Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2019	Aug. 05, 2019
Document and Entity Information [Abstract]
Document Type	10-Q
Entity Interactive Data Current	Yes
Amendment Flag	false
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Registrant Name	Gogo Inc.
Entity Central Index Key	0001537054
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Common stock
Entity Common Stock, Shares Outstanding		88,068,387
Trading Symbol	GOGO
Security Exchange Name	NASDAQ
Entity Address, Country	IL

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 181,867	$ 184,155
Short-term investments		39,323
Total cash, cash equivalents and short-term investments	181,867	223,478
Accounts receivable, net of allowances of $5,357 and $500, respectively	113,975	134,308
Inventories	151,533	193,045
Prepaid expenses and other current assets	30,458	34,695
Total current assets	477,833	585,526
Non-current assets:
Property and equipment, net	549,908	511,867
Goodwill and intangible assets, net	81,161	83,491
Operating lease right-of-use assets	68,702
Other non-current assets	104,544	84,212
Total non-current assets	804,315	679,570
Total assets	1,282,148	1,265,096
Current liabilities:
Accounts payable	29,617	23,860
Accrued liabilities	185,193	213,111
Deferred revenue	30,551	38,571
Deferred airborne lease incentives	24,737	24,145
Total current liabilities	270,098	299,687
Non-current liabilities:
Long-term debt	1,092,321	1,024,893
Deferred airborne lease incentives	137,231	129,086
Non-current operating lease liabilities	97,619
Other non-current liabilities	48,486	80,191
Total non-current liabilities	1,375,657	1,234,170
Total liabilities	1,645,755	1,533,857
Commitments and contingencies (Note 12)
Stockholders' deficit
Common stock, par value $0.0001 per share; 500,000,000 shares authorized at June 30, 2019 and December 31, 2018; 88,116,072 and 87,678,812 shares issued at June 30, 2019 and December 31, 2018, respectively; and 88,062,965 and 87,560,694 shares outstanding at June 30, 2019 and December 31, 2018, respectively	9	9
Additional paid-in-capital	971,130	963,458
Accumulated other comprehensive loss	(2,217)	(3,554)
Accumulated deficit	(1,332,529)	(1,228,674)
Total stockholders' deficit	(363,607)	(268,761)
Total liabilities and stockholders' deficit	$ 1,282,148	$ 1,265,096

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Allowances on accounts receivable	$ 5,357	$ 500
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	88,116,072	87,678,812
Common stock, shares outstanding	88,062,965	87,560,694

Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue:
Total revenue	$ 213,685	$ 227,458	$ 413,234	$ 459,283
Operating expenses:
Cost of service revenue (exclusive of items shown below)	71,494	73,650	139,615	148,597
Cost of equipment revenue (exclusive of items shown below)	35,571	64,350	65,302	116,643
Engineering, design and development	26,912	28,409	51,640	58,186
Sales and marketing	12,994	15,427	25,312	31,328
General and administrative	27,081	21,133	49,535	46,292
Depreciation and amortization	29,967	31,938	60,716	67,857
Total operating expenses	204,019	234,907	392,120	468,903
Operating income (loss)	9,666	(7,449)	21,114	(9,620)
Other (income) expense:
Interest income	(1,230)	(1,328)	(2,379)	(2,404)
Interest expense	36,150	30,641	68,704	61,195
Loss on extinguishment of debt	57,962		57,962
Other (income) expense	443	374	(2,922)	(131)
Total other expense	93,325	29,687	121,365	58,660
Loss before income taxes	(83,659)	(37,136)	(100,251)	(68,280)
Income tax provision (benefit)	304	71	511	(3,654)
Net loss	$ (83,963)	$ (37,207)	$ (100,762)	$ (64,626)
Net loss attributable to common stock per share—basic and diluted	$ (1.04)	$ (0.47)	$ (1.25)	$ (0.81)
Weighted average number of shares—basic and diluted	80,702	79,783	80,575	79,718
Service [Member]
Revenue:
Total revenue	$ 173,731	$ 159,056	$ 338,743	$ 309,734
Product [Member]
Revenue:
Total revenue	$ 39,954	$ 68,402	$ 74,491	$ 149,549

Unaudited Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Net loss	$ (83,963)	$ (37,207)	$ (100,762)	$ (64,626)
Currency translation adjustments, net of tax	927	(1,379)	1,337	(2,213)
Comprehensive loss	$ (83,036)	$ (38,586)	$ (99,425)	$ (66,839)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Operating activities:
Net loss	$ (100,762)	$ (64,626)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	60,716	67,857
Loss on asset disposals, abandonments and write-downs	4,425	6,529
Gain on transition to airline-directed model		(21,551)
Deferred income taxes	89	(3,911)
Stock-based compensation expense	8,645	8,599
Amortization of deferred financing costs	2,573	2,083
Accretion and amortization of debt discount and premium	8,374	9,204
Loss on extinguishment of debt	57,962
Changes in operating assets and liabilities:
Accounts receivable	20,730	(23,522)
Inventories	(5,297)	(6,223)
Prepaid expenses and other current assets	6,409	(4,472)
Contract assets	(20,313)	(14,469)
Accounts payable	5,736	9,263
Accrued liabilities	(7,295)	6,498
Deferred airborne lease incentives	(1,486)	(2,986)
Deferred revenue	(3,858)	1,223
Accrued interest	(28,375)
Warranty reserves	948	5,355
Other non-current assets and liabilities	(3,686)	(3,880)
Net cash provided by (used in) operating activities	5,535	(29,029)
Investing activities:
Purchases of property and equipment	(33,598)	(103,599)
Acquisition of intangible assets—capitalized software	(8,647)	(11,567)
Purchases of short-term investments		(39,323)
Redemptions of short-term investments	39,323	128,924
Other, net	360
Net cash used in investing activities	(2,562)	(25,565)
Financing activities:
Proceeds from issuance of senior secured notes	920,683
Redemption of senior secured notes	(741,360)
Repurchase of convertible notes	(158,954)
Payment of debt issuance costs	(22,645)
Payments on financing leases	(383)	(1,187)
Stock-based compensation activity	(178)	(257)
Net cash used in financing activities	(2,837)	(1,444)
Effect of exchange rate changes on cash	(378)	(373)
Decrease in cash, cash equivalents and restricted cash	(242)	(56,411)
Cash, cash equivalents and restricted cash at beginning of period	191,116	203,729
Cash, cash equivalents and restricted cash at end of period	190,874	147,318
Cash, cash equivalents and restricted cash at end of period	190,874	147,318
Less: current restricted cash	1,035	1,738
Less: non-current restricted cash	7,972	5,160
Cash and cash equivalents at end of period	181,867	140,420
Supplemental Cash Flow Information:
Cash paid for interest	86,420	49,911
Cash paid for taxes	412	374
Noncash Investing and Financing Activities:
Purchases of property and equipment in current liabilities	16,014	19,001
Purchases of property and equipment paid by commercial airlines	$ 9,914	$ 4,816

Unaudited Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated Deficit [Member]
Beginning Balance at Dec. 31, 2017	$ (191,564)	$ 9	$ 898,729	$ (933)	$ (1,089,369)
Beginning Balance, Shares at Dec. 31, 2017		86,843,928
Net loss	(64,626)				(64,626)
Currency translation adjustments, net of tax	(2,213)			(2,213)
Stock-based compensation expense	8,599		8,599
Issuance of common stock upon exercise of stock options	21		21
Issuance of common stock upon exercise of stock options, Shares		2,500
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares		363,872
Tax withholding related to vesting of restricted stock units	(1,127)		(1,127)
Issuance of common stock in connection with employee stock purchase plan	849		849
Issuance of common stock in connection with employee stock purchase plan, Shares		141,000
Impact of the adoption of ASC 842	21,849				21,849
Ending Balance at Jun. 30, 2018	(228,212)	$ 9	907,071	(3,146)	(1,132,146)
Ending Balance, Shares at Jun. 30, 2018		87,351,300
Beginning Balance at Mar. 31, 2018	(191,336)	$ 9	903,045	(1,767)	(1,092,623)
Beginning Balance, Shares at Mar. 31, 2018		87,007,075
Net loss	(37,207)				(37,207)
Currency translation adjustments, net of tax	(1,379)			(1,379)
Stock-based compensation expense	4,213		4,213
Issuance of common stock upon exercise of stock options	21		21
Issuance of common stock upon exercise of stock options, Shares		2,500
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares		256,537
Tax withholding related to vesting of restricted stock units	(601)		(601)
Issuance of common stock in connection with employee stock purchase plan	393		393
Issuance of common stock in connection with employee stock purchase plan, Shares		85,188
Impact of the adoption of ASC 842	(2,316)				(2,316)
Ending Balance at Jun. 30, 2018	(228,212)	$ 9	907,071	(3,146)	(1,132,146)
Ending Balance, Shares at Jun. 30, 2018		87,351,300
Beginning Balance at Dec. 31, 2018	(268,761)	$ 9	963,458	(3,554)	(1,228,674)
Beginning Balance, Shares at Dec. 31, 2018		87,560,694
Net loss	(100,762)				(100,762)
Currency translation adjustments, net of tax	1,337			1,337
Stock-based compensation expense	$ 8,645		8,645
Issuance of common stock upon exercise of stock options, Shares	456,431
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares		345,113
Tax withholding related to vesting of restricted stock units	$ (807)		(807)
Issuance of common stock in connection with employee stock purchase plan	629		629
Issuance of common stock in connection with employee stock purchase plan, Shares		157,158
Repurchase of 2020 Convertible Notes	(795)		(795)
Impact of the adoption of ASC 842	(3,093)				(3,093)
Ending Balance at Jun. 30, 2019	(363,607)	$ 9	971,130	(2,217)	(1,332,529)
Ending Balance, Shares at Jun. 30, 2019		88,062,965
Beginning Balance at Mar. 31, 2019	(283,974)	$ 9	967,727	(3,144)	(1,248,566)
Beginning Balance, Shares at Mar. 31, 2019		87,797,614
Net loss	(83,963)				(83,963)
Currency translation adjustments, net of tax	927			927
Stock-based compensation expense	4,318		4,318
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares		183,446
Tax withholding related to vesting of restricted stock units	(456)		(456)
Issuance of common stock in connection with employee stock purchase plan	336		336
Issuance of common stock in connection with employee stock purchase plan, Shares		81,905
Repurchase of 2020 Convertible Notes	(795)		(795)
Ending Balance at Jun. 30, 2019	$ (363,607)	$ 9	$ 971,130	$ (2,217)	$ (1,332,529)
Ending Balance, Shares at Jun. 30, 2019		88,062,965

Basis of Presentation

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Basis of Presentation

1.	Basis of Presentation

The Business

—

Gogo (“we,” “us,” “our”) is the global leader in providing broadband connectivity solutions and wireless

in-flight

entertainment to the aviation industry. 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 other services, 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, 2018 as filed with the Securities and Exchange Commission (“SEC”) on February 21, 2019 (the “2018

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 three and six month periods ended June 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2019.

We have

one

class of common stock outstanding as of June 30, 2019 and December 31, 2018.

Reclassifications

—

To conform with the current year presentation, $652 thousand of the current portion of financing lease liabilities has been combined with accrued liabilities within our unaudited condensed consolidated balance sheet as of December 31, 2018.

Transition of airline models

—

The accounting treatment for one of our airline agreements transitioned from our turnkey model to our airline-directed model in January 2018 due to specific provisions elected by the airline that resulted in the transfer of control of the previously installed connectivity equipment. Upon transition to the airline-directed model, the net book value of all previously delivered equipment classified within property and equipment was reclassified to cost of equipment revenue. Additionally, the unamortized proceeds previously received for equipment and classified within current and

non-current

deferred airborne lease incentives were eliminated and included as part of estimated contract value, which was then allocated amongst the various performance obligations under the agreement. The value allocated to previously delivered equipment was immediately recognized as equipment revenue in our unaudited condensed consolidated financial statements; refer to Note 3, “Revenue Recognition,” for additional disclosures relating to the allocation of consideration among identified performance obligations. For amounts recognized in equipment revenue that were in excess of the amounts billed, we recorded current and

non-current

contract assets included within prepaid expenses and other current assets and other

non-current

assets, respectively; refer to Note 3, “Revenue Recognition,” for additional details. In connection with the transition of this airline agreement to the airline-directed model, we also established warranty reserves related to previously sold equipment that are still under a warranty period, which is included within accrued liabilities. See Note 8, “Warranties,” for additional information. This transition from the turnkey model to the airline-directed model occurred on January 4, 2018 and the total financial statement effect on our unaudited condensed consolidated balance sheet and unaudited condensed consolidated statement of operations was as follows (

in thousands


	Increase (decrease)
Unaudited condensed consolidated balance sheet
Prepaid expense and other current assets	$	6,603
Property and equipment, net		(32,716	)
Other non-current assets		18,783
Accrued liabilities		2,000
Current deferred airborne lease incentive		(13,592	)
Non-current deferred airborne lease incentive		(17,289	)
Unaudited condensed consolidated statement of operations
Equipment revenue		45,396
Cost of equipment revenue		23,845

As of January 1, 2019, one airline transitioned from the airline-directed model to the turnkey model. As a result of such transition, $46.8 million of Inventory was reclassified to Property and equipment, net as of January 1, 2019. See Note 2, “Summary of Significant Accounting Policies

—

Inventories,” in our 2018

10-K

for information regarding the allocation of airborne equipment between Inventories and Property and equipment, net.

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 revenues 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.

Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2019

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

2.	Recent Accounting Pronouncements

Accounting standards adopted:

On January 1, 2019, we adopted Accounting Standards Codification Topic 842,

Leases

(“ASC 842”) using the cumulative effect method. As a result, we recognized the cumulative effect of initially applying ASC 842 as an adjustment to the opening balance of retained earnings as of January 1, 2019. Our historical financial statements have not been restated and continue to be reported under the lease accounting standard in effect for those periods.

We elected the practical expedients regarding use of hindsight to evaluate lease terms as well as maintaining lease classifications established under the prior lease accounting standard. Through this practical expedient, we did not reevaluate contracts to determine if they contained a lease. We did not elect the practical expedients regarding short-term leases or the separation of lease and

non-lease

components.

Adoption of ASC 842 had a material impact on our consolidated balance sheet through recognition of

right-of-use

(“ROU”) assets and operating lease liabilities. Adoption did not have a material impact on our consolidated statements of operations or our consolidated statements of cash flows and did not result in the recognition of incremental financing leases, formerly referred to as capital leases.

