracts with the U.S. government (including foreign military sales contracted through the U.S. government). The Company’s contracts with the U.S. government typically are subject to the Federal Acquisition Regulation (FAR) and are priced based on estimated or actual costs of producing goods or providing services. The FAR provides guidance on the types of costs that are allowable in establishing prices for goods and services provided under U.S. government contracts. The pricing for non-U.S. government contracts is based on the specific negotiations with each customer. Under the typical payment terms of the Company’s U.S. government fixed-price contracts, the customer pays the Company either performance-based payments (PBPs) or progress payments. PBPs are interim payments based on quantifiable measures of performance or on the achievement of specified events or milestones. Progress payments are interim payments based on a percentage of the costs incurred as the work progresses. Because the customer can often retain a portion of the contract price until completion of the contract, the Company’s U.S. government fixed-price contracts generally result in revenue recognized in excess of billings which the Company presents as unbilled accounts receivable on the balance sheet. Amounts billed and due from the Company’s customers are classified as receivables on the balance sheet. The portion of the payments retained by the customer until final contract settlement is not considered a significant financing component because the intent is to protect the customer. For the Company’s U.S. government cost-type contracts, the customer generally pays the Company for its actual costs incurred within a short period of time. For non-U.S. government contracts, the Company typically receives interim payments as work progresses, although for some contracts, the Company may be entitled to receive an advance payment. The Company recognizes a liability for these advance payments in excess of revenue recognized and presents it as collections in excess of revenues and deferred revenues on the balance sheet. An advance payment is not typically considered a significant financing component because it is used to meet working capital demands that can be higher in the early stages of a contract and to protect the Company from the other party failing to adequately complete some or all of its obligations under the contract. Performance obligations related to developing and delivering complex equipment built to customer specifications under long-term contracts are recognized over time as these performance obligations do not create assets with an alternative use to the Company and the Company has an enforceable right to payment for performance to date. To measure the transfer of control, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. The Company generally uses the cost-to-cost measure of progress for its contracts because that best depicts the transfer of control to the customer which occurs as the Company incurs costs on its contracts. Under the cost-to-cost measure of progress, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. When estimates of total costs to be incurred on a performance obligation exceed total estimates of revenue to be earned, a provision for the entire loss on the performance obligation is recognized in the period the loss is determined. Contract costs on U.S. government contracts are subject to audit and review by the Defense 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 through 2018. As of December 31, 2018, the DCAA had completed its incurred cost audit for fiscal year 2004 and approved the Company’s incurred cost claims for fiscal years 2005 through 2015 without further audit. Although the Company has recorded contract revenues subsequent to fiscal year 2015 based upon an estimate of costs that the Company believes will be approved upon final audit or review, the Company does not know the outcome of any ongoing or future audits or reviews and adjustments, and if future adjustments exceed the Company’s estimates, its profitability would be adversely affected. As of December 31, 2018 and March 31, 2018, the Company had $4.9 million and $1.6 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). Evaluation of transaction price The evaluation of transaction price, including the amounts allocated to performance obligations, may require significant judgments. Due to the nature of the work required to be performed on many of the Company’s performance obligations, the estimation of total revenue, and where applicable the cost at completion, is complex, subject to many variables and requires significant judgment. The Company’s contracts may contain award fees, incentive fees, or other provisions, including the potential for significant financing components, that can either increase or decrease the transaction price. These amounts, which are sometimes variable, can be dictated by performance metrics, program milestones or cost targets, the timing of payments, and customer discretion. The Company estimates variable consideration at the amount to which it expects to be entitled. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The Company’s estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information (historical, current and forecasted) that is reasonably available to the Company. The Company has elected the practical expedient not to adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. If a contract is separated into more than one performance obligation, the total transaction price is allocated to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. Estimating standalone selling prices may require judgment. When available, the Company utilizes the observable price of a good or service when the Company sells that good or service separately in similar circumstances and to similar customers. If a standalone selling price is not directly observable, the Company estimates the standalone selling price by considering all information (including market conditions, specific factors, and information about the customer or class of customer) that is reasonably available. Transaction price allocated to remaining performance obligations The Company’s remaining performance obligations represent the transaction price of firm contracts and orders for which work has not been performed. The Company includes in its remaining performance obligations only those contracts and orders for which it has accepted purchase orders. Remaining performance obligations associated with the Company’s subscribers for fixed consumer and business broadband services in its satellite services segment exclude month-to-month service contracts in accordance with a practical expedient and are estimated using a portfolio approach in which the Company reviews all relevant promotional activities and calculates the remaining performance obligation using the average service component for the portfolio and the average time remaining under the contract. The Company’s future recurring in-flight connectivity (IFC) service contracts in its satellite services segment, do not have minimum service purchase requirements and therefore are not included in the Company’s remaining performance obligations. As of December 31, 2018, the aggregate amount of the transaction price allocated to remaining performance obligations was $1.8 billion, of which the Company expects to recognize approximately half over the next twelve months, with the balance recognized thereafter. Disaggregation of revenue The Company operates and manages its business in three reportable segments: satellite services, commercial networks and government systems. Revenue is disaggregated by products and services, customer type, contract type, and geographic area, respectively, as the Company believes this approach best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. The following sets forth disaggregated reported revenue by segment and product and services for the three and nine months ended December 31, 2018: Three Months Ended December 31, 2018 Satellite Services Commercial Networks Government Systems Total Revenues (In thousands) Product revenues $ — $ 115,409 $ 186,456 $ 301,865 Service revenues 177,651 11,568 63,610 252,829 Total revenues $ 177,651 $ 126,977 $ 250,066 $ 554,694 Nine Months Ended December 31, 2018 Satellite Services Commercial Networks Government Systems Total Revenues (In thousands) Product revenues $ — $ 304,732 $ 495,697 $ 800,429 Service revenues 494,174 31,831 184,603 710,608 Total revenues $ 494,174 $ 336,563 $ 680,300 $ 1,511,037 Revenues from the U.S. government as an individual customer comprised approximately 23% and 27% of total revenues for the three and nine months ended December 31, 2018, respectively, mainly reported within the government systems segment. The Company’s commercial customers, mainly reported within the commercial networks and satellite services segments, comprised approximately 77% and 73% of total revenues for the three and nine months ended December 31, 2018, respectively. The Company’s satellite services segment revenues are primarily derived from the Company’s fixed broadband services, IFC services and worldwide managed network services. Revenues in the Company’s commercial networks and government systems segments are primarily derived from three types of contracts: fixed-price, cost-reimbursement and time-and-materials contracts. Fixed-price contracts (which require the Company to provide products and services under a contract at a specified price) comprised approximately 89% Historically, a significant portion of the Company’s revenues in its commercial networks and government systems segments has been derived from customer contracts that include the development of products. The development efforts are conducted in direct response to the customer’s specific requirements and, accordingly, expenditures related to such efforts are included in cost of sales when incurred and the related funding (which includes a profit component) is included in revenues. Revenues for the Company’s funded development from its customer contracts were approximately 18% and 17% of its total revenues for the three and nine months ended December 31, 2018, respectively. Revenues by geographic area for the three and nine months ended December 31, 2018 were as follows: Three Months Ended Nine Months Ended December 31, 2018 December 31, 2018 (In thousands) U.S. customers $ 492,681 $ 1,341,073 Non U.S. customers 62,013 169,964 Total revenues $ 554,694 $ 1,511,037 The Company distinguishes revenues from external customers by geographic area based on customer location. Contract balances Contract balances consist of contract asset and contract liability. A contract asset, or with respect to the Company, an unbilled accounts receivable, is recorded when revenue is recognized in advance of the Company’s right to bill and receive consideration, typically resulting from sales under long-term contracts. Unbilled accounts receivable are generally expected to be billed and collected within one year. The unbilled accounts receivable will decrease as provided service or delivered products are billed. The Company receives payments from customers based on a billing schedule established in the Company’s contracts. When consideration is received in advance of the delivery of goods or services, a contract liability, or with respect to the Company, collections in excess of revenues or deferred revenues, is recorded. Reductions in the collections in excess of revenues or deferred revenues will be recorded as the Company satisfies the performance obligations. The following table presents contract assets and liabilities as of December 31, 2018 and April 1, 2018: As of December 31, 2018 As of April 1, 2018 (In thousands) Unbilled accounts receivable $ 87,085 $ 79,492 Collections in excess of revenues and deferred revenues 127,286 127,355 Deferred revenues, long-term portion 81,877 77,831 During the three and nine months ended December 31, 2018, the Company recognized revenue of $12.6 million and $94.7 million, respectively, related to the Company’s collections in excess of revenues and deferred revenues at April 1, 2018. |
