Certain Relationships and Related-Party Transactions

9 Months Ended

Dec. 28, 2012

Certain Relationships and Related-Party Transactions

Note 12 — Certain Relationships and Related-Party Transactions

Michael Targoff, who served as a director of the Company from February 2003 to February 2012, is the Vice Chairman of the board of directors of Loral and previously served as the Chief Executive Officer of Loral through December 2012. Mr. Targoff is also a director of Telesat Holdings Inc., a joint venture company formed by Loral and the Public Sector Pension Investment Board to acquire Telesat Canada in October 2007. John Stenbit, a director of the Company since August 2004, also currently serves on the board of directors of Loral.

The Company’s satellite construction contract for ViaSat-1 with SS/L, a subsidiary of Loral prior to November 2012, requires the Company to make monthly satellite performance incentive payments, including interest, over a fifteen-year period from December 2011 to December 2026, subject to the continued satisfactory performance of the satellite. As of December 28, 2012 and March 30, 2012, the Company’s estimated satellite performance incentives obligation and accrued interest were $22.9 million and $22.5 million, respectively. Based on estimates as of December 28, 2012, the remaining amount of satellite performance incentives and related interest that the Company may be required to pay under this satellite construction contract during the period until December 2026 is approximately $38.0 million. Material amounts related to the satellite construction contract with SS/L are disclosed in the tables below.

In addition, from time to time, the Company enters into various contracts in the ordinary course of business with SS/L and Telesat Canada. Material amounts related to these contracts are disclosed in the tables below.

Current payables included in accrued liabilities and long-term payables included in other liabilities as of December 28, 2012 and March 30, 2012 were as follows:

	As of December 28, 2012		As of March 30, 2012
	(In thousands)
Payables, current
Loral – satellite construction contract (estimated satellite performance incentives)	$	1,652	$	1,599
Payables, long-term
Loral – satellite construction contract (estimated satellite performance incentives)		21,235		20,910

Revenue and expense for the three and nine months ended December 28, 2012 and December 30, 2011 were as follows:

	Three Months Ended				Nine Months Ended
	December 28, 2012		December 30, 2011		December 28, 2012		December 30, 2011
	(In thousands)
Revenue
Loral – ordinary course of business	$	*	$	2,251	$	*	$	3,768
Expense
Telesat Canada – ordinary course of business		2,467		*		4,453		1,986

^*  Amounts were not meaningful.

Cash received and paid during the nine months ended December 28, 2012 and December 30, 2011 were as follows:

	Nine Months Ended
	December 28, 2012		December 30, 2011
	(In thousands)
Cash received
Loral – beam sharing agreement	$	—	$	3,845
Telesat Canada – beam sharing agreement		—		8,085
Telesat Canada – ordinary course of business		*		2,843
Cash paid
Loral – satellite construction contract (including satellite performance incentives)		1,067		2,566
Telesat Canada – ordinary course of business		5,721		5,707

^*  Amounts were not meaningful.