Financial Statements of Parent and Subsidiary Guarantors (Tables)

9 Months Ended

Dec. 28, 2012

Condensed Consolidated Balance Sheet

Condensed Consolidated Balance Sheet as of December 28, 2012

	Issuing Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidation and Elimination Adjustments			Consolidated
	(Unaudited, in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	99,961	$	2,787	$	9,919	$	—		$	112,667
Accounts receivable, net		216,196		14,090		7,265		—			237,551
Inventories		96,661		22,910		6,866		—			126,437
Deferred income taxes		18,380		1,526		308		—			20,214
Prepaid expenses and other current assets		30,618		5,276		769		—			36,663
Current portion of intercompany receivables		91,642		1,581		1,403		(94,626	)		—
Total current assets		553,458		48,170		26,530		(94,626	)		533,532
Satellites, net		342,778		205,027		—		—			547,805
Property and equipment, net		185,075		156,494		6,161		—			347,730
Other acquired intangible assets, net		1,824		42,754		6,491		—			51,069
Goodwill		63,938		9,687		9,936		—			83,561
Investments in subsidiaries and intercompany receivables		394,545		1,439		302		(396,286	)		—
Other assets		138,874		45,682		682		—			185,238
Total assets	$	1,680,492	$	509,253	$	50,102	$	(490,912	)	$	1,748,935
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	62,590	$	13,142	$	1,198	$	—		$	76,930
Accrued liabilities		107,373		25,775		6,399		—			139,547
Current portion of other long-term debt		107		920		—		—			1,027
Current portion of intercompany payables		1,403		89,977		3,246		(94,626	)		—
Total current liabilities		171,473		129,814		10,843		(94,626	)		217,504
Senior Notes, net		585,265		—		—		—			585,265
Other long-term debt		—		62		—		—			62
Intercompany payables		308		—		6,263		(6,571	)		—
Other liabilities		39,847		15,810		2,382		—			58,039
Total liabilities		796,893		145,686		19,488		(101,197	)		860,870
Equity:
ViaSat, Inc. stockholders’ equity
Total ViaSat, Inc. stockholders’ equity		883,599		363,567		30,614		(394,181	)		883,599
Noncontrolling interest in subsidiary		—		—		—		4,466			4,466
Total equity		883,599		363,567		30,614		(389,715	)		888,065
Total liabilities and equity	$	1,680,492	$	509,253	$	50,102	$	(490,912	)	$	1,748,935

Condensed Consolidated Balance Sheet as of March 30, 2012

	Issuing Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidation and Elimination Adjustments			Consolidated
	(Unaudited, in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	162,426	$	439	$	9,718	$	—		$	172,583
Accounts receivable, net		192,313		12,411		6,966		—			211,690
Inventories		106,151		16,474		5,021		—			127,646
Deferred income taxes		18,482		1,526		308		—			20,316
Prepaid expenses and other current assets		27,128		2,923		866		—			30,917
Total current assets		506,500		33,773		22,879		—			563,152
Satellites, net		358,580		227,151		—		—			585,731
Property and equipment, net		178,611		110,137		6,225		—			294,973
Other acquired intangible assets, net		2,633		52,389		8,019		—			63,041
Goodwill		63,939		9,687		9,835		—			83,461
Investments in subsidiaries and intercompany receivables		437,631		2,501		1,428		(441,560	)		—
Other assets		117,300		18,886		609		—			136,795
Total assets	$	1,665,194	$	454,524	$	48,995	$	(441,560	)	$	1,727,153
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	62,085	$	12,192	$	763	$	—		$	75,040
Accrued liabilities		128,327		27,477		3,958		—			159,762
Current portion of other long-term debt		129		1,111		—		—			1,240
Total current liabilities		190,541		40,780		4,721		—			236,042
Senior Notes, net		547,791		—		—		—			547,791
Other long-term debt		74		700		—		—			774
Intercompany payables		1,428		4,462		9,429		(15,319	)		—
Other liabilities		37,385		10,269		2,699		—			50,353
Total liabilities		777,219		56,211		16,849		(15,319	)		834,960
Equity:
ViaSat, Inc. stockholders’ equity
Total ViaSat, Inc. stockholders’ equity		887,975		398,313		32,146		(430,459	)		887,975
Noncontrolling interest in subsidiary		—		—		—		4,218			4,218
Total equity		887,975		398,313		32,146		(426,241	)		892,193
Total liabilities and equity	$	1,665,194	$	454,524	$	48,995	$	(441,560	)	$	1,727,153

Condensed Consolidated Statement of Operations

Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) for the Three Months Ended December 28, 2012

