vsat-10q_20181231.htm
false 2019 Q3 VSAT VIASAT INC 0000797721 --03-31 Large Accelerated Filer false false true true P2Y 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. P10Y P2Y P4Y P2Y P2Y In whole or in part, at any time during the 12 months beginning on September 15, 2020 at a redemption price of 102.813% 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. During the 12 months beginning on September 15, 2021 at a redemption price of 101.406% 2024-01-31 0000797721 2018-04-01 2018-12-31 xbrli:shares 0000797721 2019-01-25 iso4217:USD 0000797721 2018-12-31 0000797721 2018-03-31 0000797721 vsat:PropertyPlantAndEquipmentSatellitesMember 2018-12-31 0000797721 vsat:PropertyPlantAndEquipmentSatellitesMember 2018-03-31 0000797721 vsat:PropertyPlantAndEquipmentExcludingSatellitesMember 2018-12-31 0000797721 vsat:PropertyPlantAndEquipmentExcludingSatellitesMember 2018-03-31 0000797721 us-gaap:ProductMember 2018-10-01 2018-12-31 0000797721 us-gaap:ProductMember 2017-10-01 2017-12-31 0000797721 us-gaap:ProductMember 2018-04-01 2018-12-31 0000797721 us-gaap:ProductMember 2017-04-01 2017-12-31 0000797721 us-gaap:ServiceMember 2018-10-01 2018-12-31 0000797721 us-gaap:ServiceMember 2017-10-01 2017-12-31 0000797721 us-gaap:ServiceMember 2018-04-01 2018-12-31 0000797721 us-gaap:ServiceMember 2017-04-01 2017-12-31 0000797721 2018-10-01 2018-12-31 0000797721 2017-10-01 2017-12-31 0000797721 2017-04-01 2017-12-31 iso4217:USD xbrli:shares 0000797721 vsat:TwoThousandAndTwentyNotesMember 2017-04-01 2017-12-31 0000797721 us-gaap:LineOfCreditMember 2018-04-01 2018-12-31 0000797721 vsat:ExportImportCreditFacilityMember 2018-04-01 2018-12-31 0000797721 vsat:ExportImportCreditFacilityMember 2017-04-01 2017-12-31 0000797721 vsat:TwoThousandAndTwentyFiveNotesMember 2017-04-01 2017-12-31 0000797721 2017-03-31 0000797721 2017-12-31 0000797721 us-gaap:CommonStockMember 2018-03-31 0000797721 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0000797721 us-gaap:RetainedEarningsMember 2018-03-31 0000797721 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0000797721 us-gaap:NoncontrollingInterestMember 2018-03-31 0000797721 us-gaap:CommonStockMember 2018-04-01 2018-12-31 0000797721 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-12-31 0000797721 us-gaap:RetainedEarningsMember us-gaap:AccountingStandardsUpdate201409Member 2018-12-31 0000797721 us-gaap:AccountingStandardsUpdate201409Member 2018-12-31 0000797721 us-gaap:NoncontrollingInterestMember 2018-04-01 2018-12-31 0000797721 us-gaap:RetainedEarningsMember 2018-04-01 2018-12-31 0000797721 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-12-31 0000797721 us-gaap:CommonStockMember 2018-12-31 0000797721 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000797721 us-gaap:RetainedEarningsMember 2018-12-31 0000797721 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000797721 us-gaap:NoncontrollingInterestMember 2018-12-31 0000797721 us-gaap:AccountingStandardsUpdate201409Member 2018-04-01 2018-12-31 xbrli:pure 0000797721 vsat:EuroRetailCoMember 2018-10-01 2018-12-31 0000797721 us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member us-gaap:AccountingStandardsUpdate201409Member 2018-04-01 0000797721 us-gaap:AccountingStandardsUpdate201409Member 2018-04-01 0000797721 us-gaap:UnfavorableRegulatoryActionMember 2018-12-31 0000797721 us-gaap:UnfavorableRegulatoryActionMember 2018-03-31 0000797721 2019-01-01 2018-04-01 2018-12-31 vsat:Segment 0000797721 us-gaap:ProductMember vsat:CommercialNetworksMember us-gaap:OperatingSegmentsMember 2018-10-01 2018-12-31 0000797721 us-gaap:ProductMember vsat:GovernmentSystemsMember us-gaap:OperatingSegmentsMember 2018-10-01 2018-12-31 0000797721 us-gaap:ServiceMember vsat:SatelliteServicesMember us-gaap:OperatingSegmentsMember 2018-10-01 2018-12-31 0000797721 us-gaap:ServiceMember vsat:CommercialNetworksMember us-gaap:OperatingSegmentsMember 2018-10-01 2018-12-31 0000797721 us-gaap:ServiceMember vsat:GovernmentSystemsMember us-gaap:OperatingSegmentsMember 2018-10-01 2018-12-31 0000797721 vsat:SatelliteServicesMember