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Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Dec. 31, 2019	Mar. 09, 2020	Jun. 28, 2019
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Common stock
Security Exchange Name	NASDAQ
Entity Address, Country	IL
Entity Common Stock, Shares Outstanding		83,318,003
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Public Float			$ 226,694,957

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 170,016	$ 184,155
Short-term investments		39,323
Total cash, cash equivalents and short-term investments	170,016	223,478
Accounts receivable, net of allowances of $686 and $500, respectively	101,360	134,308
Inventories	117,144	193,045
Prepaid expenses and other current assets	36,305	34,695
Total current assets	424,825	585,526
Non-current assets:
Property and equipment, net	560,318	511,867
Goodwill and intangible assets, net	76,499	83,491
Operating lease right-of-use assets	63,386
Other non-current assets	89,672	84,212
Total non-current assets	789,875	679,570
Total assets	1,214,700	1,265,096
Current liabilities:
Accounts payable	17,160	23,860
Accrued liabilities	174,111	213,111
Deferred revenue	34,789	38,571
Deferred airborne lease incentives	26,582	24,145
Total current liabilities	252,642	299,687
Non-current liabilities:
Long-term debt	1,101,248	1,024,893
Deferred airborne lease incentives	135,399	129,086
Non-current operating lease liabilities	77,808
Other non-current liabilities	46,493	80,191
Total non-current liabilities	1,360,948	1,234,170
Total liabilities	1,613,590	1,533,857
Commitments and contingencies (Note 16)
Stockholders' deficit
Common stock, par value $0.0001 per share; 500,000,000 shares authorized at December 31, 2019 and 2018; 88,292,821 and 87,678,812 shares issued at December 31, 2019 and 2018, respectively; and 88,240,877 and 87,560,694 shares outstanding at December 31, 2019 and 2018, respectively	9	9
Additional paid-in-capital	979,499	963,458
Accumulated other comprehensive loss	(2,256)	(3,554)
Accumulated deficit	(1,376,142)	(1,228,674)
Total stockholders' deficit	(398,890)	(268,761)
Total liabilities and stockholders' deficit	$ 1,214,700	$ 1,265,096

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Allowances on accounts receivable	$ 686	$ 500
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	88,292,821	87,678,812
Common stock, shares outstanding	88,240,877	87,560,694

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenue:
Total revenue	$ 835,726	$ 893,764	$ 699,090
Operating expenses:
Cost of service revenue (exclusive of items shown below)	297,848	291,642	268,334
Cost of equipment revenue (exclusive of items shown below)	134,728	222,244	58,554
Engineering, design and development	108,610	120,090	133,286
Sales and marketing	49,156	58,823	64,017
General and administrative	89,843	94,269	93,671
Depreciation and amortization	118,817	133,617	145,490
Total operating expenses	799,002	920,685	763,352
Operating income (loss)	36,724	(26,921)	(64,262)
Other (income) expense:
Interest income	(4,210)	(4,292)	(2,964)
Interest expense	130,572	122,809	111,944
Loss on extinguishment of debt	57,962	19,653
Other (income) expense	(2,602)	233	750
Total other expense	181,722	138,403	109,730
Loss before income taxes	(144,998)	(165,324)	(173,992)
Income tax provision (benefit)	1,006	(3,293)	(1,997)
Net loss	$ (146,004)	$ (162,031)	$ (171,995)
Net loss attributable to common stock per share—basic and diluted	$ (1.81)	$ (2.02)	$ (2.17)
Weighted average number of shares—basic and diluted	80,766	80,038	79,407
Service [Member]
Revenue:
Total revenue	$ 664,353	$ 630,147	$ 617,906
Product [Member]
Revenue:
Total revenue	$ 171,373	$ 263,617	$ 81,184

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Net loss	$ (22,351)	$ (22,891)	$ (83,963)	$ (16,799)	$ (59,688)	$ (37,717)	$ (37,207)	$ (27,419)	$ (146,004)	$ (162,031)	$ (171,995)
Currency translation adjustments, net of tax									1,298	(2,621)	1,230
Comprehensive loss									$ (144,706)	$ (164,652)	$ (170,765)

- Definition

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

+ References + Details

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating activities:
Net loss	$ (146,004)	$ (162,031)	$ (171,995)
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Depreciation and amortization	118,817	133,617	145,490
Loss on asset disposals, abandonments and write-downs	13,851	13,352	8,960
Gain on transition to airline-directed model		(21,551)
Deferred income taxes	178	(3,821)	(2,281)
Stock-based compensation expense	16,511	16,912	19,821
Amortization of deferred financing costs	5,260	4,280	3,743
Accretion and amortization of debt discount and premium	14,711	18,255	18,286
Loss on extinguishment of debt	57,962	19,653
Changes in operating assets and liabilities:
Accounts receivable	29,898	(17,064)	(43,798)
Inventories	29,092	(50,762)	4,723
Prepaid expenses and other current assets	(630)	(3,106)	4,990
Contract assets	(21,863)	(30,485)
Accounts payable	(4,111)	(3,864)	3,402
Accrued liabilities	(11,452)	13,281	24,941
Deferred airborne lease incentives	(3,645)	(7,705)	20,407
Deferred revenue	(4,971)	(1,021)	21,477
Accrued interest	(29,646)	(955)	7,213
Warranty reserves	3,875	8,009	(152)
Other non-current assets and liabilities	(3,772)	(7,305)	(4,971)
Net cash provided by (used in) operating activities	64,061	(82,311)	60,256
Investing activities:
Purchases of property and equipment	(100,123)	(108,632)	(252,375)
Acquisition of intangible assets—capitalized software	(15,355)	(23,031)	(27,855)
Purchases of short-term investments		(39,323)	(317,418)
Redemptions of short-term investments	39,323	212,792	443,103
Other, net	2,446		(2,850)
Net cash provided by (used in) investing activities	(73,709)	41,806	(157,395)
Financing activities:
Proceeds from issuance of senior secured notes	920,683		181,754
Redemption of senior secured notes	(741,360)
Proceeds from issuance of convertible notes		237,750
Redemption of convertible notes	(159,502)	(200,438)
Payment of debt issuance costs	(22,976)	(8,054)	(3,630)
Payments on financing leases	(713)	(2,340)	(2,961)
Stock-based compensation activity	325	396	(227)
Net cash provided by (used in) financing activities	(3,543)	27,314	174,936
Effect of exchange rate changes on cash	(250)	578	743
Increase (decrease) in cash, cash equivalents and restricted cash	(13,441)	(12,613)	78,540
Cash, cash equivalents and restricted cash at beginning of period	191,116	203,729	125,189
Cash, cash equivalents and restricted cash at end of period	177,675	191,116	203,729
Cash, cash equivalents and restricted cash at end of period	177,675	191,116	203,729
Less: current restricted cash	560	1,535	500
Less: non-current restricted cash	7,099	5,426	6,873
Cash and cash equivalents at end of period	170,016	184,155	196,356
Supplemental Cash Flow Information:
Cash paid for interest	140,833	101,489	86,359
Cash paid for taxes	490	401	103
Non-cash Investing and Financing Activities:
Purchases of property and equipment in current liabilities	11,176	18,640	53,682
Purchases of property and equipment paid by commercial airlines	$ 19,287	$ 7,474	$ 23,762

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, 2016	$ (40,393)	$ 9	$ 879,135	$ (2,163)	$ (917,374)
Beginning 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
Ending Balance at Dec. 31, 2017	(191,564)	$ 9	898,729	(933)	(1,089,369)
Ending Balance, Shares at Dec. 31, 2017		86,843,928
Net loss	(162,031)				(162,031)
Currency translation adjustments, net of tax	(2,621)			(2,621)
Stock-based compensation expense	16,912		16,912
Issuance of common stock upon exercise of stock options	21		21
Issuance of common stock upon exercise of stock options, Shares		2,500
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares		393,361
Tax withholding related to vesting of restricted stock units	(1,181)		(1,181)
Issuance of common stock in connection with employee stock purchase plan	1,556		1,556
Issuance of common stock in connection with employee stock purchase plan, Shares		320,905
Issuance of 2022 Convertible Notes (including issuance costs)	47,421		47,421
Impact of the adoption of new accounting standards	22,726				22,726
Ending Balance at Dec. 31, 2018	(268,761)	$ 9	963,458	(3,554)	(1,228,674)
Ending Balance, Shares at Dec. 31, 2018		87,560,694
Net loss	(146,004)				(146,004)
Currency translation adjustments, net of tax	1,298			1,298
Stock-based compensation expense	16,511		16,511
Issuance of common stock upon exercise of stock options	16		16
Issuance of common stock upon exercise of stock options, Shares		3,338
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares		372,030
Tax withholding related to vesting of restricted stock units	(865)		(865)
Issuance of common stock in connection with employee stock purchase plan	1,174		1,174
Issuance of common stock in connection with employee stock purchase plan, Shares		304,815
Repurchase of 2020 Convertible Notes	(795)		(795)
Impact of the adoption of new accounting standards	(1,464)				(1,464)
Ending Balance at Dec. 31, 2019	$ (398,890)	$ 9	$ 979,499	$ (2,256)	$ (1,376,142)
Ending Balance, Shares at Dec. 31, 2019		88,240,877

Background

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Background

1. Background

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

in-flight

entertainment to the aviation industry. We operate through the following three segments: Commercial Aviation North America, or

“CA-NA,”

Commercial Aviation Rest of World, or

“CA-ROW,”

and Business Aviation, or “BA.” Services provided by our

CA-NA

and

CA-ROW

businesses include Passenger Connectivity, which allows passengers to connect to the Internet from their personal

Wi-Fi-enabled

devices; Passenger Entertainment, which offers passengers the opportunity to enjoy a broad selection of

in-flight

entertainment options on their personal

Wi-Fi

enabled devices; and Connected Aircraft Services (“CAS”), which offers airlines connectivity for various operations and currently include, among other services, real-time credit card transaction processing, electronic flight bags and real-time weather information. Services are provided by

CA-NA

on commercial aircraft flying routes that generally begin and end within North America, which for this purpose includes the United States, Canada and Mexico.

CA-ROW

provides service on commercial aircraft operated by foreign-based commercial airlines and flights outside of North America for North American-based commercial airlines. The routes included in our

CA-ROW

segment are those that begin and/or end outside of North America (as defined above) on which our international service is provided. BA provides

in-flight

Internet connectivity and other voice and data communications products and services and sells equipment for

in-flight

telecommunications to the business aviation market. BA services include Gogo Biz, our

in-flight

broadband service, Passenger Entertainment, our

in-flight

entertainment service, and satellite-based voice and data services through our strategic alliances with satellite companies.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

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.

Reclassifications

—

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

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).

Certain cash amounts are restricted as to use and are classified outside of cash and cash equivalents. See Note 7, “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 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.

See Note 11, “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 14, “Income Tax,” for further details.

Inventories

—

Inventories consist primarily of telecommunications systems and parts, and are recorded at the lower of 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.

Historically, inventories were solely related to the BA segment. Starting in 2018, the airborne equipment within our

CA-NA

and

CA-ROW

segments became increasingly deployed under airline-directed model agreements (see “Revenue Recognition” below for additional details), and we currently allocate uninstalled airborne equipment between property and equipment, net, and inventories, based on our forecasts of estimated future installations by contract type. Prior to this allocation, uninstalled airborne equipment for the

CA-NA

and

CA-ROW

segments was classified as property and equipment, net, as the majority of installations were performed under our turnkey model agreements. See “Arrangements with Commercial Airlines,” below for additional information on the turnkey model treatment.

See Note 5, “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, 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 under the turnkey model. Depreciation expense totaled $99.2 million, $107.1 million and $120.6 million for the years ended December 31, 2019, 2018 and 2017, 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 5, “Composition of Certain Balance Sheet Accounts,” for further details.

Improvements to leased property are depreciated over the shorter of the useful life of the improvement or the term of the related lease. We reassess the useful lives of leasehold improvements when there are changes to the terms of the underlying lease. 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. 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.

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. Such 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.

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 6, “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 2019, 2018 and 2017 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		4-10 years

See Note 6, “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 2019, 2018 and 2017.

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. See “Revenue Recognition,” below for additional information on the airline-directed model.

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

Under the turnkey model, the assets are recorded as airborne equipment on our consolidated balance sheets, as noted in Note 5, “Composition of Certain Balance Sheet Accounts.” Any upfront equipment payments are accounted for as lease incentives and recorded as deferred airborne lease incentives on our consolidated balance sheets and are recognized as a reduction of the cost of service revenue on the straight-line basis over the term of the agreement with the airline.

See Note 15, “Leases,” for further details.

Transition Between Commercial Airline Agreements

—For

CA-NA

and

CA-ROW,

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

Transition to Turnkey Model

As of January 1, 2019, one airline transitioned from the airline-directed model to the turnkey model. This transition did not have a material impact on our consolidated statements of operations. However, as a result of such transition, $46.8 million of inventory was reclassified to property and equipment, net, as of January 1, 2019. See “Inventories” above for information regarding the allocation of airborne equipment between Inventories and Property and equipment, net. In September 2019, an additional airline transitioned from the airline-directed model to the turnkey model. This transition did not have a material impact on our consolidated statements of operations and resulted in the reclassification of amounts primarily between other

non-current

assets and operating lease

right-of-use

assets in our consolidated balance sheet.

Transition to Airline-Directed Model

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

non-current

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

non-current

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

non-current

assets, respectively; see “Revenue Recognition” below for additional details. In connection with the transition of this airline agreement to the airline-directed model, we also established warranty reserves related to previously sold equipment that are still under a warranty period, which is included within accrued liabilities. See Note 5, “Composition of Certain Balance Sheet Accounts” for additional information. This transition from the turnkey model to the airline-directed model occurred on January 4, 2018 and the total financial statement effect on our consolidated balance sheet and consolidated statement of operations was as follows (

in thousands


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

Revenue Recognition—

Our revenue is primarily earned from providing connectivity and entertainment services and through sales of equipment. Additionally, to a lesser extent, we earn revenue from providing ancillary services, including installation and CAS.

We determine revenue recognition through the following steps:

•

Identification of the contract, or contracts, with a customer;

•

Identification of the performance obligations in the contract;

•

Determination of the transaction price;

•

Allocation of the transaction price to the performance obligations in the contract; and

•

Recognition of revenue as we satisfy the performance obligations.

CA-NA

and

CA-ROW

Service Revenue

CA-NA

and

CA-ROW

revenue consists of service revenue primarily derived from connectivity services and, to a lesser extent, from Entertainment services and CAS. Connectivity is provided to our customers using both our ATG and satellite technologies.

Airline-directed connectivity revenue

As noted above, under the airline-directed model, the airline is our customer and we earn service revenue as connectivity services are consumed directly by the airline or indirectly by passengers.

Turnkey connectivity revenue (passenger connectivity):

Under the turnkey model, passenger connectivity revenue is generated by services paid for by passengers, airlines and third parties.

Passenger paid revenue represents

point-of-sale

sessions (which may be flight-based, time-based, multiple individual session packages (“multi-pack”) or subscriptions). Flight-based, time-based and multi-pack revenue is recognized when the sessions are used. Subscription revenue is recognized evenly throughout the subscription period, regardless of the number of times the customer uses the network.

Third party and airline-paid revenue is generated by sales of connectivity services to airlines or third parties in sponsorship, wholesale, enterprise and roaming arrangements. Sponsorship revenue is recognized over the sponsorship term. Revenue from wholesale, enterprise and roaming arrangements is recognized as sessions are used by the passenger.

Entertainment revenue:

Entertainment revenue consists of entertainment services we provide to the airline for use by its passengers. Revenue is recognized as the services are provided to the airline.

CAS revenue:

CAS revenue includes, among other things, real-time credit card transaction processing, electronic flight bags and real-time weather information. Revenue is recognized as the service is provided.

BA Service Revenue

BA service revenue primarily consists of monthly subscription and usage fees paid by aircraft owners and operators for telecommunication, data, and

in-flight

entertainment services. Revenue is recognized as the services are provided to the customer.

Equipment Revenue

Equipment revenue primarily consists of the sale of ATG and satellite connectivity equipment and the sale of entertainment equipment.

CA-NA

and

CA-ROW

recognize equipment revenue upon acceptance by our airline customers. BA primarily recognizes equipment revenue when the equipment is shipped to OEMs and dealers.

Equipment revenue also includes revenue generated by the installation of the connectivity or entertainment equipment on commercial aircraft, which is recognized when the installation is complete.

Contract price and allocation considerations

Our

CA-NA

and

CA-ROW

airline-directed contracts contain multiple performance obligations, which primarily include the sale of equipment, installation services, connectivity services and entertainment services. For these contracts, we account for each distinct good or service as a separate performance obligation. We allocate the contract’s transaction price to each performance obligation using the relative standalone selling price, which is based on the actual selling price for any good or service sold separately to a similar class of customer, if available. To the extent a good or service is not sold separately, we use our best estimate of the standalone selling price and maximize the use of observable inputs. The primary method we use to estimate the standalone selling price is the expected cost-plus margin approach.

The contractual consideration used for allocation purposes includes connectivity and entertainment services, which may be based on a fixed monthly fee per aircraft or a variable fee based on the volume of connectivity activity, or a combination of both. Examples of variable consideration within our contracts include megabyte overages and

pay-per-use

sessions. We constrain our estimates to reduce the probability of a significant revenue reversal in future periods, allocate such variable consideration to the identified performance obligations and recognize revenue in the period the services are provided. Our estimates are based on historical experience, anticipated future performance, market conditions and our best judgment at the time.

A significant change in one or more of these estimates could affect our estimated contract value, and we regularly review and update our estimates and recognize adjustments under the cumulative

catch-up

method. Any adjustment under this method is recorded as a cumulative adjustment in the period identified and revenue for future periods is recognized using the new adjusted estimate.

Research and Development Costs—

Expenditures for research and development are charged to expense as incurred and totaled $71.5 million, $72.7 million and $78.1 million for the years ended December 31, 2019, 2018, and 2017, respectively. Research and development costs are reported as a component of engineering, design and development expenses in our consolidated statements of operations.

Warranty—

We provide warranties on parts and labor related to our products. Our warranty terms range from two to ten 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 5, “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 5, “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 10, “Fair Value of Financial Assets and Liabilities,” for further information.

Derivatives—

In March 2015, we entered into the Forward Transactions (as defined and described in Note 7, “Long-Term Debt and Other Liabilities”) 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 13, 2020, and in December 2019, we amended a portion of the Forward Transactions to extend the expected settlement date for approximately 2.1 million of those shares to on or around May 15, 2022. Because the Forward Transactions are indexed to our own stock and classified within stockholders’ equity, we do not account for the Forward Transactions as derivative instruments in accordance with Accounting Standards Codification (“ASC”) 815,

Derivatives and Hedging

See Note 7, “Long-Term Debt and Other Liabilities,” Note 9, “Common Stock and Preferred Stock,” and Note 10, “Fair Value of Financial Assets and Liabilities,” for further information.

Convertible Notes

–

Proceeds received from the issuance of the 2022 Convertible Notes and the 2020 Convertible Notes (as defined in Note 7, “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 the 2022 Convertible Notes and the 2020 Convertible Notes.

See Note 7, “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 12, “Stock-Based Compensation,” for further information.

Leases

—

In addition to arrangements with commercial airlines which we account for as operating leases as noted above, we have operating lease agreements for which we have recorded lease liabilities and

right-of-use

assets for leases primarily related to cell sites, office buildings, warehouses and computer and office equipment. We determine whether a contract contains a lease at contract inception and calculate the lease liability and

right-of-use

asset

using

our incremental borrowing rate. Our cell site leases generally range in terms of five to ten years, with renewal options for an additional five to 25 years.

For certain cell sites, the renewal options are deemed to be reasonably certain to be exercised.

Our building leases generally range from one to ten years, with renewal options for an additional one to five years. We recognize operating lease expense on a straight-line basis over the lease term. We have finance leases for computer and office equipment. Covenants within the 2024 Senior Secured Notes contain certain restrictions on our ability to enter into new finance lease arrangements.

See Note 15, “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 7, “Long-Term Debt and Other Liabilities” for further information.

Comprehensive Loss—

Comprehensive loss for the years ended December 31, 2019, 2018 and 2017 is net loss plus unrealized gains and losses on foreign currency translation adjustments.

Recently Issued Accounting Pronouncements

Accounting standards adopted:

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

Leases

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

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

non-lease

components.

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

right-of-use

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

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

in thousands)


	Balance at						Balances with
	December 31,			Impact of			Adoption of
	2018			ASC 842			ASC 842
Assets
Operating lease right-of-use assets	$	—		$	72,188		$	72,188
Liabilities
Accrued liabilities		213,111			9,019			222,130
Non-current operating lease liabilities		—			102,440			102,440
Other non-current liabilities		80,191			(36,178	)		44,013
Equity
Accumulated deficit		(1,228,674	)		(3,093	)		(1,231,767	)

See Note 15, “Leases,” for additional information.

On January 1, 2019, we adopted ASU

2018-02,

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

(“ASU

2018-02”),

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

On January 1, 2019, we adopted ASU

2018-07,

Improvements to Nonemployee Share-Based Payment Accounting

(“ASU

2018-07”),

which expands the scope of ASC 718,

Compensation – Stock Compensation

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

On January 1, 2018, we adopted Accounting Standards Codification Topic 606,

Revenue From Contracts With Customers

(“ASC 606”), using the modified retrospective method. As a result, we recognized the cumulative effect of initially applying ASC 606 as an adjustment to the opening balance of retained earnings as of January 1, 2018. Our historical financial statements have not been restated and continue to be reported under the revenue accounting standard in effect for those periods.

