View Filing Data

Print Document View Excel Document

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2020	May 07, 2020
Cover [Abstract]
Document Type	10-Q
Entity Interactive Data Current	Yes
Amendment Flag	false
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Registrant Name	Gogo Inc.
Entity Central Index Key	0001537054
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Common stock
Entity Common Stock, Shares Outstanding		83,770,421
Trading Symbol	GOGO
Security Exchange Name	NASDAQ
Entity Address, Country	IL
Document Quarterly Report	true
Document Transition Report	false

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 214,229	$ 170,016
Accounts receivable, net of allowances of $3,970 and $686, respectively	92,619	101,360
Inventories	123,179	117,144
Prepaid expenses and other current assets, net of allowances of $997 and $0, respectively	36,462	36,305
Total current assets	466,489	424,825
Non-current assets:
Property and equipment, net	505,584	560,318
Goodwill and intangible assets, net	75,083	76,499
Operating lease right-of-use assets	58,085	63,386
Other non-current assets, net of allowances of $6,111 and $0, respectively	86,229	89,672
Total non-current assets	724,981	789,875
Total assets	1,191,470	1,214,700
Current liabilities:
Accounts payable	35,995	17,160
Accrued liabilities	176,238	174,111
Deferred revenue	28,472	34,789
Deferred airborne lease incentives	30,718	26,582
Total current liabilities	271,423	252,642
Non-current liabilities:
Long-term debt	1,124,713	1,101,248
Deferred airborne lease incentives	145,172	135,399
Non-current operating lease liabilities	82,975	77,808
Other non-current liabilities	53,793	46,493
Total non-current liabilities	1,406,653	1,360,948
Total liabilities	1,678,076	1,613,590
Commitments and contingencies (Note 13)
Stockholders' deficit
Common stock, par value $0.0001 per share; 500,000,000 shares authorized at March 31, 2020 and December 31, 2019; 83,825,592 and 88,292,821 shares issued at March 31, 2020 and December 31, 2019, respectively; and 83,773,648 and 88,240,877 shares outstanding at March 31, 2020 and December 31, 2019, respectively	8	9
Additional paid-in-capital	1,081,955	979,499
Accumulated other comprehensive loss	(5,127)	(2,256)
Treasury stock, at cost	(98,857)
Accumulated deficit	(1,464,585)	(1,376,142)
Total stockholders' deficit	(486,606)	(398,890)
Total liabilities and stockholders' deficit	$ 1,191,470	$ 1,214,700

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Allowances on accounts receivable	$ 3,970	$ 686
Prepaid expenses and other current assets	997	0
Other non-current assets, net of allowances	$ 6,111	$ 0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	83,825,592	88,292,821
Common stock, shares outstanding	83,773,648	88,240,877

Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue:
Total revenue	$ 184,475	$ 199,549
Operating expenses:
Cost of service revenue (exclusive of items shown below)	70,755	68,121
Cost of equipment revenue (exclusive of items shown below)	26,040	29,731
Engineering, design and development	22,863	24,728
Sales and marketing	9,652	12,318
General and administrative	27,166	22,454
Impairment of long-lived assets	46,389
Depreciation and amortization	32,670	30,749
Total operating expenses	235,535	188,101
Operating income (loss)	(51,060)	11,448
Other (income) expense:
Interest income	(606)	(1,149)
Interest expense	31,174	32,554
Other (income) expense	2,993	(3,365)
Total other expense	33,561	28,040
Loss before income taxes	(84,621)	(16,592)
Income tax provision	157	207
Net loss	$ (84,778)	$ (16,799)
Net loss attributable to common stock per share—basic and diluted	$ (1.04)	$ (0.21)
Weighted average number of shares—basic and diluted	81,205	80,446
Service [Member]
Revenue:
Total revenue	$ 150,782	$ 165,012
Product [Member]
Revenue:
Total revenue	$ 33,693	$ 34,537

Unaudited Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (84,778)	$ (16,799)
Currency translation adjustments, net of tax	(2,871)	410
Comprehensive loss	$ (87,649)	$ (16,389)

- Definition

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

+ References + Details

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating activities:
Net loss	$ (84,778)	$ (16,799)
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Depreciation and amortization	32,670	30,749
Loss on asset disposals, abandonments and write-downs	1,098	1,241
Provision for expected credit losses	6,764	84
Impairment of long-lived assets	46,389
Impairment of cost-basis investment	3,000
Deferred income taxes	45	44
Stock-based compensation expense	3,995	4,327
Amortization of deferred financing costs	1,419	1,249
Accretion and amortization of debt discount and premium	3,326	4,774
Changes in operating assets and liabilities:
Accounts receivable	5,085	10,551
Inventories	(6,035)	(1,118)
Prepaid expenses and other current assets	1,038	3,015
Contract assets	(10,622)	(6,175)
Accounts payable	16,399	2,843
Accrued liabilities	(18,291)	(19,381)
Deferred airborne lease incentives	2,345	(3,923)
Deferred revenue	1,378	2,257
Accrued interest	26,413	(19,514)
Warranty reserves	(526)	(588)
Other non-current assets and liabilities	6,915	208
Net cash provided by (used in) operating activities	38,027	(6,156)
Investing activities:
Purchases of property and equipment	(13,202)	(23,154)
Acquisition of intangible assets—capitalized software	(2,108)	(4,557)
Redemptions of short-term investments		39,323
Other, net	89	95
Net cash provided by (used in) investing activities	(15,221)	11,707
Financing activities:
Proceeds from credit facility draw	22,000
Repurchase of convertible notes	(2,498)
Payment of debt issuance costs		(557)
Payments on financing leases	(247)	(125)
Stock-based compensation activity	(397)	(58)
Net cash provided by (used in) financing activities	18,858	(740)
Effect of exchange rate changes on cash	51	(276)
Increase in cash, cash equivalents and restricted cash	41,715	4,535
Cash, cash equivalents and restricted cash at beginning of period	177,675	191,116
Cash, cash equivalents and restricted cash at end of period	219,390	195,651
Less: current restricted cash	560	1,535
Less: non-current restricted cash	4,601	5,426
Cash and cash equivalents at end of period	214,229	188,690
Supplemental Cash Flow Information:
Cash paid for interest	66	46,163
Cash paid for taxes	1	41
Noncash Investing and Financing Activities:
Purchases of property and equipment in current liabilities	6,411	19,951
Purchases of property and equipment paid by commercial airlines	$ 5,580	$ 5,016

Unaudited Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated Deficit [Member]	Treasury Stock [Member]
Beginning Balance at Dec. 31, 2018	$ (268,761)	$ 9	$ 963,458	$ (3,554)	$ (1,228,674)
Beginning Balance, Shares at Dec. 31, 2018		87,560,694
Net loss	(16,799)				(16,799)
Currency translation adjustments, net of tax	410			410
Stock-based compensation expense	4,327		4,327
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares		161,667
Tax withholding related to vesting of restricted stock units	(351)		(351)
Issuance of common stock in connection with employee stock purchase plan	293		293
Issuance of common stock in connection with employee stock purchase plan, Shares		75,253
Impact of the adoption of new accounting standards	(3,093)				(3,093)
Ending Balance at Mar. 31, 2019	(283,974)	$ 9	967,727	(3,144)	(1,248,566)
Ending Balance, Shares at Mar. 31, 2019		87,797,614
Beginning Balance at Dec. 31, 2019	(398,890)	$ 9	979,499	(2,256)	(1,376,142)
Beginning Balance, Shares at Dec. 31, 2019		88,240,877
Net loss	(84,778)				(84,778)
Currency translation adjustments, net of tax	(2,871)			(2,871)
Stock-based compensation expense	3,995		3,995
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares		522,490
Tax withholding related to vesting of restricted stock units	(682)		(682)
Issuance of common stock in connection with employee stock purchase plan	285		285
Issuance of common stock in connection with employee stock purchase plan, Shares		87,681
Settlement of prepaid forward shares [value]		$ (1)	98,858			$ (98,857)
Settlement of prepaid forward shares [shares]		(5,077,400)				5,077,400
Impact of the adoption of new accounting standards	(3,665)				(3,665)
Ending Balance at Mar. 31, 2020	$ (486,606)	$ 8	$ 1,081,955	$ (5,127)	$ (1,464,585)	$ (98,857)
Ending Balance, Shares at Mar. 31, 2020		83,773,648				5,077,400

Basis of Presentation

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Basis of Presentation

1. Basis of Presentation

The Business

Gogo (“we,” “us,” “our”) is the global leader in providing

broadband connectivity solutions and wireless

in-flight

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

“CA-NA,”

Commercial Aviation Rest of World, or

“CA-ROW,”

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

CA-NA

and

CA-ROW

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

Wi-Fi-enabled

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

in-flight

entertainment options on their personal

Wi-Fi

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

CA-NA

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

CA-ROW

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

CA-ROW

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

in-flight

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

in-flight

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

in-flight

broadband service, Passenger Entertainment, our

in-flight

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

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements and notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conformity with Article 10 of Regulation

S-X

promulgated under the Securities Act of 1933, as amended (the “Securities Act”). Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements and should be read in conjunction with our annual audited consolidated financial statements and the notes thereto included in our Annual Report on Form

10-K

for the year ended December 31, 2019 as filed with the Securities and Exchange Commission (“SEC”) on March 13, 2020 (the “2019

10-K”).

These unaudited condensed consolidated financial statements reflect, in the opinion of management, all material adjustments (which include normal recurring adjustments) necessary to fairly state, in all material respects, our financial position, results of operations and cash flows for the periods presented.

The results of operations and cash flows for the three month period ended March 31, 2020, including the impact of

COVID-19,

are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2020.

We have one class of common stock outstanding as of March 31, 2020 and December 31, 2019.

During March 2020, approximately 5.1 million shares of common stock were delivered to us in connection with the Forward Transactions (as defined and described in Note

, “Long-Term Debt and Other Liabilities”). We accounted for these shares as Treasury Stock and reclassified $98.9 million from Additional

Paid-In

Capital to Treasury Stock, at cost, in our unaudited condensed consolidated balance sheet. See Note 10, “Long-Term Debt and Other Liabilities,” for additional information.

Reclassifications

–

To conform with the current year presentation, $84 thousand of bad debt expense has been reclassified to a separate line from accounts receivable for the three month period ended March 31, 2019.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates the significant estimates and bases such estimates on historical experience and on various other assumptions believed to be reasonable under the circumstances. However, actual results could differ materially from those estimates.

Impact of COVID-19 Pandemic

3 Months Ended

Mar. 31, 2020

Impact Of Coronavirus Global Pandemic [Abstract]

Impact of COVID-19 Pandemic

2. Impact of

COVID-19

Pandemic

In December 2019, a novel strain of coronavirus

(“COVID-19”)

was reported in Wuhan, China, and the World Health Organization (the “WHO”) subsequently declared

COVID-19

a “Public Health Emergency of International Concern.” The

COVID-19

pandemic has caused a significant decline in commercial and business air travel, which has materially and adversely affected our business. Approximately 60% of our revenue comes from our two commercial airline segments,

CA-NA

and

CA-ROW.

Passenger traffic declined significantly in April 2020 compared to March 2020, resulting in an expected significant reduction in

service

revenue

April 2020 as compared to the monthly service revenue in the first quarter of 2020. The approximate remaining 40% of our revenue comes from our business aviation segment, BA, which has also seen a sharp decrease in flight activity. Additionally, since many business aircraft are flying less frequently, there was an increase in requests for

one-month

account suspensions and a significant decrease in new plan activations in April 2020 compared to March 2020.

In response to the

COVID-19

pandemic and resulting developments, we developed, and continue to refine on an ongoing basis, a range of projections based on estimated market conditions, and have implemented measures to protect our employees, ensure the business has adequate liquidity and maintain the value of our business segments, while at the same time continuing to make the interest payments on our outstanding debt. These measures include, but are not limited to, the following:

•

Employee and customer safety

– Our employees are our most important resource and we are focused on the safety of our people and our customers. Every country in which we operate has issued work from home orders and over 1,000 of our employees are working remotely, with limited personnel in place for certain location-specific activities.

