0001564590-21-012575 | 10-K | XBRL Viewer

Print Document View Excel Document

Document And Entity Information - USD ($) $ in Thousands	12 Months Ended
Document And Entity Information - USD ($) $ in Thousands	Dec. 31, 2020	Mar. 04, 2021	Jun. 30, 2020
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Entity Interactive Data Current	Yes
Entity Central Index Key	0001537054
Document Fiscal Period Focus	FY
Document Period End Date	Dec. 31, 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
Entity Common Stock, Shares Outstanding		86,395,670
Entity Address, Country	IL
Document Transition Report	false
Document Annual 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 1400
Entity Address, City or Town	Chicago
Entity Address, Postal Zip Code	60606
City Area Code	303
Local Phone Number	301-3271
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
ICFR Auditor Attestation Flag	true
Entity Public Float			$ 164,358,666
Documents Incorporated by Reference	Portions of the registrant’s definitive Proxy Statement for its Annual Meeting of Stockholders scheduled to be held May 27, 2021 are incorporated by reference into Part III of this Form 10-K. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 31, 2020.
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common stock, par value $0.0001 per share
Trading Symbol	GOGO
Security Exchange Name	NASDAQ
Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Preferred Stock Purchase Rights
Trading Symbol	GOGO
Security Exchange Name	NASDAQ

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 435,345	$ 170,016
Accounts receivable, net of allowances of $1,044 and $660, respectively	39,833	42,322
Inventories	28,114	35,205
Prepaid expenses and other current assets	8,934	6,813
Current assets of discontinued operations		170,469
Total current assets	512,226	424,825
Non-current assets:
Property and equipment, net	63,493	69,183
Intangible assets, net	52,693	51,803
Operating lease right-of-use assets	33,690	35,807
Other non-current assets, net of allowances of $375 and $0, respectively	11,486	12,121
Non-current assets of discontinued operations		620,961
Total non-current assets	161,362	789,875
Total assets	673,588	1,214,700
Current liabilities:
Accounts payable	11,013	5,495
Accrued liabilities	83,009	48,070
Deferred revenue	3,113	2,225
Current portion of long-term debt	341,000
Current liabilities of discontinued operations		196,852
Total current liabilities	438,135	252,642
Non-current liabilities:
Long-term debt	827,968	1,101,248
Non-current operating lease liabilities	38,018	42,016
Other non-current liabilities	10,581	7,531
Non-current liabilities of discontinued operations		210,153
Total non-current liabilities	876,567	1,360,948
Total liabilities	1,314,702	1,613,590
Commitments and contingencies (Note 18)
Stockholders’ deficit
Common stock, par value $0.0001 per share; 500,000,000 shares authorized at December 31, 2020 and 2019; 91,086,191 and 88,292,821 shares issued at December 31, 2020 and 2019, respectively; and 85,990,499 and 88,240,877 shares outstanding at December 31, 2020 and 2019, respectively	9	9
Additional paid-in capital	1,088,590	979,499
Accumulated other comprehensive loss	(1,013)	(2,256)
Treasury stock, at cost	(98,857)
Accumulated deficit	(1,629,843)	(1,376,142)
Total stockholders’ deficit	(641,114)	(398,890)
Total liabilities and stockholders’ deficit	$ 673,588	$ 1,214,700

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Allowances on accounts receivable	$ 1,044	$ 660
Other non-current assets, net of allowances	$ 375	$ 0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	91,086,191	88,292,821
Common stock, shares outstanding	85,990,499	88,240,877

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenue:
Total revenue	$ 269,718	$ 308,985	$ 290,153
Operating expenses:
Cost of service revenue (exclusive of items shown below)	45,073	42,142	37,139
Cost of equipment revenue (exclusive of items shown below)	39,299	51,744	55,416
Engineering, design and development	25,227	26,013	18,519
Sales and marketing	15,135	21,236	24,396
General and administrative	54,467	54,628	57,903
Depreciation and amortization	14,166	16,690	14,363
Total operating expenses	193,367	212,453	207,736
Operating income	76,351	96,532	82,417
Other (income) expense:
Interest income	(722)	(4,000)	(4,122)
Interest expense	125,787	130,473	122,620
Loss on extinguishment of debt		57,962	19,653
Other (income) expense	(9)	31	80
Total other expense	125,056	184,466	138,231
Loss from continuing operations before income taxes	(48,705)	(87,934)	(55,814)
Income tax provision (benefit)	(146)	563	(3,354)
Net loss from continuing operations	(48,559)	(88,497)	(52,460)
Net loss from discontinued operations, net of tax	(201,477)	(57,507)	(109,571)
Net loss	$ (250,036)	$ (146,004)	$ (162,031)
Net loss attributable to common stock per share—basic and diluted:
Net loss from continuing operations	$ (0.59)	$ (1.10)	$ (0.66)
Net loss from discontinued operations	(2.45)	(0.71)	(1.36)
Net loss	$ (3.04)	$ (1.81)	$ (2.02)
Weighted average number of shares—basic and diluted	82,266,000	80,766,000	80,038,000
Service [Member]
Revenue:
Total revenue	$ 211,987	$ 221,922	$ 196,377
Product [Member]
Revenue:
Total revenue	$ 57,731	$ 87,063	$ 93,776

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ 845	$ (80,124)	$ (85,979)	$ (84,778)	$ (22,351)	$ (22,891)	$ (83,963)	$ (16,799)	$ (250,036)	$ (146,004)	$ (162,031)
Currency translation adjustments, net of tax									1,243	1,298	(2,621)
Comprehensive loss									$ (248,793)	$ (144,706)	$ (164,652)

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22595-107794

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121641772&loc=SL7669625-108580

