Common Stock and Stock Plans

12 Months Ended

Apr. 01, 2011

Common Stock and Stock Plans [Abstract]

Common Stock and Stock Plans

Note 6 — Common Stock and Stock Plans

On March 31, 2010, the Company and certain former WildBlue equity and debt holders (the WildBlue Investors) completed the sale of an aggregate of 6,900,000 shares of ViaSat common stock in an underwritten public offering, 3,173,962 of which were sold by the Company and 3,726,038 of which were sold by such WildBlue Investors. The Company’s net proceeds from the offering were approximately $100.5 million after deducting underwriting discounts and estimated offering expenses. The shares sold by such WildBlue Investors in the offering constituted shares of ViaSat common stock issued to such WildBlue Investors in connection with the Company’s acquisition of WildBlue. On April 1, 2010, the Company used $80.0 million of the net proceeds to repay outstanding borrowings under the Credit Facility. The remaining net proceeds from the offering were used for general corporate purposes.

In March 2010, the Company filed a universal shelf registration statement with the SEC for the future sale of an unlimited amount of debt securities, common stock, preferred stock, depositary shares, warrants, and rights. The securities may be offered from time to time, separately or together, directly by the Company, by selling security holders, or through underwriters, dealers or agents at amounts, prices, interest rates and other terms to be determined at the time of the offering.

In November 1996, the Company adopted the 1996 Equity Participation Plan. The 1996 Equity Participation Plan provides for the grant to executive officers, other key employees, consultants and non-employee directors of the Company a broad variety of stock-based compensation alternatives such as nonqualified stock options, incentive stock options, restricted stock units and performance awards. From November 1996 to September 2010 through various amendments of the 1996 Equity Participation Plan, the Company increased the maximum number of shares reserved for issuance under this plan from 2,500,000 shares to 17,400,000 shares. The Company believes that such awards better align the interests of its employees with those of its stockholders. Shares of the Company’s common stock granted under the Plan in the form of stock options or stock appreciation right are counted against the Plan share reserve on a one for one basis. Shares of the Company’s common stock granted under the Plan as an award other than as an option or as a stock appreciation right with a per share purchase price lower than 100% of fair market value on the date of grant are counted against the Plan share reserve as two shares for each share of common stock up to September 22, 2010 and subsequently as 2.65 shares for each share of common stock. Restricted stock units are granted to eligible employees and directors and represent rights to receive shares of common stock at a future date. As of April 1, 2011, the Company had granted options and restricted stock units, net of cancellations, to purchase 8,962,233 and 2,405,021 shares of common stock, respectively, under the Plan.

In November 1996, the Company adopted the ViaSat, Inc. Employee Stock Purchase Plan (the Employee Stock Purchase Plan) to assist employees in acquiring a stock ownership interest in the Company and to encourage them to remain in the employment of the Company. The Employee Stock Purchase Plan is intended to qualify under Section 423 of the Internal Revenue Code. In July of 2009, the Company amended the Employee Stock Purchase Plan to increase the maximum number of shares reserved for issuance under this plan from 1,500,000 shares to 2,250,000 shares. The Employee Stock Purchase Plan permits eligible employees to purchase common stock at a discount through payroll deductions during specified six-month offering periods. No employee may purchase more than $25,000 worth of stock in any calendar year. The price of shares purchased under the Employee Stock Purchase Plan is equal to 85% of the fair market value of the common stock on the first or last day of the offering period, whichever is lower. As of April 1, 2011, the Company had issued 1,710,854 shares of common stock under this plan.

Transactions related to the Company’s stock options are summarized as follows:

						Weighted Average
	Number of			Exercise Price		Exercise Price
	Shares			per Share		per Share
Outstanding at March 28, 2008		5,641,225		$	4.70 — $43.82	$	19.63
Options granted		280,800			19.05 — 27.27		21.04
Options canceled		(135,700	)		10.73 — 33.68		24.86
Options exercised		(337,276	)		4.70 — 22.03		10.73
Outstanding at April 3, 2009		5,449,049			5.03 — 43.82		20.12
Options granted		383,900			23.66 — 29.45		29.05
Options canceled		(94,874	)		5.03 — 43.82		29.06
Options exercised		(1,019,899	)		5.03 — 30.74		19.06
Outstanding at April 2, 2010		4,718,176			5.03 — 33.68		20.90
Options granted		266,250			39.21 — 41.52		41.26
Options canceled		(20,543	)		8.94 — 33.68		27.40
Options exercised		(1,124,415	)		5.03 — 33.68		19.60
Outstanding at April 1, 2011		3,839,468		$	5.03 — $41.52	$	22.66

All options issued under the Company’s stock option plans have an exercise price equal to the fair market value of the Company’s stock on the date of the grant.

The following table summarizes all options outstanding and exercisable by price range as of April 1, 2011:

			Weighted
			Average		Weighted				Weighted
			Remaining		Average				Average
	Number		Contractual		Exercise		Number		Exercise
Range of Exercise Prices	Outstanding		Life-Years		Price		Exercisable		Price
$5.03 — $12.76		387,292		1.79	$	10.36		387,292	$	10.36
13.01 — 18.25		546,376		1.61		15.31		546,376		15.31
18.41 — 18.41		3,500		1.67		18.41		3,500		18.41
18.73 — 18.73		470,315		3.52		18.73		470,315		18.73
18.97 — 20.95		392,366		3.12		20.22		270,866		20.27
21.02 — 23.37		387,669		3.73		21.62		387,669		21.62
23.66 — 25.88		214,317		2.62		24.60		199,967		24.60
26.15 — 26.15		501,438		1.52		26.15		501,438		26.15
26.63 — 29.45		440,350		4.39		28.91		169,200		28.35
30.37 — 41.52		495,845		4.05		36.91		194,833		32.00
$5.03 — $41.52		3,839,468		2.91	$	22.66		3,131,456	$	20.50

Transactions related to the Company’s restricted stock units are summarized as follows:

	Number of
	Restricted Stock
	Units
Outstanding at March 28, 2008		300,909
Awarded		637,200
Forfeited		(29,717	)
Released		(94,181	)
Outstanding at April 3, 2009		814,211
Awarded		831,250
Forfeited		(21,807	)
Released		(234,039	)
Outstanding at April 2, 2010		1,389,615
Awarded		630,056
Forfeited		(37,035	)
Released		(433,173	)
Outstanding at April 1, 2011		1,549,463

All restricted stock units awarded under the Company’s stock plans have an exercise price equal to zero.