•

Personnel actions

– We implemented several cost-cutting measures related to personnel, including implementing a hiring freeze, suspending 2020 merit salary increases and deferring the Chief Executive Officer’s 2019 bonus payout.

Additionally, we furloughed approximately 54% of our workforce and reduced compensation for most other employees, starting May 4, 2020. The furloughs impact approximately 600 employees across the entire company. The time and duration of the furloughs will vary based on workload in individual departments. Salary reductions begin at 30% for the Chief Executive Officer, then 20% for the executive leadership team and reducing downward by staff level from there. In addition, the compensation for the members of our Board of Directors has been reduced by 30%. Certain types of employees, such as hourly workers, have not had their compensation reduced.

•

Expense management

– We have identified responsive action plans / levers that we are implementing, or considering implementing as needed, to dramatically reduce costs in order to ensure our long-term viability, including the following:

•

Renegotiating terms with suppliers, including satellite capacity providers;

•

Deferring purchases of capital equipment;

•

Delaying aircraft equipment installations;

•

Reducing marketing, travel and other

non-essential

spend; and

•

Renegotiating terms with airline partners.

•

Financing

– In March 2020, we drew $22 million under the ABL Credit Facility.

•

Government assistance

– We applied for an $81 million grant and a $150 million loan under the recently enacted Coronavirus

Aid,

Relief, and Economic Security Act (the “CARES Act”). If we receive such assistance, we will be subject to certain restrictions and will be required to modify the personnel actions discussed above to comply with the terms of the government

assistance. Additionally, receipt of funds may require the consent of a majority of the holders of the 2024 Senior Secured Notes

and

the consent of the lenders under the ABL Credit Agreement to amend the terms governing such indebtedness.

We expect

COVID-19

to continue to have a significant negative impact on our revenue and we are unable to predict how long that impact will continue. The extent of the impact of

COVID-19

on our 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. We are unable to predict how long the pandemic and its negative impact will persist, what additional measures may be introduced by governments or private parties or what effect any such additional measures may have on air travel, our business partners and our business. Not only is the duration of the pandemic and future combative measures unknown, the overall situation is extremely fluid, and it is impossible to predict the timing of future material changes in the situation and whether the Company’s actions in response will be sufficient or successful.

Impairment assessments -

We review our long-lived assets and indefinite-lived intangible assets for potential impairment whenever events indicate that the carrying amount of such assets may not be recoverable. We conducted a review as of March 31, 2020 in light of the

COVID-19

outbreak and its impact on air travel, and recorded an impairment charge with respect to certain long-lived assets. We are continuously monitoring the

COVID-19

pandemic and its impact. If the impact of the pandemic exceeds management’s estimates, we could incur additional material impairment charges in future periods. See Note 7, “Composition of Certain Balance Sheet Accounts,” for additional information on our long-lived assets and Note 8, “Intangible Assets,” for additional information on our indefinite-lived assets.

Credit Losses

—

We regularly evaluate our accounts receivable and contract assets for expected credit losses and recorded credit losses for the three month period ended March 31, 2020. We are continuously monitoring our assumptions used to determine our expected credit losses, including the impact of the

COVID-19

pandemic, which could cause us to record additional material credit losses in future periods. See Note 9, “Composition of Certain Reserves and Allowances,” for additional information.

Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2020

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

3. Recent Accounting Pronouncements

Accounting standards adopted:

On January 1, 2020, we adopted ASU

2016-

Financial Instruments-Credit Losses (ASC 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.

The cumulative effect adjustment from using the modified retrospective approach for the adoption of ASC 326 impacted our unaudited condensed consolidated balance sheet as of January 1, 2020 by the recognition of allowance for credit losses as summarized below:


	Balance at December 31, 2019			Impact of ASC 326			Balances with Adoption of ASC 326
Assets
Accounts receivable		101,360			(1,386	)		99,974
Prepaid and other current assets		36,305			(356	)		35,949
Other non-current assets		89,672			(1,923	)		87,749
Equity
Accumulated deficit		(1,376,142	)		(3,665	)		(1,379,807	)

See Note 9, “Composition of Certain Reserves and Allowances,” for additional information.

On January 1, 2020, we adopted ASU

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. Adoption of this standard did not have a material impact on our unaudited condensed consolidated financial statements.

On January 1, 2020, we adopted ASU

2018-13,

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

(“ASU

2018-13”),

which modifies the disclosure requirements related to recurring or nonrecurring fair value measurements. Currently all of our fair value measurements are classified as Level 2 within the fair value hierarchy, and as such, the adoption of this standard did not have an impact on our unaudited condensed consolidated financial statements. See Note 14, “Fair Value of Financial Assets and Liabilities,” for additional information.

New pronouncements:

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update

No. 2020-04,

Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting

(“ASU

2020-04”),

which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by the discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank offered rates. This guidance is effective beginning on March 12, 2020 through December 31, 2022. We do not currently believe that the adoption of this standard will have a material impact on our

consolidate

financial

statements

Revenue Recognition

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

4. Revenue Recognition

Arrangements with commercial airlines

For

CA-NA

and

CA-ROW,

pursuant to contractual agreements with our airline partners, we place our equipment on commercial aircraft operated by the airlines in order to deliver our service to passengers on the aircraft. We currently have two types of commercial airline arrangements: turnkey and airline-directed. Under the airline-directed model, we have transferred control of the equipment to the airline and therefore the airline is our customer in these transactions. Under the turnkey model, we have not transferred control of our equipment to our airline partner and, as a result, the airline passenger is deemed to be our customer. Transactions with our airline partners under the turnkey model are accounted for as an operating lease of space on an aircraft. See Note 12, “Leases,” for additional information on the turnkey model.

Remaining performance obligations

As of March 31, 2020, the aggregate amount of the transaction price in our contracts allocated to the remaining unsatisfied performance obligations was approximately $585 million, most of which relate to our commercial aviation contracts. Approximately $109 million represents future equipment revenue that is expected to be recognized within the next one to three years. The remaining $476 million primarily represents connectivity and entertainment service revenues which are recognized as services are provided, which is expected to occur through the remaining term of the contract (approximately

5-10

years). We have excluded from this amount: all variable consideration derived from our connectivity or entertainment services that is allocated entirely to our performance of obligations related to such services; consideration from contracts that have an original duration of one year or less; revenue from passenger service on airlines operating under the turnkey model; and revenue from contracts that have been executed but under which have not yet met the accounting definition of a contract since the airline has not yet determined which products in our portfolio it wishes to select, and, as a result we are unable to determine which products and services will be transferred to the customer.

Disaggregation of revenue

The following table presents our revenue disaggregated by category

(in thousands)


	For the Three Months Ended March 31, 2020
	CA-NA		CA-ROW		BA		Total
Service revenue
Connectivity	$	68,869	$	18,029	$	56,975	$	143,873
Entertainment, CAS and other		4,959		1,199		751		6,909

Total service revenue	$	73,828	$	19,228	$	57,726	$	150,782

Equipment revenue
ATG	$	4,396	$	—	$	9,624	$	14,020
Satellite		1,832		14,184		3,374		19,390
Other		80		—		203		283

Total equipment revenue	$	6,308	$	14,184	$	13,201	$	33,693

Customer type
Airline passenger and aircraft owner/operator	$	43,702	$	6,517	$	57,726	$	107,945
Airline, OEM and aftermarket dealer		26,258		25,399		13,201		64,858
Third party		10,176		1,496		—		11,672

Total revenue	$	80,136	$	33,412	$	70,927	$	184,475


	For the Three Months Ended March 31, 2019
	CA-NA		CA-ROW		BA		Total
Service revenue
Connectivity	$	79,818	$	18,854	$	52,685	$	151,357
Entertainment, CAS and other		12,209		918		528		13,655

Total service revenue	$	92,027	$	19,772	$	53,213	$	165,012

Equipment revenue
ATG	$	2,872	$	—	$	11,335	$	14,207
Satellite		630		13,159		5,235		19,024
Other		540		—		766		1,306

Total equipment revenue	$	4,042	$	13,159	$	17,336	$	34,537

Customer type
Airline passenger and aircraft owner/operator	$	54,349	$	5,851	$	53,213	$	113,413
Airline, OEM and aftermarket dealer		30,913		25,491		17,336		73,740
Third party		10,807		1,589		—		12,396

Total revenue	$	96,069	$	32,931	$	70,549	$	199,549

Contract balances

Our current and

non-current

deferred revenue balances totaled $57.9 million and $56.7 million as of March 31, 2020 and December 31, 2019, 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 $70.8 million and $64.2 million as of March 31, 2020 and December 31, 2019, respectively. The contract asset balance as of March 31, 2020 was net of allowances of $7.1 million. See Note 9, “Composition of Certain Reserves and Allowances,” for additional information regarding allowances. 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 $16.5 million and $17.5 million as of March 31, 2020 and December 31, 2019, respectively. The capitalized STC costs are amortized over the life of the associated airline-directed contracts as part of our engineering, design and development costs in our unaudited condensed consolidated statements of operations. Total amortization expense was $0.8 million and $0.3 million, respectively, for the three month periods ended March 31, 2020 and 2019.

Net Loss Per Share

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Net Loss Per Share

5. Net Loss Per Share

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

The shares of common stock effectively repurchased in connection with the Forward Transactions (as defined and described in Note

, “Long-Term Debt and Other Liabilities”) are considered participating securities requiring the

two-class

method to calculate basic and diluted earnings per share. Net earnings in future periods will be allocated between common shares and participating securities. In periods of a net loss, the shares associated with the Forward Transactions will not receive an allocation of losses, as the counterparties to the Forward Transactions are not required to fund losses. Additionally, the calculation of weighted average shares outstanding as of March 31, 2020 and 2019 excludes approximately 2.1 million shares and 7.2 million shares, respectively, associated with the Forward Transactions.

As a result of the net loss for the three month periods ended March 31, 2020 and 2019, all of the outstanding shares of common stock underlying stock options, deferred stock units and restricted stock units were excluded from the computation of diluted shares outstanding because they were anti-dilutive.

The following table sets forth the computation of basic and diluted earnings per share for the three month periods ended March 31, 2020 and 2019; however, because of the undistributed losses, the shares of common stock associated with the Forward Transactions are excluded from the computation of basic earnings per share in 2020 and 2019 as undistributed losses are not allocated to these shares (

in thousands, except per share amounts


	For the Three Months Ended March 31,
	2020			2019
Net loss	$	(84,778	)	$	(16,799	)
Less: Participation rights of the Forward Transactions		—			—

Undistributed losses	$	(84,778	)	$	(16,799	)

Weighted-average common shares outstanding-basic and diluted		81,205			80,446

Net loss attributable to common stock per share-basic and diluted	$	(1.04	)	$	(0.21	)

Inventories

3 Months Ended

Mar. 31, 2020

Inventory Disclosure [Abstract]

Inventories

6. 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.

Inventories as of March 31, 2020 and December 31, 2019 were as follows (

in thousands


	March 31,		December 31,
	2020		2019
Work-in-process component parts	$	23,585	$	23,141
Finished goods		99,594		94,003

Total inventory	$	123,179	$	117,144

Composition of Certain Balance Sheet Accounts

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Composition of Certain Balance Sheet Accounts

7. Composition of Certain Balance Sheet Accounts

Prepaid expenses and other current assets as of March 31, 2020 and December 31, 2019 were as follows (

in thousands


	March 31,		December 31,
	2020		2019
Contract assets, net of allowances of $997 and $0, respectively (1)	$	14,319	$	12,364
Prepaid satellite services		7,970		11,299
Restricted cash		560		560
Other		13,613		12,082

Total prepaid expenses and other current assets	$	36,462	$	36,305

(1)	Allowance for contract assets as of March 31, 2020 is due to the adoption of ASC 326. See Note 9, “Composition of Certain Reserves and Allowances,” for additional information.