The discount rate used to calculate the adjustment to the opening balance was our incremental borrowing rate as of the adoption date, January 1, 2019. The cumulative effect of the adoption of ASC 842 to our unaudited condensed consolidated balance sheet as of January 1, 2019 was as follows (

in thousands)


	Balance at December 31, 2018			Impact of ASC 842			Balances with Adoption of ASC 842
Assets
Operating lease right-of-use assets	$	—		$	72,188		$	72,188

Liabilities
Accrued liabilities		213,111			9,019			222,130
Non-current operating lease liabilities		—			102,440			102,440
Other non-current liabilities		80,191			(36,178	)		44,013

Equity
Accumulated deficit		(1,228,674	)		(3,093	)		(1,231,767	)

See Note 11, “Leases,” for additional information.

On January 1, 2019, we adopted ASU

2018-02,

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

(“ASU

2018-02”),

which permits entities to reclassify tax effects stranded in accumulated other comprehensive income as a result of tax reform to retained earnings. Adoption of this standard did not have a material impact on our consolidated financial statements.

On January 1, 2019, we adopted ASU

2018-07,

Improvements to Nonemployee Share-Based Payment Accounting

(“ASU

2018-07”),

which expands the scope of ASC 718,

Compensation – Stock Compensation

, to include share-based payment transactions for acquiring goods or services from nonemployees. Adoption of this standard did not have a material impact on our consolidated financial statements.

Revenue Recognition

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue Recognition

3.	Revenue Recognition

Arrangements with commercial airlines

For

CA-NA

and

CA-ROW,

pursuant to contractual agreements with our airline partners, we place our equipment on commercial aircraft operated by the airlines in order to deliver our service to passengers on the aircraft. We currently have two types of commercial airline arrangements: turnkey and airline-directed. Under the airline-directed model, we have transferred control of the equipment to the airline and therefore the airline is our customer in these transactions. Under the turnkey model, we have not transferred control of our equipment to our airline partner and, as a result, the airline passenger is deemed to be our customer. Transactions with our airline partners under the turnkey model are accounted for as an operating lease of space on an aircraft. See Note 11, “Leases,” for additional information on the turnkey model.

Remaining performance obligations

As of June 30, 2019, the aggregate amount of the transaction price in our contracts allocated to the remaining unsatisfied performance obligations is approximately $784 million, most of which relates to our commercial aviation contracts. Approximately $101 million represents future equipment revenue that is expected to be recognized within the

next one to three years

. The remaining $683 million primarily represents connectivity and entertainment service revenues which are recognized as services are provided, which is expected to occur through the remaining term of the contract (approximately

5-10

years). We have excluded from this amount: all variable consideration derived from our connectivity or entertainment services that is allocated entirely to our performance of obligations related to such services; consideration from contracts that have an original duration of

one

year or less; revenue from passenger service on airlines operating under the turnkey model; and revenue from contracts that have been executed but under which have not yet met the accounting definition of a contract since the airline has not yet determined which products in our portfolio it wishes to select, and, as a result we are unable to determine which products and services will be transferred to the customer.

Disaggregation of revenue

The following table presents our revenue disaggregated by category

(in thousands)


	For the Three Months Ended June 30, 2019
	CA-NA		CA-ROW		BA		Total
Service revenue
Connectivity	$	90,233	$	21,656	$	54,176	$	166,065
Entertainment, CAS and other		6,169		917		580		7,666
Total service revenue	$	96,402	$	22,573	$	54,756	$	173,731
Equipment revenue
ATG	$	5,636	$	—	$	12,344	$	17,980
Satellite		3,329		14,144		3,809		21,282
Other		360		—		332		692
Total equipment revenue	$	9,325	$	14,144	$	16,485	$	39,954
Customer type
Airline passenger and aircraft owner/operator	$	55,900	$	6,767	$	54,756	$	117,423
Airline, OEM and aftermarket dealer		36,883		27,680		16,485		81,048
Third party		12,944		2,270		—		15,214
Total revenue	$	105,727	$	36,717	$	71,241	$	213,685


	For the Three Months Ended June 30, 2018
	CA-NA		CA-ROW		BA		Total
Service revenue
Connectivity	$	88,833	$	14,548	$	47,831	$	151,212
Entertainment, CAS and other		6,913		637		294		7,844
Total service revenue	$	95,746	$	15,185	$	48,125	$	159,056
Equipment revenue
ATG	$	2,254	$	—	$	20,497	$	22,751
Satellite		21,650		18,460		4,461		44,571
Other		—		—		1,080		1,080
Total equipment revenue	$	23,904	$	18,460	$	26,038	$	68,402
Customer type
Airline passenger and aircraft owner/operator	$	54,718	$	5,097	$	48,125	$	107,940
Airline, OEM and aftermarket dealer		49,141		26,311		26,038		101,490
Third party		15,791		2,237		—		18,028
Total revenue	$	119,650	$	33,645	$	74,163	$	227,458


	For the Six Months Ended June 30, 2019
	CA-NA		CA-ROW		BA		Total
Service revenue
Connectivity	$	170,051	$	40,510	$	106,861	$	317,422
Entertainment, CAS and other		18,378		1,835		1,108		21,321
Total service revenue	$	188,429	$	42,345	$	107,969	$	338,743
Equipment revenue
ATG	$	8,508	$	—	$	23,679	$	32,187
Satellite		3,959		27,303		9,044		40,306
Other		900		—		1,098		1,998
Total equipment revenue	$	13,367	$	27,303	$	33,821	$	74,491
Customer type
Airline passenger and aircraft owner/operator	$	110,249	$	12,618	$	107,969	$	230,836
Airline, OEM and aftermarket dealer		67,796		53,171		33,821		154,788
Third party		23,751		3,859		—		27,610
Total revenue	$	201,796	$	69,648	$	141,790	$	413,234


	For the Six Months Ended June 30, 2018
	CA-NA		CA-ROW		BA		Total
Service revenue
Connectivity	$	170,873	$	28,197	$	95,223	$	294,293
Entertainment, CAS and other		13,656		1,233		552		15,441
Total service revenue	$	184,529	$	29,430	$	95,775	$	309,734
Equipment revenue
ATG (1)	$	47,016	$	—	$	35,918	$	82,934
Satellite (1)		31,926		23,384		8,719		64,029
Other		—		—		2,586		2,586
Total equipment revenue	$	78,942	$	23,384	$	47,223	$	149,549
Customer type
Airline passenger and aircraft owner/operator	$	107,642	$	9,826	$	95,775	$	213,243
Airline, OEM and aftermarket dealer (2)		126,567		39,005		47,223		212,795
Third party		29,262		3,983		—		33,245
Total revenue	$	263,471	$	52,814	$	142,998	$	459,283

ATG and satellite equipment revenue for the

CA-NA

segment includes the $45.4 million related to the accounting impact of the transition of one of our airline partners to the airline-directed model. Approximately $43.4 million was included in ATG equipment revenue and approximately $2.0 million was included in satellite equipment revenue.

2)	Airline, OEM and aftermarket dealer revenue includes all equipment revenue for our three segments, including the $45.4 million accounting impact of the transition of one of our airline partners to the airline-directed model.

Contract balances

Our current and

non-current

deferred revenue balances totaled $56.2 million and $60.1 million as of June 30, 2019 and December 31, 2018, respectively. Deferred revenue includes, among other things, equipment, multi-pack and subscription connectivity products, sponsorship activities and airline-directed connectivity and entertainment.

Our current and

non-current

contract asset balances totaled $81.0 million and $59.9 million as of June 30, 2019 and December 31, 2018, respectively. Contract assets represent the aggregate amount of revenue recognized in excess of billings for our airline-directed contracts.

Capitalized STC balances for our airline-directed contracts were $19.3 million and $16.5 million as of June 30, 2019 and December 31, 2018, respectively. The capitalized STC costs are amortized over the life of the associated airline-directed contracts as part of our engineering, design and development costs in our unaudited condensed consolidated statements of operations. Total amortization expense was $0.3 million and $0.6 million, respectively, for the three and six month periods ended June 30, 2019, and $0.2 million and $0.4 million for the respective prior-year periods.

Net Loss Per Share

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Net Loss Per Share

4.	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 9, “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 June 30, 2019 and 2018 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 six month periods ended June 30, 2019 and 2018, 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 six month periods ended June 30, 2019 and 2018; 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 2019 and 2018 as undistributed losses are not allocated to these shares (

in thousands, except per share amounts


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2019			2018			2019			2018
Net loss	$	(83,963	)	$	(37,207	)	$	(100,762	)	$	(64,626	)
Less: Participation rights of the Forward Transactions		—			—			—			—
Undistributed losses	$	(83,963	)	$	(37,207	)	$	(100,762	)	$	(64,626	)
Weighted-average common shares outstanding-basic and diluted		80,702			79,783			80,575			79,718
Net loss attributable to common stock per share-basic and diluted	$	(1.04	)	$	(0.47	)	$	(1.25	)	$	(0.81	)

Composition of Certain Balance Sheet Accounts

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Composition of Certain Balance Sheet Accounts

6.	Composition of Certain Balance Sheet Accounts

Prepaid expenses and other current assets as of June 30, 2019 and December 31, 2018 were as follows (

in thousands


	June 30, 2019		December 31, 2018
Contract assets	$	13,056	$	10,423
Prepaid satellite services		5,344		7,755
Restricted cash		1,035		1,535
Other		11,023		14,982
Total prepaid expenses and other current assets	$	30,458	$	34,695

Property and equipment as of June 30, 2019 and December 31, 2018 were as follows (

in thousands


	June 30, 2019			December 31, 2018
Office equipment, furniture, fixtures and other	$	54,626		$	52,320
Leasehold improvements		44,842			44,838
Airborne equipment (1)		720,925			642,151
Network equipment		209,189			205,463
		1,029,582			944,772
Accumulated depreciation		(479,674	)		(432,905	)
Total property and equipment, net	$	549,908		$	511,867

(1)	The change between June 30, 2019 and December 31, 2018 primarily relates to the accounting impact of one of our airline partner agreements transitioning to the turnkey model (see Note 1, “Basis of Presentation,” for additional information).

Other

non-current

assets as of June 30, 2019 and December 31, 2018 were as follows (

in thousands


	June 30, 2019		December 31, 2018
Contract assets	$	67,937	$	49,517
Deferred STC costs		19,316		16,453
Restricted cash		7,972		5,426
Other		9,319		12,816
Total other non-current assets	$	104,544	$	84,212

Accrued liabilities as of June 30, 2019 and December 31, 2018 were as follows (

in thousands


	June 30, 2019		December 31, 2018
Airline related accrued liabilities	$	66,998	$	53,527
Accrued interest		18,319		46,694
Employee compensation and benefits		16,987		19,463
Airborne equipment and installation costs		13,266		25,119
Accrued satellite network costs		13,472		19,557
Warranty reserve		13,357		12,291
Operating leases (1)		11,565		—
Other		31,229		36,460
Total accrued liabilities	$	185,193	$	213,111

(1)	The change between June 30, 2019 and December 31, 2018 is due to the adoption of ASC 842. See Note 2, “Recent Accounting Pronouncements,” for additional information.

Other

non-current

liabilities as of June 30, 2019 and December 31, 2018 were as follows (

in thousands


	June 30, 2019		December 31, 2018
Deferred revenue	$	25,648	$	21,482
Deferred rent (1)		—		35,897
Asset retirement obligations		10,170		9,696
Deferred tax liabilities		2,251		2,162
Other		10,417		10,954
Total other non-current liabilities	$	48,486	$	80,191

(1)	The change between June 30, 2019 and December 31, 2018 is due to the adoption of ASC 842. See Note 2, “Recent Accounting Pronouncements,” for additional information.

Intangible Assets

6 Months Ended

Jun. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

7.	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; rather, they 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 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 2018 indicated no impairment.

As of both June 30, 2019 and December 31, 2018, our goodwill balance, all of which related to our BA segment, was $0.6 million.

Our intangible assets, other than goodwill, as of June 30, 2019 and December 31, 2018 were as follows (

in thousands, except for weighted average remaining useful life


	Weighted Average Remaining Useful Life (in years)		As of June 30, 2019							As of December 31, 2018
	Weighted Average Remaining Useful Life (in years)		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortized intangible assets:
Software		2.7	$	172,712	$	(126,801	)	$	45,911	$	164,580	$	(116,873	)	$	47,707
Service customer relationship		0.8		8,081		(7,312	)		769		8,081		(6,804	)		1,277
Other intangible assets		7.8		3,000		(1,422	)		1,578		3,000		(1,396	)		1,604
OEM and dealer relationships				6,724		(6,724	)		—		6,724		(6,724	)		—
Total amortized intangible assets				190,517		(142,259	)		48,258		182,385		(131,797	)		50,588
Unamortized intangible assets:
FCC Licenses				32,283		—			32,283		32,283		—			32,283
Total intangible assets			$	222,800	$	(142,259	)	$	80,541	$	214,668	$	(131,797	)	$	82,871

Amortization expense was $5.1 million and $10.5 million, respectively, for the three and six month periods ended June 30, 2019 and $7.2 million and $14.8 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


Years ending December 31,	Amortization Expense
2019 (period from July 1 to December 31)	$	10,671
2020	$	17,229
2021	$	12,281
2022	$	6,100
2023	$	1,201
Thereafter	$	776

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

Long-Term Debt and Other Liabilities

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Long-Term Debt and Other Liabilities

9.	Long-Term Debt and Other Liabilities

Long-term debt as of June 30, 2019 and December 31, 2018 was as follows (

in thousands


	June 30, 2019			December 31, 2018
2024 Senior Secured Notes	$	920,800		$	—
2022 Senior Secured Notes		—			702,670
2022 Convertible Notes		195,867			190,083
2020 Convertible Notes		3,046			149,195
Total debt		1,119,713			1,041,948
Less deferred financing costs		(27,392	)		(17,055	)
Total long-term debt	$	1,092,321		$	1,024,893

2024 Senior Secured

Notes

—On April 25, 2019 (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 $905 million aggregate principal amount of 9.875% senior secured notes due 2024 (the “Initial Notes”) under an indenture (the “Base Indenture”), dated as of April 25, 2019, among the Issuers, us, as guarantor, certain subsidiaries of GIH, as guarantors (the “2024 Subsidiary Guarantors” and, together with us, the “2024 Guarantors”), and U.S. Bank National Association, as trustee (the “Trustee”) and collateral agent (the “Collateral Agent”). On May 3, 2019, the Issuers, the 2024 Guarantors and the Trustee entered into the first supplemental indenture (the “First Supplemental Indenture” and, together with the Base Indenture, the “2024 Indenture”) to increase the amount of indebtedness that may be incurred under Credit Facilities (as defined in the 2024 Indenture) by GIH or its subsidiaries that are 2024 Guarantors by $20 million in aggregate principal amount. On May 7, 2019, the Issuers issued an additional $20 million aggregate principal amount of 9.875% senior secured notes due 2024 (the “Additional Notes”). We refer to the Initial Notes and the Additional Notes collectively as the “2024 Senior Secured Notes”. The Initial Notes were issued at a price equal to 99.512% of their face value, and the Additional Notes were issued at a price equal to 100.5% of their face value, resulting in aggregate gross proceeds of $920.7 million. Additionally, we received approximately $0.1 million for interest that accrued from April 25, 2019 through May 7, 2019 with respect to the Additional Notes that will be paid out when we make our next interest payment in November 2019. The 2024 Senior Secured Notes are guaranteed on a senior secured basis by Gogo Inc. and all of GIH’s existing and future restricted subsidiaries (other than the

Co-Issuer),

subject to certain exceptions. The 2024 Senior Secured Notes and the related guarantees are secured by first-priority liens (or to the extent of any future asset-based lending (“ABL”) Obligations, second-priority liens on the ABL Priority Collateral) on substantially all of the Issuers’ and the 2024 Guarantors’ assets, including pledged equity interests of the Issuers and all of GIH’s existing and future restricted subsidiaries guaranteeing the 2024 Senior Secured Notes, except for certain excluded assets and subject to permitted liens.

