Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2017	Feb. 16, 2018	Jun. 30, 2017
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Trading Symbol	GOGO
Entity Registrant Name	Gogo Inc.
Entity Central Index Key	0001537054
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		86,843,928
Entity Public Float			$ 667,993,801

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 196,356	$ 117,302
Short-term investments	212,792	338,477
Total cash, cash equivalents and short-term investments	409,148	455,779
Accounts receivable, net of allowances of $587 and $499, respectively	117,896	73,743
Inventories	45,543	50,266
Prepaid expenses and other current assets	20,310	24,942
Total current assets	592,897	604,730
Non-current assets:
Property and equipment, net	656,038	519,810
Goodwill and intangible assets, net	87,133	85,795
Other non-current assets	67,107	35,861
Total non-current assets	810,278	641,466
Total assets	1,403,175	1,246,196
Current liabilities:
Accounts payable	27,130	31,689
Accrued liabilities	201,815	147,576
Deferred revenue	43,448	32,722
Deferred airborne lease incentives	42,096	36,277
Current portion capital leases	1,789	2,799
Total current liabilities	316,278	251,063
Non-current liabilities:
Long-term debt	1,000,868	800,715
Deferred airborne lease incentives	142,938	135,879
Other non-current liabilities	134,655	98,932
Total non-current liabilities	1,278,461	1,035,526
Total liabilities	1,594,739	1,286,589
Commitments and contingencies (Note 15)
Stockholders' deficit
Common stock, par value $0.0001 per share; 500,000,000 shares authorized at December 31, 2017 and 2016; 87,062,578 and 86,529,907 shares issued at December 31, 2017 and 2016, respectively; and 86,843,928 and 86,295,870 shares outstanding at December 31, 2017 and 2016, respectively	9	9
Additional paid-in-capital	898,729	879,135
Accumulated other comprehensive loss	(933)	(2,163)
Accumulated deficit	(1,089,369)	(917,374)
Total stockholders' deficit	(191,564)	(40,393)
Total liabilities and stockholders' deficit	$ 1,403,175	$ 1,246,196

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowances on accounts receivable	$ 587	$ 499
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	87,062,578	86,529,907
Common stock, shares outstanding	86,843,928	86,295,870

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenue:
Service revenue	$ 617,906	$ 514,293	$ 419,975
Equipment revenue	81,184	82,257	80,913
Total revenue	699,090	596,550	500,888
Operating expenses:
Cost of service revenue (exclusive of items shown below)	268,334	226,078	187,803
Cost of equipment revenue (exclusive of items shown below)	58,554	48,650	40,558
Engineering, design and development	133,286	96,713	87,437
Sales and marketing	64,017	61,177	56,143
General and administrative	93,671	84,927	86,753
Depreciation and amortization	145,490	105,642	87,036
Total operating expenses	763,352	623,187	545,730
Operating loss	(64,262)	(26,637)	(44,842)
Other (income) expense:
Interest income	(2,964)	(1,635)	(181)
Interest expense	111,944	83,647	58,889
Loss on extinguishment of debt		15,406
Adjustment of deferred financing costs		(792)	2,251
Other (income) expense	750	(72)	574
Total other expense	109,730	96,554	61,533
Loss before income taxes	(173,992)	(123,191)	(106,375)
Income tax provision (benefit)	(1,997)	1,314	1,238
Net loss	$ (171,995)	$ (124,505)	$ (107,613)
Net loss attributable to common stock per share-basic and diluted	$ (2.17)	$ (1.58)	$ (1.35)
Weighted average number of shares-basic and diluted	79,407	78,915	79,701

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (41,138)	$ (45,281)	$ (44,209)	$ (41,367)	$ (26,932)	$ (33,273)	$ (40,194)	$ (24,106)	$ (171,995)	$ (124,505)	$ (107,613)
Currency translation adjustments									1,230	25	(988)
Comprehensive loss									$ (170,765)	$ (124,480)	$ (108,601)

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating activities:
Net loss	$ (171,995)	$ (124,505)	$ (107,613)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization	145,490	105,642	87,036
Loss on asset disposals/abandonments and assets held for sale	8,960	4,583	3,044
Deferred income taxes	(2,281)	839	827
Stock compensation expense	19,821	17,621	15,299
Amortization of deferred financing costs	3,743	3,803	4,169
Accretion and amortization of debt discount and premium	18,286	17,496	12,555
Loss on extinguishment of debt		15,406
Adjustment of deferred financing costs		(792)	2,251
Changes in operating assets and liabilities:
Accounts receivable	(43,798)	(4,265)	(21,563)
Inventories	4,723	(29,329)	976
Prepaid expenses and other current assets	4,990	(14,473)	2,717
Accounts payable	3,402	(3,118)	(4,307)
Accrued liabilities	24,963	5,651	25,366
Deferred airborne lease incentives	20,407	14,652	36,895
Deferred revenue	21,477	26,981	23,895
Deferred rent	624	(47)	21,206
Accrued interest	7,213	35,825	4,508
Other non-current assets and liabilities	(5,769)	(6,982)	(2,405)
Net cash provided by operating activities	60,256	64,988	104,856
Investing activities:
Purchases of property and equipment	(252,375)	(148,294)	(135,201)
Acquisition of intangible assets-capitalized software	(27,855)	(28,587)	(17,947)
Purchases of short-term investments	(317,418)	(363,436)	(369,402)
Redemptions of short-term investments	443,103	244,450	229,852
Other, net	(2,336)	308	(117)
Net cash used in investing activities	(156,881)	(295,559)	(292,815)
Financing activities:
Proceeds from issuance of senior secured notes	181,754	525,000
Payments on amended and restated credit agreement		(310,132)	(8,749)
Proceeds from issuance of convertible notes			361,940
Forward transactions			(140,000)
Payment of debt issuance costs	(3,630)	(11,474)	(12,608)
Payments on capital leases	(2,961)	(2,612)	(1,995)
Stock-based compensation activity	(227)	271	4,633
Net cash provided by financing activities	174,936	201,053	203,221
Effect of exchange rate changes on cash	743	(522)	785
Increase (decrease) in cash and cash equivalents	79,054	(30,040)	16,047
Cash and cash equivalents at beginning of period	117,302	147,342	131,295
Cash and cash equivalents at end of period	196,356	117,302	147,342
Supplemental Cash Flow Information:
Cash paid for interest	86,359	27,535	38,677
Cash paid for taxes	103	305	446
Non-cash Investing and Financing Activities:
Purchases of property and equipment in current liabilities	53,682	39,492	29,305
Purchases of property and equipment paid by commercial airlines	23,762	13,804	10,163
Purchases of property and equipment under capital leases	1,082	2,177	1,395
Acquisition of intangible assets in current liabilities	1,483	1,623	1,549
Asset retirement obligation incurred	$ 370	$ 11	$ 1,181

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, 2014	$ 197,758	$ 9	$ 884,205	$ (1,200)	$ (685,256)
Beginning Balance, Shares at Dec. 31, 2014		85,300,774
Net loss	(107,613)				(107,613)
Currency translation adjustments, net of tax	(988)			(988)
Stock-based compensation expense	15,299		15,299
Issuance of common stock upon exercise of stock options	4,824		4,824
Issuance of common stock upon exercise of stock options, Shares		418,681
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares		122,633
Tax withholding related to vesting of restricted stock units	(1,233)		(1,233)
Issuance of common stock in connection with employee stock purchase plan	1,042		1,042
Issuance of common stock in connection with employee stock purchase plan, Shares		71,118
Issuance of Convertible Notes (including issuance costs)	97,106		97,106
Issuance of Forward Transactions	(140,000)		(140,000)
Balance at December 31, 2015 at Dec. 31, 2015	66,195	$ 9	861,243	(2,188)	(792,869)
Ending Balance, Shares at Dec. 31, 2015		85,913,206
Net loss	(124,505)				(124,505)
Currency translation adjustments, net of tax	25			25
Stock-based compensation expense	17,621		17,621
Issuance of common stock upon exercise of stock options	110		110
Issuance of common stock upon exercise of stock options, Shares		12,150
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares		227,429
Tax withholding related to vesting of restricted stock units	(1,199)		(1,199)
Issuance of common stock in connection with employee stock purchase plan	1,360		1,360
Issuance of common stock in connection with employee stock purchase plan, Shares		143,085
Balance at December 31, 2015 at Dec. 31, 2016	(40,393)	$ 9	879,135	(2,163)	(917,374)
Ending Balance, Shares at Dec. 31, 2016		86,295,870
Net loss	(171,995)				(171,995)
Currency translation adjustments, net of tax	1,230			1,230
Stock-based compensation expense	19,821		19,821
Issuance of common stock upon exercise of stock options	449		449
Issuance of common stock upon exercise of stock options, Shares		50,392
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares		344,038
Tax withholding related to vesting of restricted stock units	(2,162)		(2,162)
Issuance of common stock in connection with employee stock purchase plan	1,486		1,486
Issuance of common stock in connection with employee stock purchase plan, Shares		153,628
Balance at December 31, 2015 at Dec. 31, 2017	$ (191,564)	$ 9	$ 898,729	$ (933)	$ (1,089,369)
Ending Balance, Shares at Dec. 31, 2017		86,843,928

Background	12 Months Ended
Background	Dec. 31, 2017
Accounting Policies [Abstract]
Background	1. Background Gogo Inc. (“we”, “us”, “our”) is the leading global provider of inflight broadband connectivity and wireless 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.” We refer to CA-NA and CA-ROW collectively as “CA.” CA and BA sell inflight systems to their aviation partners and we share our networks across all three of our operating segments. Services provided by CA and BA through such inflight systems include: Passenger Connectivity Services, which allow passengers to connect to the Internet from their personal electronic devices; Passenger Entertainment Services, through which passengers can access a large library of on-demand movies and television shows on their personal electronic devices; and Connected Aircraft Services (“CAS”), through which aviation partners can access connectivity-based data oriented applications which currently support, among other things, real-time credit card transaction processing, electronic flight bags and real-time weather information. BA also provides satellite-based voice and data services through its strategic alliances with satellite companies. 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 its services to owners and operators of large, long range business jets operating internationally as well as light jets and turbo props flying in North America.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Principles of Consolidation—The consolidated financial statements include our wholly owned subsidiaries. All intercompany transactions and account balances have been eliminated.

Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“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.

Under agreements with certain of our airline partners to upgrade our equipment on certain aircraft or decommission certain aircraft on which our equipment is installed, on a quarterly basis we reassess the useful life of the affected equipment. As a result, we shorten the useful lives of the affected equipment to be consistent with the estimated upgrade date or aircraft decommissioning date, as applicable. We also shorten the related remaining amortization period for deferred airborne lease incentives for certain equipment on aircraft to be decommissioned. The change in estimated useful lives related to these events resulted in increases in depreciation expense of $29.2 million in the year ended December 31, 2017 and increases in the amortization of deferred airborne lease incentives, which reduced our cost of service revenue, of $8.0 million in the year ended December 31, 2017. As a result, net loss per basic and fully diluted share increased by $0.27 for the year ended December 31, 2017.

Reclassifications—To conform with the current year presentation, certain amounts in our 2016 consolidated balance sheet and for the 2016 and 2015 consolidated statements of cash flows have been reclassified. Specifically, for the consolidated balance sheet, as of December 31, 2016, goodwill of $620 thousand has been combined into goodwill and intangible assets, net, long-term restricted cash of $7,773 thousand has been combined with other non-current assets, accrued airline revenue share of $15,521 thousand has been combined with accrued liabilities and deferred tax liabilities of $8,264 thousand has been combined with other non-current liabilities. Specifically, for the consolidated statements of cash flows, for the years ended December 31, 2016 and 2015, accrued airline revenue share of $1,815 thousand and $439 thousand, respectively, has been combined with accrued liabilities and proceeds from the sale of property and equipment of $84 thousand and $75 thousand, respectively, and (increase) decrease in investing restricted cash of $224 thousand and ($192) thousand, respectively, has been combined with other, net.

Significant Risks and Uncertainties—Our operations are subject to certain risks and uncertainties, including without limitation those associated with continuing losses, fluctuations in operating results, funding of business expansion, strategic alliances, capacity constraints, managing rapid growth and expansion, relationships with customers, suppliers and distributors, financing arrangement terms that may restrict operations, regulatory issues, competition, the economy, technology trends and evolving industry standards.

Cash, Cash Equivalents and Short-Term Investments—We consider cash and cash equivalents to be short-term, highly liquid investments that have the following characteristics: readily convertible to known amounts of cash, so near their maturities that there is insignificant risk of changes in value due to any changes in market interest rates, and having maturities of three months or less when purchased. We continually monitor positions with, and the credit quality of, the financial institutions with which we invest. The carrying amounts reported in the balance sheets for cash and cash equivalents approximate the fair market value of these assets.

We consider short-term investments to be investments with maturities of twelve months or less (but greater than three months). Currently all our short-term investments are comprised of U.S. Treasury bills, which we intend to hold to maturity.

Certain cash amounts are restricted as to use and are classified outside of cash and cash equivalents. See Note 6, “Long-term Debt and Other Liabilities,” for further details.

Concentrations of Credit Risk—Financial instruments that potentially subject us to a concentration of credit risk consist principally of cash and cash equivalents, short-term investments and accounts receivable. All cash and cash equivalents are invested with creditworthy financial institutions. We perform ongoing credit evaluations and generally do not require collateral to support receivables. Our short-term investments are all comprised of U.S. Treasury bills.

See Note 10, “Business Segments and Major Customers,” for further details.

Income Tax—We use an asset and liability-based approach in accounting for income taxes. Deferred income tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities, applying enacted statutory tax rates in effect for the year in which the tax differences are expected to reverse. Valuation allowances are provided against deferred tax assets which are not likely to be realized. On a regular basis, management evaluates the recoverability of deferred tax assets and the need for a valuation allowance. We also consider the existence of any uncertain tax positions and, as necessary, provide a reserve for any uncertain tax positions at each reporting date.

See Note 13, “Income Tax,” for further details.

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

See Note 4, “Composition of Certain Balance Sheet Accounts,” for further details.

Property and Equipment and Depreciation—Property and equipment, including leasehold improvements, are stated at historical cost, less accumulated depreciation. Network asset inventory and construction in progress, which include materials, transmission and related equipment, and interest and other costs relating to the construction and development of our network, are not depreciated until they are put into service. Network equipment consists of switching equipment, antennas, base transceiver stations, site preparation costs, and other related equipment used in the operation of our network. Airborne equipment consists of routers, modems, radomes, antennas and related equipment, and accessories installed or to be installed on aircraft. Depreciation expense totaled $120.6 million, $84.1 million and $69.4 million for the years ended December 31, 2017, 2016 and 2015, respectively. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives for owned assets, which are as follows:


Office equipment, furniture, fixtures and other		3-7 years
Leasehold improvements		3-13 years
Airborne equipment		7 years
Network equipment		5-25 years

See Note 4, “Composition of Certain Balance Sheet Accounts,” for further details.

Improvements to leased property are amortized over the shorter of the useful life of the improvement or the term of the related lease. Repairs and maintenance costs are expensed as incurred.

Due to advances in technology and changes in agreements with our airline partners, with respect to upgrading equipment, we periodically reassess the useful lives of our property and equipment. Such reassessment has resulted in the useful life of specific assets being adjusted to a shorter period than originally estimated, resulting in an increase in annual depreciation expense for those assets. See “—Use of Estimates” above for further details.

Goodwill and Other Intangible Assets—Goodwill and other intangible assets with indefinite lives are not amortized, but are reviewed for impairment at least annually or whenever events or circumstances indicate the carrying value of the asset may not be recoverable. Our FCC Licenses (as defined in Note 5, “Intangible Assets”) are our only indefinite-lived intangible assets. We perform our annual impairment tests of goodwill and our FCC Licenses during the fourth quarter of each fiscal year. We assess qualitative factors to determine the likelihood of impairment. Our qualitative analysis includes, but is not limited to, assessing the changes in macroeconomic conditions, regulatory environment, industry and market conditions, financial performance versus budget and any other events or circumstances specific to goodwill and the FCC Licenses. If it is more likely than not that the fair value of goodwill and the FCC Licenses is greater than the carrying value, no further testing is required. Otherwise, we will apply the quantitative impairment test method.

Our quantitative impairment testing of the FCC Licenses uses the Greenfield method, an income-based approach. When performing this quantitative impairment testing, we estimate the fair value of the goodwill and FCC Licenses asset balances based primarily on projected future operating results, discounted cash flows, and other assumptions. Projected future operating results and cash flows used for valuation purposes may reflect considerable improvements relative to historical periods with respect to, among other things, revenue growth and operating margins. Although we believe our projected future operating results and cash flows and related estimates regarding fair values are based on reasonable assumptions, projected operating results and cash flows may not always be achieved. The failure to achieve one or more of our assumptions regarding projected operating results and cash flows in the near term or long term could reduce the estimated fair value below carrying value and result in the recognition of an impairment charge. The results of our annual goodwill and indefinite-lived intangible asset impairment assessments for 2017, 2016 and 2015 indicated no impairment.

