Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2017	Oct. 30, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Trading Symbol	GOGO
Entity Registrant Name	Gogo Inc.
Entity Central Index Key	0001537054
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		86,772,729

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 222,378	$ 117,302
Short-term investments	188,496	338,477
Total cash, cash equivalents and short-term investments	410,874	455,779
Accounts receivable, net of allowances of $729 and $499, respectively	112,029	73,743
Inventories	48,621	50,266
Prepaid expenses and other current assets	20,414	24,942
Total current assets	591,938	604,730
Non-current assets:
Property and equipment, net	614,311	519,810
Intangible assets, net	90,661	85,175
Goodwill	620	620
Long-term restricted cash	6,873	7,773
Other non-current assets	58,508	28,088
Total non-current assets	770,973	641,466
Total assets	1,362,911	1,246,196
Current liabilities:
Accounts payable	23,845	31,689
Accrued liabilities	148,264	132,055
Accrued airline revenue share	16,714	15,521
Deferred revenue	39,062	32,722
Deferred airborne lease incentives	39,071	36,277
Current portion of capital leases	2,149	2,799
Total current liabilities	269,105	251,063
Non-current liabilities:
Long-term debt	995,546	800,715
Deferred airborne lease incentives	121,588	135,879
Deferred tax liabilities	9,001	8,264
Other non-current liabilities	123,198	90,668
Total non-current liabilities	1,249,333	1,035,526
Total liabilities	1,518,438	1,286,589
Commitments and contingencies (Note 11)
Stockholders' deficit
Common stock, par value $0.0001 per share; 500,000,000 shares authorized at September 30, 2017 and December 31, 2016; 87,000,688 and 86,529,907 shares issued at September 30, 2017 and December 31, 2016, respectively; and 86,772,729 and 86,295,870 shares outstanding at September 30, 2017 and December 31, 2016, respectively	9	9
Additional paid-in-capital	893,713	879,135
Accumulated other comprehensive loss	(1,018)	(2,163)
Accumulated deficit	(1,048,231)	(917,374)
Total stockholders' deficit	(155,527)	(40,393)
Total liabilities and stockholders' deficit	$ 1,362,911	$ 1,246,196

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowances on accounts receivable	$ 729	$ 499
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	87,000,688	86,529,907
Common stock, shares outstanding	86,772,729	86,295,870

Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue:
Service revenue	$ 153,347	$ 129,099	$ 453,918	$ 375,406
Equipment revenue	19,527	18,168	57,162	61,146
Total revenue	172,874	147,267	511,080	436,552
Operating expenses:
Cost of service revenue (exclusive of items shown below)	67,854	56,365	201,794	164,615
Cost of equipment revenue (exclusive of items shown below)	15,326	10,527	41,623	36,752
Engineering, design and development	31,313	25,835	103,262	72,201
Sales and marketing	16,294	14,874	47,253	46,366
General and administrative	24,064	21,661	70,162	65,038
Depreciation and amortization	35,824	26,779	96,821	76,042
Total operating expenses	190,675	156,041	560,915	461,014
Operating loss	(17,801)	(8,774)	(49,835)	(24,462)
Other (income) expense:
Interest income	(683)	(852)	(1,999)	(1,064)
Interest expense	27,585	24,848	81,754	58,701
Loss on extinguishment of debt				15,406
Adjustment of deferred financing costs				(792)
Other (income) expense	228	34	322	(137)
Total other expense	27,130	24,030	80,077	72,114
Loss before income taxes	(44,931)	(32,804)	(129,912)	(96,576)
Income tax provision	350	469	945	997
Net loss	$ (45,281)	$ (33,273)	$ (130,857)	$ (97,573)
Net loss attributable to common stock per share-basic and diluted	$ (0.57)	$ (0.42)	$ (1.65)	$ (1.24)
Weighted average number of shares-basic and diluted	79,543	79,003	79,340	78,864

Unaudited Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net loss	$ (45,281)	$ (33,273)	$ (130,857)	$ (97,573)
Currency translation adjustments	655	(100)	1,145	376
Comprehensive loss	$ (44,626)	$ (33,373)	$ (129,712)	$ (97,197)

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating activities:
Net loss	$ (130,857)	$ (97,573)
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Depreciation and amortization	96,821	76,042
Loss on asset disposals, abandonments and write-downs	7,540	1,619
Deferred income taxes	737	630
Stock-based compensation expense	15,007	12,986
Loss of extinguishment of debt		15,406
Amortization of deferred financing costs	2,718	2,981
Accretion and amortization of debt discount and premium	13,872	12,940
Adjustment of deferred financing costs		(792)
Changes in operating assets and liabilities:
Accounts receivable	(38,130)	6,874
Inventories	1,645	(14,653)
Prepaid expenses and other current assets	4,928	(18,106)
Accounts payable	(1,246)	2,174
Accrued liabilities	20,521	2,750
Deferred airborne lease incentives	11,722	8,635
Deferred revenue	11,080	19,690
Deferred rent	336	317
Accrued airline revenue share	1,169	1,525
Accrued interest	(17,742)	16,025
Other non-current assets and liabilities	(4,330)	(4,322)
Net cash provided by (used in) operating activities	(4,209)	45,148
Investing activities:
Proceeds from the sale of property and equipment		84
Purchases of property and equipment	(190,479)	(107,108)
Acquisition of intangible assets-capitalized software	(23,759)	(21,586)
Purchases of short-term investments	(213,651)	(278,961)
Redemptions of short-term investments	363,632	159,727
Other, net	(2,486)	136
Net cash used in investing activities	(66,743)	(247,708)
Financing activities:
Proceeds from the issuance of senior secured notes	181,843	525,000
Payments on amended and restated credit agreement		(310,132)
Payment of issuance costs	(3,602)	(10,610)
Payments on capital leases	(2,340)	(1,875)
Stock-based compensation activity	(429)	43
Net cash provided by financing activities	175,472	202,426
Effect of exchange rate changes on cash	556	(378)
Increase (decrease) in cash and cash equivalents	105,076	(512)
Cash and cash equivalents at beginning of period	117,302	147,342
Cash and cash equivalents at end of period	222,378	146,830
Supplemental Cash Flow Information:
Cash paid for interest	86,359	27,535
Cash paid for taxes	35	291
Noncash Investing and Financing Activities:
Purchases of property and equipment in current liabilities	46,817	31,062
Purchases of property and equipment paid by commercial airlines	7,987	10,993
Purchases of property and equipment under capital leases	1,174	1,531
Acquisition of intangible assets in current liabilities	1,100	1,390
Asset retirement obligation incurred and adjustments	$ 778	$ (36)

Basis of Presentation	9 Months Ended
Basis of Presentation	Sep. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	1. Basis of Presentation *The Business—Gogo Inc. (“we”, “us”, “our”) is a holding company, which through its operating subsidiaries is a provider of in-flight connectivity and wireless in-cabin digital entertainment solutions. We operate through the following three segments: Commercial Aviation North America or “CA-NA”, Commercial Aviation Rest of World or “CA-ROW” and Business Aviation or “BA”. Services provided by our CA-NA and CA-ROW businesses include Passenger Connectivity, which allows passengers to connect to the Internet from their personal Wi-Fi-enableddevices; Passenger Entertainment, which offers passengers the opportunity to enjoy a broad selection of in-flight entertainment options on their personal Wi-Fi-enabled devices; and Connected Aircraft Services (“CAS”), which offers airlines connectivity for various operations and currently include, among others, real-time credit card transaction processing, electronic flight bags and real-time weather information. Services are provided by CA-NA on commercial aircraft flying routes that generally begin and end within North America, which for this purpose includes the United States, Canada and Mexico. CA-ROW provides service on commercial aircraft operated by foreign-based commercial airlines and flights outside of North America for North American-based commercial airlines. The routes included in our CA-ROW segment are those that begin and/or end outside of North America (as defined above) on which our international service is provided. BA provides in-flight Internet connectivity and other voice and data communications products and services and sells equipment for in-flight telecommunications to the business aviation market. BA services include Gogo Biz, our in-flight broadband service, Passenger Entertainment, our in-flight entertainment service, and satellite-based voice and data services through our strategic alliances with satellite companies. Basis of Presentation—The accompanying unaudited condensed consolidated financial statements and notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conformity with Article 10 of Regulation S-X promulgated under the Securities Act of 1933, as amended (the “Securities Act”). Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements and should be read in conjunction with our annual audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016 as filed with the Securities and Exchange Commission (“SEC”) on February 27, 2017 (the “2016 10-K”). These unaudited condensed consolidated financial statements reflect, in the opinion of management, all material adjustments (which include normal recurring adjustments) necessary to fairly state, in all material respects, our financial position, results of operations and cash flows for the periods presented. The results of operations and cash flows for the nine month period ended September 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2017. We have one class of common stock outstanding as of September 30, 2017 and December 31, 2016. Use of Estimates*—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, management evaluates the significant estimates and bases such estimates on historical experience and on various other assumptions believed to be reasonable under the circumstances. However, actual results could differ materially from those estimates. Under agreements with certain of our airline partners to upgrade our equipment on certain aircraft or decommission certain aircraft on which our equipment is installed, on a quarterly basis we reassess the useful life of the affected equipment. As a result, we shorten the useful lives of the affected equipment to be consistent with the estimated upgrade date or aircraft decommissioning date, as applicable. We also shorten the remaining amortization period for deferred airborne lease incentives for certain equipment on aircraft to be decommissioned. The change in estimated useful lives related to these events resulted in increases in depreciation expense of $8.6 million and $14.9 million, respectively, in the three and nine month periods ended September 30, 2017 and increases in the amortization of deferred airborne lease incentives, which reduced our cost of service revenue, of $1.3 million and $3.5 million, respectively, in the three and nine month periods ended September 30, 2017. As a result, net loss per basic and fully diluted share increased by $0.09 and $0.14, respectively, for the three and nine month periods ended September 30, 2017.

Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2017

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

2. Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue From Contracts With Customers (“ASU 2014-09”). This pronouncement outlines a single comprehensive model to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. The core principle of ASU 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the FASB issued several amendments to the standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations. This new guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within the annual reporting periods; we will adopt this guidance as of January 1, 2018. We are continuing to evaluate our revenue contracts under the new guidance. Based on our preliminary understanding of the impact the adoption of this standard will have on our financial statements, we reassessed and now plan to adopt the standard using the modified retrospective method. Under the modified retrospective method, revenue and expenses that would have been recognized in the future will be recorded to equity as a cumulative adjustment at the date of adoption. While we are continuing to evaluate the impact of the adoption of this guidance on our consolidated financial statements, we currently believe that the measurement and timing of recognition of revenue and related costs from certain of our customer contracts will be impacted in the following ways, primarily from our Airline Directed contracts in CA-NA and CA-ROW (cash flows and cash and cash equivalents will not be impacted):

•

Under the current revenue recognition standard, the sale of CA-NA and CA-ROW airborne connectivity equipment does not meet all of the requirements for being recognized as a separate unit of accounting, resulting in the deferral of equipment revenue (and the related equipment cost) over the life of the contract. Under ASU 2014-09, we have concluded that the sale of airborne connectivity equipment for Airline Directed arrangements will represent a separate performance obligation as it is both capable of being distinct and distinct within the context of the arrangement. As such, the recognition of all airborne equipment revenue and related costs will be accelerated and recognized upon installation.

•

Our contracts with customers generate service revenue that varies based on usage of our service. Under the current revenue recognition standard, these revenues are recognized as services are provided. Under ASU 2014-09, our preliminary conclusion is that we will be required to use a variable consideration model which requires us to estimate (and constrain) variable service revenue, and allocate total contract consideration among all performance obligations. Additionally, estimates used in the recognition of revenue under the new standard will be updated as new facts and circumstances warrant, which may cause differences in the trend of revenue recognition as compared to that reported under the current standard.

•

We have assessed the treatment of costs to obtain or fulfill a contract with a customer, including costs to obtain Supplemental Type Certificates (“STCs”) issued by the FAA that are required to install our equipment on aircraft. Such costs are expensed as incurred under the current standard. Under ASU 2014-09, we have concluded that under our Airline Directed model these costs require capitalization and subsequent amortization over the anticipated service period. Conversely, STC costs incurred in connection with our airline partners operating under our Turnkey model are not subject to the same guidance and will continue to be expensed as incurred under ASU 2014-09.

•

Penalties are recorded under the current standard when incurred. Under ASU 2014-09, anticipated penalties will be accounted for as a reduction of revenue when or at the time the related performance obligation is satisfied.

The impact upon adoption of ASU 2014-09 is subject to change based on new contracts or contractual amendments executed prior to the date of adoption, including contractual amendments that change and arrangement from a Turnkey model to an Airline Directed model. Such changes could have a significant effect on the transition adjustment recorded upon adoption of the new standard.