As of June 30, 2019, the outstanding principal amount of the 2024 Senior Secured Notes was $925 million, the unaccreted debt discount was $4.2 million and the net carrying amount was $920.8 million.

We used a portion of the net proceeds from the issuance of the 2024 Senior Secured Notes to fund the redemption of all the outstanding 2022 Senior Secured Notes (as defined below) and to repurchase $159 million aggregate principal amount of the 2020 Convertible Notes (as defined below). We intend to use the remaining net proceeds for general corporate purposes.

The 2024 Senior Secured Notes will mature on May 1, 2024. The 2024 Senior Secured Notes bear interest at a rate of 9.875% per year, payable semiannually in arrears on May 1 and November 1 of each year, beginning on November 1, 2019.

We paid approximately $22.6 million of origination fees and financing costs related to the issuance of the 2024 Senior Secured Notes, which have been accounted for as deferred financing costs. The deferred financing costs on our unaudited condensed consolidated balance sheet are being amortized over the contractual term of the 2024 Senior Secured Notes using the effective interest method. Total amortization expense was $0.6 million for both the three and six month periods ended June 30, 2019. As of June 30, 2019, the balance of unamortized deferred financing costs related to the 2024 Senior Secured Notes was $22.0 million and is included as a reduction to long-term debt in our unaudited condensed consolidated balance sheet. See Note 10, “Interest Costs,” for additional information.

The 2024 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 2024 Senior Secured Notes, if any, in each case to the extent of the value of the collateral securing the 2024 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 2024 Senior Secured Notes and (ii) indebtedness secured on a junior priority basis by the same collateral securing the 2024 Senior Secured Notes, if any, in each case to the extent of any insufficiency in the collateral securing the 2024 Senior Secured Notes;

•

structurally senior to all of our existing and future indebtedness, including our 2022 Convertible Notes and 2020 Convertible Notes (each as defined below);

•

senior in right of payment to any and all of the Issuers’ future indebtedness that is subordinated in right of payment to the 2024 Senior Secured Notes; and

•

structurally subordinated to all of the indebtedness and other liabilities of any

non-2024

Guarantors (other than the Issuers).

Each guarantee is a senior secured obligation of such 2024 Guarantor and is:

•

effectively senior in right of payment to all existing and future senior unsecured indebtedness and indebtedness secured on a junior priority basis by the same collateral securing the guarantee, if any, of such 2024 Guarantor, in each case to the extent of the value of the collateral securing the guarantee;

•

effectively equal in right of payment with all existing and future unsubordinated indebtedness and indebtedness secured on a junior priority basis by the same collateral securing the guarantee, if any, in each case to the extent of any insufficiency in the collateral securing such guarantee;

•

effectively subordinated to all future ABL Obligations (as defined in the 2024 Indenture) of each 2024 Guarantor, if any, to the extent of the value of the collateral securing the ABL Priority Collateral (as defined in the 2024 Indenture) owned by such 2024 Guarantor;

•

effectively senior in right of payment to all existing and future subordinated indebtedness, if any, of such 2024 Guarantor; and

•

structurally subordinated to all indebtedness and other liabilities of any

non-2024

Guarantor subsidiary of such 2024 Guarantor (excluding, in the case of our guarantee, the Issuers).

The security interests in certain collateral may be released without the consent of holders of the 2024 Senior Secured Notes if such collateral is disposed of in a transaction that complies with the 2024 Indenture and related security agreements, and if any grantor of such security interests is released from its obligations with respect to the 2024 Senior Secured Notes in accordance with the applicable provisions of the 2024 Indenture and related security agreements. Under certain circumstances, GIH and the 2024 Guarantors have the right to transfer certain intellectual property assets that on the Issue Date constitute collateral securing the 2024 Senior Secured Notes or the guarantees to a restricted subsidiary organized under the laws of Switzerland, resulting in the release of such collateral. In addition, the Indenture permits indebtedness incurred under the ABL Obligations to be secured on a first-priority basis by certain of the same collateral that secures the 2024 Senior Secured Notes.

The Issuers may redeem the 2024 Senior Secured Notes, in whole or in part, at any time prior to May 1, 2021, at a redemption price equal to 100% of the principal amount of the 2024 Senior Secured Notes redeemed plus the make-whole premium set forth in the 2024 Indenture as of, and accrued and unpaid interest, if any, to (but not including) the applicable redemption date.

On or after May 1, 2021, the 2024 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 May 1 of the following years:


Year	Redemption Price
2021		104.938	%
2022		102.469	%
2023 and thereafter		100.000	%

In addition, at any time prior to May 1, 2021, the Issuers may redeem up to 40% of the aggregate principal amount of the 2024 Senior Secured Notes with the proceeds of certain equity offerings at a redemption price of 109.875% of the principal amount redeemed, plus accrued and unpaid interest, if any, to (but not including) the date of redemption;

provided, however

that 2024 Senior Secured Notes representing at least 50% of the principal amount of the 2024 Senior Secured Notes remain outstanding immediately after each such redemption.

In addition, if GIH receives cash proceeds in connection with the entry into or continuation of a strategic relationship, or equity from us in connection with the sale of stock to a complimentary business (in each case, a “strategic investment”) at any time prior to May 1, 2020, the Issuers may redeem up to $150 million of the aggregate principal amount of the 2024 Senior Secured Notes at 103% of the principal amount of the 2024 Senior Secured Notes to be redeemed, plus accrued and unpaid interest, if any, to (but not including) the redemption date with the proceeds from such strategic investment.

The 2024 Indenture contains covenants that, among other things, limit the ability of the Issuers and the 2024 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 GIH’s 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. Most of these covenants will cease to apply if, and for as long as, the 2024 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 accompanied by a downgrade in the rating of the 2024 Senior Secured Notes prior to May 1, 2024, GIH is required to make an offer to repurchase for cash all of the 2024 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 2024 Senior Secured Notes issued under the 2024 Indenture to be due and payable immediately. As of June 30, 2019, no event of default had occurred.

2022 Senior Secured

Notes

—On

June 14, 2016, the Issuers issued $525 million aggregate principal amount of 12.500% senior secured notes due 2022 (the “Original 2022 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 “2022 Subsidiary Guarantors” and, together with us, the “2022 Guarantors”), and U.S. Bank National Association, as Trustee and as Collateral Agent. On January 3, 2017, the Issuers issued $65 million aggregate principal amount of additional 12.500% 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 2022 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 12.500% 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 was paid in our January 2018 interest payment. We refer to the Original 2022 Senior Secured Notes, the January 2017 Additional Notes and the September 2017 Additional Notes collectively as the “2022 Senior Secured Notes.”

On April 15, 2019, the Issuers elected to call for redemption in full all $690 million aggregate principal amount outstanding of the 2022 Senior Secured Notes in accordance with the terms of the Indenture. The redemption was conditioned, among other things, upon the incurrence of indebtedness in connection with the issuance of the 2024 Senior Secured Notes or from one or more other sources, in an amount satisfactory to the Issuers which condition was satisfied by the issuance of the 2024 Senior Secured Notes. On April 25, 2019, the Issuers irrevocably deposited, or caused to be irrevocably deposited, with the Trustee funds solely for the benefit of the holders of the 2022 Senior Secured Notes, cash in an amount sufficient to pay principal, premium, if any, and accrued interest on the 2022 Senior Secured Notes to, but not including, the date of redemption and all other sums payable under the Indenture. The Trustee executed and delivered an acknowledgement of satisfaction, discharge and release, dated as of April 25, 2019, among other documents, with respect to the satisfaction and discharge of the 2022 Senior Secured Notes. On May 15, 2019, the 2022 Senior Secured Notes were fully redeemed in accordance with the terms of the Indenture, and the amount deposited with the Trustee on April 25, 2019 was paid to the holders of the 2022 Senior Secured Notes. The make-whole premium paid in connection with the redemption was $51.4 million and we wrote off the remaining unamortized deferred financing costs of $9.1 million and the remaining debt premium of $11.7 million relating to the 2022 Senior Secured Notes in connection with the redemption thereof, which together are included in the loss on extinguishment of debt in our unaudited condensed consolidated statements of operations for the three and six month periods ended June 30, 2019.

We paid approximately $15.9 million of aggregate origination fees and financing costs related to the issuance of the 2022 Senior Secured Notes which were accounted for as deferred financing costs. Additionally, we paid approximately $1.4 million of consent fees in connection with the Supplemental Indenture, which partially offset the net carrying value of the 2022 Senior Secured Notes. Total amortization expense was $0.2 million and $1.0 million, respectively, for the three and six month periods ended June 30, 2019, and $0.7 million and $1.3 million, respectively, for the prior-year periods. As noted above, the remaining unamortized deferred financing costs were written off as of May 15, 2019.

Convertible Notes

2022 Convertible Notes

On November 21, 2018, we issued $215.0 million aggregate principal amount of 6.00% Convertible Senior Notes due 2022 (the “2022 Convertible Notes”) in private offerings to qualified institutional buyers, including pursuant to Rule 144A under the Securities Act, and in concurrent private placements. We granted an option to the initial purchasers to purchase up to an additional $32.3 million aggregate principal amount of 2022 Convertible Notes to cover over-allotments, of which $22.8 million was subsequently exercised during December 2018, resulting in a total issuance of $237.8 million aggregate principal amount of 2022 Convertible Notes. The 2022 Convertible Notes mature on May 15, 2022, 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 2022 Convertible Notes semi-annually in arrears on May 15 and November 15 of each year. Interest payments began on May 15, 2019.

The $237.8 million of proceeds received from the issuance of the 2022 Convertible Notes was initially allocated between long-term debt (the liability component) at $188.7 million and additional

paid-in

capital (the equity component) at $49.1 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 2022 Convertible Notes. If we or the note holders elect not to settle the debt through conversion, we must settle the 2022 Convertible Notes at face value. Therefore, the liability component will be accreted up to the face value of the 2022 Convertible Notes, which will result in additional

non-cash

interest expense being recognized in the unaudited condensed consolidated statements of operations through the 2022 Convertible Notes maturity date (see Note 10, “Interest Costs,” for additional information). The effective interest rate on the 2022 Convertible Notes, including accretion of the notes to par and debt issuance cost amortization, was approximately 13.6%. The equity component will not be remeasured as long as it continues to meet the conditions for equity classification.

As of June 30, 2019 and December 31, 2018, the outstanding principal on the 2022 Convertible Notes was $237.8 million and $237.8 million, respectively, the unaccreted debt discount was $41.9 million and $47.7 million, respectively, and the net carrying amount of the liability component was $195.9 million and $190.1 million, respectively.

We incurred approximately $8.1 million of issuance costs related to the issuance of the 2022 Convertible Notes, of which $6.4 million and $1.7 million were recorded to deferred financing costs and additional

paid-in

capital, respectively, in proportion to the allocation of the proceeds of the 2022 Convertible Notes. The $6.4 million recorded as deferred financing costs on our consolidated balance sheet is being amortized over the term of the 2022 Convertible Notes using the effective interest method. Total amortization expense of the deferred financing costs was $0.4 million and $0.8 million, respectively, for the three and six month periods ended June 30, 2019. Amortization expense is included in interest expense in the unaudited condensed consolidated statements of operations. As of June 30, 2019 and December 31, 2018, the balance of unamortized deferred financing costs related to the 2022 Convertible Notes was $5.4 million and $6.2 million, respectively, and is included as a reduction to long-term debt in our consolidated balance sheets. See Note 10, “Interest Costs,” for additional information.

The 2022 Convertible Notes had an initial conversion rate of 166.6667 common shares per $1,000 principal amount of 2022 Convertible Notes, which is equivalent to an initial conversion price of approximately $6.00 per share of our common stock. Upon conversion, we currently expect to deliver cash up to the principal amount of the 2022 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 2022 Convertible Notes, at their option, in multiples of $1,000 principal amount at any time prior to January 15, 2022, but only in the following circumstances:

•

during any fiscal quarter beginning after the fiscal quarter ended December 31, 2018, 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 2022 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 2022 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 2022 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 January 15, 2022 occurred during the three and six month periods ended June 30, 2019 or the year ended December 31, 2018. Regardless of whether any of the foregoing circumstances occurs, a holder may convert its 2022 Convertible Notes, in multiples of $1,000 principal amount, at any time on or after January 15, 2022 until the second scheduled trading day immediately preceding May 15, 2022.

In addition, if we undergo a fundamental change (as defined in the indenture governing the 2022 Convertible Notes), holders may, subject to certain conditions, require us to repurchase their 2022 Convertible Notes for cash at a price equal to 100% of the principal amount of the 2022 Convertible Notes to be purchased, plus any accrued and unpaid interest. In addition, following a make-whole fundamental change, we will increase the conversion rate in certain circumstances for a holder who elects to convert its 2022 Convertible Notes in connection with such make-whole fundamental change.