us-gaap:OperatingSegmentsMember 2018-10-01 2018-12-31 0000797721 vsat:CommercialNetworksMember us-gaap:OperatingSegmentsMember 2018-10-01 2018-12-31 0000797721 vsat:GovernmentSystemsMember us-gaap:OperatingSegmentsMember 2018-10-01 2018-12-31 0000797721 us-gaap:ProductMember vsat:CommercialNetworksMember us-gaap:OperatingSegmentsMember 2018-04-01 2018-12-31 0000797721 us-gaap:ProductMember vsat:GovernmentSystemsMember us-gaap:OperatingSegmentsMember 2018-04-01 2018-12-31 0000797721 us-gaap:ServiceMember vsat:SatelliteServicesMember us-gaap:OperatingSegmentsMember 2018-04-01 2018-12-31 0000797721 us-gaap:ServiceMember vsat:CommercialNetworksMember us-gaap:OperatingSegmentsMember 2018-04-01 2018-12-31 0000797721 us-gaap:ServiceMember vsat:GovernmentSystemsMember us-gaap:OperatingSegmentsMember 2018-04-01 2018-12-31 0000797721 vsat:SatelliteServicesMember us-gaap:OperatingSegmentsMember 2018-04-01 2018-12-31 0000797721 vsat:CommercialNetworksMember us-gaap:OperatingSegmentsMember 2018-04-01 2018-12-31 0000797721 vsat:GovernmentSystemsMember us-gaap:OperatingSegmentsMember 2018-04-01 2018-12-31 0000797721 vsat:USGovernmentAsAnIndividualCustomerMember 2018-10-01 2018-12-31 0000797721 vsat:USGovernmentAsAnIndividualCustomerMember 2018-04-01 2018-12-31 0000797721 vsat:CommercialCustomersMember 2018-10-01 2018-12-31 0000797721 vsat:CommercialCustomersMember 2018-04-01 2018-12-31 0000797721 vsat:CommercialNetworksAndGovernmentSystemsMember us-gaap:OperatingSegmentsMember us-gaap:FixedPriceContractMember 2018-10-01 2018-12-31 0000797721 vsat:CommercialNetworksAndGovernmentSystemsMember us-gaap:OperatingSegmentsMember us-gaap:FixedPriceContractMember 2018-04-01 2018-12-31 0000797721 vsat:FundedResearchAndDevelopmentContractsMember 2018-10-01 2018-12-31 0000797721 vsat:FundedResearchAndDevelopmentContractsMember 2018-04-01 2018-12-31 0000797721 country:US 2018-10-01 2018-12-31 0000797721 country:US 2018-04-01 2018-12-31 0000797721 us-gaap:NonUsMember 2018-10-01 2018-12-31 0000797721 us-gaap:NonUsMember 2018-04-01 2018-12-31 0000797721 2018-04-01 0000797721 vsat:DeferredCustomerContractAcquisitionCostMember 2018-12-31 0000797721 vsat:DeferredCustomerContractFulfillmentCostMember 2018-12-31 0000797721 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember 2018-12-31 0000797721 us-gaap:OtherNoncurrentAssetsMember 2018-12-31 0000797721 us-gaap:ProductMember us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member us-gaap:AccountingStandardsUpdate201409Member 2018-10-01 2018-12-31 0000797721 us-gaap:ProductMember us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member us-gaap:AccountingStandardsUpdate201409Member 2018-10-01 2018-12-31 0000797721 us-gaap:ServiceMember us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member us-gaap:AccountingStandardsUpdate201409Member 2018-10-01 2018-12-31 0000797721 us-gaap:ServiceMember us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member us-gaap:AccountingStandardsUpdate201409Member 2018-10-01 2018-12-31 0000797721 us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member us-gaap:AccountingStandardsUpdate201409Member 2018-10-01 2018-12-31 0000797721 us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member us-gaap:AccountingStandardsUpdate201409Member 2018-10-01 2018-12-31 0000797721 us-gaap:ProductMember us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member us-gaap:AccountingStandardsUpdate201409Member 2018-04-01 2018-12-31 0000797721 us-gaap:ProductMember us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member us-gaap:AccountingStandardsUpdate201409Member 2018-04-01 2018-12-31 0000797721 us-gaap:ServiceMember us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member us-gaap:AccountingStandardsUpdate201409Member 2018-04-01 2018-12-31 0000797721 us-gaap:ServiceMember us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member us-gaap:AccountingStandardsUpdate201409Member 2018-04-01 2018-12-31 0000797721 us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member us-gaap:AccountingStandardsUpdate201409Member 2018-04-01 2018-12-31 