In March 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”), which introduces a lessee model that records most leases on the balance sheet. ASU 2016-02 also aligns certain underlying principles of the new lessor model with those in Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”), the FASB’s new revenue recognition standard. Furthermore, ASU 2016-02 eliminates the required use of bright-line tests used in current GAAP for determining lease classification. It also requires lessors to provide additional transparency into their exposure to the changes in value of their residual assets and how they manage that exposure. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual reporting periods. We will adopt this as guidance as of January 1, 2019 and we are currently evaluating the impact of the adoption of this guidance on our consolidated financial statements.

In March 2016, the FASB issued ASU 2016-04, Recognition of Breakage for Certain Prepaid Stored-Value Products (“ASU 2016-04”), which amends the guidance on extinguishing financial liabilities for certain prepaid stored-value products by requiring that entities that sell prepaid stored-value products recognize breakage proportionally as the prepaid stored-value product is being redeemed rather than immediately upon sale of the product. If an entity is unable to estimate breakage, the amount would be recognized when the likelihood becomes remote that the holder will exercise the remaining rights. Entities are required to reassess their estimates of breakage each reporting period. Any change in this estimate would be accounted for as a change in an accounting estimate. An entity that recognizes breakage is required to disclose the methodology used to recognize breakage and significant judgments made in applying the breakage methodology. ASU 2016-04 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. We can apply ASU 2016-04 by using either a modified retrospective transition approach or a full retrospective transition approach. We will adopt this as guidance as of January 1, 2018 and we are currently evaluating the impact of the adoption of this guidance on our consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which amends ASC 230, Statement of Cash Flows, the FASB’s standards for reporting cash flows in general-purpose financial statements. The amendments address the diversity in practice related to the classification of certain cash receipts and payments including debt prepayment or debt extinguishment costs. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. We will adopt this guidance as of January 1, 2018 and we expect to apply this standard using the full retrospective method. We do not believe adoption of this guidance will have a material effect on our cash flows as we have historically reported debt prepayment and debt extinguishment costs in a manner consistent with ASU 2016-15.

In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”), which removes the prohibition in ASC 740, Income Taxes, against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. This is intended to reduce the complexity of GAAP and diversity in practice related to the tax consequences of certain types of intra-entity asset transfers, particularly those involving intellectual property. ASU 2016-16 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. We will adopt this guidance as of January 1, 2018 and we are currently evaluating the impact of the adoption of this guidance on our consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Restricted Cash – A Consensus of the FASB Emerging Issues Task Force, (“ASU 2016-18”), which amends ASC 230, Statement of Cash Flows, to clarify guidance on the classification and presentation of restricted cash in the statement of cash flows. ASU 2016-18 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. We will adopt this guidance as of January 1, 2018 and do not believe the adoption of this guidance will have a material impact on our consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which simplifies the accounting for goodwill impairments by eliminating Step-2 from the goodwill impairment test. ASU 2017-04 is effective for annual reporting periods beginning after December 15, 2019 and early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We will adopt this guidance as part of our annual goodwill impairment test in October 2017 and do not believe the adoption of this guidance will have a material impact on our consolidated financial statements.

In May 2017, the FASB issued ASU 2017-09, Scope of Modification Accounting (“ASU 2017-09”), which amends the scope of modification accounting for share-based payment arrangements. The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718, Compensation – Stock Compensation. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. ASU 2017-09 is effective for annual reporting periods beginning after December 15, 2017 and early adoption is permitted. We will adopt this guidance as of January 1, 2018 and do not believe the adoption of this guidance will have a material impact on our consolidated financial statements.

Net Loss Per Share

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Net Loss Per Share

3. Net Loss Per Share

Basic and diluted net loss per share have been calculated using the weighted average number of common shares outstanding for the period. The shares of common stock effectively repurchased in connection with the Forward Transactions (as defined and described in Note 8, “Long-Term Debt and Other Liabilities”) are considered participating securities requiring the two-class method to calculate basic and diluted earnings per share. Net earnings in future periods will be allocated between common shares and participating securities. In periods of a net loss, the shares associated with the Forward Transactions will not receive an allocation of losses, as the counterparties to the Forward Transactions are not required to fund losses. Accordingly, the calculation of weighted average shares outstanding as of September 30, 2017 and 2016 excludes approximately 7.2 million shares that will be repurchased as a result of the Forward Transactions.

As a result of the net loss for the three and nine month periods ended September 30, 2017 and 2016, all of the outstanding shares of common stock underlying stock options, deferred stock units and restricted stock units were excluded from the computation of diluted shares outstanding because they were anti-dilutive.

The following table sets forth the computation of basic and diluted earnings per share for the three and nine month periods ended September 30, 2017 and 2016; however, because of the undistributed losses, the shares of common stock associated with the Forward Transactions are excluded from the computation of basic earnings per share in 2017 and 2016 as undistributed losses are not allocated to these shares (in thousands, except per share amounts):


	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2017			2016			2017			2016
Net loss	$	(45,281	)	$	(33,273	)	$	(130,857	)	$	(97,573	)
Less: Participation rights of the Forward Transactions		—			—			—			—

Undistributed losses	$	(45,281	)	$	(33,273	)	$	(130,857	)	$	(97,573	)

Weighted-average common shares outstanding-basic and diluted		79,543			79,003			79,340			78,864

Net loss attributable to common stock per share-basic and diluted	$	(0.57	)	$	(0.42	)	$	(1.65	)	$	(1.24	)

Inventories

9 Months Ended

Sep. 30, 2017

Inventory Disclosure [Abstract]

Inventories

4. Inventories

Inventories consist primarily of telecommunications systems and parts, and are recorded at the lower of cost (average cost) or market. We evaluate the need for write-downs associated with obsolete, slow-moving, and nonsalable inventory by reviewing net realizable inventory values on a periodic basis.

Inventories as of September 30, 2017 and December 31, 2016, all of which were included within the BA segment, were as follows (in thousands):


	September 30,		December 31,
	2017		2016
Work-in-process component parts	$	37,462	$	39,150
Finished goods		11,159		11,116

Total inventory	$	48,621	$	50,266

Composition of Certain Balance Sheet Accounts

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Composition of Certain Balance Sheet Accounts

5. Composition of Certain Balance Sheet Accounts

Property and equipment as of September 30, 2017 and December 31, 2016 were as follows (in thousands):


	September 30,			December 31,
	2017			2016
Office equipment, furniture, fixtures and other	$	45,230		$	49,529
Leasehold improvements		42,413			42,143
Airborne equipment		702,414			557,196
Network equipment		186,650			168,121

		976,707			816,989
Accumulated depreciation		(362,396	)		(297,179	)

Property and equipment, net	$	614,311		$	519,810

Other non-current assets as of September 30, 2017 and December 31, 2016 were as follows (in thousands):


	September 30,		December 31,
	2017		2016
Deferred cost of equipment revenue	$	40,493	$	14,159
Deposits on satellite and airborne equipment		8,371		10,800
Other		9,644		3,129

Total other non-current assets	$	58,508	$	28,088

Accrued liabilities as of September 30, 2017 and December 31, 2016 were as follows (in thousands):


	September 30,		December 31,
	2017		2016
Employee compensation and benefits	$	23,831	$	21,008
Airborne equipment and installation costs		35,459		22,442
Airborne partner related accrued liabilities		16,226		14,307
Accrued interest		22,694		40,436
Other		50,054		33,862

Total accrued liabilities	$	148,264	$	132,055

Other non-current liabilities as of September 30, 2017 and December 31, 2016 were as follows (in thousands):


	September 30,		December 31,
	2017		2016
Deferred revenue	$	67,048	$	38,976
Deferred rent		37,101		36,538
Asset retirement obligations		9,935		8,527
Other		9,114		6,627

Total other non-current liabilities	$	123,198	$	90,668

Intangible Assets

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

6. Intangible Assets

Our intangible assets are comprised of both indefinite-lived and finite-lived intangible assets. Intangible assets with indefinite lives and goodwill are not amortized, but are reviewed for impairment at least annually or whenever events or circumstances indicate the carrying value of the asset may not be recoverable. We perform our annual impairment tests of our indefinite-lived intangible assets and goodwill during the fourth quarter of each fiscal year. We also reevaluate the useful life of the indefinite-lived intangible assets each reporting period to determine whether events and circumstances continue to support an indefinite useful life. The results of our annual indefinite-lived intangible assets and goodwill impairment assessments in the fourth quarter of 2016 indicated no impairment.

As of September 30, 2017 and December 31, 2016, our goodwill balance, all of which related to our BA segment, was $0.6 million.

Our intangible assets, other than goodwill, as of September 30, 2017 and December 31, 2016 were as follows (in thousands, except for weighted average remaining useful life):


	Weighted
	Average		As of September 30, 2017							As of December 31, 2016
	Remaining		Gross					Net		Gross					Net
	Useful Life		Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
	(in years)		Amount		Amortization			Amount		Amount		Amortization			Amount
Amortized intangible assets:
Software		2.2	$	140,818	$	(85,490	)	$	55,328	$	118,836	$	(70,127	)	$	48,709
Service customer relationship		2.5		8,081		(5,534	)		2,547		8,081		(4,773	)		3,308
Other intangible assets		1.3		1,500		(997	)		503		1,500		(682	)		818
OEM and dealer relationships				6,724		(6,724	)		—		6,724		(6,667	)		57

Total amortized intangible assets				157,123		(98,745	)		58,378		135,141		(82,249	)		52,892
Unamortized intangible assets:
FCC Licenses				32,283		—			32,283		32,283		—			32,283

Total intangible assets			$	189,406	$	(98,745	)	$	90,661	$	167,424	$	(82,249	)	$	85,175

Amortization expense was $4.9 million and $16.5 million, respectively, for the three and nine month periods ended September 30, 2017, and $6.0 million and $15.8 million, respectively, for the prior year periods.

Amortization expense for each of the next five years and thereafter is estimated to be as follows (in thousands):


	Amortization
Years ending December 31,	Expense
2017 (period from October 1 to December 31)	$	7,137
2018	$	24,284
2019	$	14,427
2020	$	8,382
2021	$	2,425
Thereafter	$	1,723

Actual future amortization expense could differ from the estimated amount as a result of future investments and other factors.

Warranties	9 Months Ended
Warranties	Sep. 30, 2017
Guarantees and Product Warranties [Abstract]
Warranties	7. Warranties We provide warranties on parts and labor related to our products. Our warranty terms range from two to five years. Warranty reserves are established for costs that are estimated to be incurred after the sale, delivery and installation of the products under warranty. The warranty reserves are determined based on known product failures, historical experience and other available evidence, and are included in accrued liabilities in our unaudited condensed consolidated balance sheets. Our warranty reserve balance was $2.7 million and $2.6 million, respectively, as of September 30, 2017 and December 31, 2016.

Long-Term Debt and Other Liabilities

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Long-Term Debt and Other Liabilities

8. Long-Term Debt and Other Liabilities

Long-term debt as of September 30, 2017 and December 31, 2016 was as follows (in thousands):


	September 30,			December 31,
	2017			2016
Senior Secured Notes	$	706,277		$	525,000
Convertible Notes		306,462			292,024

Total debt		1,012,739			817,024
Less deferred financing costs		(17,193	)		(16,309	)

Total long-term debt	$	995,546		$	800,715

Senior Secured Notes – On June 14, 2016 (the “Issue Date”), Gogo Intermediate Holdings LLC (“GIH”) (a wholly owned subsidiary of Gogo Inc.) and Gogo Finance Co. Inc. (a wholly owned subsidiary of GIH) (the “Co-Issuer” and, together with GIH, the “Issuers”), issued $525 million aggregate principal amount of 12.500% senior secured notes due 2022 (the “Original Senior Secured Notes”) under an Indenture, dated as of June 14, 2016 (the “Original Indenture”), among the Issuers, us, as guarantor, certain subsidiaries of GIH, as guarantors (the “Subsidiary Guarantors” and, together with us, the “Guarantors”), and U.S. Bank National Association, as trustee (in such capacity, the “Trustee”) and as collateral agent (in such capacity, the “Collateral Agent”). On January 3, 2017, the Issuers issued $65 million aggregate principal amount of additional senior secured notes due 2022 (the “January 2017 Additional Notes”). The January 2017 Additional Notes were issued at a price equal to 108% of their face value resulting in gross proceeds of $70.2 million. On September 20, 2017, the Issuers, the Guarantors and the Trustee entered into the first supplemental indenture (the “Supplemental Indenture” and, together with the Original Indenture, the “Indenture”) to modify certain covenants, as discussed below. On September 25, 2017, the Issuers issued $100 million aggregate principal amount of additional senior secured notes due 2022 (the “September 2017 Additional Notes”). The September 2017 Additional Notes were issued at a price equal to 113% of their face value resulting in gross proceeds of $113.0 million. Additionally, we received approximately $2.9 million for interest that accrued from July 1, 2017 through September 24, 2017, which will be paid out when we make our next interest payment in January 2018. We refer to the Original Senior Secured Notes, the January 2017 Additional Notes and the September 2017 Additional Notes collectively as the “Senior Secured Notes.”