2020 Convertible Notes

On March 3, 2015, we issued $340.0 million aggregate principal amount of 3.75% Convertible Senior Notes due 2020 (the “2020 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 2020 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 2020 Convertible Notes. The 2020 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 2020 Convertible Notes semi-annually in arrears on March 1 and September 1 of each year. Interest payments began on September 1, 2015. In November 2018, in connection with the issuance of the 2022 Convertible Notes, we repurchased $199.9 million outstanding principal amount of the 2020 Convertible Notes at par value. As a result of the repurchase, the carrying value of the 2020 Convertible Notes was adjusted by $17.9 million to face value and included in the loss on extinguishment of debt in our consolidated statement of operations for the year ended December 31, 2018.

On April 18, 2019, we commenced a cash tender offer (the “Tender Offer”) to purchase any and all of the outstanding 2020 Convertible Notes for an amount equal to $1,000 per $1,000 principal amount of 2020 Convertible Notes purchased, plus accrued and unpaid interest from the last interest payment date on the 2020 Convertible Notes to, but not including, the date of payment for the 2020 Convertible Notes accepted in the Tender Offer. The Tender Offer expired on May 15, 2019, resulting in the purchase of $159.0 million of outstanding 2020 Convertible Notes. As a result of the Tender Offer, the carrying value of the 2020 Convertible Notes was adjusted by $8.5 million to face value and unamortized deferred financing costs of $0.6 million were expensed. These two items are included in the loss on extinguishment of debt in our unaudited condensed consolidated statements of operations for the three and six month periods ended June 30, 2019.

The $361.9 million of proceeds received from the issuance of the 2020 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 2020 Convertible Notes. If we or the holders of 2020 Convertible Notes elect not to settle the debt through conversion, we must settle the 2020 Convertible Notes at face value. Therefore, the liability component was accreted up to the face value of the 2020 Convertible Notes, which resulted in additional

non-cash

interest expense being recognized in the unaudited condensed consolidated statements of operations (see Note 10, “Interest Costs,” for additional information). The effective interest rate on the 2020 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 June 30, 2019 and December 31, 2018, the outstanding principal on the 2020 Convertible Notes was $3.0 million and $162.0 million, respectively, the unamortized debt discount was zero and $12.8 million, respectively, and the net carrying amount of the liability component was $3.0 million and $149.2 million, respectively.

We incurred approximately $10.4 million of issuance costs related to the issuance of the 2020 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 2020 Convertible Notes. The $7.5 million recorded as deferred financing costs on our consolidated balance sheet is being amortized over the term of the 2020 Convertible Notes using the effective interest method. Total amortization expense of the deferred financing costs was $0.1 million and $0.3 million, respectively, for the three and six month periods ended June 30, 2019 and $0.4 million and $0.8 million, respectively, for the prior-year periods. Amortization expense is included in interest expense in the unaudited condensed consolidated statements of operations. As of June 30, 2019 and December 31, 2018, the balance of unamortized deferred financing costs related to the 2020 Convertible Notes was zero and $0.9 million, respectively, and is included as a reduction to long-term debt in our unaudited condensed consolidated balance sheets. See Note 10, “Interest Costs,” for additional information.

The 2020 Convertible Notes had an initial conversion rate of 41.9274 common shares per $1,000 principal amount of 2020 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 2020 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 2020 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 2020 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 2020 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 2020 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 six month periods ended June 30, 2019 or the year ended December 31, 2018. Regardless of whether any of the foregoing circumstances occurs, a holder may convert its 2020 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 2020 Convertible Notes), holders may, subject to certain conditions, require us to repurchase their 2020 Convertible Notes for cash at a price equal to 100% of the principal amount of the 2020 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 2020 Convertible Notes in connection with such a corporate event in certain circumstances.

Forward Transactions

In connection with the issuance of the 2020 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 2020 Convertible Notes, subject to the ability of each Forward Counterparty to elect to settle all or a portion of its Forward Transactions early. In the future, we may request that any Forward Counterparty modify the settlement terms of its Forward Transaction to provide that, in lieu of the delivery of the applicable number of shares of our common stock to us to settle a portion of its Forward Transaction in accordance with its terms, such Forward Counterparty would pay to us the net proceeds from the sale by such Forward Counterparty (or its affiliate) of a corresponding number of shares of our common stock in a registered offering (which may include block sales, sales on the NASDAQ Global Select Market, sales in the

over-the-counter

market, sales pursuant to negotiated transactions or otherwise, at market prices prevailing at the time of sale or at negotiated prices). Any such sales could potentially decrease (or reduce the size of any increase in) the market price of our common stock. The Forward Counterparties are not required to effect any such settlement in cash in lieu of delivery of shares of our common stock and, if we request for any Forward Counterparty to effect any such settlement, it will be entered into in the discretion of the applicable Forward Counterparty on such terms as we may agree with such Forward Counterparty at the time. As a result of the Forward Transactions, total shareholders’ equity within our 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.

Restricted Cash

—

Our restricted cash balances were $9.0 million and $7.0 million, respectively,

as of June 30, 2019 and December 31, 2018 and primarily consist of letters of credit and cash restricted to repurchase or repay the remaining balance of the 2020 Convertible Notes. 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.

Leases

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Leases

11.

Leases

Operating and Financing

Leases

—We

identify whether a contract contains a lease at contract inception. For leases subsequent to adoption of ASC 842, lease liabilities are calculated using a discount rate based on our incremental borrowing rate at lease commencement. We have operating lease agreements for certain facilities and equipment as well as tower space and base stations. Certain tower space leases have renewal option terms that have been deemed to be reasonably certain to be exercised. These renewal options extend a lease up to

20 years

. We recognize operating lease expense on a straight-line basis over the lease term. As of June 30, 2019, there are no significant leases which have not commenced.

The following is a summary of our lease expense included in the unaudited condensed consolidated statements of operations

(in thousands)


	For the Three Months Ended June 30, 2019		For the Six Months Ended June 30, 2019
Operating lease cost	$	5,194	$	10,112
Financing lease cost
Amortization of leased assets		171		376
Interest on lease liabilities		16		27
Total lease cost	$	5,381	$	10,515

Other information regarding our leases is as follows

(in thousands, except lease terms and discount rates)


	For the Three Months Ended June 30, 2019		For the Six Months Ended June 30, 2019
Supplemental cash flow information
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows used in operating leases	$	5,791	$	11,908
Operating cash flows used in financing leases		16		27
Financing cash flows used in financing leases		258		383
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		768		1,047
Weighted average remaining lease term
Operating leases				8 years
Financing leases				1 year
Weighted average discount rate
Operating leases				10.3	%
Financing leases				8.5	%

Annual future minimum lease payments as of June 30, 2019

(in thousands)


Years ending December 31,	Operating Leases			Financing Leases
2019 (period from July 1 to December 31)	$	11,301		$	300
2020		21,414			192
2021		21,034			—
2022		19,596			—
2023		15,765			—
Thereafter		76,952			—
Total future minimum lease payments		166,062			492
Less: Amount representing interest		(56,878	)		(22	)
Present value of net minimum lease payments	$	109,184		$	470
Reported as of June 30, 2019
Accrued liabilities	$	11,565		$	467
Non-current operating lease liabilities		97,619			—
Other non-current liabilities		—			3
Total lease liabilities	$	109,184		$	470

As of December 31, 2018, annual future minimum obligations for operating leases for each of the next five years and thereafter, were as follows (

in thousands


Years ending December 31,	Operating Leases
2019	$	21,902
2020	$	19,867
2021	$	19,742
2022	$	18,420
2023	$	14,826
Thereafter	$	78,100

Arrangements with Commercial Airlines

—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. Under the turnkey model, 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 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 6, “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 $6.1 million and $15.0 million, respectively, for the three and six month periods ended June 30, 2019 and $7.5 million and $15.1 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 June 30, 2019, deferred airborne lease incentives of $24.7 million and $137.2 million, respectively, are included in current and

non-current

liabilities in our unaudited condensed consolidated balance sheet. As of December 31, 2018, deferred airborne lease incentives of $24.1 million and $129.1 million, respectively, are included in current and

non-current

liabilities in our unaudited condensed consolidated balance sheet.

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 $6.8 million and $10.6 million, respectively, for the three and six month periods ended June 30, 2019 and $6.7 million and $13.1 million, respectively, for the prior-year periods.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

12.	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 June 30, 2019 commit us to purchase transponder and teleport satellite services totaling approximately $59.2 million in 2019 (July 1 through December 31), $108.8 million in 2020, $92.3 million in 2021, $76.2 million in 2022, $63.1 million in 2023 and $166.4 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 delayed in delivering our equipment, 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 the 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.

Linksmart Litigation

—

April 20, 2018

, Linksmart Wireless Technology, LLC filed suit against us and eight of our airline partners in the U.S. District Court for the Central District of California alleging that our redirection server and login portal infringe a patent owned by the plaintiff. The suits seek an unspecified amount of damages. We are required under our contracts with these airlines to indemnify them for defense costs and any liabilities resulting from the suit. The Court has stayed the suits against our airline customers pending resolution of the suit against Gogo. Linksmart has also filed suit against other defendants asserting the same patent. Following the filing by one of those defendants of a petition to commence an

inter partes

review against the asserted patent in the U.S. Patent and Trademark Office, the Court stayed the litigation against such other defendant and Gogo, but such stay was lifted in July 2019 when the U.S. Patent and Trademark Office determined that the petitioner had not met the standard of proof required to commence the

inter partes

review. We believe that the plaintiff’s claims are without merit and intend to defend them vigorously. The outcome of this litigation is inherently uncertain. No amounts have been accrued for any potential losses under this matter, as we cannot reasonably predict the outcome of the litigation or any potential losses.

Securities Litigation

—On

June 27, 2018

, a purported stockholder of the Company filed a putative class action lawsuit in the United States District Court for the Northern District of Illinois, Eastern Division styled Pierrelouis v. Gogo Inc., naming the Company, its former Chief Executive Officer and Chief Financial Officer and its current Chief Financial Officer and President, Commercial Aviation as defendants purportedly on behalf of all purchasers of our securities from February 27, 2017 through May 4, 2018. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule

10b-5

promulgated thereunder, alleging misrepresentations or omissions by us purporting to relate to our 2Ku antenna’s reliability and installation and remediation costs. The plaintiffs seek to recover from us and the individual defendants an unspecified amount of damages. In December 2018 the plaintiffs filed an amended complaint and in February 2019, we filed a motion to dismiss such amended complaint. In April 2019 the plaintiffs filed a response to our motion, and we filed our reply in May 2019. The parties are currently awaiting the Court’s ruling on the motion. We believe that the claims are without merit and intend to continue to defend them vigorously. In accordance with Delaware law, we will indemnify the individual named defendants for their defense costs and any damages they incur in connection with the suit. We have filed a claim with the issuer of our Directors’ and Officers’ insurance policy with respect to this suit. No amounts have been accrued for any potential losses under this matter, as we cannot reasonably predict the outcome of the litigation or any potential losses.

Derivative Litigation

—

September 25, 2018 and September 26, 2018

, two purported stockholders of the Company filed substantively identical derivative lawsuits in the United States District Court for the Northern District of Illinois, Eastern Division, styled Nanduri v. Gogo Inc. and Hutsenpiller v. Gogo Inc., respectively. Both lawsuits were purportedly brought derivatively on behalf of us and name us as a nominal defendant and name as defendants each member of the Company’s Board of Directors, its former Chief Executive Officer and Chief Financial Officer and its current Chief Executive Officer, Chief Financial Officer and President, Commercial Aviation. The complaints assert claims under Section 14(a) of the Securities Exchange Act of 1934, breach of fiduciary duty, unjust enrichment, and waste of corporate assets, and allege misrepresentations or omissions by us purporting to relate to our 2Ku antenna’s reliability and installation and remediation costs, as well as allegedly excessive bonuses, stock options, and other compensation paid to current Officers and Directors and excessive severance paid to former Officers. The two lawsuits were consolidated and are stayed pending the Court’s ruling on the motion to dismiss in the class action suit. We believe that the claims are without merit and intend to defend them vigorously. The plaintiffs seek to recover, on our behalf, an unspecified amount of damages from the individual defendants. We have filed a claim with the issuer of our Directors’ and Officers’ insurance policy with respect to these suits. No amounts have been accrued for any potential costs under this matter, as we cannot reasonably predict the outcome of the litigation or any potential costs.

Fair Value of Financial Assets and Liabilities

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets and Liabilities

13.	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:

•

Level

—

defined as observable inputs such as quoted prices in active markets;

•

Level

—

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

•

Level

—

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 2024 Senior Secured Notes, 2022 Convertible Notes, 2020 Convertible Notes and, while outstanding, the 2022 Senior Secured 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 2024 Senior Secured Notes, 2022 Convertible Notes, 2020 Convertible Notes, and, while outstanding, the 2022 Senior Secured 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 June 30, 2019 unaudited condensed consolidated balance sheet, excluding any issuance costs, is the amount that a market participant would be willing to lend at June 30, 2019 to an entity with a credit rating similar to ours and achieve sufficient cash inflows to cover the scheduled cash outflows under the 2024 Senior Secured Notes, 2022 Convertible Notes and 2020 Convertible Notes. The calculated fair value of our 2022 Convertible Notes and 2020 Convertible Notes is correlated to our stock price and as a result, significant changes to our stock price could have a significant impact on their calculated fair values.

The fair value and carrying value of long-term debt as of June 30, 2019 and December 31, 2018 were as follows

(in thousands)


	June 30, 2019					December 31, 2018
	Fair Value (1)		Carrying Value			Fair Value (1)		Carrying Value
2024 Senior Secured Notes	$	955,000	$	920,800	(2)	$	—	$	—
2022 Senior Secured Notes		—		—			737,000		702,670	(3)
2022 Convertible Notes		221,000		195,867	(4)		216,000		190,083	(4)
2020 Convertible Notes		3,000		3,046			150,000		149,195	(5)

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

(2)	Carrying value of the 2024 Senior Secured Notes reflects the unaccreted debt discount of $4.2 million as of June 30, 2019. See Note 9, “Long-Term Debt and Other Liabilities,” for further information.

(3)	Carrying value of the 2022 Senior Secured Notes reflects the unamortized debt premium and Consent Fees of $12.7 million as of December 31, 2018. See Note 9, “Long-Term Debt and Other Liabilities,” for further information.

(4)	Carrying value of the 2022 Convertible Notes reflects the unaccreted debt discount of $41.9 million and $47.7 million, respectively, as of June 30, 2019 and December 31, 2018. See Note 9, “Long-Term Debt and Other Liabilities,” for further information.

(5)	Carrying value of the 2020 Convertible Notes reflects the unaccreted debt discount of $12.8 million as of December 31, 2018. See Note 9, “Long-Term Debt and Other Liabilities,” for further information.

We have

held-to-maturity

financial instruments where carrying value approximates fair value. There were

fair value adjustments to these financial instruments during the three and six month periods ended June 30, 2019 and 2018.