Intangible assets that are deemed to have a finite life are amortized over their useful lives as follows:


Software		3-8 years
OEM and dealer relationships		10 years
Service customer relationships		5-7 years
Other intangible assets		4-12 years

See Note 5, “Intangible Assets,” for further details.

Long-Lived Assets—We review our long-lived assets to determine potential impairment whenever events indicate that the carrying amount of such assets may not be recoverable. We do this by comparing the carrying value of the long-lived assets with the estimated future undiscounted cash flows expected to result from the use of the assets, including cash flows from disposition. If we determine an impairment exists, the asset is written down to estimated fair value. There were no impairments of long-lived assets in 2017, 2016 and 2015.

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

Under the turnkey model, we account for equipment transactions as operating leases of space for our equipment on the aircraft. We may be responsible for the costs of installing and/or deinstalling the equipment. The majority of the equipment transactions involve the transfer of legal title but do not meet sales recognition for accounting purposes because the risks and rewards of ownership are not fully transferred due to our continuing involvement with the equipment, the length of the term of our agreements with the airlines, and restrictions in the agreements regarding the airlines’ use of the equipment. The equipment under the turnkey model is recorded as airborne equipment on our consolidated balance sheets, as noted in Note 4, “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 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. Under the turnkey model, we refer to the airline as a “partner”.

Under the turnkey model we are required to pay the airline a percentage of the service revenues generated from transactions with the airline’s passengers. Such payments are essentially contingent rental payments and are recorded at the same time as the related passenger service revenue and classified as cost of service revenue in the consolidated statements of operations. Certain airlines are also entitled under their contracts to reimbursement by us for certain costs, which are deemed additional rental payments and classified as cost of service revenue in our consolidated statements of operations.

See Note 14, “Leases,” for further details.

Under the airline-directed model, which we have historically used on a limited basis, equipment transactions qualify for sale treatment due to the specific provisions of the agreement. When all the recognition criteria are met for the equipment, the sale is recognized as equipment revenue. When equipment and services are not separable, equipment revenue is deferred and recognized over the service period. Under the airline-directed model, we refer to the airline as a “customer”.

Revenue Recognition—Service revenue for CA-NA and CA-ROW primarily consists of point-of-sale transactions with airline passengers, which are recognized as the services are provided and billed to customers, typically by credit or debit card. The card processors charge a transaction fee for each card transaction, and such transaction processor payments are classified as cost of service revenue in the consolidated statements of operations and recorded at the same time as the related passenger service revenue.

CA-NA’s product offerings also include an annual subscription product and an unlimited monthly access option. Under the annual subscription product, revenue is recognized evenly throughout the year, regardless of how many times the customer accesses the network. Under the unlimited monthly access option, revenue is recognized throughout the month starting on the date of purchase, regardless of how many times the customer accesses the network. All deferred revenue amounts related to the annual subscription, multi-packs and unlimited monthly access options are classified as a current liability in our consolidated balance sheets.

CA-NA and CA-ROW also derive service revenue under arrangements with various third parties who sponsor free or discounted access to our service. The sponsorship arrangements vary with respect to duration and the airlines included. For sponsorship arrangements that occur across more than a single calendar month, revenue is deferred and recognized evenly throughout the sponsorship term. Other sources of CA-NA and CA-ROW revenue includes fees paid by third parties to advertise on or to enable e-commerce transactions through our airborne portal. For advertising or e-commerce arrangements that occur across more than a single calendar month, revenue is deferred and recognized evenly throughout the term of the arrangement.

CA-NA and CA-ROW also derive revenue from Connected Aircraft Services, or CAS. Under these arrangements, fixed-fee revenue (contractual allowance of megabytes or “MB”) may be deferred and recognized evenly over the year of service and a per-MB usage (overage) charge is recognized in the month it was consumed.

We recognize revenue for equipment sales when the following conditions have been satisfied: the equipment has been shipped to the customer, title and risk of loss and control have transferred to the customer, we have no future obligations for installation, the price is fixed or determinable, collectability is reasonably assured and, for the CA-NA and CA-ROW businesses, program launch has occurred. Additionally, when connectivity equipment and services are not separable, the equipment revenue is recognized over the connectivity service term.

We have multi-element arrangements that include equipment, connectivity services, installation and various inflight entertainment offerings. Revenue is allocated to each element based on the selling price of each element. Each element’s allocated revenue is recognized when the revenue recognition criteria for that element has been met. Fair value is generally based on one of the following three methods: the price charged when each element is sold separately, commonly referred to as vendor-specific objective evidence (“VSOE”); third-party evidence of selling price; or our best estimate of selling price, if neither VSOE or third-party evidence exists. Our BA segment uses VSOE and our CA-NA segment, through certain contracts for equipment and services that are sold direct to our airline partners, uses an estimated selling price to determine the selling price of the elements pertaining to these arrangements.

Service revenue for BA generally consists of monthly recurring and usage fees, which are recognized monthly as the services are provided and billed to customers.

Additionally, CA-NA and CA-ROW charge monthly service fees to our airline partners and airline customers for network monitoring and portal management services. Under our turnkey model, we recognize these monthly fees as airborne lease incentives (i.e., credit to cost of service revenue) when the services are provided, while under the airline-directed model, we recognize these monthly fees as revenue.

Research and Development Costs—Expenditures for research and development are charged to expense as incurred and totaled $78.1 million, $45.9 million and $50.1 million for the years ended December 31, 2017, 2016, and 2015, respectively. Research and development costs are reported as a component of engineering, design and development expenses in our consolidated statements of operations.

Software Development Costs—We capitalize costs for network and non-network software developed or obtained for internal use during the application development stage. These costs include purchased software and direct costs associated with the development and configuration of internal use software that supports the operation of our service offerings. These costs are included in goodwill and intangible assets, net in our consolidated balance sheets and, when the software is placed in service, are amortized on a straight-line basis over their estimated useful lives. Costs incurred in the preliminary project and post-implementation stages, as well as maintenance and training costs, are expensed as incurred.

With respect to software sold as part of our equipment sales, we capitalize software development costs once technological feasibility has been established. Capitalized software costs are amortized on a product-by-product basis, based on the greater of the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product or the straight-line method over the remaining estimated economic life of the product.

Warranty—We provide warranties on parts and labor related to our products. Our warranty terms range from two to five years. Warranty reserves are established for costs that are estimated to be incurred after the sale, delivery and installation of the products under warranty. The warranty reserves are determined based on known product failures, historical experience and other available evidence, and are included in accrued liabilities in our consolidated balance sheets.

See Note 4, “Composition of Certain Balance Sheet Accounts,” for the details of the changes in our warranty reserve.

Asset Retirement Obligations—We have certain asset retirement obligations related to contractual commitments to remove our network equipment and other assets from leased cell sites upon termination of the site lease and to remove equipment from aircraft when the service contracts terminate. The asset retirement obligations are classified as a noncurrent liability in our consolidated balance sheets.

See Note 4, “Composition of Certain Balance Sheet Accounts,” for the details of the changes in our asset retirement obligations.

Fair Value of Financial Instruments—We group financial assets and financial liabilities measured at fair value into three levels of hierarchy based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.

See Note 9, “Fair Value of Financial Assets and Liabilities,” for further information.

Derivatives—In March 2015, we entered into a prepaid forward transaction in which we purchased 7.2 million shares of our common stock for approximately $140 million, with an expected settlement date on or around March 1, 2020. Because the transaction is indexed to our own stock and classified within stockholders’ equity, we do not account for the prepaid forwards as a derivative instrument in accordance with Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging.

See Note 6, “Long-Term Debt and Other Liabilities,” Note 8, “Common Stock and Preferred Stock,” and Note 9, “Fair Value of Financial Assets and Liabilities,” for further information.

Convertible Notes—Proceeds received from the issuance of Convertible Notes (as defined in Note 6, “Long-Term Debt and Other Liabilities”) are initially allocated between a liability component (long-term debt) and an equity component (additional paid-in capital), within the consolidated balance sheet. The fair value of the liability component is measured using rates determined for similar debt instruments without a conversion feature. The carrying amount of the equity component, representing the conversion option, is determined by deducting the fair value of the liability component from the aggregate face value of Convertible Notes.

See Note 6, “Long-Term Debt and Other Liabilities,” for further information.

Net Loss Per Share—We calculate basic and diluted net loss per share using the weighted-average number of common shares outstanding during the period.

See Note 3, “Net Loss Per Share,” for further information.

Stock-Based Compensation Expense—Compensation cost is measured and recognized at fair value for all stock-based payments, including stock options. For time-based vesting stock options, we estimate fair value using the Black-Scholes option-pricing model, which requires assumptions, such as expected volatility, risk-free interest rate, expected life, and dividends. Restricted stock units (“RSUs”) and restricted stock are measured based on the fair market value of the underlying stock on the date of grant. For awards with a market condition (which we have used on a limited basis), we estimated fair value using the Monte Carlo Simulation model, which requires assumptions, such as volatility, risk-free interest rate, expected life and dividends. Our stock-based compensation expense is recognized over the applicable vesting period, and is included in the same operating expense line items in the consolidated statements of operations as the base cash compensation paid to the underlying employees.

See Note 11, “Stock-Based Compensation,” for further information.

Leases—In addition to our arrangements with commercial airlines which we account for as leases as noted above, we also lease certain facilities, equipment, cell tower space and base station capacity. We review each lease agreement to determine if it qualifies as an operating or capital lease.

For leases that contain predetermined fixed escalations of the minimum rent, we recognize the related rent expense on a straight-line basis over the term of the lease. We record any difference between the straight-line rent amounts and amounts payable under the lease as deferred rent, in either accrued liabilities or as a separate line within noncurrent liabilities, as appropriate, in our consolidated balance sheets.

For leases that qualify as a capital lease, we record a capital lease asset and a capital lease obligation at the beginning of the lease term at an amount equal to the present value of minimum lease payments during the term of the lease, excluding that portion of the payments that represent executory costs. The capital lease asset is depreciated on a straight-line method over the shorter of its estimated useful life or lease term.

See Note 14, “Leases,” for further information.

Advertising Costs—Costs for advertising are expensed as incurred.

Debt Issuance Costs—We defer loan origination fees and financing costs related to our various debt offerings as deferred financing costs. Additionally, we defer fees paid directly to the lenders related to amendments with our various debt offerings as deferred financing costs. We amortize these costs over the term of the underlying debt obligation using the effective interest method, and include them in interest expense in the consolidated statement of operations. The fees incurred but not paid directly to the lenders in connection with amendments are expensed as incurred to interest expense. Deferred financing costs associated with future debt issuances are written off in the period during which we determine that the debt will no longer be issued.

See Note 6, “Long-Term Debt and Other Liabilities” for further information.

Comprehensive Loss—Comprehensive loss for the years ended December 31, 2017, 2016 and 2015 is net loss plus unrealized gains and losses on foreign currency translation adjustments.

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

•

Under the current revenue recognition standard, the sale of CA-NA and CA-ROW airborne connectivity equipment does not meet all of the requirements for being recognized as a separate unit of accounting, resulting in the deferral of equipment revenue (and the related equipment cost) over the life of the contract. Under ASU 2014-09, we have concluded that the sale of airborne connectivity equipment for airline-directed arrangements represents a separate performance obligation as it is both capable of being distinct and distinct within the context of the arrangement. As such, the recognition of all airborne equipment revenue and related deferred equipment costs will be accelerated and recognized upon installation. We currently estimate that the cumulative effect adjustment to be recorded to the opening balance sheet to retained earnings upon adoption will include the recognition of approximately $53 million of revenue and the recognition of approximately $47 million of related equipment costs.

•

Our contracts with customers generate service revenue that varies based on usage of our service. Under the current revenue recognition standard, these revenues are recognized as services are provided. Under ASU 2014-09, we have concluded that we will be required to use a variable consideration model which requires us to estimate (and constrain) variable service revenue, which may require the allocation of such variable consideration among all performance obligations. Additionally, estimates used in the recognition of revenue under the new standard will be updated as new facts and circumstances warrant, which may cause differences in the trend of revenue recognition as compared to that reported under the current standard. The acceleration of equipment revenue upon adoption is inclusive of variable amounts allocated to equipment.

•

We have assessed the treatment of costs to obtain or fulfill a contract with a customer, including costs to obtain Supplemental Type Certificates (“STCs”) issued by the FAA (or the foreign equivalent) that are required to install our equipment on aircraft, service bulletins, and other related certification costs. Such costs are expensed as incurred under the current standard. Under ASU 2014-09, we have concluded that under our airline-directed model these costs require capitalization as a contract asset and subsequent amortization over the contract term. STC costs incurred in connection with our airline partners operating under our turnkey model are not subject to the same guidance and will continue to be expensed as incurred under ASU 2014-09. Upon adoption, we expect to recognize a contract asset, net of cumulative amortization, of approximately $8 million.

•

Penalties are recorded under the current standard when incurred. Under ASU 2014-09, anticipated penalties will be accounted for as a reduction of revenue at the time the related performance obligation is satisfied. Penalties that are not directly attributable to a specific deliverable are accounted for as a reduction of total contractual proceeds that are then allocated among all identified deliverables. This would include, for example, certification-related penalties. We anticipate the impact upon adoption will be approximately $3 million of costs that were previously expensed, but will now be accounted for as a reduction of revenue to the performance obligations identified in our contracts.

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

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

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

In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”), which removes the prohibition in ASC 740, Income Taxes, against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. This is intended to reduce the complexity of GAAP and diversity in practice related to the tax consequences of certain types of intra-entity asset transfers, particularly those involving intellectual property. ASU 2016-16 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. We will adopt this guidance as of January 1, 2018, and do not believe the adoption of this guidance will have a material impact on our consolidated financial statements.

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

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

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

Net Loss Per Share

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Net Loss Per Share

3. Net Loss Per Share

Basic and diluted net loss per share have been calculated using the weighted-average number of common shares outstanding for the period.

The shares of common stock effectively repurchased in connection with the Forward Transactions (as defined and described in Note 6, “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. Additionally, the calculation of weighted average shares outstanding as of December 31, 2017 and 2016 excludes approximately 7.2 million shares that will be repurchased as a result of the Forward Transactions.

As a result of the net loss for each of the years ended December 31, 2017, 2016 and 2015 for the periods where such shares or securities were outstanding, all of the outstanding shares of common stock underlying stock options, AC Management LLC Units, 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 years ended December 31, 2017, 2016 and 2015; however, because of the undistributed losses, the shares associated with the Forward Transactions are excluded from the computation of basic earnings per share as undistributed losses are not allocated to these shares (in thousands, except per share amounts):


	For the Years Ended December 31,
	2017			2016			2015
Net loss	$	(171,995	)	$	(124,505	)	$	(107,613	)
Less: Participation rights of the Forward Transactions		—			—			—

Undistributed losses	$	(171,995	)	$	(124,505	)	$	(107,613	)

Weighted-average common shares outstanding-basic and diluted		79,407			78,915			79,701

Net loss attributable to common stock per share-basic and diluted	$	(2.17	)	$	(1.58	)	$	(1.35	)

Composition of Certain Balance Sheet Accounts

12 Months Ended

Dec. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Composition of Certain Balance Sheet Accounts

4. Composition of Certain Balance Sheet Accounts

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


	December 31,
	2017		2016
Work-in-process component parts	$	35,009	$	39,150
Finished goods		10,534		11,116

Total inventory	$	45,543	$	50,266

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


	December 31,
	2017			2016
Office equipment, furniture, fixtures and other	$	46,445		$	49,529
Leasehold improvements		42,522			42,143
Airborne equipment		765,652			557,196
Network equipment		199,304			168,121

		1,053,923			816,989
Accumulated depreciation		(397,885	)		(297,179	)

Property and equipment, net	$	656,038		$	519,810

Other non-current assets as of December 31, 2017 and 2016 consist of the following (in thousands):


	December 31,
	2017		2016
Deferred cost of equipment revenue	$	40,986	$	14,159
Restricted cash		6,873		7,773
Other		19,248		13,929

Total other non-current assets	$	67,107	$	35,861

Accrued liabilities as of December 31, 2017 and 2016 consist of the following (in thousands):


	December 31,
	2017		2016
Employee compensation and benefits	$	25,621	$	21,008
Airborne equipment and installation costs		44,059		22,442
Airborne partner related accrued liabilities		13,566		14,307
Accrued interest		47,649		40,436
Accrued revenue share		17,339		15,521
Other		53,581		33,862

Total accrued liabilities	$	201,815	$	147,576

Other non-current liabilities as of December 31, 2017 and 2016 consist of the following (in thousands):


	December 31,
	2017		2016
Deferred revenue	$	73,192	$	38,976
Deferred rent		37,354		36,538
Asset retirement obligations		9,668		8,527
Deferred tax liabilities		5,983		8,264
Other		8,458		6,627

Total other non-current liabilities	$	134,655	$	98,932

Changes in our warranty reserve, which is included in accrued liabilities, for the years ended December 31, 2017, 2016 and 2015 consist of the following (in thousands):


	Warranty Reserve
Balance—January 1, 2015	$	1,085
Accruals for warranties issued		1,882
Settlements of warranties		(1,133	)

Balance—December 31, 2015		1,834
Accruals for warranties issued		1,535
Settlements of warranties		(793	)

Balance—December 31, 2016		2,576
Accruals for warranties issued		348
Settlements of warranties		(500	)

Balance—December 31, 2017	$	2,424

Changes in our non-current asset retirement obligations for the years ended December 31, 2017 and 2016 consist of the following (in thousands):


	Asset Retirement Obligation
Balance—January 1, 2016	$	7,847
Liabilities incurred ⁽¹⁾		11
Liabilities settled		(174	)
Accretion expense		835
Foreign exchange rate adjustments		8

Balance—December 31, 2016		8,527
Liabilities incurred ⁽²⁾		370
Liabilities settled		(252	)
Accretion expense		981
Foreign exchange rate adjustments		42

Balance—December 31, 2017	$	9,668

(1)

Includes $0.5 million related to a change in estimate in the expected cash flows for our estimated liabilities.