As noted above, on September 20, 2017, the Issuers, the Guarantors and the Trustee entered into the Supplemental Indenture to (i) increase the amount of additional secured indebtedness under Credit Facilities (as defined in the Indenture) that may be incurred by the Issuer and its Restricted Subsidiaries (as defined in the Indenture) under the Indenture by $100 million (from $75 million to $175 million in aggregate principal amount), (ii) permit the Issuer and its Restricted Subsidiaries to incur additional secured indebtedness in connection with vendor financing arrangements not to exceed $50 million in aggregate principal amount at any time outstanding and (iii) permit the Issuer and its Restricted Subsidiaries to make additional dividends or distributions to Gogo in an aggregate amount of up to $15 million during any twelve-month period to pay interest on any indebtedness or preferred stock with a maturity later than July 1, 2022. The Supplemental Indenture became effective immediately upon execution, following our receipt of consents from holders of a majority of the outstanding principal amount of the Existing Notes (excluding Existing Notes held by the Issuers or any affiliates of the Issuers) to the Supplemental Indenture and amendments to the collateral agency agreement governing the Senior Secured Notes (the “Consent”). In connection with the Consent, GIH paid $1.4 million in fees (“Consent Fees”) to holders of Existing Notes who validly offered (and did not revoke) their consents prior to the expiration of the Consent.

As of September 30, 2017 and December 31, 2016, the outstanding principal amount of the Senior Secured Notes was $690.0 million and $525.0 million, respectively. The unamortized debt premium and Consent fees were $16.3 million as of September 30, 2017 and the net carrying amount was $706.3 million as of September 30, 2017. The net carrying amount was $525.0 million as of December 31, 2016.

Interest on the Senior Secured Notes accrues at the rate of 12.500% per annum and is payable semi-annually in arrears on July 1 and January 1, commencing on January 1, 2017 (other than the January 2017 Additional Notes, for which interest payments commenced on July 1, 2017, and the September 2017 Additional Notes, for which interest payments will commence on January 1, 2018). The Senior Secured Notes mature on July 1, 2022. The January 2017 Additional Notes and September 2017 Additional Notes have the same terms as the Original Senior Secured Notes, except with respect to the issue date and issue price, and are treated as a single series for all purposes under the Indenture and the security documents that govern the Senior Secured Notes.

We paid approximately $11.4 million, $2.0 million and $2.5 million, respectively, of aggregate origination fees and financing costs related to the issuance of the Original Senior Secured Notes, the January 2017 Additional Notes and the September 2017 Additional Notes, which have been accounted for as deferred financing costs. Additionally, as noted above, we paid approximately $1.4 million of Consent fees, which offset the net carrying value of the Senior Secured Notes. The deferred financing costs on our unaudited condensed consolidated balance sheet are being amortized over the contractual term of the Senior Secured Notes using the effective interest method. Total amortization expense was $0.5 million and $1.6 million, respectively, for the three and nine month periods ended September 30, 2017, and $0.4 million and $0.5 million, respectively, for the prior year periods. As of September 30, 2017 and December 31, 2016, the balance of unamortized deferred financing costs related to the Senior Secured Notes was $13.2 million and $11.2 million, respectively, and is included as a reduction to long-term debt in our unaudited condensed consolidated balance sheet. See Note 9, “Interest Costs” for additional information.

The Senior Secured Notes are the senior secured indebtedness of the Issuers and are:

•

effectively senior to all of the Issuers’ existing and future senior unsecured indebtedness and the Issuers’ indebtedness secured on a junior priority basis by the same collateral securing the Senior Secured Notes, if any, in each case to the extent of the value of the collateral securing the Senior Secured Notes;

•

effectively senior in right of payment to all of the Issuers’ future indebtedness that is subordinated in right of payment to the Senior Secured Notes;

•

effectively equal in right of payment with the Issuers’ existing and future (i) unsecured indebtedness that is not subordinated in right of payment to the Senior Secured Notes and (ii) indebtedness secured on a junior priority basis by the same collateral securing the Senior Secured Notes, if any, in each case to the extent of any insufficiency in the collateral securing the Senior Secured Notes;

•

structurally senior to all of our existing and future indebtedness, including our Convertible Notes (as defined below); and

•

structurally subordinated to all of the indebtedness and other liabilities of any non-Guarantors (other than the Issuers).

The Senior Secured Notes are guaranteed, on a senior secured basis, by us and all of GIH’s existing and future domestic restricted subsidiaries (other than the Co-Issuer), subject to certain exceptions. The Issuers’ obligations under the Senior Secured Notes are not guaranteed by Gogo International Holdings LLC, a subsidiary of ours that holds no material assets other than equity interests in our foreign subsidiaries. Each guarantee is a senior secured obligation of such Guarantor and is:

•

effectively senior to all of such Guarantor’s existing and future senior unsecured indebtedness and such Guarantor’s indebtedness secured on a junior priority basis by the same collateral, if any, securing the guarantee of such Guarantor, in each case to the extent of the value of the collateral securing such guarantee;

•

effectively senior in right of payment to all of such Guarantor’s future indebtedness that is subordinated in right of payment to such Guarantor’s guarantee;

•

effectively equal in right of payment with all of such Guarantor’s existing and future (i) unsecured indebtedness that is not subordinated in right of payment to such Guarantor’s guarantee, and (ii) indebtedness secured on a junior priority basis by the same collateral, if any, securing the guarantee of such Guarantor, in each case to the extent of any insufficiency in the collateral securing such guarantee; and

•

structurally subordinated to all indebtedness and other liabilities of any non-Guarantor subsidiary of such Guarantor (excluding, in the case of our guarantee, the Issuers).

The Senior Secured Notes and the related guarantees are secured by first-priority liens, subject to permitted liens, on substantially all of the Issuers’ and the Guarantors’ assets, except for certain excluded assets, including pledged equity interests of the Issuers and all of our existing and future domestic restricted subsidiaries guaranteeing the Senior Secured Notes.

The security interests in certain collateral may be released without the consent of holders of the Senior Secured Notes if such collateral is disposed of in a transaction that complies with the Indenture and related security agreements. In addition, under certain circumstances, we and the Guarantors have the right to transfer certain intellectual property assets that on the Issue Date constitute collateral securing the Senior Secured Notes or the guarantees to a restricted subsidiary organized under the laws of Switzerland, resulting in the release of such collateral without consent of the holders of the Senior Secured Notes.

On or after July 1, 2019, the Issuers may, at their option, at any time or from time to time, redeem any of the Senior Secured Notes in whole or in part. The Senior Secured Notes will be redeemable at the following redemption prices (expressed in percentages of principal amount), plus accrued and unpaid interest, if any, to (but not including) the redemption date (subject to the right of holders of record on the relevant regular record date on or prior to the redemption date to receive interest due on an interest payment date), if redeemed during the twelve-month period commencing on July 1 of the following years:


	Redemption
Year	Price
2019		106.250	%
2020		103.125	%
2021 and thereafter		100.000	%

In addition, at any time prior to July 1, 2019, the Issuers may redeem up to 35% of the aggregate principal amount of the Senior Secured Notes with the proceeds of certain equity offerings at a redemption price of 112.500% of the principal amount redeemed, plus accrued and unpaid interest, if any, to (but not including) the date of redemption; provided, however, that Senior Secured Notes representing at least 65% of the principal amount of the Senior Secured Notes remain outstanding immediately after each such redemption.

The Issuers may redeem the Senior Secured Notes, in whole or in part, at any time prior to July 1, 2019, at a redemption price equal to 100% of the principal amount of the Senior Secured Notes redeemed plus the make-whole premium set forth in the Indenture as of, and accrued and unpaid interest, if any, to (but not including) the applicable redemption date.

The Indenture contains covenants that, among other things, limit the ability of the Issuers and the Subsidiary Guarantors and, in certain circumstances, our ability, to: incur additional indebtedness; pay dividends, redeem stock or make other distributions; make investments; create restrictions on the ability of our restricted subsidiaries to pay dividends to the Issuers or make other intercompany transfers; create liens; transfer or sell assets; merge or consolidate; and enter into certain transactions with the Issuers’ affiliates, including us. Most of these covenants will cease to apply if, and for as long as, the Senior Secured Notes have investment grade ratings from both Moody’s Investment Services, Inc. and Standard & Poor’s.

If we or the Issuers undergo specific types of change of control prior to July 1, 2022, GIH is required to make an offer to repurchase for cash all of the Senior Secured Notes at a repurchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to (but not including) the payment date.

The Indenture provides for events of default, which, if any of them occur, would permit or require the principal, premium, if any, and interest on all of the then outstanding Senior Secured Notes issued under the Indenture to be due and payable immediately. As of September 30, 2017, no event of default had occurred.

Convertible Notes – On March 3, 2015, we issued $340.0 million aggregate principal amount of 3.75% Convertible Senior Notes due 2020 (the “Convertible Notes”) in a private offering to qualified institutional buyers, pursuant to Rule 144A under the Securities Act. We granted an option to the initial purchasers to purchase up to an additional $60.0 million aggregate principal amount of Convertible Notes to cover over-allotments, of which $21.9 million was subsequently exercised during March 2015, resulting in a total issuance of $361.9 million aggregate principal amount of Convertible Notes. The Convertible Notes mature on March 1, 2020, unless earlier repurchased or converted into shares of our common stock under certain circumstances described below. Upon maturity, we have the option to settle our obligation through cash, shares of common stock, or a combination of cash and shares of common stock. We pay interest on the Convertible Notes semi-annually in arrears on March 1 and September 1 of each year. Interest payments began on September 1, 2015.

The $361.9 million of proceeds received from the issuance of the Convertible Notes was initially allocated between long-term debt (the liability component) at $261.9 million and additional paid-in-capital (the equity component) at $100.0 million, within the consolidated balance sheet. The fair value of the liability component was measured using rates determined for similar debt instruments without a conversion feature. The carrying amount of the equity component, representing the conversion option, was determined by deducting the fair value of the liability component from the aggregate face value of the Convertible Notes. If we or the note holders elect not to settle the debt through conversion, we must settle the Convertible Notes at face value. Therefore, the liability component will be accreted up to the face value of the Convertible Notes, which will result in additional non-cash interest expense being recognized in the unaudited condensed consolidated statements of operations through the Convertible Notes maturity date (see Note 9, “Interest Costs” for additional information). The effective interest rate on the Convertible Notes, including accretion of the notes to par and debt issuance cost amortization, was approximately 11.5%. The equity component will not be remeasured as long as it continues to meet the conditions for equity classification.

As of September 30, 2017 and December 31, 2016, the outstanding principal on the Convertible Notes was $361.9 million, the unamortized debt discount was $55.4 million and $69.9 million, respectively, and the net carrying amount of the liability component was $306.5 million and $292.0 million, respectively.

We incurred approximately $10.4 million of issuance costs related to the issuance of the Convertible Notes of which $7.5 million and $2.9 million were recorded to deferred financing costs and additional paid-in capital, respectively, in proportion to the allocation of the proceeds of the Convertible Notes. The $7.5 million recorded as deferred financing costs on our unaudited condensed consolidated balance sheet is being amortized over the term of the Convertible Notes using the effective interest method. Total amortization expense of the deferred financing costs was $0.4 million and $1.1 million, respectively, for the three and nine months periods ended September 30, 2017, and $0.4 million and $1.0 million, respective, for the prior year periods. Amortization expense is included in interest expense in the unaudited condensed consolidated statements of operations. As of September 30, 2017 and December 31, 2016, the balance of unamortized deferred financing costs related to the Convertible Notes was $4.0 million and $5.1 million, respectively, and is included as a reduction to long-term debt in our unaudited condensed consolidated balance sheets. See Note 9, “Interest Costs” for additional information.

The Convertible Notes had an initial conversion rate of 41.9274 common shares per $1,000 principal amount of Convertible Notes, which is equivalent to an initial conversion price of approximately $23.85 per share of our common stock. Upon conversion, we currently expect to deliver cash up to the principal amount of the Convertible Notes then outstanding. With respect to any conversion value in excess of the principal amount, we currently expect to deliver shares of our common stock. We may elect to deliver cash in lieu of all or a portion of such shares. The shares of common stock subject to conversion are excluded from diluted earnings per share calculations under the if-converted method as their impact is anti-dilutive.

Holders may convert the Convertible Notes, at their option, in multiples of $1,000 principal amount at any time prior to December 1, 2019, but only in the following circumstances:

•

during any fiscal quarter beginning after the fiscal quarter ended June 30, 2015, if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during the last 30 consecutive trading days of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price of the Convertible Notes on each applicable trading day;

•

during the five business day period following any five consecutive trading day period in which the trading price for the Convertible Notes is less than 98% of the product of the last reported sale price of our common stock and the conversion rate for the Convertible Notes on each such trading day; or

•

upon the occurrence of specified corporate events.