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(18))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=121586364&loc=d3e3602-108585

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22663-107794

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121326447&loc=SL5780133-109256

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22658-107794

+ Details

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Operating activities from continuing operations:
Net loss	$ (48,559)	$ (88,497)	$ (52,460)
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Depreciation and amortization	14,166	16,690	14,363
Loss on asset disposals, abandonments and write-downs	64	496
Provision for expected credit losses	1,071
Deferred income taxes	(232)	178	(3,821)
Stock-based compensation expense	7,808	8,654	8,536
Amortization of deferred financing costs	5,892	5,260	4,280
Accretion and amortization of debt discount and premium	13,908	14,711	18,255
Loss on extinguishment of debt		57,962	19,653
Changes in operating assets and liabilities:
Accounts receivable	1,315	(9,023)	964
Inventories	7,091	11,666	(1,328)
Prepaid expenses and other current assets	(277)	1,144	1,764
Contract assets	(9,439)	(2,547)	(581)
Accounts payable	4,963	(264)	(2,811)
Accrued liabilities	4,470	2,245	(530)
Deferred revenue	898	(260)	(4,508)
Accrued interest	787	(29,646)	(955)
Other non-current assets and liabilities	587	(1,641)	1,071
Net cash provided by (used in) operating activities from continuing operations	4,513	(12,872)	1,892
Investing activities from continuing operations:
Purchases of property and equipment	(1,818)	(1,490)	(2,729)
Acquisition of intangible assets—capitalized software	(7,172)	(4,983)	(7,920)
Purchases of short-term investments			(39,323)
Redemptions of short-term investments		39,323	212,792
Net cash provided by (used in) investing activities from continuing operations	(8,990)	32,850	162,820
Financing activities from continuing operations:
Proceeds from credit facility draw	26,000
Repayments of amounts drawn from credit facility	(26,000)
Proceeds from issuance of senior secured notes	51,750	920,683
Redemption of senior secured notes		(741,360)
Proceeds from issuance of convertible notes			237,750
Repurchase of convertible notes	(2,498)	(159,502)	(200,438)
Payment of debt issuance costs		(22,976)	(8,054)
Payments on finance leases	(546)
Stock-based compensation activity	(4,227)	325	396
Net cash provided by (used in) financing activities from continuing operations	44,479	(2,830)	29,654
Net cash provided by (used in) operating activities	(137,200)	76,933	(84,203)
Net cash provided by (used in) investing activities	357,393	(106,559)	(121,014)
Net cash used in financing activities	(54)	(713)	(2,340)
Net cash provided by (used in) discontinued operations	220,139	(30,339)	(207,557)
Effect of foreign exchange rate changes on cash	(1,946)	(250)	578
Increase (decrease) in cash, cash equivalents and restricted cash	258,195	(13,441)	(12,613)
Cash, cash equivalents and restricted cash at beginning of period	177,675	191,116	203,729
Cash, cash equivalents and restricted cash at end of period	435,870	177,675	191,116
Less: current restricted cash	525	560	1,535
Less: non-current restricted cash		7,099	5,426
Cash and cash equivalents at end of period	435,345	170,016	184,155
Supplemental Cash Flow Information:
Cash paid for interest	106,051	140,833	101,489
Cash paid for taxes	$ 401	$ 490	$ 401

Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Revision of Prior Period Accounting Standards Update Adjustment [Member]	Common Stock	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, 2017	$ (191,564)		$ 9	$ 898,729	$ (933)	$ (1,089,369)
Beginning Balance, Shares at Dec. 31, 2017			86,843,928
Net loss	(162,031)					(162,031)
Currency translation adjustments, net of tax	(2,621)				(2,621)
Stock-based compensation expense	16,912			16,912
Issuance of common stock upon exercise of stock options	21			21
Issuance of common stock upon exercise of stock options, Shares			2,500
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares			393,361
Tax withholding related to vesting of restricted stock units	(1,181)			(1,181)
Issuance of common stock in connection with employee stock purchase plan	1,556			1,556
Issuance of common stock in connection with employee stock purchase plan, Shares			320,905
Issuance of 2022 Convertible Notes (including issuance costs)	47,421			47,421
Ending Balance at Dec. 31, 2018	(268,761)	$ 22,726	$ 9	963,458	(3,554)	(1,228,674)	$ 22,726
Ending Balance, Shares at Dec. 31, 2018			87,560,694
Net loss	(146,004)					(146,004)
Currency translation adjustments, net of tax	1,298				1,298
Stock-based compensation expense	16,511			16,511
Issuance of common stock upon exercise of stock options	16			16
Issuance of common stock upon exercise of stock options, Shares			3,338
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares			372,030
Tax withholding related to vesting of restricted stock units	(865)			(865)
Issuance of common stock in connection with employee stock purchase plan	1,174			1,174
Issuance of common stock in connection with employee stock purchase plan, Shares			304,815
Repurchase of 2020 Convertible Notes	(795)			(795)
Ending Balance at Dec. 31, 2019	(398,890)	(1,464)	$ 9	979,499	(2,256)	(1,376,142)	(1,464)
Ending Balance, Shares at Dec. 31, 2019			88,240,877
Net loss	(250,036)					(250,036)
Currency translation adjustments, net of tax	1,243				1,243
Stock-based compensation expense	14,458			14,458
Issuance of common stock upon exercise of stock options	262			262
Issuance of common stock upon exercise of stock options, Shares			87,104
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares			2,376,709
Tax withholding related to vesting of restricted stock units	(5,470)			(5,470)
Issuance of common stock in connection with employee stock purchase plan	984		$ 1	983
Issuance of common stock in connection with employee stock purchase plan, Shares			363,209
Settlement of prepaid forward shares			$ (1)	98,858				$ (98,857)
Settlement of prepaid forward shares, Shares			(5,077,400)					5,077,400
Ending Balance at Dec. 31, 2020	$ (641,114)	$ (3,665)	$ 9	$ 1,088,590	$ 1,013	$ (1,629,843)	$ (3,665)	$ (98,857)
Ending Balance, Shares at Dec. 31, 2020			85,990,499					5,077,400