(2)

Includes $0.2 million related to a change in estimate in the expected cash flows for our estimated liabilities.

Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

5. Intangible Assets

Our intangible assets are comprised of indefinite- and finite-lived intangible assets. We own the rights to both 3MHz of ATG spectrum in the nationwide 800 MHz Commercial Air-Ground Radiotelephone band (the “3 MHz FCC License”), which is used in the operation of our ATG network, and the license for 1 MHz of ATG spectrum in the nationwide 800MHz Commercial Air-Ground Radiotelephone band (“1 MHz FCC License”) acquired in the Airfone Acquisition. Together we refer to the 3 MHz FCC License and the 1 MHz FCC License as the “FCC Licenses”. While the FCC Licenses were issued with 10-year terms, such licenses are subject to renewal by the FCC, and renewals of licenses held by others have occurred routinely and at nominal cost. Moreover, we have determined that there are currently no legal, regulatory, contractual, competitive, economic, or other factors that limit the useful life of the FCC Licenses. As a result, the FCC Licenses are treated as indefinite-lived intangible assets which we do not amortize. We reevaluate the useful life of the FCC Licenses each year to determine whether events and circumstances continue to support an indefinite useful life. Our annual impairment assessment of the FCC Licenses for 2017, 2016, and 2015 indicated no impairment.

Our software relates to the development of internal use software which is used to run our network and support our service offerings. Software also includes software embedded in the equipment that we sell to our customers.

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

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


	Weighted Average Remaining Useful Life (in years)		As of December 31, 2017							As of December 31, 2016
	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		2.1	$	145,063	$	(93,523	)	$	51,540	$	118,836	$	(70,127	)	$	48,709
OEM and dealer relationships				6,724		(6,724	)		—		6,724		(6,667	)		57
Service customer relationships		2.3		8,081		(5,788	)		2,293		8,081		(4,773	)		3,308
Other intangible assets		1.3		1,500		(1,103	)		397		1,500		(682	)		818

Total amortized intangible assets				161,368		(107,138	)		54,230		135,141		(82,249	)		52,892

Unamortized intangible assets:
FCC Licenses				32,283		—			32,283		32,283		—			32,283

Total intangible assets			$	193,651	$	(107,138	)	$	86,513	$	167,424	$	(82,249	)	$	85,175

Amortization expense for the years ended December 31, 2017, 2016 and 2015 was $24.9 million, $21.6 million and $17.6 million, respectively.

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
2018	$	25,971
2019	$	15,487
2020	$	8,403
2021	$	2,579
2022	$	1,441
Thereafter	$	354

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

Long-Term Debt and Other Liabilities

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Long-Term Debt and Other Liabilities

6. Long-Term Debt and Other Liabilities

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


	December 31, 2017			December 31, 2016
Senior Secured Notes	$	705,520		$	525,000
Convertible Notes		311,544			292,024

Total debt		1,017,064			817,024
Less deferred financing costs		(16,196	)		(16,309	)

Total long-term debt	$	1,000,868		$	800,715

Senior Secured Notes—On June 14, 2016 (the “Issue Date”), Gogo Intermediate Holdings LLC (“GIH”) (a wholly owned subsidiary of Gogo Inc.) and Gogo Finance Co. Inc. (a wholly owned subsidiary of GIH) (the “Co-Issuer” and, together with GIH, the “Issuers”), issued $525 million aggregate principal amount of 12.500% senior secured notes due 2022 (the “Original Senior Secured Notes”) under an Indenture, dated as of June 14, 2016 (the “Original Indenture”), among the Issuers, us, as guarantor, certain subsidiaries of GIH, as guarantors (the “Subsidiary Guarantors” and, together with us, the “Guarantors”), and U.S. Bank National Association, as trustee (in such capacity, the “Trustee”) and as collateral agent (in such capacity, the “Collateral Agent”). On January 3, 2017, the Issuers issued $65 million aggregate principal amount of additional 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 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 when we paid our interest payment in January 2018. We refer to the Original Senior Secured Notes, the January 2017 Additional Notes and the September 2017 Additional Notes collectively as the “Senior Secured Notes.”

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

As of December 31, 2017 and 2016, the outstanding principal amount of the Senior Secured Notes was $690.0 million and $525.0 million, respectively. The unamortized debt premium and Consent fees were $15.5 million as of December 31, 2017 and the net carrying amount was $705.5 million as of December 31, 2017. The net carrying amount was $525.0 million as of December 31, 2016.

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

We paid approximately $11.4 million, $2.0 million and $2.5 million, respectively, of aggregate origination fees and financing costs related to the issuance of the Original Senior Secured Notes, the January 2017 Additional Notes and the September 2017 Additional Notes, which have been accounted for as deferred financing costs. Additionally, as noted above, we paid approximately $1.4 million of Consent Fees, which partially offset the net carrying value of the Senior Secured Notes. The deferred financing costs on our consolidated balance sheet are being amortized over the contractual term of the Senior Secured Notes using the effective interest method. Total amortization expense was $2.3 million and $1.0 million, respectively, for the years ended December 31, 2017 and 2016. As of December 31, 2017 and 2016, the balance of unamortized deferred financing costs related to the Senior Secured Notes was $12.6 million and $11.2 million, respectively, and is included as a reduction to long-term debt in our consolidated balance sheet. See Note 7, “Interest Costs” for additional information.

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

•

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

•

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

•

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

•

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

•

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

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

•

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

•

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

•

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

•

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

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

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

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


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

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

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

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

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

The Indenture provides for events of default, which, if any of them occur, would permit or require the principal, premium, if any, and interest on all of the then outstanding Senior Secured Notes issued under the Indenture to be due and payable immediately. As of December 31, 2017, no event of default had occurred.

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

The $361.9 million of proceeds received from the issuance of the Convertible Notes was initially allocated between long-term debt (the liability component) at $261.9 million and additional paid-in-capital (the equity component) at $100.0 million, within the consolidated balance sheet. The fair value of the liability component was measured using rates determined for similar debt instruments without a conversion feature. The carrying amount of the equity component, representing the conversion option, was determined by deducting the fair value of the liability component from the aggregate face value of the Convertible Notes. If we or the note holders elect not to settle the debt through conversion, we must settle the Convertible Notes at face value. Therefore, the liability component will be accreted up to the face value of the Convertible Notes, which will result in additional non-cash interest expense being recognized in the consolidated statements of operations through the Convertible Notes maturity date (see Note 7, “Interest Costs” for additional information). The effective interest rate on the Convertible Notes, including accretion of the notes to par and debt issuance cost amortization, was approximately 11.5%. The equity component will not be remeasured as long as it continues to meet the conditions for equity classification.

As of December 31, 2017 and 2016, the outstanding principal on the Convertible Notes was $361.9 million, the unamortized debt discount was $50.4 million and $69.9 million, respectively, and the net carrying amount of the liability component was $311.5 million and $292.0 million, respectively.

We incurred approximately $10.4 million of issuance costs related to the issuance of the Convertible Notes of which $7.5 million and $2.9 million were recorded to deferred financing costs and additional paid-in capital, respectively, in proportion to the allocation of the proceeds of the Convertible Notes. The $7.5 million recorded as deferred financing costs on our consolidated balance sheet is being amortized over the term of the Convertible Notes using the effective interest method. Total amortization expense of the deferred financing costs was $1.5 million, $1.4 million and $1.0 million, respectively, for the years ended December 31, 2017, 2016 and 2015. Amortization expense is included in interest expense in the consolidated statements of operations. As of December 31, 2017 and 2016, the balance of unamortized deferred financing costs related to the Convertible Notes was $3.6 million and $5.1 million, respectively, and is included as a reduction to long-term debt in our consolidated balance sheets. See Note 7, “Interest Costs” for additional information.

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

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

•

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

•

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

•

upon the occurrence of specified corporate events.

None of the above events allowing for conversion prior to December 1, 2019 occurred during the year ended December 31, 2017. Regardless of whether any of the foregoing circumstances occurs, a holder may convert its Convertible Notes, in multiples of $1,000 principal amount, at any time on or after December 1, 2019 until maturity.

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

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

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

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

We paid $22.2 million of loan origination fees and financing costs related to the Amended and Restated Senior Term Facility, all but $4.1 million of which were accounted for as deferred financing costs. Total amortization expense of the deferred financing costs was $1.4 million for year ended December 31, 2016. Amortization expense is included in interest expense in the consolidated statements of operations. As noted above, deferred financing costs related to the Amended and Restated Senior Term Facility were written off as of June 14, 2016.

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

Interest Costs

12 Months Ended

Dec. 31, 2017

Text Block [Abstract]

Interest Costs

7. Interest Costs

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

The following is a summary of our interest costs for the years ended December 31, 2017, 2016 and 2015 (in thousands):


	For the Years Ended December 31,
	2017			2016		2015
Interest costs charged to expense	$	89,915		$	62,348	$	42,165
Amortization of deferred financing costs		3,743			3,803		4,169
Accretion of Convertible Notes		19,520			17,496		12,555
Amortization of debt premium of Senior Secured Notes		(1,234	)		—		—

Interest expense		111,944			83,647		58,889
Interest costs capitalized to property and equipment		26			205		205
Interest costs capitalized to software		1,075			1,300		1,274

Total interest costs	$	113,045		$	85,152	$	60,368

Common Stock and Preferred Stock	12 Months Ended
Common Stock and Preferred Stock	Dec. 31, 2017
Text Block [Abstract]
Common Stock and Preferred Stock	8. Common Stock and Preferred Stock Common Stock—We have one class of common stock outstanding as of December 31, 2017 and 2016. Our common stock is junior to our preferred stock, if and when issued. Our Third Amended and Restated Certificate of Incorporation authorizes a total of 500,000,000 shares of common stock with a par value of $0.0001 per share. Our Third Amended and Restated Certificate of Incorporation authorizes 100,000,000 shares of new preferred stock with a par value of $0.01 per share. No shares of this new preferred stock have been issued. The preferred stock may be issued, from time to time, in one or more series as authorized by the Board of Directors, which has the authority to designate the terms of any series of preferred stock issued, including, without limitation, the number of shares to be included in such series of preferred stock, any dividend, redemption, conversion rights or voting powers and the designations, preferences and relative participating, optional or other special rights.

Fair Value of Financial Assets and Liabilities

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets and Liabilities

9. 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 1—defined as observable inputs such as quoted prices in active markets;

•

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

•

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

Long-Term Debt:

Our financial assets and liabilities that are disclosed but not measured at fair value include the Senior Secured Notes, the Convertible Notes and the Amended and Restated Senior Term Facility (when outstanding), which are reflected on the consolidated balance sheet at cost. The fair value measurements are classified as Level 2 within the fair value hierarchy since they are based on quoted market prices of our instruments in markets that are not active. We estimated the fair value of the Senior Secured Notes, Convertible Notes and Amended and Restated Senior Term Facility (when outstanding) by calculating the upfront cash payment a market participant would require to assume these obligations. The upfront cash payments used in the calculations of fair value on our December 31, 2017 consolidated balance sheet, excluding any issuance costs, is the amount that a market participant would be able to lend at December 31, 2017 to an entity with a credit rating similar to ours and achieve sufficient cash inflows to cover the scheduled cash outflows under the Senior Secured Notes and the Convertible Notes. The calculated fair value of our Convertible Notes is highly correlated to our stock price and as a result significant changes to our stock price could have a significant impact on the calculated fair value of our Convertible Notes.

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


	December 31, 2017					December 31, 2016
	Fair Value ⁽¹⁾		Carrying Value			Fair Value ⁽¹⁾		Carrying Value ⁽²⁾
Senior Secured Notes	$	782,000	$	705,520	⁽²⁾	$	572,000	$	525,000
Convertible Notes		330,000		311,544	⁽³⁾		275,000		292,024	⁽³⁾

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

(2)	Carrying value of the Senior Secured Notes includes unamortized debt premium and Consent Fees of $15.5 million as of December 31, 2017. See Note 6, “Long-Term Debt and Other Liabilities,” for further information.

(3)	Carrying value of the Convertible Notes excludes unamortized debt discount of $50.4 million and $69.9 million, respectively, as of December 31, 2017 and 2016. See Note 6, “Long-Term Debt and Other Liabilities,” for further information.

We have held-to-maturity financial instruments where carrying value approximated fair value. There were no fair value adjustments to these financial instruments during the years ended December 31, 2017, 2016 and 2015.

- 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

Business Segments and Major Customers

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Business Segments and Major Customers

10. 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”.

CA-NA Segment: Our CA-NA segment provides inflight connectivity and wireless digital entertainment solutions to commercial airline passengers flying routes that generally begin and end within North America, which for this purpose includes the United States, Canada and Mexico.

CA-ROW Segment: Our CA-ROW business provides inflight connectivity and wireless digital entertainment solutions to passengers flying on 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) for which our international service is provided.

BA Segment: Our BA business provides equipment for inflight connectivity along with voice and data services to the business aviation market. BA services include AVANCE (formerly Gogo Biz), our inflight broadband service that utilizes both our ATG network and our ATG spectrum, Passenger Entertainment, our inflight entertainment service, and satellite-based voice and data services through strategic alliances with satellite companies. Customers include business aircraft manufacturers, owners, and operators, as well as government and military entities.

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

Management evaluates performance and allocates resources to each segment based on segment profit (loss), which is calculated internally as net income (loss) attributable to common stock before interest expense, interest income, income taxes, depreciation and amortization, and certain non-cashcharges (including amortization of deferred airborne lease incentives, stock-based compensation expense, adjustment to deferred financing costs and loss on extinguishment of debt). 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 Year Ended December 31, 2017
	CA-NA		CA-ROW			BA		Total
Service revenue	$	393,484	$	53,542		$	170,880	$	617,906
Equipment revenue		7,129		4,323			69,732		81,184

Total revenue	$	400,613	$	57,865		$	240,612	$	699,090

Segment profit (loss)	$	66,802	$	(106,978	)	$	99,409	$	59,233


	For the Year Ended December 31, 2016
	CA-NA		CA-ROW			BA		Total
Service revenue	$	357,250	$	24,198		$	132,845	$	514,293
Equipment revenue		14,273		1,180			66,804		82,257

Total revenue	$	371,523	$	25,378		$	199,649	$	596,550

Segment profit (loss)	$	71,870	$	(87,637	)	$	82,874	$	67,107


	For the Year Ended December 31, 2015
	CA-NA		CA-ROW			BA		Total
Service revenue	$	308,360	$	11,563		$	100,052	$	419,975
Equipment revenue		2,302		1			78,610		80,913

Total revenue	$	310,662	$	11,564		$	178,662	$	500,888

Segment profit (loss)	$	41,891	$	(76,445	)	$	71,884	$	37,330

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


	For the Years Ended December 31,
	2017			2016			2015
CA-NA segment profit	$	66,802		$	71,870		$	41,891
CA-ROW segment loss		(106,978	)		(87,637	)		(76,445	)
BA segment profit		99,409			82,874			71,884

Total segment profit		59,233			67,107			37,330
Interest income		2,964			1,635			181
Interest expense		(111,944	)		(83,647	)		(58,889	)
Depreciation and amortization		(145,490	)		(105,642	)		(87,036	)
Amortization of deferred airborne lease incentives ⁽¹⁾		41,816			29,519			20,163
Stock compensation expense		(19,821	)		(17,621	)		(15,299	)
Adjustment of deferred financing fees		—			792			(2,251	)
Loss on extinguishment of debt		—			(15,406	)		—
Other income (expense)		(750	)		72			(574	)

Loss before income taxes	$	(173,992	)	$	(123,191	)	$	(106,375	)

(1)

Amortization of deferred airborne lease incentive only relates to our CA-NA and CA-ROW segments. See Note 14, “Leases” for further information.