Other assets and deferred costs – contracts with customers | Other assets and deferred costs – contracts with customers The adoption of ASU 2014-09 also included the establishment of ASC 340-40, Other Assets and Deferred Costs – Contracts with Customers. The new standard requires the recognition of an asset from the incremental costs of obtaining a contract with a customer, if the Company expects to recover those costs. The incremental costs of obtaining a contract are those costs that the Company incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained. ASC 340-40 also requires the recognition of an asset from the costs incurred to fulfill a contract when (1) the costs relate directly to a contract or to an anticipated contract that the Company can specifically identify, (2) the costs generate or enhance resources of the Company that will be used in satisfying (or in continuing to satisfy) performance obligations in the future, and (3) the costs are expected to be recovered. Adoption of the standard has resulted in the recognition of an asset related to commission costs incurred primarily in the Company’s satellite services segment, and recognition of an asset related to costs incurred to fulfill contracts. Costs to acquire customer contracts are amortized over the estimated customer contract life. Costs to fulfill customer contracts are amortized in proportion to the revenue to which the costs relate. For contracts with an estimated amortization period of less than one year, the Company elected the practical expedient and expenses incremental costs immediately. The Company’s deferred customer contract acquisition costs and costs to fulfill contract balances were $49.5 million and $8.7 million as of December 31, 2018, respectively. Of the Company’s total deferred customer contract acquisition costs and costs to fulfill contracts, $19.6 million was included in prepaid expenses and other current assets and $38.6 million was included in other assets on the Company’s condensed consolidated balance sheet as of December 31, 2018. For total deferred customer contract acquisition costs and contract fulfillment costs, the Company’s amortization and reduction of carrying value associated with contract termination was $10.6 million and $30.9 million, for the three and nine months ended December 31, 2018, respectively. |
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 December 31, 2018 and 2017 were $12.2 million and $3.2 million, respectively, and for the nine months ended December 31, 2018 and 2017 were $29.1 million and $6.7 million, respectively. |
Property, equipment and satellites | Property, equipment and satellites Satellites and other property and equipment, including internally developed software, are recorded at cost or, in the case of certain satellites and other property acquired, the fair value at the date of acquisition, net of accumulated depreciation. Capitalized satellite costs consist primarily of the costs of satellite construction and launch, including launch insurance and insurance during the period of in-orbit testing, the net present value of performance incentives expected to be payable to satellite manufacturers (dependent on the continued satisfactory performance of the satellites), costs directly associated with the monitoring and support of satellite construction, and interest costs incurred during the period of satellite construction. The Company also constructs earth stations, network operations systems and other assets to support its satellites, and those construction costs, including interest, are capitalized as incurred. At the time satellites are placed in service, the Company estimates the useful life of its satellites for depreciation purposes based upon an analysis of each satellite’s performance against the original manufacturer’s orbital design life, estimated fuel levels and related consumption rates, as well as historical satellite operating trends. 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 the ViaSat-3 class satellites, gateway and networking equipment and other assets under construction, the Company capitalized $15.6 million and $29.3 million of interest expense for the three and nine months ended December 31, 2018, respectively. With respect to the ViaSat-2 satellite, ViaSat-3 class satellites, gateway and networking equipment and other assets under construction, the Company capitalized $15.8 million and $46.5 million of interest expense for the three and nine months ended December 31, 2017, respectively. The Company owns three satellites in service: ViaSat-2 (its second-generation high-capacity Ka-band spot-beam satellite, which was placed into service in the fourth quarter of fiscal year 2018), 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). The Company currently has two third-generation ViaSat-3 class satellites that have entered the phase of full 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 December 31, 2018 were $354.4 million and $137.6 million, respectively. The total cost and accumulated depreciation of CPE units included in property and equipment, net, as of March 31, 2018 were $298.7 million and $129.0 million, respectively. On June 1, 2017, the Company’s second-generation ViaSat-2 satellite was successfully launched into orbit. In the fourth quarter of fiscal year 2018, shortly before the launch of commercial broadband services on the satellite, the Company reported an antenna deployment issue. The Company worked with the satellite manufacturer to determine the root cause of the antenna deployment issue, potential correcting measures, and resulting damage. In the second quarter of fiscal year 2019, the root cause analysis was completed. Based on that analysis, during the second quarter of fiscal year 2019, the Company recorded a reduction to the carrying value of the ViaSat-2 satellite of $177.4 million, with a corresponding insurance receivable of $177.4 million, based on the Company’s estimated ViaSat-2 output capabilities as compared to the anticipated, potential and configured capacity of the ViaSat-2 satellite. During the second and third quarters of fiscal year 2019, the Company received $172.2 million in insurance recovery proceeds related to such claims. The Company recorded an insurance receivable of $12.3 million as of December 31, 2018 with respect to probable remaining ViaSat-2 related insurance claims. As a result, during the third quarter of fiscal year 2019, the Company recorded a $4.0 million gain related to ViaSat-2 insurance claims in SG&A expenses in its satellite services segment in the condensed consolidated statements of operations and comprehensive incomes (loss). The ViaSat-2 satellite was primarily financed by the Ex-Im Credit Facility (see Note 6 — Senior Notes and Other Long-Term Debt for more information). Pursuant to the terms of the Ex-Im Credit Facility, insurance proceeds received from such claims were used to pay down outstanding borrowings under the Ex-Im Credit Facility. Occasionally, the Company may enter into capital lease arrangements for various machinery, equipment, computer-related equipment, software, furniture or fixtures. The Company records amortization of assets leased under capital lease arrangements within depreciation expense. |
Capitalized interest policy | Interest expense is capitalized on the carrying value of assets under construction, in accordance with the authoritative guidance for the capitalization of interest (ASC 835-20). |
Patents, orbital slots and other licenses | Patents, orbital slots and other licenses The Company capitalizes the costs of obtaining or acquiring patents, orbital slots and other licenses. Amortization of intangible assets that have finite lives is provided for by the straight-line method over the shorter of the legal or estimated economic life. Total capitalized costs of $3.2 million related to patents were included in other assets as of December 31, 2018 and March 31, 2018. The Company capitalized costs of $16.4 million and $15.4 million related to acquiring and obtaining orbital slots and other licenses included in other assets as of December 31, 2018 and March 31, 2018, respectively. Accumulated amortization related to these assets was $2.9 million and $2.5 million as of December 31, 2018 and March 31, 2018, respectively. Amortization expense related to these assets was an insignificant amount for the three and nine months ended December 31, 2018 and 2017. If a patent, orbital slot or orbital license is rejected, abandoned or otherwise invalidated, the unamortized cost is expensed in that period. During the three and nine months ended December 31, 2018 and 2017, the Company did not write off any significant costs due to abandonment or impairment. |
Debt issuance costs | Debt issuance costs Debt issuance costs are amortized and recognized as interest expense using the effective interest rate method, or, when the results are not materially different, on a straight-line basis over the expected term of the related debt. During the three months ended December 31, 2018 and 2017, no debt issuance costs were capitalized. The Company capitalized no and $9.8 million of debt issuance costs during the nine months ended December 31, 2018 and 2017, respectively. Unamortized debt issuance costs related to extinguished debt are expensed at the time the debt is extinguished and recorded in loss on extinguishment of debt in the condensed consolidated statements of operations and comprehensive income (loss). 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 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 $244.9 million and $246.8 million related to software developed for resale were included in other assets as of December 31, 2018 and March 31, 2018, respectively. The Company capitalized $11.7 million and $32.7 million of costs related to software developed for resale for the three and nine months ended December 31, 2018, respectively. The Company capitalized $20.2 million and $58.0 million of costs related to software developed for resale for the three and nine months ended December 31, 2017, respectively. Amortization expense for capitalized software development costs was $11.5 million and $34.6 million for the three and nine months ended December 31, 2018, respectively, and $6.8 million and $23.1 million for the three and nine months ended December 31, 2017, 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 $5.2 million and $4.5 million in accrued liabilities in the condensed consolidated balance sheets as of December 31, 2018 and March 31, 2018, respectively. The Company’s estimate, which is subject to inherent variability, is based on average claims experience in the Company’s industry and its own experience in terms of frequency and severity of claims, including asserted and unasserted claims incurred but not reported, with no explicit provision for adverse fluctuation from year to year. This variability may lead to ultimate payments being either greater or less than the amounts presented above. Self-insurance liabilities have been classified as a current liability in accrued liabilities in accordance with the estimated timing of the projected payments. |
