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Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Jun. 30, 2020	Aug. 07, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Entity Interactive Data Current	Yes
Entity Central Index Key	0001537054
Document Fiscal Period Focus	Q2
Document Period End Date	Jun. 30, 2020
Document Fiscal Year Focus	2020
Entity Registrant Name	Gogo Inc.
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Title of 12(b) Security	Common stock, par value $0.0001 per share
Entity Common Stock, Shares Outstanding		85,063,638
Entity Address, Country	IL
Document Transition Report	false
Document Quarterly Report	true
Entity File Number	001-35975
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-1650905
Entity Address, Address Line One	111 North Canal St.
Entity Address, Address Line Two	Suite 1500
Entity Address, City or Town	Chicago
Entity Address, Postal Zip Code	60606
City Area Code	312
Local Phone Number	517-5000
Trading Symbol	GOGO
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Shell Company	false

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 156,286	$ 170,016
Accounts receivable, net of allowances of $5,048 and $686, respectively	71,684	101,360
Inventories	130,092	117,144
Prepaid expenses and other current assets, net of allowances of $1,491 and $0, respectively	32,411	36,305
Total current assets	390,473	424,825
Non-current assets:
Property and equipment, net	463,147	560,318
Goodwill and intangible assets, net	74,407	76,499
Operating lease right-of-use assets	56,173	63,386
Other non-current assets, net of allowances of $9,568 and $0, respectively	80,615	89,672
Total non-current assets	674,342	789,875
Total assets	1,064,815	1,214,700
Current liabilities:
Accounts payable	41,412	17,160
Accrued liabilities	147,344	174,111
Deferred revenue	29,689	34,789
Deferred airborne lease incentives	73,166	26,582
Total current liabilities	291,611	252,642
Non-current liabilities:
Long-term debt	1,118,602	1,101,248
Deferred airborne lease incentives	89,283	135,399
Non-current operating lease liabilities	80,983	77,808
Other non-current liabilities	53,353	46,493
Total non-current liabilities	1,342,221	1,360,948
Total liabilities	1,633,832	1,613,590
Commitments and contingencies (Note 13)
Stockholders’ deficit
Common stock, par value $0.0001 per share; 500,000,000 shares authorized at June 30, 2020 and December 31, 2019; 84,058,310 and 88,292,821 shares issued at June 30, 2020 and December 31, 2019, respectively; and 84,032,343 and 88,240,877 shares outstanding at June 30, 2020 and December 31, 2019, respectively	8	9
Additional paid-in-capital	1,085,254	979,499
Accumulated other comprehensive loss	(4,858)	(2,256)
Treasury stock, at cost	(98,857)
Accumulated deficit	(1,550,564)	(1,376,142)
Total stockholders’ deficit	(569,017)	(398,890)
Total liabilities and stockholders’ deficit	$ 1,064,815	$ 1,214,700

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Allowances on accounts receivable	$ 5,048	$ 686
Prepaid expenses and other current assets	1,491	0
Other non-current assets, net of allowances	$ 9,568	$ 0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	84,058,310	88,292,821
Common stock, shares outstanding	84,032,343	88,240,877

Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue:
Total revenue	$ 96,640	$ 213,685	$ 281,115	$ 413,234
Operating expenses:
Cost of service revenue (exclusive of items shown below)	42,223	71,494	112,978	139,615
Cost of equipment revenue (exclusive of items shown below)	15,376	35,571	41,416	65,302
Engineering, design and development	15,409	26,912	38,272	51,640
Sales and marketing	5,880	12,994	15,532	25,312
General and administrative	22,505	27,081	49,671	49,535
Impairment of long-lived assets	987		47,376
Depreciation and amortization	48,690	29,967	81,360	60,716
Total operating expenses	151,070	204,019	386,605	392,120
Operating income (loss)	(54,430)	9,666	(105,490)	21,114
Other (income) expense:
Interest income	(81)	(1,230)	(687)	(2,379)
Interest expense	31,280	36,150	62,454	68,704
Loss on extinguishment of debt		57,962		57,962
Other (income) expense	233	443	3,226	(2,922)
Total other expense	31,432	93,325	64,993	121,365
Loss before income taxes	(85,862)	(83,659)	(170,483)	(100,251)
Income tax provision	117	304	274	511
Net loss	$ (85,979)	$ (83,963)	$ (170,757)	$ (100,762)
Net loss attributable to common stock per share—basic and diluted	$ (1.05)	$ (1.04)	$ (2.10)	$ (1.25)
Weighted average number of shares—basic and diluted	81,757	80,702	81,482	80,575
Service [Member]
Revenue:
Total revenue	$ 74,279	$ 173,731	$ 225,061	$ 338,743
Product [Member]
Revenue:
Total revenue	$ 22,361	$ 39,954	$ 56,054	$ 74,491

Unaudited Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (85,979)	$ (83,963)	$ (170,757)	$ (100,762)
Currency translation adjustments, net of tax	269	927	(2,602)	1,337
Comprehensive loss	$ (85,710)	$ (83,036)	$ (173,359)	$ (99,425)

- Definition

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

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+ Details

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Operating activities:
Net loss	$ (170,757)	$ (100,762)
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Depreciation and amortization	81,360	60,716
Loss on asset disposals, abandonments and write-downs	1,403	4,425
Provision for expected credit losses	11,875	4,825
Impairment of long-lived assets	47,376
Impairment of cost-basis investment	3,000
Deferred income taxes	89	89
Stock-based compensation expense	7,159	8,645
Amortization of deferred financing costs	2,872	2,573
Accretion and amortization of debt discount and premium	6,762	8,374
Loss on extinguishment of debt		57,962
Changes in operating assets and liabilities:
Accounts receivable	24,961	15,905
Inventories	(12,948)	(5,297)
Prepaid expenses and other current assets	5,720	6,409
Contract assets	(13,152)	(20,313)
Accounts payable	25,689	5,736
Accrued liabilities	(24,053)	(6,877)
Deferred airborne lease incentives	(11,711)	(1,486)
Deferred revenue	(1,500)	(3,858)
Accrued interest	(5)	(28,375)
Warranty reserves	(715)	948
Right-of-use assets and operating lease liabilities	3,205	(1,756)
Other non-current assets and liabilities	4,814	(2,348)
Net cash provided by (used in) operating activities	(8,556)	5,535
Investing activities:
Purchases of property and equipment	(13,931)	(33,598)
Acquisition of intangible assets—capitalized software	(7,170)	(8,647)
Redemptions of short—term investments		39,323
Other, net	89	360
Net cash used in investing activities	(21,012)	(2,562)
Financing activities:
Proceeds from credit facility draw	22,000
Repayments of amounts drawn from credit facility	(5,000)
Repurchase of convertible notes	(2,498)	(158,954)
Proceeds from issuance of senior secured notes		920,683
Redemption of senior secured notes		(741,360)
Payment of debt issuance costs		(22,645)
Payments on financing leases	(310)	(383)
Stock-based compensation activity	(262)	(178)
Net cash provided by (used in) financing activities	13,930	(2,837)
Effect of exchange rate changes on cash	(90)	(378)
Decrease in cash, cash equivalents and restricted cash	(15,728)	(242)
Cash, cash equivalents and restricted cash at beginning of period	177,675	191,116
Cash, cash equivalents and restricted cash at end of period	161,947	190,874
Less: current restricted cash	560	1,035
Less: non-current restricted cash	5,101	7,972
Cash and cash equivalents at end of period	156,286	181,867
Supplemental Cash Flow Information:
Cash paid for interest	53,080	86,420
Cash paid for taxes	56	412
Noncash Investing and Financing Activities:
Purchases of property and equipment in current liabilities	5,637	16,014
Purchases of property and equipment paid by commercial airlines	$ 6,086	$ 9,914

Unaudited Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Revision of Prior Period Accounting Standards Update Adjustment [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated Deficit [Member]	Accumulated Deficit [Member] Revision of Prior Period Accounting Standards Update Adjustment [Member]	Treasury Stock [Member]
Beginning Balance at Dec. 31, 2018	$ (268,761)	$ (3,093)	$ 9	$ 963,458	$ (3,554)	$ (1,228,674)	$ (3,093)
Beginning Balance, Shares at Dec. 31, 2018			87,560,694
Net loss	(100,762)					(100,762)
Currency translation adjustments, net of tax	1,337				1,337
Stock-based compensation expense	8,645			8,645
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares			345,113
Tax withholding related to vesting of restricted stock units	(807)			(807)
Issuance of common stock in connection with employee stock purchase plan	629			629
Issuance of common stock in connection with employee stock purchase plan, Shares			157,158
Repurchase of 2020 Convertible Notes	(795)			(795)
Ending Balance at Jun. 30, 2019	(363,607)		$ 9	971,130	(2,217)	(1,332,529)
Ending Balance, Shares at Jun. 30, 2019			88,062,965
Beginning Balance at Mar. 31, 2019	(283,974)		$ 9	967,727	(3,144)	(1,248,566)
Beginning Balance, Shares at Mar. 31, 2019			87,797,614
Net loss	(83,963)					(83,963)
Currency translation adjustments, net of tax	927				927
Stock-based compensation expense	4,318			4,318
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares			183,446
Tax withholding related to vesting of restricted stock units	(456)			(456)
Issuance of common stock in connection with employee stock purchase plan	336			336
Issuance of common stock in connection with employee stock purchase plan, Shares			81,905
Repurchase of 2020 Convertible Notes	(795)			(795)
Ending Balance at Jun. 30, 2019	(363,607)		$ 9	971,130	(2,217)	(1,332,529)
Ending Balance, Shares at Jun. 30, 2019			88,062,965
Beginning Balance at Dec. 31, 2019	(398,890)	$ (3,665)	$ 9	979,499	(2,256)	(1,376,142)	$ (3,665)
Beginning Balance, Shares at Dec. 31, 2019			88,240,877
Net loss	(170,757)					(170,757)
Currency translation adjustments, net of tax	(2,602)				(2,602)
Stock-based compensation expense	7,159			7,159
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares			641,428
Tax withholding related to vesting of restricted stock units	(809)			(809)
Issuance of common stock in connection with employee stock purchase plan	547			547
Issuance of common stock in connection with employee stock purchase plan, Shares			227,438
Settlement of prepaid forward shares [value]			$ (1)	98,858				$ (98,857)
Settlement of prepaid forward shares [shares]			(5,077,400)					5,077,400
Ending Balance at Jun. 30, 2020	(569,017)		$ 8	1,085,254	(4,858)	(1,550,564)		$ (98,857)
Ending Balance, Shares at Jun. 30, 2020			84,032,343					5,077,400
Beginning Balance at Mar. 31, 2020	(486,606)		$ 8	1,081,955	(5,127)	(1,464,585)		$ (98,857)
Beginning Balance, Shares at Mar. 31, 2020			83,773,648					5,077,400
Net loss	(85,979)					(85,979)
Currency translation adjustments, net of tax	269				269
Stock-based compensation expense	3,164			3,164
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares			118,938
Tax withholding related to vesting of restricted stock units	(127)			(127)
Issuance of common stock in connection with employee stock purchase plan	262			262
Issuance of common stock in connection with employee stock purchase plan, Shares			139,757
Ending Balance at Jun. 30, 2020	$ (569,017)		$ 8	$ 1,085,254	$ (4,858)	$ (1,550,564)		$ (98,857)
Ending Balance, Shares at Jun. 30, 2020			84,032,343					5,077,400

Basis of Presentation

6 Months Ended

Jun. 30, 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 and six month periods ended June 30, 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 June 30, 2020 and December 31, 2019.