Property and equipment as of March 31, 2020 and December 31, 2019 were as follows (

in thousands


	March 31,			December 31,
	2020			2019
Office equipment, furniture, fixtures and other	$	56,482		$	56,205
Leasehold improvements		44,403			44,389
Airborne equipment (1)		709,980			737,593
Network equipment		225,169			229,451

		1,036,034			1,067,638
Accumulated depreciation		(530,450	)		(507,320	)

Total property and equipment, net	$	505,584		$	560,318

(1)	Decrease in A irborne equipment is due primarily to the impairment of airborne equipment associated with three of our airline agreements. See below for additional information.

Other

non-current

assets as of March 31, 2020 and December 31, 2019 were as follows (

in thousands


	March 31,		December 31,
	2020		2019
Contract assets, net of allowances of $6,111 and $0, respectively (1)	$	56,516	$	51,829
Deferred STC costs		16,475		17,453
Restricted cash		4,601		7,099
Other (2)		8,637		13,291

Total other non-current assets	$	86,229	$	89,672

(1)	Allowances for contract assets as of March 31, 2020 is due to the adoption of ASC 326. See Note 9, “Composition of Certain Reserves and Allowances,” for additional information.

(2)	Decrease due in part to the $3.0 million impairment of a cost-basis investment which is included in Other (income) expense within our unaudited condensed consolidated statements of operations for the three month period ended March 31, 2020.

We review our long-lived assets, including property and equipment,

right-of-use

assets, and other

non-current

assets, for potential impairment whenever events indicate that the carrying amount of such assets may not be recoverable. We perform this review by comparing the carrying value of the long-lived assets to the estimated future undiscounted cash flows expected to result from the use of the assets. We group certain long-lived assets by airline contract and by connectivity technology. If we determine an impairment exists, the amount of the impairment is computed as the difference between the asset group’s carrying value and its estimated fair value, following which the assets are written down to their estimated fair value.

In light of the

COVID-19

outbreak and its impact on air travel, including decreased flights, decreased gross passenger opportunity and our airline partners’ temporary parking of a significant number of their aircraft, we conducted a review as of March 31, 2020 and determined that the carrying values for the asset groups related to three of our airline agreements for the CA business exceeded their estimated undiscounted cash flows, which triggered the need to estimate the fair value of these assets. Fair value reflects our best estimate of the discounted cash flows of the impaired assets. For the airborne assets and

right-of-use

assets associated with the three airline agreements (the “impaired assets”), we recorded an impairment charge of $46.4 million for the three month period ended March 31, 2020, reflecting the difference between the carrying value and the estimated fair value of the impaired assets.

We are continuously monitoring the

COVID-19

pandemic and its impact. If the negative impact of the pandemic on the assets related to our airline agreements continues, including as a result of airline partners’ decisions to temporarily park certain aircraft to reduce capacity, we could incur additional material impairment charges in future periods.

Accrued liabilities as of March 31, 2020 and December 31, 2019 were as follows (

in thousands


	March 31,		December 31,
	2020		2019
Airline related accrued liabilities	$	40,882	$	43,592
Accrued interest		43,461		17,048
Employee compensation and benefits		15,136		29,954
Accrued satellite network costs		19,438		13,843
Warranty reserve		12,639		13,165
Operating leases		9,484		12,241
Airborne equipment and installation costs		4,293		11,466
Other		30,905		32,802

Total accrued liabilities	$	176,238	$	174,111

Other

non-current

liabilities as of March 31, 2020 and December 31, 2019 were as follows (

in thousands


	March 31,		December 31,
	2020		2019
Deferred revenue	$	29,433	$	21,889
Asset retirement obligations		11,773		11,560
Deferred tax liabilities		2,384		2,340
Other		10,203		10,704

Total other non-current liabilities	$	53,793	$	46,493

Intangible Assets

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

8. Intangible Assets

Our intangible assets are comprised of both indefinite-lived and finite-lived intangible assets. Intangible assets with indefinite lives and goodwill are not amortized; rather, they are reviewed for impairment at least annually or whenever events or circumstances indicate the carrying value of the asset may not be recoverable. We perform our annual impairment tests of our indefinite-lived intangible assets and goodwill during the fourth quarter of each fiscal year. We also reevaluate the useful life of indefinite-lived intangible assets each reporting period to determine whether events and circumstances continue to support an indefinite useful life. The results of our annual indefinite-lived intangible assets and goodwill impairment assessments in the fourth quarter of 2019 indicated no impairment.

As of

March 31, 2020,

as a result of

COVID-19,

we reviewed the carrying value of our indefinite-lived intangible assets and goodwill

and concluded there were

no impairments.

As of both March 31, 2020 and December 31, 2019, our goodwill balance, all of which related to our BA segment, was $0.6 million.

Our intangible assets, other than goodwill, as of March 31, 2020 and December 31, 2019 were as follows (

in thousands, except for weighted average remaining useful life


	Weighted
	Average		As of March 31, 2020							As of December 31, 2019
	Remaining		Gross					Net		Gross					Net
	Useful Life		Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
	(in years)		Amount		Amortization			Amount		Amount		Amortization			Amount
Amortized intangible assets:
Software		2.5	$	180,568	$	(139,943	)	$	40,625	$	177,190	$	(135,154	)	$	42,036
Other intangible assets		7.8		3,000		(1,445	)		1,555		3,000		(1,440	)		1,560
Service customer relationships				8,081		(8,081	)		—		8,081		(8,081	)		—
OEM and dealer relationships				6,724		(6,724	)		—		6,724		(6,724	)		—

Total amortized intangible assets				198,373		(156,193	)		42,180		194,995		(151,399	)		43,596

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

Total intangible assets			$	230,656	$	(156,193	)	$	74,463	$	227,278	$	(151,399	)	$	75,879

Amortization expense was $4.8 million and $5.3 million, respectively, for the three month periods ended March 31, 2020 and 2019.

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

in thousands


Years ending December 31,	Amortization Expense
2020 (period from April 1 to December 31)	$	13,092
2021	$	14,451
2022	$	9,670
2023	$	2,808
2024	$	547
Thereafter	$	1,612

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

Composition of Certain Reserves and Allowances

3 Months Ended

Mar. 31, 2020

Allowance for Credit Loss [Abstract]

Composition of Certain Reserves and Allowances

9. Composition of Certain Reserves and Allowances

Credit Losses

—

We regularly evaluate our accounts receivable and contract assets for expected credit losses. Our expected loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions, and a review of the current status of each customer’s trade accounts receivables. Due to the short-term nature of such receivables, the estimated amount of accounts receivable that may not be collected is based on the aging of the accounts receivable balances and the financial condition of customers. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. Our monitoring activities include timely account reconciliation, dispute resolution, payment confirmation, consideration of each customer’s financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. We apply a similar methodology towards our current and

non-current

contract asset balances. However, due to the inherent additional risk associated with a long-term receivable, an additional provision is applied towards contract asset balances that will diminish over time as the contract nears its expiration date. For the three months ended March 31, 2020, we also considered the current and estimated future economic and market conditions resulting from the

COVID-19

pandemic in the determination of our estimated credit losses.

Estimates are used to determine the expected loss allowances. Such allowances are based on management’s assessment of anticipated payment, taking into account available historical and current information as well as management’s assessment of potential future developments. We are continuously monitoring our assumptions used to determine our expected credit losses, including the impact of

COVID-19,

which could cause us to record additional material credit losses in future periods.

A summary of our allowances for credit losses

were

as follows (

in thousands


				Prepaid		Other
	Accounts			and other		non-current
	receivable			current assets		assets
Balance at January 1, 2020	$	686		$	—	$	—
Cumulative-effect adjustment of ASC 326 adoption		1,386			356		1,923
Current-period provision for expected credit losses (1)		1,935			641		4,188
Write-offs charged against the allowances		—			—		—
Other, including dispositions and foreign currency		(37	)		—		—

Balance at March 31, 2020	$	3,970		$	997	$	6,111

(1)

The current-period provision for expected credit losses was due primarily to the impact of

COVID-19.

One international airline partner in particular accounted for approximately 70% of the provision recorded during the three month period ended March 31, 2020. Subsequent to March 31, 2020, such airline partner’s financial condition continued to deteriorate and we expect to record additional credit losses during the three month period ending June 30, 2020.

Warranties —

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 unaudited condensed consolidated balance sheets. Our warranty reserve balance was $12.6 million and $13.2 million, respectively, as of March 31, 2020 and December 31, 2019.

Long-Term Debt and Other Liabilities

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Long-Term Debt and Other Liabilities

10. Long-Term Debt and Other Liabilities

Long-term debt as of March 31, 2020 and December 31, 2019 was as follows (

in thousands


	March 31,			December 31,
	2020			2019
2024 Senior Secured Notes	$	921,310		$	921,137
2022 Convertible Notes		205,020			201,868
ABL Credit Facility		22,000			—
2020 Convertible Notes		—			2,498

Total debt		1,148,330			1,125,503
Less deferred financing costs		(23,617	)		(24,255	)

Total long-term debt	$	1,124,713		$	1,101,248

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

(the “First Supplemental 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 (as defined below) by $20 million in aggregate principal amount. On March 6, 2020,

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

entered into a second supplemental indenture (together with the Base Indenture and the First Supplemental Indenture, the “2024 Indenture”) to

add Gogo International as a guarantor

the 2024 Indenture. 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 March 31, 2020 and December 31, 2019, the outstanding principal amount of the 2024 Senior Secured Notes was $925.0 million for both dates, the unaccreted debt discount was $3.7 million and $3.9 million, respectively, and the net carrying amount was $921.3 million and $921.1 million, respectively.

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).

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 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 unaudited condensed consolidated balance sheet are being amortized over the contractual term of the 2024 Senior Secured Notes using the effective interest method. Total amortization expense was $0.9 million for the three month period ended March 31, 2020. Amortization expense is included in interest expense in the unaudited condensed consolidated statements of operations. As of March 31, 2020 and December 31, 2019, the balance of unamortized deferred financing costs related to the 2024 Senior Secured Notes was $18.9 million and $19.7 million, respectively, and was included as a reduction to long-term debt in our unaudited condensed consolidated balance sheet. See Note 11, “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 (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 March 31, 2020, 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 March 31, 2020 and December 31, 2019, $22.0 million and zero, was outstanding under the ABL Credit Facility, respectively.

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 March 31, 2020, 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.

We paid approximately $0.9 million of origination fees and financing costs related to the issuance of the ABL Credit Facility, which have been accounted for as deferred financing costs. The deferred financing costs on our unaudited condensed consolidated balance sheet are being amortized over the contractual term of the ABL Credit Facility using the effective interest method. Total amortization expense was $0.1 million for the three month period ended March 31, 2020. Amortization expense is included in interest expense in the unaudited condensed consolidated statements of operations. As of March 31, 2020 and December 31, 2019, the balance of unamortized deferred financing costs related to the ABL Credit Facility was $0.7 million and $0.8 million, respectively, and is included as a reduction to long-term debt in our unaudited condensed consolidated balance sheet. See Note 11, “Interest Costs,” for additional information.

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 (as amended and supplemented thereafter, the “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 25, 2017, the Issuers issued $100 million aggregate principal amount of additional 12.500% senior secured notes due 2022 (the “September 2017 Additional Notes”). 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 $0.8 million for the three month period ended March 31, 2019. Amortization expense is included in interest expense in the unaudited condensed 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 11, “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 March 31, 2020 and December 31, 2019, the outstanding principal on the 2022 Convertible Notes was $237.8 million on both dates, the unaccreted debt discount was $32.7 million and $35.9 million, respectively, and the net carrying amount of the liability component was $205.0 million and $201.9 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 $0.4 million for each of the three month periods ended March 31, 2020 and 2019. Amortization expense is included in interest expense in the consolidated statements of operations. As of March 31, 2020 and December 31, 2019, the balance of unamortized deferred financing costs related to the 2022 Convertible Notes was $4.1 million and $4.5 million, respectively, and is included as a reduction to long-term debt in our consolidated balance sheets. See Note 11, “Interest Costs,” for additional information.