0000797721 us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member us-gaap:AccountingStandardsUpdate201409Member 2018-04-01 2018-12-31 0000797721 us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member us-gaap:AccountingStandardsUpdate201409Member 2018-12-31 0000797721 us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member us-gaap:AccountingStandardsUpdate201409Member 2018-12-31 0000797721 srt:MinimumMember 2018-04-01 2018-12-31 0000797721 srt:MaximumMember 2018-04-01 2018-12-31 0000797721 us-gaap:EquipmentLeasedToOtherPartyMember vsat:PropertyAndEquipmentNetMember 2018-12-31 0000797721 us-gaap:EquipmentLeasedToOtherPartyMember vsat:PropertyAndEquipmentNetMember 2018-03-31 0000797721 vsat:PropertyPlantAndEquipmentSatellitesMember 2018-07-01 2018-09-30 0000797721 vsat:SatelliteViasatTwoMember 2018-12-31 0000797721 vsat:SatelliteViasatTwoMember 2018-07-01 2018-12-31 0000797721 vsat:SatelliteViasatTwoMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-10-01 2018-12-31 0000797721 srt:MaximumMember us-gaap:ComputerSoftwareIntangibleAssetMember 2018-04-01 2018-12-31 0000797721 us-gaap:IndemnificationGuaranteeMember 2018-12-31 0000797721 us-gaap:IndemnificationGuaranteeMember 2018-03-31 0000797721 us-gaap:TreasuryStockMember 2018-12-31 0000797721 us-gaap:TreasuryStockMember 2018-03-31 0000797721 us-gaap:CommonStockMember 2017-04-01 2017-12-31 0000797721 us-gaap:TreasuryStockMember 2018-04-01 2018-12-31 0000797721 us-gaap:TreasuryStockMember 2017-04-01 2017-12-31 0000797721 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember us-gaap:ForeignExchangeForwardMember 2018-12-31 0000797721 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember us-gaap:ForeignExchangeForwardMember 2018-04-01 2018-12-31 0000797721 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember us-gaap:ForeignExchangeForwardMember 2018-10-01 2018-12-31 0000797721 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember us-gaap:ForeignExchangeForwardMember 2017-04-01 2017-12-31 0000797721 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:CashFlowHedgingMember us-gaap:ForeignExchangeForwardMember 2017-10-01 2017-12-31 0000797721 us-gaap:AccountingStandardsUpdate201601Member 2018-04-01 2018-12-31 0000797721 us-gaap:AccountingStandardsUpdate201602Member 2018-04-01 2018-12-31 0000797721 vsat:AccountingStandardsUpdate201613Member 2018-04-01 2018-12-31 0000797721 us-gaap:AccountingStandardsUpdate201615Member 2018-04-01 2018-12-31 0000797721 us-gaap:AccountingStandardsUpdate201616Member 2018-04-01 2018-12-31 0000797721 us-gaap:AccountingStandardsUpdate201701Member 2018-04-01 2018-12-31 0000797721 us-gaap:AccountingStandardsUpdate201704Member 2018-04-01 2018-12-31 0000797721 us-gaap:AccountingStandardsUpdate201705Member 2018-04-01 2018-12-31 0000797721 us-gaap:AccountingStandardsUpdate201708Member 2018-04-01 2018-12-31 0000797721 us-gaap:AccountingStandardsUpdate201709Member 2018-04-01 2018-12-31 0000797721 us-gaap:AccountingStandardsUpdate201712Member 2018-04-01 2018-12-31 0000797721 vsat:AccountingStandardsUpdate201807Member 2018-04-01 2018-12-31 0000797721 vsat:AccountingStandardsUpdate201809Member 2018-04-01 2018-12-31 0000797721 vsat:AccountingStandardsUpdate201813Member 2018-04-01 2018-12-31 0000797721 vsat:AccountingStandardsUpdate201815Member 2018-04-01 2018-12-31 0000797721 vsat:SatellitesMember vsat:SatellitesNetMember 2018-12-31 0000797721 vsat:SatellitesMember vsat:SatellitesNetMember 2018-03-31 0000797721 vsat:CapitalLeaseSatelliteCapacityAnikFTwoMember vsat:SatellitesNetMember 2018-12-31 0000797721 vsat:CapitalLeaseSatelliteCapacityAnikFTwoMember vsat:SatellitesNetMember 2018-03-31 0000797721 us-gaap:ConstructionInProgressMember vsat:SatellitesNetMember 2018-12-31 0000797721 us-gaap:ConstructionInProgressMember vsat:SatellitesNetMember 2018-03-31 0000797721 vsat:SatellitesNetMember 2018-12-31 0000797721 vsat:SatellitesNetMember 2018-03-31 0000797721 vsat:ComputerEquipmentAndSoftwareMember vsat:PropertyAndEquipmentNetMember 2018-12-31 0000797721 vsat:ComputerEquipmentAndSoftwareMember