Financial Statements of Parent and Subsidiary Guarantors

6 Months Ended

Sep. 30, 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 September 30, 2011 and April 1, 2011 and for the three and six months ended September 30, 2011 and October 1, 2010.

Condensed Consolidated Balance Sheet as of September 30, 2011

	Issuing  Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidation  and Elimination Adjustments			Consolidated
	(Unaudited, in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	24,045	$	1,361	$	10,601	$	—		$	36,007
Accounts receivable, net		180,620		10,907		6,961		—			198,488
Inventories		109,048		9,467		3,828		—			122,343
Deferred income taxes		16,428		1,723		162		—			18,313
Prepaid expenses and other current assets		36,690		7,241		637		—			44,568
Total current assets		366,831		30,699		22,189		—			419,719
Satellites, net		329,053		241,900		—		—			570,953
Property and equipment, net		161,748		96,466		5,733		—			263,947
Other acquired intangible assets, net		4,261		58,865		8,953		—			72,079
Goodwill		63,939		9,687		9,719		—			83,345
Investments in subsidiaries and intercompany receivables		461,933		4,259		788		(466,980	)		—
Other assets		98,502		16,443		579		—			115,524
Total assets	$	1,486,267	$	458,319	$	47,961	$	(466,980	)	$	1,525,567
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	58,276	$	6,729	$	889	$	—		$	65,894
Accrued liabilities		90,502		23,349		3,458		—			117,309
Current portion of other long-term debt		126		1,086		—		—			1,212
Total current liabilities		148,904		31,164		4,347		—			184,415
Senior Notes due 2016, net		272,544		—		—		—			272,544
Other long-term debt		170,139		1,262		—		—			171,401
Intercompany payables		9,929		—		11,662		(21,591	)		—
Other liabilities		16,111		5,414		2,897		—			24,422
Total liabilities		617,627		37,840		18,906		(21,591	)		652,782
Equity:
ViaSat, Inc. stockholders’ equity
Total ViaSat, Inc. stockholders’ equity		868,640		420,479		29,055		(449,534	)		868,640
Noncontrolling interest in subsidiary		—		—		—		4,145			4,145
Total equity		868,640		420,479		29,055		(445,389	)		872,785
Total liabilities and equity	$	1,486,267	$	458,319	$	47,961	$	(466,980	)	$	1,525,567

Condensed Consolidated Balance Sheet as of April 1, 2011

	Issuing  Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidation  and Elimination 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 September 30, 2011

	Issuing  Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidation  and Elimination Adjustments			Consolidated
	(Unaudited, in thousands)
Revenues:
Product revenues	$	135,843		$	926		$	9,917		$	(75	)	$	146,611
Service revenues		21,988			51,638			3,187			(400	)		76,413
Total revenues		157,831			52,564			13,104			(475	)		223,024
Operating expenses:
Cost of product revenues		100,366			785			7,892			(1,134	)		107,909
Cost of service revenues		14,580			38,321			1,701			(398	)		54,204
Selling, general and administrative		29,919			11,983			2,477			—			44,379
Independent research and development		6,592			—			234			(17	)		6,809
Amortization of acquired intangible assets		970			3,239			558			—			4,767
Income (loss) from operations		5,404			(1,764	)		242			1,074			4,956
Other income (expense):
Interest income		112			—			2			(101	)		13
Interest expense		(152	)		(59	)		(101	)		101			(211	)
Income (loss) before income taxes		5,364			(1,823	)		143			1,074			4,758
Provision for (benefit from) income taxes		(3,443	)		(732	)		272			492			(3,411	)
Equity in net income (loss) of consolidated subsidiaries		(1,414	)		—			—			1,414			—
Net income (loss)		7,393			(1,091	)		(129	)		1,996			8,169
Less: Net income (loss) attributable to noncontrolling interest, net of tax		—			—			—			194			194
Net income (loss) attributable to ViaSat, Inc.	$	7,393		$	(1,091	)	$	(129	)	$	1,802		$	7,975

Condensed Consolidated Statement of Operations for the Six Months Ended September 30, 2011