Indemnification provisions | Indemnification provisions In the ordinary course of business, the Company includes indemnification provisions in certain of its contracts, generally relating to parties with which the Company has commercial relations. Pursuant to these agreements, the Company will indemnify, hold harmless and agree to reimburse the indemnified party for losses suffered or incurred by the indemnified party, including but not limited to losses relating to third-party intellectual property claims. To date, there have not been any material costs incurred in connection with such indemnification clauses. The Company’s insurance policies do not necessarily cover the cost of defending indemnification claims or providing indemnification, so if a claim was filed against the Company by any party that the Company has agreed to indemnify, the Company could incur substantial legal costs and damages. A claim would be accrued when a loss is considered probable and the amount can be reasonably estimated. At December 31, 2018 and March 31, 2018, 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 (loss) of unconsolidated affiliate, net on the condensed consolidated statements of operations and comprehensive income (loss). The Company monitors such investments for other-than-temporary impairment by considering factors including the current economic and market conditions and the operating performance of the entities and records reductions in carrying values when necessary. The fair value of privately held investments is estimated using the best available information as of the valuation date, including current earnings trends, undiscounted cash flows, quoted stock prices of comparable public companies, and other company specific information, including recent financing rounds. |
Derivatives | Derivatives 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. Expense for restricted stock units and stock options is recognized on a straight-line basis over the employee’s requisite service period. Expense for total shareholder return (TSR) performance stock options that vest is recognized regardless of the actual TSR outcome achieved and is recognized on a graded-vesting basis. The Company accounts for forfeitures as they occur. |
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. 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 Financial Accounting Standards Board (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 replaced most existing revenue recognition guidance and became 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 adopted this standard effective as of April 1, 2018 utilizing the “modified retrospective method.” For additional information see Note 1 – Revenue recognition 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 was required to be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments – Overall (ASC 825-10), which clarified certain aspects of the guidance issued in ASU 2016-01. ASU 2016-01 became effective for the Company in fiscal year 2019. The Company adopted the guidance in ASU 2016-01 beginning in the first quarter of fiscal year 2019 on a modified retrospective basis and adopted the guidance in ASU 2018-03 beginning in the second quarter of fiscal year 2019. The guidance in both ASU 2016-01 and ASU 2018-03 did not have a material impact on the Company’s 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. In January 2018, the FASB issued ASU 2018-01, Leases (ASC 842). ASU 2018-01 permits an entity to elect an optional transition practical expedient to not evaluate land easements that exist or expired before the entity’s adoption of ASC 842 and that were not previously accounted for as leases under ASC 840. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to ASC 842, Leases, which was issued to provide more detailed guidance and additional clarification for implementing ASU 2016-02. In July 2018, the FASB issued ASU 2018-11, Leases (ASC 842): Targeted Improvements, which provides an additional (and optional) transition method whereby the new lease standard is applied at the adoption date and recognized as an adjustment to retained earnings. In December 2018, the FASB issued ASU 2018-20, Leases (ASC 842): Narrow-Scope Improvements for Lessors, which provides certain amendments that affect narrow aspects of the guidance issued in ASU 2016-02. The new guidance will become effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted. The Company expects to adopt the new guidance on April 1, 2019, using the optional transition method. Therefore, it is expected that periods prior to the effective date of adoption will continue to be reported under the current authoritative guidance for leases (ASC 840). Upon adoption, the Company expects a material impact to its consolidated balance sheet due to the recognition of lease liabilities and right-of-use assets. The Company does not expect the new guidance to have a material impact on its consolidated statement of operations and comprehensive income (loss) or statement of cash flows. 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. Subsequently, in November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses (ASC 326), which clarifies that impairment of receivables arising from operating leases should be accounted for in accordance with ASC 842, Leases. 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 became effective for the Company beginning in fiscal year 2019, with early adoption permitted. The new standard required adoption on a retrospective basis unless impracticable to apply, in which case the Company would have been 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 were classified as cash outflows for financing activities in fiscal year 2018. 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 became effective for the Company beginning in the first quarter of fiscal year 2019. The new standard requires adoption on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period. The Company adopted this guidance beginning in the first quarter of fiscal year 2019 on a modified 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 became effective for the Company beginning in the first quarter of fiscal year 2019. The Company adopted this guidance beginning in the first quarter of fiscal year 2019 on a prospective 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 2017-04, 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 became effective for the Company beginning in the first quarter of fiscal year 2019. The Company adopted this guidance beginning in the first quarter of fiscal year 2019 on a prospective basis and the guidance did not have a material impact on the Company’s 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 became effective for the Company beginning in the first quarter of fiscal year 2019. The Company early adopted this standard beginning in the fourth quarter of fiscal year 2018. The guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (ASC 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. In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (ASC 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index SWAP (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes. ASU 2018-16 permits use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes. These standards will become effective for the Company beginning in fiscal year 2020, with early adoption permitted. The Company is currently evaluating the impact of these standards on its consolidated financial statements and disclosures. In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (ASC 718): Improvements to Nonemployee Share-Based Payment Accounting. ASU 2018-07 simplifies the accounting for nonemployee share-based payment transactions. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. The new standard will become effective for the Company beginning in fiscal year 2020, with early adoption permitted. The Company early adopted the guidance in the first quarter of fiscal year 2019 and the guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. In July 2018, the FASB issued ASU 2018-09, Codification Improvements, which is related to a project by the FASB to facilitate codification updates for technical corrections, clarifications and other minor improvements. The new standard contains amendments that affect a wide variety of topics in the ASC. The effective date of the standard is dependent on the facts and circumstances of each amendment. Some amendments do not require transition guidance and were effective upon the issuance of this standard. A majority of the amendments in ASU 2018-09 will become effective for the Company beginning in fiscal year 2020. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures, however this standard has not and is not expected to have a material impact on its consolidated financial statements and disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (ASC 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The new 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 August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (ASC 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The new standard will become effective for the Company beginning in fiscal year 2021, with early adoption permitted. The Company early adopted the guidance in the second quarter of fiscal year 2019 on a prospective basis and the adoption of the guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. |
Fair value measurements | In accordance with the authoritative guidance for financial assets and liabilities measured at fair value on a recurring basis (ASC 820), the Company determines fair value based on the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants, and prioritizes the inputs used to measure fair value from market-based assumptions to entity specific assumptions: • Level 1 — Inputs based on quoted market prices for identical assets or liabilities in active markets at the measurement date. • Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Inputs which reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the instrument’s valuation. The Company had no assets and an insignificant amount of liabilities (Level 2) measured at fair value on a recurring basis as of December 31, 2018, and had an insignificant amount of assets (Level 1) and no liabilities measured at fair value on a recurring basis as of March 31, 2018. The following section describes the valuation methodologies the Company uses to measure financial instruments at fair value: Cash equivalents — The Company’s cash equivalents consist of money market funds. Money market funds are valued using quoted prices for identical assets in an active market with sufficient volume and frequency of transactions (Level 1). Foreign currency forward contracts — The Company uses derivative financial instruments to manage foreign currency risk relating to foreign exchange rates. The Company does not use these instruments for speculative or trading purposes. The Company’s objective is to reduce the risk to earnings and cash flows associated with changes in foreign currency exchange rates. Derivative instruments are recognized as either assets or liabilities in the accompanying condensed consolidated financial statements and are measured at fair value. Gains and losses resulting from changes in the fair values of those derivative instruments are recorded to earnings or other comprehensive income (loss) depending on the use of the derivative instrument and whether it qualifies for hedge accounting. The Company’s foreign currency forward contracts are valued using standard calculations/models that are primarily based on observable