vsat:PropertyAndEquipmentNetMember 2018-03-31 0000797721 us-gaap:FurnitureAndFixturesMember vsat:PropertyAndEquipmentNetMember 2018-12-31 0000797721 us-gaap:FurnitureAndFixturesMember vsat:PropertyAndEquipmentNetMember 2018-03-31 0000797721 us-gaap:LeaseholdImprovementsMember vsat:PropertyAndEquipmentNetMember 2018-12-31 0000797721 us-gaap:LeaseholdImprovementsMember vsat:PropertyAndEquipmentNetMember 2018-03-31 0000797721 us-gaap:BuildingMember vsat:PropertyAndEquipmentNetMember 2018-12-31 0000797721 us-gaap:BuildingMember vsat:PropertyAndEquipmentNetMember 2018-03-31 0000797721 us-gaap:LandMember vsat:PropertyAndEquipmentNetMember 2018-12-31 0000797721 us-gaap:LandMember vsat:PropertyAndEquipmentNetMember 2018-03-31 0000797721 us-gaap:ConstructionInProgressMember vsat:PropertyAndEquipmentNetMember 2018-12-31 0000797721 us-gaap:ConstructionInProgressMember vsat:PropertyAndEquipmentNetMember 2018-03-31 0000797721 vsat:PropertyAndEquipmentNetMember 2018-12-31 0000797721 vsat:PropertyAndEquipmentNetMember 2018-03-31 0000797721 us-gaap:TechnologyBasedIntangibleAssetsMember 2018-12-31 0000797721 us-gaap:TechnologyBasedIntangibleAssetsMember 2018-03-31 0000797721 vsat:ContractsAndCustomerRelationshipsMember 2018-12-31 0000797721 vsat:ContractsAndCustomerRelationshipsMember 2018-03-31 0000797721 us-gaap:UseRightsMember 2018-12-31 0000797721 us-gaap:UseRightsMember 2018-03-31 0000797721 us-gaap:TradeNamesMember 2018-12-31 0000797721 us-gaap:TradeNamesMember 2018-03-31 0000797721 us-gaap:OtherIntangibleAssetsMember 2018-12-31 0000797721 us-gaap:OtherIntangibleAssetsMember 2018-03-31 0000797721 vsat:SatellitesMember srt:MinimumMember 2018-04-01 2018-12-31 0000797721 vsat:SatellitesMember srt:MaximumMember 2018-04-01 2018-12-31 0000797721 vsat:CapitalLeaseSatelliteCapacityAnikFTwoMember 2018-04-01 2018-12-31 0000797721 vsat:ComputerEquipmentAndSoftwareMember srt:MinimumMember 2018-04-01 2018-12-31 0000797721 vsat:ComputerEquipmentAndSoftwareMember srt:MaximumMember 2018-04-01 2018-12-31 0000797721 us-gaap:EquipmentLeasedToOtherPartyMember srt:MinimumMember 2018-04-01 2018-12-31 0000797721 us-gaap:EquipmentLeasedToOtherPartyMember srt:MaximumMember 2018-04-01 2018-12-31 0000797721 us-gaap:FurnitureAndFixturesMember 2018-04-01 2018-12-31 0000797721 us-gaap:LeaseholdImprovementsMember srt:MinimumMember 2018-04-01 2018-12-31 0000797721 us-gaap:LeaseholdImprovementsMember srt:MaximumMember 2018-04-01 2018-12-31 0000797721 us-gaap:BuildingMember 2018-04-01 2018-12-31 0000797721 us-gaap:TechnologyBasedIntangibleAssetsMember 2018-04-01 2018-12-31 0000797721 vsat:ContractsAndCustomerRelationshipsMember 2018-04-01 2018-12-31 0000797721 us-gaap:UseRightsMember 2018-04-01 2018-12-31 0000797721 us-gaap:TradeNamesMember 2018-04-01 2018-12-31 0000797721 us-gaap:OtherIntangibleAssetsMember 2018-04-01 2018-12-31 0000797721 us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000797721 us-gaap:FairValueMeasurementsRecurringMember 2018-03-31 0000797721 vsat:TwoThousandAndTwentyFiveNotesMember 2018-12-31 0000797721 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member vsat:TwoThousandAndTwentyFiveNotesMember 2018-12-31 0000797721 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member vsat:TwoThousandAndTwentyFiveNotesMember 2018-03-31 0000797721 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member vsat:ExportImportCreditFacilityMember 2018-12-31 0000797721 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member vsat:ExportImportCreditFacilityMember 2018-03-31 0000797721 vsat:SatellitePerformanceIncentivesObligationMember vsat:SatellitesViasatOneAndViasatTwoMember 2018-04-01 2018-12-31 0000797721 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member vsat:SatellitePerformanceIncentivesObligationMember vsat:SatellitesViasatOneAndViasatTwoMember 2018-12-31 0000797721 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member vsat:SatellitePerformanceIncentivesObligationMember vsat:SatellitesViasatOneAndViasatTwoMember 2018-03-31 0000797721 us-gaap:EmployeeStockOptionMember 2018-10-01 2018-12-31 0000797721 