	Issuing  Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidation  and Elimination Adjustments			Consolidated
	(Unaudited, in thousands)
Revenues:
Product revenues	$	254,756		$	1,578		$	13,167		$	(344	)	$	269,157
Service revenues		39,685			104,989			5,413			(1,119	)		148,968
Total revenues		294,441			106,567			18,580			(1,463	)		418,125
Operating expenses:
Cost of product revenues		189,930			1,542			10,465			(1,743	)		200,194
Cost of service revenues		25,472			75,457			3,659			(1,068	)		103,520
Selling, general and administrative		56,534			25,060			4,521			(3	)		86,112
Independent research and development		11,957			—			572			(26	)		12,503
Amortization of acquired intangible assets		1,940			6,477			1,122			—			9,539
Income (loss) from operations		8,608			(1,969	)		(1,759	)		1,377			6,257
Other income (expense):
Interest income		245			—			4			(210	)		39
Interest expense		(152	)		(59	)		(210	)		210			(211	)
Income (loss) before income taxes		8,701			(2,028	)		(1,965	)		1,377			6,085
Provision for (benefit from) income taxes		(3,463	)		(822	)		115			492			(3,678	)
Equity in net income (loss) of consolidated subsidiaries		(3,315	)		—			—			3,315			—
Net income (loss)		8,849			(1,206	)		(2,080	)		4,200			9,763
Less: Net income (loss) attributable to noncontrolling interest, net of tax		—			—			—			29			29
Net income (loss) attributable to ViaSat, Inc.	$	8,849		$	(1,206	)	$	(2,080	)	$	4,171		$	9,734

Condensed Consolidated Statement of Operations for the Three Months Ended October 1, 2010

	Issuing  Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidation  and Elimination Adjustments			Consolidated
	(Unaudited, in thousands)
Revenues:
Product revenues	$	122,639		$	1,629	$	4,043		$	(725	)	$	127,586
Service revenues		14,248			53,465		3,022			(432	)		70,303
Total revenues		136,887			55,094		7,065			(1,157	)		197,889
Operating expenses:
Cost of product revenues		85,148			1,515		2,408			(620	)		88,451
Cost of service revenues		9,823			30,026		2,270			(422	)		41,697
Selling, general and administrative		25,436			14,060		2,476			(20	)		41,952
Independent research and development		7,384			—		240			(2	)		7,622
Amortization of acquired intangible assets		1,233			3,239		622			—			5,094
Income (loss) from operations		7,863			6,254		(951	)		(93	)		13,073
Other income (expense):
Interest income		155			—		2			(94	)		63
Interest expense		(950	)		—		(94	)		94			(950	)
Income (loss) before income taxes		7,068			6,254		(1,043	)		(93	)		12,186
Provision for (benefit from) income taxes		1,918			2,443		24			—			4,385
Equity in net income (loss) of consolidated subsidiaries		2,729			—		—			(2,729	)		—
Net income (loss)		7,879			3,811		(1,067	)		(2,822	)		7,801
Less: Net income (loss) attributable to noncontrolling interest, net of tax		—			—		—			15			15
Net income (loss) attributable to ViaSat, Inc.	$	7,879		$	3,811	$	(1,067	)	$	(2,837	)	$	7,786

Condensed Consolidated Statement of Operations for the Six Months Ended October 1, 2010

	Issuing  Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidation  and Elimination Adjustments			Consolidated
	(Unaudited, in thousands)
Revenues:
Product revenues	$	247,780		$	2,180	$	5,385		$	(2,757	)	$	252,588
Service revenues		25,470			107,008		5,677			(850	)		137,305
Total revenues		273,250			109,188		11,062			(3,607	)		389,893
Operating expenses:
Cost of product revenues		180,436			1,990		3,352			(2,613	)		183,165
Cost of service revenues		17,827			59,707		4,035			(810	)		80,759
Selling, general and administrative		50,997			26,538		3,358			(20	)		80,873
Independent research and development		14,645			—		293			(2	)		14,936
Amortization of acquired intangible assets		2,493			6,477		734			—			9,704
Income (loss) from operations		6,852			14,476		(710	)		(162	)		20,456
Other income (expense):
Interest income		380			—		5			(183	)		202
Interest expense		(3,091	)		—		(183	)		183			(3,091	)
Income (loss) before income taxes		4,141			14,476		(888	)		(162	)		17,567
Provision for (benefit from) income taxes		374			5,752		240			—			6,366
Equity in net income (loss) of consolidated subsidiaries		7,442			—		—			(7,442	)		—
Net income (loss)		11,209			8,724		(1,128	)		(7,604	)		11,201
Less: Net income (loss) attributable to noncontrolling interest, net of tax		—			—		—			154			154
Net income (loss) attributable to ViaSat, Inc.	$	11,209		$	8,724	$	(1,128	)	$	(7,758	)	$	11,047