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

if-converted

method as their impact is anti-dilutive.

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

•

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

•

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

•

upon the occurrence of specified corporate events.

None of the above events allowing for conversion prior to January 15, 2022 occurred during the three month period ended March 31, 2020 or 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. The 2020 Convertible Notes that were not repurchased prior to maturity, as described below, matured on March 1, 2020. We paid interest on the 2020 Convertible Notes semi-annually in arrears on March 1 and September 1 of each year from September 1, 2015 through March 1, 2020. 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 remaining $2.5 million of outstanding 2020 Convertible Notes matured on March 1, 2020 and we repaid the remaining outstanding aggregate principle amount of the 2020 Convertible Notes, plus accrued and unpaid interest, in order to satisfy our obligations

in full and retire

the securities.

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 11, “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 noted above, the 2020 Convertible Notes were no longer outstanding upon maturity on March 1, 2020. As of December 31, 2019, the outstanding principal on the 2020 Convertible Notes and the net carrying amount of the liability component was $2.5 million and the unamortized debt discount was zero.

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 was amortized over the term of the 2020 Convertible Notes using the effective interest method. As of December 31, 2019, the balance of unamortized deferred financing costs related to the 2020 Convertible Notes was zero. Total amortization expense of the deferred financing costs was $0.2 million for the three month period ended March 31, 2019 and is included in interest expense in the unaudited condensed consolidated statements of operations. See Note 11, “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. The shares of common stock subject to conversion were excluded from diluted earnings per share calculations under the

if-converted

method as their impact was 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. During March 2020, approximately 5.1 million shares of common stock were delivered to us in connection with the Forward Transactions (as defined and described in Note

, “Long-Term Debt and Other Liabilities”). We accounted for these shares as Treasury Stock and reclassified $98.9 million from Additional

Paid-In

Capital to Treasury Stock, at cost, in our unaudited condensed consolidated balance sheet.

Restricted Cash

Our restricted cash balances were $5.2 million and $7.7 million, respectively, as of March 31, 2020 and December 31, 2019 and primarily consist of letters of credit. Certain of the letters of credit require us to maintain restricted cash accounts in a similar amount, and are issued for the benefit of the landlords at our current office locations in Chicago, IL, Bensenville, IL and Broomfield, CO.

Interest Costs

3 Months Ended

Mar. 31, 2020

Text Block [Abstract]

Interest Costs

11. Interest Costs

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

The following is a summary of our interest costs for the three month periods ended Mach 31, 2020 and 2019

(in thousands)


	For the Three Months
	Ended March 31,
	2020		2019
Interest costs charged to expense	$	26,429	$	26,531
Amortization of deferred financing costs		1,419		1,249
Accretion of debt discount		3,326		5,534
Amortization of debt premium		—		(760	)

Interest expense		31,174		32,554
Interest costs capitalized to property and equipment		—		4
Interest costs capitalized to software		89		125

Total interest costs	$	31,263	$	32,683

Leases

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

12. Leases

Operating and Financing Leases —

We determine whether a contract contains a lease at contract inception. For leases subsequent to adoption of ASC 842, lease liabilities are calculated using a discount rate based on our incremental borrowing rate at lease commencement. We have operating lease agreements for certain facilities and equipment as well as tower space and base stations. Certain tower space leases have renewal option terms that have been deemed to be reasonably certain to be exercised. These renewal options extend a lease up to 20 years. We recognize operating lease expense on a straight-line basis over the lease term. As of March 31, 2020, there are no significant leases which have not commenced.

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

(in thousands)


	For the Three		For the Three
	Months Ended		Months Ended
	March 31, 2020		March 31, 2019
Operating lease cost	$	4,857	$	4,918
Financing lease cost
Amortization of leased assets		91		205
Interest on lease liabilities		26		11

Total lease cost	$	4,974	$	5,134

Other information regarding our leases is as follows

(in thousands, except lease terms and discount rates)


	For the Three			For the Three
	Months Ended			Months Ended
	March 31, 2020			March 31, 2019
Supplemental cash flow information
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows used in operating leases	$	5,700		$	6,117
Operating cash flows used in financing leases		26			11
Financing cash flows used in financing leases		247			125
Non-cash items:
Operating leases obtained		7,274			279
Weighted average remaining lease term
Operating leases		8 years			9 years
Financing leases		2 years			1 year
Weighted average discount rate
Operating leases		9.4	%		10.3	%
Financing leases		8.3	%		8.7	%

Annual future minimum lease payments as of March 31, 2020

(in thousands)


	Operating			Financing
Years ending December 31,	Leases			Leases
2020 (period from April 1 to December 31)	$	12,456		$	529
2021		20,566			530
2022		18,994			451
2023		15,023			—
2024		11,451			—
Thereafter		56,550			—

Total future minimum lease payments		135,040			1,510
Less: Amount representing interest		(42,581	)		(124	)

Present value of net minimum lease payments	$	92,459		$	1,386

Reported as of March 31, 2020
Accrued liabilities	$	9,484		$	543
Non-current operating lease liabilities		82,975			—
Other non-current liabilities		—			843

Total lease liabilities	$	92,459		$	1,386

Arrangements with Commercial Airlines

—

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

Under the turnkey model, the assets are recorded as airborne equipment on our unaudited condensed consolidated balance sheets, as noted in Note

, “Composition of Certain Balance Sheet Accounts.” Any upfront equipment payments are accounted for as lease incentives and recorded as deferred airborne lease incentives on our unaudited condensed consolidated balance sheets and are recognized as a reduction of the cost of service revenue on a straight-line basis over the term of the agreement with the airline. We recognized $7.1 million and $9.0 million, respectively, for the three month periods ended March 31, 2020 and 2019 as a reduction to our cost of service revenue in our unaudited condensed consolidated statements of operations from the amortization of deferred airborne lease incentives. As of March 31, 2020, deferred airborne lease incentives of $30.7 million and $145.2 million, respectively, are included in current and

non-current

liabilities in our unaudited condensed consolidated balance sheet. 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 unaudited condensed consolidated balance sheet.

Under the turnkey model, the revenue share paid to our airline partners represents operating lease payments. They are deemed to be contingent rental payments, as the payments due to each airline are based on a percentage of our

CA-NA

and

CA-ROW

service revenue generated from that airline’s passengers, which is unknown until realized. Therefore, we cannot estimate the lease payments due to an airline at the commencement of our contract with such airline. This rental expense is included in cost of service revenue and is partially offset by the amortization of the deferred airborne lease incentives discussed above. Such rental expenses totaled a net charge of $4.6 million and $3.7 million, respectively, for the three month periods ended March 31, 2020 and 2019.

Commitments and Contingencies

3 Months Ended

Mar. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

13. 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 March 31, 2020 commit us to purchase transponder and teleport satellite services totaling approximately $101.0 million in 2020 (April 1 through December 31), $129.9 million in 2021, $110.0 million in 2022, $90.8 million in 2023, $85.4 million in 2024 and $259.4 million thereafter.

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

Damages and Penalties

We have entered into a number of agreements with our airline partners that require us to provide a credit or pay penalties or liquidated damages to our airline partners 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

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

inter partes

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

inter partes

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

Securities Litigation

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

10b-5

promulgated thereunder, alleging misrepresentations or omissions by us purporting to relate to our 2Ku antenna’s reliability and installation and remediation costs. The plaintiffs seek to recover from us and the individual defendants an unspecified amount of damages. In December 2018 the plaintiffs filed an amended complaint and in February 2019, we filed a motion to dismiss such amended complaint. In 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

On 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

sume

. The plaintiffs seek to recover, on our behalf, an unspecified amount of damages from the individual defendants. We have filed a claim with the issuer of our Directors’ and Officers’ insurance policy with respect to these suits. No amounts have been accrued for any potential costs under this matter, as we cannot reasonably predict the outcome of the litigation or any potential costs.

Fair Value of Financial Assets and Liabilities

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets and Liabilities

14. Fair Value of Financial Assets and Liabilities

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

•

Level

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

•

Level

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

•

Level

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

Long-Term Debt:

Our financial assets and liabilities that are disclosed but not measured at fair value include the 2024 Senior Secured Notes and the 2022 Convertible Notes, and, while outstanding, the 2020 Convertible 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, and, while outstanding, the 2020 Convertible 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 March 31, 2020 unaudited condensed consolidated balance sheet, excluding any issuance costs, are the amount that a market participant would be willing to lend at March 31, 2020 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, while outstanding, the 2020 Convertible Notes. The calculated fair value of each of the 2022 Convertible Notes and, while outstanding,

the

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 March 31, 2020 and December 31, 2019 were as follows

(in thousands)


	March 31, 2020					December 31, 2019
	Fair Value (1)		Carrying Value			Fair Value (1)		Carrying Value
2024 Senior Secured Notes	$	731,000	$	921,310	(2)	$	982,000	$	921,137	(2)
2022 Convertible Notes		177,000		205,020	(3)		297,000		201,868	(3)
2020 Convertible Notes		—		—			2,498		2,498

(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 $3.7 million and $3.9 million, respectively, as of March 31, 2020 and December 31, 2019. See Note 10, “Long-Term Debt and Other Liabilities,” for further information.

(3)	Carrying value of the 2022 Convertible Notes reflects the unaccreted debt discount of $32.7 million and $35.9 million, respectively, as of March 31, 2020 and December 31, 2019. See Note 10, “Long-Term Debt and Other Liabilities,” for further information.

We have

held-to-maturity

financial instruments where carrying value approximates fair value. There were no fair value adjustments to these financial instruments during the three month periods ended March 31, 2020 and 2019.

- Definition

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

+ References + Details

Income Tax

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Income Tax

15. Income Tax

The effective income tax rates for the three month periods ended March 31, 2020 and 2019 were (0.2)% and (1.2)%, respectively. For the three month periods ended March 31, 2020 and 2019, our income tax expense was not significant primarily due to the full valuation allowance against our net deferred tax assets.

We are subject to income taxation in the United States, various states within the United States, Canada, Switzerland, Japan, Mexico, Brazil, Singapore, the United Kingdom, Hong Kong, Australia, China, India, France, Germany and the Netherlands. With few exceptions, as of March 31, 2020, we are no longer subject to U.S. federal, state, local or foreign examinations by tax authorities for years before 2016.

We record penalties and interest relating to uncertain tax positions in the income tax provision line item in the unaudited condensed consolidated statement of operations. No penalties or interest related to uncertain tax positions were recorded for the three month periods ended March 31, 2020 and 2019. As of March 31, 2020 and December 31, 2019, we did not have a liability recorded for interest or potential penalties.

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

Business Segments and Major Customers

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Business Segments and Major Customers

16. Business Segments and Major Customers

We operate our business through three operating segments: Commercial Aviation North America, or

“CA-NA,”

Commercial Aviation Rest of World, or

“CA-ROW,”

and Business Aviation, or “BA.” See Note 1, “Basis of Presentation,” for further information regarding our segments.

The accounting policies of the operating segments are the same as those described in Note 2, “Summary of Significant Accounting Policies,” in our 2019

10-K.

Intercompany transactions between segments are excluded as they are not included in management’s performance review of the segments. For the three month periods ended March 31, 2020 and 2019, our foreign revenue accounted for less than 15% of our consolidated revenue. We do not segregate assets between segments for internal reporting. Therefore, asset-related information has not been presented. Additionally, assets outside of the United States totaled less than 15% of our unaudited condensed consolidated assets as of March 31, 2020 and December 31, 2019, respectively. For our airborne assets, we consider only those assets installed in aircraft associated with international commercial airline partners to be owned outside of the United States.