inputs, such as foreign currency exchange rates, or can be corroborated by observable market data (Level 2). Long-term debt — The Company’s long-term debt consists of borrowings under its Revolving Credit Facility and Ex-Im Credit Facility (collectively, the Credit Facilities), as well as $700.0 million in aggregate principal amount of 2025 Notes. Long-term debt related to the Revolving Credit Facility is reported at the outstanding principal amount of borrowings, while long-term debt related to the Ex-Im Credit Facility and the Company’s current and former senior notes (including the 2025 Notes) is reported at amortized cost. However, for disclosure purposes, the Company is required to measure the fair value of outstanding debt on a recurring basis. As of December 31, 2018 and March 31, 2018, the estimated fair value of the Company’s outstanding long-term debt related to the 2025 Notes was determined based on actual or estimated bids and offers for the 2025 Notes in an over-the-counter market (Level 2) and was $644.0 million and $674.0 million, respectively. The fair value of the Company’s long-term debt related to the Revolving Credit Facility approximates its carrying amount due to its variable interest rate, which approximates a market interest rate. As of December 31, 2018 and March 31, 2018, the fair value of the Company’s long-term debt related to the Ex-Im Credit Facility was determined based on a discounted cash flow analysis using observable market interest rates for instruments with similar terms (Level 2) and was approximately $144.7 million and $347.4 million, respectively Satellite performance incentive obligations — The Company’s contracts with the manufacturers of the ViaSat-1 and ViaSat-2 satellites require the Company to make monthly in-orbit satellite performance incentive payments, including interest, through approximately fiscal year 2028, subject to the continued satisfactory performance of the applicable satellites. The Company records the net present value of these expected future payments as a liability and as a component of the cost of the satellite. However, for disclosure purposes, the Company is required to measure the fair value of outstanding satellite performance incentive obligations on a recurring basis. The fair value of the Company’s outstanding satellite performance incentive obligations is estimated to approximate their carrying value based on current rates (Level 2). As of December 31, 2018 and March 31, 2018, the Company’s estimated satellite performance incentive obligations relating to the ViaSat-1 and ViaSat-2 satellites, including accrued interest, were $33.4 million and $21.0 million, respectively. |
Other acquired intangible assets | Other acquired intangible assets are amortized using the straight-line method over their estimated useful lives of two to ten years. |
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. |
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. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Summary of Disaggregation of Revenue by Segment and Product and Services | The following sets forth disaggregated reported revenue by segment and product and services for the three and nine months ended December 31, 2018: Three Months Ended December 31, 2018 Satellite Services Commercial Networks Government Systems Total Revenues (In thousands) Product revenues $ — $ 115,409 $ 186,456 $ 301,865 Service revenues 177,651 11,568 63,610 252,829 Total revenues $ 177,651 $ 126,977 $ 250,066 $ 554,694 Nine Months Ended December 31, 2018 Satellite Services Commercial Networks Government Systems Total Revenues (In thousands) Product revenues $ — $ 304,732 $ 495,697 $ 800,429 Service revenues 494,174 31,831 184,603 710,608 Total revenues $ 494,174 $ 336,563 $ 680,300 $ 1,511,037 |
Revenue by Geographic Area | Revenues by geographic area for the three and nine months ended December 31, 2018 were as follows: Three Months Ended Nine Months Ended December 31, 2018 December 31, 2018 (In thousands) U.S. customers $ 492,681 $ 1,341,073 Non U.S. customers 62,013 169,964 Total revenues $ 554,694 $ 1,511,037 |
Summary of Contract Assets and Liabilities | The following table presents contract assets and liabilities as of December 31, 2018 and April 1, 2018: As of December 31, 2018 As of April 1, 2018 (In thousands) Unbilled accounts receivable $ 87,085 $ 79,492 Collections in excess of revenues and deferred revenues 127,286 127,355 Deferred revenues, long-term portion 81,877 77,831 |
ASC 606 [Member] | |
Summary of Impact of Adopting New Standards on Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) and Balance Sheets | The following table presents the summary of the impact of adopting the new standards: As of March 31, 2018 Adjustments Due to ASC 606 As of April 1, 2018 (In thousands) Condensed Consolidated Balance Sheets: Accounts receivable, net $ 267,665 $ (5,664 ) $ 262,001 Inventories 196,307 1,623 197,930 Prepaid expenses and other current assets 77,135 18,098 95,233 Other assets 686,134 19,107 705,241 Accrued liabilities 263,676 5,916 269,592 Retained earnings 285,960 27,248 313,208 The Company adopted ASC 606 as of April 1, 2018 using the “modified retrospective method” under which the Company is required to provide additional disclosures comparing results to previous accounting standards. Accordingly, the following table presents the Company’s reported results under ASC 606 and the Company’s pro forma results using the historical accounting method under ASC 605 for the three and nine months ended December 31, 2018 and as of December 31, 2018: Three Months Ended December 31, 2018 As Reported Impact of ASC 606 Historical Accounting Method (In thousands, except per share data) Condensed Consolidated Statements of Operations and Comprehensive Income (Loss): Product revenues $ 301,865 $ (789 ) $ 301,076 Service revenues 252,829 (771 ) 252,058 Total revenues 554,694 (1,560 ) 553,134 Cost of product revenues 226,020 (522 ) 225,498 Cost of service revenues 176,686 (47 ) 176,639 Selling, general and administrative 114,566 1,038 115,604 Independent research and development 28,928 1,658 30,586 Income from operations 6,007 (3,687 ) 2,320 Interest expense (14,896 ) 1,084 (13,812 ) Loss before income taxes (8,858 ) (2,603 ) (11,461 ) Provision for income taxes (3,230 ) 1,970 (1,260 ) Net loss (10,737 ) (633 ) (11,370 ) Net loss attributable to Viasat, Inc. (10,404 ) (633 ) (11,037 ) Basic net loss per share attributable to Viasat, Inc. common stockholders $ (0.17 ) $ (0.01 ) $ (0.18 ) Diluted net loss per share attributable to Viasat, Inc. common stockholders $ (0.17 ) $ (0.01 ) $ (0.18 ) Nine Months Ended December 31, 2018 As Reported Impact of ASC 606 Historical Accounting Method (In thousands, except per share data) Condensed Consolidated Statements of Operations and Comprehensive Income (Loss): Product revenues $ 800,429 $ (4,990 ) $ 795,439 Service revenues 710,608 (2,348 ) 708,260 Total revenues 1,511,037 (7,338 ) 1,503,699 Cost of product revenues 616,368 (3,669 ) 612,699 Cost of service revenues 523,348 (117 ) 523,231 Selling, general and administrative 340,328 7,247 347,575 Independent research and development 93,661 5,903 99,564 Loss from operations (70,043 ) (16,702 ) (86,745 ) Interest expense (40,294 ) 3,087 (37,207 ) Loss before income taxes (110,241 ) (13,614 ) (123,855 ) Benefit from income taxes 35,679 3,725 39,404 Net loss (71,832 ) (9,890 ) (81,722 ) Net loss attributable to Viasat, Inc. (70,138 ) (9,890 ) (80,028 ) Basic net loss per share attributable to Viasat, Inc. common stockholders $ (1.17 ) $ (0.17 ) $ (1.34 ) Diluted net loss per share attributable to Viasat, Inc. common stockholders $ (1.17 ) $ (0.17 ) $ (1.34 ) As of December 31, 2018 As Reported Impact of ASC 606 Historical Accounting Method (In thousands) Condensed Consolidated Balance Sheets: Accounts receivable, net $ 295,325 $ 2,047 $ 297,372 Inventories 230,122 (1,744 ) 228,378 Prepaid expenses and other current assets 115,844 (17,620 ) 98,224 Other assets 744,851 (25,104 ) 719,747 Accrued liabilities 292,260 (5,282 ) 286,978 Retained earnings 243,070 (37,138 ) 205,932 |
Composition of Certain Balanc_2
Composition of Certain Balance Sheet Captions (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Composition of Certain Balance Sheet Captions | As of December 31, 2018 As of March 31, 2018 (In thousands) Accounts receivable, net: Billed $ 209,587 $ 184,536 Unbilled 87,085 85,156 Allowance for doubtful accounts (1,347 ) (2,027 ) $ 295,325 $ 267,665 Inventories: Raw materials $ 78,850 $ 62,252 Work in process 52,240 47,465 Finished goods 99,032 86,590 $ 230,122 $ 196,307 Prepaid expenses and other current assets: Prepaid expenses $ 81,155 $ 68,516 Insurance receivable 12,317 — Other 22,372 8,619 $ 115,844 $ 77,135 Satellites, net: Satellites (estimated useful life of 10-17 years) $ 978,114 $ 1,152,503 Capital lease of satellite capacity — Anik F2 (estimated useful life of 10 years) 99,090 99,090 Satellites under construction 543,556 362,342 1,620,760 1,613,935 Less: accumulated depreciation and amortization (432,160 ) (373,948 ) $ 1,188,600 $ 1,239,987 Property and equipment, net: Equipment and software (estimated useful life of 2-7 years) $ 970,351 $ 864,140 CPE leased equipment (estimated useful life of 4-5 years) 354,430 298,746 Furniture and fixtures (estimated useful life of 7 years) 46,049 35,234 Leasehold improvements (estimated useful life of 2-17 years) 122,021 111,841 Building (estimated useful life of 24 years) 8,923 8,923 Land 2,291 15,322 Construction in progress 167,897 108,192 1,671,962 1,442,398 Less: accumulated depreciation (806,619 ) (719,910 ) $ 865,343 $ 722,488 Other acquired intangible assets, net: Technology (weighted average useful life of 6 years) $ 90,046 $ 90,652 Contracts and customer relationships (weighted average useful life of 7 years) 103,321 103,808 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) 10,013 10,137 217,920 219,137 Less: accumulated amortization (193,160 ) (187,275 ) $ 24,760 $ 31,862 Other assets: Investment in unconsolidated affiliate $ 162,617 $ 163,835 Deferred income taxes 251,992 222,274 Capitalized software costs, net 244,924 246,792 Patents, orbital slots and other licenses, net 16,700 16,100 Other 68,618 37,133 $ 744,851 $ 686,134 Accrued liabilities: Collections in excess of revenues and deferred revenues $ 127,286 $ 121,439 Accrued employee compensation 55,418 46,106 Accrued vacation 39,971 39,022 Warranty reserve, current portion 5,311 5,357 Other 64,274 51,752 $ 292,260 $ 263,676 Other liabilities: Deferred revenues, long-term portion $ 81,877 $ 77,831 Deferred rent, long-term portion 16,525 13,769 Warranty reserve, long-term portion 1,696 1,557 Satellite performance incentive obligations, long-term portion 25,292 18,181 Other 6,580 9,902 $ 131,970 $ 121,240 |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangible Assets (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
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 nine months ended December 31, 2018 $ 7,375 Expected for the remainder of fiscal year 2019 $ 2,209 Expected for fiscal year 2020 7,524 Expected for fiscal year 2021 5,133 Expected for fiscal year 2022 3,310 Expected for fiscal year 2023 3,005 Thereafter 3,579 $ 24,760 |
Senior Notes and Other Long-T_2
Senior Notes and Other Long-Term Debt (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | Total long-term debt consisted of the following as of December 31, 2018 and March 31, 2018: As of December 31, 2018 As of March 31, 2018 (In thousands) 2025 Notes $ 700,000 $ 700,000 Revolving Credit Facility 325,000 — Ex-Im Credit Facility 152,286 362,401 Total debt 1,177,286 1,062,401 Unamortized discount and debt issuance costs (18,696 ) (38,696 ) Less: current portion of long-term debt 21,755 45,300 Total long-term debt $ 1,136,835 $ 978,405 |