Prior to the adoption of ASC 606, equipment revenue (and related cost) under some of our

CA-NA

and

CA-ROW

segment contracts was deferred and recognized over the life of the contract as the equipment and connectivity services did not meet the requirements to be treated as separate units of accounting. Under ASC 606, these same equipment transactions qualify as standalone performance obligations and, therefore, equipment revenue (and related cost) is recognized upon acceptance by our airline customers. Adoption of the new standard did not materially affect the amount or timing of equipment revenue recognized from our BA segment. Our service revenue across all segments continues to be recognized as the services are provided to customers.

In conjunction with the adoption of ASC 606, we also adopted Accounting Standard Codification Subtopic

340-40,

Other Assets and Deferred Costs – Contracts with Customers

(“ASC

340-40”),

which requires the capitalization of costs incurred to obtain or fulfill a contract with a customer. Prior to the adoption of ASC

340-40,

we expensed all fulfillment and other costs associated with airline-directed contracts, which were comprised predominantly of costs incurred to obtain supplemental type certificates (“STCs”); these costs are now required to be capitalized and amortized to expense over the life of the contract (and are included within engineering, design and development in our consolidated financial statements). Costs associated with our turnkey contracts are not eligible for capitalization under ASC

340-40

and will continue to be expensed as incurred.

The cumulative effect of the adoption of ASC 606 and ASC

340-40

to our consolidated balance sheet as of January 1, 2018 was as follows (

in thousands)


							Balances
	Balance at						with
	December 31,			Impact of			Adoption of
	2017			ASC 606			ASC 606
Assets
Inventories	$	45,543		$	974		$	46,517
Prepaid expenses and other current assets		20,310			603			20,913
Property and equipment, net		656,038			(4,405	)		651,633
Other non-current assets		67,107			(30,006	)		37,101
Liabilities
Current deferred revenue		43,448			(7,182	)		36,266
Other non-current liabilities		134,655			(48,378	)		86,277
Equity
Accumulated deficit		(1,089,369	)		22,726			(1,066,643	)

During the fourth quarter 2018, we identified an additional $0.9 million of property and equipment, net, that should have been included in the transition adjustments as of January 1, 2018. The schedule above reflects the additional adjustment.

All other new pronouncements:

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update

No. 2019-12

–

Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes

(“ASU

2019-12”),

as part of its initiative to reduce complexity in the accounting standards. The amendments in ASU

2019-12

eliminate certain exceptions to the incremental approach for intraperiod tax allocation and interim period income tax accounting for

year-to-date

losses that exceed projected losses. ASU

2019-12

also clarifies and simplifies other aspects of the accounting for income taxes. We will adopt this guidance as of January 1, 2021. We are currently evaluating the impact that this guidance will have upon our consolidated financial statements.

In June 2016, the FASB issued Accounting Standards Update

No. 2016-13,

Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

(“ASU

2016-13”),

which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU

2016-13

replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to

available-for-sale

debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. We will adopt this guidance as of January 1, 2020 with the cumulative effect of adoption recorded as an adjustment to retained earnings. We are currently evaluating new credit loss models and assessing our processes and controls in preparation for the adoption of ASU

2016-13.

Based on the current composition of our investment portfolio, current market conditions, and historical credit loss activity, the impact on our consolidated financial statements and related disclosures is not expected to be material.

In August 2018, the FASB issued Accounting Standards Update

No. 2018-15,

Intangibles – Goodwill and Other –

Internal-Use

Software (Subtopic

350-40):

Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract

(“ASU

2018-15”),

which requires an entity in a hosting arrangement that is a service contract to follow the guidance in Subtopic

350-40

to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. We will adopt this guidance prospectively on January 1, 2020. Adoption of this guidance is not expected to have a material impact on our consolidated financial statements.

In August 2018, the FASB issued Accounting Standards Update

No. 2018-13,

Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement

(“ASU

2018-13”).

ASU

2018-13

modifies the disclosure requirements related to recurring or nonrecurring fair value measurements. We will adopt this guidance prospectively on January 1, 2020. These changes are expected to only impact how fair value measurements are disclosed, without impacting the measurements themselves.

Net Loss Per Share

12 Months Ended

Dec. 31, 2019

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 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, 2019, 2018 and 2017 excludes the approximately 7.2 million shares associated with the Forward Transactions.

As a result of the net loss for each of the years ended December 31, 2019, 2018 and 2017 for the periods where such shares or securities were outstanding, all of the outstanding shares of common stock underlying stock options, deferred stock units and restricted stock units were excluded from the computation of diluted shares outstanding because they were anti-dilutive.

The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31, 2019, 2018 and 2017; 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,
	2019			2018			2017
Net loss	$	(146,004	)	$	(162,031	)	$	(171,995	)
Less: Participation rights of the Forward Transactions		—			—			—

Undistributed losses	$	(146,004	)	$	(162,031	)	$	(171,995	)

Weighted-average common shares outstanding-basic and diluted		80,766			80,038			79,407

Net loss attributable to common stock per share-basic and diluted	$	(1.81	)	$	(2.02	)	$	(2.17	)

Revenue Recognition

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue Recognition

4. Revenue Recognition

Remaining Performance Obligations

As of December 31, 2019, the aggregate amount of the transaction price in our contracts allocated to the remaining unsatisfied performance obligations is approximately $529 million, most of which relates to our commercial aviation contracts. Approximately $98 million represents future equipment revenue that is expected to be recognized within the next one to three years. The remaining $431 million primarily represents connectivity and entertainment service revenues which are recognized as services are provided, which is expected to occur through the remaining term of the contract (approximately

5-10

years). We have excluded from this amount: all variable consideration derived from our connectivity or entertainment services that is allocated entirely to our performance of obligations related to such services; consideration from contracts that have an original duration of one year or less; and revenue from passenger service on airlines operating under the turnkey model.

Disaggregation of revenue

The following table presents our revenue disaggregated by category

(in thousands)


	For the Year Ended
	December 31, 2019
	CA-NA		CA-ROW		BA		Total
Service revenue
Connectivity	$	322,783	$	84,419	$	219,450	$	626,652
Entertainment, CAS and other		31,583		3,646		2,472		37,701

Total service revenue	$	354,366	$	88,065	$	221,922	$	664,353

Equipment revenue
ATG	$	15,973	$	—	$	62,899	$	78,872
Satellite		6,340		60,657		21,755		88,752
Other		1,340		—		2,409		3,749

Total equipment revenue	$	23,653	$	60,657	$	87,063	$	171,373

Customer type
Airline passenger and aircraft owner/operator	$	203,376	$	27,581	$	221,922	$	452,879
Airline, OEM and aftermarket dealer		129,844		113,254		87,063		330,161
Third party		44,799		7,887		—		52,686

Total revenue	$	378,019	$	148,722	$	308,985	$	835,726


	For the Year Ended
	December 31, 2018
	CA-NA		CA-ROW		BA		Total
Service revenue
Connectivity	$	339,791	$	63,955	$	195,022	$	598,768
Entertainment, CAS and other		27,577		2,447		1,355		31,379

Total service revenue	$	367,368	$	66,402	$	196,377	$	630,147

Equipment revenue
ATG (1)	$	53,410	$	—	$	72,159	$	125,569
Satellite (1)		48,439		67,992		18,165		134,596
Other		—		—		3,452		3,452

Total equipment revenue	$	101,849	$	67,992	$	93,776	$	263,617

Customer type
Airline passenger and aircraft owner/operator	$	216,466	$	21,738	$	196,377	$	434,581
Airline, OEM and aftermarket dealer (2)		196,106		105,026		93,776		394,908
Third party		56,645		7,630		—		64,275

Total revenue	$	469,217	$	134,394	$	290,153	$	893,764

(1)

ATG and satellite equipment revenue for the

CA-NA

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

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

Contract balances

Our current and

non-current

deferred revenue balances totaled $56.7 million and $60.1 million as of December 31, 2019 and December 31, 2018, respectively. Deferred revenue includes, among other things, equipment, multi-pack and subscription connectivity products, sponsorship activities and airline-directed equipment and connectivity and entertainment service.

Our current and

non-current

contract asset balances totaled $64.2 million and $59.9 million as of December 31, 2019 and December 31, 2018, respectively. Contract assets represent the aggregate amount of revenue recognized in excess of billings for our airline-directed contracts.

Capitalized STC balances for our airline-directed contracts were $17.5 million and $16.5 million as of December 31, 2019 and December 31, 2018, respectively. The capitalized STC costs are amortized over the life of the associated airline-directed contracts as part of our engineering, design and development costs in our consolidated statements of operations. Total amortization expense was $2.7 million and $1.0 million, respectively, for the years ended December 31, 2019 and 2018.

Composition of Certain Balance Sheet Accounts

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Composition of Certain Balance Sheet Accounts

5. Composition of Certain Balance Sheet Accounts

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

in thousands


	December 31,
	2019		2018
Work-in-process component parts	$	23,141	$	30,340
Finished goods (1)		94,003		162,705

Total inventory	$	117,144	$	193,045

(1)	The change between December 31, 2019 and December 31, 2018 includes the $46.8 million accounting impact of one of our airline partner agreements transitioning to the turnkey model in January 2019 (see Note 2, “Summary of Significant Accounting Policies,” for additional information).

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

in thousands


	December 31,
	2019		2018
Contract assets	$	12,364	$	10,423
Prepaid satellite services		11,299		7,755
Restricted cash		560		1,535
Other		12,082		14,982

Total prepaid expenses and other current assets	$	36,305	$	34,695

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

in thousands


	December 31,
	2019			2018
Office equipment, furniture, fixtures and other	$	56,205		$	52,320
Leasehold improvements		44,389			44,838
Airborne equipment (1)		737,593			642,151
Network equipment		229,451			205,463

		1,067,638			944,772
Accumulated depreciation		(507,320	)		(432,905	)

Property and equipment, net	$	560,318		$	511,867

(1)	The change between December 31, 2019 and December 31, 2018 includes the $46.8 million accounting impact of one of our airline partner agreements transitioning to the turnkey model in January 2019 (see Note 2, “Summary of Significant Accounting Policies,” for additional information).

Other

non-current

assets as of December 31, 2019 and 2018 consist of the following (

in thousands


	December 31,
	2019		2018
Contract assets	$	51,829	$	49,517
Deferred STC costs		17,453		16,453
Restricted cash		7,099		5,426
Other		13,291		12,816

Total other non-current assets	$	89,672	$	84,212

Accrued liabilities as of December 31, 2019 and 2018 consist of the following (

in thousands


	December 31,
	2019		2018
Airline-related accrued liabilities, including revenue share	$	43,592	$	53,527
Accrued interest		17,048		46,694
Employee compensation and benefits		29,954		19,463
Airborne equipment and installation costs		11,466		25,119
Accrued satellite network costs		13,843		19,557
Warranty reserve		13,165		12,291
Operating leases (1)		12,241		—
Other		32,802		36,460

Total accrued liabilities	$	174,111	$	213,111

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

Other

non-current

liabilities as of December 31, 2019 and 2018 consist of the following (

in thousands


	December 31,
	2019		2018
Deferred revenue	$	21,889	$	21,482
Deferred rent (1)		—		35,897
Asset retirement obligations		11,560		9,696
Deferred tax liabilities		2,340		2,162
Other		10,704		10,954

Total other non-current liabilities	$	46,493	$	80,191

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

Changes in our warranty reserve, which is included in accrued liabilities, for the years ended December 31, 2019 and 2018 consist of the following (

in thousands


	Warranty
	Reserve
Balance—January 1, 2018	$	2,424
Accruals for warranties issued		10,172
Settlements of warranties		(305	)

Balance—December 31, 2018		12,291
Accruals for warranties issued		8,754
Settlements and adjustments to warranties (1)		(7,880	)

Balance—December 31, 2019	$	13,165

(1)	Includes the impact of airline partner agreements transitioning to the turnkey model in 2019 (see Note 2, “Summary of Significant Accounting Policies,” for additional information).

Changes in our

non-current

asset retirement obligations for the years ended December 31, 2019 and 2018 consist of the following (

in thousands


	Asset
	Retirement
	Obligation
Balance—January 1, 2018	$	9,668
Liabilities incurred (1)		(760	)
Liabilities settled		(192	)
Accretion expense		1,035
Foreign exchange rate adjustments		(55	)

Balance—December 31, 2018		9,696
Liabilities incurred		1,095
Liabilities settled		(39	)
Accretion expense		848
Foreign exchange rate adjustments		(40	)

Balance—December 31, 2019	$	11,560

(1)	Includes $0.8 million related to a change in estimate in the expected cash flows for our estimated liabilities.

Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

6. 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 as part of our acquisition of LiveTV Airfone, LLC. 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 2019, 2018, and 2017 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, 2019 and 2018.

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

in thousands, except for weighted average remaining useful life


	Weighted		As of December 31, 2019							As of December 31, 2018
	Avera ge 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		2.6	$	177,190	$	(135,154	)	$	42,036	$	164,580	$	(116,873	)	$	47,707
Other intangible assets		7.8		3,000		(1,440	)		1,560		3,000		(1,396	)		1,604
Service customer relationships				8,081		(8,081	)		—		8,081		(6,804	)		1,277
OEM and dealer relationships				6,724		(6,724	)		—		6,724		(6,724	)		—

Total amortized intangible assets				194,995		(151,399	)		43,596		182,385		(131,797	)		50,588

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

Total intangible assets			$	227,278	$	(151,399	)	$	75,879	$	214,668	$	(131,797	)	$	82,871

Amortization expense for the years ended December 31, 2019, 2018 and 2017 was $19.6 million, $26.5 million and $24.9 million, respectively.

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

in thousands


	Amortization
Years ending December 31,	Expense
2020	$	18,092
2021	$	13,820
2022	$	9,165
2023	$	1,411
2024	$	343
Thereafter	$	765

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, 2019

Debt Disclosure [Abstract]

Long-Term Debt and Other Liabilities

7. Long-Term Debt and Other Liabilities

Long-term debt as of December 31, 2019 and 2018

was as follows (

in thousands


	December 31,			December 31,
	2019			2018
2024 Senior Secured Notes	$	921,137		$	—
2022 Senior Secured Notes		—			702,670
2022 Convertible Notes		201,868			190,083
2020 Convertible Notes		2,498			149,195

Total debt		1,125,503			1,041,948
Less deferred financing costs		(24,255	)		(17,055	)

Total long-term debt	$	1,101,248		$	1,024,893

2024 Senior Secured Notes—

On April 25, 2019 (the “Issue Date”), Gogo Intermediate Holdings LLC (“GIH”) (a wholly owned subsidiary of Gogo Inc.) and Gogo Finance Co. Inc. (a wholly owned subsidiary of GIH) (“Gogo Finance” and, together with GIH, the “Issuers”) issued $905 million aggregate principal amount of 9.875%

senior secured notes due 2024 (the “Initial Notes”) under an indenture (the “Base Indenture”), dated as of April 25, 2019, among the Issuers, us, as guarantor, certain subsidiaries of GIH, as guarantors (the “Initial 2024 Subsidiary Guarantors” and, together with us, the “Initial 2024 Guarantors”), and U.S. Bank National Association, as trustee (the “Trustee”) and collateral agent (the “Collateral Agent”). On May 3, 2019, the Issuers, the Initial 2024 Guarantors and the Trustee entered into the first supplemental indenture (together with the Base Indenture and the second supplemental indenture, dated as of March 6, 2020, between the Issuers, the Initial 2024 Guarantors, Gogo Air International GmbH (an indirect subsidiary of GIH) (“Gogo International” and, together with the Initial 2024 Guarantors, the “2024 Guarantors”) and the Trustee to add Gogo International as a guarantor, the “2024 Indenture”)

to increase the amount of indebtedness that may be incurred under Credit Facilities (as defined in the 2024 Indenture) by GIH or its subsidiaries that are 2024 Guarantors by $20 million in aggregate principal amount. On May 7, 2019, the Issuers issued an additional $20 million aggregate principal amount of 9.875% senior secured notes due 2024 (the “Additional Notes”). We refer to the Initial Notes and the Additional Notes collectively as the “2024 Senior Secured Notes”. The Initial Notes were issued at a price equal to 99.512% of their face value, and the Additional Notes were issued at a price equal to 100.5% of their face value, resulting in aggregate gross proceeds of $920.7 million. Additionally, we received approximately $0.1 million for interest that accrued from April 25, 2019 through May 7, 2019 with respect to the Additional Notes that was included in our interest payment on November 1, 2019. The 2024 Senior Secured Notes are guaranteed on a senior secured basis by Gogo Inc. and all of GIH’s existing and future restricted subsidiaries (other than Gogo Finance), subject to certain exceptions. The 2024 Senior Secured Notes and the related guarantees are secured by second-priority liens on the ABL Priority Collateral (as defined below) and by first-priority liens on the Cash Flow Priority Collateral (as defined below), including pledged equity interests of the Issuers and all of GIH’s existing and future restricted subsidiaries guaranteeing the 2024 Senior Secured Notes, except for certain excluded assets and subject to permitted liens.

As of December 31, 2019, the outstanding principal amount of the 2024 Senior Secured Notes was $925 million, the unaccreted debt discount was $3.9 million and the net carrying amount was $921.1 million.

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

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

We paid approximately $22.0 million of origination fees and financing costs related to the issuance of the 2024 Senior Secured Notes, which have been accounted for as deferred financing costs. The deferred financing costs on our consolidated balance sheet are being amortized over the contractual term of the 2024 Senior Secured Notes using the effective interest method. Total amortization expense was $2.3 million for the year ended December 31, 2019. Amortization expense is included in interest expense in the consolidated statements of operations. As of December 31, 2019, the balance of unamortized deferred financing costs related to the 2024 Senior Secured Notes was $19.7 million and is included as a reduction to long-term debt in our consolidated balance sheet. See Note 8, “Interest Costs,” for additional information.

The 2024 Senior Secured Notes are the senior secured indebtedness of the Issuers and are:

•

effectively senior to (i) all of the Issuers’ existing and future senior unsecured indebtedness to the extent of the value of the collateral securing the 2024 Senior Secured Notes and (ii) the Issuers’ indebtedness secured on a junior priority basis by the same collateral securing the 2024 Senior Secured Notes to the extent of the value of such collateral, including the obligations under the ABL Credit Facility (as defined below) to the extent of the value of the Cash Flow Priority Collateral;

•

effectively equal in right of payment with the Issuers’ existing and future (i) unsecured indebtedness that is not subordinated in right of payment to the 2024 Senior Secured Notes and (ii) indebtedness secured on a junior priority basis by the same collateral securing the 2024 Senior Secured Notes, if any, in each case to the extent of any insufficiency in the collateral securing the 2024 Senior Secured Notes;

•

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

•

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

•

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

non-2024

Guarantors (other than the Issuers); and

•

effectively subordinated to all of our existing and future indebtedness secured on a senior priority basis by the same collateral securing the 2024 Senior Secured Notes to the extent of the value of such collateral, including the obligations under the ABL Credit Facility to the extent of the value of ABL Priority Collateral.

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

•

effectively senior in right of payment to all existing and future (i) senior unsecured indebtedness to the extent of the value of the collateral securing such guarantee owned by such 2024 Guarantor and (ii) indebtedness secured on a junior priority basis by the same collateral securing the guarantee owned by such 2024 Guarantor to the extent of the value of the collateral securing the guarantee, including the obligations under the ABL Credit Facility to the extent of the value of the Cash Flow Priority Collateral;

•

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

•

effectively subordinated to the obligations under the ABL Credit Facility of each 2024 Guarantor to the extent of the value of the ABL Priority Collateral owned by such 2024 Guarantor;

•

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

•

structurally subordinated to all indebtedness and other liabilities of any

non-2024

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

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

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

On or after May 1, 2021, the 2024 Senior Secured Notes will be redeemable at the following redemption prices (expressed in percentages of principal amount), plus accrued and unpaid interest, if any, to (but not including) the redemption date (subject to the right of holders of record on the relevant regular record date on or prior to the redemption date to receive interest due on an interest payment date), if redeemed during the twelve-month period commencing on May 1 of the following years:


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

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

provided, however

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

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

The 2024 Indenture contains covenants that, among other things, limit the ability of the Issuers and the 2024 Subsidiary Guarantors and, in certain circumstances, our ability, to: incur additional indebtedness; pay dividends, redeem stock or make other distributions; make investments; create restrictions on the ability of GIH’s restricted subsidiaries to pay dividends to the Issuers or make other intercompany transfers; create liens; transfer or sell assets; merge or consolidate; and enter into certain transactions with the Issuers’ affiliates. Most of these covenants will cease to apply if, and for as long as, the 2024 Senior Secured Notes have investment grade ratings from both Moody’s Investment Services, Inc. and Standard & Poor’s.

If we or the Issuers undergo specific types of change of control accompanied by a downgrade in the rating of the 2024 Senior Secured Notes prior to May 1, 2024, GIH is required to make an offer to repurchase for cash all of the 2024 Senior Secured Notes at a repurchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to (but not including) the payment date.

The 2024 Indenture provides for events of default, which, if any of them occur, would permit or require the principal, premium, if any, and interest on all of the then outstanding 2024 Senior Secured Notes issued under the 2024 Indenture to be due and payable immediately. As of December 31, 2019, no event of default had occurred.

ABL Credit Facility—

On August 26, 2019, Gogo Inc., GIH and Gogo Finance (together GIH and Gogo Finance are referred to as the “Borrowers”) entered into a credit agreement (the “ABL Credit Agreement”) among the Borrowers, the other loan parties party thereto, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent (the “Administrative Agent”), and Morgan Stanley Senior Funding, Inc., as syndication agent, which provides for an asset-based revolving credit facility (the “ABL Credit Facility”) of up to $30 million, subject to borrowing base availability, and includes letter of credit and swingline

sub-facilities.