Management evaluates performance and allocates resources to each segment based on 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 stock-based compensation expense, amortization of deferred airborne lease incentives, amortization of STC costs, impairment of

long-lived assets, impairment of

cost-basis investment and proceeds from litigation settlement) 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.

As noted in our 2019

10-K,

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). As such, all amounts for the three month period ended March 31, 2019 have been recast to conform to the current year’s presentation. Beginning in 2020, we adopted a new allocation methodology for the ATG network costs utilizing aircraft online, pricing and usage for each of

CA-NA

and BA. Under this new methodology, BA will continue to be allocated the majority of the ATG network costs.

Information regarding our reportable segments is as follows (

in thousands


	For the Three Months Ended March 31, 2020
	CA-NA		CA-ROW			BA		Total
Service revenue	$	73,828	$	19,228		$	57,726	$	150,782
Equipment revenue		6,308		14,184			13,201		33,693

Total revenue	$	80,136	$	33,412		$	70,927	$	184,475

Reportable segment profit (loss)	$	15,883	$	(17,371	)	$	35,854	$	34,366


	For the Three Months Ended March 31, 2019
	CA-NA		CA-ROW			BA		Total
Service revenue	$	92,027	$	19,772		$	53,213	$	165,012
Equipment revenue		4,042		13,159			17,336		34,537

Total revenue	$	96,069	$	32,931		$	70,549	$	199,549

Reportable segment profit (loss)	$	30,662	$	(18,193	)	$	33,755	$	46,224

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

in thousands


	For the Three Months Ended March 31,
	2020			2019
CA-NA segment profit	$	15,883		$	30,662
CA-ROW segment loss		(17,371	)		(18,193	)
BA segment profit		35,854			33,755

Total reportable segment profit		34,366			46,224
Unallocated corporate costs (1)		(8,636	)		(8,333	)
Interest income		606			1,149
Interest expense		(31,174	)		(32,554	)
Depreciation and amortization		(32,670	)		(30,749	)
Amortization of deferred airborne lease incentives		7,071			8,953
Amortization of STC costs		(807	)		(320	)
Stock-based compensation expense		(3,995	)		(4,327	)
Impairment of long-lived assets		(46,389	)		—
Impairment of cost-basis investment		(3,000	)		—
Proceeds from litigation settlement		—			3,215
Other income		7			150

Loss before income taxes	$	(84,621	)	$	(16,592	)

(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 $1.6 million and $1.5 million, respectively, for the three month periods ending March 31, 2020 and 2019.

Major Customers and Airline Partnerships

—

Revenue earned from Delta Air Lines and its passengers accounted for approximately 28% and 29% of consolidated revenue, respectively, for the three month periods ended March 31, 2020 and 2019. Delta Air Lines accounted for approximately 16% and 11% of consolidated accounts receivable, respectively, as of March 31, 2020 and December 31, 2019.

Employee Retirement and Postretirement Benefits

3 Months Ended

Mar. 31, 2020

Text Block [Abstract]

Employee Retirement and Postretirement Benefits

17. Employee Retirement and Postretirement Benefits

Stock-Based Compensation

—

As of March 31, 2020, we maintained three stock-based incentive compensation plans (“Stock Plans”), as well as an Employee Stock Purchase Plan (“ESPP”). See Note 12, “Stock-Based Compensation,” in our 2019

10-K

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

Effective March 17, 2020, the performance-vesting conditions for all outstanding options to purchase shares of common stock and restricted stock units (“RSUs”) subject to both service and performance vesting requirements that were granted in 2017, 2018, and 2019 were eliminated. The performance modification resulted in the immediate issuance of 186,139 shares of common stock, corresponding to the portion of RSUs for which service-vesting dates had previously elapsed.

For the three month period ended March 31, 2020, options to purchase 1,121,402 shares of common stock were granted, no options to purchase shares of common stock were exercised, options to purchase 25,747 shares of common stock were forfeited, and options to purchase 1,906,849 shares of common stock expired.

For the three month period ended March 31, 2020, 2,953,496 RSUs

were granted, 752,342 RSUs vested

(of which 186,139 were RSUs that fully and immediately vested in connection with the performance modification)

and 87,138 RSUs were forfeited.

For the three month period ended March 31, 2020, 8,227 restricted shares vested and no shares were cancelled. These shares are deemed issued as of the date of grant, but not outstanding until they vest.

For the three month period ended March 31, 2020, 124,996 Deferred Stock Units were granted and 26,508 vested.

For the three month period ended March 31, 2020, 87,681 shares of common stock were issued under the ESPP.

On April 29, 2020, our stockholders approved a stock option exchange program that, when commenced, will provide eligible employees (which includes all current employees and executive officers and excludes all

non-executive

members of our board of directors) with the opportunity to exchange certain eligible options for a lesser number of replacement options, subject to certain terms and conditions.

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

(in thousands)


	For the Three Months Ended March 31,
	2020		2019
Cost of service revenue	$	477	$	428
Cost of equipment revenue		73		71
Engineering, design and development		753		774
Sales and marketing		752		970
General and administrative		1,940		2,084

Total stock-based compensation expense	$	3,995	$	4,327

401(k)

Plan

—

Under our 401(k) plan, all employees who are eligible to participate are entitled to make

tax-deferred

contributions, subject to Internal Revenue Service limitations. We match 100% of the employee’s first 4% of contributions made, subject to annual limitations. Our matching contributions were $1.2 million and $1.2 million, respectively, during the three month periods ended March 31, 2020 and 2019.

Research and Development Costs

3 Months Ended

Mar. 31, 2020

Research and Development [Abstract]

Research and Development Costs

18. Research and Development Costs

Expenditures for research and development are charged to expense as incurred and totaled $15.7 million and $14.1 million, respectively, during the three month periods ended March 31, 2020 and 2019. Research and development costs are reported as a component of engineering, design and development expenses in our unaudited condensed consolidated statements of operations.

Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Basis of Presentation

The Business

Gogo (“we,” “us,” “our”) is the global leader in providing

broadband connectivity solutions and wireless

in-flight

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

“CA-NA,”

Commercial Aviation Rest of World, or

“CA-ROW,”

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

CA-NA

and

CA-ROW

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

Wi-Fi-enabled

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

in-flight

entertainment options on their personal

Wi-Fi

CA-NA

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

CA-ROW

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

CA-ROW

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

in-flight

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

in-flight

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

in-flight

broadband service, Passenger Entertainment, our

in-flight

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

Basis of Presentation

S-X

10-K

for the year ended December 31, 2019 as filed with the Securities and Exchange Commission (“SEC”) on March 13, 2020 (the “2019

10-K”).

The results of operations and cash flows for the three month period ended March 31, 2020, including the impact of

COVID-19,

are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2020.

We have one class of common stock outstanding as of March 31, 2020 and December 31, 2019.

During March 2020, approximately 5.1 million shares of common stock were delivered to us in connection with the Forward Transactions (as defined and described in Note

, “Long-Term Debt and Other Liabilities”). We accounted for these shares as Treasury Stock and reclassified $98.9 million from Additional

Paid-In

Capital to Treasury Stock, at cost, in our unaudited condensed consolidated balance sheet. See Note 10, “Long-Term Debt and Other Liabilities,” for additional information.

Reclassifications

–

To conform with the current year presentation, $84 thousand of bad debt expense has been reclassified to a separate line from accounts receivable for the three month period ended March 31, 2019.

Use of Estimates

Recent Accounting Pronouncements (Tables)

3 Months Ended

Mar. 31, 2020

Accounting Changes and Error Corrections [Abstract]

Summary of Adoption Impact of ASC 326 on Unaudited Condensed Consolidated Balance Sheet


	Balance at December 31, 2019			Impact of ASC 326			Balances with Adoption of ASC 326
Assets
Accounts receivable		101,360			(1,386	)		99,974
Prepaid and other current assets		36,305			(356	)		35,949
Other non-current assets		89,672			(1,923	)		87,749
Equity
Accumulated deficit		(1,376,142	)		(3,665	)		(1,379,807	)

Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2020

Summary of Revenue Disaggregated by Category

The following table presents our revenue disaggregated by category

(in thousands)


	For the Three Months Ended March 31, 2020
	CA-NA		CA-ROW		BA		Total
Service revenue
Connectivity	$	68,869	$	18,029	$	56,975	$	143,873
Entertainment, CAS and other		4,959		1,199		751		6,909

Total service revenue	$	73,828	$	19,228	$	57,726	$	150,782

Equipment revenue
ATG	$	4,396	$	—	$	9,624	$	14,020
Satellite		1,832		14,184		3,374		19,390
Other		80		—		203		283

Total equipment revenue	$	6,308	$	14,184	$	13,201	$	33,693

Customer type
Airline passenger and aircraft owner/operator	$	43,702	$	6,517	$	57,726	$	107,945
Airline, OEM and aftermarket dealer		26,258		25,399		13,201		64,858
Third party		10,176		1,496		—		11,672

Total revenue	$	80,136	$	33,412	$	70,927	$	184,475


	For the Three Months Ended March 31, 2019
	CA-NA		CA-ROW		BA		Total
Service revenue
Connectivity	$	79,818	$	18,854	$	52,685	$	151,357
Entertainment, CAS and other		12,209		918		528		13,655

Total service revenue	$	92,027	$	19,772	$	53,213	$	165,012

Equipment revenue
ATG	$	2,872	$	—	$	11,335	$	14,207
Satellite		630		13,159		5,235		19,024
Other		540		—		766		1,306

Total equipment revenue	$	4,042	$	13,159	$	17,336	$	34,537

Customer type
Airline passenger and aircraft owner/operator	$	54,349	$	5,851	$	53,213	$	113,413
Airline, OEM and aftermarket dealer		30,913		25,491		17,336		73,740
Third party		10,807		1,589		—		12,396

Total revenue	$	96,069	$	32,931	$	70,549	$	199,549

Net Loss Per Share (Tables)

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

in thousands, except per share amounts


	For the Three Months Ended March 31,
	2020			2019
Net loss	$	(84,778	)	$	(16,799	)
Less: Participation rights of the Forward Transactions		—			—

Undistributed losses	$	(84,778	)	$	(16,799	)

Weighted-average common shares outstanding-basic and diluted		81,205			80,446

Net loss attributable to common stock per share-basic and diluted	$	(1.04	)	$	(0.21	)

Inventories (Tables)

3 Months Ended

Mar. 31, 2020

Inventory Disclosure [Abstract]

Components of Inventories

Inventories as of March 31, 2020 and December 31, 2019 were as follows (

in thousands


	March 31,		December 31,
	2020		2019
Work-in-process component parts	$	23,585	$	23,141
Finished goods		99,594		94,003

Total inventory	$	123,179	$	117,144

Composition of Certain Balance Sheet Accounts (Tables)

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets as of March 31, 2020 and December 31, 2019 were as follows (

in thousands


	March 31,		December 31,
	2020		2019
Contract assets, net of allowances of $997 and $0, respectively (1)	$	14,319	$	12,364
Prepaid satellite services		7,970		11,299
Restricted cash		560		560
Other		13,613		12,082

Total prepaid expenses and other current assets	$	36,462	$	36,305

(1)	Allowance for contract assets as of March 31, 2020 is due to the adoption of ASC 326. See Note 9, “Composition of Certain Reserves and Allowances,” for additional information.

Property and Equipment

Property and equipment as of March 31, 2020 and December 31, 2019 were as follows (

in thousands


	March 31,			December 31,
	2020			2019
Office equipment, furniture, fixtures and other	$	56,482		$	56,205
Leasehold improvements		44,403			44,389
Airborne equipment (1)		709,980			737,593
Network equipment		225,169			229,451

		1,036,034			1,067,638
Accumulated depreciation		(530,450	)		(507,320	)

Total property and equipment, net	$	505,584		$	560,318

(1)	Decrease in A irborne equipment is due primarily to the impairment of airborne equipment associated with three of our airline agreements. See below for additional information.