Product Warranty (Tables)
Product Warranty (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
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 nine months ended December 31, 2018 and 2017: Nine Months Ended December 31, 2018 December 31, 2017 (In thousands) Balance, beginning of period $ 6,914 $ 11,058 Change in liability for warranties issued in period 2,982 218 Settlements made (in cash or in kind) during the period (2,889 ) (3,931 ) Balance, end of period $ 7,007 $ 7,345 |
Equity Method Investments and_2
Equity Method Investments and Related-Party Transactions (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments And Related Party Transactions [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 December 31, 2018 and March 31, 2018 is summarized as follows: As of December 31, 2018 As of March 31, 2018 (In thousands) Carrying value of investment in Euro Infrastructure Co. $ 162,617 $ 163,835 Less: proportionate share of net assets of Euro Infrastructure Co. 146,250 147,115 Excess carrying value of investment over proportionate share of net assets $ 16,367 $ 16,720 The excess carrying value has been primarily assigned to: Goodwill $ 22,791 $ 23,523 Identifiable intangible assets 11,225 12,839 Tangible assets (19,255 ) (21,342 ) Deferred income taxes 1,606 1,700 $ 16,367 $ 16,720 |
Schedule of Related Party Transactions | The following tables set forth the material related-party transactions entered into between Euro Infrastructure Co. and its subsidiaries, or Ducommon Inc. (inventory procurement) 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 Nine Months Ended December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 (In thousands) Revenue – Euro Infrastructure Co. $ 1,620 $ 1,945 $ 4,798 $ 7,574 Expense – Euro Infrastructure Co. 5,664 1,725 10,254 5,313 Cash received – Euro Infrastructure Co. 4,048 2,191 10,102 6,540 Cash paid – Euro Infrastructure Co. 6,585 1,407 10,677 5,416 Cash paid – Ducommun Inc. 8,209 * 15,188 * As of December 31, 2018 As of March 31, 2018 (In thousands) Accounts receivable – Euro Infrastructure Co. $ ** $ 3,307 Collections in excess of revenues and deferred revenues – Euro Infrastructure Co. 7,438 3,246 Accounts payable – Ducommun Inc. 4,287 2,073 * There was no related-party activity for the period indicated. ** Amount was insignificant. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Revenues and Operating Profits (Losses) | Segment revenues and operating profits (losses) for the three and nine months ended December 31, 2018 and 2017 were as follows: Three Months Ended Nine Months Ended December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 (In thousands) Revenues: Satellite services Product $ — $ 233 $ — $ 664 Service 177,651 144,310 494,174 443,671 Total 177,651 144,543 494,174 444,335 Commercial networks Product 115,409 47,073 304,732 130,903 Service 11,568 8,463 31,831 26,150 Total 126,977 55,536 336,563 157,053 Government systems Product 186,456 128,651 495,697 392,291 Service 63,610 53,107 184,603 161,276 Total 250,066 181,758 680,300 553,567 Elimination of intersegment revenues — — — — Total revenues $ 554,694 $ 381,837 $ 1,511,037 $ 1,154,955 Operating profits (losses): Satellite services $ (10,196 ) $ 1,681 $ (64,971 ) $ 33,140 Commercial networks (31,219 ) (53,505 ) (117,424 ) (179,007 ) Government systems 49,909 29,675 119,727 96,488 Elimination of intersegment operating profits — — — — Segment operating profit (loss) before corporate and amortization of acquired intangible assets 8,494 (22,149 ) (62,668 ) (49,379 ) Corporate — — — — Amortization of acquired intangible assets (2,487 ) (3,177 ) (7,375 ) (9,757 ) Income (loss) from operations $ 6,007 $ (25,326 ) $ (70,043 ) $ (59,136 ) |
Segment Assets | Segment assets as of December 31, 2018 and March 31, 2018 were as follows: As of December 31, 2018 As of March 31, 2018 (In thousands) Segment assets: Satellite services $ 77,548 $ 66,830 Commercial networks 230,057 211,447 Government systems 363,319 337,451 Total segment assets 670,924 615,728 Corporate assets 2,958,792 2,798,381 Total assets $ 3,629,716 $ 3,414,109 |
Other Acquired Intangible Assets, Net and Goodwill Included in Segment Assets and Amortization of Acquired Intangible Assets by Segment | Other acquired intangible assets, net and goodwill included in segment assets as of December 31, 2018 and March 31, 2018 were as follows: Other Acquired Intangible Assets, Net Goodwill As of December 31, 2018 As of March 31, 2018 As of December 31, 2018 As of March 31, 2018 (In thousands) Satellite services $ 11,751 $ 16,580 $ 13,694 $ 13,991 Commercial networks 2,183 3,340 43,955 44,011 Government systems 10,826 11,942 63,857 63,083 Total $ 24,760 $ 31,862 $ 121,506 $ 121,085 Amortization of acquired intangible assets by segment for the three and nine months ended December 31, 2018 and 2017 was as follows: Three Months Ended Nine Months Ended December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 (In thousands) Satellite services $ 1,183 $ 2,031 $ 3,776 $ 6,297 Commercial networks 386 385 1,157 1,178 Government systems 918 761 2,442 2,282 Total amortization of acquired intangible assets $ 2,487 $ 3,177 $ 7,375 $ 9,757 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Dec. 31, 2018USD ($)shares | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($)shares | Dec. 31, 2018USD ($)Segmentshares | Dec. 31, 2017USD ($)shares | Mar. 31, 2018USD ($)shares | |
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Remaining performance obligations | $ 1,800,000,000 | $ 1,800,000,000 | $ 1,800,000,000 | ||||
Number of reportable segments | Segment | 3 | ||||||
Collections in excess of revenues and deferred revenues, recognized revenue | 12,600,000 | $ 94,700,000 | |||||
Capitalized contract cost amortization and reduction of carrying value associated with contract termination | 10,600,000 | 30,900,000 | |||||
Advertising costs | 12,200,000 | $ 3,200,000 | 29,100,000 | $ 6,700,000 | |||
Capitalized interest expense | 15,600,000 | 15,800,000 | 29,300,000 | 46,500,000 | |||
Proceeds from insurance claims on ViaSat-2 satellite | 172,206,000 | ||||||
Insurance claim receivable | 12,317,000 | 12,317,000 | 12,317,000 | ||||
Total capitalized costs related to patents | 3,200,000 | 3,200,000 | 3,200,000 | $ 3,200,000 | |||
Total capitalized costs related to orbital slots and other licenses | 16,400,000 | 16,400,000 | 16,400,000 | 15,400,000 | |||
Accumulated amortization of patents, orbital slots and other licenses | 2,900,000 | 2,900,000 | 2,900,000 | 2,500,000 | |||
Debt issuance costs capitalized | 0 | 0 | 0 | 9,800,000 | |||
Capitalized costs, net, related to software developed for resale | 244,924,000 | 244,924,000 | 244,924,000 | 246,792,000 | |||
Capitalized cost related to software development for resale | 11,700,000 | 20,200,000 | 32,700,000 | 58,000,000 | |||
Amortization expense of capitalized software development costs | 11,500,000 | 6,800,000 | 34,600,000 | 23,100,000 | |||
Self-insurance liability | 5,200,000 | 5,200,000 | 5,200,000 | $ 4,500,000 | |||
Repurchase and immediate retirement of treasury shares pursuant to vesting of certain RSU agreements | 23,680,000 | ||||||
Stock-based compensation expense | 20,200,000 | 17,600,000 | 58,658,000 | 49,132,000 | |||
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 | 12,400,000 | $ 12,400,000 | $ 12,400,000 | ||||
Foreign currency forward contracts maturity, maximum | 21 months | ||||||
Gains or losses from ineffectiveness of derivative instruments | $ 0 | $ 0 | $ 0 | $ 0 | |||
Common Stock Held in Treasury [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Shares of common stock held in treasury | shares | 0 | 0 | 0 | 0 | |||
Purchase of treasury shares pursuant to vesting of certain RSU agreements | shares | 417,465 | 327,585 | |||||
Repurchase and immediate retirement of treasury shares pursuant to vesting of certain RSU agreements | $ 28,100,000 | $ 23,700,000 | |||||
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 | shares | 1,172,049 | 872,271 | |||||
Property Plant and Equipment - Satellites [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Reduction in property and equipment, net | $ 177,400,000 | ||||||
ViaSat-2 Satellite [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Estimated insurance claim receivable | $ 177,400,000 | $ 177,400,000 | $ 177,400,000 | ||||
Proceeds from insurance claims on ViaSat-2 satellite | 172,200,000 | ||||||
Insurance claim receivable | 12,300,000 | 12,300,000 | $ 12,300,000 | ||||
ViaSat-2 Satellite [Member] | Selling, General and Administrative Expenses [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Gain on insurance claims | 4,000,000 | ||||||
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 | ||||||
Minimum [Member] | CPE Leased Equipment [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Property, equipment and satellites, estimated useful life (years) | 4 years | ||||||
Maximum [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Property, equipment and satellites, estimated useful life (years) | 24 years | ||||||
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 | ||||||
Maximum [Member] | CPE Leased Equipment [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Property, equipment and satellites, estimated useful life (years) | 5 years | ||||||
Prepaid Expenses and Other Current Assets [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Deferred customer contract costs | 19,600,000 | 19,600,000 | $ 19,600,000 | ||||
Other Assets [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Deferred customer contract costs | 38,600,000 | 38,600,000 | 38,600,000 | ||||
Property and Equipment, Net [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Property and equipment | 1,671,962,000 | 1,671,962,000 | 1,671,962,000 | $ 1,442,398,000 | |||
Accumulated depreciation and amortization | 806,619,000 | 806,619,000 | 806,619,000 | 719,910,000 | |||
Property and Equipment, Net [Member] | CPE Leased Equipment [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Property and equipment | 354,430,000 | 354,430,000 | 354,430,000 | 298,746,000 | |||
Accumulated depreciation and amortization | 137,600,000 | 137,600,000 | 137,600,000 | 129,000,000 | |||
Deferred Customer Contract Fulfillment Costs [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Deferred customer contract costs | 8,700,000 | 8,700,000 | 8,700,000 | ||||
Deferred Customer Contract Acquisition Costs [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Deferred customer contract costs | $ 49,500,000 | 49,500,000 | $ 49,500,000 | ||||
Funded Research and Development from Customer Contracts [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Percentage of revenue | 18.00% | 17.00% | |||||
Operating Segments [Member] | Commercial Networks and Government Systems [Member] | Fixed-price Contract [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Percentage of revenue | 89.00% | 89.00% | |||||
U.S. Government as an Individual Customer [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Percentage of revenue | 23.00% | 27.00% | |||||
Commercial Customers [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Percentage of revenue | 77.00% | 73.00% | |||||
Accounting Standards Update 2014-09 [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Revenue, practical expedient, financing component | true | ||||||
Revenue, practical expedient, incremental cost of obtaining contract [true false] | true | ||||||