- 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

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Income Tax

14.	Income Tax

The effective income tax rates for the three and six month periods ended June 30, 2019 were (0.4)% and (0.5)%, respectively, as compared with (0.2)% and 5.4%, respectively, for the prior-year periods. For the three and six month periods ended June 30, 2019, our income tax expense was not significant primarily due to the recording of a valuation allowance against our net deferred tax assets. An income tax benefit was recorded for the six month period ended June 30, 2018 resulting from a reduction in our valuation allowance of approximately $4.0 million due to the application of provisions of H.R. 1, commonly known as the Tax Cuts and Jobs Act (“U.S. Tax Reform”), to our evaluation of our 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, India, France, Germany and the Netherlands. With few exceptions, as of June 30, 2019, we are no longer subject to U.S. federal, state, local or foreign examinations by tax authorities for years before 2015.

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.

penalties or interest related to uncertain tax positions were recorded for the three and six month periods ended June 30, 2019 and 2018. As of June 30, 2019 and December 31, 2018, 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

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Business Segments and Major Customers

15.	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 2018

10-K.

Intercompany transactions between segments are excluded as they are not included in management’s performance review of the segments. For the three and six month periods ended June 30, 2019 and 2018, our foreign revenue accounted for less than 15% of our consolidated revenue. We do not segregate assets between segments for internal reporting. Therefore, asset-related information has not been presented. Additionally, assets outside of the United States totaled less than 15% of our unaudited condensed consolidated assets as of June 30, 2019 and December 31, 2018, respectively. 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

items (including amortization of deferred airborne lease incentives, stock-based compensation expense, loss on extinguishment of debt, amortization of STC costs and the accounting impact of the transition to the airline-directed model) 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 June 30, 2019
	CA-NA		CA-ROW			BA		Total
Service revenue	$	96,402	$	22,573		$	54,756	$	173,731
Equipment revenue		9,325		14,144			16,485		39,954
Total revenue	$	105,727	$	36,717		$	71,241	$	213,685
Segment profit (loss)	$	24,171	$	(17,265	)	$	31,290	$	38,196


	For the Three Months Ended June 30, 2018
	CA-NA		CA-ROW			BA		Total
Service revenue	$	95,746	$	15,185		$	48,125	$	159,056
Equipment revenue		23,904		18,460			26,038		68,402
Total revenue	$	119,650	$	33,645		$	74,163	$	227,458
Segment profit (loss)	$	7,041	$	(24,474	)	$	36,679	$	19,246


	For the Six Months Ended June 30, 2019
	CA-NA		CA-ROW			BA		Total
Service revenue	$	188,429	$	42,345		$	107,969	$	338,743
Equipment revenue		13,367		27,303			33,821		74,491
Total revenue	$	201,796	$	69,648		$	141,790	$	413,234
Segment profit (loss)	$	47,713	$	(36,414	)	$	64,788	$	76,087


	For the Six Months Ended June 30, 2018
	CA-NA		CA-ROW			BA		Total
Service revenue	$	184,529	$	29,430		$	95,775	$	309,734
Equipment revenue (1)		78,942		23,384			47,223		149,549
Total revenue	$	263,471	$	52,814		$	142,998	$	459,283
Segment profit (loss)	$	8,697	$	(47,079	)	$	69,002	$	30,620

(1)	CA-NA equipment revenue for the six month period ended June 30, 2018 includes the accounting impact of the transition of one of our airline partners to the airline-directed model. See Note 1, “Basis of Presentation,” for additional information.

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

in thousands


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2019			2018			2019			2018
CA-NA segment profit	$	24,171		$	7,041		$	47,713		$	8,697
CA-ROW segment loss		(17,265	)		(24,474	)		(36,414	)		(47,079	)
BA segment profit		31,290			36,679			64,788			69,002
Total segment profit		38,196			19,246			76,087			30,620
Interest income		1,230			1,328			2,379			2,404
Interest expense		(36,150	)		(30,641	)		(68,704	)		(61,195	)
Depreciation and amortization		(29,967	)		(31,938	)		(60,716	)		(67,857	)
Transition to airline-directed model		—			2,249			—			21,551
Amortization of deferred airborne lease incentives (1)		6,077			7,462			15,030			15,092
Amortization of STC costs		(322	)		(255	)		(642	)		(427	)
Stock-based compensation expense		(4,318	)		(4,213	)		(8,645	)		(8,599	)
Loss on extinguishment of debt		(57,962	)		—			(57,962	)		—
Other income (expense)		(443	)		(374	)		2,922			131
Loss before income taxes	$	(83,659	)	$	(37,136	)	$	(100,251	)	$	(68,280	)

(1)	Amortization of deferred airborne lease incentive relates to our CA-NA and CA-ROW segments. See Note 11, “Leases,” for further information.

Major Customers and Airline Partnerships

—Revenue earned from Delta Air Lines and its passengers accounted for approximately 28% of consolidated revenue for both the three and six month periods ended June 30, 2019 and approximately 23% and 22%, respectively, for the prior-year periods. Delta Air Lines accounted for approximately

% of consolidated accounts receivable as of both June 30, 2019 and December 31, 2018.

During the three and six month periods ended June 30, 2019, American Airlines accounted for approximately 12% and 11% of consolidated revenue, respectively, and approximately 22% and 29%, respectively, for the prior-year periods. Revenue earned from American Airlines for the six month period ended June 30, 2018 included $45.4 million of equipment revenue recognized due to the airline’s transition to the airline-directed model in January 2018. See Note 1, “Basis of Presentation,” for additional information. American Airlines accounted for approximately 13% and 11%, respectively, of consolidated accounts receivable as of June 30, 2019 and December 31, 2018.

One other airline accounted for approximately

% of consolidated accounts receivable as of June 30, 2019.

Employee Retirement and Postretirement Benefits

6 Months Ended

Jun. 30, 2019

Text Block [Abstract]

Employee Retirement and Postretirement Benefits

16.	Employee Retirement and Postretirement Benefits

Stock-Based Compensation—

As of June 30, 2019, we maintained three stock-based employee compensation plans (“Stock Plans”). See Note 12, “Stock-Based Compensation,” in our 2018

10-K

for further information regarding these plans. Most of our equity grants are awarded on an annual basis.

For the six month period ended June 30, 2019, options to purchase 1,437,988 shares of common stock (of which 148,500 are options that contain a market condition and 50,000 contain a performance condition, in addition to the time-based vesting requirements) were granted, no options to purchase shares of common stock were exercised, options to purchase 456,431 (of which 278,146 options contain a market condition) shares of common stock were forfeited, and options to purchase 20,675 shares of common stock expired.

For the six month period ended June 30, 2019, 2,038,988 Restricted Stock Units (“RSUs”) (of which 86,000 are RSUs that contain a market condition and 50,000 contain a performance condition, in addition to the time-based vesting requirements) were granted, 447,646 RSUs vested and 379,521 RSUs (of which 109,760 contained a market condition) were forfeited.

For the six month period ended June 30, 2019, 64,995 restricted shares vested. These shares are deemed issued as of the date of grant, but not outstanding until they vest.

For the six month period ended June 30, 2019,

113,744

Deferred Stock Units were granted and vested.

For the six month period ended June 30, 2019, 157,158 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 Ended June 30,				For the Six Months Ended June 30,
	2019		2018		2019		2018
Cost of service revenue	$	374	$	447	$	802	$	881
Cost of equipment revenue		80		59		151		113
Engineering, design and development		780		783		1,554		1,693
Sales and marketing		967		1,226		1,937		2,308
General and administrative		2,117		1,698		4,201		3,604
Total stock-based compensation expense	$	4,318	$	4,213	$	8,645	$	8,599

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 $1.4 million and $2.6 million, respectively, during the three and six month periods ended June 30, 2019, and $1.3 million and $2.6 million, respectively, for the prior-year periods.

Research and Development Costs

6 Months Ended

Jun. 30, 2019

Research and Development [Abstract]

Research and Development Costs

17.	Research and Development Costs

Expenditures for research and development are charged to expense as incurred and totaled $17.6 million and $31.7 million, respectively, during the three and six month periods ended June 30, 2019, and $18.0 million and $37.1 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.

Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Basis of Presentation

The Business

—

Gogo (“we,” “us,” “our”) is the global leader in providing broadband connectivity solutions and wireless

in-flight

entertainment to the aviation industry. 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

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

—

S-X

10-K

for the year ended December 31, 2018 as filed with the Securities and Exchange Commission (“SEC”) on February 21, 2019 (the “2018

10-K”).

We have

one

class of common stock outstanding as of June 30, 2019 and December 31, 2018.

Reclassifications

—

Transition to airline-directed model

Transition of airline models

—

non-current

contract assets included within prepaid expenses and other current assets and other

non-current

in thousands


	Increase (decrease)
Unaudited condensed consolidated balance sheet
Prepaid expense and other current assets	$	6,603
Property and equipment, net		(32,716	)
Other non-current assets		18,783
Accrued liabilities		2,000
Current deferred airborne lease incentive		(13,592	)
Non-current deferred airborne lease incentive		(17,289	)
Unaudited condensed consolidated statement of operations
Equipment revenue		45,396
Cost of equipment revenue		23,845

—

Inventories,” in our 2018

10-K

for information regarding the allocation of airborne equipment between Inventories and Property and equipment, net.

Use of Estimates

—

Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2019

Summary of Revenue Disaggregated by Category

The following table presents our revenue disaggregated by category

(in thousands)


	For the Three Months Ended June 30, 2019
	CA-NA		CA-ROW		BA		Total
Service revenue
Connectivity	$	90,233	$	21,656	$	54,176	$	166,065
Entertainment, CAS and other		6,169		917		580		7,666
Total service revenue	$	96,402	$	22,573	$	54,756	$	173,731
Equipment revenue
ATG	$	5,636	$	—	$	12,344	$	17,980
Satellite		3,329		14,144		3,809		21,282
Other		360		—		332		692
Total equipment revenue	$	9,325	$	14,144	$	16,485	$	39,954
Customer type
Airline passenger and aircraft owner/operator	$	55,900	$	6,767	$	54,756	$	117,423
Airline, OEM and aftermarket dealer		36,883		27,680		16,485		81,048
Third party		12,944		2,270		—		15,214
Total revenue	$	105,727	$	36,717	$	71,241	$	213,685


	For the Three Months Ended June 30, 2018
	CA-NA		CA-ROW		BA		Total
Service revenue
Connectivity	$	88,833	$	14,548	$	47,831	$	151,212
Entertainment, CAS and other		6,913		637		294		7,844
Total service revenue	$	95,746	$	15,185	$	48,125	$	159,056
Equipment revenue
ATG	$	2,254	$	—	$	20,497	$	22,751
Satellite		21,650		18,460		4,461		44,571
Other		—		—		1,080		1,080
Total equipment revenue	$	23,904	$	18,460	$	26,038	$	68,402
Customer type
Airline passenger and aircraft owner/operator	$	54,718	$	5,097	$	48,125	$	107,940
Airline, OEM and aftermarket dealer		49,141		26,311		26,038		101,490
Third party		15,791		2,237		—		18,028
Total revenue	$	119,650	$	33,645	$	74,163	$	227,458


	For the Six Months Ended June 30, 2019
	CA-NA		CA-ROW		BA		Total
Service revenue
Connectivity	$	170,051	$	40,510	$	106,861	$	317,422
Entertainment, CAS and other		18,378		1,835		1,108		21,321
Total service revenue	$	188,429	$	42,345	$	107,969	$	338,743
Equipment revenue
ATG	$	8,508	$	—	$	23,679	$	32,187
Satellite		3,959		27,303		9,044		40,306
Other		900		—		1,098		1,998
Total equipment revenue	$	13,367	$	27,303	$	33,821	$	74,491
Customer type
Airline passenger and aircraft owner/operator	$	110,249	$	12,618	$	107,969	$	230,836
Airline, OEM and aftermarket dealer		67,796		53,171		33,821		154,788
Third party		23,751		3,859		—		27,610
Total revenue	$	201,796	$	69,648	$	141,790	$	413,234


	For the Six Months Ended June 30, 2018
	CA-NA		CA-ROW		BA		Total
Service revenue
Connectivity	$	170,873	$	28,197	$	95,223	$	294,293
Entertainment, CAS and other		13,656		1,233		552		15,441
Total service revenue	$	184,529	$	29,430	$	95,775	$	309,734
Equipment revenue
ATG (1)	$	47,016	$	—	$	35,918	$	82,934
Satellite (1)		31,926		23,384		8,719		64,029
Other		—		—		2,586		2,586
Total equipment revenue	$	78,942	$	23,384	$	47,223	$	149,549
Customer type
Airline passenger and aircraft owner/operator	$	107,642	$	9,826	$	95,775	$	213,243
Airline, OEM and aftermarket dealer (2)		126,567		39,005		47,223		212,795
Third party		29,262		3,983		—		33,245
Total revenue	$	263,471	$	52,814	$	142,998	$	459,283

ATG and satellite equipment revenue for the

CA-NA

2)	Airline, OEM and aftermarket dealer revenue includes all equipment revenue for our three segments, including the $45.4 million accounting impact of the transition of one of our airline partners to the airline-directed model.

Inventories (Tables)

6 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

Components of Inventories

Inventories as of June 30, 2019 and December 31, 2018 were as follows (

in thousands


	June 30, 2019		December 31, 2018
Work-in-process component parts	$	31,343	$	30,340
Finished goods (1)		120,190		162,705
Total inventory	$	151,533	$	193,045

(1)	The change between June 30, 2019 and December 31, 2018 primarily relates to the accounting impact of one of our airline partner agreements transitioning to the turnkey model (see Note 1, “Basis of Presentation,” for additional information).

Composition of Certain Balance Sheet Accounts (Tables)

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets as of June 30, 2019 and December 31, 2018 were as follows (

in thousands


	June 30, 2019		December 31, 2018
Contract assets	$	13,056	$	10,423
Prepaid satellite services		5,344		7,755
Restricted cash		1,035		1,535
Other		11,023		14,982
Total prepaid expenses and other current assets	$	30,458	$	34,695

Property and Equipment

Property and equipment as of June 30, 2019 and December 31, 2018 were as follows (

in thousands


	June 30, 2019			December 31, 2018
Office equipment, furniture, fixtures and other	$	54,626		$	52,320
Leasehold improvements		44,842			44,838
Airborne equipment (1)		720,925			642,151
Network equipment		209,189			205,463
		1,029,582			944,772
Accumulated depreciation		(479,674	)		(432,905	)
Total property and equipment, net	$	549,908		$	511,867

(1)	The change between June 30, 2019 and December 31, 2018 primarily relates to the accounting impact of one of our airline partner agreements transitioning to the turnkey model (see Note 1, “Basis of Presentation,” for additional information).