	Issuing Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidation and Elimination Adjustments			Consolidated
	(Unaudited, in thousands)
Revenues:
Product revenues	$	156,334		$	652		$	7,859		$	(151	)	$	164,694
Service revenues		53,895			66,685			1,566			(398	)		121,748
Total revenues		210,229			67,337			9,425			(549	)		286,442
Operating expenses:
Cost of product revenues		113,397			908			5,079			(134	)		119,250
Cost of service revenues		35,650			56,042			860			(407	)		92,145
Selling, general and administrative		34,741			24,542			2,926			—			62,209
Independent research and development		7,496			28			96			(8	)		7,612
Amortization of acquired intangible assets		260			3,159			541			—			3,960
Income (loss) from operations		18,685			(17,342	)		(77	)		—			1,266
Other income (expense):
Interest income		36			—			2			—			38
Interest expense		(10,658	)		(14	)		—			—			(10,672	)
Loss on extinguishment of debt		(26,501	)		—			—			—			(26,501	)
Income (loss) before income taxes		(18,438	)		(17,356	)		(75	)		—			(35,869	)
Provision for (benefit from) income taxes		(5,765	)		(9,685	)		195			—			(15,255	)
Equity in net income (loss) of consolidated subsidiaries		(8,103	)		—			—			8,103			—
Net income (loss)		(20,776	)		(7,671	)		(270	)		8,103			(20,614	)
Less: Net income (loss) attributable to noncontrolling interest, net of tax		—			—			—			162			162
Net income (loss) attributable to ViaSat, Inc.	$	(20,776	)	$	(7,671	)	$	(270	)	$	7,941		$	(20,776	)
Comprehensive income (loss) attributable to ViaSat, Inc.	$	(20,710	)	$	(7,671	)	$	(296	)	$	7,967		$	(20,710	)

Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) for the Nine Months Ended December 28, 2012

	Issuing Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidation and Elimination Adjustments			Consolidated
	(Unaudited, in thousands)
Revenues:
Product revenues	$	460,645		$	4,158		$	16,468		$	(373	)	$	480,898
Service revenues		142,923			181,072			7,305			(1,171	)		330,129
Total revenues		603,568			185,230			23,773			(1,544	)		811,027
Operating expenses:
Cost of product revenues		336,104			3,018			10,922			(324	)		349,720
Cost of service revenues		97,016			165,523			4,737			(1,180	)		266,096
Selling, general and administrative		96,484			68,264			8,041			—			172,789
Independent research and development		22,859			538			382			(40	)		23,739
Amortization of acquired intangible assets		809			9,635			1,621			—			12,065
Income (loss) from operations		50,296			(61,748	)		(1,930	)		—			(13,382	)
Other income (expense):
Interest income		138			—			5			—			143
Interest expense		(33,716	)		(50	)		(5	)		—			(33,771	)
Loss on extinguishment of debt		(26,501	)		—			—			—			(26,501	)
Income (loss) before income taxes		(9,783	)		(61,798	)		(1,930	)		—			(73,511	)
Provision for (benefit from) income taxes		(3,563	)		(27,052	)		8			—			(30,607	)
Equity in net income (loss) of consolidated subsidiaries		(36,883	)		—			—			36,883			—
Net income (loss)		(43,103	)		(34,746	)		(1,938	)		36,883			(42,904	)
Less: Net income (loss) attributable to noncontrolling interest, net of tax		—			—			—			199			199
Net income (loss) attributable to ViaSat, Inc.	$	(43,103	)	$	(34,746	)	$	(1,938	)	$	36,684		$	(43,103	)
Comprehensive income (loss) attributable to ViaSat, Inc.	$	(42,710	)	$	(34,746	)	$	(1,717	)	$	36,463		$	(42,710	)

Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) for the Three Months Ended December 30, 2011

	Issuing Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidation and Elimination Adjustments			Consolidated
	(Unaudited, in thousands)
Revenues:
Product revenues	$	115,537		$	735		$	5,651		$	(61	)	$	121,862
Service revenues		30,438			50,864			2,211			(411	)		83,102
Total revenues		145,975			51,599			7,862			(472	)		204,964
Operating expenses:
Cost of product revenues		85,440			854			3,230			(61	)		89,463
Cost of service revenues		17,781			38,200			1,760			(423	)		57,318
Selling, general and administrative		31,801			11,767			2,057			15			45,640
Independent research and development		5,821			—			181			(3	)		5,999
Amortization of acquired intangible assets		971			3,238			543			—			4,752
Income (loss) from operations		4,161			(2,460	)		91			—			1,792
Other income (expense):
Interest income		19			—			1			—			20
Interest expense		(305	)		(26	)		—			—			(331	)
Income (loss) before income taxes		3,875			(2,486	)		92			—			1,481
Provision for (benefit from) income taxes		(1,901	)		(1,318	)		(418	)		—			(3,637	)
Equity in net income (loss) of consolidated subsidiaries		(636	)		—			—			636			—
Net income (loss)		5,140			(1,168	)		510			636			5,118
Less: Net income (loss) attributable to noncontrolling interest, net of tax		—			—			—			(22	)		(22	)
Net income (loss) attributable to ViaSat, Inc.	$	5,140		$	(1,168	)	$	510		$	658		$	5,140
Comprehensive income (loss) attributable to ViaSat, Inc.	$	5,036		$	(1,168	)	$	195		$	973		$	5,036

Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) for the Nine Months Ended December 30, 2011