Background

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Background


1.	Background

Gogo (“we”, “us,” “our”) is the world’s largest provider of broadband connectivity services for the business aviation market. Our mission is to provide ground-like connectivity to every passenger on every flight around the globe, enabling superior passenger experiences and efficient flight operations. To accomplish our mission, we design, build and operate dedicated air-to-ground (“ATG”) networks, engineer, install and maintain in-flight systems of proprietary hardware and software, and deliver customizable connectivity and wireless entertainment services and global support capabilities to our aviation partners. Our services include satellite-based voice and data services through our strategic alliances with satellite providers.

On December 1, 2020, we completed the previously announced sale of our commercial aviation (“CA”) business to a subsidiary of Intelsat Jackson Holdings S.A. (“Intelsat”) for a purchase price of $400 million in cash, subject to certain adjustments (the “Transaction”).

At the closing of the Transaction, the parties entered into certain ancillary agreements, including a transition services agreement, an intellectual property license agreement and commercial agreements. These agreements include an ATG network sharing agreement, pursuant to which we provide certain inflight connectivity services on our current ATG network and, when available, our Gogo 5G network, subject to certain revenue sharing obligations. Under the ATG network sharing agreement, Intelsat will have exclusive access to the ATG network for commercial aviation in North America, subject to minimum revenue guarantees starting at $5 million in the first year of the agreement.

As a result of the Transaction, the CA business is reported in discontinued operations and all periods presented in this Form 10-K have been conformed to present the CA business as a discontinued operation. We report the financial results of discontinued operations separately from continuing operations to distinguish the financial impact of disposal transactions from ongoing operations. Discontinued operations reporting occurs only when the disposal of a component or a group of components (i) meets the held-for-sale classification criteria or is disposed of by sale or other than by sale, and (ii) represents a strategic shift that will have a major effect on our operations and financial results. The results of operations and cash flows of a discontinued operation are restated for all comparative periods presented.

Unless otherwise noted, discussion in these Notes to Consolidated Financial Statements refers to our continuing operations. Refer to Note 2, “Discontinued Operations” for further information.

As a result of the Transaction, our chief operating decision maker evaluates performance and business results for our operations, and makes resource and operating decisions, on a consolidated basis. As such, we do not present segment information in this Annual Report on Form 10-K. Refer to Note 13, “Business Segments and Major Customers,” for further information.

Discontinued Operations

12 Months Ended

Dec. 31, 2020

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

As discussed in Note 1, “Background,” on December 1, 2020, we completed the sale of our CA business to Intelsat. As a result of the Transaction, the CA business is reported for all periods as discontinued operations.

The following table summarizes the results of discontinued operations which are presented as Net loss from discontinued operations in our consolidated statements of operations (in thousands):

	For the Years Ended December 31,
	2020			2019			2018
Revenue:
Service revenue	$	192,616		$	442,431		$	433,770
Equipment revenue		40,483			84,310			169,841
Total revenue		233,099			526,741			603,611
Operating expenses:
Cost of service revenue (exclusive of items shown below)		145,958			255,706			254,503
Cost of equipment revenue (exclusive of items shown below)		33,978			82,984			166,828
Engineering, design and development		57,167			82,597			101,571
Sales and marketing		24,121			27,920			34,427
General and administrative		40,551			35,215			36,366
Impairment of long-lived assets		47,375		-			-
Depreciation and amortization		119,827			102,127			119,254
Total operating expenses		468,977			586,549			712,949
Operating loss	(235,878		)	(59,808		)	(109,338		)
Other (income) expense:
Gain on sale of CA business	(37,958		)	-			-
Other (income) expense		3,134		(2,744		)	172
Total other (income) expense:	(34,824		)	(2,744		)	172
Loss before income taxes	(201,054		)	(57,064		)	(109,510		)
Income tax provision	423			443			61
Net loss from discontinued operations, net of tax	$	(201,477	)	$	(57,507	)	$	(109,571	)

The following discussion relates entirely to discontinued operations.

Gain on sale – Upon the closing of the Transaction on December 1, 2020, we received initial gross proceeds of $386.3 million, which reflects the $400.0 million purchase price, adjusted for cash, debt, transaction expenses and working capital. The final purchase price remains subject to change due to customary post-closing purchase price adjustment procedures set forth in the purchase and sale agreement between Gogo and Intelsat, that are not yet complete. In February 2021, Intelsat delivered a draft closing statement that would reduce the working capital portion of the purchase price computation by $9.4 million, which would result in Gogo returning to Intelsat $9.4 million of the initial gross proceeds. Gogo is reviewing Intelsat’s draft closing statement in accordance with the terms of the purchase and sale agreement. As this post-closing purchase price adjustment is not yet finalized and therefore represents a contingent gain, $9.4 million has been recorded as a deferred gain on sale included within Accrued liabilities. As a result, we have recognized within Gain on sale of CA business a pretax gain on sale of $38.0 million, computed as the $386.3 million of initial gross proceeds less (i) the potential $9.4 million post-closing purchase price adjustment not yet finalized, (ii) the carrying value of the assets and liabilities transferred in the Transaction and (iii) Transaction-related costs.

