Financial Statements of Parent and Subsidiary Guarantors

3 Months Ended

Jul. 01, 2011

Financial Statements of Parent and Subsidiary Guarantors [Abstract]

Financial Statements of Parent and Subsidiary Guarantors

Note 13 — Financial Statements of Parent and Subsidiary Guarantors

     In October 2009, the Company issued $275.0 million in principal amount of Notes in a private placement to institutional buyers. The Notes were exchanged in May 2010 for substantially identical Notes that had been registered with the SEC. The Notes are jointly and severally guaranteed on a full and unconditional basis by each of the Guarantor Subsidiaries, which are 100% owned by the Company. The indenture governing the 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.

     The following supplemental financial information sets forth, on a condensed consolidating basis, the balance sheets, statements of operations and statements of cash flows for the Company (as “Issuing Parent Company”), the Guarantor Subsidiaries, the non-guarantor subsidiaries and total consolidated Company and subsidiaries as of July 1, 2011 and April 1, 2011 and for the three months ended July 1, 2011 and July 2, 2010.

Condensed Consolidated Balance Sheet as of July 1, 2011

							Consolidation and
	Issuing Parent		Guarantor		Non-Guarantor		Elimination
	Company		Subsidiaries		Subsidiaries		Adjustments			Consolidated
	(Unaudited, in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	12,910	$	3,555	$	9,648	$	—		$	26,113
Accounts receivable, net		158,763		11,752		6,551		—			177,066
Inventories		107,911		8,955		8,588		(1,015	)		124,439
Deferred income taxes		16,428		1,723		162		492			18,805
Prepaid expenses and other current assets		16,208		6,240		1,618		—			24,066
Total current assets		312,220		32,225		26,567		(523	)		370,489
Satellites, net		283,923		249,274		—		—			533,197
Property and equipment, net		140,552		97,110		5,604		(43	)		243,223
Other acquired intangible assets, net		5,230		62,103		9,755		—			77,088
Goodwill		63,939		9,687		10,076		—			83,702
Investments in subsidiaries and intercompany receivables		480,692		2,869		563		(484,124	)		—
Other assets		93,078		12,885		583		—			106,546
Total assets	$	1,379,634	$	466,153	$	53,148	$	(484,690	)	$	1,414,245
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	58,481	$	5,329	$	735	$	—		$	64,545
Accrued liabilities		89,169		22,644		3,311		—			115,124
Current portion of other long-term debt		125		1,241		—		—			1,366
Total current liabilities		147,775		29,214		4,046		—			181,035
Senior Notes due 2016, net		272,420		—		—		—			272,420
Other long-term debt		75,172		1,538		—		—			76,710
Intercompany payables		11,191		—		16,029		(27,220	)		—
Other liabilities		16,932		4,691		2,923		—			24,546
Total liabilities		523,490		35,443		22,998		(27,220	)		554,711
Equity:
ViaSat, Inc. stockholders’ equity
Total ViaSat, Inc. stockholders’ equity		856,144		430,710		30,150		(461,421	)		855,583
Noncontrolling interest in subsidiary		—		—		—		3,951			3,951
Total equity		856,144		430,710		30,150		(457,470	)		859,534
Total liabilities and equity	$	1,379,634	$	466,153	$	53,148	$	(484,690	)	$	1,414,245