Borrowing availability under the ABL Credit Facility is determined by a monthly borrowing base collateral calculation that is based on specified percentages of the value of eligible accounts receivable (including eligible unbilled accounts receivable) and eligible credit card receivables, less certain reserves and subject to certain other adjustments as set forth in the ABL Credit Agreement. Availability is reduced by issuance of letters of credit as well as any borrowings. As of December 31, 2019, no revolving loans were outstanding under the ABL Credit Facility.

The final maturity of the ABL Credit Facility is August 26, 2022, unless the aggregate outstanding principal amount of our 2022 Convertible Notes (as defined below) has not, on or prior to December 15, 2021, been repaid in full or refinanced with a new maturity date no earlier than February 26, 2023, in which case the final maturity date shall instead be December 16, 2021.

Loans outstanding under the ABL Credit Facility bear interest at a floating rate measured by reference to, at the Borrowers’ option, either (i) an adjusted London inter-bank offered rate plus an applicable margin ranging from 1.50% to 2.00% per annum depending on a fixed charge coverage ratio, or (ii) an alternate base rate plus an applicable margin ranging from 0.50% to 1.00% per annum depending on a fixed charge coverage ratio. Unused commitments under the ABL Credit Facility are subject to a per annum fee ranging from 0.25% to 0.375% depending on the average quarterly usage of the revolving commitments.

The obligations under the ABL Credit Agreement are guaranteed by Gogo Inc. and all of its existing and future subsidiaries, subject to certain exceptions (collectively, the “ABL Guarantors”), and such obligations and the obligations of the ABL Guarantors are secured on a (i) senior basis by a perfected security interest in all present and after-acquired inventory, accounts receivable, deposit accounts, securities accounts, and any cash or other assets in such accounts and other related assets owned by each ABL Guarantor and the proceeds of the foregoing, subject to certain exceptions (the “ABL Priority Collateral”) and (ii) junior basis by a perfected security interest in substantially all other tangible and intangible assets owned by each ABL Guarantor (the “Cash Flow Priority Collateral”).

The ABL Credit Agreement contains customary representations and warranties and customary affirmative and negative covenants. The negative covenants include restrictions on, among other things: the incurrence of additional indebtedness; the incurrence of additional liens; dividends or other distributions on equity; the purchase, redemption or retirement of capital stock; the payment or redemption of certain indebtedness; loans, guarantees and other investments; entering into other agreements that create restrictions on the ability to pay dividends or make other distributions on equity, make or repay certain loans, create or incur certain liens or guarantee certain indebtedness; asset sales; sale-leaseback transactions; swap agreements; consolidations or mergers; amendment of certain material documents; certain regulatory matters; Canadian pension plans; and affiliate transactions. The negative covenants are subject to customary exceptions and also permit dividends and other distributions on equity, investments, permitted acquisitions and payments or redemptions of indebtedness upon satisfaction of the “payment conditions.” The payment conditions are deemed satisfied upon Specified Availability (as defined in the ABL Credit Agreement) on the date of the designated action and Specified Availability for the prior

30-day

period exceeding agreed-upon thresholds, the absence of the occurrence and continuance of any default and, in certain cases, pro forma compliance with a fixed charge coverage ratio of no less than 1.10 to 1.00.

The ABL Credit Agreement includes a minimum fixed charge coverage ratio test of no less than 1.00 to 1.00, which is tested only when Specified Availability is less than the greater of (A) $4.5 million and (B) 15.0% of the then effective commitments under the ABL Credit Facility, and continuing until the first day immediately succeeding the last day of the calendar month which includes the thirtieth (30th) consecutive day on which Specified Availability is in excess of such threshold so long as no default has occurred and is continuing and certain other conditions are met. As of December 31, 2019, Specified Availability had not fallen below the amount specified and therefore the minimum fixed charge coverage ratio test was not applicable. Full availability under the ABL Credit Facility may be limited by our ability to comply with the fixed charge coverage ratio in future periods.

The ABL Credit Agreement provides for events of default, which, if any of them occurs, would permit or require the principal, premium, if any, and interest on all of the then outstanding obligations under the ABL Credit Facility to be due and payable immediately and the commitments under the ABL Credit Facility to be terminated.

On August 26, 2019, the Borrowers and the ABL Guarantors entered into an ABL collateral agreement (the “ABL Collateral Agreement”), in favor of the Administrative Agent, whereby the Borrowers and the ABL Guarantors granted a security interest in substantially all tangible and intangible assets of each Borrower and each ABL Guarantor, to secure all obligations of the Borrowers and the ABL Guarantors under the ABL Credit Agreement, and U.S. Bank National Association, as cash flow collateral representative, and JPMorgan Chase Bank, N.A., as ABL agent, entered into a crossing lien intercreditor agreement (the “Intercreditor Agreement”) to govern the relative priority of liens on the collateral that secures the ABL Credit Agreement and the 2024 Senior Secured Notes and certain other rights, priorities and interests.

2022 Senior Secured Notes—

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

On April 15, 2019, the Issuers elected to call for redemption in full all $690 million aggregate principal amount outstanding of the 2022 Senior Secured Notes in accordance with the terms of the Indenture. The redemption was conditioned, among other things, upon the incurrence of indebtedness in connection with the issuance of the 2024 Senior Secured Notes or from one or more other sources, in an amount satisfactory to the Issuers which condition was satisfied by the issuance of the 2024 Senior Secured Notes. On April 25, 2019, the Issuers irrevocably deposited, or caused to be irrevocably deposited, with the Trustee funds solely for the benefit of the holders of the 2022 Senior Secured Notes, cash in an amount sufficient to pay principal, premium, if any, and accrued interest on the 2022 Senior Secured Notes to, but not including, the date of redemption and all other sums payable under the Indenture. The Trustee executed and delivered an acknowledgement of satisfaction, discharge and release, dated as of April 25, 2019, among other documents, with respect to the satisfaction and discharge of the 2022 Senior Secured Notes. On May 15, 2019, the 2022 Senior Secured Notes were fully redeemed in accordance with the terms of the Indenture, and the amount deposited with the Trustee on April 25, 2019 was paid to the holders of the 2022 Senior Secured Notes. The make-whole premium paid in connection with the redemption was $51.4 million and we wrote off the remaining unamortized deferred financing costs of $9.1 million and the remaining debt premium of $11.7 million relating to the 2022 Senior Secured Notes in connection with the redemption thereof, which together are included in the loss on extinguishment of debt in our consolidated statements of operations for the year ended December 31, 2019.

We paid approximately $15.9 million of aggregate origination fees and financing costs related to the issuance of the 2022 Senior Secured Notes which were accounted for as deferred financing costs. Additionally, we paid approximately $1.4 million of consent fees in connection with the Supplemental Indenture, which partially offset the net carrying value of the 2022 Senior Secured Notes. Total amortization expense was $0.9 million, $2.6 million and $2.3 million, respectively, for the years ended December 31, 2019, 2018 and 2017. Amortization expense is included in interest expense in the consolidated statements of operations. As noted above, the remaining unamortized deferred financing costs were written off as of May 15, 2019.

Convertible Notes

2022 Convertible Notes

On November 21, 2018, we issued $215.0 million aggregate principal amount of 6.00% Convertible Senior Notes due 2022 (the “2022 Convertible Notes”) in private offerings to qualified institutional buyers, including pursuant to Rule 144A under the Securities Act, and in concurrent private placements. We granted an option to the initial purchasers to purchase up to an additional $32.3 million aggregate principal amount of 2022 Convertible Notes to cover over-allotments, of which $22.8 million was subsequently exercised during December 2018, resulting in a total issuance of $237.8 million aggregate principal amount of 2022 Convertible Notes. The 2022 Convertible Notes mature on May 15, 2022, unless earlier repurchased or converted into shares of our common stock under certain circumstances described below. Upon maturity, we have the option to settle our obligation through cash, shares of common stock, or a combination of cash and shares of common stock. We pay interest on the 2022 Convertible Notes semi-annually in arrears on May 15 and November 15 of each year, beginning on May 15, 2019.

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

paid-in

capital (the equity component) at $49.1 million, within the consolidated balance sheet. The fair value of the liability component was measured using rates determined for similar debt instruments without a conversion feature. The carrying amount of the equity component, representing the conversion option, was determined by deducting the fair value of the liability component from the aggregate face value of the 2022 Convertible Notes. If we or the note holders elect not to settle the debt through conversion, we must settle the 2022 Convertible Notes at face value. Therefore, the liability component will be accreted up to the face value of the 2022 Convertible Notes, which will result in additional

non-cash

interest expense being recognized in the consolidated statements of operations through the 2022 Convertible Notes maturity date (see Note 8, “Interest Costs,” for additional information). The effective interest rate on the 2022 Convertible Notes, including accretion of the notes to par and debt issuance cost amortization, was approximately 13.6%. The equity component will not be remeasured as long as it continues to meet the conditions for equity classification.

As of December 31, 2019 and 2018, the outstanding principal on the 2022 Convertible Notes was $237.8 million, the unaccreted debt discount was $35.9 million and $47.7 million, respectively, and the net carrying amount of the liability component was $201.9 million and $190.1 million, respectively.

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

paid-in

capital, respectively, in proportion to the allocation of the proceeds of the 2022 Convertible Notes. The $6.4 million recorded as deferred financing costs on our consolidated balance sheet is being amortized over the term of the 2022 Convertible Notes using the effective interest method. Total amortization expense was $1.7 million and $0.2 million, respectively, for the years ended December 31, 2019 and 2018. Amortization expense is included in interest expense in the consolidated statements of operations. As of December 31, 2019 and 2018, the balance of unamortized deferred financing costs related to the 2022 Convertible Notes was $4.5 million and $6.2 million, respectively, and is included as a reduction to long-term debt in our consolidated balance sheets. See Note 8, “Interest Costs,” for additional information.

The 2022 Convertible Notes had an initial conversion rate of 166.6667 common shares per $1,000 principal amount of 2022 Convertible Notes, which is equivalent to an initial conversion price of approximately $6.00 per share of our common stock. Upon conversion, we currently expect to deliver cash up to the principal amount of the 2022 Convertible Notes then outstanding. With respect to any conversion value in excess of the principal amount, we currently expect to deliver shares of our common stock. We may elect to deliver cash in lieu of all or a portion of such shares. The shares of common stock subject to conversion are excluded from diluted earnings per share calculations under the

if-converted

method as their impact is anti-dilutive.

Holders may convert the 2022 Convertible Notes, at their option, in multiples of $1,000 principal amount at any time prior to January 15, 2022, but only in the following circumstances:

•

during any fiscal quarter beginning after the fiscal quarter ended December 31, 2018, if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during the last 30 consecutive trading days of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price of the 2022 Convertible Notes on each applicable trading day;

•

during the five-business day period following any five consecutive trading day period in which the trading price for the 2022 Convertible Notes is less than 98% of the product of the last reported sale price of our common stock and the conversion rate for the 2022 Convertible Notes on each such trading day; or

•

upon the occurrence of specified corporate events.

None of the above events allowing for conversion prior to January 15, 2022 occurred during the year ended December 31, 2019. Regardless of whether any of the foregoing circumstances occurs, a holder may convert its 2022 Convertible Notes, in multiples of $1,000 principal amount, at any time on or after January 15, 2022 until the second scheduled trading day immediately preceding May 15, 2022.

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

2020 Convertible Notes

On March 3, 2015, we issued $340.0 million aggregate principal amount of 3.75% Convertible Senior Notes due 2020 (the “2020 Convertible Notes”) in a private offering to qualified institutional buyers, pursuant to Rule 144A under the Securities Act. We granted an option to the initial purchasers to purchase up to an additional $60.0 million aggregate principal amount of 2020 Convertible Notes to cover over-allotments, of which $21.9 million was subsequently exercised during March 2015, resulting in a total issuance of $361.9 million aggregate principal amount of 2020 Convertible Notes. We paid interest on the 2020 Convertible Notes semi-annually in arrears on March 1 and September 1 of each year. Interest payments began on September 1, 2015. In November 2018, in connection with the issuance of the 2022 Convertible Notes, we repurchased $199.9 million outstanding principal amount of the 2020 Convertible Notes at par value. As a result of the repurchase, the carrying value of the 2020 Convertible Notes was adjusted by $17.9 million to face value and included in the loss on extinguishment of debt in our consolidated statements of operations for the year ended December 31, 2018.

On April 18, 2019, we commenced a cash tender offer (the “Tender Offer”) to purchase any and all of the outstanding 2020 Convertible Notes for an amount equal to $1,000 per $1,000 principal amount of 2020 Convertible Notes purchased, plus accrued and unpaid interest from the last interest payment date on the 2020 Convertible Notes to, but not including, the date of payment for the 2020 Convertible Notes accepted in the Tender Offer. The Tender Offer expired on May 15, 2019, resulting in the purchase of $159.0 million of outstanding 2020 Convertible Notes. As a result of the Tender Offer, the carrying value of the 2020 Convertible Notes was adjusted by $8.5 million to face value and unamortized deferred financing costs of $0.6 million were expensed. These two items are included in the loss on extinguishment of debt in our consolidated statements of operations for the year ended December 31, 2019. During September 2019, we purchased an additional $0.5 million of outstanding 2020 Convertible Notes. The 2020 Convertible Notes matured on March 1, 2020.

The $361.9 million of proceeds received from the issuance of the 2020 Convertible Notes was initially allocated between long-term debt (the liability component) at $261.9 million and additional

paid-in

capital (the equity component) at $100.0 million, within the consolidated balance sheet. The fair value of the liability component was measured using rates determined for similar debt instruments without a conversion feature. The carrying amount of the equity component, representing the conversion option, was determined by deducting the fair value of the liability component from the aggregate face value of the 2020 Convertible Notes. If we or the holders of 2020 Convertible Notes elected not to settle the debt through conversion, we were required to settle the 2020 Convertible Notes at face value. Therefore, the liability component was accreted up to the face value of the 2020 Convertible Notes, which resulted in additional

non-cash

interest expense being recognized in the consolidated statements of operations (see Note 8, “Interest Costs,” for additional information). The effective interest rate on the 2020 Convertible Notes, including accretion of the notes to par and debt issuance cost amortization, was approximately 11.5%.

As of December 31, 2019 and 2018, the outstanding principal on the 2020 Convertible Notes was $2.5 million and $162.0 million, respectively, the unamortized debt discount was zero and $12.8 million, respectively, and the net carrying amount of the liability component was $2.5 million and $149.2 million, respectively.

We incurred approximately $10.4 million of issuance costs related to the issuance of the 2020 Convertible Notes, of which $7.5 million and $2.9 million were recorded to deferred financing costs and additional

paid-in

capital, respectively, in proportion to the allocation of the proceeds of the 2020 Convertible Notes. The $7.5 million recorded as deferred financing costs on our consolidated balance sheet is being amortized over the term of the 2020 Convertible Notes using the effective interest method. Total amortization expense of the deferred financing costs was $0.2 million, $1.4 million and $1.5 million, respectively, for the years ended December 31, 2019, 2018 and 2017. Amortization expense is included in interest expense in the consolidated statements of operations. As of December 31, 2019 and 2018, the balance of unamortized deferred financing costs related to the 2020 Convertible Notes was zero and $0.9 million, respectively, and is included as a reduction to long-term debt in our consolidated balance sheets. See Note 8, “Interest Costs,” for additional information.

The 2020 Convertible Notes had an initial conversion rate of 41.9274 common shares per $1,000 principal amount of 2020 Convertible Notes, which was equivalent to an initial conversion price of approximately $23.85 per share of our common stock. Upon conversion and prior to maturity, we expected to deliver cash up to the principal amount of the 2020 Convertible Notes then outstanding. With respect to any conversion value in excess of the principal amount, we expected to deliver shares of our common stock. We had the option to elect to deliver cash in lieu of all or a portion of such shares. The shares of common stock subject to conversion were excluded from diluted earnings per share calculations under the

if-converted

method as their impact is anti-dilutive.

Forward Transactions

In connection with the issuance of the 2020 Convertible Notes, we paid approximately $140 million to enter into prepaid forward stock repurchase transactions (the “Forward Transactions”) with certain financial institutions (the “Forward Counterparties”), pursuant to which we purchased approximately 7.2 million shares of common stock for settlement on or around the March 1, 2020 maturity date for the 2020 Convertible Notes, subject to the ability of each Forward Counterparty to elect to settle all or a portion of its Forward Transactions early.

On December 11, 2019, we entered into an amendment to one of the Forward Transactions (the “Amended and Restated Forward Transaction”) to extend the expected settlement date with respect to approximately 2.1 million shares of common stock held by one of the Forward Counterparties, JPMorgan Chase Bank, National Association (the “2022 Forward Counterparty”), to correspond with the May 15, 2022 maturity date for the 2022 Convertible Notes. In the future, we may request that the 2022 Forward Counterparty modify the settlement terms of the Amended and Restated Forward Transaction to provide that, in lieu of the delivery of the applicable number of shares of our common stock to us to settle a portion of the Amended and Restated Forward Transaction in accordance with its terms, the 2022 Forward Counterparty would pay to us the net proceeds from the sale by the 2022 Forward Counterparty (or its affiliate) of a corresponding number of shares of our common stock in a registered offering (which may include block sales, sales on the NASDAQ Global Select Market, sales in the

over-the-counter

market, sales pursuant to negotiated transactions or otherwise, at market prices prevailing at the time of sale or at negotiated prices). Any such sales could potentially decrease (or reduce the size of any increase in) the market price of our common stock. The 2022 Forward Counterparty is not required to effect any such settlement in cash in lieu of delivery of shares of our common stock and, if we request that the 2022 Forward Counterparty effect any such settlement, it will be entered into in the discretion of the 2022 Forward Counterparty on such terms as may be

mutually

agreed upon at the time. As a result of the Forward Transactions, total shareholders’ equity within our consolidated balance sheet was reduced by approximately $140 million.

Between

March

2020, approximately 5.1 million shares of common stock

were

delivered to us in connection with the Forward Transactions.

The

approximately 2.1 million shares of common stock

remaining under the Amended and Restated

Forward Transactions

are

treated as retired shares for basic and diluted EPS purposes although they remain legally outstanding.

Restricted Cash

—Our restricted cash balances were $7.7 million and $7.0 million, respectively, as of December 31, 2019 and 2018 and primarily consist of letters of credit and cash restricted to repurchase or repay the remaining balance of the 2020 Convertible Notes. Certain of the letters of credit require us to maintain restricted cash accounts in a similar amount, and are issued for the benefit of the landlords at our current office locations in Chicago, IL, Bensenville, IL and Broomfield, CO.

Interest Costs

12 Months Ended

Dec. 31, 2019

Text Block [Abstract]

Interest Costs

8. Interest Costs

The following is a summary of our interest costs for the years ended December 31, 2019, 2018 and 2017

(in thousands)


	For the Years Ended December 31,
	2019			2018			2017
Interest costs charged to expense	$	110,601		$	100,274		$	89,915
Amortization of deferred financing costs		5,260			4,280			3,743
Accretion of debt discount		15,729			21,105			19,520
Amortization of debt premium		(1,018	)		(2,850	)		(1,234	)

Interest expense		130,572			122,809			111,944
Interest costs capitalized to property and equipment		11			32			26
Interest costs capitalized to software		608			364			1,075

Total interest costs	$	131,191		$	123,205		$	113,045

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.

Common Stock and Preferred Stock

12 Months Ended

Dec. 31, 2019

Text Block [Abstract]

Common Stock and Preferred Stock

9. Common Stock and Preferred Stock

Common Stock—

We have one class of common stock outstanding as of December 31, 2019 and 2018. 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, 2019

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets and Liabilities

10. 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 2024 Senior Secured Notes, 2022 Convertible Notes, 2020 Convertible Notes, and, while outstanding, the 2022 Senior Secured Notes, 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 2024 Senior Secured Notes, the 2022 Convertible Notes, the 2020 Convertible Notes, and, while outstanding, the 2022 Senior Secured Notes by calculating the upfront cash payment a market participant would require to assume these obligations. The upfront cash payments used in the calculations of fair value on our December 31, 2019 consolidated balance sheet, excluding any issuance costs, are the amount that a market participant would be willing to lend at December 31, 2019 to an entity with a credit rating similar to ours and that would allow such an entity to achieve sufficient cash inflows to cover the scheduled cash outflows under the 2024 Senior Secured Notes, the 2022 Convertible Notes and the 2020 Convertible Notes. The calculated fair value of the 2022 Convertible Notes and 2020 Convertible Notes is correlated to our stock price and as a result, significant changes to our stock price could have a significant impact on their calculated fair values.

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

(in thousands)


	December 31, 2019					December 31, 2018
	Fair Value (1)		Carrying Value			Fair Value (1)		Carrying Value
2024 Senior Secured Notes	$	982,000	$	921,137	(2)	$	—	$	—
2022 Senior Secured Notes		—		—			737,000		702,670	(3)
2022 Convertible Notes		297,000		201,868	(4)		216,000		190,083	(4)
2020 Convertible Notes		2,498		2,498			150,000		149,195	(5)

(1)	Fair value amounts are rounded to the nearest million, except for the 2020 Convertible Notes as of December 31, 2019.

(2)	Carrying value of the 2024 Senior Secured Notes reflects the unaccreted debt discount of $3.9 million as of December 31, 2019. See Note 7, “Long-Term Debt and Other Liabilities,” for further information.

(3)	Carrying value of the 2022 Senior Secured Notes reflects the unamortized debt premium and consent fees of $12.7 million as of December 31, 2018. See Note 7, “Long-Term Debt and Other Liabilities,” for further information.

(4)	Carrying value of the 2022 Convertible Notes reflects the unaccreted debt discount of $35.9 million and $47.7 million, respectively, as of December 31, 2019 and 2018. See Note 7, “Long-Term Debt and Other Liabilities,” for further information.

(5)	Carrying value of the 2020 Convertible Notes reflects the unaccreted debt discount of $12.8 million as of December 31, 2018. See Note 7, “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, 2019, 2018 and 2017.