Schedule of Other Non-Current Assets

Other

non-current

assets as of March 31, 2020 and December 31, 2019 were as follows (

in thousands


	March 31,		December 31,
	2020		2019
Contract assets, net of allowances of $6,111 and $0, respectively (1)	$	56,516	$	51,829
Deferred STC costs		16,475		17,453
Restricted cash		4,601		7,099
Other (2)		8,637		13,291

Total other non-current assets	$	86,229	$	89,672

(1)	Allowances for contract assets as of March 31, 2020 is due to the adoption of ASC 326. See Note 9, “Composition of Certain Reserves and Allowances,” for additional information.

(2)	Decrease due in part to the $3.0 million impairment of a cost-basis investment which is included in Other (income) expense within our unaudited condensed consolidated statements of operations for the three month period ended March 31, 2020.

Accrued Liabilities


	March 31,		December 31,
	2020		2019
Airline related accrued liabilities	$	40,882	$	43,592
Accrued interest		43,461		17,048
Employee compensation and benefits		15,136		29,954
Accrued satellite network costs		19,438		13,843
Warranty reserve		12,639		13,165
Operating leases		9,484		12,241
Airborne equipment and installation costs		4,293		11,466
Other		30,905		32,802

Total accrued liabilities	$	176,238	$	174,111

Other Non-Current Liabilities

Other

non-current

liabilities as of March 31, 2020 and December 31, 2019 were as follows (

in thousands


	March 31,		December 31,
	2020		2019
Deferred revenue	$	29,433	$	21,889
Asset retirement obligations		11,773		11,560
Deferred tax liabilities		2,384		2,340
Other		10,203		10,704

Total other non-current liabilities	$	53,793	$	46,493

Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets, Other than Goodwill

Our intangible assets, other than goodwill, as of March 31, 2020 and December 31, 2019 were as follows (

in thousands, except for weighted average remaining useful life


	Weighted
	Average		As of March 31, 2020							As of December 31, 2019
	Remaining		Gross					Net		Gross					Net
	Useful Life		Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
	(in years)		Amount		Amortization			Amount		Amount		Amortization			Amount
Amortized intangible assets:
Software		2.5	$	180,568	$	(139,943	)	$	40,625	$	177,190	$	(135,154	)	$	42,036
Other intangible assets		7.8		3,000		(1,445	)		1,555		3,000		(1,440	)		1,560
Service customer relationships				8,081		(8,081	)		—		8,081		(8,081	)		—
OEM and dealer relationships				6,724		(6,724	)		—		6,724		(6,724	)		—

Total amortized intangible assets				198,373		(156,193	)		42,180		194,995		(151,399	)		43,596

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

Total intangible assets			$	230,656	$	(156,193	)	$	74,463	$	227,278	$	(151,399	)	$	75,879

Summary of Amortization Expenses

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

in thousands


Years ending December 31,	Amortization Expense
2020 (period from April 1 to December 31)	$	13,092
2021	$	14,451
2022	$	9,670
2023	$	2,808
2024	$	547
Thereafter	$	1,612

Composition of Certain Reserves and Allowances (Tables)

3 Months Ended

Mar. 31, 2020

Allowance for Credit Loss [Abstract]

Summary of our allowances for credit losses

A summary of our allowances for credit losses

were

as follows (

in thousands


				Prepaid		Other
	Accounts			and other		non-current
	receivable			current assets		assets
Balance at January 1, 2020	$	686		$	—	$	—
Cumulative-effect adjustment of ASC 326 adoption		1,386			356		1,923
Current-period provision for expected credit losses (1)		1,935			641		4,188
Write-offs charged against the allowances		—			—		—
Other, including dispositions and foreign currency		(37	)		—		—

Balance at March 31, 2020	$	3,970		$	997	$	6,111

(1)

The current-period provision for expected credit losses was due primarily to the impact of

COVID-19.

Long-Term Debt and Other Liabilities (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

Long-term debt as of March 31, 2020 and December 31, 2019 was as follows (

in thousands


	March 31,			December 31,
	2020			2019
2024 Senior Secured Notes	$	921,310		$	921,137
2022 Convertible Notes		205,020			201,868
ABL Credit Facility		22,000			—
2020 Convertible Notes		—			2,498

Total debt		1,148,330			1,125,503
Less deferred financing costs		(23,617	)		(24,255	)

Total long-term debt	$	1,124,713		$	1,101,248

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))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-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
-SubTopic 10
-Section 50
-Paragraph 7
-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)

3 Months Ended

Mar. 31, 2020

Text Block [Abstract]

Summary of Interest Costs

The following is a summary of our interest costs for the three month periods ended Mach 31, 2020 and 2019

(in thousands)


	For the Three Months
	Ended March 31,
	2020		2019
Interest costs charged to expense	$	26,429	$	26,531
Amortization of deferred financing costs		1,419		1,249
Accretion of debt discount		3,326		5,534
Amortization of debt premium		—		(760	)

Interest expense		31,174		32,554
Interest costs capitalized to property and equipment		—		4
Interest costs capitalized to software		89		125

Total interest costs	$	31,263	$	32,683

Leases (Tables)

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Lease expense included in the unaudited condensed consolidated statements of operations

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

(in thousands)


	For the Three		For the Three
	Months Ended		Months Ended
	March 31, 2020		March 31, 2019
Operating lease cost	$	4,857	$	4,918
Financing lease cost
Amortization of leased assets		91		205
Interest on lease liabilities		26		11

Total lease cost	$	4,974	$	5,134

Schedule Includes Other information About Leases

Other information regarding our leases is as follows

(in thousands, except lease terms and discount rates)


	For the Three			For the Three
	Months Ended			Months Ended
	March 31, 2020			March 31, 2019
Supplemental cash flow information
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows used in operating leases	$	5,700		$	6,117
Operating cash flows used in financing leases		26			11
Financing cash flows used in financing leases		247			125
Non-cash items:
Operating leases obtained		7,274			279
Weighted average remaining lease term
Operating leases		8 years			9 years
Financing leases		2 years			1 year
Weighted average discount rate
Operating leases		9.4	%		10.3	%
Financing leases		8.3	%		8.7	%

Annual future minimum lease payments

Annual future minimum lease payments as of March 31, 2020

(in thousands)


	Operating			Financing
Years ending December 31,	Leases			Leases
2020 (period from April 1 to December 31)	$	12,456		$	529
2021		20,566			530
2022		18,994			451
2023		15,023			—
2024		11,451			—
Thereafter		56,550			—

Total future minimum lease payments		135,040			1,510
Less: Amount representing interest		(42,581	)		(124	)

Present value of net minimum lease payments	$	92,459		$	1,386

Reported as of March 31, 2020
Accrued liabilities	$	9,484		$	543
Non-current operating lease liabilities		82,975			—
Other non-current liabilities		—			843

Total lease liabilities	$	92,459		$	1,386

Fair Value of Financial Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2020

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 March 31, 2020 and December 31, 2019 were as follows

(in thousands)


	March 31, 2020					December 31, 2019
	Fair Value (1)		Carrying Value			Fair Value (1)		Carrying Value
2024 Senior Secured Notes	$	731,000	$	921,310	(2)	$	982,000	$	921,137	(2)
2022 Convertible Notes		177,000		205,020	(3)		297,000		201,868	(3)
2020 Convertible Notes		—		—			2,498		2,498

(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 $3.7 million and $3.9 million, respectively, as of March 31, 2020 and December 31, 2019. See Note 10, “Long-Term Debt and Other Liabilities,” for further information.

(3)	Carrying value of the 2022 Convertible Notes reflects the unaccreted debt discount of $32.7 million and $35.9 million, respectively, as of March 31, 2020 and December 31, 2019. See Note 10, “Long-Term Debt and Other Liabilities,” for further information.

Business Segments and Major Customers (Tables)

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Summary of Reportable Segments

Information regarding our reportable segments is as follows (

in thousands


	For the Three Months Ended March 31, 2020
	CA-NA		CA-ROW			BA		Total
Service revenue	$	73,828	$	19,228		$	57,726	$	150,782
Equipment revenue		6,308		14,184			13,201		33,693

Total revenue	$	80,136	$	33,412		$	70,927	$	184,475

Reportable segment profit (loss)	$	15,883	$	(17,371	)	$	35,854	$	34,366


	For the Three Months Ended March 31, 2019
	CA-NA		CA-ROW			BA		Total
Service revenue	$	92,027	$	19,772		$	53,213	$	165,012
Equipment revenue		4,042		13,159			17,336		34,537

Total revenue	$	96,069	$	32,931		$	70,549	$	199,549

Reportable segment profit (loss)	$	30,662	$	(18,193	)	$	33,755	$	46,224

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 Three Months Ended March 31,
	2020			2019
CA-NA segment profit	$	15,883		$	30,662
CA-ROW segment loss		(17,371	)		(18,193	)
BA segment profit		35,854			33,755

Total reportable segment profit		34,366			46,224
Unallocated corporate costs (1)		(8,636	)		(8,333	)
Interest income		606			1,149
Interest expense		(31,174	)		(32,554	)
Depreciation and amortization		(32,670	)		(30,749	)
Amortization of deferred airborne lease incentives		7,071			8,953
Amortization of STC costs		(807	)		(320	)
Stock-based compensation expense		(3,995	)		(4,327	)
Impairment of long-lived assets		(46,389	)		—
Impairment of cost-basis investment		(3,000	)		—
Proceeds from litigation settlement		—			3,215
Other income		7			150

Loss before income taxes	$	(84,621	)	$	(16,592	)

(1)

Employee Retirement and Postretirement Benefits (Tables)

3 Months Ended

Mar. 31, 2020

Text Block [Abstract]

Summary of Stock-Based Compensation Expense by Operating Expense

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

(in thousands)


	For the Three Months Ended March 31,
	2020		2019
Cost of service revenue	$	477	$	428
Cost of equipment revenue		73		71
Engineering, design and development		753		774
Sales and marketing		752		970
General and administrative		1,940		2,084

Total stock-based compensation expense	$	3,995	$	4,327

Basis of Presentation - Additional Information (Detail) $ in Thousands, shares in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2020 USD ($) ClassOfCommonStock Segment shares	Mar. 31, 2019 USD ($)	Dec. 31, 2019 ClassOfCommonStock
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Treasury stock shares \| shares	5.1
Treasury stock, at cost	$ (98,857)
Number Of Classes Of Common Stock Outstanding \| ClassOfCommonStock	1		1
Number of Operating Segments \| Segment	3
Provision For Doubtful Accounts		$ 84

Impact of COVID-19 Pandemic - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($) Empolyees
Impact Of Coronavirus Global Pandemic [Line Items]
Credit facility available limit	$ 22
Amount of grant applied under CARES Act	81
Amount of loan applied under CARES Act	$ 150
Number Of Employees Working Remotely \| Empolyees	1,000
Workers' Compensation Discount, Description	We implemented several cost-cutting measures related to personnel, including implementing a hiring freeze, suspending 2020 merit salary increases and deferring the Chief Executive Officer’s 2019 bonus payout. Additionally, we furloughed approximately 54% of our workforce and reduced compensation for most other employees, starting May 4, 2020. The furloughs impact approximately 600 employees across the entire company. The time and duration of the furloughs will vary based on workload in individual departments. Salary reductions begin at 30% for the Chief Executive Officer, then 20% for the executive leadership team and reducing downward by staff level from there. In addition, the compensation for the members of our Board of Directors has been reduced by 30%. Certain types of employees, such as hourly workers, have not had their compensation reduced.
Revenue [Member] \| Two Commercial Airline Segments [Member]
Impact Of Coronavirus Global Pandemic [Line Items]
Concentration Risk, Percentage	60.00%
Revenue [Member] \| Aviation Segment [Member]
Impact Of Coronavirus Global Pandemic [Line Items]
Concentration Risk, Percentage	40.00%