us-gaap:EmployeeStockOptionMember 2018-04-01 2018-12-31 0000797721 us-gaap:EmployeeStockOptionMember 2017-10-01 2017-12-31 0000797721 us-gaap:EmployeeStockOptionMember 2017-04-01 2017-12-31 0000797721 us-gaap:RestrictedStockUnitsRSUMember 2018-10-01 2018-12-31 0000797721 us-gaap:RestrictedStockUnitsRSUMember 2018-04-01 2018-12-31 0000797721 us-gaap:RestrictedStockUnitsRSUMember 2017-10-01 2017-12-31 0000797721 us-gaap:RestrictedStockUnitsRSUMember 2017-04-01 2017-12-31 0000797721 vsat:ViasatFourZeroOneKProfitSharePlanAndEmployeeStockPurchasePlanMember 2018-10-01 2018-12-31 0000797721 vsat:ViasatFourZeroOneKProfitSharePlanAndEmployeeStockPurchasePlanMember 2018-04-01 2018-12-31 0000797721 vsat:ViasatFourZeroOneKProfitSharePlanAndEmployeeStockPurchasePlanMember 2017-10-01 2017-12-31 0000797721 vsat:ViasatFourZeroOneKProfitSharePlanAndEmployeeStockPurchasePlanMember 2017-04-01 2017-12-31 0000797721 vsat:TotalShareholderReturnPerformanceStockOptionMember 2018-10-01 2018-12-31 0000797721 vsat:TotalShareholderReturnPerformanceStockOptionMember 2018-04-01 2018-12-31 0000797721 vsat:TotalShareholderReturnPerformanceStockOptionMember 2017-10-01 2017-12-31 0000797721 vsat:TotalShareholderReturnPerformanceStockOptionMember 2017-04-01 2017-12-31 0000797721 vsat:TwoThousandAndTwentyFiveNotesMember 2018-03-31 0000797721 us-gaap:LineOfCreditMember 2018-12-31 0000797721 vsat:ExportImportCreditFacilityMember 2018-12-31 0000797721 vsat:ExportImportCreditFacilityMember 2018-03-31 0000797721 us-gaap:LetterOfCreditMember 2018-12-31 0000797721 us-gaap:LineOfCreditMember us-gaap:SubsequentEventMember 2019-01-18 2019-01-18 vsat:Installment 0000797721 vsat:ExportImportCreditFacilityMember 2018-07-01 2018-12-31 0000797721 vsat:TwoThousandAndTwentyFiveNotesMember 2017-09-30 0000797721 vsat:DebtInstrumentRedemptionOtherPeriodOneMember vsat:TwoThousandAndTwentyFiveNotesMember 2018-04-01 2018-12-31 0000797721 us-gaap:DebtInstrumentRedemptionPeriodOneMember vsat:TwoThousandAndTwentyFiveNotesMember 2018-04-01 2018-12-31 0000797721 us-gaap:DebtInstrumentRedemptionPeriodTwoMember vsat:TwoThousandAndTwentyFiveNotesMember 2018-04-01 2018-12-31 0000797721 us-gaap:DebtInstrumentRedemptionPeriodFourMember vsat:TwoThousandAndTwentyFiveNotesMember 2018-04-01 2018-12-31 0000797721 us-gaap:DebtInstrumentRedemptionPeriodThreeMember vsat:TwoThousandAndTwentyFiveNotesMember 2018-04-01 2018-12-31 0000797721 vsat:TwoThousandAndTwentyFiveNotesMember vsat:ChangeOfControlMember 2018-04-01 2018-12-31 0000797721 vsat:TwoThousandAndTwentyNotesMember 2017-09-30 0000797721 vsat:TwoThousandAndTwentyNotesMember vsat:RedemptionMember 2017-09-01 2017-09-30 0000797721 vsat:TwoThousandAndTwentyNotesMember vsat:TenderOfferMember 2017-09-01 2017-09-30 0000797721 vsat:TwoThousandAndTwentyNotesMember vsat:TenderOfferMember 2017-09-30 0000797721 vsat:TwoThousandAndTwentyNotesMember vsat:RedemptionMember 2017-09-30 0000797721 vsat:TwoThousandAndTwentyNotesMember 2017-07-01 2017-09-30 0000797721 vsat:SatelliteViasatThreeClassSatellitesMember us-gaap:CapitalAdditionsMember 2016-07-01 2016-07-31 0000797721 vsat:EuroInfrastructureCoMember 2017-03-01 2017-03-31 0000797721 vsat:EuroInfrastructureCoMember 2017-03-31 0000797721 vsat:EuroInfrastructureCoMember 2018-04-01 2018-12-31 0000797721 vsat:EuroInfrastructureCoMember 2017-10-01 2017-12-31 0000797721 vsat:EuroInfrastructureCoMember 2017-04-01 2017-12-31 0000797721 vsat:EuroInfrastructureCoMember 2018-12-31 0000797721 vsat:EuroInfrastructureCoMember 2018-03-31 0000797721 vsat:GoodwillBasisDifferenceMember vsat:EuroInfrastructureCoMember 2018-12-31 0000797721 vsat:GoodwillBasisDifferenceMember vsat:EuroInfrastructureCoMember 2018-03-31 0000797721 vsat:IntangibleAssetsBasisDifferenceMember vsat:EuroInfrastructureCoMember 2018-12-31 0000797721 vsat:IntangibleAssetsBasisDifferenceMember vsat:EuroInfrastructureCoMember 2018-03-31 0000797721 vsat:TangibleAssetsBasisDifferenceMember vsat:EuroInfrastructureCoMember 2018-12-31 0000797721 vsat:TangibleAssetsBasisDifferenceMember vsat:EuroInfrastructureCoMember 2018-03-31 0000797721 