Schedule of Other Non-Current Assets

Other

non-current

assets as of June 30, 2019 and December 31, 2018 were as follows (

in thousands


	June 30, 2019		December 31, 2018
Contract assets	$	67,937	$	49,517
Deferred STC costs		19,316		16,453
Restricted cash		7,972		5,426
Other		9,319		12,816
Total other non-current assets	$	104,544	$	84,212

Accrued Liabilities

Accrued liabilities as of June 30, 2019 and December 31, 2018 were as follows (

in thousands


	June 30, 2019		December 31, 2018
Airline related accrued liabilities	$	66,998	$	53,527
Accrued interest		18,319		46,694
Employee compensation and benefits		16,987		19,463
Airborne equipment and installation costs		13,266		25,119
Accrued satellite network costs		13,472		19,557
Warranty reserve		13,357		12,291
Operating leases (1)		11,565		—
Other		31,229		36,460
Total accrued liabilities	$	185,193	$	213,111

(1)	The change between June 30, 2019 and December 31, 2018 is due to the adoption of ASC 842. See Note 2, “Recent Accounting Pronouncements,” for additional information.

Other Non-Current Liabilities

Other

non-current

liabilities as of June 30, 2019 and December 31, 2018 were as follows (

in thousands


	June 30, 2019		December 31, 2018
Deferred revenue	$	25,648	$	21,482
Deferred rent (1)		—		35,897
Asset retirement obligations		10,170		9,696
Deferred tax liabilities		2,251		2,162
Other		10,417		10,954
Total other non-current liabilities	$	48,486	$	80,191

(1)	The change between June 30, 2019 and December 31, 2018 is due to the adoption of ASC 842. See Note 2, “Recent Accounting Pronouncements,” for additional information.

Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets, Other than Goodwill

Our intangible assets, other than goodwill, as of June 30, 2019 and December 31, 2018 were as follows (

in thousands, except for weighted average remaining useful life


	Weighted Average Remaining Useful Life (in years)		As of June 30, 2019							As of December 31, 2018
	Weighted Average Remaining Useful Life (in years)		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortized intangible assets:
Software		2.7	$	172,712	$	(126,801	)	$	45,911	$	164,580	$	(116,873	)	$	47,707
Service customer relationship		0.8		8,081		(7,312	)		769		8,081		(6,804	)		1,277
Other intangible assets		7.8		3,000		(1,422	)		1,578		3,000		(1,396	)		1,604
OEM and dealer relationships				6,724		(6,724	)		—		6,724		(6,724	)		—
Total amortized intangible assets				190,517		(142,259	)		48,258		182,385		(131,797	)		50,588
Unamortized intangible assets:
FCC Licenses				32,283		—			32,283		32,283		—			32,283
Total intangible assets			$	222,800	$	(142,259	)	$	80,541	$	214,668	$	(131,797	)	$	82,871

Summary of Amortization Expenses

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

in thousands


Years ending December 31,	Amortization Expense
2019 (period from July 1 to December 31)	$	10,671
2020	$	17,229
2021	$	12,281
2022	$	6,100
2023	$	1,201
Thereafter	$	776

Long-Term Debt and Other Liabilities (Tables)

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

Long-term debt as of June 30, 2019 and December 31, 2018 was as follows (

in thousands


	June 30, 2019			December 31, 2018
2024 Senior Secured Notes	$	920,800		$	—
2022 Senior Secured Notes		—			702,670
2022 Convertible Notes		195,867			190,083
2020 Convertible Notes		3,046			149,195
Total debt		1,119,713			1,041,948
Less deferred financing costs		(27,392	)		(17,055	)
Total long-term debt	$	1,092,321		$	1,024,893

Summary of Redemption Prices Plus Accrued and Unpaid Interest

the 2024 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 May 1 of the following years:


Year	Redemption Price
2021		104.938	%
2022		102.469	%
2023 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

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-Paragraph 1
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-Topic 505
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Leases (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Lease expense included in the unaudited condensed consolidated statements of operations

The following is a summary of our lease expense included in the unaudited condensed consolidated statements of operations

(in thousands)


	For the Three Months Ended June 30, 2019		For the Six Months Ended June 30, 2019
Operating lease cost	$	5,194	$	10,112
Financing lease cost
Amortization of leased assets		171		376
Interest on lease liabilities		16		27
Total lease cost	$	5,381	$	10,515

Schedule Includes Other information About Leases

Other information regarding our leases is as follows

(in thousands, except lease terms and discount rates)


	For the Three Months Ended June 30, 2019		For the Six Months Ended June 30, 2019
Supplemental cash flow information
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows used in operating leases	$	5,791	$	11,908
Operating cash flows used in financing leases		16		27
Financing cash flows used in financing leases		258		383
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		768		1,047
Weighted average remaining lease term
Operating leases				8 years
Financing leases				1 year
Weighted average discount rate
Operating leases				10.3	%
Financing leases				8.5	%

Annual future minimum lease payments

Annual future minimum lease payments as of June 30, 2019

(in thousands)


Years ending December 31,	Operating Leases			Financing Leases
2019 (period from July 1 to December 31)	$	11,301		$	300
2020		21,414			192
2021		21,034			—
2022		19,596			—
2023		15,765			—
Thereafter		76,952			—
Total future minimum lease payments		166,062			492
Less: Amount representing interest		(56,878	)		(22	)
Present value of net minimum lease payments	$	109,184		$	470
Reported as of June 30, 2019
Accrued liabilities	$	11,565		$	467
Non-current operating lease liabilities		97,619			—
Other non-current liabilities		—			3
Total lease liabilities	$	109,184		$	470

As of December 31, 2018, annual future minimum obligations for operating leases for each of the next five years and thereafter, were as follows (

in thousands


Years ending December 31,	Operating Leases
2019	$	21,902
2020	$	19,867
2021	$	19,742
2022	$	18,420
2023	$	14,826
Thereafter	$	78,100

Fair Value of Financial Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2019

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 June 30, 2019 and December 31, 2018 were as follows

(in thousands)


	June 30, 2019					December 31, 2018
	Fair Value (1)		Carrying Value			Fair Value (1)		Carrying Value
2024 Senior Secured Notes	$	955,000	$	920,800	(2)	$	—	$	—
2022 Senior Secured Notes		—		—			737,000		702,670	(3)
2022 Convertible Notes		221,000		195,867	(4)		216,000		190,083	(4)
2020 Convertible Notes		3,000		3,046			150,000		149,195	(5)

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

(2)	Carrying value of the 2024 Senior Secured Notes reflects the unaccreted debt discount of $4.2 million as of June 30, 2019. See Note 9, “Long-Term Debt and Other Liabilities,” for further information.

(3)	Carrying value of the 2022 Senior Secured Notes reflects the unamortized debt premium and Consent Fees of $12.7 million as of December 31, 2018. See Note 9, “Long-Term Debt and Other Liabilities,” for further information.

(4)	Carrying value of the 2022 Convertible Notes reflects the unaccreted debt discount of $41.9 million and $47.7 million, respectively, as of June 30, 2019 and December 31, 2018. See Note 9, “Long-Term Debt and Other Liabilities,” for further information.

(5)	Carrying value of the 2020 Convertible Notes reflects the unaccreted debt discount of $12.8 million as of December 31, 2018. See Note 9, “Long-Term Debt and Other Liabilities,” for further information.

Business Segments and Major Customers (Tables)

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Summary of Reportable Segments

Information regarding our reportable segments is as follows (

in thousands


	For the Three Months Ended June 30, 2019
	CA-NA		CA-ROW			BA		Total
Service revenue	$	96,402	$	22,573		$	54,756	$	173,731
Equipment revenue		9,325		14,144			16,485		39,954
Total revenue	$	105,727	$	36,717		$	71,241	$	213,685
Segment profit (loss)	$	24,171	$	(17,265	)	$	31,290	$	38,196


	For the Three Months Ended June 30, 2018
	CA-NA		CA-ROW			BA		Total
Service revenue	$	95,746	$	15,185		$	48,125	$	159,056
Equipment revenue		23,904		18,460			26,038		68,402
Total revenue	$	119,650	$	33,645		$	74,163	$	227,458
Segment profit (loss)	$	7,041	$	(24,474	)	$	36,679	$	19,246


	For the Six Months Ended June 30, 2019
	CA-NA		CA-ROW			BA		Total
Service revenue	$	188,429	$	42,345		$	107,969	$	338,743
Equipment revenue		13,367		27,303			33,821		74,491
Total revenue	$	201,796	$	69,648		$	141,790	$	413,234
Segment profit (loss)	$	47,713	$	(36,414	)	$	64,788	$	76,087


	For the Six Months Ended June 30, 2018
	CA-NA		CA-ROW			BA		Total
Service revenue	$	184,529	$	29,430		$	95,775	$	309,734
Equipment revenue (1)		78,942		23,384			47,223		149,549
Total revenue	$	263,471	$	52,814		$	142,998	$	459,283
Segment profit (loss)	$	8,697	$	(47,079	)	$	69,002	$	30,620

(1)	CA-NA equipment revenue for the six month period ended June 30, 2018 includes the accounting impact of the transition of one of our airline partners to the airline-directed model. See Note 1, “Basis of Presentation,” for additional information.

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 Ended June 30,						For the Six Months Ended June 30,
	2019			2018			2019			2018
CA-NA segment profit	$	24,171		$	7,041		$	47,713		$	8,697
CA-ROW segment loss		(17,265	)		(24,474	)		(36,414	)		(47,079	)
BA segment profit		31,290			36,679			64,788			69,002
Total segment profit		38,196			19,246			76,087			30,620
Interest income		1,230			1,328			2,379			2,404
Interest expense		(36,150	)		(30,641	)		(68,704	)		(61,195	)
Depreciation and amortization		(29,967	)		(31,938	)		(60,716	)		(67,857	)
Transition to airline-directed model		—			2,249			—			21,551
Amortization of deferred airborne lease incentives (1)		6,077			7,462			15,030			15,092
Amortization of STC costs		(322	)		(255	)		(642	)		(427	)
Stock-based compensation expense		(4,318	)		(4,213	)		(8,645	)		(8,599	)
Loss on extinguishment of debt		(57,962	)		—			(57,962	)		—
Other income (expense)		(443	)		(374	)		2,922			131
Loss before income taxes	$	(83,659	)	$	(37,136	)	$	(100,251	)	$	(68,280	)

(1)	Amortization of deferred airborne lease incentive relates to our CA-NA and CA-ROW segments. See Note 11, “Leases,” for further information.

Employee Retirement and Postretirement Benefits (Tables)

6 Months Ended

Jun. 30, 2019

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 Ended June 30,				For the Six Months Ended June 30,
	2019		2018		2019		2018
Cost of service revenue	$	374	$	447	$	802	$	881
Cost of equipment revenue		80		59		151		113
Engineering, design and development		780		783		1,554		1,693
Sales and marketing		967		1,226		1,937		2,308
General and administrative		2,117		1,698		4,201		3,604
Total stock-based compensation expense	$	4,318	$	4,213	$	8,645	$	8,599

Basis of Presentation - Additional Information (Detail) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019 USD ($) Segment ClassOfCommonStock	Dec. 31, 2018 USD ($) ClassOfCommonStock	Jan. 01, 2019 USD ($)
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Property, Plant and Equipment, Net	$ 549,908	$ 511,867
Number Of Classes Of Common Stock Outstanding \| ClassOfCommonStock	1	1
Number of Operating Segments \| Segment	3
Current Financing Lease Liabilities [Member] \| Previously Reported [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Accrued Liabilities		$ 652
Air Line Inventory [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Property, Plant and Equipment, Net			$ 46,800

Basis of Presentation - Summary of Financial Effects Due to Transition of Agreements (Detail) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Prepaid expense and other current assets	$ 30,458			$ 30,458		$ 34,695
Property and equipment, net	(549,908)			(549,908)		(511,867)
Other non-current assets	104,544			104,544		84,212
Accrued liabilities	185,193			185,193		213,111
Current deferred airborne lease incentive	24,737			24,737		24,145
Non-current deferred airborne lease incentive	137,231			137,231		$ 129,086
Equipment revenue	213,685		$ 227,458	413,234	$ 459,283
Cost of equipment revenue	$ 35,571		$ 64,350	$ 65,302	$ 116,643
Transition Agreements To Airline-directed Model [Member]
Prepaid expense and other current assets		$ 6,603
Property and equipment, net		(32,716)
Other non-current assets		18,783
Accrued liabilities		2,000
Current deferred airborne lease incentive		(13,592)
Non-current deferred airborne lease incentive		(17,289)
Equipment revenue		45,396
Cost of equipment revenue		$ 23,845

Recent Accounting Pronouncements - Summary of Adoption Impact of ASC 842 on Unaudited Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Assets
Operating lease right-of-use assets	$ 68,702
Liabilities
Accrued liabilities	185,193		$ 213,111
Non-current operating lease liabilities	97,619
Other non-current liabilities	48,486		80,191
Equity
Accumulated deficit	(1,332,529)		$ (1,228,674)
Accounting Standards Update 2016-02 [Member]
Assets
Operating lease right-of-use assets		$ 72,188
Liabilities
Accrued liabilities		222,130
Non-current operating lease liabilities		102,440
Other non-current liabilities		44,013
Equity
Accumulated deficit		$ (1,231,767)
Difference between Guidance in Effect Before and after Topic 606 and ASC 34040 [Member] \| Accounting Standards Update 2016-02 [Member]
Assets
Operating lease right-of-use assets	72,188
Liabilities
Accrued liabilities	9,019
Non-current operating lease liabilities	102,440
Other non-current liabilities	(36,178)
Equity
Accumulated deficit	$ (3,093)

Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Revenue from Contracts with Customers [Line Items]
Transaction price allocated to remaining performance obligations	$ 784.0		$ 784.0
Service revenue occurring period			1 year
Future equipment revenue recognition period			next one to three years
Future Equipment Revenue [Member]
Revenue from Contracts with Customers [Line Items]
Equipment revenue			$ 101.0
Connectivity and Entertainment Service Revenues [Member]
Revenue from Contracts with Customers [Line Items]
Transaction price allocated to remaining performance obligations	683.0		683.0
Airline [Member]
Revenue from Contracts with Customers [Line Items]
Contract assets, current and non-current	81.0		81.0		$ 59.9
Accounting Standards Update 2014-09 [Member]
Revenue from Contracts with Customers [Line Items]
Deferred revenue, current and non-current	56.2		56.2		60.1
Deferred STC costs	19.3		19.3		$ 16.5
Accounting Standards Update 2014-09 [Member] \| Engineering, Design and Development [Member]
Revenue from Contracts with Customers [Line Items]
Amortization expense	$ 0.3	$ 0.2	$ 0.6	$ 0.4