Change in 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 were shortened to align with the expiration dates in the amended agreement. The change in estimated useful lives resulted in approximately $41 million of accelerated depreciation during the year ended December 31, 2020. We ceased depreciating these assets and other depreciable assets included as part of

discontinued operations when the CA business was classified as held for sale. Additionally, the amortization periods for the remaining deferred airborne lease incentives associated with the equipment installed on the 2Ku fleets were shortened to align with the new expiration dates, which resulted in approximately $42 million of accelerated amortization during the year ended December 31, 2020. Amortization of deferred airborne lease incentives is a reduction to cost of service revenue.

Credit Losses – During the year ended December 31, 2020, we recorded $10.7 million of provisions for expected credit losses, primarily related to one international airline partner entering bankruptcy administration, while we had recoveries of approximately $0.6 million. See “Recently Issued Accounting Pronouncements” in Note 3, “Summary of Significant Accounting Policies,” for additional information.

Arrangements with commercial airlines – For our divested CA business, pursuant to contractual agreements with our airline partners, we placed our equipment on commercial aircraft operated by the airlines in order to deliver our service to passengers on the aircraft. We had two types of commercial airline arrangements: turnkey and airline-directed. Under the airline-directed model, we transferred control of the equipment to the airline and therefore the airline was our customer in these transactions. Under the turnkey model, we had not transferred control of our equipment to our airline partner and, as a result, the airline passenger was deemed to be our customer. Transactions with our airline partners under the turnkey model were accounted for as an operating lease of space on an aircraft.

We recognized $71.2 million, $28.6 million and $31.7 million, respectively, for the years ended December 31, 2020, 2019 and 2018 as a reduction to our cost of service revenue from the amortization of deferred airborne lease incentives. The increase during the year ended December 31, 2020 was due to the Delta amendment.

Under the turnkey model, the revenue share paid to our airline partners represented operating lease payments. These payments were deemed to be contingent rental payments as the payments due to each airline were based on a percentage of our CA service revenue generated from that airline’s passengers, which was unknown until realized. Therefore, we estimated 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 incentives exceeded our revenue share expense by $49.1 million for the year ended December 31, 2020. We incurred net rental expense of $25.1 million and $24.5 million, respectively, for the years ended December 31, 2019 and 2018.

Asset impairment – We reviewed our long-lived assets, including property and equipment, right-of-use assets, and other non-current assets, for potential impairment whenever events indicated that the carrying amount of such assets might not be recoverable. We performed 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 grouped certain long-lived assets by airline contract and by technology. If we determined that an impairment existed, the amount of the impairment was computed as the difference between the asset group’s carrying value and its estimated fair value, following which the assets were written down to their estimated fair values.

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 was impaired due to the bankruptcy of three airline partners. As such, we recorded a $1.0 million charge for impairment of long-lived assets for the three-month period ended June 30, 2020. For the year ended December 31, 2020, charges recorded for impairments of long-lived assets totaled $47.4 million. No such charges were recorded for the years ended December 31, 2019 or 2018.

Revenue Recognition

We account for revenue in accordance with Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“ASC 606”).

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

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

We constrained our estimates to reduce the probability of a significant revenue reversal in future periods, allocated variable consideration to the identified performance obligations and recognized revenue in the period the services were provided. Our estimates were based on historical experience, anticipated future performance, market conditions and our best judgment at the time. For 2020, our estimates included management’s best assumptions for the continued impact of COVID-19, which included decreased flights and gross passenger opportunity (“GPO”).

A significant change in one or more of these estimates could have affected estimated contract value. For example, estimates of variable revenue within certain contracts required estimation of the number of sessions or megabytes that would be purchased over the contract term and the average revenue per connectivity session, which varies based on the connectivity options available to passengers on each airline. Estimated revenue under these contracts anticipated increases in take rates over time and assumed an average revenue per session consistent with our historical experience.

We regularly reviewed and updated our estimates, especially in light of COVID-19, and recognized adjustments under the cumulative catch-up method. Any adjustments under this method were recorded as a cumulative adjustment in the period identified and revenue for future periods was recognized using the new adjusted estimate.

Stock-based compensation – In August 2020, the compensation committee of our Board of Directors (the “Compensation Committee”) approved modifications to the vesting conditions and exercise periods of outstanding equity compensation awards held by certain of our then-current employees who became employees of Intelsat in the Transaction. These modifications became effective upon the consummation of the Transaction. Pursuant to such modifications, the options and restricted stock units (“RSUs”) held by Intelsat employees generally vest on the earlier of (i) the original vesting date and (ii) November 30, 2021; provided that the employee does not voluntarily resign from and is not terminated for cause by Intelsat prior to such date. Certain of these awards vest based on conditions that are not classified as a service, market or performance condition and as a result such awards are classified as a liability. All costs related to stock-based compensation for our prior employees who became employees of Intelsat in the Transaction have been recognized as of December 31, 2020.

The following is a summary of our stock-based compensation expense by operating expense line contained within the results of discontinued operations for the years December 31, 2020, 2019 and 2018 (in thousands):

	2020		2019		2018
Cost of service revenue	$	7,647	$	1,497	$	1,659
Cost of equipment revenue	-		-		-
Engineering, design and development		5,836		2,398		2,626
Sales and marketing		7,911		2,144		2,513
General and administrative		4,413		1,819		1,577
Total stock-based compensation expense	$	25,807	$	7,858	$	8,375

For additional information on our stock-based compensation plans, see Note 15, “Employee Retirement and Postretirement Benefits.”

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

3.	Summary of Significant Accounting Policies

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

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

Significant Risks and Uncertainties - Our operations are subject to certain risks and uncertainties, including without limitation those associated with continuing losses, fluctuations in operating results, funding of our growth, implementation of our technology roadmap, strategic alliances, relationships with customers, suppliers and dealers, financing terms that may restrict operations, regulatory issues, competition, COVID-19, the economy, technology trends and evolving industry standards.