Major Customers and Airline Partnerships—During the years ended December 31, 2017, 2016 and 2015, no customer accounted for more than 10% of our consolidated revenue. One airline partner, under the turnkey model, accounted for approximately 21% and 18%, respectively, of consolidated accounts receivable as of December 31, 2017 and 2016. Additionally, one customer accounted for approximately 15% of consolidated accounts receivable as of December 31, 2017.

Revenue earned through Delta Air Lines and American Airlines, both of which were under the turnkey model, accounted for approximately 47%, 50% and 50%, respectively, of consolidated revenue for the years ended December 31, 2017, 2016 and 2015.

Stock-Based Compensation

12 Months Ended

Dec. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

11. Stock-Based Compensation

As of December 31, 2017, we maintained three stock-based employee compensation plans: the Gogo Inc. 2016 Omnibus Incentive Plan (the “2016 Omnibus Plan”), the Gogo Inc. 2013 Omnibus Incentive Plan (the “2013 Omnibus Plan”), and The Aircell Holdings Inc. Stock Option Plan (the “2010 Plan”), collectively referred to as the “Stock Plans”. Our Stock Plans provide for the grant of both equity and cash awards, including non-qualified stock options, incentive stock options, stock appreciation rights, performance awards (shares and units), restricted stock, restricted stock units (“RSUs”), deferred share units (“DSUs”) and other stock-based awards and dividend equivalents to eligible employees, directors and consultants, as determined by the Compensation Committee of our Board of Directors.

Under the Stock Plans, 20,006,570 shares of common stock were reserved for issuance. As of December 31, 2017, 3,387,202 shares remained available for grant under our Stock Plans.

The contractual life of granted options is 10 years. All options that are unvested as of the date on which a recipient’s employment terminates, as well as vested options that are not exercised within a prescribed period following termination, are forfeited and become available for future grants. Options granted to date include options that a) vest 20% upon grant with the remainder vesting in equal annual increments over a four-year period, b) vest over a four-year period with 25% vesting at the end of each year or c) vest on the date of grant for options granted to directors. Beginning in 2013 we granted RSUs that vest in equal annual increments over a four-year period. Vested RSUs will be settled, at the discretion of the Compensation Committee, in shares of our common stock or in cash equal to the value of the applicable number of shares of our common stock on the vesting date. We also granted directors DSUs that were vested at grant. DSUs will be settled in shares of our common stock 90 days after the director ceases to serve as a director. Beginning in 2014 we granted restricted stock, which vests in equal annual increments over a four-year period. These shares are deemed issued as of the date of grant, but not outstanding until they vest. We intend to settle RSU, DSU and restricted stock awards in stock and have the shares available to do so. In June 2016, the Compensation Committee approved grants of both non-market based awards and market based awards. The contractual term and time-based vesting provisions for the non-market based awards are consistent with prior grants as noted above. The market based awards vest based on achieving one or more predetermined market conditions and completion of the same time-based vesting requirements applicable to the non-market based awards.

The following is a summary of our stock-based compensation expense included in the consolidated statements of operations for the years December 31, 2017, 2016 and 2015 (in thousands):


	2017		2016		2015
Cost of service revenue	$	1,748	$	1,499	$	1,161
Cost of equipment revenue		185		117		86
Engineering, design and development		3,656		3,046		2,584
Sales and marketing		4,751		4,962		4,107
General and administrative		9,481		7,997		7,361

Total stock-based compensation expense	$	19,821	$	17,621	$	15,299

A summary of stock option activity for the year ended December 31, 2017, is as follows:


	Number of Options			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value (in thousands)
Options outstanding—January 1, 2017		9,119,542		$	14.51		6.81	$	1,789
Granted		2,031,292		$	11.99
Exercised		(50,392	)	$	8.92
Forfeited		(441,090	)	$	14.01
Expired		(271,976	)	$	18.53

Options outstanding—December 31, 2017		10,387,376		$	13.96		6.22	$	8,924

Options exercisable—December 31, 2017		6,306,064		$	14.85		4.74	$	5,270

There were no stock options exercised prior to 2013. As of December 31, 2017, total unrecognized compensation costs related to unvested stock options were approximately $15 million which is expected to be recognized over a weighted average period of approximately 2.5 years. The total grant date fair value of stock options vested in 2017, 2016 and 2015 was approximately $10.0 million, $9.0 million and $8.0 million, respectively.

We estimate the fair value of stock options using the Black-Scholes option-pricing model. Weighted average assumptions used and weighted average grant date fair value of stock options granted for the years ended December 31, 2017, 2016, and 2015, were as follows:


	2017			2016			2015
Approximate risk-free interest rate		2.3	%		1.3	%		1.8	%
Average expected life (years)		6.14			6.12			6.17
Dividend yield		N/A			N/A			N/A
Volatility		45.3	%		45.3	%		33.1	%
Weighted average grant date fair value of common stock underlying options granted	$	11.97		$	8.72		$	20.65
Weighted average grant date fair value of stock options granted	$	5.59		$	3.88		$	7.39

The risk-free interest rate assumptions were based on the U.S. Treasury yield curve for the term that mirrored the expected term in effect at the time of grant. The expected life of our stock options was determined based upon a simplified assumption that the stock options will be exercised evenly from vesting to expiration, as we do not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected life. The dividend yield was based on expected dividends at the time of grant. We have not been a public company long enough to calculate volatility based exclusively on our own common stock. Therefore, the expected volatility is calculated as of each grant date based on a weighting of our own common stock and reported data for a peer group of publicly traded companies for which historical information is available.

The following table summarizes the activities for our unvested RSUs and DSUs for the year ended December 31, 2017:


	Number of Underlying Shares			Weighted Average Grant Date Fair Value
Unvested—January 1, 2017		1,492,348		$	12.81
Granted		961,183		$	10.68
Vested		(485,219	)	$	14.38
Forfeited/canceled		(250,455	)	$	12.23

Unvested—December 31, 2017		1,717,857		$	11.27

As of December 31, 2017, there was approximately $14 million of unrecognized compensation cost related to unvested employee RSUs. This amount is expected to be recognized over a weighted-average period of approximately 2.3 years. The total grant date fair value of RSUs and DSUs vested in 2017 was approximately $8 million.

The following table summarizes the activity for our restricted stock for the year ended December 31, 2017:


	Number of Underlying Shares			Weighted Average Grant Date Fair Value
Unvested—January 1, 2017		233,972		$	14.26
Granted		92,910		$	12.19
Vested		(112,738	)	$	13.76
Forfeited/canceled		—		$	—

Unvested—December 31, 2017		214,144		$	13.62

As of December 31, 2017, there was approximately $2 million of unrecognized compensation cost related to unvested employee restricted stock. This amount is expected to be recognized over a weighted-average period of approximately 2.3 years.

ESPP—In June 2013 the Board of Directors and stockholders approved the Employee Stock Purchase Plan (“ESPP”), which became effective on June 26, 2013 and during 2017, increased the number of shares reserved under the ESPP. The ESPP allows eligible employees to purchase a limited number of shares of common stock during pre-specified offering periods at a discount established by the Compensation Committee not to exceed 15% of the fair market value of the common stock at the beginning or end of the offering period (whichever is lower). Under the ESPP, 1,200,000 shares were reserved for issuance and 153,628 shares of common stock were issued during the year ended December 31, 2017.

Income Tax

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Tax

13. Income Tax

For financial reporting purposes, loss before income taxes included the following components for the years ended December 31, 2017, 2016, and 2015 (in thousands):


	For the Years Ended December 31,
	2017			2016			2015
United States	$	(138,881	)	$	(108,363	)	$	(97,398	)
Foreign		(35,111	)		(14,828	)		(8,977	)

Loss before income taxes	$	(173,992	)	$	(123,191	)	$	(106,375	)

Significant components of the (benefit) provision for income taxes for the years ended December 31, 2017, 2016, and 2015, are as follows (in thousands):


	For the Years Ended December 31,
	2017			2016		2015
Current:
Federal	$	—		$	—	$	—
State		235			451		396
Foreign		49			24		15

		284			475		411

Deferred:
Federal		(2,590	)		764		764
State		309			75		63

		(2,281	)		839		827

Total	$	(1,997	)	$	1,314	$	1,238

The benefit (provision) for income taxes differs from income taxes computed at the federal statutory tax rates for the years ended December 31, 2017, 2016, and 2015 as a result of the following items:


	For the Years Ended December 31,
	2017			2016			2015
Federal statutory rate		35.0	%		35.0	%		35.0	%
Effect of:
Impact of change in tax rate		(47.0	)		—			—
Change in valuation allowance		12.5			(38.5	)		(37.1	)
State income taxes-net of federal tax benefit		2.4			3.8			2.4
Other		(1.8	)		(1.4	)		(1.5	)

Effective tax rate		1.1	%		(1.1	)%		(1.2	)%

Components of the net deferred income tax asset as of December 31, 2017 and 2016 are as follows (in thousands):


	December 31, 2017			December 31, 2016
Deferred income tax assets:
Compensation accruals	$	4,854		$	5,944
Stock options		13,256			15,480
Inventory		702			390
Warranty reserves		605			990
Deferred rent		9,868			14,976
Deferred revenue		51,295			65,391
Federal net operating loss (NOL)		129,064			125,257
State NOL		21,122			10,660
UNICAP adjustment		3,241			6,742
Finite-lived intangible assets		8,756			15,225
Other		7,500			3,924

Total deferred income tax assets		250,263			264,979

Deferred income tax liabilities:
Fixed assets		(59,885	)		(41,331	)
Indefinite-lived intangible assets		(5,983	)		(8,264	)
Convertible Notes discount		(12,243	)		(26,134	)
Other		(170	)		(264	)

Total deferred income tax liabilities		(78,281	)		(75,993	)

Total deferred income tax		171,982			188,986
Valuation allowance		(177,965	)		(197,250	)

Net deferred income tax liability	$	(5,983	)	$	(8,264	)

We assess the realizability of the deferred tax assets by considering whether it is more likely than not that some portion or all of the deferred tax assets would not be realized through the generation of future taxable income. We generated net losses in fiscal years 2017, 2016, and 2015, which means we are in a domestic three-year cumulative loss position. As a result of this and other assessments in fiscal 2017, we concluded that a full valuation allowance is required for all deferred tax assets and liabilities except for deferred tax liabilities associated with indefinite-lived intangible assets.

As of December 31, 2017, the federal net operating loss (“NOL”) carryforward amount was approximately $545 million and the state NOL carryforward amount was approximately $356 million. The federal NOLs begin to expire in 2031. The state NOLs expire in various tax years and began to expire in 2016.

Utilization of our NOL and tax credit carryforwards may be subject to substantial annual limitations due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such annual limitations could result in the expiration of the NOL and tax credit carryforwards before their utilization. The events that may cause ownership changes include, but are not limited to, a cumulative stock ownership change of greater than 50% over a three-year period.

We are subject to taxation in the United States, Canada, Switzerland, Japan, Mexico, Brazil, Singapore, the United Kingdom, Hong Kong, Australia, China, France and Germany. With few exceptions, as of December 31, 2017, we are no longer subject to U.S. federal, state, local or foreign examinations by tax authorities for years before 2014.

As a result of the passage of H.R. 1, originally known as the Tax Cuts and Jobs Act (“Tax Reform”) in December 2017, the tax effected amounts of the deferred tax assets and liabilities decreased. A large portion of this change in the deferred tax balances will result in an offsetting change to the deferred tax asset valuation allowance and will not affect tax expense. For the deferred tax liabilities that are not offset by changes to the valuation allowance, our net deferred tax liability was reduced by approximately $3 million. We continue to evaluate the overall effect of U.S. Tax Reform on our business.

As of December 31, 2017, 2016 and 2015, we did not have any unrecognized tax benefits.

We record penalties and interest relating to uncertain tax positions in the income tax provision line item in the consolidated statement of operations. No penalties or interest related to uncertain tax positions were recorded for the years ended December 31, 2017, 2016 or 2015. As of December 31, 2017 and 2016, we did not have a liability recorded for interest or potential penalties.

We do not expect there will be a change in the unrecognized tax benefits within the next 12 months.

Leases

12 Months Ended

Dec. 31, 2017

Leases [Abstract]

Leases

14. Leases

Arrangements with Commercial Airlines—Under the turnkey model, we recognized $41.8 million, $29.5 million, and $20.2 million, respectively, for the years ended December 31, 2017, 2016 and 2015, as a reduction to our cost of service revenue in our consolidated statements of operations. As of December 31, 2017, deferred airborne lease incentives of $42.1 million and $142.9 million, respectively, are included in current andnon-current liabilities in our consolidated balance sheet. As of December 31, 2016, deferred airborne lease incentives of $36.3 million and $135.9 million, respectively, are included in current and non-current liabilities in our 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 $30.5 million $41.6 million, and $40.6 million, respectively, for the years ended December 31, 2017, 2016 and 2015.

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

Leases and Cell Site Contracts - We have lease agreements relating to certain facilities and equipment, which are considered operating leases. Rent expense for such operating leases was $12.0 million, $11.8 million and $15.3 million, respectively, for the years ended December 31, 2017, 2016 and 2015. Additionally, we have operating leases with wireless service providers for tower space and base station capacity on a volume usage basis (“cell site leases”), some of which provide for minimum annual payments. Our cell site leases generally provide for an initial noncancelable term with various renewal options. Total cell site rental expense was $9.5 million, $9.4 million and $9.4 million, respectively, for the years ended December 31, 2017, 2016 and 2015.

Annual future minimum obligations for operating leases for each of the next five years and thereafter, other than the arrangements we have with our commercial airline partners, as of December 31, 2017, are as follows (in thousands):


	Operating
Years ending December 31,	Leases
2018	$	21,965
2019	$	20,755
2020	$	18,628
2021	$	18,475
2022	$	17,183
Thereafter	$	99,526

Equipment Leases—We lease certain computer and network equipment under capital leases, for which interest has been imputed with annual interest rates ranging from approximately 8% to 14%. As of December 31, 2017, the computer equipment leases were classified as part of office equipment, furniture, and fixtures and other in our consolidated balance sheet at a gross cost of $5.0 million. As of December 31, 2017, the network equipment leases were classified as part of network equipment in our consolidated balance sheet at a gross cost of $7.5 million. Annual future minimum obligations under capital leases for each of the next five years and thereafter, as of December 31, 2017, are as follows (in thousands):


	Capital
Years ending December 31,	Leases
2018	$	2,027
2019		1,027
2020		215
Thereafter		—

Total minimum lease payments		3,269
Less: Amount representing interest		(355	)

Present value of net minimum lease payments	$	2,914

The $2.9 million present value of net minimum lease payments as of December 31, 2017 has a current portion of $1.8 million included in current portion of long-term debt and capital leases and a non-current portion of $1.1 million included in other non-current liabilities.

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	15. 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 December 31, 2017 commit us to purchase transponder and teleport satellite services totaling approximately $78.3 million in 2018, $80.9 million in 2019, $85.3 million in 2020, $76.3 million in 2021, $73.9 million in 2022 and $231.3 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 liquidated damages to our airline partners on a per aircraft, per day or per hour basis 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 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.

Quarterly Data (Unaudited)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Quarterly Data (Unaudited)

16. Quarterly Data (Unaudited)

Summarized quarterly financial information is as follows for each quarterly period for the years ended December 31, 2017 and 2016 (in thousands, except per share amounts):


	For the Three Month Periods Ended
	Mar 31, 2017			June 30, 2017			Sep 30, 2017			Dec 31, 2017
Total revenue	$	165,406		$	172,800		$	172,874		$	188,010
Operating loss		(14,698	)		(17,336	)		(17,801	)		(14,427	)
Net loss		(41,367	)		(44,209	)		(45,281	)		(41,138	)
Net loss to attributable to common stock		(41,367	)		(44,209	)		(45,281	)		(41,138	)
Net loss attributable to common stock per share—basic and diluted	$	(0.52	)	$	(0.56	)	$	(0.57	)	$	(0.52	)
Weighted average number of shares—basic and diluted		79,139			79,334			79,543			79,603


	For the Three Month Periods Ended
	Mar 31, 2016			June 30, 2016			Sep 30, 2016			Dec 31, 2016
Total revenue	$	141,746		$	147,539		$	147,267		$	159,998
Operating loss		(8,592	)		(7,096	)		(8,774	)		(2,175	)
Net loss		(24,106	)		(40,194	)		(33,273	)		(26,932	)
Net loss to attributable to common stock		(24,106	)		(40,194	)		(33,273	)		(26,932	)
Net loss attributable to common stock per share—basic and diluted	$	(0.31	)	$	(0.51	)	$	(0.42	)	$	(0.34	)
Weighted average number of shares—basic and diluted		78,738			78,849			79,003			79,067

Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Financial Information of Registrant

17. Condensed Financial Information of Registrant

The following presents the condensed financial information of our parent company on a standalone basis.