vsat:DeferredIncomeTaxesBasisDifferenceMember vsat:EuroInfrastructureCoMember 2018-12-31 0000797721 vsat:DeferredIncomeTaxesBasisDifferenceMember vsat:EuroInfrastructureCoMember 2018-03-31 0000797721 vsat:EuroInfrastructureCoMember 2018-10-01 2018-12-31 0000797721 vsat:EuroInfrastructureCoMember 2018-10-01 2018-12-31 0000797721 vsat:EuroInfrastructureCoMember 2017-10-01 2017-12-31 0000797721 vsat:EuroInfrastructureCoMember 2018-04-01 2018-12-31 0000797721 vsat:EuroInfrastructureCoMember 2017-04-01 2017-12-31 0000797721 vsat:DucommunIncorporationMember 2018-10-01 2018-12-31 0000797721 vsat:DucommunIncorporationMember 2018-04-01 2018-12-31 0000797721 vsat:EuroInfrastructureCoMember 2018-03-31 0000797721 vsat:EuroInfrastructureCoMember 2018-12-31 0000797721 vsat:DucommunIncorporationMember 2018-12-31 0000797721 vsat:DucommunIncorporationMember 2018-03-31 0000797721 us-gaap:OperatingSegmentsMember vsat:SatelliteServicesMember us-gaap:ProductMember 2017-10-01 2017-12-31 0000797721 us-gaap:OperatingSegmentsMember vsat:SatelliteServicesMember us-gaap:ProductMember 2017-04-01 2017-12-31 0000797721 us-gaap:OperatingSegmentsMember vsat:SatelliteServicesMember us-gaap:ServiceMember 2017-10-01 2017-12-31 0000797721 us-gaap:OperatingSegmentsMember vsat:SatelliteServicesMember us-gaap:ServiceMember 2017-04-01 2017-12-31 0000797721 us-gaap:OperatingSegmentsMember vsat:SatelliteServicesMember 2017-10-01 2017-12-31 0000797721 us-gaap:OperatingSegmentsMember vsat:SatelliteServicesMember 2017-04-01 2017-12-31 0000797721 us-gaap:OperatingSegmentsMember vsat:CommercialNetworksMember us-gaap:ProductMember 2017-10-01 2017-12-31 0000797721 us-gaap:OperatingSegmentsMember vsat:CommercialNetworksMember us-gaap:ProductMember 2017-04-01 2017-12-31 0000797721 us-gaap:OperatingSegmentsMember vsat:CommercialNetworksMember us-gaap:ServiceMember 2017-10-01 2017-12-31 0000797721 us-gaap:OperatingSegmentsMember vsat:CommercialNetworksMember us-gaap:ServiceMember 2017-04-01 2017-12-31 0000797721 us-gaap:OperatingSegmentsMember vsat:CommercialNetworksMember 2017-10-01 2017-12-31 0000797721 us-gaap:OperatingSegmentsMember vsat:CommercialNetworksMember 2017-04-01 2017-12-31 0000797721 us-gaap:OperatingSegmentsMember vsat:GovernmentSystemsMember us-gaap:ProductMember 2017-10-01 2017-12-31 0000797721 us-gaap:OperatingSegmentsMember vsat:GovernmentSystemsMember us-gaap:ProductMember 2017-04-01 2017-12-31 0000797721 us-gaap:OperatingSegmentsMember vsat:GovernmentSystemsMember us-gaap:ServiceMember 2017-10-01 2017-12-31 0000797721 us-gaap:OperatingSegmentsMember vsat:GovernmentSystemsMember us-gaap:ServiceMember 2017-04-01 2017-12-31 0000797721 us-gaap:OperatingSegmentsMember vsat:GovernmentSystemsMember 2017-10-01 2017-12-31 0000797721 us-gaap:OperatingSegmentsMember vsat:GovernmentSystemsMember 2017-04-01 2017-12-31 0000797721 us-gaap:OperatingSegmentsMember 2018-10-01 2018-12-31 0000797721 us-gaap:OperatingSegmentsMember 2017-10-01 2017-12-31 0000797721 us-gaap:OperatingSegmentsMember 2018-04-01 2018-12-31 0000797721 us-gaap:OperatingSegmentsMember 2017-04-01 2017-12-31 0000797721 us-gaap:MaterialReconcilingItemsMember 2018-10-01 2018-12-31 0000797721 us-gaap:MaterialReconcilingItemsMember 2017-10-01 2017-12-31 0000797721 us-gaap:MaterialReconcilingItemsMember 2018-04-01 2018-12-31 0000797721 us-gaap:MaterialReconcilingItemsMember 2017-04-01 2017-12-31 0000797721 vsat:SatelliteServicesMember us-gaap:OperatingSegmentsMember 2018-12-31 0000797721 vsat:SatelliteServicesMember us-gaap:OperatingSegmentsMember 2018-03-31 0000797721 vsat:CommercialNetworksMember us-gaap:OperatingSegmentsMember 2018-12-31 0000797721 vsat:CommercialNetworksMember us-gaap:OperatingSegmentsMember 2018-03-31 0000797721 vsat:GovernmentSystemsMember us-gaap:OperatingSegmentsMember 2018-12-31 0000797721 vsat:GovernmentSystemsMember us-gaap:OperatingSegmentsMember 2018-03-31 0000797721 us-gaap:OperatingSegmentsMember 2018-12-31 0000797721 us-gaap:OperatingSegmentsMember 2018-03-31 0000797721 us-gaap:CorporateNonSegmentMember 2018-12-31 0000797721 us-gaap:CorporateNonSegmentMember 2018-03-31