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

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

Certain cash amounts are restricted as to use and are classified outside of cash and cash equivalents. See Note 9, “Long-Term Debt and Other Liabilities,” for further details.

Concentrations of Credit Risk - Financial instruments that potentially subject us to a concentration of credit risk consist principally of cash and cash equivalents. All cash and cash equivalents are invested with creditworthy financial institutions.

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

We also consider the existence of any uncertain tax positions and, as necessary, provide a reserve for any uncertain tax positions at each reporting date.

See Note 16, “Income Tax,” for further details.

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

See Note 6, “Composition of Certain Balance Sheet Accounts,” for further details.

Property and Equipment and Depreciation - Property and equipment, including leasehold improvements, are stated at historical cost, less accumulated depreciation. Network asset inventory and construction in progress, which include materials, transmission and related equipment, interest and other costs relating to the construction and development of our network, are not depreciated until they are put into service. Network equipment consists of switching equipment, antennas, base transceiver stations, site preparation costs, and other related equipment used in the operation of our network. Depreciation expense totaled $14.2 million, $16.7 million and $14.4 million for the years ended December 31, 2020, 2019 and 2018, respectively. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives for owned assets, which are as follows:

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

See Note 6, “Composition of Certain Balance Sheet Accounts,” for further details.

Improvements to leased property are depreciated over the shorter of the useful life of the improvement or the term of the related lease. We reassess the useful lives of leasehold improvements when there are changes to the terms of the underlying lease. Such reassessment has resulted in the useful life of specific assets being adjusted to a shorter period than originally estimated, resulting in an increase in annual depreciation expense for those assets. Repairs and maintenance costs are expensed as incurred.

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

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

Intangible Assets - Intangible assets with indefinite lives are not amortized but are reviewed for impairment at least annually or whenever events or circumstances indicate the carrying value of the asset may not be recoverable. Our FCC Licenses (as defined in Note 8, “Intangible Assets”) are our only indefinite-lived intangible assets. We perform our annual impairment test of our FCC Licenses during the fourth quarter of each fiscal year. We assess qualitative factors to determine the likelihood of impairment. Our qualitative analysis includes, but is not limited to, assessing the changes in macroeconomic conditions, regulatory environment, industry and market conditions, financial performance versus budget and any other events or circumstances specific to goodwill and the FCC Licenses. If it is more likely than not that the fair value of the FCC Licenses is greater than the carrying value, no further testing is required. Otherwise, we will apply the quantitative impairment test method.

Our quantitative impairment testing of the FCC Licenses uses the Greenfield method, an income-based approach. When performing this quantitative impairment testing, we estimate the fair value of the FCC Licenses asset balances based primarily on projected future operating results, discounted cash flows, and other assumptions. Projected future operating results and cash flows used for valuation purposes may reflect considerable improvements relative to historical periods with respect to, among other things, revenue growth and operating margins. Although we believe our projected future operating results and cash flows and related estimates regarding fair values are based on reasonable assumptions, projected operating results and cash flows may not always be achieved. The failure to achieve one or more of our assumptions regarding projected operating results and cash flows in the near term or long term could reduce the estimated fair value below carrying value and result in the recognition of an impairment charge. The results of our annual goodwill and indefinite-lived intangible asset impairment assessments for 2020, 2019 and 2018 indicated no impairment.

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

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

See Note 8, “Intangible Assets,” for further details.

Long-Lived Assets - We review our long-lived assets to determine potential impairment whenever events indicate that the carrying amount of such assets may not be recoverable. We do this by comparing the carrying value of the long-lived assets with the estimated future undiscounted cash flows expected to result from the use of the assets, including cash flows from disposition. If we determine an impairment exists, the asset is written down to estimated fair value. There were no impairments of long-lived assets in 2020, 2019 or 2018.

Revenue Recognition - Our revenue is primarily earned from providing connectivity and entertainment services and through sales of equipment.

Service revenue primarily consists of monthly subscription and usage fees paid by aircraft owners and operators for telecommunication, data, and in-flight entertainment services and is recognized as the services are provided to the customer.

Equipment revenue primarily consists of proceeds from the sale of ATG and satellite connectivity equipment and the sale of entertainment equipment and is generally recognized when the equipment is shipped to OEMs and dealers.

We account for revenue in accordance with Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“ASC 606”). We determine revenue recognition through the following steps:

•

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

•

Identification of the performance obligations in the contract;

•

Determination of the transaction price;

•

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

•

Recognition of revenue as we satisfy the performance obligations.

See Note 5, “Revenue Recognition,” for further information.

Research and Development Costs - Expenditures for research and development are charged to expense as incurred and totaled $25.2 million, $26.0 million and $18.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. Research and development costs are reported as engineering, design and development expenses in our consolidated statements of operations.

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

See Note 6, “Composition of Certain Balance Sheet Accounts,” for the details of the changes in our warranty reserve.

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

See Note 6, “Composition of Certain Balance Sheet Accounts,” for the details of the changes in our asset retirement obligations.

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

See Note 12, “Fair Value of Financial Assets and Liabilities,” for further information.

Derivatives - In March 2015, we entered into the Forward Transactions (as defined and described in Note 9, “Long-Term Debt and Other Liabilities”) in which we purchased 7.2 million shares of our common stock for approximately $140 million, with an expected settlement date on or around March 13, 2020, and in December 2019, we amended a portion of the Forward Transactions to extend the expected settlement date for approximately 2.1 million of those shares to on or around May 15, 2022. 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 9, “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 consolidated balance sheets. Because the Forward Transactions are indexed to our own stock and classified within stockholders’ equity, we do not account for the Forward Transactions as derivative instruments in accordance with Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging.