Reclassifications – To conform with the current year presentation, $4,825 thousand of bad debt expense has been reclassified to a separate line from accounts receivable in our unaudited condensed consolidated statement of cash flows for the six month period ended June 30, 2019. Additionally, to conform with the current year presentation, $1,338 thousand and $418 thousand have been reclassified from Other non-current assets and liabilities and Accrued liabilities, respectively, to Right-of-use assets and operating lease liabilities in our statement of cash flows for the six month period ended June 30, 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.

During the second quarter of 2020, our agreement with Delta Air Lines, Inc. (“Delta”) to provide 2Ku service on certain Delta aircraft was amended to change the contract expiration date from February 2027 with respect to all aircraft to a staggered, fleet by fleet expiration schedule under which expiration dates will occur between November 2020 and July 2022 (the “Delta amendment”). As a result, the useful lives of the equipment installed on these fleets have been shortened to align with the expiration dates in the amended agreement. The change in estimated useful lives resulted in approximately $13.9 million of accelerated depreciation during the three and six month periods ended June 30, 2020. Additionally, the amortization periods for the remaining deferred airborne lease incentives, which is a reduction to cost of service revenue in our unaudited condensed consolidated statements of operations, associated with the equipment installed on the 2Ku fleets have been shortened to align with the new expiration dates, which resulted in approximately $6 million of accelerated amortization during the three and six month periods ended June 30, 2020.

Impact of COVID-19 Pandemic

6 Months Ended

Jun. 30, 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.

In our two commercial airline (“CA”) segments, CA-NA and CA-ROW, passenger traffic on commercial airlines started to decline significantly in late March 2020 and while it has increased somewhat from mid-April lows, it has continued to be significantly below pre-COVID levels through July 2020. Our business aviation segment, BA, also saw a sharp decrease in flight activity, as well as an increase in requests for account suspensions and decreases in new plan activations. In BA, we are seeing positive signs that the business is recovering from mid-April lows, including increased flights, activations and sales in the months of June and July 2020. The duration and severity of the reduction in travel demand due to the COVID-19 pandemic in all three segments is uncertain. In CA, we expect these trends to continue until the global pandemic has moderated and demand for air travel returns. In BA, there can be no assurance that the recovery observed to date will continue.

In response to the significant decline in revenue caused by the pandemic, we have implemented the following liquidity-preservation initiatives:

•

Personnel actions – We implemented several cost-cutting measures related to personnel, including a hiring freeze, a suspension of 2020 merit salary increases and a modification of the 2020 bonus program allowing awards to be paid in stock or a combination of stock and cash at our option. Additionally, the Chief Executive Officer’s 2019 bonus payout was deferred and in July 2020 the Chief Executive Officer accepted common stock in lieu of cash for the after-tax portion of his 2019 bonus. We also furloughed approximately 54% of our workforce beginning May 4, 2020. Additionally, on July 30, 2020, we announced a reduction in force of approximately 14% of our workforce, effective August 14, 2020. Furloughed employees not affected by the reduction in force will return to full time work on August 31, 2020. Effective on May 4, 2020, we reduced compensation for salaried employees who were not furloughed. Salary reductions, which will be effective at least through the end of 2020, 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% for the last three quarters of 2020.

•

Expense management – We have identified and are implementing or continuing to pursue action plans / levers in areas not involving personnel to further reduce costs, including the following:

Renegotiating terms with suppliers, including agreements executed with satellite capacity providers to reduce and defer payments;

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 and in the second quarter we repaid $5 million of such amount. As of June 30, 2020, $17 million was outstanding and less than $1 million remained available for borrowing under the terms of the agreement that would allow for the company to meet the “payment conditions” criteria as described in our ABL Credit Agreement. See Note 10, “Long-Term Debt and Other Liabilities,” for additional information.

•

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”). Based on criteria recently released by the U.S. Treasury Department, we do not believe that we will qualify for a loan, although we have not received a formal determination. If we receive grant assistance, we will be subject to certain restrictions and will likely be required to modify the personnel actions discussed above to comply with the terms of the government assistance.

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. However, based on our current plans, including the measures taken in our response to COVID-19, we believe that our cash and cash equivalents and cash flows provided by operating activities will be sufficient to meet our operating obligations, including our capital expenditure requirements, for at least the next twelve months.

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 and June 30, 2020 in light of the COVID-19 pandemic and its impact on air travel, and recorded impairment charges for the three and six month periods ended June 30, 2020 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 and six month periods ended June 30, 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

6 Months Ended

Jun. 30, 2020

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Pronouncements

3.	Recent Accounting Pronouncements

Accounting standards adopted:

On January 1, 2020, we adopted ASU 2016-13, 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:

							Balances
	Balance at						with
	December 31,			Impact of			Adoption of
	2019			ASC 326			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 consolidated financial statements.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

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+ Details

Revenue Recognition

6 Months Ended

Jun. 30, 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 June 30, 2020, the aggregate amount of the transaction price in our contracts allocated to the remaining unsatisfied performance obligations was approximately $319 million, most of which relate to our commercial aviation contracts. Approximately $49 million represents future equipment revenue that is expected to be recognized within the next one to three years. The remaining $270 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 1-8 years). We have excluded from this amount: all consideration related to contracts with customers that have filed for bankruptcy, which therefore fail to meet the GAAP definition of a contract; all variable consideration derived from our connectivity or entertainment services that is allocated entirely to our performance of obligations related to such services; consideration from contracts that have an original duration of one year or less; revenue from passenger service on airlines operating under the turnkey model; and revenue from contracts that have been executed but under which have not yet met the accounting definition of a contract since the airline has not yet determined which products in our portfolio it wishes to select, and, as a result we are unable to determine which products and services will be transferred to the customer.

Disaggregation of revenue

The following table presents our revenue disaggregated by category (in thousands):

	For the Three Months Ended
	June 30, 2020
	CA-NA		CA-ROW			BA		Total
Service revenue
Connectivity	$	21,849	$	3,888		$	43,447	$	69,184
Entertainment, CAS and other		3,687		822			586		5,095
Total service revenue	$	25,536	$	4,710		$	44,033	$	74,279

Equipment revenue
ATG	$	1,786	$	-		$	6,876	$	8,662
Satellite		2,709		7,267			3,518		13,494
Other		-		-			205		205
Total equipment revenue	$	4,495	$	7,267		$	10,599	$	22,361

Customer type
Airline passenger and aircraft owner/operator	$	15,041	$	1,970		$	44,033	$	61,044
Airline, OEM and aftermarket dealer		14,001		10,040			10,599		34,640
Third party		989		(33	)		-		956
Total revenue	$	30,031	$	11,977		$	54,632	$	96,640

	For the Three Months Ended
	June 30, 2019
	CA-NA		CA-ROW			BA		Total
Service revenue
Connectivity	$	90,233	$	21,656		$	54,176	$	166,065
Entertainment, CAS and other		6,169		917			580		7,666
Total service revenue	$	96,402	$	22,573		$	54,756	$	173,731

Equipment revenue
ATG	$	5,636	$	-		$	12,344	$	17,980
Satellite		3,329		14,144			3,809		21,282
Other		360		-			332		692
Total equipment revenue	$	9,325	$	14,144		$	16,485	$	39,954

Customer type
Airline passenger and aircraft owner/operator	$	55,900	$	6,767		$	54,756	$	117,423
Airline, OEM and aftermarket dealer		36,883		27,680			16,485		81,048
Third party		12,944		2,270			-		15,214
Total revenue	$	105,727	$	36,717		$	71,241	$	213,685

	For the Six Months Ended
	June 30, 2020
	CA-NA		CA-ROW		BA		Total
Service revenue
Connectivity	$	90,718	$	21,917	$	100,422	$	213,057
Entertainment, CAS and other		8,646		2,021		1,337		12,004
Total service revenue	$	99,364	$	23,938	$	101,759	$	225,061

Equipment revenue
ATG	$	6,182	$	-	$	16,500	$	22,682
Satellite		4,541		21,451		6,892		32,884
Other		80		-		408		488
Total equipment revenue	$	10,803	$	21,451	$	23,800	$	56,054

Customer type
Airline passenger and aircraft owner/operator	$	58,743	$	8,487	$	101,759	$	168,989
Airline, OEM and aftermarket dealer		40,259		35,439		23,800		99,498
Third party		11,165		1,463		-		12,628
Total revenue	$	110,167	$	45,389	$	125,559	$	281,115

	For the Six Months Ended
	June 30, 2019
	CA-NA		CA-ROW		BA		Total
Service revenue
Connectivity	$	170,051	$	40,510	$	106,861	$	317,422
Entertainment, CAS and other		18,378		1,835		1,108		21,321
Total service revenue	$	188,429	$	42,345	$	107,969	$	338,743

Equipment revenue
ATG	$	8,508	$	-	$	23,679	$	32,187
Satellite		3,959		27,303		9,044		40,306
Other		900		-		1,098		1,998
Total equipment revenue	$	13,367	$	27,303	$	33,821	$	74,491

Customer type
Airline passenger and aircraft owner/operator	$	110,249	$	12,618	$	107,969	$	230,836
Airline, OEM and aftermarket dealer		67,796		53,171		33,821		154,788
Third party		23,751		3,859		-		27,610
Total revenue	$	201,796	$	69,648	$	141,790	$	413,234