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2018.

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             .

Commission File Number (000-21767)

 

VIASAT, INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware

33-0174996

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

6155 El Camino Real

Carlsbad, California 92009

(760) 476-2200

(Address of principal executive offices and telephone number)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

 

 

 

 

 

Non-accelerated filer

 

 

Smaller reporting company

 

 

 

 

 

 

 

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

The number of shares outstanding of the registrant’s common stock, $0.0001 par value, as of January 25, 2019 was 60,481,263.

 

 

 

 


 

VIASAT, INC.

TABLE OF CONTENTS

 

 

 

Page

PART I. FINANCIAL INFORMATION

 

 

Item 1. Financial Statements (Unaudited)

 

3

Condensed Consolidated Balance Sheets

 

3

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

 

4

Condensed Consolidated Statements of Cash Flows

 

5

Condensed Consolidated Statement of Equity

 

6

Notes to the Condensed Consolidated Financial Statements

 

7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

34

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

55

Item 4. Controls and Procedures

 

56

PART II. OTHER INFORMATION

 

 

Item 1. Legal Proceedings

 

56

Item 1A. Risk Factors

 

56

Item 6. Exhibits

 

57

Signatures

 

58

 

2


 

 

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

VIASAT, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

 

 

As of

December 31, 2018

 

 

As of

March 31, 2018

 

 

 

(In thousands)

 

ASSETS

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

Satellites, net

 

 

1,188,600

 

 

 

1,239,987

 

Property and equipment, net

 

 

865,343

 

 

 

722,488

 

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

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

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)

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

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

 

 

See accompanying notes to the condensed consolidated financial statements.