- 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, 2019

Segment Reporting [Abstract]

Business Segments and Major Customers

11. Business Segments and Major Customers

During the fourth quarter of 2019, we revised the presentation of our reportable segments’ operating results in order to exclude the impact of certain corporate costs from the calculation of total reportable segment profit (loss). All amounts from prior years have been reclassified to conform to the current year’s presentation.

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

in-flight

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

in-flight

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

in-flight

connectivity along with voice and data services to the business aviation market. BA services include Gogo Biz, our

in-flight

broadband service that utilizes both our ATG network and our ATG spectrum, Passenger Entertainment, our

in-flight

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. Our foreign revenue accounted for less than 15% of our consolidated revenue for the years ended December 31, 2019, 2018 and 2017. 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 15% of our consolidated assets as of both December 31, 2019 and December 31, 2018. 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 reportable segment profit (loss), which is calculated internally as net income (loss) attributable to common stock before unallocated corporate costs, interest expense, interest income, income taxes, depreciation and amortization, and certain

non-cash

items (including amortization of deferred airborne lease incentives, stock-based compensation expense, loss on extinguishment of debt, amortization of STC costs and the accounting impact of the transition to the airline-directed model) and other income (expense). Reportable 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, reportable segment profit (loss) is included herein in conformity with ASC

280-10,

Segment Reporting

. Management believes that reportable segment profit (loss) provides useful information for analyzing and evaluating the underlying operating results of each segment. However, reportable 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 reportable 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, 2019
	CA-NA		CA-ROW			BA		Total
Service revenue	$	354,366	$	88,065		$	221,922	$	664,353
Equipment revenue		23,653		60,657			87,063		171,373

Total revenue	$	378,019	$	148,722		$	308,985	$	835,726

Reportable segment profit (loss)	$	97,920	$	(62,314	)	$	143,966	$	179,572


	For the Year Ended December 31, 2018
	CA-NA		CA-ROW			BA		Total
Service revenue	$	367,368	$	66,402		$	196,377	$	630,147
Equipment revenue (1)		101,849		67,992			93,776		263,617

Total revenue	$	469,217	$	134,394		$	290,153	$	893,764

Reportable segment profit (loss)	$	62,286	$	(90,779	)	$	140,198	$	111,705


	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

Reportable segment profit (loss)	$	100,754	$	(102,482	)	$	99,513	$	97,785

(1)	CA-NA equipment revenue for the year ended December 31, 2018 includes the accounting impact of the transition of one of our airline partners to the airline-directed model. See Note 2, “Summary of Significant Accounting Policies,” for additional information.

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

in thousands


	For the Years Ended December 31,
	2019			2018			2017
CA-NA segment profit	$	97,920		$	62,286		$	100,754
CA-ROW segment loss		(62,314	)		(90,779	)		(102,482	)
BA segment profit		143,966			140,198			99,513

Total reportable segment profit		179,572			111,705			97,785
Unallocated corporate costs (1)		(33,365	)		(40,275	)		(38,552	)
Interest income		4,210			4,292			2,964
Interest expense		(130,572	)		(122,809	)		(111,944	)
Depreciation and amortization		(118,817	)		(133,617	)		(145,490	)
Transition to airline-directed model		—			21,551			—
Amortization of deferred airborne lease incentives		28,551			31,650			41,816
Amortization of STC costs		(2,706	)		(1,023	)		—
Stock-based compensation expense		(16,511	)		(16,912	)		(19,821	)
Loss on extinguishment of debt		(57,962	)		(19,653	)		—
Other income (expense)		2,602			(233	)		(750	)

Loss before income taxes	$	(144,998	)	$	(165,324	)	$	(173,992	)

(1)

Represents costs that are not directly attributable to the reportable segments, comprised primarily of the costs of corporate functions, including executive, legal, finance and human resources, but excluding stock-based compensation

expense

for

those functions

of $6.1 million, $5.9 million and $7.3

million, respectively, for the years ending December 31, 2019, 2018 and 2017.

Major Customers and Airline Partnerships—

Revenue earned from Delta and its passengers accounted for approximately 28%, 23% and 26% of consolidated revenue, respectively, for the years ended December 31, 2019, 2018 and 2017. Delta

accounted for approximately 11% of consolidated accounts receivable as of both December 31, 2019 and 2018.

Revenue earned from American Airlines accounted for less than 10% and approximately 22% of consolidated revenue, respectively, for the years ended December 31, 2019 and 2018. Revenue earned from American Airlines for the year ended December 31, 2018 included $45.4 million of equipment revenue recognized due to the airline’s transition to the airline-directed model in January 2018. See Note 2, “Summary of Significant Accounting Policies,” for additional information. Revenue earned from passengers on aircraft operated by American Airlines, which was under the turnkey model during the year ended December 31, 2017, accounted for approximately 21% of consolidated revenue. American Airlines accounted for less than 10% of consolidated accounts receivable as of December 31, 2019 and approximately 11% of consolidated accounts receivable as of December 31, 2018.

Stock-Based Compensation

12 Months Ended

Dec. 31, 2019

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

Stock-Based Compensation

12. Stock-Based Compensation

As of December 31, 2019, we maintained three stock-based

incentive

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, collectively referred to as the “Stock Plans

” as well as an ESPP, as defined and discussed below.

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, 27,906,570 shares of common stock were reserved for issuance. As of December 31, 2019, 5,097,835 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 on the anniversary of each grant date, (c) vest 25% after one year from grant date and in equal monthly increments for the following three years or (d) vest on the date of grant for options granted to

non-employee

members of our board of 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 we 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, 2019, 2018 and 2017

(in thousands)


	2019		2018		2017
Cost of service revenue	$	1,615	$	1,659	$	1,748
Cost of equipment revenue		275		210		185
Engineering, design and development		2,999		3,347		3,656
Sales and marketing		3,377		4,267		4,751
General and administrative		8,245		7,429		9,481

Total stock-based compensation expense	$	16,511	$	16,912	$	19,821

A summary of stock option activity for the year ended December 31, 2019 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, 2019		10,714,158		$	12.81		6.25	$	—
Granted		1,525,880		$	4.69
Exercised		(3,338	)	$	5.01
Forfeited		(555,605	)	$	9.45
Expired		(606,591	)	$	15.78

Options outstanding—December 31, 2019		11,074,504		$	11.70		5.25	$	3,050

Options exercisable—December 31, 2019		7,393,469		$	13.34		3.82	$	780

As of December 31, 2019, total unrecognized compensation costs related to unvested stock options were approximately $9 million which is expected to be recognized over a weighted average period of approximately 3.8 years. The total grant date fair value of stock options vested in 2019, 2018 and 2017 was approximately $8 million, $9 million and $10 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, 2019, 2018, and 2017 were as follows:


	2019			2018			2017
Approximate risk-free interest rate		2.3	%		2.7	%		2.3	%
Average expected life (years)		6.02			6.03			6.14
Dividend yield		N/A			N/A			N/A
Volatility		60.5	%		49.2	%		45.3	%
Weighted average grant date fair value of common stock underlying options granted	$	4.71		$	8.97		$	11.97
Weighted average grant date fair value of stock options granted	$	2.69		$	4.42		$	5.59

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. Beginning in 2020, we will calculate volatility based exclusively on our own common stock.

The following table summarizes the activities for our unvested RSUs and DSUs for the year ended December 31, 2019:


	Number of Underlying Shares			Weighted Average Grant Date Fair Value
Unvested—January 1, 2019		3,223,980		$	6.51
Granted		2,219,248		$	4.73
Vested		(692,693	)	$	9.20
Forfeited/canceled		(567,303	)	$	5.94

Unvested — December 31, 2019		4,183,232		$	5.18

As of December 31, 2019, there was approximately $13 million of unrecognized compensation cost related to unvested employee RSUs. This amount is expected to be recognized over a weighted-average period of approximately 1.9 years. The total grant date fair value of RSUs and DSUs vested in 2019 was approximately $7 million.

The following table summarizes the activity for our restricted stock for the year ended December 31, 2019:


	Number of Underlying Shares			Weighted Average Grant Date Fair Value
Unvested—January 1, 2019		118,053		$	12.38
Granted		—		$	—
Vested		(66,174	)	$	11.95
Forfeited/canceled		(7,675	)	$	2.99

Unvested—December 31, 2019		44,204		$	11.63

As of December 31, 2019, there was approximately $0.3 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 1.1 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 in 2017, the ESPP was amended to increase the number of shares reserved thereunder. 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 304,831 shares of common stock were issued during the year ended December 31, 2019.

As of December 31, 2019, 178,349 shares remained available for purchase under the ESPP.

Employee Retirement and Postretirement Benefits

12 Months Ended

Dec. 31, 2019

Text Block [Abstract]

Employee Retirement and Postretirement Benefits

13. 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 $5.2 million, $5.1 million, and $5.9 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Income Tax

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Tax

14. Income Tax

For financial reporting purposes, loss before income taxes included the following components for the years ended December 31, 2019, 2018, and 2017 (

in thousands


	For the Years Ended December 31,
	2019			2018			2017
United States	$	(131,220	)	$	(128,361	)	$	(138,881	)
Foreign		(13,778	)		(36,963	)		(35,111	)

Loss before income taxes	$	(144,998	)	$	(165,324	)	$	(173,992	)

Significant components of the (benefit) provision for income taxes for the years ended December 31, 2019, 2018, and 2017 are as follows (

in thousands


	For the Years Ended December 31,
	2019		2018			2017
Current:
Federal	$	—	$	—		$	—
State		385		467			235
Foreign		444		61			49

		829		528			284

Deferred:
Federal		91		(3,908	)		(2,590	)
State		86		87			309

		177		(3,821	)		(2,281	)

Total	$	1,006	$	(3,293	)	$	(1,997	)

The (benefit) provision for income taxes differs from income taxes computed at the federal statutory tax rates for the years ended December 31, 2019, 2018, and 2017 as a result of the following items:


	For the Years Ended December 31,
	2019			2018			2017
Federal statutory rate		21.0	%		21.0	%		35.0	%
Effect of:
Impact of change in tax rate		(0.1	)		0.1			(47.0	)
Change in valuation allowance		(22.7	)		(24.8	)		12.5
State income taxes-net of federal tax benefit		4.2			4.0			2.4
Other		(3.1	)		1.7			(1.8	)

Effective tax rate		(0.7	)%		2.0	%		1.1	%

Components of the net deferred income tax asset as of December 31, 2019 and 2018 are as follows (

in thousands


	December 31,			December 31,
	2019			2018
Deferred income tax assets:
Compensation accruals	$	5,847		$	3,407
Stock options		18,192			15,552
Inventory		1,266			1,102
Warranty reserves		913			1,014
Deferred rent		—			9,603
Deferred revenue		43,256			37,501
Federal net operating loss (NOL)		141,803			143,433
State NOL		24,744			24,623
Interest carryforward		48,980			22,029
UN I CAP adjustment		2,539			2,311
Finite-lived intangible assets		6,394			7,576
Lease liability		22,355			—
Other		9,243			11,576

Total deferred income tax assets		325,532			279,727

Deferred income tax liabilities:
Fixed assets		(59,584	)		(53,944	)
Indefinite-lived intangible assets		(7,074	)		(6,528	)
Convertible Notes discount		(8,706	)		(14,612	)
Right-of-use asset		(13,553	)		—
Other		(3,768	)		(2,272	)

Total deferred income tax liabilities		(92,685	)		(77,356	)

Total deferred income tax		232,847			202,371
Valuation allowance		(235,187	)		(204,533	)

Net deferred income tax liability	$	(2,340	)	$	(2,162	)

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 2019, 2018, and 2017, which means we are in a domestic three-year cumulative loss position. As a result of this and other assessments in fiscal year 2019, 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, 2019, the federal net operating loss (“NOL”) carryforward amount was approximately $579 million and the state NOL carryforward amount was approximately $430 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, interest carryforward 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 interest carryforward arises from U.S. Tax Reform and limits the interest expense deduction to 30% of EBITDA for tax years 2018 to 2021 and 30% of EBIT for 2022 and subsequent years. The interest carryforward will not expire as it may be carried forward indefinitely. 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, Germany, the Netherlands and India. With few exceptions, as of December 31, 2019, we are no longer subject to U.S. federal, state, local or foreign examinations by tax authorities for years before 2016.

As a result of the passage of H.R. 1, originally known as the Tax Cuts and Jobs Act (“U.S. 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 resulted in an offsetting change to the deferred tax asset valuation allowance and did 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.

As of December 31, 2019, 2018 and 2017, 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, 2019, 2018 or 2017. As of December 31, 2019 and 2018, we did not have a liability recorded for interest or potential penalties.

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

Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

15. Leases

The following is a summary of our lease expense included in the consolidated statement of operations

(in thousands)


	For the Year Ended
	December 31, 2019
Operating lease cost	$	19,437
Financing lease cost
Amortization of leased assets		666
Interest on lease liabilities		57

Total lease cost	$	20,160

Other information regarding our leases is as follows

(in thousands, except lease terms and discount rates)


	For the Year Ended
	December 31, 2019
Supplemental cash flow information
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows used in operating leases	$	23,202
Operating cash flows used in financing leases		57
Financing cash flows used in financing leases		713
Non-cash items:
Operating leases obtained		15,588
Modifications to operating leases		(20,027	)
Finance leases obtained		1,326
Weighted average remaining lease term
Operating leases		8 years
Financing leases		3 years
Weighted average discount rate
Operating leases		9.44	%
Financing leases		8.28	%

Annual future minimum lease payments as of December 31, 2019

(in thousands)


	Operating			Financing
Years ending December 31,	Leases			Leases
2020	$	19,930		$	761
2021		18,760			555
2022		17,145			473
2023		13,246			—
2024		9,571			—
Thereafter		53,913			—

Total future minimum lease payments		132,565			1,789
Less: Amount representing interest		(42,516	)		(157	)

Present value of net minimum lease payments	$	90,049		$	1,632

Reported as of December 31, 2019
Accrued liabilities	$	12,241		$	620
Non-current operating lease liabilities		77,808			—
Other non-current liabilities		—			1,012

Total lease liabilities	$	90,049		$	1,632

As of December 31, 2019, we had one operating lease that had not yet commenced with a present value of net minimum lease payments of $6 million. Such lease will commence in 2020.

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. See Note 2, “Summary of Significant Accounting Policies,” for additional information on airline-directed arrangements.

We recognized $28.6 million, $31.7 million, and $41.8 million, respectively, for the years ended December 31, 2019, 2018 and 2017, as a reduction to cost of service revenue in our consolidated statements of operations from the amortization of deferred airborne lease incentives. As of December 31, 2019, deferred airborne lease incentives of $26.6 million and $135.4 million, respectively, are included in current and

non-current

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

non-current

liabilities in our consolidated balance sheet. See Note 2, “Summary of Significant Accounting Policies,” for additional information.

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 $25.1 million, $24.5 million, and $30.5 million, respectively, for the years ended December 31, 2019, 2018 and 2017. See Note 2, “Summary of Significant Accounting Policies,” for additional information.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

16. 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, 2019 commit us to purchase transponder and teleport satellite services totaling approximately $141.3 million in 2020, $129.7 million in 2021, $109.8 million in 2022, $90.6 million in 2023, $85.4 million in 2024 and $289.0 million thereafter.

We have agreements with various vendors under which we have remaining commitments to purchase satellite-based systems, certifications and development services. Such commitments will become payable as we receive the equipment or certifications, or as development services are provided.

Damages and Penalties—

We have entered into a number of agreements with our airline partners that require us to provide a credit or pay penalties or liquidated damages to our airline partners 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 the performance of others, such as the use of corporate credit cards issued to employees. Based on historical experience, we believe that the risk of sustaining any material loss related to such guarantees is remote.

We have entered into a number of agreements, including our agreements with commercial airlines, pursuant to which we indemnify the other party for losses and expenses suffered or incurred in connection with any patent, copyright, or trademark infringement or misappropriation claim asserted by a third party with respect to our equipment or services. The maximum potential amount of future payments we could be required to make under these indemnification agreements is uncertain and is typically not limited by the terms of the agreements.

Linksmart Litigation—

April 20, 2018, Linksmart Wireless Technology, LLC filed suit against us and eight of our airline partners in the U.S. District Court for the Central District of California alleging that our redirection server and login portal infringe a patent owned by the plaintiff. The suits seek an unspecified amount of damages. We are required under our contracts with these airlines to indemnify them for defense costs and any liabilities resulting from the suit. The Court has stayed the suits against our airline customers pending resolution of the suit against Gogo. Linksmart has also filed suit against other defendants asserting the same patent. Following the filing by one of those defendants of a petition to commence an

inter partes

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

inter partes

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

Securities Litigation—

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

10b-5

promulgated thereunder, alleging misrepresentations or omissions by us purporting to relate to our 2Ku antenna’s reliability and installation and remediation costs. The plaintiffs seek to recover from us and the individual defendants an unspecified amount of damages. In December 2018 the plaintiffs filed an amended complaint and in February 2019, we filed a motion to dismiss such amended complaint. In October 2019 the judge granted the motion to dismiss on two independent grounds, finding that plaintiffs failed to plausibly allege that defendants made materially false or misleading statements and that plaintiffs failed to plead with particularity that defendants acted with scienter. The amended complaint was dismissed without prejudice, and in December 2019, defendants filed a second amended complaint. In February 2020 we filed a motion to dismiss such second amended complaint and that motion is pending. We believe that the claims are without merit and intend to continue to defend them vigorously. In accordance with Delaware law, we will indemnify the individual named defendants for their defense costs and any damages they incur in connection with the suit. We have filed a claim with the issuer of our Directors’ and Officers’ insurance policy with respect to this suit. No amounts have been accrued for any potential losses under this matter, as we cannot reasonably predict the outcome of the litigation or any potential losses.

Derivative Litigation—

September 25, 2018 and September 26, 2018, two purported stockholders of the Company filed substantively identical derivative lawsuits in the United States District Court for the Northern District of Illinois, Eastern Division, styled Nanduri v. Gogo Inc. and Hutsenpiller v. Gogo Inc., respectively. Both lawsuits were purportedly brought derivatively on behalf of us and name us as a nominal defendant and name as defendants each member of the Company’s Board of Directors, its former Chief Executive Officer and Chief Financial Officer and its current Chief Executive Officer, Chief Financial Officer and President, Commercial Aviation. The complaints assert claims under Section 14(a) of the Securities Exchange Act of 1934, breach of fiduciary duty, unjust enrichment, and waste of corporate assets, and allege misrepresentations or omissions by us purporting to relate to our 2Ku antenna’s reliability and installation and remediation costs, as well as allegedly excessive bonuses, stock options, and other compensation paid to current Officers and Directors and excessive severance paid to former Officers. The two lawsuits were consolidated and are stayed until a final disposition of the motion to dismiss in the class action suit. We believe that the claims are without merit and intend to defend them vigorously if the litigation resumes. The plaintiffs seek to recover, on our behalf, an unspecified amount of damages from the individual defendants. We have filed a claim with the issuer of our Directors’ and Officers’ insurance policy with respect to these suits. No amounts have been accrued for any potential costs under this matter, as we cannot reasonably predict the outcome of the litigation or any potential costs.

Quarterly Data (Unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Quarterly Data (Unaudited)

17. Quarterly Data (Unaudited)

Summarized quarterly financial information is as follows for each quarterly period for the years ended December 31, 2019 and 2018 (

in thousands, except per share amounts


	For the Three Months Ended
	Mar 31, 2019			June 30, 2019			Sep 30, 2019			Dec 31, 2019
Total revenue	$	199,549		$	213,685		$	201,182		$	221,310
Operating income		11,448			9,666			7,218			8,392
Net loss		(16,799	)		(83,963	)		(22,891	)		(22,351	)
Net loss attributable to common stock		(16,799	)		(83,963	)		(22,891	)		(22,351	)
Net loss attributable to common stock per share—basic and diluted	$	(0.21	)	$	(1.04	)	$	(0.28	)	$	(0.28	)
Weighted average number of shares—basic and diluted		80,446			80,702			80,908			80,997


	For the Three Months Ended
	Mar 31, 2018			June 30, 2018			Sep 30, 2018			Dec 31, 2018
Total revenue	$	231,825		$	227,458		$	217,257		$	217,224
Operating loss		(2,171	)		(7,449	)		(7,610	)		(9,691	)
Net loss		(27,419	)		(37,207	)		(37,717	)		(59,688	)
Net loss attributable to common stock		(27,419	)		(37,207	)		(37,717	)		(59,688	)
Net loss attributable to common stock per share—basic and diluted	$	(0.34	)	$	(0.47	)	$	(0.47	)	$	(0.74	)
Weighted average number of shares—basic and diluted		79,696			79,783			80,196			80,303

Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Financial Information of Registrant

18. 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,
	2019			2018
Assets:
Cash and cash equivalents	$	118,323		$	161,113
Short-term investments		—			39,323
Prepaid expenses and other current assets		164			738
Other non-current assets		2,599			101

Total assets	$	121,086		$	201,275

Liabilities and stockholders’ deficit:
Total current liabilities	$	2,200		$	3,998
Long-term debt		199,849			332,211
Other non-current liabilities		2,340			2,162
Investments and payables with subsidiaries		315,587			131,665

Total liabilities		519,976			470,036
Total stockholders’ deficit		(398,890	)		(268,761	)

Total liabilities and stockholders’ deficit	$	121,086		$	201,275

Gogo Inc.