None of the above events allowing for conversion prior to December 1, 2019 occurred during the three and nine month periods ended September 30, 2017. Regardless of whether any of the foregoing circumstances occurs, a holder may convert its Convertible Notes, in multiples of $1,000 principal amount, at any time on or after December 1, 2019 until maturity.

In addition, if we undergo a fundamental change (as defined in the indenture governing the Convertible Notes), holders may, subject to certain conditions, require us to repurchase their Convertible Notes for cash at a price equal to 100% of the principal amount of the Convertible Notes to be purchased, plus any accrued and unpaid interest. In addition, if specific corporate events occur prior to the maturity date, we will increase the conversion rate for a holder who elects to convert its Convertible Notes in connection with such a corporate event in certain circumstances.

In connection with the issuance of the Convertible Notes, we paid approximately $140 million to enter into prepaid forward stock repurchase transactions (the “Forward Transactions”) with certain financial institutions (the “Forward Counterparties”), pursuant to which we purchased approximately 7.2 million shares of common stock for settlement on or around the March 1, 2020 maturity date for the Convertible Notes, subject to the ability of each Forward Counterparty to elect to settle all or a portion of its Forward Transactions early. As a result of the Forward Transactions, total shareholders’ equity within our unaudited condensed consolidated balance sheet was reduced by approximately $140 million. Approximately 7.2 million shares of common stock that will be effectively repurchased through the Forward Transactions are treated as retired shares for basic and diluted EPS purposes although they remain legally outstanding.

Amended and Restated Senior Term Facility – On July 30, 2014, GIH, Gogo Business Aviation LLC, f/k/a Aircell Business Aviation Services LLC (“GBA”), and Gogo LLC, as borrowers (collectively, the “Borrowers”), entered into an Amendment and Restatement Agreement (the “Amendment”) to the Credit Agreement dated as of June 21, 2012 and amended on April 4, 2013 (the “Amended Senior Term Facility”) among the Borrowers, the lenders named therein, and Morgan Stanley Senior Funding, Inc., as Administrative Agent and Collateral Agent. We refer to the Amendment and the Amended Senior Term Facility collectively as the “Amended and Restated Senior Term Facility.”

On June 14, 2016, the outstanding principal balance of $287.7 million, together with accrued and unpaid interest, was paid in full, and the Amended and Restated Senior Term Facility was terminated in accordance with its terms on such date (subject to the survival of provisions expressly stated therein to survive the termination thereof). Additionally, we paid the voluntary prepayment premium of 3.0%, or $8.6 million, and wrote off all of the remaining unamortized deferred financing costs of $6.8 million. Both of these items are included in loss on extinguishment of debt in our unaudited condensed consolidated financial statements. See Note 6, “Long-Term Debt and Other Liabilities,” in our 2016 10-K for additional information on the Amended and Restated Senior Term Facility.

We paid $22.2 million of loan origination fees and financing costs related to the Amended and Restated Senior Term Facility, all but $4.1 million of which were accounted for as deferred financing costs. Total amortization expense of the deferred financing costs was $1.4 million for the nine month period ended September 30, 2016. Amortization expense is included in interest expense in the unaudited condensed consolidated statements of operations. As noted above, deferred financing costs related to the Amended and Restated Senior Term Facility were written off as of June 14, 2016.

Restricted Cash - Our restricted cash balances were $7.4 million and $7.9 million, respectively, as of September 30, 2017 and December 31, 2016 and primarily consist of letters of credit. Certain of the letters of credit require us to maintain restricted cash accounts in a similar amount, and are issued for the benefit of the landlords at our current office locations in Chicago, IL, Bensenville, IL and Broomfield, CO.

Interest Costs

9 Months Ended

Sep. 30, 2017

Text Block [Abstract]

Interest Costs

9. Interest Costs

We capitalize a portion of our interest on funds borrowed during the active construction period of major capital projects. Capitalized interest is added to the cost of the underlying assets and amortized over the useful lives of the assets.

The following is a summary of our interest costs for the three and nine month periods ended September 30, 2017 and 2016 (in thousands):


	For the Three Months					For the Nine Months
	Ended September 30,					Ended September 30,
	2017			2016		2017			2016
Interest costs charged to expense	$	21,936		$	19,598	$	65,164		$	42,780
Amortization of deferred financing costs		919			818		2,718			2,981
Accretion of debt discount on Convertible Notes		4,945			4,432		14,438			12,940
Amortization of debt premium on Senior Secured Notes		(215	)		—		(566	)		—

Interest expense		27,585			24,848		81,754			58,701
Interest costs capitalized to property and equipment		9			34		15			187
Interest costs capitalized to software		193			279		804			961

Total interest costs	$	27,787		$	25,161	$	82,573		$	59,849

Leases

9 Months Ended

Sep. 30, 2017

Leases [Abstract]

Leases

10. Leases

Arrangements with Commercial Airlines — Pursuant to contractual agreements with our airline partners, we place our equipment on commercial aircraft operated by the airlines for the purpose of delivering the Gogo service to passengers on the aircraft. There are currently two types of commercial airline arrangements: Turnkey and Airline Directed.

Under the Turnkey model, we account for equipment transactions as operating leases of space for our equipment on the aircraft. We may be responsible for the costs of installing and/or deinstalling the equipment. The majority of the equipment transactions involve the transfer of legal title but do not meet sales recognition for accounting purposes because the risks and rewards of ownership are not fully transferred due to our continuing involvement with the equipment, the length of the term of our agreements with the airlines, and restrictions in the agreements regarding the airlines’ use of the equipment. Under the Turnkey model, we refer to our relationship with the airline as a “partner”.

Under the Turnkey model, the assets are recorded as airborne equipment on our unaudited condensed consolidated balance sheets, as noted in Note 5, “Composition of Certain Balance Sheet Accounts.” Any upfront equipment payments are accounted for as lease incentives and recorded as deferred airborne lease incentives on our unaudited condensed consolidated balance sheets and are recognized as a reduction of the cost of service revenue on a straight-line basis over the term of the agreement with the airline. We recognized $10.1 million and $28.1 million, respectively, for the three and nine month periods ended September 30, 2017, and $7.8 million and $20.7 million, respectively, for the prior year periods as a reduction to our cost of service revenue in our unaudited condensed consolidated statements of operations. As of September 30, 2017, deferred airborne lease incentives of $39.1 million and $121.6 million, respectively, are included in current and non-current liabilities in our unaudited condensed consolidated balance sheet. As of December 31, 2016, deferred airborne lease incentives of $36.3 million and $135.9 million, respectively, are included in current and non-current liabilities in our unaudited condensed consolidated balance sheet. The decrease in our deferred airborne lease incentives is due primarily to the transition in the accounting treatment for one of our airline agreements from a Turnkey model in the prior year period to an Airline Directed model in the first quarter of 2017 due to specific provisions elected by the airline.

Under the Turnkey model, the revenue share paid to our airline partners represents operating lease payments. They are deemed to be contingent rental payments, as the payments due to each airline are based on a percentage of our CA-NA and CA-ROW service revenue generated from that airline’s passengers, which is unknown until realized. Therefore, we cannot estimate the lease payments due to an airline at the commencement of our contract with such airline. This rental expense is included in cost of service revenue and is partially offset by the amortization of the deferred airborne lease incentives discussed above. Such rental expenses totaled a net charge of $7.7 million and $26.9 million, respectively, for the three and nine month periods ended September 30, 2017, and $10.1 million and $32.3 million, respectively, for the prior year periods.

A contract with one of our airline partners requires us to provide the airline partner with a cash rebate of $1.8 million in June 2018.

Under the Airline Directed model, which we have historically used on a limited basis, equipment transactions qualify for sale treatment due to the specific provisions of the agreement. When all the recognition conditions are met for the equipment, the sale is recognized as equipment revenue. When equipment and services are not separable, equipment revenue is deferred and recognized over the service period. Under the Airline Directed model, we refer to our relationship with the airline as a “customer”. For more information see Note 2, “Summary of Significant Accounting Policies” in our 2016 10-K.

Leases and Cell Site Contracts — We have lease agreements relating to certain facilities and equipment, which are considered operating leases. Rent expense for such operating leases was $3.0 million and $9.0 million, respectively, for the three and nine month periods ended September 30, 2017, and $3.0 million and $8.9 million, respectively, for the prior year periods. Additionally, we have operating leases with wireless service providers for tower space and base station capacity on a volume usage basis (“cell site leases”), some of which provide for minimum annual payments. Our cell site leases generally provide for an initial noncancelable term with various renewal options. Total cell site rental expense was $2.3 and $7.0 million, respectively, for the three and nine month periods ended September 30, 2017, and $2.3 million and $7.0 million, respectively, for the prior year periods.

Annual future minimum obligations for operating leases for each of the next five years and thereafter, other than the arrangements we have with our commercial airline partners, as of September 30, 2017, are as follows (in thousands):


	Operating
Years ending December 31,	Leases
2017 (period from October 1 to December 31)	$	5,005
2018	$	18,832
2019	$	17,765
2020	$	15,718
2021	$	15,478
Thereafter	$	95,693

Equipment Leases – We lease certain computer and network equipment under capital leases, for which interest has been imputed with annual interest rates in an approximate range of 8% to 14%. As of September 30, 2017 and December 31, 2016 the computer equipment leases were classified as part of office equipment, furniture, and fixtures and other in our unaudited condensed consolidated balance sheet at a gross cost of $5.1 million and $3.9 million, respectively. As of September 30, 2017 and December 31, 2016, the network equipment leases were classified as part of network equipment in our unaudited condensed consolidated balance sheet at a gross cost of $7.5 million and $7.5 million, respectively. Annual future minimum obligations under capital leases for each of the next five years and thereafter, as of September 30, 2017, are as follows (in thousands):


	Capital
Years ending December 31,	Leases
2017 (period from October 1 to December 31)	$	947
2018		2,030
2019		1,016
2020		34
Thereafter		—

Total minimum lease payments		4,027
Less: Amount representing interest		(401	)

Present value of net minimum lease payments	$	3,626

The $3.6 million present value of net minimum lease payments as of September 30, 2017 has a current portion of $2.1 million included in the current portion of long-term debt and capital leases and a non-current portion of $1.5 million included in other non-current liabilities.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	11. Commitments and Contingencies Contractual Commitments - We have agreements with vendors to provide us with transponder and teleport satellite services. These agreements vary in length and amount and as of September 30, 2017 commit us to purchase transponder and teleport satellite services totaling approximately $21.4 million in 2017 (October 1 through December 31), $75.6 million in 2018, $81.9 million in 2019, $86.2 million in 2020, $75.9 million in 2021 and $303.0 million thereafter. We have agreements with various vendors under which we have remaining commitments to purchase satellite-based systems, certifications and development services. Such commitments will become payable as we receive the equipment or certifications, or as development services are provided. Damages and Penalties—We have entered into a number of agreements with our airline partners that require us to provide a credit or pay penalties or liquidated damages to our airline partners if we are unable to install our equipment on aircraft by specified timelines or fail to comply with service level commitments. The maximum amount of future credits or payments we could be required to make under these agreements is uncertain because the amount of future credits or payments is based on certain variable inputs. Indemnifications and Guarantees - In accordance with Delaware law, we indemnify our officers and directors for certain events or occurrences while the officer or director is, or was, serving at our request in such capacity. The maximum potential amount of future payments we could be required to make under this indemnification is uncertain and may be unlimited, depending upon circumstances. However, our Directors’ and Officers’ insurance does provide coverage for certain of these losses. In the ordinary course of business we may occasionally enter into agreements pursuant to which we may be obligated to pay for the failure of performance of others, such as the use of corporate credit cards issued to employees. Based on historical experience, we believe that the risk of sustaining any material loss related to such guarantees is remote. We have entered into a number of agreements, including our agreements with commercial airlines, pursuant to which we indemnify the other party for losses and expenses suffered or incurred in connection with any patent, copyright, or trademark infringement or misappropriation claim asserted by a third party with respect to our equipment or services. The maximum potential amount of future payments we could be required to make under these indemnification agreements is uncertain and is typically not limited by the terms of the agreements.

Fair Value of Financial Assets and Liabilities

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets and Liabilities

12. Fair Value of Financial Assets and Liabilities

A three-tier fair value hierarchy has been established which prioritizes the inputs used in measuring fair value. These tiers include:

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Level 1 - defined as observable inputs such as quoted prices in active markets;

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Level 2 - defined as observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

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Level 3 - defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Long-Term Debt:

Our financial assets and liabilities that are disclosed but not measured at fair value include the Senior Secured Notes and the Convertible Notes, which are reflected on the unaudited condensed consolidated balance sheet at cost. The fair value measurements are classified as Level 2 within the fair value hierarchy since they are based on quoted market prices of our instruments in markets that are not active. We estimated the fair value of the Senior Secured Notes and Convertible Notes by calculating the upfront cash payment a market participant would require to assume these obligations. The upfront cash payment used in the calculations of fair value on our September 30, 2017 unaudited condensed consolidated balance sheet, excluding any issuance costs, is the amount that a market participant would be willing to lend at September 30, 2017 to an entity with a credit rating similar to ours and achieve sufficient cash inflows to cover the scheduled cash outflows under the Senior Secured Notes and the Convertible Notes. The calculated fair value of our Convertible Notes is highly correlated to our stock price and as a result significant changes to our stock price could have a significant impact on the calculated fair value of our Convertible Notes.