 

3


 

VIASAT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

December 31, 2018

 

 

December 31, 2017

 

 

December 31, 2018

 

 

December 31, 2017

 

 

 

(In thousands, except per share data)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues

 

$

301,865

 

 

$

175,957

 

 

$

800,429

 

 

$

523,858

 

Service revenues

 

 

252,829

 

 

 

205,880

 

 

 

710,608

 

 

 

631,097

 

Total revenues

 

 

554,694

 

 

 

381,837

 

 

 

1,511,037

 

 

 

1,154,955

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of product revenues

 

 

226,020

 

 

 

126,437

 

 

 

616,368

 

 

 

382,932

 

Cost of service revenues

 

 

176,686

 

 

 

137,275

 

 

 

523,348

 

 

 

410,538

 

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

)

 

See accompanying notes to the condensed consolidated financial statements.

4


 

VIASAT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

 

Nine Months Ended

 

 

 

December 31, 2018

 

 

December 31, 2017

 

 

 

(In thousands)

 

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:

 

 

 

 

 

 

 

 

Proceeds from revolving credit facility borrowings

 

 

465,000

 

 

 

 

Payments of revolving credit facility borrowings

 

 

(140,000

)

 

 

 

Payments of Ex-Im credit facility borrowings

 

 

(210,115

)

 

 

 

Proceeds from Ex-Im credit facility borrowings, net of discount

 

 

 

 

 

52,503

 

Proceeds from issuance of 2025 Notes

 

 

 

 

 

700,000

 

Repayment of 2020 Notes

 

 

 

 

 

(575,000

)

Payment of debt extinguishment costs

 

 

 

 

 

(10,602

)

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

 

Exposure fees on Ex-Im credit facility financed through Ex-Im credit facility

 

$

 

 

$

5,764

 

 

See accompanying notes to the condensed consolidated financial statements.

 

5


 

VIASAT, INC.

CONDENSED CONSOLIDATED STATEMENT OF EQUITY

(UNAUDITED)

 

 

 

Viasat, Inc. Stockholders

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of

Shares

Issued

 

 

Amount

 

 

Paid-in

Capital

 

 

Retained

Earnings

 

 

Accumulated

Other

Comprehensive

Income (Loss)

 

 

Noncontrolling

Interest in

Subsidiaries

 

 

Total

 

 

 

(In thousands, except share data)

 

Balance at March 31, 2018

 

 

58,905,274

 

 

$

6

 

 

$

1,535,635

 

 

$

285,960

 

 

$

15,565

 

 

$

10,841

 

 

$

1,848,007

 

Exercise of stock options

 

 

225,000

 

 

 

 

 

 

8,352

 

 

 

 

 

 

 

 

 

 

 

 

8,352

 

Issuance of stock under Employee Stock Purchase Plan

 

 

289,024

 

 

 

 

 

 

15,243

 

 

 

 

 

 

 

 

 

 

 

 

15,243

 

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

 

 

438,433

 

 

 

 

 

 

27,701

 

 

 

 

 

 

 

 

 

 

 

 

27,701

 

RSU awards vesting, net of shares withheld for taxes

   which have been retired

 

 

622,532

 

 

 

 

 

 

(23,680

)

 

 

 

 

 

 

 

 

 

 

 

(23,680

)

Cumulative effect adjustment upon adoption of new

   revenue recognition guidance (ASU 2014-09)

 

 

 

 

 

 

 

 

 

 

 

27,248

 

 

 

 

 

 

 

 

 

27,248

 

Other noncontrolling interest activity

 

 

 

 

 

 

 

 

81

 

 

 

 

 

 

 

 

 

(3,665

)

 

 

(3,584

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

(70,138

)

 

 

 

 

 

(1,694

)

 

 

(71,832

)

Other comprehensive loss, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,518

)

 

 

 

 

 

(8,518

)

Balance at December 31, 2018

 

 

60,480,263

 

 

$

6

 

 

$

1,630,441

 

 

$

243,070

 

 

$

7,047

 

 

$

5,482

 

 

$

1,886,046

 

 

See accompanying notes to the condensed consolidated financial statements.

 

6


 

VIASAT, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

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.

 

 

 

7


VIASAT, INC.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(UNAUDITED)

 

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