Revenue Recognition - Summary of Revenue Disaggregated by Category (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	$ 213,685	$ 227,458	$ 413,234	$ 459,283
Airline Passenger and Aircraft Owner/Operator [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	117,423	107,940	230,836	213,243
Airline, OEM and Aftermarket Dealer [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	81,048	101,490	154,788	212,795
Third Party [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	15,214	18,028	27,610	33,245
Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	173,731	159,056	338,743	309,734
Service Revenue [Member] \| Connectivity [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	166,065	151,212	317,422	294,293
Service Revenue [Member] \| Entertainment, CAS and Other [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	7,666	7,844	21,321	15,441
Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	39,954	68,402	74,491	149,549
Equipment Revenue [Member] \| ATG [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	17,980	22,751	32,187	82,934
Equipment Revenue [Member] \| Satellite [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	21,282	44,571	40,306	64,029
Equipment Revenue [Member] \| Other [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	692	1,080	1,998	2,586
CA-NA [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	105,727	119,650	201,796	263,471
CA-NA [Member] \| Airline Passenger and Aircraft Owner/Operator [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	55,900	54,718	110,249	107,642
CA-NA [Member] \| Airline, OEM and Aftermarket Dealer [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	36,883	49,141	67,796	126,567
CA-NA [Member] \| Third Party [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	12,944	15,791	23,751	29,262
CA-NA [Member] \| Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	96,402	95,746	188,429	184,529
CA-NA [Member] \| Service Revenue [Member] \| Connectivity [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	90,233	88,833	170,051	170,873
CA-NA [Member] \| Service Revenue [Member] \| Entertainment, CAS and Other [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	6,169	6,913	18,378	13,656
CA-NA [Member] \| Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	9,325	23,904	13,367	78,942
CA-NA [Member] \| Equipment Revenue [Member] \| ATG [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	5,636	2,254	8,508	47,016
CA-NA [Member] \| Equipment Revenue [Member] \| Satellite [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	3,329	21,650	3,959	31,926
CA-NA [Member] \| Equipment Revenue [Member] \| Other [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	360		900
CA-ROW [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	36,717	33,645	69,648	52,814
CA-ROW [Member] \| Airline Passenger and Aircraft Owner/Operator [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	6,767	5,097	12,618	9,826
CA-ROW [Member] \| Airline, OEM and Aftermarket Dealer [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	27,680	26,311	53,171	39,005
CA-ROW [Member] \| Third Party [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	2,270	2,237	3,859	3,983
CA-ROW [Member] \| Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	22,573	15,185	42,345	29,430
CA-ROW [Member] \| Service Revenue [Member] \| Connectivity [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	21,656	14,548	40,510	28,197
CA-ROW [Member] \| Service Revenue [Member] \| Entertainment, CAS and Other [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	917	637	1,835	1,233
CA-ROW [Member] \| Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	14,144	18,460	27,303	23,384
CA-ROW [Member] \| Equipment Revenue [Member] \| Satellite [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	14,144	18,460	27,303	23,384
BA [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	71,241	74,163	141,790	142,998
BA [Member] \| Airline Passenger and Aircraft Owner/Operator [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	54,756	48,125	107,969	95,775
BA [Member] \| Airline, OEM and Aftermarket Dealer [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	16,485	26,038	33,821	47,223
BA [Member] \| Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	54,756	48,125	107,969	95,775
BA [Member] \| Service Revenue [Member] \| Connectivity [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	54,176	47,831	106,861	95,223
BA [Member] \| Service Revenue [Member] \| Entertainment, CAS and Other [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	580	294	1,108	552
BA [Member] \| Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	16,485	26,038	33,821	47,223
BA [Member] \| Equipment Revenue [Member] \| ATG [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	12,344	20,497	23,679	35,918
BA [Member] \| Equipment Revenue [Member] \| Satellite [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	3,809	4,461	9,044	8,719
BA [Member] \| Equipment Revenue [Member] \| Other [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	$ 332	$ 1,080	$ 1,098	$ 2,586

Revenue Recognition - Summary of Revenue Disaggregated by Category (Parenthetical) (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2019 USD ($) Segment
Disaggregation of Revenue [Line Items]
Number of operating segments \| Segment	3
ATG [Member] \| CA-NA [Member]
Disaggregation of Revenue [Line Items]
Equipment revenue	$ 43.4
Satellite [Member] \| CA-NA [Member]
Disaggregation of Revenue [Line Items]
Equipment revenue	2.0
Airline, OEM and Aftermarket Dealer [Member] \| Product [Member] \| Transition Agreements To Airline-directed Model [Member] \| CA-NA [Member]
Disaggregation of Revenue [Line Items]
Equipment revenue	45.4
Airline Partners [Member] \| Product [Member] \| Transition Agreements To Airline-directed Model [Member] \| CA-NA [Member]
Disaggregation of Revenue [Line Items]
Equipment revenue	$ 45.4

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		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings Per Share [Abstract]
Net loss	$ (83,963)	$ (37,207)	$ (100,762)	$ (64,626)
Less: Participation rights of the Forward Transactions
Undistributed losses	$ (83,963)	$ (37,207)	$ (100,762)	$ (64,626)
Weighted-average common shares outstanding-basic and diluted	80,702	79,783	80,575	79,718
Net loss attributable to common stock per share-basic and diluted	$ (1.04)	$ (0.47)	$ (1.25)	$ (0.81)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Work-in-process component parts	$ 31,343	$ 30,340
Finished goods	120,190	162,705
Total inventory	$ 151,533	$ 193,045

Composition of Certain Balance Sheet Accounts - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Prepaid Expense and Other Assets [Abstract]
Contract assets	$ 13,056	$ 10,423
Prepaid satellite services	5,344	7,755
Restricted cash	1,035	1,535
Other	11,023	14,982
Total prepaid expenses and other current assets	$ 30,458	$ 34,695

Composition of Certain Balance Sheet Accounts - Property and Equipment (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,029,582	$ 944,772
Accumulated depreciation	(479,674)	(432,905)
Total property and equipment, net	549,908	511,867
Office Equipment, Furniture, Fixtures and Other [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	54,626	52,320
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	44,842	44,838
Airborne Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	720,925	642,151
Network Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 209,189	$ 205,463

Composition of Certain Balance Sheet Accounts - Schedule of Other Non-Current Assets (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Other Assets, Noncurrent [Abstract]
Contract assets	$ 67,937	$ 49,517
Deferred STC costs	19,316	16,453
Restricted cash	7,972	5,426
Other	9,319	12,816
Total other non-current assets	$ 104,544	$ 84,212

Composition of Certain Balance Sheet Accounts - Accrued Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Accrued Liabilities, Current [Abstract]
Airline related accrued liabilities	$ 66,998	$ 53,527
Accrued interest	18,319	46,694
Employee compensation and benefits	16,987	19,463
Airborne equipment and installation costs	13,266	25,119
Accrued satellite network costs	13,472	19,557
Warranty reserve	13,357	12,291
Operating leases	11,565
Other	31,229	36,460
Total accrued liabilities	$ 185,193	$ 213,111

Composition of Certain Balance Sheet Accounts - Other Non-Current Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Other Liabilities, Noncurrent [Abstract]
Deferred revenue	$ 25,648	$ 21,482
Deferred rent		35,897
Asset retirement obligations	10,170	9,696
Deferred tax liabilities	2,251	2,162
Other	10,417	10,954
Total other non-current liabilities	$ 48,486	$ 80,191

Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 0.6		$ 0.6		$ 0.6
Amortization expense	$ 5.1	$ 7.2	$ 10.5	$ 14.8

Intangible Assets - Schedule of Intangible Assets, Other than Goodwill (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Intangible Assets Net Excluding Goodwill [Line Items]
Total intangible assets, Gross Carrying Amount	$ 222,800	$ 214,668
Amortized intangible assets, Gross Carrying Amount	190,517	182,385
Amortized intangible assets, Accumulated Amortization	(142,259)	(131,797)
Amortized intangible assets, Net Carrying Amount	48,258	50,588
Total intangible assets, Net Carrying Amount	80,541	82,871
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 8 months 12 days
Amortized intangible assets, Gross Carrying Amount	$ 172,712	164,580
Amortized intangible assets, Accumulated Amortization	(126,801)	(116,873)
Amortized intangible assets, Net Carrying Amount	45,911	47,707
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)	(6,724)
Service Customer Relationships [Member]
Intangible Assets Net Excluding Goodwill [Line Items]
Weighted Average Remaining Useful Life (in years)	9 months 18 days
Amortized intangible assets, Gross Carrying Amount	$ 8,081	8,081
Amortized intangible assets, Accumulated Amortization	(7,312)	(6,804)
Amortized intangible assets, Net Carrying Amount	$ 769	1,277
Other Intangible Assets [Member]
Intangible Assets Net Excluding Goodwill [Line Items]
Weighted Average Remaining Useful Life (in years)	7 years 9 months 18 days
Amortized intangible assets, Gross Carrying Amount	$ 3,000	3,000
Amortized intangible assets, Accumulated Amortization	(1,422)	(1,396)
Amortized intangible assets, Net Carrying Amount	$ 1,578	$ 1,604

Intangible Assets - Summary of Amortization Expenses (Detail) $ in Thousands	Jun. 30, 2019 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2019 (period from July 1 to December 31)	$ 10,671
2020	17,229
2021	12,281
2022	6,100
2023	1,201
Thereafter	$ 776

Long-Term Debt and Other Liabilities - Additional Information (Detail) $ / shares in Units, shares in Millions							1 Months Ended					3 Months Ended		6 Months Ended		12 Months Ended
	May 07, 2019 USD ($)	Apr. 25, 2019 USD ($)	Apr. 18, 2019 USD ($)	Jan. 03, 2017 USD ($)	Jun. 14, 2016 USD ($)	Mar. 03, 2015 USD ($) $ / shares shares	May 03, 2019 USD ($)	Nov. 30, 2018 USD ($)	Nov. 21, 2018 USD ($) $ / shares	Sep. 25, 2017 USD ($)	Mar. 31, 2015 shares	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) Tradingday shares	Jun. 30, 2018 USD ($) shares	Dec. 31, 2018 USD ($)	Apr. 15, 2019 USD ($)	Mar. 31, 2019 USD ($)
Debt Instrument [Line Items]
Proceeds from issuance of debt														$ 920,683,000
Total debt												$ 1,119,713,000		1,119,713,000		$ 1,041,948,000
Amortization of deferred financing costs												1,324,000	$ 1,048,000	2,573,000	$ 2,083,000
Additional paid-in-capital												971,130,000		$ 971,130,000		963,458,000
Forward stock repurchase transactions amount						$ 140,000,000
Forward stock repurchase transaction, shares \| shares														7.2	7.2
Repayment of convertible notes														$ 158,954,000
Letters of Credit [Member]
Debt Instrument [Line Items]
Restricted cash												9,000,000		9,000,000		7,000,000
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												11,700,000		$ 11,700,000
Interest rate payable term														semi-annually
Loan origination fees														$ 15,900,000
Amortization of deferred financing costs												200,000	700,000	1,000,000	$ 1,300,000
Debt Instrument, Repurchased Face Amount																	$ 690,000,000
Debt Issuance Costs, Net												9,100,000		9,100,000
Payment Of Premium On Debt Redemption												51,400,000		$ 51,400,000
12.500% Senior Secured Notes Due 2022 [Member] \| Condition One [Member]
Debt Instrument [Line Items]
Debt instrument redemption price percentage of principal amount redeemed														40.00%
Debt instrument redemption price, percentage														109.875%
Outstanding redemption percentage														50.00%
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
Interest rate				12.50%
Issue price as percentage of face value				108.00%
Proceeds from issuance of debt				$ 70,200,000
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
Interest rate										12.50%
Issue price as percentage of face value										113.00%
Proceeds from issuance of debt										$ 113,000,000
Accrued interest received										$ 2,900,000
12.500% Senior Secured Notes Due 2022 [Member] \| Supplemental Indenture [Member]
Debt Instrument [Line Items]
Consent fees paid														$ 1,400,000
3.75% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount						$ 361,900,000
Interest rate						3.75%
Interest rate payable term						semi-annually
Amortization of deferred financing costs												100,000	$ 400,000	300,000	$ 800,000
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						$ 3,046,000		$ 3,046,000		149,195,000
Effective interest rate on convertible notes												11.50%		11.50%
Proceeds received from the issuance of the convertible notes						$ 361,900,000								$ 3,000,000		162,000,000
Convertible Notes, unamortized discount																12,800,000
Conversion rate						41.9274
Principal amount						$ 1,000								1,000
Conversion price \| $ / shares						$ 23.85
Multiples of principal amount						$ 1,000
Forward stock repurchase transactions amount						140,000,000
Forward stock repurchase transaction, shares \| shares											7.2
Repayment of convertible notes								$ 199,900,000
Increase in convertale notes								$ 17,900,000
Debt Instrument Redemption Price			$ 1,000
Debt Instrument Principal Redemption			$ 1,000
Debt Issuance Costs, Net												$ 0		$ 0		900,000
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 \| Tradingday														20
Common stock price consecutive trading days \| Tradingday														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 \| Tradingday														5
Common stock price consecutive trading days \| Tradingday														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		2,900,000
Issuance cost recorded to deferred financing costs												7,500,000		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
2024 Senior Secured Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount												925,000,000		925,000,000
Total debt												920,800,000		920,800,000
Convertible Notes, unamortized discount												4,200,000		$ 4,200,000
6.00% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount									$ 237,800,000
Interest rate									6.00%
Interest rate payable term														semi-annually
Amortization of deferred financing costs														$ 400,000
Debt issuance costs																800,000		$ 5,400,000
Debt instrument redemption price, percentage									100.00%
Option granted to initial purchasers									$ 32,300,000
Principal amount of Convertible Notes, subsequently exercised									22,800,000
Additional paid-in-capital									49,100,000
Convertible Notes, carrying amount of liability component									$ 188,700,000			195,900,000		195,900,000		190,100,000
Effective interest rate on convertible notes									13.60%
Proceeds received from the issuance of the convertible notes									$ 237,800,000							237,800,000
Convertible Notes, unamortized discount												41,900,000		41,900,000		47,700,000
Conversion rate									166.6667
Principal amount									$ 1,000					1,000
Conversion price \| $ / shares									$ 6.00
Multiples of principal amount									$ 1,000
Outstanding principal balance paid												237,800,000		$ 237,800,000
Debt Issuance Costs, Net																$ 6,200,000
6.00% 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 \| Tradingday														20
Common stock price consecutive trading days \| Tradingday														30
6.00% Convertible Senior Notes [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Debt instrument redemption price, percentage														98.00%
Common stock price trading days \| Tradingday														5
Common stock price consecutive trading days \| Tradingday														5
6.00% Convertible Senior Notes [Member] \| Issuance Costs [Member]
Debt Instrument [Line Items]
Loan origination fees									8,100,000
Additional paid-in-capital									1,700,000
Issuance cost recorded to deferred financing costs									6,400,000
6.00% Convertible Senior Notes [Member] \| Institutional Buyers [Member]
Debt Instrument [Line Items]
Aggregate principal amount									$ 215,000,000
9.875% Senior secured Notes Due On 2024 [Member]
Debt Instrument [Line Items]
Aggregate principal amount		$ 905,000,000
Interest rate		9.875%
Increase Decrease In Debt Indebtedness							$ 20,000,000
Issue price as percentage of face value	99.512%
Maturity date		May 01, 2024
Loan origination fees														$ 22,600,000
Amortization of deferred financing costs														600,000
Debt issuance costs												22,000,000		$ 22,000,000
Debt Instrument, Interest Rate Terms		semiannually
9.875% Senior secured Notes Due On 2024 [Member] \| May Two Thousand And Nineteen Additional Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount	$ 20,000,000
Interest rate	9.875%
Issue price as percentage of face value	100.50%
Proceeds from issuance of debt	$ 920,700,000
Accrued interest received	$ 100,000
9.875% Senior secured Notes Due On 2024 [Member] \| Condition One [Member]
Debt Instrument [Line Items]
Debt instrument redemption price percentage of principal amount redeemed														103.00%
Debt Instrument Redemption Price Aggregate Of Principal Amount Redeemable												150,000,000		$ 150,000,000
9.875% Senior secured Notes Due On 2024 [Member] \| Condition Two [Member]
Debt Instrument [Line Items]
Debt instrument redemption price percentage of principal amount redeemed														101.00%
Debt instrument redemption price, percentage					100.00%
Two Thousand Twenty Convertible Notes [Member] \| loss on extinguishment of debt [Member]
Debt Instrument [Line Items]
Repayment of convertible notes												159,000,000		$ 159,000,000
Debt Issuance Costs, Net												600,000		600,000
Repayments Of Convertible Debt Adjustments												$ 8,500,000		$ 8,500,000