The fair value and carrying value of long-term debt as of September 30, 2017 and December 31, 2016 were as follows (in thousands):


	September 30, 2017					December 31, 2016
	Fair Value ⁽¹⁾		Carrying Value			Fair Value ⁽¹⁾		Carrying Value
Senior Secured Notes	$	788,000	$	706,277	⁽²⁾	$	572,000	$	525,000
Convertible Notes		333,000		306,462	⁽³⁾		275,000		292,024	⁽³⁾

(1)	Fair value amounts are rounded to the nearest million.

(2)	Carrying value of the Senior Secured Notes includes unamortized debt premium and Consent Fees of $16.3 million as of September 30, 2017. See Note 8, “Long-Term Debt and Other Liabilities,” for further information.

(3)	Carrying value of the Convertible Notes excludes unamortized debt discount of $55.4 million and $69.9 million, respectively, as of September 30, 2017 and December 31, 2016. See Note 8, “Long-Term Debt and Other Liabilities,” for further information.

We have held-to-maturity financial instruments where carrying value approximates fair value. There were no fair value adjustments to these financial instruments during 2017 and 2016.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Income Tax	9 Months Ended
Income Tax	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income Tax	13. Income Tax The effective income tax rates for the three and nine month periods ended September 30, 2017 was (0.8%) and (0.7%), respectively, and (1.4%) and (1.0%), respectively, for the prior year periods. Income tax expense recorded in each period was similar, with differences in pre-tax income causing the change in the effective tax rate. The difference between our effective tax rates and the U.S. federal statutory rate of 35% for the three and nine month periods ended September 30, 2017 and 2016 was primarily due to the recording of a valuation allowance against our net deferred tax assets. We are subject to income taxation in the United States, various states within the United States, Canada, Switzerland, Japan, Mexico, Brazil, Singapore, the United Kingdom, Hong Kong, Australia, China, France and Germany. With few exceptions, as of September 30, 2017, we are no longer subject to U.S. federal, state, local or foreign examinations by tax authorities for years before 2013. We record penalties and interest relating to uncertain tax positions in the income tax provision line item in the unaudited condensed consolidated statement of operations. No penalties or interest related to uncertain tax positions were recorded for the three and nine month periods ended September 30, 2017 and 2016. As of September 30, 2017 and December 31, 2016, we did not have a liability recorded for interest or potential penalties. We do not expect a change in the unrecognized tax benefits within the next 12 months.

Business Segments and Major Customers

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Business Segments and Major Customers

14. Business Segments and Major Customers

We operate our business through three operating segments: Commercial Aviation North America, or “CA-NA”, Commercial Aviation Rest of World, or “CA-ROW,” and Business Aviation, or “BA”. See Note 1, “Basis of Presentation,” for further information regarding our segments.

The accounting policies of the operating segments are the same as those described in Note 2, “Summary of Significant Accounting Policies,” in our 2016 10-K. Intercompany transactions between segments are excluded as they are not included in management’s performance review of the segments. We currently do not generate a material amount of foreign revenue. We do not segregate assets between segments for internal reporting. Therefore, asset-related information has not been presented. We do not disclose assets outside of the United States as these assets are not material as of September 30, 2017 and December 31, 2016. For our airborne assets, we consider only those assets installed in aircraft associated with international commercial airline partners to be owned outside of the United States.

Management evaluates performance and allocates resources to each segment based on segment profit (loss), which is calculated internally as net income (loss) attributable to common stock before interest expense, interest income, income taxes, depreciation and amortization, certain non-cash charges (including amortization of deferred airborne lease incentives, stock-based compensation expense and adjustment to deferred financing costs) and other income (expense). Segment profit (loss) is a measure of performance reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and evaluating segment performance. In addition, segment profit (loss) is included herein in conformity with ASC 280-10, Segment Reporting. Management believes that segment profit (loss) provides useful information for analyzing and evaluating the underlying operating results of each segment. However, segment profit (loss) should not be considered in isolation or as a substitute for net income (loss) attributable to common stock or other measures of financial performance prepared in accordance with GAAP. Additionally, our computation of segment profit (loss) may not be comparable to other similarly titled measures computed by other companies.

Information regarding our reportable segments is as follows (in thousands):


	For the Three Months Ended
	September 30, 2017
	CA-NA		CA-ROW			BA		Total
Service revenue	$	94,436	$	15,687		$	43,224	$	153,347
Equipment revenue		1,291		953			17,283		19,527

Total revenue	$	95,727	$	16,640		$	60,507	$	172,874

Segment profit (loss)	$	15,966	$	(24,110	)	$	21,329	$	13,185


	For the Three Months Ended
	September 30, 2016
	CA-NA		CA-ROW			BA		Total
Service revenue	$	88,534	$	7,235		$	33,330	$	129,099
Equipment revenue		2,191		360			15,617		18,168

Total revenue	$	90,725	$	7,595		$	48,947	$	147,267

Segment profit (loss)	$	14,509	$	(19,924	)	$	20,655	$	15,240


	For the Nine Months Ended
	September 30, 2017
	CA-NA		CA-ROW			BA		Total
Service revenue	$	290,260	$	38,243		$	125,415	$	453,918
Equipment revenue		5,234		2,756			49,172		57,162

Total revenue	$	295,494	$	40,999		$	174,587	$	511,080

Segment profit (loss)	$	43,316	$	(82,068	)	$	72,646	$	33,894


	For the Nine Months Ended
	September 30, 2016
	CA-NA		CA-ROW			BA		Total
Service revenue	$	261,751	$	17,213		$	96,442	$	375,406
Equipment revenue		8,708		731			51,707		61,146

Total revenue	$	270,459	$	17,944		$	148,149	$	436,552

Segment profit (loss)	$	46,966	$	(62,945	)	$	59,895	$	43,916

A reconciliation of segment profit (loss) to the relevant consolidated amounts is as follows (in thousands):


	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2017			2016			2017			2016
CA-NA segment profit	$	15,966		$	14,509		$	43,316		$	46,966
CA-ROW segment loss		(24,110	)		(19,924	)		(82,068	)		(62,945	)
BA segment profit		21,329			20,655			72,646			59,895

Total segment profit		13,185			15,240			33,894			43,916
Interest income		683			852			1,999			1,064
Interest expense		(27,585	)		(24,848	)		(81,754	)		(58,701	)
Depreciation and amortization		(35,824	)		(26,779	)		(96,821	)		(76,042	)
Amortization of deferred airborne lease incentives ⁽¹⁾		10,121			7,765			28,099			20,650
Stock-based compensation expense		(5,283	)		(5,000	)		(15,007	)		(12,986	)
Adjustment to deferred financing costs		—			—			—			792
Loss of extinguishment of debt		—			—			—			(15,406	)
Other income (expense)		(228	)		(34	)		(322	)		137

Loss before income taxes	$	(44,931	)	$	(32,804	)	$	(129,912	)	$	(96,576	)

(1)

Amortization of deferred airborne lease incentive relates to our CA-NA and CA-ROW segments. See Note 10, “Leases,” for further information.

Major Customers and Airline Partnerships — During the three and nine month periods ended September 30, 2017 and 2016, no customer accounted for more than 10% of our consolidated revenue. One airline partner, under the Turnkey model, accounted for approximately 19% and 18% of consolidated accounts receivable as of September 30, 2017 and December 31, 2016, respectively. Two customers, under the Airline Directed model, collectively accounted for approximately 22% of consolidated accounts receivable as of September 30, 2017 while no customer accounted for more than 10% of consolidated accounts receivable as of December 31, 2016.

Revenue earned through Delta Air Lines and American Airlines accounted for approximately 47% of consolidated revenue for both the three and nine month periods ended September 30, 2017, and 50% for both the prior year periods.

Employee Retirement and Postretirement Benefits

9 Months Ended

Sep. 30, 2017

Text Block [Abstract]

Employee Retirement and Postretirement Benefits

15. Employee Retirement and Postretirement Benefits

Stock-Based Compensation — As of September 30, 2017, we had three stock-based employee compensation plans (“Stock Plans”). See Note 11, “Stock-Based Compensation,” in our 2016 10-K for further information regarding these plans. Most of our equity grants are awarded on an annual basis. The annual grants occurred in the first quarter of 2017 whereas they had occurred in the second quarter in prior years.

For the nine month period ended September 30, 2017, options to purchase 1,992,595 shares of common stock (of which 527,850 are options that contain a market condition, in addition to the time-based vesting requirements) were granted, options to purchase 48,662 shares of common stock were exercised, options to purchase 315,140 (of which 33,620 options contain a market condition) shares of common stock were forfeited, and options to purchase 265,024 shares of common stock expired.

For the nine month period ended September 30, 2017, 875,166 Restricted Stock Units (“RSUs”) (of which 228,840 are RSUs that contain a market condition, in addition to the time-based vesting requirements) were granted, 368,506 RSUs vested and 196,167 RSUs (of which 27,940 contained a market condition) were forfeited.

For the nine month period ended September 30, 2017, 92,910 shares of restricted stock were granted and 98,988 shares vested. These shares are deemed issued as of the date of grant, but not outstanding until they vest.

For the nine month period ended September 30, 2017, 60,972 DSUs were granted and none were released.

For the nine month period ended September 30, 2017, 117,471 shares of common stock were issued under the employee stock purchase plan.

The following is a summary of our stock-based compensation expense by operating expense line in the unaudited condensed consolidated statements of operations (in thousands):


	For the Three Months				For the Nine Months
	Ended September 30,				Ended September 30,
	2017		2016		2017		2016
Cost of service revenue	$	542	$	446	$	1,332	$	1,142
Cost of equipment revenue		49		34		136		78
Engineering, design and development		897		970		2,801		2,432
Sales and marketing		1,305		1,498		3,473		3,799
General and administrative		2,490		2,052		7,265		5,535

Total stock-based compensation expense	$	5,283	$	5,000	$	15,007	$	12,986

401(k) Plan — Under our 401(k) plan, all employees who are eligible to participate are entitled to make tax-deferred contributions, subject to Internal Revenue Service limitations. We match 100% of the employee’s first 4% of contributions made, subject to annual limitations. Our matching contributions were $1.2 million and $4.0 million, respectively, for the three and nine month periods ended September 30, 2017, and $1.1 million and $3.1 million, respectively, for the prior year periods.

Research and Development Costs	9 Months Ended
Research and Development Costs	Sep. 30, 2017
Research and Development [Abstract]
Research and Development Costs	16. Research and Development Costs Expenditures for research and development are charged to expense as incurred and totaled $18.6 million and $57.9 million, respectively, for the three and nine month periods ended September 30, 2017, and $11.8 million and $34.5 million, respectively, for the prior year periods. Research and development costs are reported as a component of engineering, design and development expenses in our unaudited condensed consolidated statements of operations.

Canadian ATG Spectrum License

9 Months Ended

Sep. 30, 2017

Text Block [Abstract]

Canadian ATG Spectrum License

17. Canadian ATG Spectrum License

On July 17, 2012, Industry Canada issued to our Canadian subsidiary a subordinate license that allows us to use the Canadian ATG spectrum of which SkySurf Canada Communications Inc. (“SkySurf”) is the primary licensee. On July 24, 2012 we entered into a subordinate license agreement (the “License Agreement”) with SkySurf and on August 14, 2012 the agreement commenced. The License Agreement provides for our exclusive rights to use SkySurf’s ATG spectrum licenses in Canada. For additional information, see Note 16, “Canadian ATG Spectrum License,” in our 2016 10-K.

Amortization expense for the one-time payment for each of the next five years and thereafter is estimated to be as follows (in thousands):


	Canadian ATG Spectrum
Years ending December 31,	Amortization
2017 (period from October 1 to December 31)	$	26
2018	$	104
2019	$	104
2020	$	104
2021	$	104
Thereafter	$	1,632

Amortization expense totaled less than $0.1 million during the three month periods ended September 30, 2017 and 2016 and $0.1 million during the nine month periods ended September 30, 2017 and 2016.

The monthly payments are expensed as incurred and totaled approximately $0.3 million and $0.9 million, respectively, during the three and nine month periods ended September 30, 2017, and $0.3 million and $0.9 million, respectively, for the prior year periods.