Contract balances

Our current and non-current deferred revenue balances totaled $55.1 million and $56.7 million as of June 30, 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 $69.4 million and $64.2 million as of June 30, 2020 and December 31, 2019, respectively. The contract asset balance as of June 30, 2020 was net of allowances of $11.1 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 supplemental type certificate (“STC”) balances for our airline-directed contracts were $14.9 million and $17.5 million as of June 30, 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 $1.6 million, respectively, for the three and six month periods ended June 30, 2020, and $0.3 million and $0.6 million for the respective prior-year periods. Additionally, during the three and six month periods ended June 30, 2020, we recorded an impairment charge of $1.0 million for the remaining carrying value of capitalized STC costs associated with three of our airline partners who are currently in bankruptcy.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

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+ Details

Net Loss Per Share

6 Months Ended

Jun. 30, 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 10, “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 June 30, 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 and six month periods ended June 30, 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 and six month periods ended June 30, 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						For the Six Months
	Ended June 30,						Ended June 30,
	2020			2019			2020			2019
Net loss	$	(85,979	)	$	(83,963	)	$	(170,757	)	$	(100,762	)
Less: Participation rights of the Forward Transactions		-			-			-			-
Undistributed losses	$	(85,979	)	$	(83,963	)	$	(170,757	)	$	(100,762	)

Weighted-average common shares outstanding-basic and diluted		81,757			80,702			81,482			80,575

Net loss attributable to common stock per share-basic and diluted	$	(1.05	)	$	(1.04	)	$	(2.10	)	$	(1.25	)

Inventories

6 Months Ended

Jun. 30, 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 June 30, 2020 and December 31, 2019 were as follows (in thousands):

		June 30,		December 31,
		2020		2019
Work-in-process component parts	$	21,752	$	23,141
Finished goods		108,340		94,003
Total inventory	$	130,092	$	117,144

Composition of Certain Balance Sheet Accounts

6 Months Ended

Jun. 30, 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 June 30, 2020 and December 31, 2019 were as follows (in thousands):

	June 30,		December 31,
	2020		2019
Contract assets, net of allowances of $1,491 and $0, respectively (1)	$	14,944	$	12,364
Prepaid satellite services		7,202		11,299
Restricted cash		560		560
Other		9,705		12,082
Total prepaid expenses and other current assets	$	32,411	$	36,305

(1)	Allowance for contract assets as of June 30, 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 June 30, 2020 and December 31, 2019 were as follows (in thousands):

	June 30,			December 31,
	2020			2019
Office equipment, furniture, fixtures and other	$	57,335		$	56,205
Leasehold improvements		44,402			44,389
Airborne equipment (1)		708,587			737,593
Network equipment		226,502			229,451
		1,036,826			1,067,638
Accumulated depreciation		(573,679	)		(507,320	)
Total property and equipment, net	$	463,147		$	560,318

(1)	Decrease in Airborne equipment is due primarily to the impairment of Airborne equipment associated with three of our airline agreements recorded during the three month period ended March 31, 2020. See below for additional information.

Other non-current assets as of June 30, 2020 and December 31, 2019 were as follows (in thousands):

	June 30,		December 31,
	2020		2019
Contract assets, net of allowances of $9,568 and $0, respectively (1)	$	54,470	$	51,829
Deferred STC costs (2)		14,851		17,453
Restricted cash		5,101		7,099
Other (3)		6,193		13,291
Total other non-current assets	$	80,615	$	89,672

(1)	Allowances for contract assets as of June 30, 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 $1.0 million impairment of STC costs associated with three of our airline agreements. See below for additional information.

(3)	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 six month period ended June 30, 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 pandemic 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 conducted another review as of June 30, 2020 due to the continuation of the COVID-19 pandemic as well as the signing of the Delta amendment, and determined that $1.0 million of deferred STC costs were impaired due to the bankruptcy of three other airline partners. As such, we recorded a $1.0 million charge for impairment of long-lived 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 June 30, 2020 and December 31, 2019 were as follows (in thousands):

	June 30,		December 31,
	2020		2019
Airline related accrued liabilities	$	30,680	$	43,592
Accrued satellite network costs		33,445		13,843
Accrued interest		17,043		17,048
Warranty reserve		12,450		13,165
Employee compensation and benefits		7,351		29,954
Operating leases		8,990		12,241
Current portion of ABL Credit Facility (1)		6,000		-
Airborne equipment and installation costs		5,363		11,466
Other		26,022		32,802
Total accrued liabilities	$	147,344	$	174,111

(1)	See Note 10, “Long-Term Debt and Other Liabilities,” for additional information.

Other non-current liabilities as of June 30, 2020 and December 31, 2019 were as follows (in thousands):

	June 30,		December 31,
	2020		2019
Deferred revenue	$	25,400	$	21,889
Asset retirement obligations		12,024		11,560
Deferred tax liabilities		2,429		2,340
Other		13,500		10,704
Total other non-current liabilities	$	53,353	$	46,493

Intangible Assets

6 Months Ended

Jun. 30, 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 June 30, 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 June 30, 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 June 30, 2020 and December 31, 2019 were as follows (in thousands, except for weighted average remaining useful life):

	Weighted
	Average		As of June 30, 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		2.9	$	184,386	$	(144,432	)	$	39,954	$	177,190	$	(135,154	)	$	42,036
Other intangible assets		7.8		3,000		(1,450	)		1,550		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				202,191		(160,687	)		41,504		194,995		(151,399	)		43,596

Unamortized intangible assets:

FCC Licenses				32,283		-			32,283		32,283		-			32,283

Total intangible assets			$	234,474	$	(160,687	)	$	73,787	$	227,278	$	(151,399	)	$	75,879

Amortization expense was $4.5 million and $9.3 million, respectively, for the three and six month periods ended June 30, 2020 and $5.1 million and $10.5 million, respectively, for the prior-year periods.

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

	Amortization
Years ending December 31,	Expense
2020 (period from July 1 to December 31)	$	8,206
2021	$	15,622
2022	$	10,097
2023	$	3,796
2024	$	817
Thereafter	$	2,966

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

6 Months Ended

Jun. 30, 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 and six months ended June 30, 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):

	For the Three Months Ended
	June 30, 2020
				Prepaid		Other
	Accounts			and other		non-current
	receivable			current assets		assets
Balance at April 1, 2020	$	3,970		$	997	$	6,111
Current-period provision for expected credit losses ⁽¹⁾		1,160			494		3,457
Write-offs charged against the allowances		(195	)		-		-
Other, including dispositions and foreign currency		113			-		-
Balance at June 30, 2020	$	5,048		$	1,491	$	9,568

		For the Six Months Ended
		June 30, 2020
					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⁾		3,095			1,135		7,645
Write-offs charged against the allowances		(195	)		-		-
Other, including dispositions and foreign currency		76			-		-
Balance at June 30, 2020	$	5,048		$	1,491	$	9,568

(1)

The current-period provision for expected credit losses was due primarily to the impact of COVID-19, with one international airline partner in particular accounting for approximately 94% and 80%, respectively, of the current-period provision recorded during the three and six month periods ended 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 $12.5 million and $13.2 million, respectively, as of June 30, 2020 and December 31, 2019.

Long-Term Debt and Other Liabilities

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Long-Term Debt and Other Liabilities

10.	Long-Term Debt and Other Liabilities

Long-term debt as of June 30, 2020 and December 31, 2019 was as follows (in thousands):

		June 30,			December 31,
		2020			2019
2024 Senior Secured Notes	$	921,489		$	921,137
2022 Convertible Notes		208,277			201,868
ABL Credit Facility		11,000			-
2020 Convertible Notes		-			2,498
Total debt		1,140,766			1,125,503
Less deferred financing costs		(22,164	)		(24,255	)
Total long-term debt	$	1,118,602		$	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 the Trustee entered into a second supplemental indenture (the “Second Supplemental Indenture”) to add Gogo International as a guarantor under the 2024 Indenture. On July 31, 2020, the Issuers, the Initial 2024 Guarantors, Gogo International and Gogo Inflight Internet Canada Ltd., Gogo ATG LLC and Gogo CA Licenses LLC (collectively, the “Additional Guarantors” and, together with the Initial 2024 Guarantors and Gogo International, the “2024 Guarantors”) and the Trustee entered into a third supplemental indenture (together with the Base Indenture, the First Supplemental Indenture and the Second Supplemental Indenture, the “2024 Indenture”) to add the Additional Guarantors as guarantors under 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 June 30, 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 $3.5 million and $3.9 million, respectively, and the net carrying amount was $921.5 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 and $1.8 million for the three and six month periods ended June 30, 2020, respectively, and $0.6 million for both prior-year periods. Amortization expense is included in interest expense in the unaudited condensed consolidated statements of operations. As of June 30, 2020 and December 31, 2019, the balance of unamortized deferred financing costs related to the 2024 Senior Secured Notes was $17.9 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:

	Redemption
Year	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.

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 June 30, 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 June 30, 2020, less than $1 million remained available for borrowing under the terms of the agreement that would allow for the company to meet the “payment conditions” criteria as described in our ABL Credit Agreement. As of June 30, 2020 and December 31, 2019, $17.0 million and zero, were outstanding under the ABL Credit Facility, respectively. As a result of the borrowing base collateral that we have forecasted for the next twelve months, of the $17.0 million outstanding under the ABL Credit Facility as of June 30, 2020, $6.0 million was classified as current and included in accrued liabilities on our unaudited condensed consolidated balance sheet. During July 2020, we repaid $1.0 million of the outstanding amount.