Description of new accounting pronouncements | In May 2014, the Financial Accounting Standards Board (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 replaced most existing revenue recognition guidance and became 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 adopted this standard effective as of April 1, 2018 utilizing the “modified retrospective method.” For additional information see Note 1 – Revenue recognition. | ||||||
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 was required to be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments – Overall (ASC 825-10), which clarified certain aspects of the guidance issued in ASU 2016-01. ASU 2016-01 became effective for the Company in fiscal year 2019. The Company adopted the guidance in ASU 2016-01 beginning in the first quarter of fiscal year 2019 on a modified retrospective basis and adopted the guidance in ASU 2018-03 beginning in the second quarter of fiscal year 2019. The guidance in both ASU 2016-01 and ASU 2018-03 did not have a material impact on the Company’s 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. In January 2018, the FASB issued ASU 2018-01, Leases (ASC 842). ASU 2018-01 permits an entity to elect an optional transition practical expedient to not evaluate land easements that exist or expired before the entity’s adoption of ASC 842 and that were not previously accounted for as leases under ASC 840. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to ASC 842, Leases, which was issued to provide more detailed guidance and additional clarification for implementing ASU 2016-02. In July 2018, the FASB issued ASU 2018-11, Leases (ASC 842): Targeted Improvements, which provides an additional (and optional) transition method whereby the new lease standard is applied at the adoption date and recognized as an adjustment to retained earnings. In December 2018, the FASB issued ASU 2018-20, Leases (ASC 842): Narrow-Scope Improvements for Lessors, which provides certain amendments that affect narrow aspects of the guidance issued in ASU 2016-02. The new guidance will become effective for the Company beginning in the first quarter of fiscal year 2020, with early adoption permitted. The Company expects to adopt the new guidance on April 1, 2019, using the optional transition method. Therefore, it is expected that periods prior to the effective date of adoption will continue to be reported under the current authoritative guidance for leases (ASC 840). Upon adoption, the Company expects a material impact to its consolidated balance sheet due to the recognition of lease liabilities and right-of-use assets. The Company does not expect the new guidance to have a material impact on its consolidated statement of operations and comprehensive income (loss) or statement of cash flows. | ||||||
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. Subsequently, in November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses (ASC 326), which clarifies that impairment of receivables arising from operating leases should be accounted for in accordance with ASC 842, Leases. 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 became effective for the Company beginning in fiscal year 2019, with early adoption permitted. The new standard required adoption on a retrospective basis unless impracticable to apply, in which case the Company would have been 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 were classified as cash outflows for financing activities in fiscal year 2018. 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 became effective for the Company beginning in the first quarter of fiscal year 2019. The new standard requires adoption on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period. The Company adopted this guidance beginning in the first quarter of fiscal year 2019 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 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 became effective for the Company beginning in the first quarter of fiscal year 2019. The Company adopted this guidance beginning in the first quarter of fiscal year 2019 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 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 2017-05 [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 became effective for the Company beginning in the first quarter of fiscal year 2019. The Company adopted this guidance beginning in the first quarter of fiscal year 2019 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 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 became effective for the Company beginning in the first quarter of fiscal year 2019. The Company early adopted this standard beginning in the fourth quarter of fiscal year 2018. The guidance did not have a material impact on the Company’s 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 (ASC 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. In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (ASC 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index SWAP (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes. ASU 2018-16 permits use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes. These standards will become effective for the Company beginning in fiscal year 2020, with early adoption permitted. The Company is currently evaluating the impact of these standards on its consolidated financial statements and disclosures. | ||||||
Accounting Standards Update 2018-07 [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Description of new accounting pronouncements | In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (ASC 718): Improvements to Nonemployee Share-Based Payment Accounting. ASU 2018-07 simplifies the accounting for nonemployee share-based payment transactions. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. The new standard will become effective for the Company beginning in fiscal year 2020, with early adoption permitted. The Company early adopted the guidance in the first quarter of fiscal year 2019 and the guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. | ||||||
Accounting Standards Update 2018-09 [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Description of new accounting pronouncements | In July 2018, the FASB issued ASU 2018-09, Codification Improvements, which is related to a project by the FASB to facilitate codification updates for technical corrections, clarifications and other minor improvements. The new standard contains amendments that affect a wide variety of topics in the ASC. The effective date of the standard is dependent on the facts and circumstances of each amendment. Some amendments do not require transition guidance and were effective upon the issuance of this standard. A majority of the amendments in ASU 2018-09 will become effective for the Company beginning in fiscal year 2020. The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures, however this standard has not and is not expected to have a material impact on its consolidated financial statements and disclosures. | ||||||
Accounting Standards Update 2018-13 [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Description of new accounting pronouncements | In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (ASC 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The new 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 2018-15 [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Description of new accounting pronouncements | In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (ASC 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The new standard will become effective for the Company beginning in fiscal year 2021, with early adoption permitted. The Company early adopted the guidance in the second quarter of fiscal year 2019 on a prospective basis and the adoption of the guidance did not have a material impact on the Company’s consolidated financial statements and disclosures. | ||||||
Unfavorable Regulatory Action [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Accrued reserves | $ 4,900,000 | 4,900,000 | $ 4,900,000 | 1,600,000 | |||
Indemnification Agreement [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Accrued reserves | $ 0 | $ 0 | $ 0 | $ 0 | |||
Euro Retail Co [Member] | |||||||
Company And Summary Of Significant Accounting Policies [Line Items] | |||||||
Equity method investment ownership percentage | 49.00% |
Basis of Presentation - Summary
Basis of Presentation - Summary of Impact of Adopting New Standards on Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Apr. 01, 2018 | Mar. 31, 2018 |
Disaggregation Of Revenue [Line Items] | |||
Accounts receivable, net | $ 295,325 | $ 267,665 | |
Inventories | 230,122 | 196,307 | |
Prepaid expenses and other current assets | 115,844 | 77,135 | |
Other assets | 744,851 | 686,134 | |
Accrued liabilities | 292,260 | 263,676 | |
Retained earnings | 243,070 | $ 285,960 | |
ASC 606 [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Accounts receivable, net | $ 262,001 | ||
Inventories | 197,930 | ||
Prepaid expenses and other current assets | 95,233 | ||
Other assets | 705,241 | ||
Accrued liabilities | 269,592 | ||
Retained earnings | 313,208 | ||
Impact of ASC 606 [Member] | ASC 606 [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Accounts receivable, net | 2,047 | (5,664) | |
Inventories | (1,744) | 1,623 | |
Prepaid expenses and other current assets | (17,620) | 18,098 | |
Other assets | (25,104) | 19,107 | |
Accrued liabilities | (5,282) | 5,916 | |
Retained earnings | (37,138) | $ 27,248 | |
Historical Accounting Method [Member] | ASC 606 [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Accounts receivable, net | 297,372 | ||
Inventories | 228,378 | ||
Prepaid expenses and other current assets | 98,224 | ||
Other assets | 719,747 | ||
Accrued liabilities | 286,978 | ||
Retained earnings | $ 205,932 |
Basis of Presentation - Addit_2
Basis of Presentation - Additional Information (Detail 1) | 9 Months Ended |
Dec. 31, 2018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01 | |
Company And Summary Of Significant Accounting Policies [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, explanation | Company expects to recognize approximately half over the next twelve months, with the balance recognized thereafter |
Basis of Presentation - Summa_2
Basis of Presentation - Summary of Disaggregation of Revenue by Segment and Product and Services (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | $ 554,694 | $ 381,837 | $ 1,511,037 | $ 1,154,955 |
Product [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 301,865 | 175,957 | 800,429 | 523,858 |
Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 252,829 | 205,880 | 710,608 | 631,097 |
Operating Segments [Member] | Satellite Services [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 177,651 | 144,543 | 494,174 | 444,335 |
Operating Segments [Member] | Satellite Services [Member] | Product [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 233 | 664 | ||
Operating Segments [Member] | Satellite Services [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 177,651 | 144,310 | 494,174 | 443,671 |
Operating Segments [Member] | Commercial Networks [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 126,977 | 55,536 | 336,563 | 157,053 |
Operating Segments [Member] | Commercial Networks [Member] | Product [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 115,409 | 47,073 | 304,732 | 130,903 |
Operating Segments [Member] | Commercial Networks [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 11,568 | 8,463 | 31,831 | 26,150 |
Operating Segments [Member] | Government Systems [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 250,066 | 181,758 | 680,300 | 553,567 |
Operating Segments [Member] | Government Systems [Member] | Product [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 186,456 | 128,651 | 495,697 | 392,291 |