Condensed Statements of Operations and Comprehensive Loss

(in thousands)


	For the Years Ended December 31,
	2019			2018			2017
Interest income	$	(3,083	)	$	(3,123	)	$	(1,681	)
Interest expense		33,807			36,984			34,577
Loss on extinguishment of debt		9,163			19,653			—
Other		3			—			—

Total other (income) expense		39,890			53,514			32,896

Income (loss) before income taxes		(39,890	)		(53,514	)		(32,896	)
Income tax provision (benefit)		563			(3,354	)		(2,045	)
Equity losses of subsidiaries		105,551			111,871			141,144

Net loss	$	(146,004	)	$	(162,031	)	$	(171,995	)

Comprehensive loss	$	(146,004	)	$	(162,031	)	$	(171,995	)


	For the Years Ended December 31,
	2019			2018			2017
Net loss	$	(146,004	)	$	(162,031	)	$	(171,995	)
Accretion of debt discount		15,276			21,105			19,520
Amortization of deferred financing costs		1,906			1,648			1,484
Loss on extinguishment of debt		9,163			19,653			—
Subsidiary equity losses		105,551			111,871			141,144
Deferred income taxes		178			(3,821	)		(2,281	)
Other operating activities		(1,224	)		(674	)		(609	)

Net cash used in operating activities		(15,154	)		(12,249	)		(12,737	)

Acquisition of short-term investments		—			(39,323	)		(192,893	)
Redemption of short-term investments		39,323			192,893			213,905
Investments and advances with subsidiaries		94,716			(19,595	)		601

Net cash provided by (used in) investing activities		134,039			133,975			21,613

Financing activities:
Proceeds from issuance of convertible notes		—			237,750			—
Repurchase of convertible notes		(159,502	)		(200,438	)		—
Payment of debt issuance costs		—			(8,054	)		—
Other financing activities		325			396			(227	)

Net cash provided by (used in) financing activities		(159,177	)		29,654			(227	)

Increase (decrease) in cash, cash equivalents and restricted cash		(40,292	)		151,380			8,649
Cash, cash equivalents and restricted cash at beginning of period		161,214			9,834			1,185

Cash, cash equivalents and restricted cash at end of period	$	120,922		$	161,214		$	9,834

Cash, cash equivalents and restricted cash at end of period	$	120,922		$	161,214		$	9,834
Less: current restricted cash		—			—			—
Less: non-current restricted cash		2,599			101			100

Cash and cash equivalents at end of period	$	118,323		$	161,113		$	9,734

Subsequent Events

12 Months Ended

Dec. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

19. Subsequent Events

In December 2019, a novel strain of coronavirus, COVID-19, was identified in Wuhan, China which has resulted in global travel restrictions and the suspension of certain commercial flights by some of our airline partners, which has had, and is expected to continue to have, an adverse impact on our CA business. In recent weeks, we have seen significantly reduced demand on aircraft operated in the Asia Pacific region as compared to demand levels in January 2020 before COVID-19 affected travel. More recently, demand for both business and leisure airline travel on a global basis has declined significantly due to COVID-19, and airlines are responding by cancelling additional flights, including domestic U.S. flights. All of our U.S. airline partners have announced international and domestic capacity reductions, and in the week in which this report is being filed, we are seeing for the first time reduced demand on domestic U.S. flights as a result of COVID-19. In addition, on March 11, 2020 the President of the United States announced a 30-day suspension of travel from 26 European countries to the U.S. and similar or other U.S. or foreign governmental actions could further materially impact business and leisure airline travel. We expect COVID-19 to continue to have a significant negative impact on CA revenue and are unable to predict how long that impact will continue. To date, we have not seen any impact of COVID-19 on our BA business. The extent of the impact of COVID-19 on the CA and BA businesses and our financial and operational performance will depend on future developments, including the duration, spread and severity of the outbreak, the duration and geographic scope of related travel advisories and restrictions and the extent of the impact of COVID-19 on overall demand for commercial and business aviation travel, all of which are highly uncertain and cannot be predicted. If our airline partners continue to experience significantly reduced demand for passenger traffic for an extended period, our 2020 consolidated results of operations and our liquidity and financial condition may be materially adversely affected. The extent to which the outbreak affects our earnings and liquidity will depend in part on our ability to implement various measures intended to reduce expenses and/or conserve cash. Earnings in CA-ROW may be particularly affected if reduced demand for travel continues, as we provide service in that segment solely via satellite-based systems and satellite capacity and certain other costs are largely fixed. Further, travel and other restrictions adopted in response to COVID-19 may impact our ability to complete installations on certain aircraft and successfully operate our services on aircraft that operate in regions affected by the coronavirus, particularly where travel is restricted. Additionally, our suppliers or other third parties we rely upon to install and maintain our services may experience delays or shortages, which could have an adverse effect on our business prospects and results of operations.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

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

Use of Estimates—

Reclassifications

—

Significant Risks and Uncertainties

Significant Risks and Uncertainties—

Cash, Cash Equivalents and Short-Term Investments

—

We consider short-term investments to be investments with maturities of twelve months or less (but greater than three months).

Certain cash amounts are restricted as to use and are classified outside of cash and cash equivalents. See Note 7, “Long-term Debt and Other Liabilities,” for further details.

Concentrations of Credit Risk

—

See Note 11, “Business Segments and Major Customers,” for further details.

Income Tax

Income Tax—

See Note 14, “Income Tax,” for further details.

Inventories

—

Historically, inventories were solely related to the BA segment. Starting in 2018, the airborne equipment within our

CA-NA

and

CA-ROW

CA-NA

and

CA-ROW

See Note 5, “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 5, “Composition of Certain Balance Sheet Accounts,” for further details.

Software Development Costs

—

We capitalize costs for network and

non-network

product-by-product

Goodwill and Other Intangible Assets

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		4-10 years

See Note 6, “Intangible Assets,” for further details.

Long-Lived Assets

Long-Lived Assets—

Arrangements with Commercial Airlines

Arrangements with Commercial Airlines—

See Note 15, “Leases,” for further details.

Transition Between Commercial Airline Agreements

—For

CA-NA

and

CA-ROW,

Transition to Turnkey Model

non-current

assets and operating lease

right-of-use

assets in our consolidated balance sheet.

Transition to Airline-Directed Model

non-current

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

non-current

in thousands


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

Revenue Recognition

Revenue Recognition—

We determine revenue recognition through the following steps:

•

Identification of the contract, or contracts, with a customer;

•

Identification of the performance obligations in the contract;

•

Determination of the transaction price;

•

Allocation of the transaction price to the performance obligations in the contract; and

•

Recognition of revenue as we satisfy the performance obligations.

CA-NA

and

CA-ROW

Service Revenue

CA-NA

and

CA-ROW

Airline-directed connectivity revenue

As noted above, under the airline-directed model, the airline is our customer and we earn service revenue as connectivity services are consumed directly by the airline or indirectly by passengers.

Turnkey connectivity revenue (passenger connectivity):

Under the turnkey model, passenger connectivity revenue is generated by services paid for by passengers, airlines and third parties.

Passenger paid revenue represents

point-of-sale

Entertainment revenue:

Entertainment revenue consists of entertainment services we provide to the airline for use by its passengers. Revenue is recognized as the services are provided to the airline.

CAS revenue:

CAS revenue includes, among other things, real-time credit card transaction processing, electronic flight bags and real-time weather information. Revenue is recognized as the service is provided.

BA Service Revenue

BA service revenue primarily consists of monthly subscription and usage fees paid by aircraft owners and operators for telecommunication, data, and

in-flight

entertainment services. Revenue is recognized as the services are provided to the customer.

Equipment Revenue

Equipment revenue primarily consists of the sale of ATG and satellite connectivity equipment and the sale of entertainment equipment.

CA-NA

and

CA-ROW

recognize equipment revenue upon acceptance by our airline customers. BA primarily recognizes equipment revenue when the equipment is shipped to OEMs and dealers.

Equipment revenue also includes revenue generated by the installation of the connectivity or entertainment equipment on commercial aircraft, which is recognized when the installation is complete.

Contract price and allocation considerations

Our

CA-NA

and

CA-ROW

pay-per-use

A significant change in one or more of these estimates could affect our estimated contract value, and we regularly review and update our estimates and recognize adjustments under the cumulative

catch-up

method. Any adjustment under this method is recorded as a cumulative adjustment in the period identified and revenue for future periods is recognized using the new adjusted estimate.

Research and Development Costs

Research and Development Costs—

Warranty

Warranty—

See Note 5, “Composition of Certain Balance Sheet Accounts,” for the details of the changes in our warranty reserve.

Asset Retirement Obligations

Asset Retirement Obligations—

See Note 5, “Composition of Certain Balance Sheet Accounts,” for the details of the changes in our asset retirement obligations.

Fair Value of Financial Instruments

Fair Value of Financial Instruments—

See Note 10, “Fair Value of Financial Assets and Liabilities,” for further information.

Derivatives

Derivatives—

Derivatives and Hedging

See Note 7, “Long-Term Debt and Other Liabilities,” Note 9, “Common Stock and Preferred Stock,” and Note 10, “Fair Value of Financial Assets and Liabilities,” for further information.

Convertible Notes

–

paid-in

See Note 7, “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

Stock-Based Compensation Expense—

See Note 12, “Stock-Based Compensation,” for further information.

Leases

—

In addition to arrangements with commercial airlines which we account for as operating leases as noted above, we have operating lease agreements for which we have recorded lease liabilities and

right-of-use

asset

using

our incremental borrowing rate. Our cell site leases generally range in terms of five to ten years, with renewal options for an additional five to 25 years.

For certain cell sites, the renewal options are deemed to be reasonably certain to be exercised.

See Note 15, “Leases,” for further information.

Advertising Costs

Advertising Costs—

Costs for advertising are expensed as incurred.

Debt Issuance Costs

Debt Issuance Costs—

See Note 7, “Long-Term Debt and Other Liabilities” for further information.

Comprehensive Loss

Comprehensive Loss—

Comprehensive loss for the years ended December 31, 2019, 2018 and 2017 is net loss plus unrealized gains and losses on foreign currency translation adjustments.

Recently Issued Accounting Pronouncements

Accounting standards adopted:

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

Leases

non-lease

components.

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

right-of-use

in thousands)


	Balance at						Balances with
	December 31,			Impact of			Adoption of
	2018			ASC 842			ASC 842
Assets
Operating lease right-of-use assets	$	—		$	72,188		$	72,188
Liabilities
Accrued liabilities		213,111			9,019			222,130
Non-current operating lease liabilities		—			102,440			102,440
Other non-current liabilities		80,191			(36,178	)		44,013
Equity
Accumulated deficit		(1,228,674	)		(3,093	)		(1,231,767	)

See Note 15, “Leases,” for additional information.

On January 1, 2019, we adopted ASU

2018-02,

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

(“ASU

2018-02”),

On January 1, 2019, we adopted ASU

2018-07,

Improvements to Nonemployee Share-Based Payment Accounting

(“ASU

2018-07”),

which expands the scope of ASC 718,

Compensation – Stock Compensation

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

On January 1, 2018, we adopted Accounting Standards Codification Topic 606,

Revenue From Contracts With Customers

Prior to the adoption of ASC 606, equipment revenue (and related cost) under some of our

CA-NA

and

CA-ROW

In conjunction with the adoption of ASC 606, we also adopted Accounting Standard Codification Subtopic

340-40,

Other Assets and Deferred Costs – Contracts with Customers

(“ASC

340-40”),

which requires the capitalization of costs incurred to obtain or fulfill a contract with a customer. Prior to the adoption of ASC

340-40,

340-40

and will continue to be expensed as incurred.

The cumulative effect of the adoption of ASC 606 and ASC

340-40

to our consolidated balance sheet as of January 1, 2018 was as follows (

in thousands)


							Balances
	Balance at						with
	December 31,			Impact of			Adoption of
	2017			ASC 606			ASC 606
Assets
Inventories	$	45,543		$	974		$	46,517
Prepaid expenses and other current assets		20,310			603			20,913
Property and equipment, net		656,038			(4,405	)		651,633
Other non-current assets		67,107			(30,006	)		37,101
Liabilities
Current deferred revenue		43,448			(7,182	)		36,266
Other non-current liabilities		134,655			(48,378	)		86,277
Equity
Accumulated deficit		(1,089,369	)		22,726			(1,066,643	)

All other new pronouncements:

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update

No. 2019-12

–

Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes

(“ASU

2019-12”),

as part of its initiative to reduce complexity in the accounting standards. The amendments in ASU

2019-12

eliminate certain exceptions to the incremental approach for intraperiod tax allocation and interim period income tax accounting for

year-to-date

losses that exceed projected losses. ASU

2019-12

In June 2016, the FASB issued Accounting Standards Update

No. 2016-13,

Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

(“ASU

2016-13”),

which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU

2016-13

available-for-sale

2016-13.

In August 2018, the FASB issued Accounting Standards Update

No. 2018-15,

Intangibles – Goodwill and Other –

Internal-Use

Software (Subtopic

350-40):

Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract

(“ASU

2018-15”),

which requires an entity in a hosting arrangement that is a service contract to follow the guidance in Subtopic

350-40

In August 2018, the FASB issued Accounting Standards Update

No. 2018-13,

Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement

(“ASU

2018-13”).

ASU

2018-13

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

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		4-10 years

Summary of Financial Effects Due to Transition of Agreements

the total financial statement effect on our consolidated balance sheet and consolidated statement of operations was as follows (

in thousands


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

Summary of Adoption Impact of ASC 842 on Unaudited Condensed Consolidated Balance Sheet


	Balance at						Balances with
	December 31,			Impact of			Adoption of
	2018			ASC 842			ASC 842
Assets
Operating lease right-of-use assets	$	—		$	72,188		$	72,188
Liabilities
Accrued liabilities		213,111			9,019			222,130
Non-current operating lease liabilities		—			102,440			102,440
Other non-current liabilities		80,191			(36,178	)		44,013
Equity
Accumulated deficit		(1,228,674	)		(3,093	)		(1,231,767	)

Summary of Cumulative Effect of Adoption on Consolidated Balance Sheets

The cumulative effect of the adoption of ASC 606 and ASC

340-40

to our consolidated balance sheet as of January 1, 2018 was as follows (

in thousands)


							Balances
	Balance at						with
	December 31,			Impact of			Adoption of
	2017			ASC 606			ASC 606
Assets
Inventories	$	45,543		$	974		$	46,517
Prepaid expenses and other current assets		20,310			603			20,913
Property and equipment, net		656,038			(4,405	)		651,633
Other non-current assets		67,107			(30,006	)		37,101
Liabilities
Current deferred revenue		43,448			(7,182	)		36,266
Other non-current liabilities		134,655			(48,378	)		86,277
Equity
Accumulated deficit		(1,089,369	)		22,726			(1,066,643	)

Net Loss Per Share (Tables)

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

in thousands, except per share amounts


	For the Years Ended December 31,
	2019			2018			2017
Net loss	$	(146,004	)	$	(162,031	)	$	(171,995	)
Less: Participation rights of the Forward Transactions		—			—			—

Undistributed losses	$	(146,004	)	$	(162,031	)	$	(171,995	)

Weighted-average common shares outstanding-basic and diluted		80,766			80,038			79,407

Net loss attributable to common stock per share-basic and diluted	$	(1.81	)	$	(2.02	)	$	(2.17	)

Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Revenue Disaggregated by Category

The following table presents our revenue disaggregated by category

(in thousands)


	For the Year Ended
	December 31, 2019
	CA-NA		CA-ROW		BA		Total
Service revenue
Connectivity	$	322,783	$	84,419	$	219,450	$	626,652
Entertainment, CAS and other		31,583		3,646		2,472		37,701

Total service revenue	$	354,366	$	88,065	$	221,922	$	664,353

Equipment revenue
ATG	$	15,973	$	—	$	62,899	$	78,872
Satellite		6,340		60,657		21,755		88,752
Other		1,340		—		2,409		3,749

Total equipment revenue	$	23,653	$	60,657	$	87,063	$	171,373

Customer type
Airline passenger and aircraft owner/operator	$	203,376	$	27,581	$	221,922	$	452,879
Airline, OEM and aftermarket dealer		129,844		113,254		87,063		330,161
Third party		44,799		7,887		—		52,686

Total revenue	$	378,019	$	148,722	$	308,985	$	835,726


	For the Year Ended
	December 31, 2018
	CA-NA		CA-ROW		BA		Total
Service revenue
Connectivity	$	339,791	$	63,955	$	195,022	$	598,768
Entertainment, CAS and other		27,577		2,447		1,355		31,379

Total service revenue	$	367,368	$	66,402	$	196,377	$	630,147

Equipment revenue
ATG (1)	$	53,410	$	—	$	72,159	$	125,569
Satellite (1)		48,439		67,992		18,165		134,596
Other		—		—		3,452		3,452

Total equipment revenue	$	101,849	$	67,992	$	93,776	$	263,617

Customer type
Airline passenger and aircraft owner/operator	$	216,466	$	21,738	$	196,377	$	434,581
Airline, OEM and aftermarket dealer (2)		196,106		105,026		93,776		394,908
Third party		56,645		7,630		—		64,275

Total revenue	$	469,217	$	134,394	$	290,153	$	893,764

(1)

ATG and satellite equipment revenue for the

CA-NA

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

Composition of Certain Balance Sheet Accounts (Tables)

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Components of Inventories

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

in thousands


	December 31,
	2019		2018
Work-in-process component parts	$	23,141	$	30,340
Finished goods (1)		94,003		162,705

Total inventory	$	117,144	$	193,045

(1)	The change between December 31, 2019 and December 31, 2018 includes the $46.8 million accounting impact of one of our airline partner agreements transitioning to the turnkey model in January 2019 (see Note 2, “Summary of Significant Accounting Policies,” for additional information).

Schedule of Prepaid Expenses and Other Current Assets

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

in thousands


	December 31,
	2019		2018
Contract assets	$	12,364	$	10,423
Prepaid satellite services		11,299		7,755
Restricted cash		560		1,535
Other		12,082		14,982

Total prepaid expenses and other current assets	$	36,305	$	34,695

Property and Equipment

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

in thousands


	December 31,
	2019			2018
Office equipment, furniture, fixtures and other	$	56,205		$	52,320
Leasehold improvements		44,389			44,838
Airborne equipment (1)		737,593			642,151
Network equipment		229,451			205,463

		1,067,638			944,772
Accumulated depreciation		(507,320	)		(432,905	)

Property and equipment, net	$	560,318		$	511,867

(1)	The change between December 31, 2019 and December 31, 2018 includes the $46.8 million accounting impact of one of our airline partner agreements transitioning to the turnkey model in January 2019 (see Note 2, “Summary of Significant Accounting Policies,” for additional information).

Schedule of Other Non-Current Assets

Other

non-current

assets as of December 31, 2019 and 2018 consist of the following (

in thousands


	December 31,
	2019		2018
Contract assets	$	51,829	$	49,517
Deferred STC costs		17,453		16,453
Restricted cash		7,099		5,426
Other		13,291		12,816

Total other non-current assets	$	89,672	$	84,212

Accrued Liabilities

Accrued liabilities as of December 31, 2019 and 2018 consist of the following (

in thousands


	December 31,
	2019		2018
Airline-related accrued liabilities, including revenue share	$	43,592	$	53,527
Accrued interest		17,048		46,694
Employee compensation and benefits		29,954		19,463
Airborne equipment and installation costs		11,466		25,119
Accrued satellite network costs		13,843		19,557
Warranty reserve		13,165		12,291
Operating leases (1)		12,241		—
Other		32,802		36,460

Total accrued liabilities	$	174,111	$	213,111

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

Other Non-Current Liabilities

Other

non-current

liabilities as of December 31, 2019 and 2018 consist of the following (

in thousands


	December 31,
	2019		2018
Deferred revenue	$	21,889	$	21,482
Deferred rent (1)		—		35,897
Asset retirement obligations		11,560		9,696
Deferred tax liabilities		2,340		2,162
Other		10,704		10,954

Total other non-current liabilities	$	46,493	$	80,191

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

Schedule of Changes in Warranty Reserves

Changes in our warranty reserve, which is included in accrued liabilities, for the years ended December 31, 2019 and 2018 consist of the following (

in thousands


	Warranty
	Reserve
Balance—January 1, 2018	$	2,424
Accruals for warranties issued		10,172
Settlements of warranties		(305	)

Balance—December 31, 2018		12,291
Accruals for warranties issued		8,754
Settlements and adjustments to warranties (1)		(7,880	)

Balance—December 31, 2019	$	13,165

(1)	Includes the impact of airline partner agreements transitioning to the turnkey model in 2019 (see Note 2, “Summary of Significant Accounting Policies,” for additional information).

Schedule of Changes in Non Current Asset Retirement Obligation

Changes in our

non-current

asset retirement obligations for the years ended December 31, 2019 and 2018 consist of the following (

in thousands


	Asset
	Retirement
	Obligation
Balance—January 1, 2018	$	9,668
Liabilities incurred (1)		(760	)
Liabilities settled		(192	)
Accretion expense		1,035
Foreign exchange rate adjustments		(55	)

Balance—December 31, 2018		9,696
Liabilities incurred		1,095
Liabilities settled		(39	)
Accretion expense		848
Foreign exchange rate adjustments		(40	)

Balance—December 31, 2019	$	11,560

(1)	Includes $0.8 million related to a change in estimate in the expected cash flows for our estimated liabilities.