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 Interbank Offered Rate (LIBOR) 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. If LIBOR ceases to exist or otherwise becomes unsuitable for use as a benchmark, the alternate base rate will automatically apply unless we agree with the Administrative Agent on another rate that is the then prevailing market rate for syndicated loans. 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 June 30, 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 and $0.2 million, respectively, for the three and six month periods ended June 30, 2020. Amortization expense is included in interest expense in the unaudited condensed consolidated statements of operations. As of June 30, 2020 and December 31, 2019, the balance of unamortized deferred financing costs related to the ABL Credit Facility was $0.6 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 $0.2 million and $1.0 million, respectively, for the three and six month periods ended June 30, 2019. Amortization expense is included in interest expense in the unaudited condensed consolidated statements of operations. As 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 June 30, 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 $29.5 million and $35.9 million, respectively, and the net carrying amount of the liability component was $208.3 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 and $0.9 million, respectively, for the three and six month periods ended June 30, 2020, and $0.4 million and $0.8 million, respectively, for the prior-year periods. Amortization expense is included in interest expense in the consolidated statements of operations. As of June 30, 2020 and December 31, 2019, the balance of unamortized deferred financing costs related to the 2022 Convertible Notes was $3.6 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 and six month periods ended June 30, 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 $0.1 million and $0.3 million, respectively, for the three and six month periods ended June 30, 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 10, “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 $5.7 million and $7.7 million, respectively, as of June 30, 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

6 Months Ended

Jun. 30, 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 and six month periods ended June 30, 2020 and 2019 (in thousands):

	For the Three Months					For the Six Months
	Ended June 30,					Ended June 30,
	2020		2019			2020		2019

Interest costs charged to expense	$	26,392	$	31,226		$	52,821	$	57,757
Amortization of deferred financing costs		1,453		1,324			2,872		2,573
Accretion of debt discount		3,435		3,858			6,761		9,392
Amortization of debt premium		-		(258	)		-		(1,018	)
Interest expense		31,280		36,150			62,454		68,704
Interest costs capitalized to property and equipment		-		7			-		11
Interest costs capitalized to software		95		115			184		240
Total interest costs	$	31,375	$	36,272		$	62,638	$	68,955

Leases

6 Months Ended

Jun. 30, 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 June 30, 2020, there were 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
	June 30, 2020		June 30, 2019
Operating lease cost	$	4,889	$	5,194
Financing lease cost
Amortization of leased assets		94		171
Interest on lease liabilities		41		16
Total lease cost	$	5,024	$	5,381

		For the Six		For the Six
		Months Ended		Months Ended
		June 30, 2020		June 30, 2019
Operating lease cost	$	9,746	$	10,112
Financing lease cost
Amortization of leased assets		185		376
Interest on lease liabilities		67		27
Total lease cost	$	9,998	$	10,515

Other information regarding our leases is as follows (in thousands, except lease terms and discount rates):

	For the Six			For the Six
	Months Ended			Months Ended
	June 30, 2020			June 30, 2019
Supplemental cash flow information
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows used in operating leases	$	11,225		$	11,908
Operating cash flows used in financing leases		67			27
Financing cash flows used in financing leases		310			383
Non-cash items:
Operating leases obtained		7,726			1,047

Weighted average remaining lease term
Operating leases	8 years			8 years
Financing leases	2 years			1 year

Weighted average discount rate
Operating leases		9.5	%		10.3	%
Financing leases		11.4	%		8.5	%

Annual future minimum lease payments as of June 30, 2020 (in thousands):

	Operating			Financing
Years ending December 31,	Leases			Leases
2020 (period from July 1 to December 31)	$	7,694		$	637
2021		20,210			935
2022		19,142			855
2023		15,175			45
2024		11,607			-
Thereafter		57,303			-
Total future minimum lease payments		131,131			2,472
Less: Amount representing interest		(41,158	)		(205	)
Present value of net minimum lease payments	$	89,973		$	2,267

Reported as of June 30, 2020
Accrued liabilities	$	8,990		$	858
Non-current operating lease liabilities		80,983			-
Other non-current liabilities		-			1,409
Total lease liabilities	$	89,973		$	2,267

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 7, “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 $14.8 million and $21.9 million, respectively, for the three and six month periods ended June 30, 2020 and $6.1 million and $15.0 million, respectively, for the prior-year periods 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. The increase during the three and six month periods ended June 30, 2020 was due to the Delta amendment. See Note 1, “Basis of Presentation,” for additional information. As of June 30, 2020, deferred airborne lease incentives of $73.2 million and $89.3 million, respectively, are included in current and non-current liabilities in our unaudited condensed consolidated balance sheet and reflect changes resulting from the Delta amendment. 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. Due to the accelerated amortization resulting from the Delta amendment and a significant reduction in revenue share as a result of COVID-19, the amortization of deferred airborne lease incentive exceeded our revenue share expense, by $11.8 million and $7.2 million, respectively, for the three and six month periods ended June 30, 2020. We incurred net rental expenses of $6.8 million and $10.6 million, respectively, for the prior-year periods.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2020

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

13.	Commitments and Contingencies

Contractual Commitments - We have agreements with vendors to provide us with satellite transponder and teleport services. These agreements vary in length and amount and as of June 30, 2020 commit us to purchase satellite transponder and teleport services totaling approximately $63.9 million in 2020 (July 1 through December 31), $131.4 million in 2021, $108.7 million in 2022, $91.4 million in 2023, $59.4 million in 2024 and $259.4 million thereafter. Subsequent to the issuance of the Company’s 2019 financial statements, the Company determined that the amounts of contractual commitments for satellite transponder and teleport services disclosed in the 2019 Form 10-K were overstated by $26 million in the “3-5 years” column related to 2024 and by $30 million in the “Thereafter” column related to 2029-2032. During the current year, the Company corrected these disclosed contractual commitments amounts. These disclosure adjustments did not impact the amounts recorded in the consolidated financial statements and the Company believes the disclosure adjustments are not material.

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, plaintiffs filed a second amended complaint. In February 2020 we filed a motion to dismiss such second amended complaint. In July 2020, plaintiffs filed a motion requesting leave to file a proposed third amendment complaint, which was granted by the Court. We believe that the claims are without merit and intend to file a motion to dismiss the third amended complaint and to continue to defend the claims 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 resumes. The plaintiffs seek to recover, on our behalf, an unspecified amount of damages from the individual defendants. We have filed a claim with the issuer of our Directors’ and Officers’ insurance policy with respect to these suits. No amounts have been accrued for any potential costs under this matter, as we cannot reasonably predict the outcome of the litigation or any potential costs.

Fair Value of Financial Assets and Liabilities

6 Months Ended

Jun. 30, 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 1 - defined as observable inputs such as quoted prices in active markets;

•

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

•

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

Long-Term Debt:

Our financial assets and liabilities that are disclosed but not measured at fair value include the 2024 Senior Secured Notes 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 June 30, 2020 unaudited condensed consolidated balance sheet, excluding any issuance costs, are the amount that a market participant would be willing to lend at June 30, 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 June 30, 2020 and December 31, 2019 were as follows (in thousands):

	June 30, 2020						December 31, 2019
	Fair Value ⁽¹⁾		Carrying Value				Fair Value ⁽¹⁾		Carrying Value

2024 Senior Secured Notes	$	777,000	$	921,489	⁽²	⁾	$	982,000	$	921,137	⁽²	⁾
2022 Convertible Notes		168,000		208,277	⁽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 $3.5 million and $3.9 million, respectively, as of June 30, 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 $29.5 million and $35.9 million, respectively, as of June 30, 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 and six month periods ended June 30, 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

6 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Income Tax

15.	Income Tax

The effective income tax rates for the three and six month periods ended June 30, 2020 and 2019 were (0.1)% and (0.2)%, respectively, as compared with (0.4)% and (0.5)%, respectively, for the prior-year periods. For the three and six month periods ended June 30, 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 June 30, 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 and six month periods ended June 30, 2020 and 2019. As of June 30, 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.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Business Segments and Major Customers

6 Months Ended

Jun. 30, 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 and six month periods ended June 30, 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 June 30, 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, loss on extinguishment of debt 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 and six month periods ended June 30, 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
	June 30, 2020
	CA-NA		CA-ROW			BA		Total

Service revenue	$	25,536	$	4,710		$	44,033	$	74,279
Equipment revenue		4,495		7,267			10,599		22,361
Total revenue	$	30,031	$	11,977		$	54,632	$	96,640
Reportable segment profit (loss)	$	(10,572)	$	(26,670	)	$	27,206	$	(10,036)

	For the Three Months Ended
	June 30, 2019
	CA-NA		CA-ROW			BA		Total

Service revenue	$	96,402	$	22,573		$	54,756	$	173,731
Equipment revenue		9,325		14,144			16,485		39,954
Total revenue	$	105,727	$	36,717		$	71,241	$	213,685
Reportable segment profit (loss)	$	34,123	$	(16,402	)	$	31,395	$	49,116

	For the Six Months Ended
	June 30, 2020
	CA-NA		CA-ROW			BA		Total

Service revenue	$	99,364	$	23,938		$	101,759	$	225,061
Equipment revenue		10,803		21,451			23,800		56,054
Total revenue	$	110,167	$	45,389		$	125,559	$	281,115
Reportable segment profit (loss)	$	5,311	$	(44,041	)	$	63,060	$	24,330

	For the Six Months Ended
	June 30, 2019
	CA-NA		CA-ROW			BA		Total

Service revenue	$	188,429	$	42,345		$	107,969	$	338,743
Equipment revenue		13,367		27,303			33,821		74,491
Total revenue	$	201,796	$	69,648		$	141,790	$	413,234
Reportable segment profit (loss)	$	64,785	$	(34,595	)	$	65,150	$	95,340

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

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
	2020				2019		2020			2019

CA-NA segment profit (loss)	$	(10,572	)	$	34,123		$	5,311		$	64,785
CA-ROW segment loss		(26,670	)		(16,402	)		(44,041	)		(34,595	)
BA segment profit		27,206			31,395			63,060			65,150
Total reportable segment profit (loss)		(10,036	)		49,116			24,330			95,340
Unallocated corporate costs (1)		(5,589	)		(10,920	)		(14,225	)		(19,253	)
Interest income		81			1,230			687			2,379
Interest expense		(31,280	)		(36,150	)		(62,454	)		(68,704	)
Depreciation and amortization		(48,690	)		(29,967	)		(81,360	)		(60,716	)
Amortization of deferred airborne lease incentives		14,841			6,077			21,912			15,030
Amortization of STC costs		(805	)		(322	)		(1,612	)		(642	)
Stock-based compensation expense		(3,164	)		(4,318	)		(7,159	)		(8,645	)
Impairment of long-lived assets		(987	)		-			(47,376	)		-
Impairment of cost-basis investment		-			-			(3,000	)		-
Loss on extinguishment of debt		-			(57,962	)		-			(57,962	)
Proceeds from litigation settlement		-			-			-			3,215
Other expense		(233	)		(443	)		(226	)		(293	)
Loss before income taxes	$	(85,862	)	$	(83,659	)	$	(170,483	)	$	(100,251	)

(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 $0.6 million and $2.3 million, respectively, for the three and six month periods ending June 30, 2020 and $1.5 million and $3.0 million, respectively, for the prior-year periods.