Operating Segments [Member] | Government Systems [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | $ 63,610 | $ 53,107 | $ 184,603 | $ 161,276 |
Basis of Presentation - Revenue
Basis of Presentation - Revenues by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 554,694 | $ 381,837 | $ 1,511,037 | $ 1,154,955 |
U.S. Customers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 492,681 | 1,341,073 | ||
Non U.S. Customers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 62,013 | $ 169,964 |
Basis of Presentation - Summa_3
Basis of Presentation - Summary of Contract Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Apr. 01, 2018 |
Accounting Policies [Abstract] | ||
Unbilled accounts receivable | $ 87,085 | $ 79,492 |
Collections in excess of revenues and deferred revenues | 127,286 | 127,355 |
Deferred revenues, long-term portion | $ 81,877 | $ 77,831 |
Basis of Presentation - Summa_4
Basis of Presentation - Summary of Impact of Adopting New Standards on Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | $ 554,694 | $ 381,837 | $ 1,511,037 | $ 1,154,955 |
Selling, general and administrative | 114,566 | 100,125 | 340,328 | 279,382 |
Independent research and development | 28,928 | 40,149 | 93,661 | 131,482 |
Income (loss) from operations | 6,007 | (25,326) | (70,043) | (59,136) |
Interest expense | (14,896) | (40,294) | (253) | |
Loss before income taxes | (8,858) | (24,814) | (110,241) | (68,824) |
(Provision for) benefit from income taxes | (3,230) | (2,172) | 35,679 | 18,472 |
Net loss | (10,737) | (25,621) | (71,832) | (48,759) |
Net loss attributable to Viasat, Inc. | $ (10,404) | $ (24,631) | $ (70,138) | $ (47,359) |
Basic net loss per share attributable to Viasat, Inc. common stockholders | $ (0.17) | $ (0.42) | $ (1.17) | $ (0.81) |
Diluted net loss per share attributable to Viasat, Inc. common stockholders | $ (0.17) | $ (0.42) | $ (1.17) | $ (0.81) |
Product [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | $ 301,865 | $ 175,957 | $ 800,429 | $ 523,858 |
Cost of revenues | 226,020 | 126,437 | 616,368 | 382,932 |
Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 252,829 | 205,880 | 710,608 | 631,097 |
Cost of revenues | 176,686 | $ 137,275 | 523,348 | $ 410,538 |
Impact of ASC 606 [Member] | ASC 606 [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | (1,560) | (7,338) | ||
Selling, general and administrative | 1,038 | 7,247 | ||
Independent research and development | 1,658 | 5,903 | ||
Income (loss) from operations | (3,687) | (16,702) | ||
Interest expense | 1,084 | 3,087 | ||
Loss before income taxes | (2,603) | (13,614) | ||
(Provision for) benefit from income taxes | 1,970 | 3,725 | ||
Net loss | (633) | (9,890) | ||
Net loss attributable to Viasat, Inc. | $ (633) | $ (9,890) | ||
Basic net loss per share attributable to Viasat, Inc. common stockholders | $ (0.01) | $ (0.17) | ||
Diluted net loss per share attributable to Viasat, Inc. common stockholders | $ (0.01) | $ (0.17) | ||
Impact of ASC 606 [Member] | ASC 606 [Member] | Product [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | $ (789) | $ (4,990) | ||
Cost of revenues | (522) | (3,669) | ||
Impact of ASC 606 [Member] | ASC 606 [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | (771) | (2,348) | ||
Cost of revenues | (47) | (117) | ||
Historical Accounting Method [Member] | ASC 606 [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 553,134 | 1,503,699 | ||
Selling, general and administrative | 115,604 | 347,575 | ||
Independent research and development | 30,586 | 99,564 | ||
Income (loss) from operations | 2,320 | (86,745) | ||
Interest expense | (13,812) | (37,207) | ||
Loss before income taxes | (11,461) | (123,855) | ||
(Provision for) benefit from income taxes | (1,260) | 39,404 | ||
Net loss | (11,370) | (81,722) | ||
Net loss attributable to Viasat, Inc. | $ (11,037) | $ (80,028) | ||
Basic net loss per share attributable to Viasat, Inc. common stockholders | $ (0.18) | $ (1.34) | ||
Diluted net loss per share attributable to Viasat, Inc. common stockholders | $ (0.18) | $ (1.34) | ||
Historical Accounting Method [Member] | ASC 606 [Member] | Product [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | $ 301,076 | $ 795,439 | ||
Cost of revenues | 225,498 | 612,699 | ||
Historical Accounting Method [Member] | ASC 606 [Member] | Service [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenues | 252,058 | 708,260 | ||
Cost of revenues | $ 176,639 | $ 523,231 |
Composition of Certain Balanc_3
Composition of Certain Balance Sheet Captions - Composition of Certain Balance Sheet Captions (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Accounts receivable, net: | ||
Accounts receivable, Billed | $ 209,587 | $ 184,536 |
Accounts receivable, Unbilled | 87,085 | 85,156 |
Allowance for doubtful accounts | (1,347) | (2,027) |
Accounts receivable, net | 295,325 | 267,665 |
Inventories: | ||
Raw materials | 78,850 | 62,252 |
Work in process | 52,240 | 47,465 |
Finished goods | 99,032 | 86,590 |
Inventories | 230,122 | 196,307 |
Prepaid expenses and other current assets: | ||
Prepaid expenses | 81,155 | 68,516 |
Insurance receivable | 12,317 | |
Other | 22,372 | 8,619 |
Prepaid expenses and other current assets | 115,844 | 77,135 |
Other acquired intangible assets, net: | ||
Other acquired intangible assets, gross | 217,920 | 219,137 |
Less: accumulated amortization | (193,160) | (187,275) |
Other acquired intangible assets, net | 24,760 | 31,862 |
Other assets: | ||
Investment in unconsolidated affiliate | 162,617 | 163,835 |
Deferred income taxes | 251,992 | 222,274 |
Capitalized software costs, net | 244,924 | 246,792 |
Patents, orbital slots and other licenses, net | 16,700 | 16,100 |
Other | 68,618 | 37,133 |
Other assets | 744,851 | 686,134 |
Accrued liabilities: | ||
Collections in excess of revenues and deferred revenues | 127,286 | 121,439 |
Accrued employee compensation | 55,418 | 46,106 |
Accrued vacation | 39,971 | 39,022 |
Warranty reserve, current portion | 5,311 | 5,357 |
Other | 64,274 | 51,752 |
Accrued liabilities | 292,260 | 263,676 |
Other liabilities: | ||
Deferred revenues, long-term portion | 81,877 | 77,831 |
Deferred rent, long-term portion | 16,525 | 13,769 |
Warranty reserve, long-term portion | 1,696 | 1,557 |
Satellite performance incentive obligations, long-term portion | 25,292 | 18,181 |
Other | 6,580 | 9,902 |
Other liabilities | 131,970 | 121,240 |
Technology [Member] | ||
Other acquired intangible assets, net: | ||
Other acquired intangible assets, gross | 90,046 | 90,652 |
Contracts and Customer Relationships [Member] | ||
Other acquired intangible assets, net: | ||
Other acquired intangible assets, gross | 103,321 | 103,808 |
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 | 10,013 | 10,137 |
Satellites, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 1,620,760 | 1,613,935 |
Less: accumulated depreciation and amortization | (432,160) | (373,948) |
Property and equipment, net | 1,188,600 | 1,239,987 |
Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 1,671,962 | 1,442,398 |
Less: accumulated depreciation and amortization | (806,619) | (719,910) |
Property and equipment, net | 865,343 | 722,488 |
Satellites [Member] | Satellites, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 978,114 | 1,152,503 |
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 | 543,556 | 362,342 |
Construction in Progress [Member] | Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 167,897 | 108,192 |
Equipment and Software [Member] | Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 970,351 | 864,140 |
CPE Leased Equipment [Member] | Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 354,430 | 298,746 |
Less: accumulated depreciation and amortization | (137,600) | (129,000) |
Furniture and Fixtures [Member] | Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 46,049 | 35,234 |
Leasehold Improvements [Member] | Property and Equipment, Net [Member] | ||
Property and equipment, net: | ||
Property and equipment | 122,021 | 111,841 |
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 | $ 2,291 | $ 15,322 |
Composition of Certain Balanc_4
Composition of Certain Balance Sheet Captions - Composition of Certain Balance Sheet Captions (Parenthetical) (Detail) | 9 Months Ended |
Dec. 31, 2018 | |
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 |
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 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 9 Months Ended | ||
Dec. 31, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | |
Satellite Performance Incentives Obligation [Member] | ViaSat-1 and ViaSat-2 Satellites [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Expiration year of in-orbit satellite performance incentive obligation | 2,028 | ||
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 | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets measured at fair value on a recurring basis | 0 | ||
Liabilities measured at fair value on a recurring basis | $ 0 | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Satellite Performance Incentives Obligation [Member] | ViaSat-1 and ViaSat-2 Satellites [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Satellite performance incentives obligation | 33,400,000 | 21,000,000 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | 2025 Notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of long term debt | 644,000,000 | 674,000,000 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Ex-Im Credit Facility [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of long term debt | $ 144,700,000 | $ 347,400,000 |
Shares Used In Computing Dilu_2
Shares Used In Computing Diluted Net Loss Per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares | 1,276,242 | 1,355,232 | 1,297,427 | 1,376,667 |
Restricted Stock Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares | 1,101,149 | 1,208,047 | 707,353 | 811,747 |
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 | 289,006 | 183,537 | 249,077 | 163,440 |
Total Shareholder Return Performance Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares | 630,102 | 270,256 | 498,062 | 90,413 |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of acquired intangible assets | $ 2,487 | $ 3,177 | $ 7,375 | $ 9,757 |
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 Intangi_4
Goodwill and Acquired Intangible Assets - Current and Expected Amortization Expense for Acquired Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||||
For the nine months ended December 31, 2018 | $ 2,487 | $ 3,177 | $ 7,375 | $ 9,757 | |
Expected for the remainder of fiscal year 2019 | 2,209 | 2,209 | |||
Expected for fiscal year 2020 | 7,524 | 7,524 | |||
Expected for fiscal year 2021 | 5,133 | 5,133 | |||
Expected for fiscal year 2022 | 3,310 | 3,310 | |||
Expected for fiscal year 2023 | 3,005 | 3,005 | |||
Thereafter | 3,579 | 3,579 | |||
Other acquired intangible assets, net | $ 24,760 | $ 24,760 | $ 31,862 |
Senior Notes and Other Long-T_3
Senior Notes and Other Long-Term Debt - Components of Long-Term Debt (Detail) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Debt Instrument [Line Items] | ||
Total debt | $ 1,177,286,000 | $ 1,062,401,000 |
Unamortized discount and debt issuance costs | (18,696,000) | (38,696,000) |
Less: current portion of long-term debt | 21,755,000 | 45,300,000 |
Total long-term debt | 1,136,835,000 | 978,405,000 |
2025 Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 700,000,000 | 700,000,000 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 325,000,000 | |
Ex-Im Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 152,286,000 | $ 362,401,000 |
Senior Notes and Other Long-T_4