	Issuing Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidation and Elimination Adjustments			Consolidated
	(Unaudited, in thousands)
Revenues:
Product revenues	$	370,293		$	2,313		$	18,818		$	(405	)	$	391,019
Service revenues		70,123			155,853			7,624			(1,530	)		232,070
Total revenues		440,416			158,166			26,442			(1,935	)		623,089
Operating expenses:
Cost of product revenues		275,370			2,396			13,695			(1,804	)		289,657
Cost of service revenues		43,253			113,657			5,419			(1,491	)		160,838
Selling, general and administrative		88,335			36,827			6,578			12			131,752
Independent research and development		17,778			—			753			(29	)		18,502
Amortization of acquired intangible assets		2,911			9,715			1,665			—			14,291
Income (loss) from operations		12,769			(4,429	)		(1,668	)		1,377			8,049
Other income (expense):
Interest income		264			—			5			(210	)		59
Interest expense		(457	)		(85	)		(210	)		210			(542	)
Income (loss) before income taxes		12,576			(4,514	)		(1,873	)		1,377			7,566
Provision for (benefit from) income taxes		(5,364	)		(2,140	)		(303	)		492			(7,315	)
Equity in net income (loss) of consolidated subsidiaries		(3,951	)		—			—			3,951			—
Net income (loss)		13,989			(2,374	)		(1,570	)		4,836			14,881
Less: Net income (loss) attributable to noncontrolling interest, net of tax		—			—			—			7			7
Net income (loss) attributable to ViaSat, Inc.	$	13,989		$	(2,374	)	$	(1,570	)	$	4,829		$	14,874
Comprehensive income (loss) attributable to ViaSat, Inc.	$	12,470		$	(2,374	)	$	(2,444	)	$	5,703		$	13,355

Condensed Consolidated Statement of Cash Flows

Condensed Consolidated Statement of Cash Flows for the Nine Months Ended December 28, 2012

	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	$	(39,621	)	$	88,567		$	143		$	49		$	49,138
Cash flows from investing activities:
Purchase of property, equipment and satellites, net		(33,742	)		(85,390	)		(1,050	)		—			(120,182	)
Cash paid for patents, licenses and other assets		(18,795	)		—			(85	)		—			(18,880	)
Long-term intercompany notes and investments		(1,155	)		—			—			1,155			—
Net cash provided by (used in) investing activities		(53,692	)		(85,390	)		(1,135	)		1,155			(139,062	)
Cash flows from financing activities:
Proceeds from issuance of Additional 2020 Notes		300,000			—			—			—			300,000
Repayment of 2016 Notes		(271,582	)		—			—			—			(271,582	)
Payment of debt issuance costs		(8,059	)		—			—			—			(8,059	)
Proceeds from issuance of common stock under equity plans		19,512			—			49			(49	)		19,512
Purchase of common stock in treasury		(7,902	)		—			—			—			(7,902	)
Payments on capital lease		(96	)		(829	)		—			—			(925	)
Payments of satellite performance incentives obligation		(1,025	)		—			—			—			(1,025	)
Long-term intercompany financing		—			—			1,155			(1,155	)		—
Net cash provided by (used in) financing activities		30,848			(829	)		1,204			(1,204	)		30,019
Effect of exchange rate changes on cash		—			—			(11	)		—			(11	)
Net increase (decrease) in cash and cash equivalents		(62,465	)		2,348			201			—			(59,916	)
Cash and cash equivalents at beginning of period		162,426			439			9,718			—			172,583
Cash and cash equivalents at end of period	$	99,961		$	2,787		$	9,919		$	—		$	112,667

Condensed Consolidated Statement of Cash Flows for the Nine Months Ended December 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	$	10,692		$	51,853		$	4,365		$	(1,945	)	$	64,965
Cash flows from investing activities:
Purchase of property, equipment and satellites, net		(130,843	)		(28,069	)		(2,200	)		1,945			(159,167	)
Cash paid for patents, licenses and other assets		(17,068	)		—			(36	)		—			(17,104	)
Long-term intercompany notes and investments		3,265			—			—			(3,265	)		—
Net cash provided by (used in) investing activities		(144,646	)		(28,069	)		(2,236	)		(1,320	)		(176,271	)
Cash flows from financing activities:
Proceeds from issuance of common stock under equity plans		14,369			—			—			—			14,369
Purchase of common stock in treasury		(6,991	)		—			—			—			(6,991	)
Payments on capital lease		(84	)		(678	)		—			—			(762	)
Proceeds from line of credit borrowings		130,000			—			—			—			130,000
Payments on line of credit		(20,000	)		—			—			—			(20,000	)
Long-term intercompany financing		30,531			(30,531	)		(3,265	)		3,265			—
Net cash provided by (used in) financing activities		147,825			(31,209	)		(3,265	)		3,265			116,616
Effect of exchange rate changes on cash		—			—			42			—			42
Net increase (decrease) in cash and cash equivalents		13,871			(7,425	)		(1,094	)		—			5,352
Cash and cash equivalents at beginning of period		24,347			7,600			8,543			—			40,490
Cash and cash equivalents at end of period	$	38,218		$	175		$	7,449		$	—		$	45,842