Major Customers and Airline Partnerships — Revenue earned from Delta and its passengers accounted for approximately 16% and 24% of consolidated revenue, respectively, for the three and six month periods ended June 30, 2020 and approximately 28% for both prior-year periods. Delta accounted for approximately 24% and 11% of consolidated accounts receivable, respectively, as of June 30, 2020 and December 31, 2019.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Employee Retirement and Postretirement Benefits

6 Months Ended

Jun. 30, 2020

Text Block [Abstract]

Employee Retirement and Postretirement Benefits

17.	Employee Retirement and Postretirement Benefits

Stock-Based Compensation — As of June 30, 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 six month period ended June 30, 2020, options to purchase 1,209,686 shares of common stock were granted, no options to purchase shares of common stock were exercised, options to purchase 50,383 shares of common stock were forfeited and options to purchase 2,854,006 shares of common stock expired. In addition, pursuant to an option exchange program that closed on June 12, 2020, we accepted for exchange, in the aggregate, eligible options (which excluded options granted for service by non-executive members of our board of directors) to purchase 6,664,773 shares of common stock. The surrendered eligible options were cancelled, and we granted replacement options to purchase an aggregate of 2,896,383 shares of our common stock in exchange for the tendered eligible options, subject to the terms and conditions of the exchange program.

The stock-based compensation expense resulting from the option exchange program was less than $1.0 million, and the amount will be recorded on a straight-line basis through December 31, 2022.

For the six month period ended June 30, 2020, 3,013,949 RSUs were granted, 901,487 RSUs vested (of which 192,267 were RSUs that vested in connection with the performance modification) and 311,569 RSUs were forfeited.

For the six month period ended June 30, 2020, 25,977 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 six month period ended June 30, 2020, 175,449 Deferred Stock Units were granted and 26,508 vested.

For the six month period ended June 30, 2020, 227,438 shares of common stock were issued under the ESPP.

In July 2020, due to the impact of COVID-19 and in order to conserve cash, our compensation committee determined that the annual bonus earned in 2020 would be paid in shares of Gogo common stock. Depending on our cash position at the time of bonus payout, the compensation committee may elect instead to have some or all of the bonus paid in cash.

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

	For the Three Months				For the Six Months
	Ended June 30,				Ended June 30,
	2020		2019		2020		2019
Cost of service revenue	$	390	$	374	$	867	$	802
Cost of equipment revenue		62		80		135		151
Engineering, design and development		588		780		1,341		1,554
Sales and marketing		589		967		1,341		1,937
General and administrative		1,535		2,117		3,475		4,201
Total stock-based compensation expense	$	3,164	$	4,318	$	7,159	$	8,645

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 $0.9 million and $2.1 million, respectively, during the three and six month periods ended June 30, 2020 and $1.4 million and $2.6 million, respectively, for the prior-year periods.

Research and Development Costs

6 Months Ended

Jun. 30, 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 $10.9 million and $26.6 million, respectively, during the three and six month periods ended June 30, 2020 and $17.6 million and $31.7 million, respectively, for the prior-year periods. Research and development costs are reported as a component of engineering, design and development expenses in our unaudited condensed consolidated statements of operations.

Basis of Presentation (Policies)	6 Months Ended
Basis of Presentation (Policies)	Jun. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation	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 and six month periods ended June 30, 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 June 30, 2020 and December 31, 2019.
Reclassifications	Reclassifications – To conform with the current year presentation, $4,825 thousand of bad debt expense has been reclassified to a separate line from accounts receivable in our unaudited condensed consolidated statement of cash flows for the six month period ended June 30, 2019. Additionally, to conform with the current year presentation, $1,338 thousand and $418 thousand have been reclassified from Other non-current assets and liabilities and Accrued liabilities, respectively, to Right-of-use assets and operating lease liabilities in our statement of cash flows for the six month period ended June 30, 2019.
Use of Estimates	Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of 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. During the second quarter of 2020, our agreement with Delta Air Lines, Inc. (“Delta”) to provide 2Ku service on certain Delta aircraft was amended to change the contract expiration date from February 2027 with respect to all aircraft to a staggered, fleet by fleet expiration schedule under which expiration dates will occur between November 2020 and July 2022 (the “Delta amendment”). As a result, the useful lives of the equipment installed on these fleets have been shortened to align with the expiration dates in the amended agreement. The change in estimated useful lives resulted in approximately $13.9 million of accelerated depreciation during the three and six month periods ended June 30, 2020. Additionally, the amortization periods for the remaining deferred airborne lease incentives, which is a reduction to cost of service revenue in our unaudited condensed consolidated statements of operations, associated with the equipment installed on the 2Ku fleets have been shortened to align with the new expiration dates, which resulted in approximately $6 million of accelerated amortization during the three and six month periods ended June 30, 2020.

Recent Accounting Pronouncements (Tables)

6 Months Ended

Jun. 30, 2020

Accounting Changes And Error Corrections [Abstract]

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

							Balances
	Balance at						with
	December 31,			Impact of			Adoption of
	2019			ASC 326			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)

6 Months Ended

Jun. 30, 2020

Revenue From Contract With Customer [Abstract]

Summary of Revenue Disaggregated by Category

The following table presents our revenue disaggregated by category (in thousands):

	For the Three Months Ended
	June 30, 2020
	CA-NA		CA-ROW			BA		Total
Service revenue
Connectivity	$	21,849	$	3,888		$	43,447	$	69,184
Entertainment, CAS and other		3,687		822			586		5,095
Total service revenue	$	25,536	$	4,710		$	44,033	$	74,279

Equipment revenue
ATG	$	1,786	$	-		$	6,876	$	8,662
Satellite		2,709		7,267			3,518		13,494
Other		-		-			205		205
Total equipment revenue	$	4,495	$	7,267		$	10,599	$	22,361

Customer type
Airline passenger and aircraft owner/operator	$	15,041	$	1,970		$	44,033	$	61,044
Airline, OEM and aftermarket dealer		14,001		10,040			10,599		34,640
Third party		989		(33	)		-		956
Total revenue	$	30,031	$	11,977		$	54,632	$	96,640

	For the Three Months Ended
	June 30, 2019
	CA-NA		CA-ROW			BA		Total
Service revenue
Connectivity	$	90,233	$	21,656		$	54,176	$	166,065
Entertainment, CAS and other		6,169		917			580		7,666
Total service revenue	$	96,402	$	22,573		$	54,756	$	173,731

Equipment revenue
ATG	$	5,636	$	-		$	12,344	$	17,980
Satellite		3,329		14,144			3,809		21,282
Other		360		-			332		692
Total equipment revenue	$	9,325	$	14,144		$	16,485	$	39,954

Customer type
Airline passenger and aircraft owner/operator	$	55,900	$	6,767		$	54,756	$	117,423
Airline, OEM and aftermarket dealer		36,883		27,680			16,485		81,048
Third party		12,944		2,270			-		15,214
Total revenue	$	105,727	$	36,717		$	71,241	$	213,685

	For the Six Months Ended
	June 30, 2020
	CA-NA		CA-ROW		BA		Total
Service revenue
Connectivity	$	90,718	$	21,917	$	100,422	$	213,057
Entertainment, CAS and other		8,646		2,021		1,337		12,004
Total service revenue	$	99,364	$	23,938	$	101,759	$	225,061

Equipment revenue
ATG	$	6,182	$	-	$	16,500	$	22,682
Satellite		4,541		21,451		6,892		32,884
Other		80		-		408		488
Total equipment revenue	$	10,803	$	21,451	$	23,800	$	56,054

Customer type
Airline passenger and aircraft owner/operator	$	58,743	$	8,487	$	101,759	$	168,989
Airline, OEM and aftermarket dealer		40,259		35,439		23,800		99,498
Third party		11,165		1,463		-		12,628
Total revenue	$	110,167	$	45,389	$	125,559	$	281,115

	For the Six Months Ended
	June 30, 2019
	CA-NA		CA-ROW		BA		Total
Service revenue
Connectivity	$	170,051	$	40,510	$	106,861	$	317,422
Entertainment, CAS and other		18,378		1,835		1,108		21,321
Total service revenue	$	188,429	$	42,345	$	107,969	$	338,743

Equipment revenue
ATG	$	8,508	$	-	$	23,679	$	32,187
Satellite		3,959		27,303		9,044		40,306
Other		900		-		1,098		1,998
Total equipment revenue	$	13,367	$	27,303	$	33,821	$	74,491

Customer type
Airline passenger and aircraft owner/operator	$	110,249	$	12,618	$	107,969	$	230,836
Airline, OEM and aftermarket dealer		67,796		53,171		33,821		154,788
Third party		23,751		3,859		-		27,610
Total revenue	$	201,796	$	69,648	$	141,790	$	413,234

Net Loss Per Share (Tables)

6 Months Ended

Jun. 30, 2020

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

	For the Three Months						For the Six Months
	Ended June 30,						Ended June 30,
	2020			2019			2020			2019
Net loss	$	(85,979	)	$	(83,963	)	$	(170,757	)	$	(100,762	)
Less: Participation rights of the Forward Transactions		-			-			-			-
Undistributed losses	$	(85,979	)	$	(83,963	)	$	(170,757	)	$	(100,762	)

Weighted-average common shares outstanding-basic and diluted		81,757			80,702			81,482			80,575

Net loss attributable to common stock per share-basic and diluted	$	(1.05	)	$	(1.04	)	$	(2.10	)	$	(1.25	)

Inventories (Tables)

6 Months Ended

Jun. 30, 2020

Inventory Disclosure [Abstract]

Components of Inventories

Inventories as of June 30, 2020 and December 31, 2019 were as follows (in thousands):

		June 30,		December 31,
		2020		2019
Work-in-process component parts	$	21,752	$	23,141
Finished goods		108,340		94,003
Total inventory	$	130,092	$	117,144

Composition of Certain Balance Sheet Accounts (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2020 and December 31, 2019 were as follows (in thousands):

	June 30,		December 31,
	2020		2019
Contract assets, net of allowances of $1,491 and $0, respectively (1)	$	14,944	$	12,364
Prepaid satellite services		7,202		11,299
Restricted cash		560		560
Other		9,705		12,082
Total prepaid expenses and other current assets	$	32,411	$	36,305

(1)	Allowance for contract assets as of June 30, 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 June 30, 2020 and December 31, 2019 were as follows (in thousands):

	June 30,			December 31,
	2020			2019
Office equipment, furniture, fixtures and other	$	57,335		$	56,205
Leasehold improvements		44,402			44,389
Airborne equipment (1)		708,587			737,593
Network equipment		226,502			229,451
		1,036,826			1,067,638
Accumulated depreciation		(573,679	)		(507,320	)
Total property and equipment, net	$	463,147		$	560,318

(1)	Decrease in Airborne equipment is due primarily to the impairment of Airborne equipment associated with three of our airline agreements recorded during the three month period ended March 31, 2020. See below for additional information.