Long-Term Debt and Other Liabilities - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Mar. 03, 2015
Debt Instrument [Line Items]
Total debt	$ 1,119,713	$ 1,041,948
Less deferred financing costs	(27,392)	(17,055)
Total long-term debt	1,092,321	1,024,893
2024 Senior Secured Notes [Member]
Debt Instrument [Line Items]
Senior Secured Notes	920,800
Total debt	920,800
2022 Senior Secured Notes [Member]
Debt Instrument [Line Items]
Senior Secured Notes		702,670
2022 Convertible Notes [Member]
Debt Instrument [Line Items]
Convertible Notes	195,867	190,083
2020 Convertible Notes [Member]
Debt Instrument [Line Items]
Convertible Notes	$ 3,046	$ 149,195	$ 261,900

Long-Term Debt and Other Liabilities - Summary of Redemption Prices Plus Accrued and Unpaid Interest (Detail) - 2024 Senior Secured Notes [Member]	6 Months Ended
	Jun. 30, 2019
2019 [Member]
Debt Instrument, Redemption [Line Items]
Debt instrument redemption price, percentage	104.938%
2020 [Member]
Debt Instrument, Redemption [Line Items]
Debt instrument redemption price, percentage	102.469%
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		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Schedule Of Interest [Line Items]
Interest costs charged to expense	$ 31,226	$ 24,928	$ 57,757	$ 49,908
Amortization of deferred financing costs	1,324	1,048	2,573	2,083
Accretion of debt discount	3,858	5,368	9,392	10,592
Amortization of debt premium	(258)	(703)	(1,018)	(1,388)
Interest expense	36,150	30,641	68,704	61,195
Total interest costs	36,272	30,719	68,955	61,317
Property and Equipment [Member]
Schedule Of Interest [Line Items]
Interest costs capitalized	7	3	11	15
Software [Member]
Schedule Of Interest [Line Items]
Interest costs capitalized	$ 115	$ 75	$ 240	$ 107

Leases - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Leases [Line Items]
Amortization of deferred airborne lease incentives	$ 6,077	$ 7,462	$ 15,030	$ 15,092
Deferred airborne lease incentives included in current liabilities	24,737		24,737		$ 24,145
Deferred airborne lease incentives included in non-current liabilities	137,231		137,231		$ 129,086
Revenue share expense, net of amortization of deferred airborne lease incentives	$ 6,800	$ 6,700	$ 10,600	$ 13,100
Lessee operating lease option to extend			20 years

Leases - summary of our lease expense (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Operating lease cost	$ 5,194	$ 10,112
Finance lease cost
Amortization of leased assets	171	376
Interest on lease liabilities	16	27
Total lease cost	$ 5,381	$ 10,515

Leases - Other information regarding our leases (Detail) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows used in operating leases	$ 5,791	$ 11,908
Operating cash flows used in financing leases	16	27
Financing cash flows used in financing leases	258	383
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$ 768	$ 1,047
Weighted average remaining lease term
Operating leases	8 years	8 years
Financing leases	1 year	1 year
Weighted average discount rate
Operating leases	10.30%	10.30%
Financing leases	8.50%	8.50%

Leases - Annual Future Minimum Obligations for Operating Leases Other than Arrangements with Commercial Airline Partners (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Operating Leases
2019 (period from July 1 to December 31)	$ 11,301	$ 21,902
2020	21,414	19,867
2021	21,034	19,742
2022	19,596	18,420
2023	15,765	14,826
Thereafter	76,952	$ 78,100
Total future minimum lease payments	166,062
Less: Amount representing interest	(56,878)
Present value of net minimum lease payments	109,184
Accrued liabilities	11,565
Non-current operating lease liabilities	97,619
Total lease liabilities	109,184
Financing Leases
2019 (period from July 1 to December 31)	300
2020	192
Total future minimum lease payments	492
Less: Amount representing interest	(22)
Present value of net minimum lease payments	470
Accrued liabilities	467
Other non-current liabilities	3
Total lease liabilities	$ 470

Commitments and Contingencies - Additional Information (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2019 USD ($)
Loss Contingencies [Line Items]
2019 (July 1 through December 31)	$ 59.2
2020	108.8
2021	92.3
2022	76.2
2023	63.1
Thereafter	$ 166.4
Linksmart Litigation [Member]
Loss Contingencies [Line Items]
Litigation filing date	April 20, 2018
Securities Litigation [Member]
Loss Contingencies [Line Items]
Litigation filing date	June 27, 2018
Derivative Litigation [Member]
Loss Contingencies [Line Items]
Litigation filing date	September 25, 2018 and September 26, 2018

Fair Value of Financial Assets and Liabilities - Summary of Fair Value and Carrying Value of Long-Term Debt (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Mar. 03, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total debt	$ 1,119,713	$ 1,041,948
2024 Senior Secured Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value of Long Term Debt	955,000
Total debt	920,800
2022 Senior Secured Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value of Long Term Debt		737,000
Total debt		702,670
2022 Convertible Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value of Convertible Notes	221,000	216,000
Carrying Value of Convertible Notes	195,867	190,083
2020 Convertible Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value of Convertible Notes	3,000	150,000
Carrying Value of Convertible Notes	$ 3,046	$ 149,195	$ 261,900

Fair Value of Financial Assets and Liabilities - Summary of Fair Value and Carrying Value of Long-Term Debt (Parenthetical) (Detail) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
2024 Senior Secured Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unamortized debt premium and consent fees	$ 4.2
2022 Senior Secured Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unamortized debt premium and consent fees		$ 12.7
6% Convertible Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Unamortized Discount	$ 41.9	47.7
3.75% Convertible Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Unamortized Discount		$ 12.8

Income Tax - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Tax Credit Carryforward [Line Items]
Effective income tax rate	(0.40%)	(0.20%)	(0.50%)	5.40%
Reduction in our valuation allowance due to tax reform				$ 4.0
Interest or penalties related to uncertain tax positions	$ 0.0	$ 0.0	$ 0.0	$ 0.0
Liabilities for interest and potential penalties	$ 0.0		0.0		$ 0.0
Increase (decrease) in unrecognized tax benefits			$ 0.0

Business Segments and Major Customers - Additional Information (Detail)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019 Segment Customer Partner	Jun. 30, 2018 Customer Partner	Dec. 31, 2018
Segment Reporting Information [Line Items]
Number of operating segments \| Segment			3
Number of customers meeting concentration risk threshold			0
Revenue [Member]
Segment Reporting Information [Line Items]
Number of customers meeting concentration risk threshold				0
Revenue [Member] \| Customer Concentration Risk [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark	15.00%		15.00%
Revenue [Member] \| Customer Concentration Risk [Member] \| Delta Airline and American Airlines [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark	28.00%	23.00%	28.00%	22.00%
Revenue [Member] \| Customer Concentration Risk [Member] \| American Airlines [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark	12.00%		11.00%
Accounts Receivable [Member]
Segment Reporting Information [Line Items]
Number of customers meeting concentration risk threshold				1
Number of airline partners meeting concentration risk threshold \| Partner			1	1
Accounts Receivable [Member] \| Credit Concentration Risk [Member] \| American Airlines [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark		22.00%	13.00%	29.00%	11.00%
Accounts Receivable [Member] \| Credit Concentration Risk [Member] \| Delta Air Lines [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark			11.00%		11.00%
Accounts Receivable [Member] \| Credit Concentration Risk [Member] \| Other Airlines [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark			10.00%

Business Segments and Major Customers - Summary of Reportable Segments (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting Information [Line Items]
Total revenue	$ 213,685	$ 227,458	$ 413,234	$ 459,283
Segment profit (loss)	38,196	19,246	76,087	30,620
Service [Member]
Segment Reporting Information [Line Items]
Total revenue	173,731	159,056	338,743	309,734
Product [Member]
Segment Reporting Information [Line Items]
Total revenue	39,954	68,402	74,491	149,549
CA-NA [Member]
Segment Reporting Information [Line Items]
Total revenue	105,727	119,650	201,796	263,471
Segment profit (loss)	24,171	7,041	47,713	8,697
CA-NA [Member] \| Service [Member]
Segment Reporting Information [Line Items]
Total revenue	96,402	95,746	188,429	184,529
CA-NA [Member] \| Product [Member]
Segment Reporting Information [Line Items]
Total revenue	9,325	23,904	13,367	78,942
CA-ROW [Member]
Segment Reporting Information [Line Items]
Total revenue	36,717	33,645	69,648	52,814
Segment profit (loss)	(17,265)	(24,474)	(36,414)	(47,079)
CA-ROW [Member] \| Service [Member]
Segment Reporting Information [Line Items]
Total revenue	22,573	15,185	42,345	29,430
CA-ROW [Member] \| Product [Member]
Segment Reporting Information [Line Items]
Total revenue	14,144	18,460	27,303	23,384
BA [Member]
Segment Reporting Information [Line Items]
Total revenue	71,241	74,163	141,790	142,998
Segment profit (loss)	31,290	36,679	64,788	69,002
BA [Member] \| Service [Member]
Segment Reporting Information [Line Items]
Total revenue	54,756	48,125	107,969	95,775
BA [Member] \| Product [Member]
Segment Reporting Information [Line Items]
Total revenue	$ 16,485	$ 26,038	$ 33,821	$ 47,223

Business Segments and Major Customers - Reconciliation of Segment Profit (loss) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment profit (loss)	$ 38,196	$ 19,246	$ 76,087	$ 30,620
Interest income	1,230	1,328	2,379	2,404
Interest expense	(36,150)	(30,641)	(68,704)	(61,195)
Depreciation and amortization	(29,967)	(31,938)	(60,716)	(67,857)
Transition to airline-directed model		2,249		21,551
Amortization of deferred airborne lease incentives	6,077	7,462	15,030	15,092
Amortization of STC costs	(322)	(255)	(642)	(427)
Stock-based compensation expense	(4,318)	(4,213)	(8,645)	(8,599)
Loss on extinguishment of debt	(57,962)		(57,962)
Other income (expense)	(443)	(374)	2,922	131
Loss before income taxes	(83,659)	(37,136)	(100,251)	(68,280)
CA-NA [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment profit (loss)	24,171	7,041	47,713	8,697
CA-ROW [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment profit (loss)	(17,265)	(24,474)	(36,414)	(47,079)
BA [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment profit (loss)	$ 31,290	$ 36,679	$ 64,788	$ 69,002

Employee Retirement and Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Employee Contribution			100.00%
Percentage of employees contribution matched by the company			4.00%
Employer Contribution	$ 1.4	$ 1.3	$ 2.6	$ 2.6
Stock options, shares granted			1,437,988
Stock options exercised			456,431
Stock options, shares expired			20,675
Market Condition [Member]
Stock options, shares granted			148,500
Stock options exercised			278,146
Share units granted			86,000
Share units forfeited			109,760
Restricted Stock Units (RSUs) [Member]
Share units granted			2,038,988
Share units forfeited			379,521
Share units vested			447,646
Restricted Stock [Member]
Share units vested			64,995
Deferred Stock Units [Member]
Share units granted			113,744
Share units vested			113,744
Performance Condition [Member]
Stock options, shares granted			50,000
Share units granted			50,000
Employee Stock Purchase Plan [Member]
Common stock, shares issued under ESPP			157,158

Employee Retirement and Postretirement Benefits - Summary of Stock-Based Compensation Expense by Operating Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 4,318	$ 4,213	$ 8,645	$ 8,599
Cost of Service Revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	374	447	802	881
Cost of Equipment Revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	80	59	151	113
Engineering, Design and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	780	783	1,554	1,693
Sales and Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	967	1,226	1,937	2,308
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 2,117	$ 1,698	$ 4,201	$ 3,604

Warranties - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Guarantor Obligations [Line Items]
Warranty reserve balance	$ 13,357	$ 12,291
Maximum [Member]
Guarantor Obligations [Line Items]
Warranty term	10 years
Minimum [Member]
Guarantor Obligations [Line Items]
Warranty term	2 years