Condensed Consolidated Statement of Cash Flows for the Six Months Ended September 30, 2011

	Issuing  Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidation  and Elimination Adjustments			Consolidated
	(Unaudited, in thousands)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	(12,993	)	$	30,987		$	7,704		$	(1,912	)	$	23,786
Cash flows from investing activities:
Purchase of property, equipment and satellites, net		(116,927	)		(16,129	)		(2,169	)		1,912			(133,313	)
Cash paid for patents, licenses and other assets		(8,277	)		—			(18	)		—			(8,295	)
Long-term intercompany notes and investments		3,346			—			—			(3,346	)		—
Net cash provided by (used in) investing activities		(121,858	)		(16,129	)		(2,187	)		(1,434	)		(141,608	)
Cash flows from financing activities:
Proceeds from line of credit borrowings		130,000			—			—			—			130,000
Payments on line of credit		(20,000	)		—			—			—			(20,000	)
Proceeds from issuance of common stock under equity plans		6,167			—			—			—			6,167
Purchase of common stock in treasury		(2,250	)		—			—			—			(2,250	)
Payments on capital lease		(54	)		(411	)		—			—			(465	)
Intercompany long-term financing		20,686			(20,686	)		(3,346	)		3,346			—
Net cash provided by (used in) financing activities		134,549			(21,097	)		(3,346	)		3,346			113,452
Effect of exchange rate changes on cash		—			—			(113	)		—			(113	)
Net increase (decrease) in cash and cash equivalents		(302	)		(6,239	)		2,058			—			(4,483	)
Cash and cash equivalents at beginning of period		24,347			7,600			8,543			—			40,490
Cash and cash equivalents at end of period	$	24,045		$	1,361		$	10,601		$	—		$	36,007

Condensed Consolidated Statement of Cash Flows for the Six Months Ended October 1, 2010

	Issuing  Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidation  and Elimination Adjustments			Consolidated
	(Unaudited, in thousands)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	36,019		$	60,505		$	(201	)	$	(237	)	$	96,086
Cash flows from investing activities:
Purchase of property, equipment and satellites, net		(81,154	)		(27,098	)		(1,503	)		237			(109,518	)
Cash paid for patents, licenses and other assets		(8,370	)		(25	)		(32	)		—			(8,427	)
Payment related to acquisition of business, net of cash acquired		(14,203	)		—			747			—			(13,456	)
Long-term intercompany notes and investments		(2,980	)		100			(213	)		3,093			—
Net cash provided by (used in) investing activities		(106,707	)		(27,023	)		(1,001	)		3,330			(131,401	)
Cash flows from financing activities:
Proceeds from line of credit borrowings		15,000			—			—			—			15,000
Payments on line of credit		(30,000	)		—			—			—			(30,000	)
Proceeds from issuance of common stock under equity plans		16,234			—			—			—			16,234
Purchase of common stock in treasury		(1,884	)		—			—			—			(1,884	)
Intercompany long-term financing		41,858			(41,745	)		2,980			(3,093	)		—
Net cash provided by (used in) financing activities		41,208			(41,745	)		2,980			(3,093	)		(650	)
Effect of exchange rate changes on cash		—			—			115			—			115
Net increase (decrease) in cash and cash equivalents		(29,480	)		(8,263	)		1,893			—			(35,850	)
Cash and cash equivalents at beginning of period		66,258			16,216			7,157			—			89,631
Cash and cash equivalents at end of period	$	36,778		$	7,953		$	9,050		$	—		$	53,781