Schedule of Other Non-Current Assets

Other non-current assets as of June 30, 2020 and December 31, 2019 were as follows (in thousands):

	June 30,		December 31,
	2020		2019
Contract assets, net of allowances of $9,568 and $0, respectively (1)	$	54,470	$	51,829
Deferred STC costs (2)		14,851		17,453
Restricted cash		5,101		7,099
Other (3)		6,193		13,291
Total other non-current assets	$	80,615	$	89,672

(1)	Allowances for contract assets as of June 30, 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 $1.0 million impairment of STC costs associated with three of our airline agreements. See below for additional information.

(3)	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 six month period ended June 30, 2020.

Accrued Liabilities

Accrued liabilities as of June 30, 2020 and December 31, 2019 were as follows (in thousands):

	June 30,		December 31,
	2020		2019
Airline related accrued liabilities	$	30,680	$	43,592
Accrued satellite network costs		33,445		13,843
Accrued interest		17,043		17,048
Warranty reserve		12,450		13,165
Employee compensation and benefits		7,351		29,954
Operating leases		8,990		12,241
Current portion of ABL Credit Facility (1)		6,000		-
Airborne equipment and installation costs		5,363		11,466
Other		26,022		32,802
Total accrued liabilities	$	147,344	$	174,111

Other Non-Current Liabilities

Other non-current liabilities as of June 30, 2020 and December 31, 2019 were as follows (in thousands):

	June 30,		December 31,
	2020		2019
Deferred revenue	$	25,400	$	21,889
Asset retirement obligations		12,024		11,560
Deferred tax liabilities		2,429		2,340
Other		13,500		10,704
Total other non-current liabilities	$	53,353	$	46,493

Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets, Other than Goodwill

Our intangible assets, other than goodwill, as of June 30, 2020 and December 31, 2019 were as follows (in thousands, except for weighted average remaining useful life):

	Weighted
	Average		As of June 30, 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		2.9	$	184,386	$	(144,432	)	$	39,954	$	177,190	$	(135,154	)	$	42,036
Other intangible assets		7.8		3,000		(1,450	)		1,550		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				202,191		(160,687	)		41,504		194,995		(151,399	)		43,596

Unamortized intangible assets:

FCC Licenses				32,283		-			32,283		32,283		-			32,283

Total intangible assets			$	234,474	$	(160,687	)	$	73,787	$	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):

	Amortization
Years ending December 31,	Expense
2020 (period from July 1 to December 31)	$	8,206
2021	$	15,622
2022	$	10,097
2023	$	3,796
2024	$	817
Thereafter	$	2,966

Composition of Certain Reserves and Allowances (Tables)

6 Months Ended

Jun. 30, 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):

	For the Three Months Ended
	June 30, 2020
				Prepaid		Other
	Accounts			and other		non-current
	receivable			current assets		assets
Balance at April 1, 2020	$	3,970		$	997	$	6,111
Current-period provision for expected credit losses ⁽¹⁾		1,160			494		3,457
Write-offs charged against the allowances		(195	)		-		-
Other, including dispositions and foreign currency		113			-		-
Balance at June 30, 2020	$	5,048		$	1,491	$	9,568

		For the Six Months Ended
		June 30, 2020
					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⁾		3,095			1,135		7,645
Write-offs charged against the allowances		(195	)		-		-
Other, including dispositions and foreign currency		76			-		-
Balance at June 30, 2020	$	5,048		$	1,491	$	9,568

(1)

Long-Term Debt and Other Liabilities (Tables)

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

Long-term debt as of June 30, 2020 and December 31, 2019 was as follows (in thousands):

		June 30,			December 31,
		2020			2019
2024 Senior Secured Notes	$	921,489		$	921,137
2022 Convertible Notes		208,277			201,868
ABL Credit Facility		11,000			-
2020 Convertible Notes		-			2,498
Total debt		1,140,766			1,125,503
Less deferred financing costs		(22,164	)		(24,255	)
Total long-term debt	$	1,118,602		$	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:

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

- Definition

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

+ References

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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Interest Costs (Tables)

6 Months Ended

Jun. 30, 2020

Text Block [Abstract]

Summary of Interest Costs

The following is a summary of our interest costs for the three and six month periods ended June 30, 2020 and 2019 (in thousands):

	For the Three Months					For the Six Months
	Ended June 30,					Ended June 30,
	2020		2019			2020		2019

Interest costs charged to expense	$	26,392	$	31,226		$	52,821	$	57,757
Amortization of deferred financing costs		1,453		1,324			2,872		2,573
Accretion of debt discount		3,435		3,858			6,761		9,392
Amortization of debt premium		-		(258	)		-		(1,018	)
Interest expense		31,280		36,150			62,454		68,704
Interest costs capitalized to property and equipment		-		7			-		11
Interest costs capitalized to software		95		115			184		240
Total interest costs	$	31,375	$	36,272		$	62,638	$	68,955

Leases (Tables)

6 Months Ended

Jun. 30, 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
	June 30, 2020		June 30, 2019
Operating lease cost	$	4,889	$	5,194
Financing lease cost
Amortization of leased assets		94		171
Interest on lease liabilities		41		16
Total lease cost	$	5,024	$	5,381

		For the Six		For the Six
		Months Ended		Months Ended
		June 30, 2020		June 30, 2019
Operating lease cost	$	9,746	$	10,112
Financing lease cost
Amortization of leased assets		185		376
Interest on lease liabilities		67		27
Total lease cost	$	9,998	$	10,515

Schedule includes other information about leases

Other information regarding our leases is as follows (in thousands, except lease terms and discount rates):

	For the Six			For the Six
	Months Ended			Months Ended
	June 30, 2020			June 30, 2019
Supplemental cash flow information
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows used in operating leases	$	11,225		$	11,908
Operating cash flows used in financing leases		67			27
Financing cash flows used in financing leases		310			383
Non-cash items:
Operating leases obtained		7,726			1,047

Weighted average remaining lease term
Operating leases	8 years			8 years
Financing leases	2 years			1 year

Weighted average discount rate
Operating leases		9.5	%		10.3	%
Financing leases		11.4	%		8.5	%

Annual future minimum lease payments

Annual future minimum lease payments as of June 30, 2020 (in thousands):

	Operating			Financing
Years ending December 31,	Leases			Leases
2020 (period from July 1 to December 31)	$	7,694		$	637
2021		20,210			935
2022		19,142			855
2023		15,175			45
2024		11,607			-
Thereafter		57,303			-
Total future minimum lease payments		131,131			2,472
Less: Amount representing interest		(41,158	)		(205	)
Present value of net minimum lease payments	$	89,973		$	2,267

Reported as of June 30, 2020
Accrued liabilities	$	8,990		$	858
Non-current operating lease liabilities		80,983			-
Other non-current liabilities		-			1,409
Total lease liabilities	$	89,973		$	2,267

Fair Value of Financial Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2020 and December 31, 2019 were as follows (in thousands):

	June 30, 2020						December 31, 2019
	Fair Value ⁽¹⁾		Carrying Value				Fair Value ⁽¹⁾		Carrying Value

2024 Senior Secured Notes	$	777,000	$	921,489	⁽²	⁾	$	982,000	$	921,137	⁽²	⁾
2022 Convertible Notes		168,000		208,277	⁽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 $3.5 million and $3.9 million, respectively, as of June 30, 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 $29.5 million and $35.9 million, respectively, as of June 30, 2020 and December 31, 2019. See Note 10, “Long-Term Debt and Other Liabilities,” for further information.

Business Segments and Major Customers (Tables)

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Summary of Reportable Segments

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

	For the Three Months Ended
	June 30, 2020
	CA-NA		CA-ROW			BA		Total

Service revenue	$	25,536	$	4,710		$	44,033	$	74,279
Equipment revenue		4,495		7,267			10,599		22,361
Total revenue	$	30,031	$	11,977		$	54,632	$	96,640
Reportable segment profit (loss)	$	(10,572)	$	(26,670	)	$	27,206	$	(10,036)

	For the Three Months Ended
	June 30, 2019
	CA-NA		CA-ROW			BA		Total

Service revenue	$	96,402	$	22,573		$	54,756	$	173,731
Equipment revenue		9,325		14,144			16,485		39,954
Total revenue	$	105,727	$	36,717		$	71,241	$	213,685
Reportable segment profit (loss)	$	34,123	$	(16,402	)	$	31,395	$	49,116

	For the Six Months Ended
	June 30, 2020
	CA-NA		CA-ROW			BA		Total

Service revenue	$	99,364	$	23,938		$	101,759	$	225,061
Equipment revenue		10,803		21,451			23,800		56,054
Total revenue	$	110,167	$	45,389		$	125,559	$	281,115
Reportable segment profit (loss)	$	5,311	$	(44,041	)	$	63,060	$	24,330

	For the Six Months Ended
	June 30, 2019
	CA-NA		CA-ROW			BA		Total

Service revenue	$	188,429	$	42,345		$	107,969	$	338,743
Equipment revenue		13,367		27,303			33,821		74,491
Total revenue	$	201,796	$	69,648		$	141,790	$	413,234
Reportable segment profit (loss)	$	64,785	$	(34,595	)	$	65,150	$	95,340

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						For the Six Months
	Ended June 30,						Ended June 30,
	2020				2019		2020			2019

CA-NA segment profit (loss)	$	(10,572	)	$	34,123		$	5,311		$	64,785
CA-ROW segment loss		(26,670	)		(16,402	)		(44,041	)		(34,595	)
BA segment profit		27,206			31,395			63,060			65,150
Total reportable segment profit (loss)		(10,036	)		49,116			24,330			95,340
Unallocated corporate costs (1)		(5,589	)		(10,920	)		(14,225	)		(19,253	)
Interest income		81			1,230			687			2,379
Interest expense		(31,280	)		(36,150	)		(62,454	)		(68,704	)
Depreciation and amortization		(48,690	)		(29,967	)		(81,360	)		(60,716	)
Amortization of deferred airborne lease incentives		14,841			6,077			21,912			15,030
Amortization of STC costs		(805	)		(322	)		(1,612	)		(642	)
Stock-based compensation expense		(3,164	)		(4,318	)		(7,159	)		(8,645	)
Impairment of long-lived assets		(987	)		-			(47,376	)		-
Impairment of cost-basis investment		-			-			(3,000	)		-
Loss on extinguishment of debt		-			(57,962	)		-			(57,962	)
Proceeds from litigation settlement		-			-			-			3,215
Other expense		(233	)		(443	)		(226	)		(293	)
Loss before income taxes	$	(85,862	)	$	(83,659	)	$	(170,483	)	$	(100,251	)