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets, Other than Goodwill

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

in thousands, except for weighted average remaining useful life


	Weighted		As of December 31, 2019							As of December 31, 2018
	Avera ge 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		2.6	$	177,190	$	(135,154	)	$	42,036	$	164,580	$	(116,873	)	$	47,707
Other intangible assets		7.8		3,000		(1,440	)		1,560		3,000		(1,396	)		1,604
Service customer relationships				8,081		(8,081	)		—		8,081		(6,804	)		1,277
OEM and dealer relationships				6,724		(6,724	)		—		6,724		(6,724	)		—

Total amortized intangible assets				194,995		(151,399	)		43,596		182,385		(131,797	)		50,588

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

Total intangible assets			$	227,278	$	(151,399	)	$	75,879	$	214,668	$	(131,797	)	$	82,871

Summary of Amortization Expenses

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

in thousands


	Amortization
Years ending December 31,	Expense
2020	$	18,092
2021	$	13,820
2022	$	9,165
2023	$	1,411
2024	$	343
Thereafter	$	765

Long-Term Debt and Other Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

Long-term debt as of December 31, 2019 and 2018

was as follows (

in thousands


	December 31,			December 31,
	2019			2018
2024 Senior Secured Notes	$	921,137		$	—
2022 Senior Secured Notes		—			702,670
2022 Convertible Notes		201,868			190,083
2020 Convertible Notes		2,498			149,195

Total debt		1,125,503			1,041,948
Less deferred financing costs		(24,255	)		(17,055	)

Total long-term debt	$	1,101,248		$	1,024,893

Summary of Redemption Prices Plus Accrued and Unpaid Interest

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


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

- Definition

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

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
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Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 835
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-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-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 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Interest Costs (Tables)

12 Months Ended

Dec. 31, 2019

Text Block [Abstract]

Summary of Interest Costs

The following is a summary of our interest costs for the years ended December 31, 2019, 2018 and 2017

(in thousands)


	For the Years Ended December 31,
	2019			2018			2017
Interest costs charged to expense	$	110,601		$	100,274		$	89,915
Amortization of deferred financing costs		5,260			4,280			3,743
Accretion of debt discount		15,729			21,105			19,520
Amortization of debt premium		(1,018	)		(2,850	)		(1,234	)

Interest expense		130,572			122,809			111,944
Interest costs capitalized to property and equipment		11			32			26
Interest costs capitalized to software		608			364			1,075

Total interest costs	$	131,191		$	123,205		$	113,045

Fair Value of Financial Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

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

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

(in thousands)


	December 31, 2019					December 31, 2018
	Fair Value (1)		Carrying Value			Fair Value (1)		Carrying Value
2024 Senior Secured Notes	$	982,000	$	921,137	(2)	$	—	$	—
2022 Senior Secured Notes		—		—			737,000		702,670	(3)
2022 Convertible Notes		297,000		201,868	(4)		216,000		190,083	(4)
2020 Convertible Notes		2,498		2,498			150,000		149,195	(5)

(1)	Fair value amounts are rounded to the nearest million, except for the 2020 Convertible Notes as of December 31, 2019.

(2)	Carrying value of the 2024 Senior Secured Notes reflects the unaccreted debt discount of $3.9 million as of December 31, 2019. See Note 7, “Long-Term Debt and Other Liabilities,” for further information.

(3)	Carrying value of the 2022 Senior Secured Notes reflects the unamortized debt premium and consent fees of $12.7 million as of December 31, 2018. See Note 7, “Long-Term Debt and Other Liabilities,” for further information.

(4)	Carrying value of the 2022 Convertible Notes reflects the unaccreted debt discount of $35.9 million and $47.7 million, respectively, as of December 31, 2019 and 2018. See Note 7, “Long-Term Debt and Other Liabilities,” for further information.

(5)	Carrying value of the 2020 Convertible Notes reflects the unaccreted debt discount of $12.8 million as of December 31, 2018. See Note 7, “Long-Term Debt and Other Liabilities,” for further information.

Business Segments and Major Customers (Tables)

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Summary of Reportable Segments

Information regarding our reportable segments is as follows (

in thousands


	For the Year Ended December 31, 2019
	CA-NA		CA-ROW			BA		Total
Service revenue	$	354,366	$	88,065		$	221,922	$	664,353
Equipment revenue		23,653		60,657			87,063		171,373

Total revenue	$	378,019	$	148,722		$	308,985	$	835,726

Reportable segment profit (loss)	$	97,920	$	(62,314	)	$	143,966	$	179,572


	For the Year Ended December 31, 2018
	CA-NA		CA-ROW			BA		Total
Service revenue	$	367,368	$	66,402		$	196,377	$	630,147
Equipment revenue (1)		101,849		67,992			93,776		263,617

Total revenue	$	469,217	$	134,394		$	290,153	$	893,764

Reportable segment profit (loss)	$	62,286	$	(90,779	)	$	140,198	$	111,705


	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

Reportable segment profit (loss)	$	100,754	$	(102,482	)	$	99,513	$	97,785

(1)	CA-NA equipment revenue for the year ended December 31, 2018 includes the accounting impact of the transition of one of our airline partners to the airline-directed model. See Note 2, “Summary of Significant Accounting Policies,” for additional information.

Reconciliation of Segment Profit (loss)

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

in thousands


	For the Years Ended December 31,
	2019			2018			2017
CA-NA segment profit	$	97,920		$	62,286		$	100,754
CA-ROW segment loss		(62,314	)		(90,779	)		(102,482	)
BA segment profit		143,966			140,198			99,513

Total reportable segment profit		179,572			111,705			97,785
Unallocated corporate costs (1)		(33,365	)		(40,275	)		(38,552	)
Interest income		4,210			4,292			2,964
Interest expense		(130,572	)		(122,809	)		(111,944	)
Depreciation and amortization		(118,817	)		(133,617	)		(145,490	)
Transition to airline-directed model		—			21,551			—
Amortization of deferred airborne lease incentives		28,551			31,650			41,816
Amortization of STC costs		(2,706	)		(1,023	)		—
Stock-based compensation expense		(16,511	)		(16,912	)		(19,821	)
Loss on extinguishment of debt		(57,962	)		(19,653	)		—
Other income (expense)		2,602			(233	)		(750	)

Loss before income taxes	$	(144,998	)	$	(165,324	)	$	(173,992	)

(1)

expense

for

those functions

of $6.1 million, $5.9 million and $7.3

million, respectively, for the years ending December 31, 2019, 2018 and 2017.

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

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, 2019, 2018 and 2017

(in thousands)


	2019		2018		2017
Cost of service revenue	$	1,615	$	1,659	$	1,748
Cost of equipment revenue		275		210		185
Engineering, design and development		2,999		3,347		3,656
Sales and marketing		3,377		4,267		4,751
General and administrative		8,245		7,429		9,481

Total stock-based compensation expense	$	16,511	$	16,912	$	19,821

Summary of Stock Options Activity

A summary of stock option activity for the year ended December 31, 2019 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, 2019		10,714,158		$	12.81		6.25	$	—
Granted		1,525,880		$	4.69
Exercised		(3,338	)	$	5.01
Forfeited		(555,605	)	$	9.45
Expired		(606,591	)	$	15.78

Options outstanding – December 31, 2019		11,074,504		$	11.70		5.25	$	3,050

Options exercisable – December 31, 2019		7,393,469		$	13.34		3.82	$	780

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


	2019			2018			2017
Approximate risk-free interest rate		2.3	%		2.7	%		2.3	%
Average expected life (years)		6.02			6.03			6.14
Dividend yield		N/A			N/A			N/A
Volatility		60.5	%		49.2	%		45.3	%
Weighted average grant date fair value of common stock underlying options granted	$	4.71		$	8.97		$	11.97
Weighted average grant date fair value of stock options granted	$	2.69		$	4.42		$	5.59

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, 2019:


	Number of Underlying Shares			Weighted Average Grant Date Fair Value
Unvested – January 1, 2019		3,223,980		$	6.51
Granted		2,219,248		$	4.73
Vested		(692,693	)	$	9.20
Forfeited/canceled		(567,303	)	$	5.94

Unvested – December 31, 2019		4,183,232		$	5.18

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, 2019:


	Number of Underlying Shares			Weighted Average Grant Date Fair Value
Unvested – January 1, 2019		118,053		$	12.38
Granted		—		$	—
Vested		(66,174	)	$	11.95
Forfeited/canceled		(7,675	)	$	2.99

Unvested – December 31, 2019		44,204		$	11.63

Income Tax (Tables)

12 Months Ended

Dec. 31, 2019

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, 2019, 2018, and 2017 (

in thousands


	For the Years Ended December 31,
	2019			2018			2017
United States	$	(131,220	)	$	(128,361	)	$	(138,881	)
Foreign		(13,778	)		(36,963	)		(35,111	)

Loss before income taxes	$	(144,998	)	$	(165,324	)	$	(173,992	)

Components of (Benefit) Provision for Income Taxes

Significant components of the (benefit) provision for income taxes for the years ended December 31, 2019, 2018, and 2017 are as follows (

in thousands


	For the Years Ended December 31,
	2019		2018			2017
Current:
Federal	$	—	$	—		$	—
State		385		467			235
Foreign		444		61			49

		829		528			284

Deferred:
Federal		91		(3,908	)		(2,590	)
State		86		87			309

		177		(3,821	)		(2,281	)

Total	$	1,006	$	(3,293	)	$	(1,997	)

Income Tax Computed at Federal Statutory Tax Rates


	For the Years Ended December 31,
	2019			2018			2017
Federal statutory rate		21.0	%		21.0	%		35.0	%
Effect of:
Impact of change in tax rate		(0.1	)		0.1			(47.0	)
Change in valuation allowance		(22.7	)		(24.8	)		12.5
State income taxes-net of federal tax benefit		4.2			4.0			2.4
Other		(3.1	)		1.7			(1.8	)

Effective tax rate		(0.7	)%		2.0	%		1.1	%

Components of Deferred Income Tax Assets and Liabilities

Components of the net deferred income tax asset as of December 31, 2019 and 2018 are as follows (

in thousands


	December 31,			December 31,
	2019			2018
Deferred income tax assets:
Compensation accruals	$	5,847		$	3,407
Stock options		18,192			15,552
Inventory		1,266			1,102
Warranty reserves		913			1,014
Deferred rent		—			9,603
Deferred revenue		43,256			37,501
Federal net operating loss (NOL)		141,803			143,433
State NOL		24,744			24,623
Interest carryforward		48,980			22,029
UN I CAP adjustment		2,539			2,311
Finite-lived intangible assets		6,394			7,576
Lease liability		22,355			—
Other		9,243			11,576

Total deferred income tax assets		325,532			279,727

Deferred income tax liabilities:
Fixed assets		(59,584	)		(53,944	)
Indefinite-lived intangible assets		(7,074	)		(6,528	)
Convertible Notes discount		(8,706	)		(14,612	)
Right-of-use asset		(13,553	)		—
Other		(3,768	)		(2,272	)

Total deferred income tax liabilities		(92,685	)		(77,356	)

Total deferred income tax		232,847			202,371
Valuation allowance		(235,187	)		(204,533	)

Net deferred income tax liability	$	(2,340	)	$	(2,162	)

Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Lease expense included in the unaudited condensed consolidated statements of operations

The following is a summary of our lease expense included in the consolidated statement of operations

(in thousands)


	For the Year Ended
	December 31, 2019
Operating lease cost	$	19,437
Financing lease cost
Amortization of leased assets		666
Interest on lease liabilities		57

Total lease cost	$	20,160

Schedule Includes Other information About Leases

Other information regarding our leases is as follows

(in thousands, except lease terms and discount rates)


	For the Year Ended
	December 31, 2019
Supplemental cash flow information
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows used in operating leases	$	23,202
Operating cash flows used in financing leases		57
Financing cash flows used in financing leases		713
Non-cash items:
Operating leases obtained		15,588
Modifications to operating leases		(20,027	)
Finance leases obtained		1,326
Weighted average remaining lease term
Operating leases		8 years
Financing leases		3 years
Weighted average discount rate
Operating leases		9.44	%
Financing leases		8.28	%

Annual future minimum lease payments

Annual future minimum lease payments as of December 31, 2019

(in thousands)


	Operating			Financing
Years ending December 31,	Leases			Leases
2020	$	19,930		$	761
2021		18,760			555
2022		17,145			473
2023		13,246			—
2024		9,571			—
Thereafter		53,913			—

Total future minimum lease payments		132,565			1,789
Less: Amount representing interest		(42,516	)		(157	)

Present value of net minimum lease payments	$	90,049		$	1,632

Reported as of December 31, 2019
Accrued liabilities	$	12,241		$	620
Non-current operating lease liabilities		77,808			—
Other non-current liabilities		—			1,012

Total lease liabilities	$	90,049		$	1,632

Quarterly Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

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, 2019 and 2018 (

in thousands, except per share amounts


	For the Three Months Ended
	Mar 31, 2019			June 30, 2019			Sep 30, 2019			Dec 31, 2019
Total revenue	$	199,549		$	213,685		$	201,182		$	221,310
Operating income		11,448			9,666			7,218			8,392
Net loss		(16,799	)		(83,963	)		(22,891	)		(22,351	)
Net loss attributable to common stock		(16,799	)		(83,963	)		(22,891	)		(22,351	)
Net loss attributable to common stock per share—basic and diluted	$	(0.21	)	$	(1.04	)	$	(0.28	)	$	(0.28	)
Weighted average number of shares—basic and diluted		80,446			80,702			80,908			80,997


	For the Three Months Ended
	Mar 31, 2018			June 30, 2018			Sep 30, 2018			Dec 31, 2018
Total revenue	$	231,825		$	227,458		$	217,257		$	217,224
Operating loss		(2,171	)		(7,449	)		(7,610	)		(9,691	)
Net loss		(27,419	)		(37,207	)		(37,717	)		(59,688	)
Net loss attributable to common stock		(27,419	)		(37,207	)		(37,717	)		(59,688	)
Net loss attributable to common stock per share—basic and diluted	$	(0.34	)	$	(0.47	)	$	(0.47	)	$	(0.74	)
Weighted average number of shares—basic and diluted		79,696			79,783			80,196			80,303

Condensed Financial Information of Registrant (Tables)

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Balance Sheets

Gogo Inc.

Condensed Balance Sheets

(in thousands)


	December 31,			December 31,
	2019			2018
Assets:
Cash and cash equivalents	$	118,323		$	161,113
Short-term investments		—			39,323
Prepaid expenses and other current assets		164			738
Other non-current assets		2,599			101

Total assets	$	121,086		$	201,275

Liabilities and stockholders’ deficit:
Total current liabilities	$	2,200		$	3,998
Long-term debt		199,849			332,211
Other non-current liabilities		2,340			2,162
Investments and payables with subsidiaries		315,587			131,665

Total liabilities		519,976			470,036
Total stockholders’ deficit		(398,890	)		(268,761	)

Total liabilities and stockholders’ deficit	$	121,086		$	201,275

Condensed Statements of Operations and Comprehensive Loss

Gogo Inc.

Condensed Statements of Operations and Comprehensive Loss

(in thousands)


	For the Years Ended December 31,
	2019			2018			2017
Interest income	$	(3,083	)	$	(3,123	)	$	(1,681	)
Interest expense		33,807			36,984			34,577
Loss on extinguishment of debt		9,163			19,653			—
Other		3			—			—

Total other (income) expense		39,890			53,514			32,896

Income (loss) before income taxes		(39,890	)		(53,514	)		(32,896	)
Income tax provision (benefit)		563			(3,354	)		(2,045	)
Equity losses of subsidiaries		105,551			111,871			141,144

Net loss	$	(146,004	)	$	(162,031	)	$	(171,995	)

Comprehensive loss	$	(146,004	)	$	(162,031	)	$	(171,995	)

Condensed Statements of Cash Flows


	For the Years Ended December 31,
	2019			2018			2017
Net loss	$	(146,004	)	$	(162,031	)	$	(171,995	)
Accretion of debt discount		15,276			21,105			19,520
Amortization of deferred financing costs		1,906			1,648			1,484
Loss on extinguishment of debt		9,163			19,653			—
Subsidiary equity losses		105,551			111,871			141,144
Deferred income taxes		178			(3,821	)		(2,281	)
Other operating activities		(1,224	)		(674	)		(609	)

Net cash used in operating activities		(15,154	)		(12,249	)		(12,737	)

Acquisition of short-term investments		—			(39,323	)		(192,893	)
Redemption of short-term investments		39,323			192,893			213,905
Investments and advances with subsidiaries		94,716			(19,595	)		601

Net cash provided by (used in) investing activities		134,039			133,975			21,613

Financing activities:
Proceeds from issuance of convertible notes		—			237,750			—
Repurchase of convertible notes		(159,502	)		(200,438	)		—
Payment of debt issuance costs		—			(8,054	)		—
Other financing activities		325			396			(227	)

Net cash provided by (used in) financing activities		(159,177	)		29,654			(227	)

Increase (decrease) in cash, cash equivalents and restricted cash		(40,292	)		151,380			8,649
Cash, cash equivalents and restricted cash at beginning of period		161,214			9,834			1,185

Cash, cash equivalents and restricted cash at end of period	$	120,922		$	161,214		$	9,834

Cash, cash equivalents and restricted cash at end of period	$	120,922		$	161,214		$	9,834
Less: current restricted cash		—			—			—
Less: non-current restricted cash		2,599			101			100

Cash and cash equivalents at end of period	$	118,323		$	161,113		$	9,734

Background - Additional Information (Detail)	12 Months Ended
Background - Additional Information (Detail)	Dec. 31, 2019 Segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	3

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) shares in Millions				1 Months Ended	12 Months Ended
	Dec. 11, 2019	Mar. 03, 2015	Mar. 03, 2015	Mar. 31, 2015	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2019
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Depreciation expense					$ 99,200,000	$ 107,100,000	$ 120,600,000
Impairment charges					0	0	0
Impairments of long-lived assets					0	0	0
Research and development expense					$ 71,500,000	$ 72,700,000	$ 78,100,000
Forward stock repurchase transaction, shares					7.2	7.2	7.2
Forward stock repurchase transactions amount		$ 140,000,000	$ 140,000,000
Property and equipment, net					$ 560,318,000	$ 511,867,000	$ 656,038,000
Accrued Liabilities					$ 174,111,000	213,111,000
Current Financing Lease Liabilities [Member] \| Previously Reported [Member]
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Accrued Liabilities						$ 652,000
Air Line Inventory [Member]
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Property and equipment, net								$ 46,800,000
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. 13, 2020
2022 Convertible Notes [Member]
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Forward stock repurchase transaction, shares	2.1
Forward stock repurchase transaction, settlement date	May 15, 2022
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					10 years
Cell Site [Member] \| Minimum [Member]
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Lease term					5 years
Option to renewal lease term					5 years
Cell Site [Member] \| Maximum [Member]
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Lease term					10 years
Option to renewal lease term					25 years
Building [Member] \| Minimum [Member]
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Lease term					1 year
Option to renewal lease term					1 year
Building [Member] \| Maximum [Member]
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Lease term					10 years
Option to renewal lease term					5 years

Summary of Significant Accounting Policies - Depreciation of Property and Equipment Estimated Useful Lives (Detail)	12 Months Ended
	Dec. 31, 2019
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, 2019
Software [Member]
Finite-Lived Intangible Assets [Line Items]
Finite lived intangible asset useful life	2 years 7 months 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] \| 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	7 years 9 months 18 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	10 years

Summary of Significant Accounting Policies - Summary of Financial Effects Due to Transition of Agreements (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Prepaid expense and other current assets	$ 36,305				$ 34,695				$ 36,305	$ 34,695	$ 20,310
Property and equipment, net	(560,318)				(511,867)				(560,318)	(511,867)	(656,038)
Other non-current assets	89,672				84,212				89,672	84,212	67,107
Accrued liabilities	174,111				213,111				174,111	213,111
Current deferred airborne lease incentive	26,582				24,145				26,582	24,145
Non-current deferred airborne lease incentive	135,399				129,086				135,399	129,086
Equipment revenue	221,310	$ 201,182	$ 213,685	$ 199,549	$ 217,224	$ 217,257	$ 227,458	$ 231,825	835,726	893,764	699,090
Cost of equipment revenue									134,728	$ 222,244	$ 58,554
Transition Agreements To Airline-directed Model [Member]
Prepaid expense and other current assets	6,603								6,603
Property and equipment, net	(32,716)								(32,716)
Other non-current assets	18,783								18,783
Accrued liabilities	2,000								2,000
Current deferred airborne lease incentive	(13,592)								(13,592)
Non-current deferred airborne lease incentive	$ (17,289)								(17,289)
Equipment revenue									45,396
Cost of equipment revenue									$ 23,845

Summary of Significant Accounting Policies - Summary of Adoption Impact of ASC 842 on Unaudited Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets
Operating lease right-of-use assets	$ 63,386
Liabilities
Accrued liabilities	174,111		$ 213,111
Non-current operating lease liabilities	77,808
Other non-current liabilities	46,493		80,191	$ 134,655
Equity
Accumulated deficit	(1,376,142)		$ (1,228,674)	$ (1,089,369)
Accounting Standards Update 2016-02 [Member]
Assets
Operating lease right-of-use assets		$ 72,188
Liabilities
Accrued liabilities		222,130
Non-current operating lease liabilities		102,440
Other non-current liabilities		44,013
Equity
Accumulated deficit		$ (1,231,767)
Difference between Guidance in Effect Before and after Topic 606 and ASC 34040 [Member] \| Accounting Standards Update 2016-02 [Member]
Assets
Operating lease right-of-use assets	72,188
Liabilities
Accrued liabilities	9,019
Non-current operating lease liabilities	102,440
Other non-current liabilities	(36,178)
Equity
Accumulated deficit	$ (3,093)

Summary of Significant Accounting Policies - Summary of Cumulative Effect of Adoption on Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets
Inventories	$ 117,144	$ 193,045	$ 45,543
Prepaid expenses and other current assets	36,305	34,695	20,310
Property and equipment, net	560,318	511,867	656,038
Other non-current assets	89,672	84,212	67,107
Liabilities
Current deferred revenue	34,789	38,571	43,448
Other non-current liabilities	46,493	80,191	134,655
Equity
Accumulated deficit	$ (1,376,142)	$ (1,228,674)	(1,089,369)
Accounting Standards Update 2014-09 And 340-40 [Member]
Assets
Inventories			46,517
Prepaid expenses and other current assets			20,913
Property and equipment, net			651,633
Other non-current assets			37,101
Liabilities
Current deferred revenue			36,266
Other non-current liabilities			86,277
Equity
Accumulated deficit			(1,066,643)
Accounting Standards Update 2014-09 And 340-40 [Member] \| Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
Assets
Inventories			974
Prepaid expenses and other current assets			603
Property and equipment, net			(4,405)
Other non-current assets			(30,006)
Liabilities
Current deferred revenue			(7,182)
Other non-current liabilities			(48,378)
Equity
Accumulated deficit			$ 22,726