Gogo Inc.

Condensed Balance Sheets

(in thousands)


	December 31,			December 31,
	2017			2016
Assets:
Cash and cash equivalents	$	9,734		$	1,071
Short-term investments		192,893			213,905
Prepaid expenses and other current assets		913			567
Other non-current assets		100			—
Investments and advances with subsidiaries		—			44,288

Total assets	$	203,640		$	259,831

Liabilities and stockholders’ deficit:
Total current liabilities	$	4,847		$	4,996
Long-term debt		307,968			286,964
Other non-current liabilities		5,983			8,264
Investments and payables with subsidiaries		76,406			—

Total liabilities		395,204			300,224
Total stockholders’ deficit		(191,564	)		(40,393	)

Total liabilities and stockholders’ deficit	$	203,640		$	259,831

Gogo Inc.

Condensed Statements of Operations and Comprehensive Loss

(in thousands)


	For the Years Ended December 31,
	2017			2016			2015
Interest income	$	(1,681	)	$	(978	)	$	(158	)
Interest expense		34,577			32,461			24,609

Total other (income) expense		32,896			31,483			24,451

Income (loss) before income taxes		(32,896	)		(31,483	)		(24,451	)
Income tax provision (benefit)		(2,045	)		1,276			1,238
Equity losses of subsidiaries		141,144			91,746			81,924

Net loss		(171,995	)		(124,505	)		(107,613	)

Comprehensive loss	$	(171,995	)	$	(124,480	)	$	(108,601	)

Gogo Inc.

Condensed Statements of Cash Flows

(in thousands)


	For the Years Ended December 31,
	2017			2016			2015
Net loss	$	(171,995	)	$	(124,505	)	$	(107,613	)
Accretion of debt discount		19,520			17,496			12,555
Amortization of deferred financing costs		1,484			1,392			1,044
Subsidiary equity losses		141,144			91,746			81,924
Deferred income taxes		(2,281	)		839			827
Other operating activities		(609	)		(319	)		4,544

Net cash used in operating activities		(12,737	)		(13,351	)		(6,719	)

Acquisition of short-term investments		(192,893	)		(213,905	)		(329,503	)
Redemption of short-term investments		213,905			179,593			189,868
Investments and advances with subsidiaries		601			(23,312	)		(71,964	)
Other, net		14			(114	)		—

Net cash provided by (used in) investing activities		21,627			(57,738	)		(211,599	)

Financing activities:
Proceeds from issuance of convertible notes		—			—			361,940
Forward transactions		—			—			(140,000	)
Other financing activities		(227	)		271			(5,724	)

Net cash provided by (used in) financing activities		(227	)		271			216,216

Increase (decrease) in cash and cash equivalents		8,663			(70,818	)		(2,102	)
Cash and cash equivalents at the beginning of period		1,071			71,889			73,991

Cash and cash equivalents at the end of period	$	9,734		$	1,071		$	71,889

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation—The consolidated financial statements include our wholly owned subsidiaries. All intercompany transactions and account balances have been eliminated.

Use of Estimates

Reclassifications

Significant Risks and Uncertainties

Cash, Cash Equivalents and Short-Term Investments

Certain cash amounts are restricted as to use and are classified outside of cash and cash equivalents. See Note 6, “Long-term Debt and Other Liabilities,” for further details.

Concentrations of Credit Risk

See Note 10, “Business Segments and Major Customers,” for further details.

Income Tax

See Note 13, “Income Tax,” for further details.

Inventories

See Note 4, “Composition of Certain Balance Sheet Accounts,” for further details.

Property and Equipment and Depreciation


Office equipment, furniture, fixtures and other		3-7 years
Leasehold improvements		3-13 years
Airborne equipment		7 years
Network equipment		5-25 years

See Note 4, “Composition of Certain Balance Sheet Accounts,” for further details.

Improvements to leased property are amortized over the shorter of the useful life of the improvement or the term of the related lease. Repairs and maintenance costs are expensed as incurred.

Goodwill and Other Intangible Assets

Intangible assets that are deemed to have a finite life are amortized over their useful lives as follows:


Software		3-8 years
OEM and dealer relationships		10 years
Service customer relationships		5-7 years
Other intangible assets		4-12 years

See Note 5, “Intangible Assets,” for further details.

Long-Lived Assets

Arrangements with Commercial Airlines

See Note 14, “Leases,” for further details.

Revenue Recognition

CA-NA and CA-ROW also derive service revenue under arrangements with various third parties who sponsor free or discounted access to our service. The sponsorship arrangements vary with respect to duration and the airlines included. For sponsorship arrangements that occur across more than a single calendar month, revenue is deferred and recognized evenly throughout the sponsorship term. Other sources of CA-NA and CA-ROW revenue includes fees paid by third parties to advertise on or to enable e-commerce transactions through our airborne portal. For advertising or e-commercearrangements that occur across more than a single calendar month, revenue is deferred and recognized evenly throughout the term of the arrangement.

Service revenue for BA generally consists of monthly recurring and usage fees, which are recognized monthly as the services are provided and billed to customers.

Research and Development Costs

Software Development Costs

Warranty

See Note 4, “Composition of Certain Balance Sheet Accounts,” for the details of the changes in our warranty reserve.

Asset Retirement Obligations

See Note 4, “Composition of Certain Balance Sheet Accounts,” for the details of the changes in our asset retirement obligations.

Fair Value of Financial Instruments

See Note 9, “Fair Value of Financial Assets and Liabilities,” for further information.

Derivatives

See Note 6, “Long-Term Debt and Other Liabilities,” Note 8, “Common Stock and Preferred Stock,” and Note 9, “Fair Value of Financial Assets and Liabilities,” for further information.

Convertible Notes

See Note 6, “Long-Term Debt and Other Liabilities,” for further information.

Net Loss Per Share

Net Loss Per Share—We calculate basic and diluted net loss per share using the weighted-average number of common shares outstanding during the period.

See Note 3, “Net Loss Per Share,” for further information.

Stock-Based Compensation Expense

See Note 11, “Stock-Based Compensation,” for further information.

Leases

See Note 14, “Leases,” for further information.

Advertising Costs

Advertising Costs—Costs for advertising are expensed as incurred.

Debt Issuance Costs

See Note 6, “Long-Term Debt and Other Liabilities” for further information.

Comprehensive Loss

Comprehensive Loss—Comprehensive loss for the years ended December 31, 2017, 2016 and 2015 is net loss plus unrealized gains and losses on foreign currency translation adjustments.

Recently Issued Accounting Pronouncements

•

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Accounting Policies [Abstract]

Depreciation of Property and Equipment Estimated Useful Lives

Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives for owned assets, which are as follows:


Office equipment, furniture, fixtures and other		3-7 years
Leasehold improvements		3-13 years
Airborne equipment		7 years
Network equipment		5-25 years

Finite Lived Intangible Asset Useful Life

Intangible assets that are deemed to have a finite life are amortized over their useful lives as follows:


Software		3-8 years
OEM and dealer relationships		10 years
Service customer relationships		5-7 years
Other intangible assets		4-12 years

Net Loss Per Share (Tables)

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share


	For the Years Ended December 31,
	2017			2016			2015
Net loss	$	(171,995	)	$	(124,505	)	$	(107,613	)
Less: Participation rights of the Forward Transactions		—			—			—

Undistributed losses	$	(171,995	)	$	(124,505	)	$	(107,613	)

Weighted-average common shares outstanding-basic and diluted		79,407			78,915			79,701

Net loss attributable to common stock per share-basic and diluted	$	(2.17	)	$	(1.58	)	$	(1.35	)

Composition of Certain Balance Sheet Accounts (Tables)

12 Months Ended

Dec. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Components of Inventories Included within BA Segment

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


	December 31,
	2017		2016
Work-in-process component parts	$	35,009	$	39,150
Finished goods		10,534		11,116

Total inventory	$	45,543	$	50,266

Property and Equipment

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


	December 31,
	2017			2016
Office equipment, furniture, fixtures and other	$	46,445		$	49,529
Leasehold improvements		42,522			42,143
Airborne equipment		765,652			557,196
Network equipment		199,304			168,121

		1,053,923			816,989
Accumulated depreciation		(397,885	)		(297,179	)

Property and equipment, net	$	656,038		$	519,810

Schedule of Other Non-Current Assets

Other non-current assets as of December 31, 2017 and 2016 consist of the following (in thousands):


	December 31,
	2017		2016
Deferred cost of equipment revenue	$	40,986	$	14,159
Restricted cash		6,873		7,773
Other		19,248		13,929

Total other non-current assets	$	67,107	$	35,861

Accrued Liabilities

Accrued liabilities as of December 31, 2017 and 2016 consist of the following (in thousands):


	December 31,
	2017		2016
Employee compensation and benefits	$	25,621	$	21,008
Airborne equipment and installation costs		44,059		22,442
Airborne partner related accrued liabilities		13,566		14,307
Accrued interest		47,649		40,436
Accrued revenue share		17,339		15,521
Other		53,581		33,862

Total accrued liabilities	$	201,815	$	147,576

Other Non-Current Liabilities

Other non-current liabilities as of December 31, 2017 and 2016 consist of the following (in thousands):


	December 31,
	2017		2016
Deferred revenue	$	73,192	$	38,976
Deferred rent		37,354		36,538
Asset retirement obligations		9,668		8,527
Deferred tax liabilities		5,983		8,264
Other		8,458		6,627

Total other non-current liabilities	$	134,655	$	98,932

Schedule of Changes in Warranty Reserves

Changes in our warranty reserve, which is included in accrued liabilities, for the years ended December 31, 2017, 2016 and 2015 consist of the following (in thousands):


	Warranty Reserve
Balance—January 1, 2015	$	1,085
Accruals for warranties issued		1,882
Settlements of warranties		(1,133	)

Balance—December 31, 2015		1,834
Accruals for warranties issued		1,535
Settlements of warranties		(793	)

Balance—December 31, 2016		2,576
Accruals for warranties issued		348
Settlements of warranties		(500	)

Balance—December 31, 2017	$	2,424

Schedule of Changes in Non Current Asset Retirement Obligation

Changes in our non-current asset retirement obligations for the years ended December 31, 2017 and 2016 consist of the following (in thousands):


	Asset Retirement Obligation
Balance—January 1, 2016	$	7,847
Liabilities incurred ⁽¹⁾		11
Liabilities settled		(174	)
Accretion expense		835
Foreign exchange rate adjustments		8

Balance—December 31, 2016		8,527
Liabilities incurred ⁽²⁾		370
Liabilities settled		(252	)
Accretion expense		981
Foreign exchange rate adjustments		42

Balance—December 31, 2017	$	9,668

(1)

Includes $0.5 million related to a change in estimate in the expected cash flows for our estimated liabilities.

(2)

Includes $0.2 million related to a change in estimate in the expected cash flows for our estimated liabilities.

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets, Other than Goodwill

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


	Weighted Average Remaining Useful Life (in years)		As of December 31, 2017							As of December 31, 2016
	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		2.1	$	145,063	$	(93,523	)	$	51,540	$	118,836	$	(70,127	)	$	48,709
OEM and dealer relationships				6,724		(6,724	)		—		6,724		(6,667	)		57
Service customer relationships		2.3		8,081		(5,788	)		2,293		8,081		(4,773	)		3,308
Other intangible assets		1.3		1,500		(1,103	)		397		1,500		(682	)		818

Total amortized intangible assets				161,368		(107,138	)		54,230		135,141		(82,249	)		52,892

Unamortized intangible assets:
FCC Licenses				32,283		—			32,283		32,283		—			32,283

Total intangible assets			$	193,651	$	(107,138	)	$	86,513	$	167,424	$	(82,249	)	$	85,175

Summary of Amortization Expenses

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


Years ending December 31,	Amortization Expense
2018	$	25,971
2019	$	15,487
2020	$	8,403
2021	$	2,579
2022	$	1,441
Thereafter	$	354

Long-Term Debt and Other Liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

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


	December 31, 2017			December 31, 2016
Senior Secured Notes	$	705,520		$	525,000
Convertible Notes		311,544			292,024

Total debt		1,017,064			817,024
Less deferred financing costs		(16,196	)		(16,309	)

Total long-term debt	$	1,000,868		$	800,715

Summary of Redemption Prices Plus Accrued and Unpaid Interest

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


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

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details

Interest Costs (Tables)

12 Months Ended

Dec. 31, 2017

Text Block [Abstract]

Summary of Interest Costs

The following is a summary of our interest costs for the years ended December 31, 2017, 2016 and 2015 (in thousands):


	For the Years Ended December 31,
	2017			2016		2015
Interest costs charged to expense	$	89,915		$	62,348	$	42,165
Amortization of deferred financing costs		3,743			3,803		4,169
Accretion of Convertible Notes		19,520			17,496		12,555
Amortization of debt premium of Senior Secured Notes		(1,234	)		—		—

Interest expense		111,944			83,647		58,889
Interest costs capitalized to property and equipment		26			205		205
Interest costs capitalized to software		1,075			1,300		1,274

Total interest costs	$	113,045		$	85,152	$	60,368

Fair Value of Financial Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

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

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


	December 31, 2017					December 31, 2016
	Fair Value ⁽¹⁾		Carrying Value			Fair Value ⁽¹⁾		Carrying Value ⁽²⁾
Senior Secured Notes	$	782,000	$	705,520	⁽²⁾	$	572,000	$	525,000
Convertible Notes		330,000		311,544	⁽³⁾		275,000		292,024	⁽³⁾

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

(2)	Carrying value of the Senior Secured Notes includes unamortized debt premium and Consent Fees of $15.5 million as of December 31, 2017. See Note 6, “Long-Term Debt and Other Liabilities,” for further information.

(3)	Carrying value of the Convertible Notes excludes unamortized debt discount of $50.4 million and $69.9 million, respectively, as of December 31, 2017 and 2016. See Note 6, “Long-Term Debt and Other Liabilities,” for further information.

Business Segments and Major Customers (Tables)

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Summary of Reportable Segments

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


	For the Year Ended December 31, 2017
	CA-NA		CA-ROW			BA		Total
Service revenue	$	393,484	$	53,542		$	170,880	$	617,906
Equipment revenue		7,129		4,323			69,732		81,184

Total revenue	$	400,613	$	57,865		$	240,612	$	699,090

Segment profit (loss)	$	66,802	$	(106,978	)	$	99,409	$	59,233


	For the Year Ended December 31, 2016
	CA-NA		CA-ROW			BA		Total
Service revenue	$	357,250	$	24,198		$	132,845	$	514,293
Equipment revenue		14,273		1,180			66,804		82,257

Total revenue	$	371,523	$	25,378		$	199,649	$	596,550

Segment profit (loss)	$	71,870	$	(87,637	)	$	82,874	$	67,107


	For the Year Ended December 31, 2015
	CA-NA		CA-ROW			BA		Total
Service revenue	$	308,360	$	11,563		$	100,052	$	419,975
Equipment revenue		2,302		1			78,610		80,913

Total revenue	$	310,662	$	11,564		$	178,662	$	500,888

Segment profit (loss)	$	41,891	$	(76,445	)	$	71,884	$	37,330

Reconciliation of Segment Profit (loss)

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


	For the Years Ended December 31,
	2017			2016			2015
CA-NA segment profit	$	66,802		$	71,870		$	41,891
CA-ROW segment loss		(106,978	)		(87,637	)		(76,445	)
BA segment profit		99,409			82,874			71,884

Total segment profit		59,233			67,107			37,330
Interest income		2,964			1,635			181
Interest expense		(111,944	)		(83,647	)		(58,889	)
Depreciation and amortization		(145,490	)		(105,642	)		(87,036	)
Amortization of deferred airborne lease incentives ⁽¹⁾		41,816			29,519			20,163
Stock compensation expense		(19,821	)		(17,621	)		(15,299	)
Adjustment of deferred financing fees		—			792			(2,251	)
Loss on extinguishment of debt		—			(15,406	)		—
Other income (expense)		(750	)		72			(574	)

Loss before income taxes	$	(173,992	)	$	(123,191	)	$	(106,375	)

(1)

Amortization of deferred airborne lease incentive only relates to our CA-NA and CA-ROW segments. See Note 14, “Leases” for further information.