(1)

Employee Retirement and Postretirement Benefits (Tables)

6 Months Ended

Jun. 30, 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				For the Six Months
	Ended June 30,				Ended June 30,
	2020		2019		2020		2019
Cost of service revenue	$	390	$	374	$	867	$	802
Cost of equipment revenue		62		80		135		151
Engineering, design and development		588		780		1,341		1,554
Sales and marketing		589		967		1,341		1,937
General and administrative		1,535		2,117		3,475		4,201
Total stock-based compensation expense	$	3,164	$	4,318	$	7,159	$	8,645

Basis of Presentation - Additional Information (Detail) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2020 USD ($)	Jun. 30, 2020 USD ($) Segment ClassOfCommonStock	Jun. 30, 2019 USD ($)	Dec. 31, 2019 ClassOfCommonStock
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Number of Operating Segments \| Segment		3
Number Of Classes Of Common Stock Outstanding \| ClassOfCommonStock		1		1
Provision For Doubtful Accounts			$ 4,825
Right-of-use assets and operating lease liabilities		$ 3,205	(1,756)
Accelerated Depreciation	$ 13,900	13,900
Accelerated Amortization	$ 6,000	$ 6,000
Revision of Prior Period, Reclassification, Adjustment [Member] \| Other Non-Current Assets and Liabilities [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Right-of-use assets and operating lease liabilities			1,338
Revision of Prior Period, Reclassification, Adjustment [Member] \| Accrued Liabilities [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Right-of-use assets and operating lease liabilities			$ 418

Impact of COVID-19 Pandemic - Additional Information (Detail) $ in Thousands	1 Months Ended	6 Months Ended
	Jul. 31, 2020	Jun. 30, 2020 USD ($) Segment	Mar. 31, 2020 USD ($)
Impact Of Coronavirus Global Pandemic [Line Items]
Number of Reportable Segments \| Segment		3
Workers' Compensation Discount, Description		We implemented several cost-cutting measures related to personnel, including a hiring freeze, a suspension of 2020 merit salary increases and a modification of the 2020 bonus program allowing awards to be paid in stock or a combination of stock and cash at our option. Additionally, the Chief Executive Officer’s 2019 bonus payout was deferred and in July 2020 the Chief Executive Officer accepted common stock in lieu of cash for the after-tax portion of his 2019 bonus. We also furloughed approximately 54% of our workforce beginning May 4, 2020. Additionally, on July 30, 2020, we announced a reduction in force of approximately 14% of our workforce, effective August 14, 2020. Furloughed employees not affected by the reduction in force will return to full time work on August 31, 2020. Effective on May 4, 2020, we reduced compensation for salaried employees who were not furloughed. Salary reductions, which will be effective at least through the end of 2020, 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% for the last three quarters of 2020
Credit facility available limit			$ 22,000
Repayments of lines of credit		$ 5,000
Line of credit facility, Outstanding amount		17,000
Line of credit facility, remaining borrowing capacity		1,000
Amount of grant applied under CARES Act		81,000
Amount of loan applied under CARES Act		$ 150,000
Forecast
Impact Of Coronavirus Global Pandemic [Line Items]
Reduction in Workforce	14.00%
Two Commercial Airline Segments
Impact Of Coronavirus Global Pandemic [Line Items]
Number of Reportable Segments \| Segment		2

Recent Accounting Pronouncements - Summary of Adoption Impact of ASC 326 on Unaudited Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands	Jun. 30, 2020	Jan. 01, 2020	Dec. 31, 2019
Assets
Accounts receivable	$ 71,684		$ 101,360
Prepaid and other current assets	32,411		36,305
Other non-current assets	80,615		89,672
Equity
Accumulated deficit	$ (1,550,564)		(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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Revenue From Contracts With Customers [Line Items]
Transaction price allocated to remaining performance obligations	$ 319.0		$ 319.0
Service revenue occurring period			1 year
Future equipment revenue recognition period			next one to three years
Contract with Customer, Asset, Allowance for Credit Loss	11.1		$ 11.1
Airline [Member]
Revenue From Contracts With Customers [Line Items]
Contract assets, current and non-current	69.4		69.4		$ 64.2
Accounting Standards Update 2014-09 [Member]
Revenue From Contracts With Customers [Line Items]
Deferred revenue, current and non-current	55.1		55.1		56.7
Deferred STC costs	14.9		14.9		$ 17.5
Asset Impairment Charges	1.0		1.0
Connectivity and Entertainment Service Revenues [Member]
Revenue From Contracts With Customers [Line Items]
Transaction price allocated to remaining performance obligations	270.0		270.0
Future Equipment Revenue [Member]
Revenue From Contracts With Customers [Line Items]
Equipment revenue			49.0
Engineering, Design and Development [Member] \| Accounting Standards Update 2014-09 [Member]
Revenue From Contracts With Customers [Line Items]
Amortization expense	$ 0.8	$ 0.3	$ 1.6	$ 0.6

Revenue Recognition - Summary of Revenue Disaggregated by Category (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	$ 96,640	$ 213,685	$ 281,115	$ 413,234
Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	74,279	173,731	225,061	338,743
Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	22,361	39,954	56,054	74,491
Airline Passenger and Aircraft Owner/Operator [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	61,044	117,423	168,989	230,836
Airline, OEM and Aftermarket Dealer [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	34,640	81,048	99,498	154,788
Third Party [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	956	15,214	12,628	27,610
Connectivity [Member] \| Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	69,184	166,065	213,057	317,422
Entertainment, CAS and Other [Member] \| Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	5,095	7,666	12,004	21,321
ATG [Member] \| Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	8,662	17,980	22,682	32,187
Satellite [Member] \| Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	13,494	21,282	32,884	40,306
Other [Member] \| Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	205	692	488	1,998
CA-NA [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	30,031	105,727	110,167	201,796
CA-NA [Member] \| Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	25,536	96,402	99,364	188,429
CA-NA [Member] \| Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	4,495	9,325	10,803	13,367
CA-NA [Member] \| Airline Passenger and Aircraft Owner/Operator [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	15,041	55,900	58,743	110,249
CA-NA [Member] \| Airline, OEM and Aftermarket Dealer [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	14,001	36,883	40,259	67,796
CA-NA [Member] \| Third Party [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	989	12,944	11,165	23,751
CA-NA [Member] \| Connectivity [Member] \| Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	21,849	90,233	90,718	170,051
CA-NA [Member] \| Entertainment, CAS and Other [Member] \| Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	3,687	6,169	8,646	18,378
CA-NA [Member] \| ATG [Member] \| Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	1,786	5,636	6,182	8,508
CA-NA [Member] \| Satellite [Member] \| Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	2,709	3,329	4,541	3,959
CA-NA [Member] \| Other [Member] \| Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue		360	80	900
CA-ROW [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	11,977	36,717	45,389	69,648
CA-ROW [Member] \| Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	4,710	22,573	23,938	42,345
CA-ROW [Member] \| Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	7,267	14,144	21,451	27,303
CA-ROW [Member] \| Airline Passenger and Aircraft Owner/Operator [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	1,970	6,767	8,487	12,618
CA-ROW [Member] \| Airline, OEM and Aftermarket Dealer [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	10,040	27,680	35,439	53,171
CA-ROW [Member] \| Third Party [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	(33)	2,270	1,463	3,859
CA-ROW [Member] \| Connectivity [Member] \| Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	3,888	21,656	21,917	40,510
CA-ROW [Member] \| Entertainment, CAS and Other [Member] \| Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	822	917	2,021	1,835
CA-ROW [Member] \| Satellite [Member] \| Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	7,267	14,144	21,451	27,303
BA [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	54,632	71,241	125,559	141,790
BA [Member] \| Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	44,033	54,756	101,759	107,969
BA [Member] \| Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	10,599	16,485	23,800	33,821
BA [Member] \| Airline Passenger and Aircraft Owner/Operator [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	44,033	54,756	101,759	107,969
BA [Member] \| Airline, OEM and Aftermarket Dealer [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	10,599	16,485	23,800	33,821
BA [Member] \| Connectivity [Member] \| Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	43,447	54,176	100,422	106,861
BA [Member] \| Entertainment, CAS and Other [Member] \| Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	586	580	1,337	1,108
BA [Member] \| ATG [Member] \| Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	6,876	12,344	16,500	23,679
BA [Member] \| Satellite [Member] \| Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	3,518	3,809	6,892	9,044
BA [Member] \| Other [Member] \| Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	$ 205	$ 332	$ 408	$ 1,098

Net Loss Per Share - Additional Information (Detail) - shares shares in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings Per Share [Abstract]
Net loss	$ (85,979)	$ (83,963)	$ (170,757)	$ (100,762)
Undistributed losses	$ (85,979)	$ (83,963)	$ (170,757)	$ (100,762)
Weighted-average common shares outstanding-basic and diluted	81,757	80,702	81,482	80,575
Net loss attributable to common stock per share—basic and diluted	$ (1.05)	$ (1.04)	$ (2.10)	$ (1.25)

- Definition

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

+ References

+ Details

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

+ References

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+ Details

Inventories - Components of Inventories (Detail) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Work-in-process component parts	$ 21,752	$ 23,141
Finished goods	108,340	94,003
Total inventory	$ 130,092	$ 117,144

Composition of Certain Balance Sheet Accounts - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($)
$ in Thousands

Jun. 30, 2020

Dec. 31, 2019

Prepaid Expense And Other Assets [Abstract]

Contract assets, net of allowances of $1,491 and $0, respectively

^[1]

$ 14,944

$ 12,364

Prepaid satellite services

7,202

11,299

Restricted cash

560

Other

9,705

12,082

Total prepaid expenses and other current assets

$ 32,411

$ 36,305

[1]	Allowance for contract assets as of June 30, 2020 is due to the adoption of ASC 326. See Note 9, “Composition of Certain Reserves and Allowances,” for additional information.

Composition of Certain Balance Sheet Accounts - Schedule of Prepaid Expenses and Other Current Assets (Parenthetical) (Detail) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Prepaid Expense And Other Assets [Abstract]
Contract with Customer, Asset, Accumulated Allowance for Credit Loss, Current	$ 1,491	$ 0

Composition of Certain Balance Sheet Accounts - Property and Equipment (Detail) - USD ($)
$ in Thousands

Jun. 30, 2020

Dec. 31, 2019

Property, Plant and Equipment [Line Items]

Property and equipment, gross

$ 1,036,826

$ 1,067,638

Accumulated depreciation

(573,679)

(507,320)

Total property and equipment, net

463,147

560,318

Office Equipment, Furniture, Fixtures and Other [Member]

Property, Plant and Equipment [Line Items]

Property and equipment, gross

57,335

56,205

Leasehold Improvements [Member]

Property, Plant and Equipment [Line Items]

Property and equipment, gross

44,402

44,389

Airborne Equipment [Member]

Property, Plant and Equipment [Line Items]

Property and equipment, gross

^[1]

708,587

737,593

Network Equipment [Member]

Property, Plant and Equipment [Line Items]

Property and equipment, gross

$ 226,502

$ 229,451

[1]	Decrease in Airborne equipment is due primarily to the impairment of Airborne equipment associated with three of our airline agreements recorded during the three month period ended March 31, 2020.