Condensed Consolidated Balance Sheet as of April 1, 2011

							Consolidation and
	Issuing Parent		Guarantor		Non-Guarantor		Elimination
	Company		Subsidiaries		Subsidiaries		Adjustments			Consolidated
	(Unaudited, in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	24,347	$	7,600	$	8,543	$	—		$	40,490
Accounts receivable, net		171,183		10,644		10,062		—			191,889
Inventories		88,542		7,484		2,932		(403	)		98,555
Deferred income taxes		16,428		1,723		162		492			18,805
Prepaid expenses and other current assets		15,236		4,745		1,160		—			21,141
Total current assets		315,736		32,196		22,859		89			370,880
Satellites, net		276,418		256,582		—		—			533,000
Property and equipment, net		122,945		103,410		7,785		(1,001	)		233,139
Other acquired intangible assets, net		6,201		65,341		10,347		—			81,889
Goodwill		63,939		9,686		9,907		—			83,532
Investments in subsidiaries and intercompany receivables		490,288		2,246		404		(492,938	)		—
Other assets		89,834		12,922		552		—			103,308
Total assets	$	1,365,361	$	482,383	$	51,854	$	(493,850	)	$	1,405,748
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	62,465	$	8,164	$	1,083	$	—		$	71,712
Accrued liabilities		100,749		25,691		4,143		—			130,583
Current portion of other long-term debt		116		1,012		—		—			1,128
Total current liabilities		163,330		34,867		5,226		—			203,423
Senior Notes due 2016, net		272,296		—		—		—			272,296
Other long-term debt		60,203		1,743		—		—			61,946
Intercompany payables		14,606		—		11,945		(26,551	)		—
Other liabilities		16,464		4,321		3,057		—			23,842
Total liabilities		526,899		40,931		20,228		(26,551	)		561,507
Equity:
ViaSat, Inc. stockholders’ equity
Total ViaSat, Inc. stockholders’ equity		838,462		441,452		31,626		(471,415	)		840,125
Noncontrolling interest in subsidiary		—		—		—		4,116			4,116
Total equity		838,462		441,452		31,626		(467,299	)		844,241
Total liabilities and equity	$	1,365,361	$	482,383	$	51,854	$	(493,850	)	$	1,405,748

Condensed Consolidated Statement of Operations for the Three Months Ended July 1, 2011

										Consolidation and
	Issuing Parent			Guarantor			Non-Guarantor			Elimination
	Company			Subsidiaries			Subsidiaries			Adjustments			Consolidated
	(Unaudited, in thousands)
Revenues:
Product revenues	$	118,913		$	652		$	3,250		$	(269	)	$	122,546
Service revenues		17,697			53,351			2,226			(719	)		72,555
Total revenues		136,610			54,003			5,476			(988	)		195,101
Operating expenses:
Cost of product revenues		89,564			757			2,573			(609	)		92,285
Cost of service revenues		10,892			37,136			1,958			(670	)		49,316
Selling, general and administrative		26,615			13,077			2,044			(3	)		41,733
Independent research and development		5,365			—			338			(9	)		5,694
Amortization of acquired intangible assets		970			3,238			564			—			4,772
Income (loss) from operations		3,204			(205	)		(2,001	)		303			1,301
Other income (expense):
Interest income		133			—			2			(109	)		26
Interest expense		—			—			(109	)		109			—
Income (loss) before income taxes		3,337			(205	)		(2,108	)		303			1,327
Provision for (benefit from) income taxes		(20	)		(90	)		(157	)		—			(267	)
Equity in net income (loss) of consolidated subsidiaries		(1,901	)		—			—			1,901			—
Net income (loss)		1,456			(115	)		(1,951	)		2,204			1,594
Less: Net income (loss) attributable to noncontrolling interest, net of tax		—			—			—			(165	)		(165	)
Net income (loss) attributable to ViaSat, Inc.	$	1,456		$	(115	)	$	(1,951	)	$	2,369		$	1,759

Condensed Consolidated Statement of Operations for the Three Months Ended July 2, 2010

									Consolidation
	Issuing					Non-			and
	Parent			Guarantor		Guarantor			Elimination
	Company			Subsidiaries		Subsidiaries			Adjustments			Consolidated
	(Unaudited, in thousands)
Revenues:
Product revenues	$	125,141		$	551	$	1,342		$	(2,032	)	$	125,002
Service revenues		11,222			53,543		2,655			(418	)		67,002
Total revenues		136,363			54,094		3,997			(2,450	)		192,004
Operating expenses:
Cost of product revenues		95,288			475		944			(1,993	)		94,714
Cost of service revenues		8,004			29,681		1,765			(388	)		39,062
Selling, general and administrative		25,561			12,478		882			—			38,921
Independent research and development		7,261			—		53			—			7,314
Amortization of acquired intangible assets		1,260			3,238		112			—			4,610
Income (loss) from operations		(1,011	)		8,222		241			(69	)		7,383
Other income (expense):
Interest income		225			—		3			(89	)		139
Interest expense		(2,141	)		—		(89	)		89			(2,141	)
Income (loss) before income taxes		(2,927	)		8,222		155			(69	)		5,381
Provision for (benefit from) income taxes		(1,544	)		3,309		216			—			1,981
Equity in net income (loss) of consolidated subsidiaries		4,713			—		—			(4,713	)		—
Net income (loss)		3,330			4,913		(61	)		(4,782	)		3,400
Less: Net income (loss) attributable to noncontrolling interest, net of tax		—			—		—			139			139
Net income (loss) attributable to ViaSat, Inc.	$	3,330		$	4,913	$	(61	)	$	(4,921	)	$	3,261