Net Loss Per Share - Additional Information (Detail) - shares shares in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share [Abstract]
Forward stock repurchase transaction shares, excluded from dilution effect	7.2	7.2	7.2

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, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share [Abstract]
Net loss	$ (22,351)	$ (22,891)	$ (83,963)	$ (16,799)	$ (59,688)	$ (37,717)	$ (37,207)	$ (27,419)	$ (146,004)	$ (162,031)	$ (171,995)
Less: Participation rights of the Forward Transactions										0
Undistributed losses	$ (22,351)	$ (22,891)	$ (83,963)	$ (16,799)	$ (59,688)	$ (37,717)	$ (37,207)	$ (27,419)	$ (146,004)	$ (162,031)	$ (171,995)
Weighted-average common shares outstanding-basic and diluted	80,997	80,908	80,702	80,446	80,303	80,196	79,783	79,696	80,766	80,038	79,407
Net loss attributable to common stock per share-basic and diluted	$ (280)	$ (280)	$ (1,040)	$ (210)	$ (740)	$ (470)	$ (470)	$ (340)	$ (1.81)	$ (2.02)	$ (2.17)

- Definition

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

+ References + Details

Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenue from Contracts with Customers [Line Items]
Transaction price allocated to remaining performance obligations	$ 529.0
Service revenue occurring period	1 year
Future equipment revenue recognition period	next one to three years
Future Equipment Revenue [Member]
Revenue from Contracts with Customers [Line Items]
Equipment revenue	$ 98.0
Connectivity and Entertainment Service Revenues [Member]
Revenue from Contracts with Customers [Line Items]
Transaction price allocated to remaining performance obligations	431.0
Airline [Member]
Revenue from Contracts with Customers [Line Items]
Contract assets, current and non-current	64.2	$ 59.9
Accounting Standards Update 2014-09 [Member]
Revenue from Contracts with Customers [Line Items]
Deferred revenue, current and non-current	56.7	60.1
Deferred STC costs	17.5	16.5
Accounting Standards Update 2014-09 [Member] \| Engineering, Design and Development [Member]
Revenue from Contracts with Customers [Line Items]
Amortization expense	$ 2.7	$ 1.0

Revenue Recognition - Summary of Revenue Disaggregated by Category (Parenthetical) (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) Segment
Disaggregation of Revenue [Line Items]
Number of operating segments \| Segment	3
ATG [Member] \| CA-NA [Member]
Disaggregation of Revenue [Line Items]
Equipment revenue	$ 43.4
Satellite [Member] \| CA-NA [Member]
Disaggregation of Revenue [Line Items]
Equipment revenue	2.0
Airline, OEM and Aftermarket Dealer [Member] \| Product [Member] \| Transition Agreements To Airline-directed Model [Member] \| CA-NA [Member]
Disaggregation of Revenue [Line Items]
Equipment revenue	45.4
Airline Partners [Member] \| Product [Member] \| Transition Agreements To Airline-directed Model [Member] \| CA-NA [Member]
Disaggregation of Revenue [Line Items]
Equipment revenue	$ 45.4

Composition of Certain Balance Sheet Accounts - Components of Inventories (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Work-in-process component parts	$ 23,141	$ 30,340
Finished goods	94,003	162,705
Total inventory	$ 117,144	$ 193,045	$ 45,543

Composition of Certain Balance Sheet Accounts - Components of Inventories (Parenthetical) (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018	Dec. 31, 2017
Inventory [Line Items]
Property and equipment, net	$ 560,318		$ 511,867	$ 656,038
Air Line Inventory [Member]
Inventory [Line Items]
Property and equipment, net		$ 46,800

Composition of Certain Balance Sheet Accounts - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Prepaid Expense and Other Assets [Abstract]
Contract assets	$ 12,364	$ 10,423
Prepaid satellite services	11,299	7,755
Restricted cash	560	1,535
Other	12,082	14,982
Total prepaid expenses and other current assets	$ 36,305	$ 34,695	$ 20,310

Composition of Certain Balance Sheet Accounts - Property and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,067,638	$ 944,772
Accumulated depreciation	(507,320)	(432,905)
Total property and equipment, net	560,318	511,867	$ 656,038
Office Equipment, Furniture, Fixtures and Other [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	56,205	52,320
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	44,389	44,838
Airborne Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	737,593	642,151
Network Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 229,451	$ 205,463

Composition of Certain Balance Sheet Accounts - Schedule of Other Non-Current Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other Assets, Noncurrent [Abstract]
Contract assets	$ 51,829	$ 49,517
Deferred STC costs	17,453	16,453
Restricted cash	7,099	5,426
Other	13,291	12,816
Total other non-current assets	$ 89,672	$ 84,212	$ 67,107

Composition of Certain Balance Sheet Accounts - Accrued Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Accrued Liabilities, Current [Abstract]
Airline-related accrued liabilities, including revenue share	$ 43,592	$ 53,527
Accrued interest	17,048	46,694
Employee compensation and benefits	29,954	19,463
Airborne equipment and installation costs	11,466	25,119
Accrued satellite network costs	13,843	19,557
Warranty reserve	13,165	12,291	$ 2,424
Operating leases	12,241
Other	32,802	36,460
Total accrued liabilities	$ 174,111	$ 213,111

Composition of Certain Balance Sheet Accounts - Other Non-Current Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other Liabilities, Noncurrent [Abstract]
Deferred revenue	$ 21,889	$ 21,482
Deferred rent		35,897
Asset retirement obligations	11,560	9,696	$ 9,668
Deferred tax liabilities	2,340	2,162
Other	10,704	10,954
Total other non-current liabilities	$ 46,493	$ 80,191	$ 134,655

Composition of Certain Balance Sheet Accounts - Schedule of Changes in Warranty Reserves (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Guarantees [Abstract]
Warranty Beginning Balance	$ 12,291	$ 2,424
Accruals for warranties issued	8,754	10,172
Settlements of warranties	(7,880)	(305)
Warranty Ending Balance	$ 13,165	$ 12,291

Composition of Certain Balance Sheet Accounts - Schedule of Changes in Non Current Asset Retirement Obligation (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligation, Beginning Balance	$ 9,696	$ 9,668
Liabilities incurred	1,095	(760)
Liabilities settled	(39)	(192)
Accretion expense	848	1,035
Foreign exchange rate adjustments	(40)	(55)
Asset retirement obligation, Ending Balance	$ 11,560	$ 9,696

Composition of Certain Balance Sheet Accounts - Schedule of Changes in Non Current Asset Retirement Obligation (Parenthetical) (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
Asset Retirement Obligation Disclosure [Abstract]
Change in estimate in expected cash flows for liabilities	$ 0.8

Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 0.6	$ 0.6
Amortization expense	$ 19.6	$ 26.5	$ 24.9

Intangible Assets - Schedule of Intangible Assets, Other than Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Intangible Assets Net Excluding Goodwill [Line Items]
Total intangible assets, Gross Carrying Amount	$ 227,278	$ 214,668
Amortized intangible assets, Gross Carrying Amount	194,995	182,385
Amortized intangible assets, Accumulated Amortization	(151,399)	(131,797)
Amortized intangible assets, Net Carrying Amount	43,596	50,588
Total intangible assets, Net Carrying Amount	75,879	82,871
FCC Licenses [Member]
Intangible Assets Net Excluding Goodwill [Line Items]
Total unamortized intangible assets, Gross Carrying Amount	32,283	32,283
Total unamortized intangible assets, Net Carrying Amount	$ 32,283	32,283
Software [Member]
Intangible Assets Net Excluding Goodwill [Line Items]
Weighted Average Remaining Useful Life (in years)	2 years 7 months 6 days
Amortized intangible assets, Gross Carrying Amount	$ 177,190	164,580
Amortized intangible assets, Accumulated Amortization	(135,154)	(116,873)
Amortized intangible assets, Net Carrying Amount	42,036	47,707
OEM and Dealer Relationships [Member]
Intangible Assets Net Excluding Goodwill [Line Items]
Amortized intangible assets, Gross Carrying Amount	6,724	6,724
Amortized intangible assets, Accumulated Amortization	(6,724)	(6,724)
Service Customer Relationships [Member]
Intangible Assets Net Excluding Goodwill [Line Items]
Amortized intangible assets, Gross Carrying Amount	8,081	8,081
Amortized intangible assets, Accumulated Amortization	(8,081)	(6,804)
Amortized intangible assets, Net Carrying Amount	$ 0	1,277
Other Intangible Assets [Member]
Intangible Assets Net Excluding Goodwill [Line Items]
Weighted Average Remaining Useful Life (in years)	7 years 9 months 18 days
Amortized intangible assets, Gross Carrying Amount	$ 3,000	3,000
Amortized intangible assets, Accumulated Amortization	(1,440)	(1,396)
Amortized intangible assets, Net Carrying Amount	$ 1,560	$ 1,604

Intangible Assets - Summary of Amortization Expenses (Detail) $ in Thousands	Dec. 31, 2019 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2020	$ 18,092
2021	13,820
2022	9,165
2023	1,411
2024	343
Thereafter	$ 765

Long-Term Debt and Other Liabilities - Additional Information (Detail) $ / shares in Units, shares in Millions										1 Months Ended					12 Months Ended
	Mar. 05, 2020 shares	Dec. 11, 2019 USD ($) shares	May 07, 2019 USD ($)	Apr. 25, 2019 USD ($)	Apr. 18, 2019 USD ($)	Jan. 03, 2017 USD ($)	Jun. 14, 2016 USD ($)	Mar. 03, 2015 USD ($) $ / shares	Mar. 03, 2015 USD ($) $ / shares shares	Aug. 26, 2019 USD ($) ClassOfCommonStock Tradingday	May 03, 2019 USD ($)	Nov. 30, 2018 USD ($)	Nov. 21, 2018 USD ($) $ / shares	Sep. 25, 2017 USD ($)	Dec. 31, 2019 USD ($) Tradingday shares	Dec. 31, 2018 USD ($) shares	Dec. 31, 2017 USD ($) shares
Debt Instrument [Line Items]
Proceeds from issuance of debt															$ 920,683,000		$ 181,754,000
Total debt															1,125,503,000	$ 1,041,948,000
Amortization of deferred financing costs															5,260,000	4,280,000	$ 3,743,000
Additional paid-in-capital															$ 979,499,000	963,458,000
Proceeds received from the issuance of the convertible notes																$ 237,750,000
Forward stock repurchase transactions amount								$ 140,000,000	$ 140,000,000
Forward stock repurchase transaction, shares \| shares															7.2	7.2	7.2
Repayment of convertible notes															$ 159,502,000	$ 200,438,000
Debt Issuance Costs, Net															0
Margin On LIBOR										London inter-bank offered rate plus an applicable margin ranging from 1.50% to 2.00%
Debt instrument maturity date description										The final maturity of the ABL Credit Facility is August 26, 2022, unless the aggregate outstanding principal amount of our 2022 Convertible Notes (as defined below) has not, on or prior to December 15, 2021, been repaid in full or refinanced with a new maturity date no earlier than February 26, 2023, in which case the final maturity date shall instead be December 16, 2021.
Letters of Credit [Member]
Debt Instrument [Line Items]
Restricted cash															7,700,000	7,000,000
Minimum [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Interest Rate On Debt										1.50%
Minimum [Member] \| Base Rate [Member]
Debt Instrument [Line Items]
Interest Rate On Debt										0.50%
Maximum [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Interest Rate On Debt										2.00%
Maximum [Member] \| Base Rate [Member]
Debt Instrument [Line Items]
Interest Rate On Debt										1.00%
ABL Credit Facility [Member]
Debt Instrument [Line Items]
Effective interest rate on convertible notes										15.00%
Common stock price trading days \| Tradingday										30
Line of Credit Facility, Current Borrowing Capacity															4,500,000
ABL Credit Facility [Member] \| JP Morgan Chase Bank NA [Member]
Debt Instrument [Line Items]
Credit Facility borrowing base availability										$ 30,000,000
ABL Credit Facility [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Unused Borrowing Fee Percentage										0.25%
Fixed Charge Coverage Ratio \| ClassOfCommonStock										100
Minimum Fixed Charge Coverage Ratio \| ClassOfCommonStock										100
ABL Credit Facility [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Unused Borrowing Fee Percentage										0.375%
Fixed Charge Coverage Ratio \| ClassOfCommonStock										110
Convertible Notes [Member]
Debt Instrument [Line Items]
Forward stock repurchase transaction, shares \| shares									7.2
Forward stock repurchase transaction, settlement date								Mar. 01, 2020
12.500% Senior Secured Notes Due 2022 [Member]
Debt Instrument [Line Items]
Aggregate principal amount							$ 525,000,000
Interest rate							12.50%
Unamortized debt premium and consent fees															$ 11,700,000
Interest rate payable term															semi-annually
Loan origination fees															$ 15,900,000
Amortization of deferred financing costs															900,000	2,600,000	$ 2,300,000
Payment Of Premium On Debt Redemption															$ 51,400,000
12.500% Senior Secured Notes Due 2022 [Member] \| Condition One [Member]
Debt Instrument [Line Items]
Debt instrument redemption price percentage of principal amount redeemed															40.00%
Debt instrument redemption price, percentage															109.875%
Outstanding redemption percentage															50.00%
12.500% Senior Secured Notes Due 2022 [Member] \| Additional Notes [Member] \| January Two Thousand And Seventeen Additional Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount						$ 65,000,000
Interest rate						12.50%
Issue price as percentage of face value						108.00%
Proceeds from issuance of debt						$ 70,200,000
12.500% Senior Secured Notes Due 2022 [Member] \| Additional Notes [Member] \| September Two Thousand And Seventeen Additional Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount														$ 100,000,000
Interest rate														12.50%
Issue price as percentage of face value														113.00%
Proceeds from issuance of debt														$ 113,000,000
Accrued interest received														$ 2,900,000
12.500% Senior Secured Notes Due 2022 [Member] \| Supplemental Indenture [Member]
Debt Instrument [Line Items]
Consent fees paid															$ 1,400,000
3.75% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount								$ 361,900,000	$ 361,900,000
Interest rate								3.75%	3.75%
Interest rate payable term								semi-annually
Amortization of deferred financing costs															200,000	1,400,000	$ 1,500,000
Option granted to initial purchasers								$ 60,000,000	$ 60,000,000
Additional paid-in-capital								100,000,000	100,000,000
Convertible Notes, carrying amount of liability component								$ 261,900,000	261,900,000						$ 2,498,000	149,195,000
Effective interest rate on convertible notes															11.50%
Proceeds received from the issuance of the convertible notes									$ 361,900,000						$ 2,500,000	162,000,000
Convertible Notes, unamortized discount																12,800,000
Conversion rate									41.9274
Principal amount									$ 1,000
Conversion price \| $ / shares								$ 23.85	$ 23.85
Forward stock repurchase transactions amount		$ 140,000,000
Forward stock repurchase transaction, shares \| shares		2.1
Repayment of convertible notes												$ 199,900,000
Increase in convertale notes												$ 17,900,000
Debt Instrument Redemption Price					$ 1,000
Debt Instrument Principal Redemption					$ 1,000
Debt Issuance Costs, Net																900,000
3.75% Convertible Senior Notes [Member] \| Forecast [Member]
Debt Instrument [Line Items]
Forward stock repurchase transaction, shares \| shares	5.1
Shares Purchased and Retired Under Forward Transactions \| shares	2.1
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	$ 340,000,000
Principal amount of Convertible Notes, subsequently exercised								$ 21,900,000	$ 21,900,000
2024 Senior Secured Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount															925,000,000
Total debt															921,100,000
Convertible Notes, unamortized discount															3,900,000
6.00% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount													$ 237,800,000
Interest rate													6.00%
Amortization of deferred financing costs															1,700,000
Debt issuance costs															4,500,000	200,000
Debt instrument redemption price, percentage													100.00%
Option granted to initial purchasers													$ 32,300,000
Principal amount of Convertible Notes, subsequently exercised													22,800,000
Additional paid-in-capital													49,100,000
Convertible Notes, carrying amount of liability component													$ 188,700,000		201,900,000	190,100,000
Effective interest rate on convertible notes													13.60%
Proceeds received from the issuance of the convertible notes													$ 237,800,000
Convertible Notes, unamortized discount															35,900,000	47,700,000
Conversion rate													166.6667
Principal amount													$ 1,000		1,000
Conversion price \| $ / shares													$ 6.00
Multiples of principal amount													$ 1,000
Outstanding principal balance paid															$ 237,800,000
Debt Issuance Costs, Net																$ 6,200,000
6.00% Convertible Senior Notes [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Percentage of common share price over conversion price for conversion															130.00%
Common stock price trading days \| Tradingday															20
Common stock price consecutive trading days \| Tradingday															30
6.00% Convertible Senior Notes [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Debt instrument redemption price, percentage															98.00%
Common stock price trading days \| Tradingday															5
Common stock price consecutive trading days \| Tradingday															5
6.00% Convertible Senior Notes [Member] \| Issuance Costs [Member]
Debt Instrument [Line Items]
Loan origination fees													8,100,000
Additional paid-in-capital													1,700,000
Issuance cost recorded to deferred financing costs													6,400,000
6.00% Convertible Senior Notes [Member] \| Institutional Buyers [Member]
Debt Instrument [Line Items]
Aggregate principal amount													$ 215,000,000
9.875% Senior secured Notes Due On 2024 [Member]
Debt Instrument [Line Items]
Aggregate principal amount				$ 905,000,000
Interest rate				9.875%
Increase Decrease In Debt Indebtedness											$ 20,000,000
Issue price as percentage of face value			99.512%
Maturity date				May 01, 2024
Loan origination fees															$ 22,000,000
Amortization of deferred financing costs															2,300,000
Debt issuance costs															$ 19,700,000
9.875% Senior secured Notes Due On 2024 [Member] \| May Two Thousand And Nineteen Additional Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount			$ 20,000,000
Interest rate			9.875%
Issue price as percentage of face value			100.50%
Proceeds from issuance of debt			$ 920,700,000
Accrued interest received			$ 100,000
Debt Instrument, Interest Rate Terms				semiannually
9.875% Senior secured Notes Due On 2024 [Member] \| Condition One [Member]
Debt Instrument [Line Items]
Debt instrument redemption price percentage of principal amount redeemed															103.00%
Debt Instrument Redemption Price Aggregate Of Principal Amount Redeemable															$ 150,000,000
9.875% Senior secured Notes Due On 2024 [Member] \| Condition Two [Member]
Debt Instrument [Line Items]
Debt instrument redemption price percentage of principal amount redeemed															101.00%
Debt instrument redemption price, percentage							100.00%
Two Thousand Twenty Convertible Notes [Member]
Debt Instrument [Line Items]
Repayment of convertible notes															$ 500,000
Two Thousand Twenty Convertible Notes [Member] \| loss on extinguishment of debt [Member]
Debt Instrument [Line Items]
Repayment of convertible notes															159,000,000
Debt Issuance Costs, Net															600,000
Repayments Of Convertible Debt Adjustments															$ 8,500,000

Long-Term Debt and Other Liabilities - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Mar. 03, 2015
Debt Instrument [Line Items]
Total debt	$ 1,125,503	$ 1,041,948
Less deferred financing costs	(24,255)	(17,055)
Total long-term debt	1,101,248	1,024,893
2024 Senior Secured Notes [Member]
Debt Instrument [Line Items]
Senior Secured Notes	921,137
Total debt	921,137
2022 Senior Secured Notes [Member]
Debt Instrument [Line Items]
Senior Secured Notes		702,670
2022 Convertible Notes [Member]
Debt Instrument [Line Items]
Convertible Notes	201,868	190,083
2020 Convertible Notes [Member]
Debt Instrument [Line Items]
Convertible Notes	$ 2,498	$ 149,195	$ 261,900

Long-Term Debt and Other Liabilities - Summary of Redemption Prices Plus Accrued and Unpaid Interest (Detail) - 2024 Senior Secured Notes [Member]	12 Months Ended
	Dec. 31, 2019
2021 [Member]
Debt Instrument, Redemption [Line Items]
Debt instrument redemption price, percentage	104.938%
2022 [Member]
Debt Instrument, Redemption [Line Items]
Debt instrument redemption price, percentage	102.469%
2023 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, 2019	Dec. 31, 2018	Dec. 31, 2017
Schedule Of Interest [Line Items]
Interest costs charged to expense	$ 110,601	$ 100,274	$ 89,915
Amortization of deferred financing costs	5,260	4,280	3,743
Accretion of debt discount	15,729	21,105	19,520
Amortization of debt premium	(1,018)	(2,850)	(1,234)
Interest expense	130,572	122,809	111,944
Total interest costs	131,191	123,205	113,045
Property and Equipment [Member]
Schedule Of Interest [Line Items]
Interest costs capitalized	11	32	26
Software [Member]
Schedule Of Interest [Line Items]
Interest costs capitalized	$ 608	$ 364	$ 1,075

Common Stock and Preferred Stock - Additional Information (Detail) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
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 - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]
Assets fair value adjustments	$ 0	$ 0	$ 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, 2019	Dec. 31, 2018	Mar. 03, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total debt	$ 1,125,503	$ 1,041,948
2024 Senior Secured Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value of Long Term Debt	982,000
Total debt	921,137
2022 Senior Secured Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value of Long Term Debt		737,000
Total debt		702,670
2022 Convertible Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value of Convertible Notes	297,000	216,000
Carrying Value of Convertible Notes	201,868	190,083
2020 Convertible Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value of Convertible Notes	2,498	150,000
Carrying Value of Convertible Notes	$ 2,498	$ 149,195	$ 261,900

