Certain Relationships and Related-Party Transactions

12 Months Ended

Apr. 04, 2014

Related Party Transactions [Abstract]

Certain Relationships and Related-Party Transactions

Note 15 — Certain Relationships and Related-Party Transactions

John Stenbit, a director of the Company since August 2004, also serves on the board of directors of Loral. The Company’s satellite construction contract with SS/L (a subsidiary of Loral prior to November 2012), under which the Company purchased ViaSat-1, 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 (see Note 10). In addition, the Company entered into a beam sharing agreement with Loral, whereby Loral was responsible for contributing 15% of the total costs associated with the ViaSat-1 satellite project. The Company’s purchase of the ViaSat-1 satellite from SS/L was approved by the disinterested members of the Company’s Board of Directors, after a determination by the disinterested members of the Company’s Board that the terms and conditions of the purchase were fair to and in the best interests of the Company and its stockholders. In March 2011, Loral entered into agreements with Telesat Canada (an entity owned by TeleSat Holdings, Inc., a joint venture between Loral and the Public Sector Pension Investment Board) pursuant to which Loral assigned to Telesat Canada and Telesat Canada assumed from Loral all of Loral’s rights and obligations with respect to the Canadian beams on ViaSat-1. Material amounts related to the satellite construction contract with SS/L and beam sharing agreement with Telesat Canada 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 Loral and Telesat Canada. Material amounts related to these contracts are disclosed in the tables below.

Revenue and expense for the fiscal years ended April 4, 2014, March 29, 2013 and March 30, 2012 were as follows:

	Fiscal Years Ended
	April 4, 2014		March 29, 2013		March 30, 2012
	(In thousands)
Revenue:
Loral – ordinary course of business	$	*	$	*	$	3,983
Expense:
Telesat Canada – ordinary course of business		7,785		7,685		3,380

^{*  Amount was not meaningful}

Cash received and paid during the fiscal years ended April 4, 2014, March 29, 2013 and March 30, 2012 were as follows:

	Fiscal Years Ended
	April 4, 2014			March 29, 2013		March 30, 2012
	(In thousands)
Cash received:
Telesat Canada – beam sharing agreement	$	—		$	—	$	13,457
Loral – ordinary course of business		*			—		1,194
Telesat Canada – ordinary course of business		*			1,023		2,930
Cash paid:
SS/L – satellite construction contract (including estimated satellite performance incentives)		*	*		1,609		4,174
Telesat Canada – ordinary course of business		7,868			7,358		7,606

^{*  Amount was not meaningful}

^{** Effective as of November 2012, SS/L is no longer a related party}