Basis of Presentation (Policies)	9 Months Ended
Basis of Presentation (Policies)	Sep. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	*The Business—Gogo Inc. (“we”, “us”, “our”) is a holding company, which through its operating subsidiaries is a provider of in-flight connectivity and wireless in-cabin digital entertainment solutions. We operate through the following three segments: Commercial Aviation North America or “CA-NA”, Commercial Aviation Rest of World or “CA-ROW” and Business Aviation or “BA”. Services provided by our CA-NA and CA-ROW businesses include Passenger Connectivity, which allows passengers to connect to the Internet from their personal Wi-Fi-enabled devices; Passenger Entertainment, which offers passengers the opportunity to enjoy a broad selection of in-flight entertainment options on their personal Wi-Fi-enabled devices; and Connected Aircraft Services (“CAS”), which offers airlines connectivity for various operations and currently include, among others, real-time credit card transaction processing, electronic flight bags and real-time weather information. Services are provided by CA-NA on commercial aircraft flying routes that generally begin and end within North America, which for this purpose includes the United States, Canada and Mexico. CA-ROW provides service on commercial aircraft operated by foreign-based commercial airlines and flights outside of North America for North American-based commercial airlines. The routes included in our CA-ROW segment are those that begin and/or end outside of North America (as defined above) on which our international service is provided. BA provides in-flight Internet connectivity and other voice and data communications products and services and sells equipment for in-flight telecommunications to the business aviation market. BA services include Gogo Biz, our in-flight broadband service, Passenger Entertainment, our in-flight entertainment service, and satellite-based voice and data services through our strategic alliances with satellite companies. Basis of Presentation*—The accompanying unaudited condensed consolidated financial statements and notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conformity with Article 10 of Regulation S-X promulgated under the Securities Act of 1933, as amended (the “Securities Act”). Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements and should be read in conjunction with our annual audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016 as filed with the Securities and Exchange Commission (“SEC”) on February 27, 2017 (the “2016 10-K”). These unaudited condensed consolidated financial statements reflect, in the opinion of management, all material adjustments (which include normal recurring adjustments) necessary to fairly state, in all material respects, our financial position, results of operations and cash flows for the periods presented. The results of operations and cash flows for the nine month period ended September 30, 2017 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2017. We have one class of common stock outstanding as of September 30, 2017 and December 31, 2016.
Use of Estimates	*Use of Estimates*—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, management evaluates the significant estimates and bases such estimates on historical experience and on various other assumptions believed to be reasonable under the circumstances. However, actual results could differ materially from those estimates. Under agreements with certain of our airline partners to upgrade our equipment on certain aircraft or decommission certain aircraft on which our equipment is installed, on a quarterly basis we reassess the useful life of the affected equipment. As a result, we shorten the useful lives of the affected equipment to be consistent with the estimated upgrade date or aircraft decommissioning date, as applicable. We also shorten the remaining amortization period for deferred airborne lease incentives for certain equipment on aircraft to be decommissioned. The change in estimated useful lives related to these events resulted in increases in depreciation expense of $8.6 million and $14.9 million, respectively, in the three and nine month periods ended September 30, 2017 and increases in the amortization of deferred airborne lease incentives, which reduced our cost of service revenue, of $1.3 million and $3.5 million, respectively, in the three and nine month periods ended September 30, 2017. As a result, net loss per basic and fully diluted share increased by $0.09 and $0.14, respectively, for the three and nine month periods ended September 30, 2017.

Net Loss Per Share (Tables)

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share


	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2017			2016			2017			2016
Net loss	$	(45,281	)	$	(33,273	)	$	(130,857	)	$	(97,573	)
Less: Participation rights of the Forward Transactions		—			—			—			—

Undistributed losses	$	(45,281	)	$	(33,273	)	$	(130,857	)	$	(97,573	)

Weighted-average common shares outstanding-basic and diluted		79,543			79,003			79,340			78,864

Net loss attributable to common stock per share-basic and diluted	$	(0.57	)	$	(0.42	)	$	(1.65	)	$	(1.24	)

Inventories (Tables)

9 Months Ended

Sep. 30, 2017

Inventory Disclosure [Abstract]

Components of Inventories Included within BA Segment

Inventories as of September 30, 2017 and December 31, 2016, all of which were included within the BA segment, were as follows (in thousands):


	September 30,		December 31,
	2017		2016
Work-in-process component parts	$	37,462	$	39,150
Finished goods		11,159		11,116

Total inventory	$	48,621	$	50,266

Composition of Certain Balance Sheet Accounts (Tables)

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Property and Equipment

Property and equipment as of September 30, 2017 and December 31, 2016 were as follows (in thousands):


	September 30,			December 31,
	2017			2016
Office equipment, furniture, fixtures and other	$	45,230		$	49,529
Leasehold improvements		42,413			42,143
Airborne equipment		702,414			557,196
Network equipment		186,650			168,121

		976,707			816,989
Accumulated depreciation		(362,396	)		(297,179	)

Property and equipment, net	$	614,311		$	519,810

Schedule of Other Non-Current Assets

Other non-current assets as of September 30, 2017 and December 31, 2016 were as follows (in thousands):


	September 30,		December 31,
	2017		2016
Deferred cost of equipment revenue	$	40,493	$	14,159
Deposits on satellite and airborne equipment		8,371		10,800
Other		9,644		3,129

Total other non-current assets	$	58,508	$	28,088

Accrued Liabilities

Accrued liabilities as of September 30, 2017 and December 31, 2016 were as follows (in thousands):


	September 30,		December 31,
	2017		2016
Employee compensation and benefits	$	23,831	$	21,008
Airborne equipment and installation costs		35,459		22,442
Airborne partner related accrued liabilities		16,226		14,307
Accrued interest		22,694		40,436
Other		50,054		33,862

Total accrued liabilities	$	148,264	$	132,055

Other Non-Current Liabilities

Other non-current liabilities as of September 30, 2017 and December 31, 2016 were as follows (in thousands):


	September 30,		December 31,
	2017		2016
Deferred revenue	$	67,048	$	38,976
Deferred rent		37,101		36,538
Asset retirement obligations		9,935		8,527
Other		9,114		6,627

Total other non-current liabilities	$	123,198	$	90,668

Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets, Other than Goodwill

Our intangible assets, other than goodwill, as of September 30, 2017 and December 31, 2016 were as follows (in thousands, except for weighted average remaining useful life):


	Weighted
	Average		As of September 30, 2017							As of December 31, 2016
	Remaining		Gross					Net		Gross					Net
	Useful Life		Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
	(in years)		Amount		Amortization			Amount		Amount		Amortization			Amount
Amortized intangible assets:
Software		2.2	$	140,818	$	(85,490	)	$	55,328	$	118,836	$	(70,127	)	$	48,709
Service customer relationship		2.5		8,081		(5,534	)		2,547		8,081		(4,773	)		3,308
Other intangible assets		1.3		1,500		(997	)		503		1,500		(682	)		818
OEM and dealer relationships				6,724		(6,724	)		—		6,724		(6,667	)		57

Total amortized intangible assets				157,123		(98,745	)		58,378		135,141		(82,249	)		52,892
Unamortized intangible assets:
FCC Licenses				32,283		—			32,283		32,283		—			32,283

Total intangible assets			$	189,406	$	(98,745	)	$	90,661	$	167,424	$	(82,249	)	$	85,175

Summary of Amortization Expenses

Amortization expense for each of the next five years and thereafter is estimated to be as follows (in thousands):


	Amortization
Years ending December 31,	Expense
2017 (period from October 1 to December 31)	$	7,137
2018	$	24,284
2019	$	14,427
2020	$	8,382
2021	$	2,425
Thereafter	$	1,723

Long-Term Debt and Other Liabilities (Tables)

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

Long-term debt as of September 30, 2017 and December 31, 2016 was as follows (in thousands):


	September 30,			December 31,
	2017			2016
Senior Secured Notes	$	706,277		$	525,000
Convertible Notes		306,462			292,024

Total debt		1,012,739			817,024
Less deferred financing costs		(17,193	)		(16,309	)

Total long-term debt	$	995,546		$	800,715

Summary of Redemption Prices Plus Accrued and Unpaid Interest

The Senior Secured Notes will be redeemable at the following redemption prices (expressed in percentages of principal amount), plus accrued and unpaid interest, if any, to (but not including) the redemption date (subject to the right of holders of record on the relevant regular record date on or prior to the redemption date to receive interest due on an interest payment date), if redeemed during the twelve-month period commencing on July 1 of the following years:


	Redemption
Year	Price
2019		106.250	%
2020		103.125	%
2021 and thereafter		100.000	%

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Section S99
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Subparagraph (SX 210.4-08.(e),(f))
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-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details

Interest Costs (Tables)

9 Months Ended

Sep. 30, 2017

Text Block [Abstract]

Summary of Interest Costs

The following is a summary of our interest costs for the three and nine month periods ended September 30, 2017 and 2016 (in thousands):


	For the Three Months					For the Nine Months
	Ended September 30,					Ended September 30,
	2017			2016		2017			2016
Interest costs charged to expense	$	21,936		$	19,598	$	65,164		$	42,780
Amortization of deferred financing costs		919			818		2,718			2,981
Accretion of debt discount on Convertible Notes		4,945			4,432		14,438			12,940
Amortization of debt premium on Senior Secured Notes		(215	)		—		(566	)		—

Interest expense		27,585			24,848		81,754			58,701
Interest costs capitalized to property and equipment		9			34		15			187
Interest costs capitalized to software		193			279		804			961

Total interest costs	$	27,787		$	25,161	$	82,573		$	59,849

Leases (Tables)

9 Months Ended

Sep. 30, 2017

Leases [Abstract]

Annual Future Minimum Obligations for Operating Leases Other than Arrangements with Commercial Airline Partners


	Operating
Years ending December 31,	Leases
2017 (period from October 1 to December 31)	$	5,005
2018	$	18,832
2019	$	17,765
2020	$	15,718
2021	$	15,478
Thereafter	$	95,693

Annual Future Minimum Obligations under Capital Leases

Annual future minimum obligations under capital leases for each of the next five years and thereafter, as of September 30, 2017, are as follows (in thousands):


	Capital
Years ending December 31,	Leases
2017 (period from October 1 to December 31)	$	947
2018		2,030
2019		1,016
2020		34
Thereafter		—

Total minimum lease payments		4,027
Less: Amount representing interest		(401	)

Present value of net minimum lease payments	$	3,626

Fair Value of Financial Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Summary of Fair Value and Carrying Value of Long-Term Debt

The fair value and carrying value of long-term debt as of September 30, 2017 and December 31, 2016 were as follows (in thousands):


	September 30, 2017					December 31, 2016
	Fair Value ⁽¹⁾		Carrying Value			Fair Value ⁽¹⁾		Carrying Value
Senior Secured Notes	$	788,000	$	706,277	⁽²⁾	$	572,000	$	525,000
Convertible Notes		333,000		306,462	⁽³⁾		275,000		292,024	⁽³⁾

(1)	Fair value amounts are rounded to the nearest million.

(2)	Carrying value of the Senior Secured Notes includes unamortized debt premium and Consent Fees of $16.3 million as of September 30, 2017. See Note 8, “Long-Term Debt and Other Liabilities,” for further information.

(3)	Carrying value of the Convertible Notes excludes unamortized debt discount of $55.4 million and $69.9 million, respectively, as of September 30, 2017 and December 31, 2016. See Note 8, “Long-Term Debt and Other Liabilities,” for further information.

Business Segments and Major Customers (Tables)

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Summary of Reportable Segments

Information regarding our reportable segments is as follows (in thousands):


	For the Three Months Ended
	September 30, 2017
	CA-NA		CA-ROW			BA		Total
Service revenue	$	94,436	$	15,687		$	43,224	$	153,347
Equipment revenue		1,291		953			17,283		19,527

Total revenue	$	95,727	$	16,640		$	60,507	$	172,874

Segment profit (loss)	$	15,966	$	(24,110	)	$	21,329	$	13,185


	For the Three Months Ended
	September 30, 2016
	CA-NA		CA-ROW			BA		Total
Service revenue	$	88,534	$	7,235		$	33,330	$	129,099
Equipment revenue		2,191		360			15,617		18,168

Total revenue	$	90,725	$	7,595		$	48,947	$	147,267

Segment profit (loss)	$	14,509	$	(19,924	)	$	20,655	$	15,240


	For the Nine Months Ended
	September 30, 2017
	CA-NA		CA-ROW			BA		Total
Service revenue	$	290,260	$	38,243		$	125,415	$	453,918
Equipment revenue		5,234		2,756			49,172		57,162

Total revenue	$	295,494	$	40,999		$	174,587	$	511,080

Segment profit (loss)	$	43,316	$	(82,068	)	$	72,646	$	33,894


	For the Nine Months Ended
	September 30, 2016
	CA-NA		CA-ROW			BA		Total
Service revenue	$	261,751	$	17,213		$	96,442	$	375,406
Equipment revenue		8,708		731			51,707		61,146

Total revenue	$	270,459	$	17,944		$	148,149	$	436,552

Segment profit (loss)	$	46,966	$	(62,945	)	$	59,895	$	43,916

Reconciliation of Segment Profit (loss)

A reconciliation of segment profit (loss) to the relevant consolidated amounts is as follows (in thousands):


	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2017			2016			2017			2016
CA-NA segment profit	$	15,966		$	14,509		$	43,316		$	46,966
CA-ROW segment loss		(24,110	)		(19,924	)		(82,068	)		(62,945	)
BA segment profit		21,329			20,655			72,646			59,895

Total segment profit		13,185			15,240			33,894			43,916
Interest income		683			852			1,999			1,064
Interest expense		(27,585	)		(24,848	)		(81,754	)		(58,701	)
Depreciation and amortization		(35,824	)		(26,779	)		(96,821	)		(76,042	)
Amortization of deferred airborne lease incentives ⁽¹⁾		10,121			7,765			28,099			20,650
Stock-based compensation expense		(5,283	)		(5,000	)		(15,007	)		(12,986	)
Adjustment to deferred financing costs		—			—			—			792
Loss of extinguishment of debt		—			—			—			(15,406	)
Other income (expense)		(228	)		(34	)		(322	)		137

Loss before income taxes	$	(44,931	)	$	(32,804	)	$	(129,912	)	$	(96,576	)

(1)

Amortization of deferred airborne lease incentive relates to our CA-NA and CA-ROW segments. See Note 10, “Leases,” for further information.