Recent Accounting Pronouncements - Summary of Adoption Impact of ASC 326 on Unaudited Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Jan. 01, 2020	Dec. 31, 2019
Assets
Accounts receivable	$ 92,619		$ 101,360
Prepaid and other current assets	36,462		36,305
Other non-current assets	86,229		89,672
Equity
Accumulated deficit	$ (1,464,585)		(1,376,142)
Accounting Standards Update 2016-13 [Member]
Assets
Accounts receivable		$ 99,974
Prepaid and other current assets		35,949
Other non-current assets		87,749
Equity
Accumulated deficit		$ (1,379,807)
Difference Between Guidance in Effect Before and After ASC Three Two Six [Member] \| Accounting Standards Update 2016-13 [Member]
Assets
Accounts receivable			(1,386)
Prepaid and other current assets			(356)
Other non-current assets			(1,923)
Equity
Accumulated deficit			$ (3,665)

Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Revenue from Contracts with Customers [Line Items]
Transaction price allocated to remaining performance obligations	$ 585.0
Service revenue occurring period	1 year
Future equipment revenue recognition period	next one to three years
Contract with Customer, Asset, Allowance for Credit Loss	$ 7.1
Future Equipment Revenue [Member]
Revenue from Contracts with Customers [Line Items]
Equipment revenue	109.0
Connectivity and Entertainment Service Revenues [Member]
Revenue from Contracts with Customers [Line Items]
Transaction price allocated to remaining performance obligations	476.0
Airline [Member]
Revenue from Contracts with Customers [Line Items]
Contract assets, current and non-current	70.8		$ 64.2
Accounting Standards Update 2014-09 [Member]
Revenue from Contracts with Customers [Line Items]
Deferred revenue, current and non-current	57.9		56.7
Deferred STC costs	16.5		$ 17.5
Accounting Standards Update 2014-09 [Member] \| Engineering, Design and Development [Member]
Revenue from Contracts with Customers [Line Items]
Amortization expense	$ 0.8	$ 0.3

Net Loss Per Share - Additional Information (Detail) - shares shares in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Forward stock repurchase transaction shares, excluded from dilution effect	2.1	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
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Net loss	$ (84,778)	$ (16,799)
Less: Participation rights of the Forward Transactions
Undistributed losses	$ (84,778)	$ (16,799)
Weighted-average common shares outstanding-basic and diluted	81,205	80,446
Net loss attributable to common stock per share-basic and diluted	$ (1.04)	$ (0.21)

- Definition

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

+ References + Details

Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Work-in-process component parts	$ 23,585	$ 23,141
Finished goods	99,594	94,003
Total inventory	$ 123,179	$ 117,144

Composition of Certain Balance Sheet Accounts - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Prepaid Expense and Other Assets [Abstract]
Contract assets, net of allowances of $997 and $0, respectively	$ 14,319	$ 12,364
Prepaid satellite services	7,970	11,299
Restricted cash	560	560
Other	13,613	12,082
Total prepaid expenses and other current assets	$ 36,462	$ 36,305

Composition of Certain Balance Sheet Accounts - Schedule of Prepaid Expenses and Other Current Assets (Detail) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Prepaid Expense and Other Assets [Abstract]
Contract with Customer, Asset, Accumulated Allowance for Credit Loss, Current	$ 997	$ 0

Composition of Certain Balance Sheet Accounts - Property and Equipment (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,036,034	$ 1,067,638
Accumulated depreciation	(530,450)	(507,320)
Total property and equipment, net	505,584	560,318
Office Equipment, Furniture, Fixtures and Other [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	56,482	56,205
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	44,403	44,389
Airborne Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	709,980	737,593
Network Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 225,169	$ 229,451

Composition of Certain Balance Sheet Accounts - Schedule of Other Non-Current Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Other Assets, Noncurrent [Abstract]
Contract assets, net of allowances of $6,111 and $0, respectively	$ 56,516	$ 51,829
Deferred STC costs	16,475	17,453
Restricted cash	4,601	7,099
Other	8,637	13,291
Total other non-current assets	$ 86,229	$ 89,672

Composition of Certain Balance Sheet Accounts - Schedule of Other Non-Current Assets (Detail) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Other Assets, Noncurrent [Abstract]
Contract with Customer, Asset, Accumulated Allowance for Credit Loss, Noncurrent	$ 6,111	$ 0
Impairment of cost-basis investment	$ 3,000

Composition of Certain Balance Sheet Accounts - Additional Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Impairment of long-lived assets	$ 46,389

Composition of Certain Balance Sheet Accounts - Accrued Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Accrued Liabilities, Current [Abstract]
Airline related accrued liabilities	$ 40,882	$ 43,592
Accrued interest	43,461	17,048
Employee compensation and benefits	15,136	29,954
Airborne equipment and installation costs	4,293	11,466
Accrued satellite network costs	19,438	13,843
Warranty reserve	12,639	13,165
Operating leases	9,484	12,241
Other	30,905	32,802
Total accrued liabilities	$ 176,238	$ 174,111

Composition of Certain Balance Sheet Accounts - Other Non-Current Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Other Liabilities, Noncurrent [Abstract]
Deferred revenue	$ 29,433	$ 21,889
Asset retirement obligations	11,773	11,560
Deferred tax liabilities	2,384	2,340
Other	10,203	10,704
Total other non-current liabilities	$ 53,793	$ 46,493

Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 0.6		$ 0.6
Amortization expense	$ 4.8	$ 5.3

Intangible Assets - Schedule of Intangible Assets, Other than Goodwill (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Intangible Assets Net Excluding Goodwill [Line Items]
Total intangible assets, Gross Carrying Amount	$ 230,656	$ 227,278
Amortized intangible assets, Gross Carrying Amount	198,373	194,995
Amortized intangible assets, Accumulated Amortization	(156,193)	(151,399)
Amortized intangible assets, Net Carrying Amount	42,180	43,596
Total intangible assets, Net Carrying Amount	74,463	75,879
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 6 months
Amortized intangible assets, Gross Carrying Amount	$ 180,568	177,190
Amortized intangible assets, Accumulated Amortization	(139,943)	(135,154)
Amortized intangible assets, Net Carrying Amount	40,625	42,036
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)	(8,081)
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	(1,445)	(1,440)
Amortized intangible assets, Net Carrying Amount	$ 1,555	$ 1,560

Intangible Assets - Summary of Amortization Expenses (Detail) $ in Thousands	Mar. 31, 2020 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2019 (period from October 1 to December 31)	$ 13,092
2020	14,451
2021	9,670
2022	2,808
2023	547
Thereafter	$ 1,612

Composition of Certain Reserves and Allowances (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($)
Financing Receivable, Allowance for Credit Loss [Line Items]
Accounts Receivable, Balance at January 1, 2020	$ 686
Accounts Receivable, Cumulative-effect adjustment of ASC 326 adoption	1,386
Current-period provision for expected credit losses	1,935
Other, including dispositions and foreign currency	(37)
Accounts Receivable, Balance at March 31, 2020	3,970
Prepaid and other current assets
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing Receivable, Cumulative-effect adjustment of ASC 326 adoption	356
Financing Receivable, Current-period provision for expected credit losses	641
Financing Receivable, Balance at March 31, 2020	997
Other non-current assets
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing Receivable, Cumulative-effect adjustment of ASC 326 adoption	1,923
Financing Receivable, Current-period provision for expected credit losses	4,188
Financing Receivable, Balance at March 31, 2020	$ 6,111

Composition of Certain Reserves and Allowances - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Allowance for Credit Loss [Abstract]
Warranty reserve balance	$ 12,639	$ 13,165

Long-Term Debt and Other Liabilities - Additional Information (Detail)									1 Months Ended					3 Months Ended
	Mar. 01, 2020 USD ($)	Dec. 11, 2019 USD ($) 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 shares	Aug. 26, 2019 USD ($) ClassOfCommonStock Tradingday	May 03, 2019 USD ($)	Apr. 15, 2019 USD ($)	Nov. 30, 2018 USD ($)	Nov. 21, 2018 USD ($) $ / shares	Mar. 31, 2020 USD ($) shares	Mar. 31, 2019 USD ($) shares	Dec. 31, 2019 USD ($)	Sep. 25, 2017 USD ($)
Debt Instrument [Line Items]
Total debt														$ 1,148,330,000		$ 1,125,503,000
Amortization of deferred financing costs														1,419,000	$ 1,249,000
Additional paid-in-capital														$ 1,081,955,000		979,499,000
Forward stock repurchase transaction, shares \| shares														2,100,000	7,200,000
Repayment of convertible notes														$ 2,498,000
Margin On LIBOR									London inter-bank offered rate plus an applicable margin ranging from 1.50% to 2.00%
Line of Credit Facility, Current Borrowing Capacity														22,000,000
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														5,200,000		7,700,000
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]
Loan origination fees														900,000
Amortization of deferred financing costs														100,000
Debt issuance costs														700,000		800,000
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
Minimum Fixed Charge Coverage Ratio \| ClassOfCommonStock									100
Convertible Notes [Member]
Debt Instrument [Line Items]
Forward stock repurchase transaction, shares \| shares								7,200,000
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
Loan origination fees														15,900,000
Amortization of deferred financing costs											$ 690,000,000			800,000
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%
12.500% Senior Secured Notes Due 2022 [Member] \| Supplemental Indenture [Member]
Debt Instrument [Line Items]
Consent fees paid														$ 1,400,000
3.75% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount								$ 361,900,000
Interest rate								3.75%
Interest rate payable term								semi-annually
Amortization of deferred financing costs														$ 200,000
Option granted to initial purchasers								$ 60,000,000
Additional paid-in-capital								100,000,000
Convertible Notes, carrying amount of liability component								261,900,000								2,498,000
Effective interest rate on convertible notes														11.50%
Proceeds received from the issuance of the convertible notes								$ 361,900,000
Conversion rate								41.9274
Principal amount								$ 1,000
Conversion price \| $ / shares								$ 23.85
Forward stock repurchase transactions amount		$ 140,000,000						$ 140,000,000
Forward stock repurchase transaction, shares \| shares		2,100,000												5.1
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																2,500,000
Shares Purchased and Retired Under Forward Transactions \| shares														98,900,000
3.75% Convertible Senior Notes [Member] \| Issuance Costs [Member]
Debt Instrument [Line Items]
Loan origination fees														$ 10,400,000
Additional paid-in-capital														2,900,000
Issuance cost recorded to deferred financing costs														7,500,000
3.75% Convertible Senior Notes [Member] \| Institutional Buyers [Member]
Debt Instrument [Line Items]
Aggregate principal amount								340,000,000
Principal amount of Convertible Notes, subsequently exercised								$ 21,900,000
2024 Senior Secured Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount														925,000,000
Total debt														921,300,000		921,100,000
Convertible Notes, unamortized discount														3,700,000		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														400,000
Debt issuance costs														4,100,000
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	205,000,000		201,900,000
Effective interest rate on convertible notes													13.60%
Proceeds received from the issuance of the convertible notes													$ 237,800,000
Convertible Notes, unamortized discount														32,700,000		35,900,000
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																4,500,000
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														900,000
Debt issuance costs														$ 18,900,000		$ 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%											9.875%
Issue price as percentage of face value			100.50%
Proceeds from issuance of debt			$ 920,700,000
Accrued interest received			$ 100,000
9.875% Senior secured Notes Due On 2024 [Member] \| Condition One [Member]
Debt Instrument [Line Items]
Debt instrument redemption price percentage of principal amount redeemed														103.00%
Debt Instrument Redemption Price Aggregate Of Principal Amount Redeemable														$ 150,000,000
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	$ 2,500,000													$ 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	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Total debt	$ 1,148,330	$ 1,125,503
Less deferred financing costs	(23,617)	(24,255)
Total long-term debt	1,124,713	1,101,248
2024 Senior Secured Notes [Member]
Debt Instrument [Line Items]
Senior Secured Notes	921,310	921,137
Total debt	921,310	921,137
2022 Convertible Notes [Member]
Debt Instrument [Line Items]
Convertible Notes	205,020	201,868
2020 Convertible Notes [Member]
Debt Instrument [Line Items]
Convertible Notes		$ 2,498
ABL Credit Facility [Member]
Debt Instrument [Line Items]
Convertible Notes	$ 22,000