Condensed Consolidated Statement of Cash Flows for the Three Months Ended July 1, 2011

										Consolidation
										and
	Issuing Parent			Guarantor			Non-Guarantor			Elimination
	Company			Subsidiaries			Subsidiaries			Adjustments			Consolidated
	(Unaudited, in thousands)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	(4,303	)	$	12,921		$	291		$	—		$	8,909
Cash flows from investing activities:
Purchase of property, equipment and satellites, net		(30,440	)		(5,897	)		(230	)		—			(36,567	)
Cash paid for patents, licenses and other assets		(4,112	)		—			(7	)		—			(4,119	)
Investment in subsidiaries		(955	)		—			—			955			—
Net cash provided by (used in) investing activities		(35,507	)		(5,897	)		(237	)		955			(40,686	)
Cash flows from financing activities:
Proceeds from line of credit borrowings		15,000			—			—			—			15,000
Proceeds from issuance of common stock under equity plans		4,469			—			—			—			4,469
Purchase of common stock in treasury		(2,165	)		—			—			—			(2,165	)
Intercompany long-term financing		11,069			(11,069	)		955			(955	)		—
Net cash provided by (used in) financing activities		28,373			(11,069	)		955			(955	)		17,304
Effect of exchange rate changes on cash		—			—			96			—			96
Net increase (decrease) in cash and cash equivalents		(11,437	)		(4,045	)		1,105			—			(14,377	)
Cash and cash equivalents at beginning of period		24,347			7,600			8,543			—			40,490
Cash and cash equivalents at end of period	$	12,910		$	3,555		$	9,648		$	—		$	26,113

Condensed Consolidated Statement of Cash Flows for the Three Months Ended July 2, 2010

										Consolidation and
	Issuing Parent			Guarantor			Non-Guarantor			Elimination
	Company			Subsidiaries			Subsidiaries			Adjustments			Consolidated
	(Unaudited, in thousands)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	7,153		$	31,192		$	416		$	(83	)	$	38,678
Cash flows from investing activities:
Purchase of property, equipment and satellites, net		(32,065	)		(8,601	)		(723	)		83			(41,306	)
Cash paid for patents, licenses and other assets		(3,851	)		—			—			—			(3,851	)
Investment in subsidiaries		(1,046	)		100			(148	)		1,094			—
Net cash provided by (used in) investing activities		(36,962	)		(8,501	)		(871	)		1,177			(45,157	)
Cash flows from financing activities:
Payments on line of credit		(30,000	)		—			—			—			(30,000	)
Proceeds from issuance of common stock under equity plans		6,198			—			—			—			6,198
Purchase of common stock in treasury		(1,816	)		—			—			—			(1,816	)
Intercompany long-term financing		31,475			(31,427	)		1,046			(1,094	)		—
Net cash provided by (used in) financing activities		5,857			(31,427	)		1,046			(1,094	)		(25,618	)
Effect of exchange rate changes on cash		—			—			(203	)		—			(203	)
Net increase (decrease) in cash and cash equivalents		(23,952	)		(8,736	)		388			—			(32,300	)
Cash and cash equivalents at beginning of period		66,258			16,216			7,157			—			89,631
Cash and cash equivalents at end of period	$	42,306		$	7,480		$	7,545		$	—		$	57,331