Composition of Certain Balance Sheet Accounts

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Composition of Certain Balance Sheet Accounts

6. Composition of Certain Balance Sheet Accounts

Prepaid expenses and other current assets as of March 31, 2019 and December 31, 2018 were as follows (in thousands):

	March 31,		December 31,
	2019		2018
Contract assets	$	10,852	$	10,423
Prepaid satellite services		7,170		7,755
Restricted cash		1,535		1,535
Other		12,583		14,982
Total prepaid expenses and other current assets	$	32,140	$	34,695

Property and equipment as of March 31, 2019 and December 31, 2018 were as follows (in thousands):

	March 31,			December 31,
	2019			2018
Office equipment, furniture, fixtures and other	$	52,637		$	52,320
Leasehold improvements		44,839			44,838
Airborne equipment (1)		715,055			642,151
Network equipment		210,044			205,463
		1,022,575			944,772
Accumulated depreciation		(457,090	)		(432,905	)
Total property and equipment, net	$	565,485		$	511,867

(1) The change between March 31, 2019 and December 31, 2018 primarily relates to the accounting impact of one of our airline partner agreements transitioning to the turnkey model (see Note 1, “Basis of Presentation,” for additional information).

Other non-current assets as of March 31, 2019 and December 31, 2018 were as follows (in thousands):

	March 31,		December 31,
	2019		2018
Contract assets	$	55,536	$	49,517
Deferred STC costs		16,289		16,453
Restricted cash		5,426		5,426
Other		9,082		12,816
Total other non-current assets	$	86,333	$	84,212

Accrued liabilities as of March 31, 2019 and December 31, 2018 were as follows (in thousands):

	March 31,		December 31,
	2019		2018
Employee compensation and benefits	$	13,437	$	19,463
Airborne equipment and installation costs		17,625		25,119
Airline related accrued liabilities		41,609		45,077
Accrued interest		27,180		46,694
Accrued satellite network costs		14,989		19,557
Warranty reserve		11,750		12,291
Operating leases (1)		11,585		—
Other		44,892		44,910
Total accrued liabilities	$	183,067	$	213,111

(1) The change between March 31, 2019 and December 31, 2018 is due to the adoption of ASC 842. See Note 2, “Recent Accounting Pronouncements,” for additional information.

Other non-current liabilities as of March 31, 2019 and December 31, 2018 were as follows (in thousands):

	March 31,		December 31,
	2019		2018
Deferred revenue	$	24,709	$	21,482
Deferred rent (1)		—		35,897
Asset retirement obligations		9,945		9,696
Deferred tax liabilities		2,206		2,162
Other		10,696		10,954
Total other non-current liabilities	$	47,556	$	80,191

(1) The change between March 31, 2019 and December 31, 2018 is due to the adoption of ASC 842. See Note 2, “Recent Accounting Pronouncements,” for additional information.