See Note 9, “Long-Term Debt and Other Liabilities,” Note 11, “Common Stock and Preferred Stock,” and Note 12, “Fair Value of Financial Assets and Liabilities,” for further information.

Convertible Notes – Proceeds received from the issuance of the 2022 Convertible Notes and the 2020 Convertible Notes (as defined in Note 9, “Long-Term Debt and Other Liabilities”) were initially allocated between a liability component (long-term debt) and an equity component (additional paid-in capital), within the consolidated balance sheet. The fair value of the liability component 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 and the 2020 Convertible Notes.

See Note 9, “Long-Term Debt and Other Liabilities,” for further information.

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

See Note 4, “Net Loss Per Share,” for further information.

Stock-Based Compensation Expense - Compensation cost is measured and recognized at fair value for all stock-based payments, including stock options. For time-based vesting stock options, we estimate fair value using the Black-Scholes option-pricing model, which requires assumptions, such as expected volatility, risk-free interest

rate, expected life, and dividends. Forfeitures are recognized when they occur. RSUs and restricted stock are measured based on the fair market value of the underlying stock on the date of grant. For awards with a market condition (which we have used on a limited basis), we estimated fair value using the Monte Carlo Simulation model, which requires assumptions, such as volatility, risk-free interest rate, expected life and dividends. Our stock-based compensation expense is recognized over the applicable vesting period and is included in the same operating expense line items in the consolidated statements of operations as the base cash compensation paid to the underlying employees.

See Note 14, “Stock-Based Compensation,” for further information.

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

We have operating lease agreements for which we have recorded lease liabilities and right-of-use assets for leases primarily related to cell sites, office buildings, warehouses and computer and office equipment. We determine whether a contract contains a lease at contract inception and calculate the lease liability and right-of-use asset using our incremental borrowing rate. Our cell site leases generally have terms of five to ten years, with renewal options for an additional five to 25 years. For certain cell sites, the renewal options are deemed to be reasonably certain to be exercised. Our building leases generally range from one to ten years, with renewal options for an additional one to five years. We recognize operating lease expense on a straight-line basis over the lease term. We have finance leases for computer and office equipment. Covenants within the 2024 Senior Secured Notes contain certain restrictions on our ability to enter into new finance lease arrangements.

See Note 17, “Leases,” for further information.

Advertising Costs - Costs for advertising are expensed as incurred.

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

See Note 9, “Long-Term Debt and Other Liabilities” for further information.

Comprehensive Loss - Comprehensive loss for the years ended December 31, 2020, 2019 and 2018 is net loss plus unrealized gains and losses on foreign currency translation adjustments.

Recently Issued 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 consolidated balance sheet as of January 1, 2020 by the recognition of allowance for credit losses as summarized below:

	Balance at December 31, 2019			Impact of ASC 326			Balances with Adoption of ASC 326
Assets
Accounts receivable	$	42,322		$	(404	)	$	41,918
Other non-current assets	$	12,121		$	(75	)	$	12,046
Equity
Accumulated deficit ⁽¹⁾	$	(1,376,142	)	$	(3,665	)	$	(1,379,807	)

(1)

The $3.7 million impact of the adoption of ASC 326 is comprised of $0.5 million for our continuing operations related to accounts receivable and $3.2 million for our discontinued operations comprised of $1.0 million related to accounts receivable, $0.4 million related to prepaid and other current assets, and $1.8 million related to other non-current assets.

See Note 7, “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 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 consolidated financial statements. See Note 12, “Fair Value of Financial Assets and Liabilities,” for additional information.

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

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

Adoption of ASC 842 had a material impact on our consolidated balance sheet through recognition of right-of-use assets and operating lease liabilities. Adoption did not have a material impact on our consolidated statements of operations or our consolidated statements of cash flows and did not result in the recognition of incremental finance leases, formerly referred to as capital leases.

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

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

See Note 17, “Leases,” for additional information.

All other new pronouncements:

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Simplifying the Accounting for Income Taxes (Topic740), which removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2020 with early adoption permitted. Amendments are to be applied prospectively, except for certain amendments that are to be applied either retrospectively or with a modified retrospective approach through a cumulative effect adjustment recorded to retained earnings. We do not currently believe that the adoption of this standard will have a material impact on our consolidated financial statements.

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, 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. Adoption of this standard did not have a material impact on our consolidated financial statements.

In August 2020, the FASB issued ASU No. 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). ASU 2020-06 simplifies the accounting for certain convertible instruments by removing the separation models for convertible debt with a cash conversion feature or convertible instruments with a beneficial conversion feature. As a result, more convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features. Additionally, ASU 2020-06 amends the diluted earnings per share calculation for convertible instruments by requiring the use of the if-converted method. The treasury stock method is no longer available. This guidance is effective beginning on January 1, 2022. We are currently evaluating the impact that this guidance will have upon our consolidated financial statements.

Net Loss Per Share

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Net Loss Per Share

4. Net Loss Per Share

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

The shares of common stock effectively repurchased in connection with the Forward Transactions (as defined and described in Note 9, “Long-Term Debt and Other Liabilities”) are considered participating securities requiring the two-class method to calculate basic and diluted earnings per share. Net earnings in future periods will be

allocated between common shares and participating securities. In periods of a net loss, the shares associated with the Forward Transactions will not receive an allocation of losses, as the counterparties to the Forward Transactions are not required to fund losses. Additionally, the calculation of weighted average shares outstanding as of December 31, 2020, 2019 and 2018 excludes approximately 2.1 million, 7.2 million and 7.2 million shares, respectively, associated with the Forward Transactions. As a result of the net loss for each of the years ended December 31, 2020, 2019 and 2018 for the periods where such shares or securities were outstanding, all of the outstanding shares of common stock underlying stock options, deferred stock units and restricted stock units were excluded from the computation of diluted shares outstanding because they were anti-dilutive.