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Stock-Based Compensation Expense

The following is a summary of our stock-based compensation expense included in the consolidated statements of operations for the years December 31, 2017, 2016 and 2015 (in thousands):


	2017		2016		2015
Cost of service revenue	$	1,748	$	1,499	$	1,161
Cost of equipment revenue		185		117		86
Engineering, design and development		3,656		3,046		2,584
Sales and marketing		4,751		4,962		4,107
General and administrative		9,481		7,997		7,361

Total stock-based compensation expense	$	19,821	$	17,621	$	15,299

Summary of Stock Options Activity

A summary of stock option activity for the year ended December 31, 2017, is as follows:


	Number of Options			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value (in thousands)
Options outstanding—January 1, 2017		9,119,542		$	14.51		6.81	$	1,789
Granted		2,031,292		$	11.99
Exercised		(50,392	)	$	8.92
Forfeited		(441,090	)	$	14.01
Expired		(271,976	)	$	18.53

Options outstanding—December 31, 2017		10,387,376		$	13.96		6.22	$	8,924

Options exercisable—December 31, 2017		6,306,064		$	14.85		4.74	$	5,270

Schedule of Weighted Average Assumptions Used and Weighted Average Grant Date Fair Value of Stock Options


	2017			2016			2015
Approximate risk-free interest rate		2.3	%		1.3	%		1.8	%
Average expected life (years)		6.14			6.12			6.17
Dividend yield		N/A			N/A			N/A
Volatility		45.3	%		45.3	%		33.1	%
Weighted average grant date fair value of common stock underlying options granted	$	11.97		$	8.72		$	20.65
Weighted average grant date fair value of stock options granted	$	5.59		$	3.88		$	7.39

Restricted Stock Units And Deferred Stock Units [Member]

Summarizes the Activities for Unvested RSUs and DSUs

The following table summarizes the activities for our unvested RSUs and DSUs for the year ended December 31, 2017:


	Number of Underlying Shares			Weighted Average Grant Date Fair Value
Unvested—January 1, 2017		1,492,348		$	12.81
Granted		961,183		$	10.68
Vested		(485,219	)	$	14.38
Forfeited/canceled		(250,455	)	$	12.23

Unvested—December 31, 2017		1,717,857		$	11.27

Restricted Stock [Member]

Summarizes the Activities for Unvested RSUs and DSUs

The following table summarizes the activity for our restricted stock for the year ended December 31, 2017:


	Number of Underlying Shares			Weighted Average Grant Date Fair Value
Unvested—January 1, 2017		233,972		$	14.26
Granted		92,910		$	12.19
Vested		(112,738	)	$	13.76
Forfeited/canceled		—		$	—

Unvested—December 31, 2017		214,144		$	13.62

Income Tax (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Loss Before Income Taxes

For financial reporting purposes, loss before income taxes included the following components for the years ended December 31, 2017, 2016, and 2015 (in thousands):


	For the Years Ended December 31,
	2017			2016			2015
United States	$	(138,881	)	$	(108,363	)	$	(97,398	)
Foreign		(35,111	)		(14,828	)		(8,977	)

Loss before income taxes	$	(173,992	)	$	(123,191	)	$	(106,375	)

Components of (Benefit) Provision for Income Taxes

Significant components of the (benefit) provision for income taxes for the years ended December 31, 2017, 2016, and 2015, are as follows (in thousands):


	For the Years Ended December 31,
	2017			2016		2015
Current:
Federal	$	—		$	—	$	—
State		235			451		396
Foreign		49			24		15

		284			475		411

Deferred:
Federal		(2,590	)		764		764
State		309			75		63

		(2,281	)		839		827

Total	$	(1,997	)	$	1,314	$	1,238

Income Tax Computed at Federal Statutory Tax Rates


	For the Years Ended December 31,
	2017			2016			2015
Federal statutory rate		35.0	%		35.0	%		35.0	%
Effect of:
Impact of change in tax rate		(47.0	)		—			—
Change in valuation allowance		12.5			(38.5	)		(37.1	)
State income taxes-net of federal tax benefit		2.4			3.8			2.4
Other		(1.8	)		(1.4	)		(1.5	)

Effective tax rate		1.1	%		(1.1	)%		(1.2	)%

Components of Deferred Income Tax Assets and Liabilities

Components of the net deferred income tax asset as of December 31, 2017 and 2016 are as follows (in thousands):


	December 31, 2017			December 31, 2016
Deferred income tax assets:
Compensation accruals	$	4,854		$	5,944
Stock options		13,256			15,480
Inventory		702			390
Warranty reserves		605			990
Deferred rent		9,868			14,976
Deferred revenue		51,295			65,391
Federal net operating loss (NOL)		129,064			125,257
State NOL		21,122			10,660
UNICAP adjustment		3,241			6,742
Finite-lived intangible assets		8,756			15,225
Other		7,500			3,924

Total deferred income tax assets		250,263			264,979

Deferred income tax liabilities:
Fixed assets		(59,885	)		(41,331	)
Indefinite-lived intangible assets		(5,983	)		(8,264	)
Convertible Notes discount		(12,243	)		(26,134	)
Other		(170	)		(264	)

Total deferred income tax liabilities		(78,281	)		(75,993	)

Total deferred income tax		171,982			188,986
Valuation allowance		(177,965	)		(197,250	)

Net deferred income tax liability	$	(5,983	)	$	(8,264	)

Leases (Tables)

12 Months Ended

Dec. 31, 2017

Leases [Abstract]

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


	Operating
Years ending December 31,	Leases
2018	$	21,965
2019	$	20,755
2020	$	18,628
2021	$	18,475
2022	$	17,183
Thereafter	$	99,526

Annual Future Minimum Obligations under Capital Leases

Annual future minimum obligations under capital leases for each of the next five years and thereafter, as of December 31, 2017, are as follows (in thousands):


	Capital
Years ending December 31,	Leases
2018	$	2,027
2019		1,027
2020		215
Thereafter		—

Total minimum lease payments		3,269
Less: Amount representing interest		(355	)

Present value of net minimum lease payments	$	2,914

Quarterly Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Summarized Quarterly Financial Information

Summarized quarterly financial information is as follows for each quarterly period for the years ended December 31, 2017 and 2016 (in thousands, except per share amounts):


	For the Three Month Periods Ended
	Mar 31, 2017			June 30, 2017			Sep 30, 2017			Dec 31, 2017
Total revenue	$	165,406		$	172,800		$	172,874		$	188,010
Operating loss		(14,698	)		(17,336	)		(17,801	)		(14,427	)
Net loss		(41,367	)		(44,209	)		(45,281	)		(41,138	)
Net loss to attributable to common stock		(41,367	)		(44,209	)		(45,281	)		(41,138	)
Net loss attributable to common stock per share—basic and diluted	$	(0.52	)	$	(0.56	)	$	(0.57	)	$	(0.52	)
Weighted average number of shares—basic and diluted		79,139			79,334			79,543			79,603


	For the Three Month Periods Ended
	Mar 31, 2016			June 30, 2016			Sep 30, 2016			Dec 31, 2016
Total revenue	$	141,746		$	147,539		$	147,267		$	159,998
Operating loss		(8,592	)		(7,096	)		(8,774	)		(2,175	)
Net loss		(24,106	)		(40,194	)		(33,273	)		(26,932	)
Net loss to attributable to common stock		(24,106	)		(40,194	)		(33,273	)		(26,932	)
Net loss attributable to common stock per share—basic and diluted	$	(0.31	)	$	(0.51	)	$	(0.42	)	$	(0.34	)
Weighted average number of shares—basic and diluted		78,738			78,849			79,003			79,067

Condensed Financial Information of Registrant (Tables)

12 Months Ended

Dec. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Balance Sheets

Gogo Inc.

Condensed Balance Sheets

(in thousands)


	December 31,			December 31,
	2017			2016
Assets:
Cash and cash equivalents	$	9,734		$	1,071
Short-term investments		192,893			213,905
Prepaid expenses and other current assets		913			567
Other non-current assets		100			—
Investments and advances with subsidiaries		—			44,288

Total assets	$	203,640		$	259,831

Liabilities and stockholders’ deficit:
Total current liabilities	$	4,847		$	4,996
Long-term debt		307,968			286,964
Other non-current liabilities		5,983			8,264
Investments and payables with subsidiaries		76,406			—

Total liabilities		395,204			300,224
Total stockholders’ deficit		(191,564	)		(40,393	)

Total liabilities and stockholders’ deficit	$	203,640		$	259,831

Condensed Statements of Operations and Comprehensive Loss

Gogo Inc.

Condensed Statements of Operations and Comprehensive Loss

(in thousands)


	For the Years Ended December 31,
	2017			2016			2015
Interest income	$	(1,681	)	$	(978	)	$	(158	)
Interest expense		34,577			32,461			24,609

Total other (income) expense		32,896			31,483			24,451

Income (loss) before income taxes		(32,896	)		(31,483	)		(24,451	)
Income tax provision (benefit)		(2,045	)		1,276			1,238
Equity losses of subsidiaries		141,144			91,746			81,924

Net loss		(171,995	)		(124,505	)		(107,613	)

Comprehensive loss	$	(171,995	)	$	(124,480	)	$	(108,601	)

Condensed Statements of Cash Flows

Gogo Inc.

Condensed Statements of Cash Flows

(in thousands)


	For the Years Ended December 31,
	2017			2016			2015
Net loss	$	(171,995	)	$	(124,505	)	$	(107,613	)
Accretion of debt discount		19,520			17,496			12,555
Amortization of deferred financing costs		1,484			1,392			1,044
Subsidiary equity losses		141,144			91,746			81,924
Deferred income taxes		(2,281	)		839			827
Other operating activities		(609	)		(319	)		4,544

Net cash used in operating activities		(12,737	)		(13,351	)		(6,719	)

Acquisition of short-term investments		(192,893	)		(213,905	)		(329,503	)
Redemption of short-term investments		213,905			179,593			189,868
Investments and advances with subsidiaries		601			(23,312	)		(71,964	)
Other, net		14			(114	)		—

Net cash provided by (used in) investing activities		21,627			(57,738	)		(211,599	)

Financing activities:
Proceeds from issuance of convertible notes		—			—			361,940
Forward transactions		—			—			(140,000	)
Other financing activities		(227	)		271			(5,724	)

Net cash provided by (used in) financing activities		(227	)		271			216,216

Increase (decrease) in cash and cash equivalents		8,663			(70,818	)		(2,102	)
Cash and cash equivalents at the beginning of period		1,071			71,889			73,991

Cash and cash equivalents at the end of period	$	9,734		$	1,071		$	71,889

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions		1 Months Ended	12 Months Ended
	Mar. 03, 2015	Mar. 31, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Goodwill and intangible assets, net			$ 87,133,000	$ 85,795,000
Other non-current assets			67,107,000	35,861,000
Depreciation expense			120,600,000	84,100,000	$ 69,400,000
Impairment charges			0	0	0
Impairments of long-lived assets			0	0	0
Research and development expense			$ 78,100,000	$ 45,900,000	50,100,000
Forward stock repurchase transaction, shares			7.2	7.2
Forward stock repurchase transactions amount	$ 140,000,000				140,000,000
Recognition of revenue increase			$ 81,184,000	$ 82,257,000	80,913,000
Recognition of equipment costs			58,554,000	48,650,000	40,558,000
Accounting Standards Update 2014-09 [Member]
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Recognition of revenue increase			53,000,000
Recognition of equipment costs			47,000,000
Recognition of contract asset			8,000,000
Recognition of revenue deductions			$ 3,000,000
Reclassifications [Member]
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Goodwill and intangible assets, net				620,000
Other non-current assets				7,773,000
Accrued airline revenue share combined with accrued liabilities				15,521,000
Deferred tax liabilities combined with other non-current liabilities				8,264,000
Accrued airline revenue share combined with other current and non-current assets and liabilities				1,815,000	439,000
Proceeds from the sale of property and equipment combined with other, net				84,000	75,000
(Increase) decrease in investing restricted cash combined with other,net				$ 224,000	$ (192,000)
3.75% Convertible Senior Notes [Member]
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Forward stock repurchase transaction, shares		7.2
Forward stock repurchase transactions amount		$ 140,000,000
Forward stock repurchase transaction, settlement date		Mar. 01, 2020
Minimum [Member]
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Warranty term			2 years
Maximum [Member]
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Warranty term			5 years
Estimated Useful Lives [Member]
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Increases in depreciation expense			$ 29,200,000
Decrease in cost of service revenue			$ 8,000,000
Increase in net loss per basic and fully diluted share			$ 0.27

Summary of Significant Accounting Policies - Depreciation of Property and Equipment Estimated Useful Lives (Detail)	12 Months Ended
	Dec. 31, 2017
Office Equipment, Furniture, Fixtures and Other [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Depreciation of property and equipment estimated useful lives	3 years
Office Equipment, Furniture, Fixtures and Other [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Depreciation of property and equipment estimated useful lives	7 years
Leasehold Improvements [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Depreciation of property and equipment estimated useful lives	3 years
Leasehold Improvements [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Depreciation of property and equipment estimated useful lives	13 years
Airborne Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Depreciation of property and equipment estimated useful lives	7 years
Network Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Depreciation of property and equipment estimated useful lives	5 years
Network Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Depreciation of property and equipment estimated useful lives	25 years

Summary of Significant Accounting Policies - Finite Lived Intangible Asset Useful Life (Detail)	12 Months Ended
	Dec. 31, 2017
Software [Member]
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset useful life	2 years 1 month 6 days
Software [Member] \| Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset useful life	3 years
Software [Member] \| Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset useful life	8 years
OEM and Dealer Relationships [Member] \| Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset useful life	10 years
Service Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset useful life	2 years 3 months 19 days
Service Customer Relationships [Member] \| Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset useful life	5 years
Service Customer Relationships [Member] \| Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset useful life	7 years
Other Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset useful life	1 year 3 months 19 days
Other Intangible Assets [Member] \| Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset useful life	4 years
Other Intangible Assets [Member] \| Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset useful life	12 years

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								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Earnings Per Share [Abstract]
Net loss	$ (41,138)	$ (45,281)	$ (44,209)	$ (41,367)	$ (26,932)	$ (33,273)	$ (40,194)	$ (24,106)	$ (171,995)	$ (124,505)	$ (107,613)
Less: Participation rights of the Forward Transactions									0	0	0
Net loss attributable to common stock	$ (41,138)	$ (45,281)	$ (44,209)	$ (41,367)	$ (26,932)	$ (33,273)	$ (40,194)	$ (24,106)	$ (171,995)	$ (124,505)	$ (107,613)
Weighted-average common shares outstanding-basic and diluted	79,603	79,543	79,334	79,139	79,067	79,003	78,849	78,738	79,407	78,915	79,701
Net loss attributable to common stock per share-basic and diluted	$ (0.52)	$ (0.57)	$ (0.56)	$ (0.52)	$ (0.34)	$ (0.42)	$ (0.51)	$ (0.31)	$ (2.17)	$ (1.58)	$ (1.35)

Composition of Certain Balance Sheet Accounts - Components of Inventories Included within BA Segment (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Work-in-process component parts	$ 35,009	$ 39,150
Finished goods	10,534	11,116
Total inventory	$ 45,543	$ 50,266

Composition of Certain Balance Sheet Accounts - Property and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,053,923	$ 816,989
Accumulated depreciation	(397,885)	(297,179)
Property and equipment, net	656,038	519,810
Office Equipment, Furniture, Fixtures and Other [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	46,445	49,529
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	42,522	42,143
Airborne Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	765,652	557,196
Network Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 199,304	$ 168,121

Composition of Certain Balance Sheet Accounts - Schedule of Other Non-Current Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Other Assets, Noncurrent [Abstract]
Deferred cost of equipment revenue	$ 40,986	$ 14,159
Restricted cash	6,873	7,773
Other	19,248	13,929
Total other non-current assets	$ 67,107	$ 35,861

Composition of Certain Balance Sheet Accounts - Accrued Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Accrued Liabilities, Current [Abstract]
Employee compensation and benefits	$ 25,621	$ 21,008
Airborne equipment and installation costs	44,059	22,442
Airborne partner related accrued liabilities	13,566	14,307
Accrued interest	47,649	40,436
Accrued revenue share	17,339	15,521
Other	53,581	33,862
Total accrued liabilities	$ 201,815	$ 147,576

Composition of Certain Balance Sheet Accounts - Other Non-Current Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other Liabilities, Noncurrent [Abstract]
Deferred revenue	$ 73,192	$ 38,976
Deferred rent	37,354	36,538
Asset retirement obligations	9,668	8,527	$ 7,847
Deferred tax liabilities	5,983	8,264
Other	8,458	6,627
Total other non-current liabilities	$ 134,655	$ 98,932