Fair Value of Financial Assets and Liabilities - Summary of Fair Value and Carrying Value of Long-Term Debt (Parenthetical) (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
2024 Senior Secured Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unamortized debt premium and consent fees	$ 3.9
2022 Senior Secured Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unamortized debt premium and consent fees		$ 12.7
6% Convertible Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Unamortized Discount	$ 35.9	47.7
3.75% Convertible Senior Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Unamortized Discount		$ 12.8

Business Segments and Major Customers - Additional Information (Detail) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2019 USD ($) Segment Customer	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments \| Segment									3
Number of customers meeting concentration risk threshold \| Customer									0
Equipment revenue	$ 221,310	$ 201,182	$ 213,685	$ 199,549	$ 217,224	$ 217,257	$ 227,458	$ 231,825	$ 835,726	$ 893,764	$ 699,090
American Airlines [Member] \| Transition Agreement To Airline Directed Model [Member]
Segment Reporting Information [Line Items]
Equipment revenue									$ 45,400
Revenue [Member] \| Customer Concentration Risk [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark									15.00%	15.00%	15.00%
Revenue [Member] \| Customer Concentration Risk [Member] \| Delta Airline and American Airlines [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark									28.00%	23.00%	26.00%
Revenue [Member] \| Customer Concentration Risk [Member] \| American Airlines [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark									10.00%	22.00%	21.00%
Accounts Receivable [Member] \| Delta Air Lines [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark									11.00%	11.00%
Accounts Receivable [Member] \| Credit Concentration Risk [Member] \| Delta Air Lines [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark									10.00%	11.00%

Business Segments and Major Customers - Summary of Reportable Segments (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Total revenue	$ 221,310	$ 201,182	$ 213,685	$ 199,549	$ 217,224	$ 217,257	$ 227,458	$ 231,825	$ 835,726	$ 893,764	$ 699,090
Segment profit (loss)									179,572	111,705	97,785
Service [Member]
Segment Reporting Information [Line Items]
Total revenue									664,353	630,147	617,906
Product [Member]
Segment Reporting Information [Line Items]
Total revenue									171,373	263,617	81,184
CA-NA [Member]
Segment Reporting Information [Line Items]
Total revenue									378,019	469,217	400,613
Segment profit (loss)									97,920	62,286	100,754
CA-NA [Member] \| Service [Member]
Segment Reporting Information [Line Items]
Total revenue									354,366	367,368	393,484
CA-NA [Member] \| Product [Member]
Segment Reporting Information [Line Items]
Total revenue									23,653	101,849	7,129
CA-ROW [Member]
Segment Reporting Information [Line Items]
Total revenue									148,722	134,394	57,865
Segment profit (loss)									(62,314)	(90,779)	(102,482)
CA-ROW [Member] \| Service [Member]
Segment Reporting Information [Line Items]
Total revenue									88,065	66,402	53,542
CA-ROW [Member] \| Product [Member]
Segment Reporting Information [Line Items]
Total revenue									60,657	67,992	4,323
BA [Member]
Segment Reporting Information [Line Items]
Total revenue									308,985	290,153	240,612
Segment profit (loss)									143,966	140,198	99,513
BA [Member] \| Service [Member]
Segment Reporting Information [Line Items]
Total revenue									221,922	196,377	170,880
BA [Member] \| Product [Member]
Segment Reporting Information [Line Items]
Total revenue									$ 87,063	$ 93,776	$ 69,732

Business Segments and Major Customers - Reconciliation of Segment Profit (loss) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment profit (loss)	$ 179,572	$ 111,705	$ 97,785
Unallocated corporate costs	(33,365)	(40,275)	(38,552)
Interest income	4,210	4,292	2,964
Interest expense	(130,572)	(122,809)	(111,944)
Depreciation and amortization	(118,817)	(133,617)	(145,490)
Transition to airline-directed model		21,551	0
Amortization of deferred airborne lease incentives	28,551	31,650	41,816
Amortization of STC costs	(2,706)	(1,023)	0
Stock-based compensation expense	16,511	16,912	19,821
Loss on extinguishment of debt	(57,962)	(19,653)
Other income (expense)	2,602	(233)	(750)
Loss before income taxes	(144,998)	(165,324)	(173,992)
CA-NA [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment profit (loss)	97,920	62,286	100,754
CA-ROW [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment profit (loss)	(62,314)	(90,779)	(102,482)
BA [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment profit (loss)	$ 143,966	$ 140,198	$ 99,513

Business Segments and Major Customers - Reconciliation of Segment Profit (loss) (Parenthetical) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Stock-based compensation expense	$ 16,511	$ 16,912	$ 19,821
Unallocated Corporate Costs [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Stock-based compensation expense	$ 6,100	$ 5,900	$ 7,300

Stock-Based Compensation - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) ClassOfCommonStock shares	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Schedule Of Share Based Compensation Arrangement [Line Items]
Number of share-based employee compensation plans \| ClassOfCommonStock	3
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 \| $	$ 13.0
Weighted average period related to unvested stock options	1 year 10 months 24 days
Total grant date fair value of stock options vested \| $	$ 7.0
Restricted Stock [Member]
Schedule Of Share Based Compensation Arrangement [Line Items]
Total unrecognized compensation costs related to unvested stock options \| $	$ 0.3
Weighted average period related to unvested stock options	1 year 1 month 6 days
Stock Plan 2010, 2013 and 2016 [Member]
Schedule Of Share Based Compensation Arrangement [Line Items]
Common stock, shares reserved for issuance \| shares	27,906,570
Shares available for grant \| shares	5,097,835
Contractual life of granted options	10 years
Options vesting period	4 years
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 \| $	$ 9.0
Weighted average period related to unvested stock options	3 years 9 months 18 days
Total grant date fair value of stock options vested \| $	$ 8.0	$ 9.0	$ 10.0
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 \| shares	1,200,000
Shares available for grant \| shares	178,349
Common stock, shares issued under ESPP \| shares	304,831
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, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 16,511	$ 16,912	$ 19,821
Cost of Service Revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	1,615	1,659	1,748
Cost of Equipment Revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	275	210	185
Engineering, Design and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	2,999	3,347	3,656
Sales and Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	3,377	4,267	4,751
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 8,245	$ 7,429	$ 9,481

Stock-Based Compensation - Summary of Stock Options Activity (Detail) - Stock options [Member] - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Schedule Of Stock Option Activity [Line Items]
Options Outstanding, Beginning Balance	10,714,158,000
Number of Options, Granted	1,525,880,000
Number of Options, Exercised	(3,338,000)
Number of Options, Forfeited	(555,605,000)
Number of Options, Expired	(606,591,000)
Options Outstanding, Ending Balance	11,074,504,000	10,714,158,000
Options Exercisable, Ending Balance	7,393,469,000
Weighted Average Exercise Price Per Share, Outstanding Beginning Balance	$ 12,810
Weighted Average Exercise Price Per Share, Granted	4,690
Weighted Average Exercise Price Per Share, Exercised	5,010
Weighted Average Exercise Price Per Share, Forfeited	9,450
Weighted Average Exercise Price Per Share, Expired	15,780
Weighted Average Exercise Price Per Share, Outstanding Ending Balance	11,700	$ 12,810
Weighted Average Exercise Price Per Share, Exercisable Ending Balance	$ 13,340
Weighted Average Remaining Contractual Life, Outstanding	5 years 3 months	6 years 3 months
Weighted Average Remaining Contractual Life, Exercisable Ending Balance	3 years 9 months 25 days
Aggregate Intrinsic Value, Outstanding	$ 3,050,000	$ 0
Aggregate Intrinsic Value, Exercisable Ending Balance	$ 780,000

Stock-Based Compensation - Schedule of Weighted Average Assumptions Used and Weighted Average Grant Date Fair Value of Stock Options (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Approximate risk-free interest rate	2.30%	2.70%	2.30%
Average expected life (years)	6 years 7 days	6 years 10 days	6 years 1 month 20 days
Volatility	60.50%	49.20%	45.30%
Weighted average grant date fair value of stock options granted	$ 2.69	$ 4.42	$ 5.59
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	$ 4.71	$ 8.97	$ 11.97

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, 2019 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Underlying Shares, Unvested - Beginning balance \| shares	3,223,980
Number of Underlying Shares, Granted \| shares	2,219,248
Number of Underlying Shares, Vested \| shares	(692,693)
Number of Underlying Shares, Forfeited/canceled \| shares	(567,303)
Number of Underlying Shares, Unvested - Ending balance \| shares	4,183,232
Weighted Average Grant Date Fair Value, Unvested - Beginning balance \| $ / shares	$ 6.51
Weighted Average Grant Date Fair Value, Granted \| $ / shares	4.73
Weighted Average Grant Date Fair Value, Vested \| $ / shares	9.20
Weighted Average Grant Date Fair Value, Forfeited/canceled \| $ / shares	5.94
Weighted Average Grant Date Fair Value, Unvested - Ending balance \| $ / shares	$ 5.18

Stock-Based Compensation - Summarizes the Activity for Restricted Stock (Detail) - Restricted Stock [Member]	12 Months Ended
	Dec. 31, 2019 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Underlying Shares, Unvested - Beginning balance \| shares	118,053
Number of Underlying Shares, Granted \| shares	0
Number of Underlying Shares, Vested \| shares	(66,174)
Number of Underlying Shares, Forfeited/canceled \| shares	(7,675)
Number of Underlying Shares, Unvested - Ending balance \| shares	44,204
Weighted Average Grant Date Fair Value, Unvested - Beginning balance \| $ / shares	$ 12.38
Weighted Average Grant Date Fair Value, Granted \| $ / shares	0
Weighted Average Grant Date Fair Value, Vested \| $ / shares	11.95
Weighted Average Grant Date Fair Value, Forfeited/canceled \| $ / shares	2.99
Weighted Average Grant Date Fair Value, Unvested - Ending balance \| $ / shares	$ 11.63

Employee Retirement and Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Employee Contribution	100.00%
Percentage of employees contribution matched by the company	4.00%
Employer Contribution	$ 5.2	$ 5.1	$ 5.9

Income Tax - (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
United States	$ (131,220)	$ (128,361)	$ (138,881)
Foreign	(13,778)	(36,963)	(35,111)
Loss before income taxes	$ (144,998)	$ (165,324)	$ (173,992)

Income Tax - Components of (Benefit) Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current:
Federal	$ 0	$ 0	$ 0
State	385	467	235
Foreign	444	61	49
Current Total	829	528	284
Deferred:
Federal	91	(3,908)	(2,590)
State	86	87	309
Deferred Total	178	(3,821)	(2,281)
Total	$ 1,006	$ (3,293)	$ (1,997)

Income Tax - Income Tax Computed at Federal Statutory Tax Rates (Detail)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Federal statutory rate	21.00%	21.00%	35.00%
Impact of change in tax rate	(0.10%)	0.10%	(47.00%)
Change in valuation allowance	(22.70%)	(24.80%)	12.50%
State income taxes-net of federal tax benefit	4.20%	4.00%	2.40%
Other	(3.10%)	1.70%	(1.80%)
Effective tax rate	(0.70%)	2.00%	1.10%

Income Tax - Components of Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Compensation accruals	$ 5,847	$ 3,407
Stock options	18,192	15,552
Inventory	1,266	1,102
Warranty reserves	913	1,014
Deferred rent	0	9,603
Deferred revenue	43,256	37,501
Federal net operating loss (NOL)	141,803	143,433
State NOL	24,744	24,623
Interest carryforward	48,980	22,029
UNICAP adjustment	2,539	2,311
Finite-lived intangible assets	6,394	7,576
Lease liability	22,355	0
Other	9,243	11,576
Total deferred income tax assets	325,532	279,727
Fixed assets	(59,584)	(53,944)
Indefinite-lived intangible assets	(7,074)	(6,528)
Convertible Notes discount	(8,706)	(14,612)
Right-of-use asset	(13,553)	0
Other	(3,768)	(2,272)
Total deferred income tax liabilities	(92,685)	(77,356)
Total deferred income tax	232,847	202,371
Valuation allowance	(235,187)	(204,533)
Net deferred income tax liability	$ (2,340)	$ (2,162)

Income Tax - Additional Information (Detail) - USD ($)	12 Months Ended
Income Tax - Additional Information (Detail) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
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
Interest expense allowable of EBITDA	30.00%
Interest expense allowable of EBIT	30.00%
Federal net operating loss [Member]
Tax Credit Carryforward [Line Items]
Net operating loss carryforward	$ 579,000,000
State NOL [Member]
Tax Credit Carryforward [Line Items]
Net operating loss carryforward	$ 430,000,000

Leases - summary of our lease expense (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Operating lease cost	$ 19,437
Finance lease cost
Amortization of leased assets	666
Interest on lease liabilities	57
Total lease cost	$ 20,160

Leases - Other information regarding our leases (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows used in operating leases	$ 23,202
Operating cash flows used in financing leases	57
Financing cash flows used in financing leases	713
Non-cash items:
Operating leases obtained	15,588
Modifications to operating leases	(20,027)
Finance leases obtained	$ 1,326
Weighted average remaining lease term
Operating leases	8 years
Financing leases	3 years
Weighted average discount rate
Operating leases	9.44%
Financing leases	8.28%

Leases - Annual Future Minimum Obligations for Operating Leases Other than Arrangements with Commercial Airline Partners (Detail) $ in Thousands	Dec. 31, 2019 USD ($)
Operating Leases
2020	$ 19,930
2021	18,760
2022	17,145
2023	13,246
2024	9,571
Thereafter	53,913
Total future minimum lease payments	132,565
Less: Amount representing interest	(42,516)
Present value of net minimum lease payments	90,049
Accrued liabilities	12,241
Non-current operating lease liabilities	77,808
Total lease liabilities	90,049
Financing Leases
2020	761
2021	555
2022	473
Total future minimum lease payments	1,789
Less: Amount representing interest	(157)
Present value of net minimum lease payments	1,632
Accrued liabilities	620
Other non-current liabilities	1,012
Total lease liabilities	$ 1,632

Leases - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Leases [Line Items]
Amortization of deferred airborne lease incentives	$ 28,551	$ 31,650	$ 41,816
Deferred airborne lease incentives included in current liabilities	26,582	24,145
Deferred airborne lease incentives included in non-current liabilities	135,399	129,086
Revenue share expense, net of amortization of deferred airborne lease incentives	25,100	$ 24,500	$ 30,500
Present value of net minimum lease payments not yet commences	$ 6,000

Commitments and Contingencies - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2019 USD ($)
Loss Contingencies [Line Items]
2019 (July 1 through December 31)	$ 141,300,000
2020	129,700,000
2021	109,800,000
2022	90,600,000
2023	85,400,000
Thereafter	289,000,000
Potential losses accrued	$ 0
Linksmart Litigation [Member]
Loss Contingencies [Line Items]
Litigation filing date	April 20, 2018
Securities Litigation [Member]
Loss Contingencies [Line Items]
Litigation filing date	June 27, 2018
Derivative Litigation [Member]
Loss Contingencies [Line Items]
Litigation filing date	September 25, 2018 and September 26, 2018

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, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Total revenue	$ 221,310	$ 201,182	$ 213,685	$ 199,549	$ 217,224	$ 217,257	$ 227,458	$ 231,825	$ 835,726	$ 893,764	$ 699,090
Operating income (loss)	8,392	7,218	9,666	11,448	(9,691)	(7,610)	(7,449)	(2,171)	36,724	(26,921)	(64,262)
Net loss	(22,351)	(22,891)	(83,963)	(16,799)	(59,688)	(37,717)	(37,207)	(27,419)	(146,004)	(162,031)	(171,995)
Net loss attributable to common stock	$ (22,351)	$ (22,891)	$ (83,963)	$ (16,799)	$ (59,688)	$ (37,717)	$ (37,207)	$ (27,419)	$ (146,004)	$ (162,031)	$ (171,995)
Net loss attributable to common stock per share—basic and diluted	$ (280)	$ (280)	$ (1,040)	$ (210)	$ (740)	$ (470)	$ (470)	$ (340)	$ (1.81)	$ (2.02)	$ (2.17)
Weighted average number of shares—basic and diluted	80,997	80,908	80,702	80,446	80,303	80,196	79,783	79,696	80,766	80,038	79,407

- Definition

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

+ References + Details

Condensed Financial Information of Registrant - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Assets:
Cash and cash equivalents	$ 170,016	$ 184,155	$ 196,356
Short-term investments		39,323
Prepaid expenses and other current assets	36,305	34,695	20,310
Other non-current assets	89,672	84,212	67,107
Total assets	1,214,700	1,265,096
Liabilities and stockholders' deficit:
Total current liabilities	252,642	299,687
Long-term debt	1,101,248	1,024,893
Other non-current liabilities	46,493	80,191	134,655
Total liabilities	1,613,590	1,533,857
Total stockholders' deficit	(398,890)	(268,761)	(191,564)	$ (40,393)
Total liabilities and stockholders' deficit	1,214,700	1,265,096
Parent Company [Member]
Assets:
Cash and cash equivalents	118,323	161,113	$ 9,734
Short-term investments		39,323
Prepaid expenses and other current assets	164	738
Other non-current assets	2,599	101
Total assets	121,086	201,275
Liabilities and stockholders' deficit:
Total current liabilities	2,200	3,998
Long-term debt	199,849	332,211
Other non-current liabilities	2,340	2,162
Investments and payables with subsidiaries	315,587	131,665
Total liabilities	519,976	470,036
Total stockholders' deficit	(398,890)	(268,761)
Total liabilities and stockholders' deficit	$ 121,086	$ 201,275

Condensed Financial Information of Registrant - Condensed Statements of Operations and Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Condensed Income Statements, Captions [Line Items]
Interest income									$ (4,210)	$ (4,292)	$ (2,964)
Interest expense									130,572	122,809	111,944
Loss on extinguishment of debt									57,962	19,653
Other									2,602	(233)	(750)
Total other (income) expense									(181,722)	(138,403)	(109,730)
Income (loss) before income taxes									(144,998)	(165,324)	(173,992)
Income tax provision (benefit)									1,006	(3,293)	(1,997)
Net loss	$ (22,351)	$ (22,891)	$ (83,963)	$ (16,799)	$ (59,688)	$ (37,717)	$ (37,207)	$ (27,419)	(146,004)	(162,031)	(171,995)
Comprehensive loss									(144,706)	(164,652)	(170,765)
Parent Company [Member]
Condensed Income Statements, Captions [Line Items]
Interest income									(3,083)	(3,123)	(1,681)
Interest expense									33,807	36,984	34,577
Loss on extinguishment of debt									9,163	19,653
Other									3
Total other (income) expense									39,890	53,514	32,896
Income (loss) before income taxes									(39,890)	(53,514)	(32,896)
Income tax provision (benefit)									563	(3,354)	(2,045)
Equity losses of subsidiaries									105,551	111,871	141,144
Net loss									(146,004)	(162,031)	(171,995)
Comprehensive loss									$ (146,004)	$ (162,031)	$ (171,995)

Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Condensed Cash Flow Statements, Captions [Line Items]
Net loss	$ (22,351)	$ (22,891)	$ (83,963)	$ (16,799)	$ (59,688)	$ (37,717)	$ (37,207)	$ (27,419)	$ (146,004)	$ (162,031)	$ (171,995)
Accretion of debt discount									15,729	21,105	19,520
Amortization of deferred financing costs									5,260	4,280	3,743
Loss on extinguishment of debt									57,962	19,653
Deferred income taxes									178	(3,821)	(2,281)
Acquisition of short-term investments										(39,323)	(317,418)
Redemption of short-term investments									39,323	212,792	443,103
Financing activities:
Proceeds from issuance of convertible notes										237,750
Repurchase of convertible notes									(159,502)	(200,438)
Payment of debt issuance costs									(22,976)	(8,054)	(3,630)
Cash, cash equivalents and restricted cash at beginning of period				191,116				203,729	191,116	203,729	125,189
Cash, cash equivalents and restricted cash at end of period	177,675				191,116				177,675	191,116	203,729
Less: current restricted cash	560				1,535				560	1,535	500
Less: non-current restricted cash	7,099				5,426				7,099	5,426	6,873
Cash, cash equivalents and restricted cash at end of period	170,016				184,155				170,016	184,155	196,356
Parent Company [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net loss									(146,004)	(162,031)	(171,995)
Accretion of debt discount									15,276	21,105	19,520
Amortization of deferred financing costs									1,906	1,648	1,484
Loss on extinguishment of debt									9,163	19,653
Subsidiary equity losses									105,551	111,871	141,144
Deferred income taxes									178	(3,821)	(2,281)
Other operating activities									(1,224)	(674)	(609)
Net cash used in operating activities									(15,154)	(12,249)	(12,737)
Acquisition of short-term investments										(39,323)	(192,893)
Redemption of short-term investments									39,323	192,893	213,905
Investments and advances with subsidiaries									94,716	(19,595)	601
Net cash provided by (used in) investing activities									134,039	133,975	21,613
Financing activities:
Proceeds from issuance of convertible notes										237,750
Repurchase of convertible notes									(159,502)	(200,438)
Payment of debt issuance costs										(8,054)
Other financing activities									325	396	(227)
Net cash provided by (used in) financing activities									(159,177)	29,654	(227)
Increase (decrease) in cash, cash equivalents and restricted cash									(40,292)	151,380	8,649
Cash, cash equivalents and restricted cash at beginning of period				$ 161,214				$ 9,834	161,214	9,834	1,185
Cash, cash equivalents and restricted cash at end of period	120,922				161,214				120,922	161,214	9,834
Less: current restricted cash
Less: non-current restricted cash	2,599				101				2,599	101	100
Cash, cash equivalents and restricted cash at end of period	$ 118,323				$ 161,113				$ 118,323	$ 161,113	$ 9,734