Long-Term Debt and Other Liabilities - Summary of Redemption Prices Plus Accrued and Unpaid Interest (Detail) - 2024 Senior Secured Notes [Member]	3 Months Ended
	Mar. 31, 2020
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	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Schedule Of Interest [Line Items]
Interest costs charged to expense	$ 26,429	$ 26,531
Amortization of deferred financing costs	1,419	1,249
Accretion of debt discount	3,326	5,534
Amortization of debt premium		(760)
Interest expense	31,174	32,554
Total interest costs	31,263	32,683
Property and Equipment [Member]
Schedule Of Interest [Line Items]
Interest costs capitalized		4
Software [Member]
Schedule Of Interest [Line Items]
Interest costs capitalized	$ 89	$ 125

Leases - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Leases [Line Items]
Amortization of deferred airborne lease incentives	$ 7,071	$ 8,953
Deferred airborne lease incentives included in current liabilities	30,718		$ 26,582
Deferred airborne lease incentives included in non-current liabilities	145,172		$ 135,399
Revenue share expense, net of amortization of deferred airborne lease incentives	$ 4,600	$ 3,700
Lessee operating lease option to extend	20 years

Leases - summary of our lease expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Operating lease cost	$ 4,857	$ 4,918
Finance lease cost
Amortization of leased assets	91	205
Interest on lease liabilities	26	11
Total lease cost	$ 4,974	$ 5,134

Leases - Other information regarding our leases (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows used in operating leases	$ 5,700	$ 6,117
Operating cash flows used in financing leases	26	11
Financing cash flows used in financing leases	247	125
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$ 7,274	$ 279
Weighted average remaining lease term
Operating leases	8 years	9 years
Financing leases	2 years	1 year
Weighted average discount rate
Operating leases	9.40%	10.30%
Financing leases	8.30%	8.70%

Leases - Annual Future Minimum Obligations for Operating Leases Other than Arrangements with Commercial Airline Partners (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Operating Leases
2020 (period from April 1 to December 31)	$ 12,456
2021	20,566
2022	18,994
2023	15,023
2024	11,451
Thereafter	56,550
Total future minimum lease payments	135,040
Less: Amount representing interest	(42,581)
Present value of net minimum lease payments	92,459
Accrued liabilities	9,484	$ 12,241
Non-current operating lease liabilities	82,975	$ 77,808
Total lease liabilities	92,459
Financing Leases
2020 (period from April 1 to December 31)	529
2021	530
2022	451
Total future minimum lease payments	1,510
Less: Amount representing interest	(124)
Present value of net minimum lease payments	1,386
Accrued liabilities	543
Other non-current liabilities	843
Total lease liabilities	$ 1,386

Commitments and Contingencies - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($)
Loss Contingencies [Line Items]
2020 (April 1 through December 31)	$ 101.0
2021	129.9
2022	110.0
2023	90.8
2024	85.4
Thereafter	$ 259.4
Linksmart Litigation [Member]
Loss Contingencies [Line Items]
Litigation filing date	April 20, 2018
Securities Litigation [Member]
Loss Contingencies [Line Items]
Litigation filing date	June 27, 2018
Derivative Litigation [Member]
Loss Contingencies [Line Items]
Litigation filing date	September 25, 2018 and September 26, 2018

Fair Value of Financial Assets and Liabilities - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]
Assets fair value adjustments	$ 0	$ 0

Fair Value of Financial Assets and Liabilities - Summary of Fair Value and Carrying Value of Long-Term Debt (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 03, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total debt	$ 1,148,330	$ 1,125,503
2024 Senior Secured Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value of Long Term Debt	731,000	982,000
Total debt	921,310	921,137
2022 Convertible Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value of Convertible Notes	177,000	297,000
Carrying Value of Convertible Notes	$ 205,020	201,868
2020 Convertible Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value of Convertible Notes		2,498
Carrying Value of Convertible Notes		$ 2,498	$ 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	Mar. 31, 2020	Dec. 31, 2019
2022 Convertible Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Unamortized Discount	$ 32.7	$ 35.9
2024 Senior Secured Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Unamortized Discount	$ 3.7	$ 3.9

Income Tax - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Tax Credit Carryforward [Line Items]
Unrecognized tax benefits	$ 0	$ 0
Effective income tax rate	(0.20%)	(1.20%)
Interest or penalties related to uncertain tax positions	$ 0	$ 0
Liabilities for interest and potential penalties	$ 0	$ 0

Business Segments and Major Customers - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue [Member] \| Customer Concentration Risk [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark	15.00%	15.00%
Revenue [Member] \| Customer Concentration Risk [Member] \| Delta Airline and American Airlines [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark	28.00%	29.00%
Accounts Receivable [Member] \| Delta Air Lines [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark	16.00%	11.00%

Business Segments and Major Customers - Summary of Reportable Segments (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting Information [Line Items]
Total revenue	$ 184,475	$ 199,549
Segment profit (loss)	34,366	46,224
Service [Member]
Segment Reporting Information [Line Items]
Total revenue	150,782	165,012
Product [Member]
Segment Reporting Information [Line Items]
Total revenue	33,693	34,537
CA-NA [Member]
Segment Reporting Information [Line Items]
Total revenue	80,136	96,069
Segment profit (loss)	15,883	30,662
CA-NA [Member] \| Service [Member]
Segment Reporting Information [Line Items]
Total revenue	73,828	92,027
CA-NA [Member] \| Product [Member]
Segment Reporting Information [Line Items]
Total revenue	6,308	4,042
CA-ROW [Member]
Segment Reporting Information [Line Items]
Total revenue	33,412	32,931
Segment profit (loss)	(17,371)	(18,193)
CA-ROW [Member] \| Service [Member]
Segment Reporting Information [Line Items]
Total revenue	19,228	19,772
CA-ROW [Member] \| Product [Member]
Segment Reporting Information [Line Items]
Total revenue	14,184	13,159
BA [Member]
Segment Reporting Information [Line Items]
Total revenue	70,927	70,549
Segment profit (loss)	35,854	33,755
BA [Member] \| Service [Member]
Segment Reporting Information [Line Items]
Total revenue	57,726	53,213
BA [Member] \| Product [Member]
Segment Reporting Information [Line Items]
Total revenue	$ 13,201	$ 17,336

Business Segments and Major Customers - Reconciliation of Segment Profit (loss) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment profit (loss)	$ 34,366	$ 46,224
Unallocated corporate costs	(8,636)	(8,333)
Interest income	606	1,149
Interest expense	(31,174)	(32,554)
Depreciation and amortization	(32,670)	(30,749)
Amortization of deferred airborne lease incentives	7,071	8,953
Amortization of STC costs	(807)	(320)
Stock-based compensation expense	(3,995)	(4,327)
Impairment of long-lived assets	(46,389)
Impairment of cost-basis investment	(3,000)
Proceeds from litigation settlement		3,215
Other income	7	150
Loss before income taxes	(84,621)	(16,592)
CA-NA [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment profit (loss)	15,883	30,662
CA-ROW [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment profit (loss)	(17,371)	(18,193)
BA [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment profit (loss)	$ 35,854	$ 33,755

Business Segments and Major Customers - Reconciliation of Segment Profit (loss) (Parenthetical) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Stock-based compensation expense	$ 3,995	$ 4,327
Unallocated Corporate Costs [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Stock-based compensation expense	$ 1,600	$ 1,500

Employee Retirement and Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Millions		3 Months Ended
	Mar. 17, 2020	Mar. 31, 2020	Mar. 31, 2019
Employee Contribution		100.00%
Percentage of employees contribution matched by the company			4.00%
Employer Contribution		$ 1.2	$ 1.2
Stock options, shares granted		1,121,402
Stock options exercised		25,747
Stock options, shares expired		1,906,849
Restricted Stock Units (RSUs) [Member]
Share units granted		2,953,496
Share units forfeited		87,138
Share units vested		752,342
Share units issued	186,139	186,139
Restricted Stock [Member]
Share units vested		8,227
Deferred Stock Units [Member]
Share units granted		124,996
Share units vested		26,508
Employee Stock Purchase Plan [Member]
Common stock, shares issued under ESPP		87,681

Employee Retirement and Postretirement Benefits - Summary of Stock-Based Compensation Expense by Operating Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 3,995	$ 4,327
Cost of Service Revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	477	428
Cost of Equipment Revenue [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	73	71
Engineering, Design and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	753	774
Sales and Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	752	970
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 1,940	$ 2,084

Research and Development Costs - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Research and Development Expense	$ 15.7	$ 14.1

Revenue Recognition - Summary of Revenue Disaggregated by Category (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	$ 184,475	$ 199,549
Airline Passenger and Aircraft Owner/Operator [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	107,945	113,413
Airline, OEM and Aftermarket Dealer [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	64,858	73,740
Third Party [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	11,672	12,396
Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	150,782	165,012
Service Revenue [Member] \| Connectivity [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	143,873	151,357
Service Revenue [Member] \| Entertainment, CAS and Other [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	6,909	13,655
Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	33,693	34,537
Equipment Revenue [Member] \| ATG [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	14,020	14,207
Equipment Revenue [Member] \| Satellite [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	19,390	19,024
Equipment Revenue [Member] \| Other [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	283	1,306
CA-NA [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	80,136	96,069
CA-NA [Member] \| Airline Passenger and Aircraft Owner/Operator [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	43,702	54,349
CA-NA [Member] \| Airline, OEM and Aftermarket Dealer [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	26,258	30,913
CA-NA [Member] \| Third Party [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	10,176	10,807
CA-NA [Member] \| Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	73,828	92,027
CA-NA [Member] \| Service Revenue [Member] \| Connectivity [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	68,869	79,818
CA-NA [Member] \| Service Revenue [Member] \| Entertainment, CAS and Other [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	4,959	12,209
CA-NA [Member] \| Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	6,308	4,042
CA-NA [Member] \| Equipment Revenue [Member] \| ATG [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	4,396	2,872
CA-NA [Member] \| Equipment Revenue [Member] \| Satellite [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	1,832	630
CA-NA [Member] \| Equipment Revenue [Member] \| Other [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	80	540
CA-ROW [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	33,412	32,931
CA-ROW [Member] \| Airline Passenger and Aircraft Owner/Operator [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	6,517	5,851
CA-ROW [Member] \| Airline, OEM and Aftermarket Dealer [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	25,399	25,491
CA-ROW [Member] \| Third Party [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	1,496	1,589
CA-ROW [Member] \| Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	19,228	19,772
CA-ROW [Member] \| Service Revenue [Member] \| Connectivity [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	18,029	18,854
CA-ROW [Member] \| Service Revenue [Member] \| Entertainment, CAS and Other [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	1,199	918
CA-ROW [Member] \| Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	14,184	13,159
CA-ROW [Member] \| Equipment Revenue [Member] \| Satellite [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	14,184	13,159
BA [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	70,927	70,549
BA [Member] \| Airline Passenger and Aircraft Owner/Operator [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	57,726	53,213
BA [Member] \| Airline, OEM and Aftermarket Dealer [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	13,201	17,336
BA [Member] \| Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	57,726	53,213
BA [Member] \| Service Revenue [Member] \| Connectivity [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	56,975	52,685
BA [Member] \| Service Revenue [Member] \| Entertainment, CAS and Other [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	751	528
BA [Member] \| Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	13,201	17,336
BA [Member] \| Equipment Revenue [Member] \| ATG [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	9,624	11,335
BA [Member] \| Equipment Revenue [Member] \| Satellite [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	3,374	5,235
BA [Member] \| Equipment Revenue [Member] \| Other [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	$ 203	$ 766