Senior Notes and Other Long-Term Debt - Additional Information (Detail) | Jan. 18, 2019 | Sep. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2018USD ($)Installment | Dec. 31, 2018USD ($)Installment | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | ||||||
Proceeds from insurance claims on ViaSat-2 satellite | $ 172,206,000 | |||||
Loss on extinguishment of debt | $ (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. | |||||
Weighted average effective interest rate | 5.18% | 5.18% | ||||
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. | |||||
Principal amount of outstanding borrowings under the Credit Facility | $ 325,000,000 | $ 325,000,000 | ||||
Borrowing availability under the Credit Facility | 455,200,000 | 455,200,000 | ||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maturity date of the Credit Facility | Jan. 31, 2024 | |||||
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. | |||||
Principal amount of outstanding borrowings under the Credit Facility | 152,300,000 | $ 152,300,000 | ||||
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 | 4.52% | 4.52% | ||||
Ex-Im credit facility repayment commenced date | Apr. 15, 2018 | |||||
Proceeds from insurance claims on ViaSat-2 satellite | $ 172,200,000 | |||||
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 | ||||
The exposure fees paid under Ex-Im Credit Facility borrowings | 6,000,000 | |||||
2025 Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on the outstanding borrowings | 5.625% | 5.625% | ||||
Principal amount of senior notes issued | $ 700,000,000 | $ 700,000,000 | 700,000,000 | $ 700,000,000 | ||
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 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. | |||||
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 | In whole or in part, at any time during the 12 months beginning on September 15, 2020 at a redemption price of 102.813% | |||||
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, 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 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). | |||||
2020 Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on the outstanding borrowings | 6.875% | 6.875% | ||||
Principal amount of senior notes issued | $ 575,000,000 | $ 575,000,000 | ||||
Loss on extinguishment of debt | (10,200,000) | (10,217,000) | ||||
Cash payment on extinguishment of debt | 10,600,000 | $ 10,602,000 | ||||
Non-cash gain (including unamortized premium, net of unamortized debt issuance costs) | 400,000 | |||||
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 | 276,800,000 | ||||
2020 Notes [Member] | Tender Offer [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amount deposited to redeem debt | 309,300,000 | |||||
Aggregate principal amount | $ 298,200,000 | $ 298,200,000 | ||||
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 | $ 19,800,000 | $ 19,800,000 |
Product Warranty - Additional I
Product Warranty - Additional Information (Detail) | 9 Months Ended |
Dec. 31, 2018 | |
Product Warranties Disclosures [Abstract] | |
Maximum warranty periods provided on limited warranty | 5 years |
Product Warranty - Change in th
Product Warranty - Change in the Company's Warranty Accrual (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance, beginning of period | $ 6,914 | $ 11,058 |
Change in liability for warranties issued in period | 2,982 | 218 |
Settlements made (in cash or in kind) during the period | (2,889) | (3,931) |
Balance, end of period | $ 7,007 | $ 7,345 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | ||
Jul. 31, 2016 | Dec. 31, 2018 | Mar. 31, 2018 | |
Unfavorable Regulatory Action [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
U.S. government contract-related reserves | $ 4.9 | $ 1.6 | |
ViaSat-3 Class Satellites [Member] | Capital Addition [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Commitment amount | $ 390.1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Expense (benefit) from income taxes | $ 3,230 | $ 2,172 | $ (35,679) | $ (18,472) |
Effective income tax rate | (36.00%) | (9.00%) | 32.00% | 27.00% |
U.S. statutory federal income tax rate, percent | 21.00% | 35.00% | ||
Increase (decrease) in gross unrecognized tax benefits | $ 5,100 |
Equity Method Investments and_3
Equity Method Investments and Related-Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||||
Foreign currency translation adjustments, net of tax | $ (1,279) | $ 3,619 | $ (8,180) | $ 13,465 | |
Income from equity method investments | 1,351 | 1,365 | 2,730 | 1,593 | |
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 | 3,200 | $ (3,800) | 10,900 | ||
Maximum useful life of intangible assets basis difference, years | 11 years | ||||
Weighted average useful life of intangible assets basis difference, years | 10 years | ||||
Maximum useful life of tangible assets basis difference, years | 11 years | ||||
Weighted average useful life of tangible assets basis difference, years | 11 years | ||||
Income from equity method investments | 1,400 | $ 1,400 | $ 2,700 | $ 1,600 | |
Retained earnings of undistributed cumulative earnings in equity interests, net of tax | $ 5,700 | $ 5,700 |
Equity Method Investments and_4
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 | Dec. 31, 2018 | Mar. 31, 2018 |
Schedule of Equity Method Investments [Line Items] | ||
Investment in unconsolidated affiliate | $ 162,617 | $ 163,835 |
Euro Infrastructure Co [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment in unconsolidated affiliate | 162,617 | 163,835 |
Less: proportionate share of net assets of Euro Infrastructure Co. | 146,250 | 147,115 |
Excess carrying value of investment over proportionate share of net assets | 16,367 | 16,720 |
Euro Infrastructure Co [Member] | Goodwill [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Excess carrying value of investment over proportionate share of net assets | 22,791 | 23,523 |
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 | 11,225 | 12,839 |
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 | (19,255) | (21,342) |
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 | $ 1,606 | $ 1,700 |
Equity Method Investments and_5
Equity Method Investments and Related-Party Transactions - Schedule of Related Party Transactions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | |
Euro Infrastructure Co [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue | $ 1,620 | $ 1,945 | $ 4,798 | $ 7,574 | |
Expense | 5,664 | 1,725 | 10,254 | 5,313 | |
Cash received | 4,048 | 2,191 | 10,102 | 6,540 | |
Cash paid | 6,585 | $ 1,407 | 10,677 | $ 5,416 | |
Accounts receivable | $ 3,307 | ||||
Collections in excess of revenues and deferred revenues | 7,438 | 7,438 | 3,246 | ||
Ducommun Inc. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Cash paid | 8,209 | 15,188 | |||
Accounts payable | $ 4,287 | $ 4,287 | $ 2,073 |
Segment Information - Segment R
Segment Information - Segment Revenues and Operating Profits (Losses) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | ||||
Total revenues | $ 554,694 | $ 381,837 | $ 1,511,037 | $ 1,154,955 |
Operating profits (losses): | ||||
Income (loss) from operations | 6,007 | (25,326) | (70,043) | (59,136) |
Amortization of acquired intangible assets | (2,487) | (3,177) | (7,375) | (9,757) |
Product [Member] | ||||
Revenues: | ||||
Total revenues | 301,865 | 175,957 | 800,429 | 523,858 |
Service [Member] | ||||
Revenues: | ||||
Total revenues | 252,829 | 205,880 | 710,608 | 631,097 |
Operating Segments [Member] | ||||
Operating profits (losses): | ||||
Income (loss) from operations | 8,494 | (22,149) | (62,668) | (49,379) |
Operating Segments [Member] | Satellite Services [Member] | ||||
Revenues: | ||||
Total revenues | 177,651 | 144,543 | 494,174 | 444,335 |
Operating profits (losses): | ||||
Income (loss) from operations | (10,196) | 1,681 | (64,971) | 33,140 |
Amortization of acquired intangible assets | (1,183) | (2,031) | (3,776) | (6,297) |
Operating Segments [Member] | Satellite Services [Member] | Product [Member] | ||||
Revenues: | ||||
Total revenues | 233 | 664 | ||
Operating Segments [Member] | Satellite Services [Member] | Service [Member] | ||||
Revenues: | ||||
Total revenues | 177,651 | 144,310 | 494,174 | 443,671 |
Operating Segments [Member] | Commercial Networks [Member] | ||||
Revenues: | ||||
Total revenues | 126,977 | 55,536 | 336,563 | 157,053 |
Operating profits (losses): | ||||
Income (loss) from operations | (31,219) | (53,505) | (117,424) | (179,007) |
Amortization of acquired intangible assets | (386) | (385) | (1,157) | (1,178) |
Operating Segments [Member] | Commercial Networks [Member] | Product [Member] | ||||
Revenues: | ||||
Total revenues | 115,409 | 47,073 | 304,732 | 130,903 |
Operating Segments [Member] | Commercial Networks [Member] | Service [Member] | ||||
Revenues: | ||||
Total revenues | 11,568 | 8,463 | 31,831 | 26,150 |
Operating Segments [Member] | Government Systems [Member] | ||||
Revenues: | ||||
Total revenues | 250,066 | 181,758 | 680,300 | 553,567 |
Operating profits (losses): | ||||
Income (loss) from operations | 49,909 | 29,675 | 119,727 | 96,488 |
Amortization of acquired intangible assets | (918) | (761) | (2,442) | (2,282) |
Operating Segments [Member] | Government Systems [Member] | Product [Member] | ||||
Revenues: | ||||
Total revenues | 186,456 | 128,651 | 495,697 | 392,291 |
Operating Segments [Member] | Government Systems [Member] | Service [Member] | ||||
Revenues: | ||||
Total revenues | 63,610 | 53,107 | 184,603 | 161,276 |
Material Reconciling Items [Member] | ||||
Operating profits (losses): | ||||
Amortization of acquired intangible assets | $ (2,487) | $ (3,177) | $ (7,375) | $ (9,757) |
Segment Information - Segment A
Segment Information - Segment Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 3,629,716 | $ 3,414,109 |
Operating Segments [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 670,924 | 615,728 |
Operating Segments [Member] | Satellite Services [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 77,548 | 66,830 |
Operating Segments [Member] | Commercial Networks [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 230,057 | 211,447 |
Operating Segments [Member] | Government Systems [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 363,319 | 337,451 |
Corporate, Non-Segment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 2,958,792 | $ 2,798,381 |
Segment Information - Other Acq
Segment Information - Other Acquired Intangible Assets, Net and Goodwill Included in Segment Assets and Amortization of Acquired Intangible Assets by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Other acquired intangible assets, net | $ 24,760 | $ 24,760 | $ 31,862 | ||
Goodwill | 121,506 | 121,506 | 121,085 | ||
Amortization of acquired intangible assets | 2,487 | $ 3,177 | 7,375 | $ 9,757 | |
Operating Segments [Member] | Satellite Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Other acquired intangible assets, net | 11,751 | 11,751 | 16,580 | ||
Goodwill | 13,694 | 13,694 | 13,991 | ||
Amortization of acquired intangible assets | 1,183 | 2,031 | 3,776 | 6,297 | |
Operating Segments [Member] | Commercial Networks [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Other acquired intangible assets, net | 2,183 | 2,183 | 3,340 | ||
Goodwill | 43,955 | 43,955 | 44,011 | ||
Amortization of acquired intangible assets | 386 | 385 | 1,157 | 1,178 | |
Operating Segments [Member] | Government Systems [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Other acquired intangible assets, net | 10,826 | 10,826 | 11,942 | ||
Goodwill | 63,857 | 63,857 | $ 63,083 | ||
Amortization of acquired intangible assets | $ 918 | $ 761 | $ 2,442 | $ 2,282 |