The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31, 2020, 2019 and 2018; however, because of the undistributed losses, the shares associated with the Forward Transactions are excluded from the computation of basic earnings per share as undistributed losses are not allocated to these shares (in thousands, except per share amounts):

	For the Years Ended December 31,
	2020			2019			2018
Net loss from continuing operations	$	(48,559	)	$	(88,497	)	$	(52,460	)
Net loss from discontinued operations		(201,477	)		(57,507	)		(109,571	)
Net loss		(250,036	)		(146,004	)		(162,031	)
Less: Participation rights of the Forward Transactions		—			—			—
Undistributed losses	$	(250,036	)	$	(146,004	)	$	(162,031	)
Weighted-average common shares outstanding- basic and diluted		82,266			80,766			80,038
Net loss attributable to common stock per share- basic and diluted:
Net loss from continuing operations	$	(0.59	)	$	(1.10	)	$	(0.66	)
Net loss from discontinued operations		(2.45	)		(0.71	)		(1.36	)
Net loss	$	(3.04	)	$	(1.81	)	$	(2.02	)

Revenue Recognition

12 Months Ended

Dec. 31, 2020

Revenue From Contract With Customer [Abstract]

Revenue Recognition

5.	Revenue Recognition

Remaining Performance Obligations

As of December 31, 2020, the aggregate amount of the transaction price in our customer contracts allocated to unsatisfied performance obligations was approximately $71 million. Approximately $69million 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. The remaining $2 million of such amount represents future equipment revenue that is expected to be recognized within the next year. We have excluded from this amount consideration from contracts that have an original duration of one year or less.

Disaggregation of revenue

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


	For the Year Ended December 31,
		2020		2019		2018
Service revenue
Connectivity	$	209,160	$	219,450	$	195,022
Entertainment and other		2,827		2,472		1,355
Total service revenue	$	211,987	$	221,922	$	196,377

Equipment revenue
ATG	$	45,200	$	62,899	$	72,159
Satellite		11,746		21,755		18,165
Other		785		2,409		3,452
Total equipment revenue	$	57,731	$	87,063	$	93,776

Customer type
Aircraft owner/operator	$	211,987	$	221,922	$	196,377
OEM and aftermarket dealer		57,731		87,063		93,776
Total revenue	$	269,718	$	308,985	$	290,153

Contract balances

Our current and non-current deferred revenue balances totaled $3.1 million and $2.2 million as of December 31, 2020 and December 31, 2019, respectively. Deferred revenue includes, among other things, fees paid for equipment subscription connectivity products.

Our current and non-current contract asset balances totaled $12.2 million and $3.1 million as of December 31, 2020 and December 31, 2019, respectively. Contract assets represent the aggregate amount of revenue recognized in excess of billings primarily for certain sales programs.

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Composition of Certain Balance Sheet Accounts

12 Months Ended

Dec. 31, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Composition of Certain Balance Sheet Accounts


6.	Composition of Certain Balance Sheet Accounts

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

	December 31,
	2020		2019
Work-in-process component parts	$	15,405	$	23,141
Finished goods		12,709		12,064
Total inventory	$	28,114	$	35,205

Prepaid expenses and other current assets as of December 31, 2020 and 2019 were as follows (in thousands):

	December 31,
	2020		2019
Contract assets	$	2,417	$	540
Restricted cash	525		560
Other		5,992		5,713
Total prepaid expenses and other current assets	$	8,934	$	6,813

Property and equipment as of December 31, 2020 and 2019 were as follows (in thousands):

	December 31,
	2020			2019
Office equipment, furniture, fixtures and other	$	10,986		$	10,526
Leasehold improvements		12,012			12,012
Network equipment		139,884			138,727
		162,882			161,265
Accumulated depreciation	(99,389		)	(92,082		)
Property and equipment, net	$	63,493		$	69,183

Other non-current assets as of December 31, 2020 and 2019 consist of the following (in thousands):

	December 31,
	2020		2019
Contract assets, net of allowances of $375 and $0, respectively	$	9,775	$	2,588
Restricted cash		—		7,099
Other		1,711		2,434
Total other non-current assets	$	11,486	$	12,121

Accrued liabilities as of December 31, 2020 and 2019 consist of the following (in thousands):

	December 31,
	2020		2019
Accrued interest	$	17,836	$	17,048
Employee compensation and benefits ⁽¹⁾		35,516		9,818
Operating leases		8,089		7,580
Deferred gain on sale of CA business ⁽²⁾		9,400		—
Warranty reserve		2,400		2,500
Taxes		2,022		5,037
Other		7,746		6,087
Total accrued liabilities	$	83,009	$	48,070

(1)

Includes $19.2 million expected to be paid in Gogo common stock for employees classified within discontinued operations.

(2)

Relates to sale of CA business on December 1, 2020. See Note 2, “Discontinued Operations,” for additional information.