Employee Retirement and Postretirement Benefits (Tables)

9 Months Ended

Sep. 30, 2017

Text Block [Abstract]

Summary of Stock-Based Compensation Expense by Operating Expense

The following is a summary of our stock-based compensation expense by operating expense line in the unaudited condensed consolidated statements of operations (in thousands):


	For the Three Months				For the Nine Months
	Ended September 30,				Ended September 30,
	2017		2016		2017		2016
Cost of service revenue	$	542	$	446	$	1,332	$	1,142
Cost of equipment revenue		49		34		136		78
Engineering, design and development		897		970		2,801		2,432
Sales and marketing		1,305		1,498		3,473		3,799
General and administrative		2,490		2,052		7,265		5,535

Total stock-based compensation expense	$	5,283	$	5,000	$	15,007	$	12,986

Canadian ATG Spectrum License (Tables)

9 Months Ended

Sep. 30, 2017

Text Block [Abstract]

Summary of Amortization Expense

Amortization expense for the one-time payment for each of the next five years and thereafter is estimated to be as follows (in thousands):


	Canadian ATG Spectrum
Years ending December 31,	Amortization
2017 (period from October 1 to December 31)	$	26
2018	$	104
2019	$	104
2020	$	104
2021	$	104
Thereafter	$	1,632

Basis of Presentation - Additional Information (Detail) $ / shares in Units, $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2017 USD ($) $ / shares	Sep. 30, 2017 USD ($) Segment ClassOfCommonStock $ / shares	Dec. 31, 2016 ClassOfCommonStock
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments \| Segment		3
Number of class of common stock outstanding \| ClassOfCommonStock		1	1
Increases in depreciation expense	$ 8.6	$ 14.9
Decrease in cost of service revenue	$ (1.3)	$ (3.5)
Increase in net loss per basic and fully diluted share \| $ / shares	$ 0.09	$ 0.14

Net Loss Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Net loss	$ (45,281)	$ (33,273)	$ (130,857)	$ (97,573)
Less: Participation rights of the Forward Transactions	0	0	0	0
Net loss attributable to common stock	$ (45,281)	$ (33,273)	$ (130,857)	$ (97,573)
Weighted-average common shares outstanding-basic and diluted	79,543	79,003	79,340	78,864
Net loss attributable to common stock per share-basic and diluted	$ (0.57)	$ (0.42)	$ (1.65)	$ (1.24)

Inventories - Components of Inventories Included within BA Segment (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Work-in-process component parts	$ 37,462	$ 39,150
Finished goods	11,159	11,116
Total inventory	$ 48,621	$ 50,266

Composition of Certain Balance Sheet Accounts - Property and Equipment (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 976,707	$ 816,989
Accumulated depreciation	(362,396)	(297,179)
Property and equipment, net	614,311	519,810
Office Equipment, Furniture, Fixtures and Other [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	45,230	49,529
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	42,413	42,143
Airborne Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	702,414	557,196
Network Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 186,650	$ 168,121

Composition of Certain Balance Sheet Accounts - Schedule of Other Non-Current Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Other Assets, Noncurrent [Abstract]
Deferred cost of equipment revenue	$ 40,493	$ 14,159
Deposits on satellite and airborne equipment	8,371	10,800
Other	9,644	3,129
Total other non-current assets	$ 58,508	$ 28,088

Composition of Certain Balance Sheet Accounts - Accrued Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Accrued Liabilities, Current [Abstract]
Employee compensation and benefits	$ 23,831	$ 21,008
Airborne equipment and installation costs	35,459	22,442
Airborne partner related accrued liabilities	16,226	14,307
Accrued interest	22,694	40,436
Other	50,054	33,862
Total accrued liabilities	$ 148,264	$ 132,055

Composition of Certain Balance Sheet Accounts - Other Non-Current Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Other Liabilities, Noncurrent [Abstract]
Deferred revenue	$ 67,048	$ 38,976
Deferred rent	37,101	36,538
Asset retirement obligations	9,935	8,527
Other	9,114	6,627
Total other non-current liabilities	$ 123,198	$ 90,668

- Definition

The noncurrent portion of deferred revenue amount as of balance sheet date. Deferred revenue is a liability related to a revenue producing activity for which revenue has not yet been recognized, and is not expected to be recognized in the next twelve months. Generally, an entity records deferred revenue when it receives consideration from a customer before achieving certain criteria that must be met for revenue to be recognized in conformity with GAAP.

+ References + Details

Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 620		$ 620		$ 620
Amortization expense	$ 4,900	$ 6,000	$ 16,500	$ 15,800

Intangible Assets - Schedule of Intangible Assets, Other than Goodwill (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Intangible Assets Net Excluding Goodwill [Line Items]
Total intangible assets, Gross Carrying Amount	$ 189,406	$ 167,424
Amortized intangible assets, Gross Carrying Amount	157,123	135,141
Amortized intangible assets, Accumulated Amortization	(98,745)	(82,249)
Amortized intangible assets, Net Carrying Amount	58,378	52,892
Total intangible assets, Net Carrying Amount	90,661	85,175
FCC Licenses [Member]
Intangible Assets Net Excluding Goodwill [Line Items]
Total unamortized intangible assets, Gross Carrying Amount	32,283	32,283
Total unamortized intangible assets, Net Carrying Amount	$ 32,283	32,283
Software [Member]
Intangible Assets Net Excluding Goodwill [Line Items]
Weighted Average Remaining Useful Life (in years)	2 years 2 months 12 days
Amortized intangible assets, Gross Carrying Amount	$ 140,818	118,836
Amortized intangible assets, Accumulated Amortization	(85,490)	(70,127)
Amortized intangible assets, Net Carrying Amount	$ 55,328	48,709
Service Customer Relationships [Member]
Intangible Assets Net Excluding Goodwill [Line Items]
Weighted Average Remaining Useful Life (in years)	2 years 6 months
Amortized intangible assets, Gross Carrying Amount	$ 8,081	8,081
Amortized intangible assets, Accumulated Amortization	(5,534)	(4,773)
Amortized intangible assets, Net Carrying Amount	$ 2,547	3,308
Other Intangible Assets [Member]
Intangible Assets Net Excluding Goodwill [Line Items]
Weighted Average Remaining Useful Life (in years)	1 year 3 months 19 days
Amortized intangible assets, Gross Carrying Amount	$ 1,500	1,500
Amortized intangible assets, Accumulated Amortization	(997)	(682)
Amortized intangible assets, Net Carrying Amount	503	818
OEM and Dealer Relationships [Member]
Intangible Assets Net Excluding Goodwill [Line Items]
Amortized intangible assets, Gross Carrying Amount	6,724	6,724
Amortized intangible assets, Accumulated Amortization	$ (6,724)	(6,667)
Amortized intangible assets, Net Carrying Amount		$ 57

Intangible Assets - Summary of Amortization Expenses (Detail) $ in Thousands	Sep. 30, 2017 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2017 (period from October 1 to December 31)	$ 7,137
2018	24,284
2019	14,427
2020	8,382
2021	2,425
Thereafter	$ 1,723

Warranties - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Guarantor Obligations [Line Items]
Warranty reserve balance	$ 2.7	$ 2.6
Maximum [Member]
Guarantor Obligations [Line Items]
Warranty term	5 years
Minimum [Member]
Guarantor Obligations [Line Items]
Warranty term	2 years

Long-Term Debt and Other Liabilities - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Mar. 03, 2015
Debt Instrument [Line Items]
Total debt	$ 1,012,739	$ 817,024
Less deferred financing costs	(17,193)	(16,309)
Total long-term debt	995,546	800,715
3.75% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Convertible Notes	306,462	292,024	$ 261,900
12.500% Senior Secured Notes Due 2022 [Member]
Debt Instrument [Line Items]
Senior Secured Notes	$ 706,277	$ 525,000

Long-Term Debt and Other Liabilities - Additional Information (Detail) $ / shares in Units, shares in Millions						3 Months Ended		9 Months Ended
	Sep. 25, 2017 USD ($)	Sep. 20, 2017 USD ($)	Jan. 03, 2017 USD ($)	Jun. 14, 2016 USD ($)	Mar. 03, 2015 USD ($) $ / shares shares	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) Trading_day shares	Sep. 30, 2016 USD ($) shares	Sep. 19, 2017 USD ($)	Dec. 31, 2016 USD ($)
Debt Instrument [Line Items]
Proceeds from issuance of debt								$ 181,843,000	$ 525,000,000
Total debt						$ 1,012,739,000		1,012,739,000			$ 817,024,000
Amortization of deferred financing costs						919,000	$ 818,000	2,718,000	$ 2,981,000
Additional paid-in-capital						893,713,000		$ 893,713,000			879,135,000
Forward stock repurchase transactions amount					$ 140,000,000
Forward stock repurchase transaction, shares \| shares								7.2	7.2
Letters of Credit [Member]
Debt Instrument [Line Items]
Restricted cash						7,400,000		$ 7,400,000			7,900,000
Convertible Notes [Member]
Debt Instrument [Line Items]
Forward stock repurchase transaction, shares \| shares					7.2
Forward stock repurchase transaction, settlement date					Mar. 01, 2020
12.500% Senior Secured Notes Due 2022 [Member]
Debt Instrument [Line Items]
Aggregate principal amount				$ 525,000,000
Interest rate				12.50%
Unamortized debt premium and consent fees						16,300,000		$ 16,300,000
Interest rate payable term								Semi-annually
Maturity date								Jul. 01, 2022
Loan origination fees								$ 11,400,000
Amortization of deferred financing costs						500,000	400,000	1,600,000	$ 500,000
Debt issuance costs						13,200,000		$ 13,200,000			11,200,000
12.500% Senior Secured Notes Due 2022 [Member] \| Condition One [Member]
Debt Instrument [Line Items]
Debt instrument redemption price percentage of principal amount redeemed								35.00%
Debt instrument redemption price, percentage								112.50%
Outstanding redemption percentage								65.00%
12.500% Senior Secured Notes Due 2022 [Member] \| Condition Two [Member]
Debt Instrument [Line Items]
Debt instrument redemption price, percentage				100.00%
12.500% Senior Secured Notes Due 2022 [Member] \| Condition Three [Member]
Debt Instrument [Line Items]
Debt instrument redemption price, percentage				101.00%
12.500% Senior Secured Notes Due 2022 [Member] \| Additional Notes [Member] \| January Two Thousand And Seventeen Additional Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount			$ 65,000,000
Issue price as percentage of face value			108.00%
Proceeds from issuance of debt			$ 70,200,000
Loan origination fees								$ 2,000,000
12.500% Senior Secured Notes Due 2022 [Member] \| Additional Notes [Member] \| September Two Thousand And Seventeen Additional Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount	$ 100,000,000
Issue price as percentage of face value	113.00%
Proceeds from issuance of debt	$ 113,000,000
Accrued interest received	$ 2,900,000
Loan origination fees								2,500,000
12.500% Senior Secured Notes Due 2022 [Member] \| Supplemental Indenture [Member]
Debt Instrument [Line Items]
Aggregate principal amount		$ 175,000,000								$ 75,000,000
Increase in debt amount		100,000,000
Additional secured indebtedness		50,000,000
Additional dividends		15,000,000
Consent fees paid		$ 1,400,000
3.75% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount					$ 361,900,000	361,900,000		$ 361,900,000			361,900,000
Interest rate					3.75%
Interest rate payable term								Semi-annually
Maturity date					Mar. 01, 2020
Amortization of deferred financing costs						400,000	$ 400,000	$ 1,100,000	1,000,000
Debt issuance costs						4,000,000		4,000,000			5,100,000
Debt instrument redemption price, percentage					100.00%
Option granted to initial purchasers					$ 60,000,000
Additional paid-in-capital					100,000,000
Convertible Notes, carrying amount of liability component					261,900,000	$ 306,462,000		$ 306,462,000			292,024,000
Effective interest rate on convertible notes						11.50%		11.50%
Proceeds received from the issuance of the convertible notes					$ 361,900,000
Convertible Notes, unamortized discount						$ 55,400,000		$ 55,400,000			69,900,000
Conversion rate					41.9274
Principal amount					$ 1,000
Conversion price \| $ / shares					$ 23.85
Multiples of principal amount					$ 1,000
3.75% Convertible Senior Notes [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Percentage of common share price over conversion price for conversion								130.00%
Common stock price trading days \| Trading_day								20
Common stock price consecutive trading days \| Trading_day								30
3.75% Convertible Senior Notes [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Debt instrument redemption price, percentage								98.00%
Common stock price trading days \| Trading_day								5
Common stock price consecutive trading days \| Trading_day								5
3.75% Convertible Senior Notes [Member] \| Issuance Costs [Member]
Debt Instrument [Line Items]
Loan origination fees					10,400,000
Additional paid-in-capital					2,900,000
Issuance cost recorded to deferred financing costs					7,500,000
3.75% Convertible Senior Notes [Member] \| Institutional Buyers [Member]
Debt Instrument [Line Items]
Aggregate principal amount					340,000,000
Principal amount of Convertible Notes, subsequently exercised					$ 21,900,000
Amended and Restated Senior Term Facility [Member]
Debt Instrument [Line Items]
Loan origination fees						22,200,000
Amortization of deferred financing costs									$ 1,400,000
Outstanding principal balance paid				$ 287,700,000
Voluntary prepayment premium paid percentage				3.00%
Voluntary prepayment premium paid				$ 8,600,000
Write off of deferred financing costs				$ 6,800,000
Non lender fees						4,100,000
Senior Secured Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount						690,000,000		$ 690,000,000			525,000,000
Total debt						$ 706,277,000		$ 706,277,000			$ 525,000,000