- Definition

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

+ References + Details

Composition of Certain Balance Sheet Accounts - Schedule of Changes in Warranty Reserves (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Guarantees [Abstract]
Warranty Beginning Balance	$ 2,576	$ 1,834	$ 1,085
Accruals for warranties issued	348	1,535	1,882
Settlements of warranties	(500)	(793)	(1,133)
Warranty Ending Balance	$ 2,424	$ 2,576	$ 1,834

Composition of Certain Balance Sheet Accounts - Schedule of Changes in Non Current Asset Retirement Obligation (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligation, Beginning Balance	$ 8,527	$ 7,847
Liabilities incurred	370	11	$ 1,181
Liabilities settled	(252)	(174)
Accretion expense	981	835
Foreign exchange rate adjustments	42	8
Asset retirement obligation, Ending Balance	$ 9,668	$ 8,527	$ 7,847

Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 0.6	$ 0.6
Amortization expense	$ 24.9	$ 21.6	$ 17.6

Intangible Assets - Schedule of Intangible Assets, Other than Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Intangible Assets Net Excluding Goodwill [Line Items]
Total intangible assets, Gross Carrying Amount	$ 193,651	$ 167,424
Amortized intangible assets, Gross Carrying Amount	161,368	135,141
Amortized intangible assets, Accumulated Amortization	(107,138)	(82,249)
Amortized intangible assets, Net Carrying Amount	54,230	52,892
Total intangible assets, Net Carrying Amount	86,513	85,175
FCC Licenses [Member]
Intangible Assets Net Excluding Goodwill [Line Items]
Total unamortized intangible assets, Gross Carrying Amount	32,283	32,283
Total unamortized intangible assets, Net Carrying Amount	$ 32,283	32,283
Software [Member]
Intangible Assets Net Excluding Goodwill [Line Items]
Weighted Average Remaining Useful Life (in years)	2 years 1 month 6 days
Amortized intangible assets, Gross Carrying Amount	$ 145,063	118,836
Amortized intangible assets, Accumulated Amortization	(93,523)	(70,127)
Amortized intangible assets, Net Carrying Amount	51,540	48,709
OEM and Dealer Relationships [Member]
Intangible Assets Net Excluding Goodwill [Line Items]
Amortized intangible assets, Gross Carrying Amount	6,724	6,724
Amortized intangible assets, Accumulated Amortization	$ (6,724)	(6,667)
Amortized intangible assets, Net Carrying Amount		57
Service Customer Relationships [Member]
Intangible Assets Net Excluding Goodwill [Line Items]
Weighted Average Remaining Useful Life (in years)	2 years 3 months 19 days
Amortized intangible assets, Gross Carrying Amount	$ 8,081	8,081
Amortized intangible assets, Accumulated Amortization	(5,788)	(4,773)
Amortized intangible assets, Net Carrying Amount	$ 2,293	3,308
Other Intangible Assets [Member]
Intangible Assets Net Excluding Goodwill [Line Items]
Weighted Average Remaining Useful Life (in years)	1 year 3 months 19 days
Amortized intangible assets, Gross Carrying Amount	$ 1,500	1,500
Amortized intangible assets, Accumulated Amortization	(1,103)	(682)
Amortized intangible assets, Net Carrying Amount	$ 397	$ 818

Intangible Assets - Summary of Amortization Expenses (Detail) $ in Thousands	Dec. 31, 2017 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2018	$ 25,971
2019	15,487
2020	8,403
2021	2,579
2022	1,441
Thereafter	$ 354

Long-Term Debt and Other Liabilities - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Mar. 03, 2015
Debt Instrument [Line Items]
Total debt	$ 1,017,064	$ 817,024
Less deferred financing costs	(16,196)	(16,309)
Total long-term debt	1,000,868	800,715
3.75% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Convertible Notes	311,544	292,024	$ 261,900
12.500% Senior Secured Notes Due 2022 [Member]
Debt Instrument [Line Items]
Senior Secured Notes	$ 705,520	$ 525,000

Long-Term Debt and Other Liabilities - Additional Information (Detail) $ / shares in Units, shares in Millions						1 Months Ended	12 Months Ended
	Sep. 25, 2017 USD ($)	Sep. 20, 2017 USD ($)	Jan. 03, 2017 USD ($)	Jun. 14, 2016 USD ($)	Mar. 03, 2015 USD ($) $ / shares shares	Mar. 31, 2015 USD ($) shares	Dec. 31, 2017 USD ($) Trading_day shares	Dec. 31, 2016 USD ($) shares	Dec. 31, 2015 USD ($)	Sep. 19, 2017 USD ($)
Debt Instrument [Line Items]
Proceeds from issuance of debt							$ 181,754,000	$ 525,000,000
Total debt							1,017,064,000	817,024,000
Amortization of deferred financing costs							3,743,000	3,803,000	$ 4,169,000
Additional paid-in-capital							$ 898,729,000	$ 879,135,000
Proceeds received from the issuance of the convertible notes									361,940,000
Forward stock repurchase transactions amount					$ 140,000,000				140,000,000
Forward stock repurchase transaction, shares \| shares							7.2	7.2
Letters of Credit [Member]
Debt Instrument [Line Items]
Restricted cash							$ 7,400,000	$ 7,900,000
Convertible Notes [Member]
Debt Instrument [Line Items]
Forward stock repurchase transaction, shares \| shares					7.2
Forward stock repurchase transaction, settlement date					Mar. 01, 2020
12.500% Senior Secured Notes Due 2022 [Member]
Debt Instrument [Line Items]
Aggregate principal amount				$ 525,000,000
Interest rate				12.50%
Unamortized debt premium and consent fees							$ 15,500,000
Interest rate payable term							Semi-annually
Maturity date							Jul. 01, 2022
Loan origination fees							$ 11,400,000
Amortization of deferred financing costs							2,300,000	1,000,000
Debt issuance costs							$ 12,600,000	11,200,000
12.500% Senior Secured Notes Due 2022 [Member] \| Condition One [Member]
Debt Instrument [Line Items]
Debt instrument redemption price percentage of principal amount redeemed							35.00%
Debt instrument redemption price, percentage							112.50%
Outstanding redemption percentage							65.00%
12.500% Senior Secured Notes Due 2022 [Member] \| Condition Two [Member]
Debt Instrument [Line Items]
Debt instrument redemption price, percentage				100.00%
12.500% Senior Secured Notes Due 2022 [Member] \| Condition Three [Member]
Debt Instrument [Line Items]
Debt instrument redemption price, percentage				101.00%
12.500% Senior Secured Notes Due 2022 [Member] \| Additional Notes [Member] \| January Two Thousand And Seventeen Additional Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount			$ 65,000,000
Interest rate			12.50%
Issue price as percentage of face value			108.00%
Proceeds from issuance of debt			$ 70,200,000
Loan origination fees							$ 2,000,000
12.500% Senior Secured Notes Due 2022 [Member] \| Additional Notes [Member] \| September Two Thousand And Seventeen Additional Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount	$ 100,000,000
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
Loan origination fees							2,500,000
12.500% Senior Secured Notes Due 2022 [Member] \| Supplemental Indenture [Member]
Debt Instrument [Line Items]
Aggregate principal amount		$ 175,000,000								$ 75,000,000
Increase in debt amount		100,000,000
Additional secured indebtedness		50,000,000
Additional dividends		15,000,000
Consent fees paid		$ 1,400,000
3.75% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount					$ 361,900,000		$ 361,900,000	361,900,000
Interest rate					3.75%
Interest rate payable term							Semi-annually
Maturity date					Mar. 01, 2020
Amortization of deferred financing costs							$ 1,500,000	1,400,000	$ 1,000,000
Debt issuance costs							3,600,000	5,100,000
Debt instrument redemption price, percentage					100.00%
Option granted to initial purchasers					$ 60,000,000
Additional paid-in-capital					100,000,000
Convertible Notes, carrying amount of liability component					261,900,000		$ 311,544,000	292,024,000
Effective interest rate on convertible notes							11.50%
Proceeds received from the issuance of the convertible notes					$ 361,900,000
Convertible Notes, unamortized discount							$ 50,400,000	69,900,000
Conversion rate					41.9274
Principal amount					$ 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
Forward stock repurchase transaction, settlement date						Mar. 01, 2020
3.75% Convertible Senior Notes [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Percentage of common share price over conversion price for conversion							130.00%
Common stock price trading days \| Trading_day							20
Common stock price consecutive trading days \| Trading_day							30
3.75% Convertible Senior Notes [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Debt instrument redemption price, percentage							98.00%
Common stock price trading days \| Trading_day							5
Common stock price consecutive trading days \| Trading_day							5
3.75% Convertible Senior Notes [Member] \| Issuance Costs [Member]
Debt Instrument [Line Items]
Loan origination fees					10,400,000
Additional paid-in-capital					2,900,000
Issuance cost recorded to deferred financing costs					7,500,000
3.75% Convertible Senior Notes [Member] \| Institutional Buyers [Member]
Debt Instrument [Line Items]
Aggregate principal amount					340,000,000
Principal amount of Convertible Notes, subsequently exercised					$ 21,900,000
Amended and Restated Senior Term Facility [Member]
Debt Instrument [Line Items]
Loan origination fees							$ 22,200,000
Amortization of deferred financing costs								1,400,000
Outstanding principal balance paid				$ 287,700,000
Voluntary prepayment premium paid percentage				3.00%
Voluntary prepayment premium paid				$ 8,600,000
Write off of deferred financing costs				$ 6,800,000
Non lender fees							4,100,000
Senior Secured Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount							690,000,000	525,000,000
Total debt							$ 705,520,000	$ 525,000,000

Long-Term Debt and Other Liabilities - Summary of Redemption Prices Plus Accrued and Unpaid Interest (Detail) - 12.500% Senior Secured Notes Due 2022 [Member]	12 Months Ended
	Dec. 31, 2017
2019 [Member]
Debt Instrument, Redemption [Line Items]
Debt instrument redemption price, percentage	106.25%
2020 [Member]
Debt Instrument, Redemption [Line Items]
Debt instrument redemption price, percentage	103.125%
2021 and Thereafter [Member]
Debt Instrument, Redemption [Line Items]
Debt instrument redemption price, percentage	100.00%

Interest Costs - Summary of Interest Costs (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Schedule Of Interest [Line Items]
Interest costs charged to expense	$ 89,915	$ 62,348	$ 42,165
Amortization of deferred financing costs	3,743	3,803	4,169
Accretion of Convertible Notes	19,520	17,496	12,555
Amortization of debt premium of Senior Secured Notes	(1,234)
Interest expense	111,944	83,647	58,889
Total interest costs	113,045	85,152	60,368
Property and Equipment [Member]
Schedule Of Interest [Line Items]
Interest costs capitalized	26	205	205
Software [Member]
Schedule Of Interest [Line Items]
Interest costs capitalized	$ 1,075	$ 1,300	$ 1,274

Common Stock and Preferred Stock - Additional Information (Detail) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Equity [Abstract]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Preferred stock share authorized	100,000,000
Preferred stock, par value	$ 0.01
Preferred stock share issued	0

Fair Value of Financial Assets and Liabilities - Summary of Fair Value and Carrying Value of Long-Term Debt (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total debt	$ 1,017,064	$ 817,024
Convertible Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value of Convertible Notes	330,000	275,000
Carrying Value of Convertible Notes	311,544	292,024
Senior Secured Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value of Long Term Debt	782,000	572,000
Total debt	$ 705,520	$ 525,000

Fair Value of Financial Assets and Liabilities - Summary of Fair Value and Carrying Value of Long-Term Debt (Parenthetical) (Detail) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
3.75% Convertible Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Convertible Notes, unamortized discount	$ 50.4	$ 69.9
12.500% Senior Secured Notes Due 2022 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unamortized debt premium and consent fees	$ 15.5

Business Segments and Major Customers - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2017 Customer Segment Partner	Dec. 31, 2016 Customer Partner	Dec. 31, 2015 Customer
Segment Reporting Information [Line Items]
Number of operating segments \| Segment	3
Revenue [Member]
Segment Reporting Information [Line Items]
Number of customers meeting concentration risk threshold	0	0	0
Revenue [Member] \| Customer Concentration Risk [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark	10.00%	10.00%	10.00%
Revenue [Member] \| Customer Concentration Risk [Member] \| Delta Airline and American Airlines [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark	47.00%	50.00%	50.00%
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] \| Customer Concentration Risk [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark	15.00%
Accounts Receivable [Member] \| Credit Concentration Risk [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark	21.00%	18.00%

Business Segments and Major Customers - Summary of Reportable Segments (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Service revenue									$ 617,906	$ 514,293	$ 419,975
Equipment revenue									81,184	82,257	80,913
Total revenue	$ 188,010	$ 172,874	$ 172,800	$ 165,406	$ 159,998	$ 147,267	$ 147,539	$ 141,746	699,090	596,550	500,888
Segment profit (loss)									59,233	67,107	37,330
CA-NA [Member]
Segment Reporting Information [Line Items]
Service revenue									393,484	357,250	308,360
Equipment revenue									7,129	14,273	2,302
Total revenue									400,613	371,523	310,662
Segment profit (loss)									66,802	71,870	41,891
CA-ROW [Member]
Segment Reporting Information [Line Items]
Service revenue									53,542	24,198	11,563
Equipment revenue									4,323	1,180	1
Total revenue									57,865	25,378	11,564
Segment profit (loss)									(106,978)	(87,637)	(76,445)
BA [Member]
Segment Reporting Information [Line Items]
Service revenue									170,880	132,845	100,052
Equipment revenue									69,732	66,804	78,610
Total revenue									240,612	199,649	178,662
Segment profit (loss)									$ 99,409	$ 82,874	$ 71,884

Business Segments and Major Customers - Reconciliation of Segment Profit (loss) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment profit (loss)	$ 59,233	$ 67,107	$ 37,330
Interest income	2,964	1,635	181
Interest expense	(111,944)	(83,647)	(58,889)
Depreciation and amortization	(145,490)	(105,642)	(87,036)
Amortization of deferred airborne lease incentives	41,816	29,519	20,163
Stock compensation expense	(19,821)	(17,621)	(15,299)
Adjustment of deferred financing fees		792	(2,251)
Loss on extinguishment of debt		(15,406)
Other income (expense)	(750)	72	(574)
Loss before income taxes	(173,992)	(123,191)	(106,375)
CA-NA [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment profit (loss)	66,802	71,870	41,891
CA-ROW [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment profit (loss)	(106,978)	(87,637)	(76,445)
BA [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment profit (loss)	$ 99,409	$ 82,874	$ 71,884

Stock-Based Compensation - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) CompensationPlan shares	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2013 shares
Schedule Of Share Based Compensation Arrangement [Line Items]
Number of share-based employee compensation plans \| CompensationPlan	3
Stock options [Member]
Schedule Of Share Based Compensation Arrangement [Line Items]
Stock options exercised	50,392
Restricted Stock Units And Deferred Stock Units [Member]
Schedule Of Share Based Compensation Arrangement [Line Items]
DSU settlement period	90 days
Total unrecognized compensation costs related to unvested stock options \| $	$ 14.0
Weighted average period related to unvested stock options	2 years 3 months 19 days
Total grant date fair value of stock options vested \| $	$ 8.0
Restricted Stock [Member]
Schedule Of Share Based Compensation Arrangement [Line Items]
Options vesting period	4 years
Total unrecognized compensation costs related to unvested stock options \| $	$ 2.0
Weighted average period related to unvested stock options	2 years 3 months 19 days
Stock Plan 2010, 2013 and 2016 [Member]
Schedule Of Share Based Compensation Arrangement [Line Items]
Common stock, shares reserved for issuance	20,006,570
Shares available for grant	3,387,202
Contractual life of granted options	10 years
Options vesting period	4 years
Stock options exercised				0
Stock Plan 2010, 2013 and 2016 [Member] \| Stock options [Member]
Schedule Of Share Based Compensation Arrangement [Line Items]
Total unrecognized compensation costs related to unvested stock options \| $	$ 15.0
Weighted average period related to unvested stock options	2 years 6 months
Total grant date fair value of stock options vested \| $	$ 10.0	$ 9.0	$ 8.0
Stock Plan 2010, 2013 and 2016 [Member] \| Option 2 [Member]
Schedule Of Share Based Compensation Arrangement [Line Items]
Options vesting percentage	25.00%
Options vesting period	4 years
Stock Plan 2010, 2013 and 2016 [Member] \| Option 1 [Member]
Schedule Of Share Based Compensation Arrangement [Line Items]
Options vesting percentage	20.00%
Stock Plan 2010, 2013 and 2016 [Member] \| Director [Member] \| Restricted Stock Units And Deferred Stock Units [Member]
Schedule Of Share Based Compensation Arrangement [Line Items]
2013 Omnibus Plan settlement, Description	DSUs will be settled in shares of our common stock 90 days after the director ceases to serve as a director.
Employee Stock Purchase Plan [Member]
Schedule Of Share Based Compensation Arrangement [Line Items]
Common stock, shares reserved for issuance	1,200,000
Common stock, shares issued under ESPP	153,628
Employee Stock Purchase Plan [Member] \| Maximum [Member]
Schedule Of Share Based Compensation Arrangement [Line Items]
Purchase Price of Common Stock, Percent	15.00%

Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 19,821	$ 17,621	$ 15,299
Cost of Service Revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	1,748	1,499	1,161
Cost of Equipment Revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	185	117	86
Engineering, Design and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	3,656	3,046	2,584
Sales and Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	4,751	4,962	4,107
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 9,481	$ 7,997	$ 7,361

Stock-Based Compensation - Summary of Stock Options Activity (Detail) - Stock options [Member] - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Schedule Of Stock Option Activity [Line Items]
Options Outstanding, Beginning Balance	9,119,542
Number of Options, Granted	2,031,292
Number of Options, Exercised	(50,392)
Number of Options, Forfeited	(441,090)
Number of Options, Expired	(271,976)
Options Outstanding, Ending Balance	10,387,376	9,119,542
Options Exercisable, Ending Balance	6,306,064
Weighted Average Exercise Price Per Share, Outstanding Beginning Balance	$ 14.51
Weighted Average Exercise Price Per Share, Granted	11.99
Weighted Average Exercise Price Per Share, Exercised	8.92
Weighted Average Exercise Price Per Share, Forfeited	14.01
Weighted Average Exercise Price Per Share, Expired	18.53
Weighted Average Exercise Price Per Share, Outstanding Ending Balance	13.96	$ 14.51
Weighted Average Exercise Price Per Share, Exercisable Ending Balance	$ 14.85
Weighted Average Remaining Contractual Life, Outstanding	6 years 2 months 19 days	6 years 9 months 22 days
Weighted Average Remaining Contractual Life, Exercisable Ending Balance	4 years 8 months 26 days
Aggregate Intrinsic Value, Outstanding Beginning Balance	$ 1,789
Aggregate Intrinsic Value, Outstanding Ending Balance	8,924	$ 1,789
Aggregate Intrinsic Value, Exercisable Ending Balance	$ 5,270

Stock-Based Compensation - Schedule of Weighted Average Assumptions Used and Weighted Average Grant Date Fair Value of Stock Options (Detail) - Stock options [Member] - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Approximate risk-free interest rate	2.30%	1.30%	1.80%
Average expected life (years)	6 years 1 month 20 days	6 years 1 month 13 days	6 years 2 months 1 day
Dividend yield	0.00%	0.00%	0.00%
Volatility	45.30%	45.30%	33.10%
Weighted average grant date fair value of stock options granted	$ 5.59	$ 3.88	$ 7.39
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Weighted average grant date fair value of stock options granted	$ 11.97	$ 8.72	$ 20.65

Stock-Based Compensation - Summarizes the Activities for Unvested RSUs and DSUs (Detail) - Restricted Stock Units And Deferred Stock Units [Member]	12 Months Ended
	Dec. 31, 2017 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Underlying Shares, Unvested - Beginning balance \| shares	1,492,348
Number of Underlying Shares, Granted \| shares	961,183
Number of Underlying Shares, Vested \| shares	(485,219)
Number of Underlying Shares, Forfeited/canceled \| shares	(250,455)
Number of Underlying Shares, Unvested - Ending balance \| shares	1,717,857
Weighted Average Grant Date Fair Value, Unvested - Beginning balance \| $ / shares	$ 12.81
Weighted Average Grant Date Fair Value, Granted \| $ / shares	10.68
Weighted Average Grant Date Fair Value, Vested \| $ / shares	14.38
Weighted Average Grant Date Fair Value, Forfeited/canceled \| $ / shares	12.23
Weighted Average Grant Date Fair Value, Unvested - Ending balance \| $ / shares	$ 11.27

Stock-Based Compensation - Summarizes the Activity for Restricted Stock (Detail) - Restricted Stock [Member]	12 Months Ended
	Dec. 31, 2017 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Underlying Shares, Unvested - Beginning balance \| shares	233,972
Number of Underlying Shares, Granted \| shares	92,910
Number of Underlying Shares, Vested \| shares	(112,738)
Number of Underlying Shares, Forfeited/canceled \| shares	0
Number of Underlying Shares, Unvested - Ending balance \| shares	214,144
Weighted Average Grant Date Fair Value, Unvested - Beginning balance \| $ / shares	$ 14.26
Weighted Average Grant Date Fair Value, Granted \| $ / shares	12.19
Weighted Average Grant Date Fair Value, Vested \| $ / shares	13.76
Weighted Average Grant Date Fair Value, Forfeited/canceled \| $ / shares	0
Weighted Average Grant Date Fair Value, Unvested - Ending balance \| $ / shares	$ 13.62

Employee Retirement and Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Retirement Benefits [Abstract]
Employee Contribution	100.00%
Percentage of employees contribution matched by the company	4.00%
Employer Contribution	$ 5.9	$ 4.1	$ 3.5

Income Tax - (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
United States	$ (138,881)	$ (108,363)	$ (97,398)
Foreign	(35,111)	(14,828)	(8,977)
Loss before income taxes	$ (173,992)	$ (123,191)	$ (106,375)

Income Tax - Components of (Benefit) Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current:
Federal	$ 0	$ 0	$ 0
State	235	451	396
Foreign	49	24	15
Current Total	284	475	411
Deferred:
Federal	(2,590)	764	764
State	309	75	63
Deferred Total	(2,281)	839	827
Total	$ (1,997)	$ 1,314	$ 1,238

Income Tax - Income Tax Computed at Federal Statutory Tax Rates (Detail)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Federal statutory rate	35.00%	35.00%	35.00%
Impact of change in tax rate	(47.00%)
Change in valuation allowance	12.50%	(38.50%)	(37.10%)
State income taxes-net of federal tax benefit	2.40%	3.80%	2.40%
Other	(1.80%)	(1.40%)	(1.50%)
Effective tax rate	1.10%	(1.10%)	(1.20%)

Income Tax - Components of Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Compensation accruals	$ 4,854	$ 5,944
Stock options	13,256	15,480
Inventory	702	390
Warranty reserves	605	990
Deferred rent	9,868	14,976
Deferred revenue	51,295	65,391
Federal net operating loss (NOL)	129,064	125,257
State NOL	21,122	10,660
UNICAP adjustment	3,241	6,742
Finite-lived intangible assets	8,756	15,225
Other	7,500	3,924
Total deferred income tax assets	250,263	264,979
Fixed assets	(59,885)	(41,331)
Indefinite-lived intangible assets	(5,983)	(8,264)
Convertible Notes discount	(12,243)	(26,134)
Other	(170)	(264)
Total deferred income tax liabilities	(78,281)	(75,993)
Total deferred income tax	171,982	188,986
Valuation allowance	(177,965)	(197,250)
Net deferred income tax liability	$ (5,983)	$ (8,264)

Income Tax - Additional Information (Detail) - USD ($)	12 Months Ended
Income Tax - Additional Information (Detail) - USD ($)	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Tax Credit Carryforward [Line Items]
Utilization of NOL and tax credit carryforwards due to ownership changes	50.00%
Decrease in net deferred tax liability due to tax reform	$ 3,000,000
Unrecognized tax benefits	0	$ 0	$ 0
Interest or penalties related to uncertain tax positions	0	0	$ 0
Liabilities for interest and potential penalties	0	$ 0
Increase (decrease) in unrecognized tax benefits	0
Federal net operating loss [Member]
Tax Credit Carryforward [Line Items]
Net operating loss carryforward	545,000,000
State NOL [Member]
Tax Credit Carryforward [Line Items]
Net operating loss carryforward	$ 356,000,000

Leases - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Leases [Line Items]
Amortization of deferred airborne lease incentives		$ 41,816	$ 29,519	$ 20,163
Deferred airborne lease incentives included in current liabilities		42,096	36,277
Deferred airborne lease incentives included in non-current liabilities		142,938	135,879
Revenue share expense, net of amortization of deferred airborne lease incentives		30,500	41,600	40,600
Property and equipment, gross		1,053,923	816,989
Present value of net minimum lease payments		2,914
Present value of net minimum lease payments, current portion		1,789	2,799
Present value of net minimum lease payments, non-current portion		1,100
Scenario, Forecast [Member]
Leases [Line Items]
Contingent annual cash rebate	$ 1,800
Leased Computer Equipment [Member]
Leases [Line Items]
Property and equipment, gross		5,000
Leased Network Equipment [Member]
Leases [Line Items]
Property and equipment, gross		7,500
Certain Facilities and Equipment [Member]
Leases [Line Items]
Rental expense		12,000	11,800	15,300
Cell Site Leases [Member]
Leases [Line Items]
Rental expense		$ 9,500	$ 9,400	$ 9,400
Minimum [Member] \| Computer Equipment [Member]
Leases [Line Items]
Annual interest rate imputed		8.00%
Maximum [Member] \| Computer Equipment [Member]
Leases [Line Items]
Annual interest rate imputed		14.00%

Leases - Annual Future Minimum Obligations for Operating Leases Other than Arrangements with Commercial Airline Partners (Detail) $ in Thousands	Dec. 31, 2017 USD ($)
Leases [Abstract]
2018	$ 21,965
2019	20,755
2020	18,628
2021	18,475
2022	17,183
Thereafter	$ 99,526

Leases - Annual Future Minimum Obligation under Capital Leases (Detail) $ in Thousands	Dec. 31, 2017 USD ($)
Leases [Abstract]
2018	$ 2,027
2019	1,027
2020	215
Thereafter	0
Total minimum lease payments	3,269
Less: Amount representing interest	(355)
Present value of net minimum lease payments	$ 2,914

Commitments and Contingencies - Additional Information (Detail) $ in Millions	Dec. 31, 2017 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2018	$ 78.3
2019	80.9
2020	85.3
2021	76.3
2022	73.9
Thereafter	$ 231.3

Quarterly Data (Unaudited) - Summarized Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Total revenue	$ 188,010	$ 172,874	$ 172,800	$ 165,406	$ 159,998	$ 147,267	$ 147,539	$ 141,746	$ 699,090	$ 596,550	$ 500,888
Operating loss	(14,427)	(17,801)	(17,336)	(14,698)	(2,175)	(8,774)	(7,096)	(8,592)	(64,262)	(26,637)	(44,842)
Net loss	(41,138)	(45,281)	(44,209)	(41,367)	(26,932)	(33,273)	(40,194)	(24,106)	(171,995)	(124,505)	(107,613)
Net loss to attributable to common stock	$ (41,138)	$ (45,281)	$ (44,209)	$ (41,367)	$ (26,932)	$ (33,273)	$ (40,194)	$ (24,106)	$ (171,995)	$ (124,505)	$ (107,613)
Net loss attributable to common stock per share - basic and diluted	$ (0.52)	$ (0.57)	$ (0.56)	$ (0.52)	$ (0.34)	$ (0.42)	$ (0.51)	$ (0.31)	$ (2.17)	$ (1.58)	$ (1.35)
Weighted average number of shares - basic and diluted	79,603	79,543	79,334	79,139	79,067	79,003	78,849	78,738	79,407	78,915	79,701

Condensed Financial Information of Registrant - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Assets:
Cash and cash equivalents	$ 196,356	$ 117,302	$ 147,342	$ 131,295
Short-term investments	212,792	338,477
Prepaid expenses and other current assets	20,310	24,942
Other non-current assets	67,107	35,861
Total assets	1,403,175	1,246,196
Liabilities and stockholders' deficit:
Total current liabilities	316,278	251,063
Long-term debt	1,000,868	800,715
Other non-current liabilities	134,655	98,932
Total liabilities	1,594,739	1,286,589
Total stockholders' deficit	(191,564)	(40,393)	66,195	197,758
Total liabilities and stockholders' deficit	1,403,175	1,246,196
Parent Company [Member]
Assets:
Cash and cash equivalents	9,734	1,071	$ 71,889	$ 73,991
Short-term investments	192,893	213,905
Prepaid expenses and other current assets	913	567
Other non-current assets	100
Investments and advances with subsidiaries		44,288
Total assets	203,640	259,831
Liabilities and stockholders' deficit:
Total current liabilities	4,847	4,996
Long-term debt	307,968	286,964
Other non-current liabilities	5,983	8,264
Investments and payables with subsidiaries	76,406
Total liabilities	395,204	300,224
Total stockholders' deficit	(191,564)	(40,393)
Total liabilities and stockholders' deficit	$ 203,640	$ 259,831

Condensed Financial Information of Registrant - Condensed Statements of Operations and Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Income Statements, Captions [Line Items]
Interest income									$ (2,964)	$ (1,635)	$ (181)
Interest expense									111,944	83,647	58,889
Total other expense									109,730	96,554	61,533
Income (loss) before income taxes									(173,992)	(123,191)	(106,375)
Income tax provision (benefit)									(1,997)	1,314	1,238
Net loss	$ (41,138)	$ (45,281)	$ (44,209)	$ (41,367)	$ (26,932)	$ (33,273)	$ (40,194)	$ (24,106)	(171,995)	(124,505)	(107,613)
Comprehensive loss									(170,765)	(124,480)	(108,601)
Parent Company [Member]
Condensed Income Statements, Captions [Line Items]
Interest income									(1,681)	(978)	(158)
Interest expense									34,577	32,461	24,609
Total other expense									32,896	31,483	24,451
Income (loss) before income taxes									(32,896)	(31,483)	(24,451)
Income tax provision (benefit)									(2,045)	1,276	1,238
Equity losses of subsidiaries									141,144	91,746	81,924
Net loss									(171,995)	(124,505)	(107,613)
Comprehensive loss									$ (171,995)	$ (124,480)	$ (108,601)

Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands		3 Months Ended								12 Months Ended
	Mar. 03, 2015	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Condensed Cash Flow Statements, Captions [Line Items]
Net loss		$ (41,138)	$ (45,281)	$ (44,209)	$ (41,367)	$ (26,932)	$ (33,273)	$ (40,194)	$ (24,106)	$ (171,995)	$ (124,505)	$ (107,613)
Accretion of debt discount										19,520	17,496	12,555
Amortization of deferred financing costs										3,743	3,803	4,169
Deferred income taxes										(2,281)	839	827
Net cash provided by operating activities										60,256	64,988	104,856
Acquisition of short-term investments										(317,418)	(363,436)	(369,402)
Redemption of short-term investments										443,103	244,450	229,852
Other, net										(2,336)	308	(117)
Net cash used in investing activities										(156,881)	(295,559)	(292,815)
Financing activities:
Proceeds from issuance of convertible notes												361,940
Forward transactions	$ (140,000)											(140,000)
Net cash provided by financing activities										174,936	201,053	203,221
Increase (decrease) in cash and cash equivalents										79,054	(30,040)	16,047
Cash and cash equivalents at beginning of period					117,302				147,342	117,302	147,342	131,295
Cash and cash equivalents at end of period		196,356				117,302				196,356	117,302	147,342
Parent Company [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net loss										(171,995)	(124,505)	(107,613)
Accretion of debt discount										19,520	17,496	12,555
Amortization of deferred financing costs										1,484	1,392	1,044
Subsidiary equity losses										141,144	91,746	81,924
Deferred income taxes										(2,281)	839	827
Other operating activities										(609)	(319)	4,544
Net cash provided by operating activities										(12,737)	(13,351)	(6,719)
Acquisition of short-term investments										(192,893)	(213,905)	(329,503)
Redemption of short-term investments										213,905	179,593	189,868
Investments and advances with subsidiaries										601	(23,312)	(71,964)
Other, net										14	(114)
Net cash used in investing activities										21,627	(57,738)	(211,599)
Financing activities:
Proceeds from issuance of convertible notes												361,940
Forward transactions												(140,000)
Other financing activities										(227)	271	(5,724)
Net cash provided by financing activities										(227)	271	216,216
Increase (decrease) in cash and cash equivalents										8,663	(70,818)	(2,102)
Cash and cash equivalents at beginning of period					$ 1,071				$ 71,889	1,071	71,889	73,991
Cash and cash equivalents at end of period		$ 9,734				$ 1,071				$ 9,734	$ 1,071	$ 71,889

Employee Retirement and Postretirement Benefits	12 Months Ended
Employee Retirement and Postretirement Benefits	Dec. 31, 2017
Text Block [Abstract]
Employee Retirement and Postretirement Benefits	12. Employee Retirement and Postretirement Benefits 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 $5.9 million, $4.1 million, and $3.5 million for the years ended December 31, 2017, 2016 and 2015, respectively.

Background - Additional Information (Detail)	12 Months Ended
Background - Additional Information (Detail)	Dec. 31, 2017 Segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	3