Composition of Certain Balance Sheet Accounts - Schedule of Other Non-Current Assets (Detail) - USD ($)
$ in Thousands

Jun. 30, 2020

Dec. 31, 2019

Other Assets Noncurrent [Abstract]

Contract assets, net of allowances of $9,568 and $0, respectively

^[1]

$ 54,470

$ 51,829

Deferred STC costs

^[2]

14,851

17,453

Restricted cash

5,101

7,099

Other

^[3]

6,193

13,291

Total other non-current assets

$ 80,615

$ 89,672

[1]	Allowances for contract assets as of June 30, 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 $1.0 million impairment of STC costs associated with three of our airline agreements. See below for additional information.
[3]	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 six month period ended June 30, 2020.

Composition of Certain Balance Sheet Accounts - Schedule of Other Non-Current Assets (Parenthetical) (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Other Assets Noncurrent [Abstract]
Contract with Customer, Asset, Accumulated Allowance for Credit Loss, Noncurrent	$ 9,568,000	$ 0
Impairment of cost-basis investment	3,000,000
Impairment of STC cost	$ 1,000.0

Composition of Certain Balance Sheet Accounts - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Impairment of long-lived assets	$ 987	$ 46,400	$ 47,376

Composition of Certain Balance Sheet Accounts - Accrued Liabilities (Detail) - USD ($)
$ in Thousands

Jun. 30, 2020

Dec. 31, 2019

Accrued Liabilities Current [Abstract]

Airline related accrued liabilities

$ 30,680

$ 43,592

Accrued satellite network costs

33,445

13,843

Accrued interest

17,043

17,048

Warranty reserve

12,450

13,165

Employee compensation and benefits

7,351

29,954

Operating leases

8,990

12,241

Current portion of ABL Credit Facility

^[1]

6,000

Airborne equipment and installation costs

5,363

11,466

Other

26,022

32,802

Total accrued liabilities

$ 147,344

$ 174,111

[1]	See Note 10, “Long-Term Debt and Other Liabilities,” for additional information.

Composition of Certain Balance Sheet Accounts - Other Non-Current Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Other Liabilities Noncurrent [Abstract]
Deferred revenue	$ 25,400	$ 21,889
Asset retirement obligations	12,024	11,560
Deferred tax liabilities	2,429	2,340
Other	13,500	10,704
Total other non-current liabilities	$ 53,353	$ 46,493

Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	$ 0.6		$ 0.6		$ 0.6
Amortization expense	$ 4.5	$ 5.1	$ 9.3	$ 10.5

Intangible Assets - Schedule of Intangible Assets, Other than Goodwill (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Intangible Assets Net Excluding Goodwill [Line Items]
Amortized intangible assets, Gross Carrying Amount	$ 202,191	$ 194,995
Amortized intangible assets, Accumulated Amortization	(160,687)	(151,399)
Amortized intangible assets, Net Carrying Amount	41,504	43,596
Total intangible assets, Gross Carrying amount	234,474	227,278
Total intangible assets, Net Carrying Amount	73,787	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 10 months 24 days
Amortized intangible assets, Gross Carrying Amount	$ 184,386	177,190
Amortized intangible assets, Accumulated Amortization	(144,432)	(135,154)
Amortized intangible assets, Net Carrying Amount	$ 39,954	42,036
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	(1,450)	(1,440)
Amortized intangible assets, Net Carrying Amount	1,550	1,560
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)
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)

Intangible Assets - Summary of Amortization Expenses (Detail) $ in Thousands	Jun. 30, 2020 USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
2020 (period from July 1 to December 31)	$ 8,206
2021	15,622
2022	10,097
2023	3,796
2024	817
Thereafter	$ 2,966

Composition of Certain Reserves and Allowances - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Financing Receivable Allowance For Credit Losses [Line Items]
Warranty reserve balance	$ 12,450	$ 13,165
Minimum
Financing Receivable Allowance For Credit Losses [Line Items]
Standard product warranty term	2 years
Maximum
Financing Receivable Allowance For Credit Losses [Line Items]
Standard product warranty term	10 years

Composition of Certain Reserves and Allowances (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Financing Receivable Allowance For Credit Losses [Line Items]
Accounts receivable, Beginning balance	$ 3,970	$ 686
Accounts receivable, Cumulative-effect adjustment of ASC 326 adoption		1,386
Current-period provision for expected credit losses	1,160	3,095
Write-offs charged against the allowances	(195)	(195)
Other, including dispositions and foreign currency	113	76
Financing Receivable, Ending balance	5,048	5,048
Prepaid and other current assets
Financing Receivable Allowance For Credit Losses [Line Items]
Financing Receivable, Beginning balance	997
Financing Receivable, Cumulative-effect adjustment of ASC 326 adoption		356
Financing Receivable, Current-period provision for expected credit losses	494	1,135
Financing Receivable, Ending balance	1,491	1,491
Other non-current assets
Financing Receivable Allowance For Credit Losses [Line Items]
Financing Receivable, Beginning balance	6,111
Financing Receivable, Cumulative-effect adjustment of ASC 326 adoption		1,923
Financing Receivable, Current-period provision for expected credit losses	3,457	7,645
Financing Receivable, Ending balance	$ 9,568	$ 9,568

Composition of Certain Reserves and Allowances (Parenthetical) (Detail)	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Allowance For Credit Loss [Abstract]
Percentage of provision accounted for credit losses	94.00%	80.00%

Long-Term Debt and Other Liabilities - Schedule of Long-Term Debt (Detail) - USD ($)
$ in Thousands

Jun. 30, 2020

Dec. 31, 2019

Long-Term Debt and Other Liabilities - Summary of Redemption Prices Plus Accrued and Unpaid Interest (Detail) - 2024 Senior Secured Notes [Member]	6 Months Ended
	Jun. 30, 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%

Leases - Other information regarding our leases (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows used in operating leases	$ 11,225	$ 11,908
Operating cash flows used in financing leases	67	27
Financing cash flows used in financing leases	310	383
Operating leases obtained	$ 7,726	$ 1,047
Weighted average remaining lease term
Operating leases	8 years	8 years
Financing leases	2 years	1 year
Weighted average discount rate
Operating leases	9.50%	10.30%
Financing leases	11.40%	8.50%

Leases - Annual Future Minimum Obligations for Operating Leases Other than Arrangements with Commercial Airline Partners (Detail) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Operating Leases
2020 (period from July 1 to December 31)	$ 7,694
2021	20,210
2022	19,142
2023	15,175
2024	11,607
Thereafter	57,303
Total future minimum lease payments	131,131
Less: Amount representing interest	(41,158)
Present value of net minimum lease payments	89,973
Accrued liabilities	$ 8,990	$ 12,241
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccruedLiabilitiesMember
Non-current operating lease liabilities	$ 80,983	$ 77,808
Total lease liabilities	89,973
Financing Leases
2020 (period from July 1 to December 31)	637
2021	935
2022	855
2023	45
Total future minimum lease payments	2,472
Less: Amount representing interest	(205)
Present value of net minimum lease payments	2,267
Accrued liabilities	$ 858
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccruedLiabilitiesMember
Other non-current liabilities	$ 1,409
Total lease liabilities	$ 2,267

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Loss Contingencies [Line Items]
2020 (July 1 through December 31)	$ 63.9
2021	131.4
2022	108.7	$ 26.0
2023	91.4	26.0
2024	59.4	26.0
Thereafter	$ 259.4	$ 30.0
Commitments and contingencies descreption		Company’s 2019 financial statements, the Company determined that the amounts of contractual commitments for satellite transponder and teleport services disclosed in the 2019 Form 10-K were overstated by $26 million in the “3-5 years” column related to 2024 and by $30 million in the “Thereafter” column related to 2029-2032
Linksmart Litigation [Member]
Loss Contingencies [Line Items]
Litigation filing date	April 20, 2018
Securities Litigation [Member]
Loss Contingencies [Line Items]
Litigation filing date	June 27, 2018
Derivative Litigation [Member]
Loss Contingencies [Line Items]
Litigation filing date	September 25, 2018 and September 26, 2018

Fair Value of Financial Assets and Liabilities - Summary of Fair Value and Carrying Value of Long-Term Debt (Parenthetical) (Detail) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
2024 Senior Secured Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Unamortized Discount	$ 3.5	$ 3.9
2022 Convertible Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Unamortized Discount	$ 29.5	$ 35.9

Income Tax - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
Income Tax - Additional Information (Detail) - USD ($)	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Effective income tax rate	(0.10%)	(0.40%)	(0.20%)	(0.50%)
Unrecognized tax benefits	$ 0	$ 0	$ 0	$ 0
Interest or penalties related to uncertain tax positions	0	0	0	0
Liabilities for interest and potential penalties	$ 0	$ 0	$ 0	$ 0

Employee Retirement and Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Thousands			3 Months Ended		6 Months Ended
	Jun. 12, 2020	Mar. 17, 2020	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Stock options, shares granted					1,209,686
Stock options exercised					50,383
Stock options, shares expired					2,854,006
Stock-based compensation expense			$ 3,164	$ 4,318	$ 7,159	$ 8,645
Employee Contribution					100.00%
Percentage of employees contribution matched by the company						4.00%
Employer Contribution			$ 900	$ 1,400	$ 2,100	$ 2,600
Option Exchange Program [Member]
Common stock, shares issued under ESPP	6,664,773
Stock options, shares cancelled					2,896,383
Option Exchange Program [Member] \| Maximum
Stock-based compensation expense					$ 1,000
Employee Stock Purchase Plan [Member]
Common stock, shares issued under ESPP					227,438
Restricted Stock Units (RSUs) [Member]
Share units issued		186,139			192,267
Share units granted					3,013,949
Share units forfeited					311,569
Share units vested					901,487
Deferred Stock Units [Member]
Share units granted					175,449
Share units vested					26,508
Restricted Stock [Member]
Share units vested					25,977