Long-Term Debt and Other Liabilities - Summary of Redemption Prices Plus Accrued and Unpaid Interest (Detail) - 12.500% Senior Secured Notes Due 2022 [Member]	9 Months Ended
	Sep. 30, 2017
2019 [Member]
Debt Instrument, Redemption [Line Items]
Debt instrument redemption price, percentage	106.25%
2020 [Member]
Debt Instrument, Redemption [Line Items]
Debt instrument redemption price, percentage	103.125%
2021 and Thereafter [Member]
Debt Instrument, Redemption [Line Items]
Debt instrument redemption price, percentage	100.00%

Interest Costs - Summary of Interest Costs (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Schedule Of Interest [Line Items]
Interest costs charged to expense	$ 21,936	$ 19,598	$ 65,164	$ 42,780
Amortization of deferred financing costs	919	818	2,718	2,981
Accretion of debt discount on Convertible Notes	4,945	4,432	14,438	12,940
Amortization of debt premium on Senior Secured Notes	(215)		(566)
Interest expense	27,585	24,848	81,754	58,701
Total interest costs	27,787	25,161	82,573	59,849
Property and Equipment [Member]
Schedule Of Interest [Line Items]
Interest costs capitalized	9	34	15	187
Software [Member]
Schedule Of Interest [Line Items]
Interest costs capitalized	$ 193	$ 279	$ 804	$ 961

Leases - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Jun. 30, 2018	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Leases [Line Items]
Amortization of deferred airborne lease incentives		$ 10,121	$ 7,765	$ 28,099	$ 20,650
Deferred airborne lease incentives included in current liabilities		39,071		39,071		$ 36,277
Deferred airborne lease incentives included in non-current liabilities		121,588		121,588		135,879
Revenue share expense, net of amortization of deferred airborne lease incentives		7,700	10,100	26,900	32,300
Property and equipment, gross		976,707		976,707		816,989
Present value of net minimum lease payments		3,626		3,626
Present value of net minimum lease payments, current portion		2,149		2,149		2,799
Present value of net minimum lease payments, non-current portion		1,500		1,500
Scenario, Forecast [Member]
Leases [Line Items]
Contingent annual cash rebate	$ 1,800
Leased Computer Equipment [Member]
Leases [Line Items]
Property and equipment, gross		5,100		5,100		3,900
Leased Network Equipment [Member]
Leases [Line Items]
Property and equipment, gross		7,500		7,500		$ 7,500
Certain Facilities and Equipment [Member]
Leases [Line Items]
Rental expense		3,000	3,000	9,000	8,900
Cell Site Leases [Member]
Leases [Line Items]
Rental expense		$ 2,300	$ 2,300	$ 7,000	$ 7,000
Minimum [Member] \| Computer Equipment [Member]
Leases [Line Items]
Annual interest rate imputed				8.00%
Maximum [Member] \| Computer Equipment [Member]
Leases [Line Items]
Annual interest rate imputed				14.00%

Leases - Annual Future Minimum Obligations for Operating Leases Other than Arrangements with Commercial Airline Partners (Detail) $ in Thousands	Sep. 30, 2017 USD ($)
Leases [Abstract]
2017 (period from October 1 to December 31)	$ 5,005
2018	18,832
2019	17,765
2020	15,718
2021	15,478
Thereafter	$ 95,693

Leases - Annual Future Minimum Obligation under Capital Leases (Detail) $ in Thousands	Sep. 30, 2017 USD ($)
Leases [Abstract]
2017 (period from October 1 to December 31)	$ 947
2018	2,030
2019	1,016
2020	34
Thereafter	0
Total minimum lease payments	4,027
Less: Amount representing interest	(401)
Present value of net minimum lease payments	$ 3,626

Commitments and Contingencies - Additional Information (Detail) $ in Millions	Sep. 30, 2017 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2017	$ 21.4
2018	75.6
2019	81.9
2020	86.2
2021	75.9
Thereafter	$ 303.0

Fair Value of Financial Assets and Liabilities - Summary of Fair Value and Carrying Value of Long-Term Debt (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total debt	$ 1,012,739	$ 817,024
Convertible Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value of Convertible Notes	333,000	275,000
Carrying Value of Convertible Notes	306,462	292,024
Senior Secured Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value of Long Term Debt	788,000	572,000
Total debt	$ 706,277	$ 525,000

Fair Value of Financial Assets and Liabilities - Summary of Fair Value and Carrying Value of Long-Term Debt (Parenthetical) (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
3.75% Convertible Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Convertible Notes, unamortized discount	$ 55.4	$ 69.9
12.500% Senior Secured Notes Due 2022 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unamortized debt premium and consent fees	$ 16.3

Income Tax - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
Income Tax - Additional Information (Detail) - USD ($)	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Effective income tax rate	0.80%	1.40%	0.70%	1.00%
U.S federal statutory rate	35.00%	35.00%	35.00%	35.00%
Interest or penalties related to uncertain tax positions	$ 0	$ 0	$ 0	$ 0
Liabilities for interest and potential penalties	$ 0		0		$ 0
Increase (decrease) in unrecognized tax benefits			$ 0

Business Segments and Major Customers - Additional Information (Detail)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017 Customer	Sep. 30, 2016 Customer	Sep. 30, 2017 Segment Partner Customer	Sep. 30, 2016 Customer	Dec. 31, 2016 Partner Customer
Segment Reporting Information [Line Items]
Number of operating segments \| Segment			3
Revenue [Member]
Segment Reporting Information [Line Items]
Number of customers meeting concentration risk threshold	0	0	0	0
Revenue [Member] \| Customer Concentration Risk [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark	10.00%	10.00%	10.00%	10.00%
Revenue [Member] \| Customer Concentration Risk [Member] \| Delta Airline and American Airlines [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark	47.00%	50.00%	47.00%	50.00%
Accounts Receivable [Member]
Segment Reporting Information [Line Items]
Number of customers meeting concentration risk threshold			2		0
Number of airline partners meeting concentration risk threshold \| Partner			1		1
Accounts Receivable [Member] \| Customer Concentration Risk [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark			22.00%		10.00%
Accounts Receivable [Member] \| Credit Concentration Risk [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark			19.00%		18.00%

Business Segments and Major Customers - Summary of Reportable Segments (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Service revenue	$ 153,347	$ 129,099	$ 453,918	$ 375,406
Equipment revenue	19,527	18,168	57,162	61,146
Total revenue	172,874	147,267	511,080	436,552
Segment profit (loss)	13,185	15,240	33,894	43,916
CA-NA [Member]
Segment Reporting Information [Line Items]
Service revenue	94,436	88,534	290,260	261,751
Equipment revenue	1,291	2,191	5,234	8,708
Total revenue	95,727	90,725	295,494	270,459
Segment profit (loss)	15,966	14,509	43,316	46,966
CA-ROW [Member]
Segment Reporting Information [Line Items]
Service revenue	15,687	7,235	38,243	17,213
Equipment revenue	953	360	2,756	731
Total revenue	16,640	7,595	40,999	17,944
Segment profit (loss)	(24,110)	(19,924)	(82,068)	(62,945)
BA [Member]
Segment Reporting Information [Line Items]
Service revenue	43,224	33,330	125,415	96,442
Equipment revenue	17,283	15,617	49,172	51,707
Total revenue	60,507	48,947	174,587	148,149
Segment profit (loss)	$ 21,329	$ 20,655	$ 72,646	$ 59,895

Business Segments and Major Customers - Reconciliation of Segment Profit (loss) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment profit (loss)	$ 13,185	$ 15,240	$ 33,894	$ 43,916
Interest income	683	852	1,999	1,064
Interest expense	(27,585)	(24,848)	(81,754)	(58,701)
Depreciation and amortization	(35,824)	(26,779)	(96,821)	(76,042)
Amortization of deferred airborne lease incentives	10,121	7,765	28,099	20,650
Stock-based compensation expense	(5,283)	(5,000)	(15,007)	(12,986)
Adjustment to deferred financing costs				792
Loss of extinguishment of debt				(15,406)
Other income (expense)	(228)	(34)	(322)	137
Loss before income taxes	(44,931)	(32,804)	(129,912)	(96,576)
CA-NA [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment profit (loss)	15,966	14,509	43,316	46,966
CA-ROW [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment profit (loss)	(24,110)	(19,924)	(82,068)	(62,945)
BA [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment profit (loss)	$ 21,329	$ 20,655	$ 72,646	$ 59,895

Employee Retirement and Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Employee Benefit Plans [Line Items]
Stock options, shares granted			1,992,595
Stock options, shares exercised			48,662
Stock options, shares forfeited			315,140
Stock options, shares expired			265,024
Employee Contribution			100.00%
Percentage of employees contribution matched by the company			4.00%
Employer Contribution	$ 1.2	$ 1.1	$ 4.0	$ 3.1
Employee Stock Purchase Plan [Member]
Employee Benefit Plans [Line Items]
Common stock, shares issued under ESPP			117,471
Market Condition [Member]
Employee Benefit Plans [Line Items]
Stock options, shares granted			527,850
Stock options, shares forfeited			33,620
Share units granted			228,840
Share units forfeited			27,940
Restricted Stock Units (RSUs) [Member]
Employee Benefit Plans [Line Items]
Share units granted			875,166
Share units vested			368,506
Share units forfeited			196,167
Restricted Stock [Member]
Employee Benefit Plans [Line Items]
Share units granted			92,910
Share units vested			98,988
Deferred Stock Units [Member]
Employee Benefit Plans [Line Items]
Share units granted			60,972
Share units released			0

Employee Retirement and Postretirement Benefits - Summary of Stock-Based Compensation Expense by Operating Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 5,283	$ 5,000	$ 15,007	$ 12,986
Cost of Service Revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	542	446	1,332	1,142
Cost of Equipment Revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	49	34	136	78
Engineering, Design and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	897	970	2,801	2,432
Sales and Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	1,305	1,498	3,473	3,799
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 2,490	$ 2,052	$ 7,265	$ 5,535

Research and Development Costs - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Research and Development [Abstract]
Research and development expense	$ 18.6	$ 11.8	$ 57.9	$ 34.5

Canadian ATG Spectrum License - Summary of Amortization Expense (Detail) - License Agreement [Member] $ in Thousands	9 Months Ended
	Sep. 30, 2017 USD ($)
Schedule Of Estimated Future Amortization Expense [Line Items]
2017 (period from October 1 to December 31)	$ 26
2018	104
2019	104
2020	104
2021	104
Thereafter	$ 1,632

Canadian ATG Spectrum License - Additional Information (Detail) - License Agreement [Member] - Canadian ATG Spectrum License Agreement [Member] - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Agreements [Line Items]
Total amount of monthly payments incurred	$ 300,000	$ 300,000	$ 900,000	$ 900,000
Maximum [Member]
Agreements [Line Items]
Total amortization expenses	$ 100,000	$ 100,000	$ 100,000	$ 100,000

Fair Value of Financial Assets and Liabilities - Additional Information (Detail) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]
Assets fair value adjustments	$ 0	$ 0