Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2018

Summary of Revenue Disaggregated by Category

The following table presents our revenue disaggregated by category (in thousands):

	For the Three Months Ended
	June 30, 2018
	CA-NA		CA-ROW		BA		Total
Service revenue
Connectivity	$	88,833	$	14,548	$	47,831	$	151,212
Entertainment, CAS and other		6,913		637		294		7,844
Total service revenue	$	95,746	$	15,185	$	48,125	$	159,056
Equipment revenue
ATG	$	2,254	$	—	$	20,497	$	22,751
Satellite		21,650		18,460		4,461		44,571
Other		—		—		1,080		1,080
Total equipment revenue	$	23,904	$	18,460	$	26,038	$	68,402
Customer type
Airline passenger and aircraft owner/operator	$	54,718	$	5,097	$	48,125	$	107,940
Airline, OEM and aftermarket dealer		49,141		26,311		26,038		101,490
Third party		15,791		2,237		—		18,028
Total revenue	$	119,650	$	33,645	$	74,163	$	227,458
	For the Six Months Ended
	June 30, 2018
	CA-NA		CA-ROW		BA		Total
Service revenue
Connectivity	$	170,873	$	28,197	$	95,223	$	294,293
Entertainment, CAS and other		13,656		1,233		552		15,441
Total service revenue	$	184,529	$	29,430	$	95,775	$	309,734
Equipment revenue
ATG (1)	$	47,016	$	—	$	35,918	$	82,934
Satellite (1)		31,926		23,384		8,719		64,029
Other		—		—		2,586		2,586
Total equipment revenue	$	78,942	$	23,384	$	47,223	$	149,549

Customer type
Airline passenger and aircraft owner/operator	$	107,642	$	9,826	$	95,775	$	213,243
Airline, OEM and aftermarket dealer (2)		126,567		39,005		47,223		212,795
Third party		29,262		3,983		—		33,245
Total revenue	$	263,471	$	52,814	$	142,998	$	459,283

1) ATG and satellite equipment revenue for the CA-NA segment includes the $45.4 million related to the accounting impact of the transition of one of our airline partners to the airline-directed model. Approximately $43.4 million was included in ATG equipment revenue and approximately $2.0 million was included in satellite equipment revenue.

2) Airline, OEM and aftermarket dealer revenue includes all equipment revenue for our three segments, including the $45.4 million accounting impact of the transition of one of our airline partners to the airline-directed model.

Accounting Standards Update 2014-09 [Member]

Summary of Post Adoption Impact of ASC 606 on Unaudited Condensed Consolidated Balance Sheet and Statement of Operations

The following table presents the post adoption impact of ASC 606 on our unaudited condensed consolidated balance sheet and the statement of operations (in thousands):

	As of June 30, 2018
	As Reported			Impact of ASC 606			Balances Without Adoption of ASC 606
Assets
Prepaid expenses and other current assets	$	35,092		$	(907	)	$	34,185
Other non-current assets		70,739			98,567			169,306
Liabilities
Current deferred revenue		37,275			26,055			63,330
Other non-current liabilities		83,887			106,131			190,018
Equity
Accumulated deficit		(1,132,146	)		(24,165	)		(1,156,311	)

	For the Three Months Ended
	June 30, 2018
	As Reported			Impact of ASC 606			Balances Without Adoption of ASC 606
Revenue:
Service revenue	$	159,056		$	4,514		$	163,570
Equipment revenue		68,402			(31,362	)		37,040
Operating expenses:
Cost of equipment revenue		64,350			(25,144	)		39,206
Engineering, design and development		28,409			691			29,100
Net loss		(37,207	)		(2,395	)		(39,602	)
	For the Six Months Ended
	June 30, 2018
	As Reported			Impact of ASC 606			Balances Without Adoption of ASC 606
Revenue:
Service revenue	$	309,734		$	8,906		$	318,640
Equipment revenue		149,549			(82,019	)		67,530
Operating expenses:
Cost of equipment revenue		116,643			(64,294	)		52,349
Engineering, design and development		58,186			1,542			59,728
Net loss		(64,626	)		(10,361	)		(74,987	)