Other non-current liabilities as of December 31, 2020 and 2019 consist of the following (in thousands):

	December 31,
	2020		2019
Asset retirement obligations	$	4,401	$	4,093
Deferred tax liabilities		2,108		2,340
Other		4,072		1,098
Total other non-current liabilities	$	10,581	$	7,531

Changes in our non-current asset retirement obligations for the years ended December 31, 2020 and 2019 consist of the following (in thousands):

	Asset
	Retirement
	Obligation
Balance – January 1, 2019	$	3,795
Liabilities incurred		—
Liabilities settled	(91		)
Accretion expense	379
Foreign exchange rate adjustments	10
Balance – December 31, 2019		4,093
Liabilities incurred		—
Liabilities settled	(115		)
Accretion expense	416
Foreign exchange rate adjustments	7
Balance – December 31, 2020	$	4,401

Composition of Certain Reserves and Allowances

12 Months Ended

Dec. 31, 2020

Allowance For Credit Loss [Abstract]

Composition of Certain Reserves and Allowances


7.	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 to our current and non-current contract asset balances. However, due to the inherent additional risk associated with a long-term receivable, an additional provision for credit loss is applied to contract asset balances that will diminish over time as the contract nears its expiration date. For the year ended December 31, 2020, we also considered the current and estimated future economic and market conditions resulting from the COVID-19 pandemic in the determination of our estimated credit losses.

Estimates are used to determine the expected loss allowances. Such allowances are based on management’s assessment of anticipated payment, taking into account available historical and current information as well as management’s assessment of potential future developments. We are continuously monitoring our assumptions used to determine our expected credit losses, including the impact of COVID-19, which could cause us to record additional material credit losses in future periods.

A summary of our allowances for credit losses were as follows (in thousands):


		For the year ended
		December 31, 2020
					Other
		Accounts			non-current
		Receivable			assets
Balance at January 1, 2020	$	660		$	-
Cumulative-effect adjustment of ASC 326 adoption		404			75
Current-period provision for expected credit losses		771			300
Write-offs charged against the allowances		(727	)		-
Other		(64	)		-
Balance at December 31, 2020	$	1,044		$	375

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

Changes in our warranty reserve for the years ended December 31, 2020 and 2019 consist of the following (in thousands):


		Warranty
		Reserve

Balance – January 1, 2019	$	1,800
Accruals for warranties issued		791
Settlements of warranties		(91	)
Balance – December 31, 2019		2,500
Accruals for warranties issued		(7	)
Settlements and adjustments to warranties		(93	)
Balance – December 31, 2020	$	2,400

Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets

8.	Intangible Assets

Our intangible assets are comprised of indefinite- and finite-lived intangible assets and goodwill. We own the rights to 3MHz of ATG spectrum in the nationwide 800 MHz Commercial Air-Ground Radiotelephone band (the “3 MHz FCC License”), which is used in the operation of our ATG network, and the license for 1 MHz of ATG spectrum in the nationwide 800MHz Commercial Air-Ground Radiotelephone band (the “1 MHz FCC License”) acquired as part of our acquisition of LiveTV Airfone, LLC. Together we refer to the 3 MHz FCC License and the 1 MHz FCC License as the “FCC Licenses.” The FCC Licenses were originally issued with 10-year terms and we have renewed both licenses for subsequent 10-year terms. Such licenses are subject to further renewal by the FCC, and renewals of licenses held by others have occurred routinely and at nominal cost. Moreover, we have determined that there are currently no legal, regulatory, contractual, competitive, economic, or other factors that limit the useful life of the FCC Licenses. As a result, the FCC Licenses are treated as indefinite-lived intangible assets which we do not amortize. We reevaluate the useful life of the FCC Licenses each year to determine whether events and circumstances continue to support an indefinite useful life. Our annual impairment assessment of the FCC Licenses for 2020, 2019 and 2018 indicated no impairment.

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

Our goodwill balance was $0.6 million as of December 31, 2020 and 2019.

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

	Weighted
	Average		As of December 31, 2020							As of December 31, 2019
	Remaining		Gross					Net		Gross					Net
	Useful Life		Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
	(in years)		Amount		Amortization			Amount		Amount		Amortization			Amount
Amortized intangible assets:
Software		2.4	$	50,029	$	(31,739	)	$	18,290	$	42,591	$	(25,191	)	$	17,400
Other intangible assets		9.0		1,500		-			1,500		1,500		-			1,500
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				66,334		(46,544	)		19,790		58,896		(39,996	)		18,900
Unamortized intangible assets:
FCC Licenses				32,283		-			32,283		32,283		-			32,283
Total intangible assets			$	98,617	$	(46,544	)	$	52,073	$	91,179	$	(39,996	)	$	51,183

Amortization expense for the years ended December 31, 2020, 2019 and 2018 was $6.3 million, $6.1 million and $4.5 million, respectively.

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

	Amortization
Years ending December 31,	Expense
2021	$	7,553
2022	$	4,795
2023	$	2,287
2024	$	976
2025	$	976
Thereafter	$	3,203

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

Long-Term Debt and Other Liabilities

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Long-Term Debt and Other Liabilities


9.	Long-Term Debt and Other Liabilities

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

	December 31,			December 31,
	2020			2019

2024 Senior Secured Notes	$	973,539		$	921,137
2022 Convertible Notes		215,122			201,868
2020 Convertible Notes		-			2,498
Total debt		1,188,661			1,125,503
Less deferred financing costs		(19,693)		(24,255)
Less current portion of long-term debt		(341,000	)		—
Total long-term debt	$	827,968		$	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 (the “Third Supplemental Indenture”) to add the Additional Guarantors as guarantors under the 2024 Indenture. On November 9, 2020, the Company, the Issuers, the 2024 Guarantors and the Trustee entered into a fourth supplemental indenture (together with the Base Indenture, the First Supplemental Indenture, the Second Supplemental Indenture and the Third Supplemental Indenture, the “2024 Indenture”) to increase the amount of indebtedness under the Credit Facilities (as defined in the Base Indenture) that may be incurred by the Issuers or the Subsidiary Guarantors (as defined in the Base Indenture) by $50 million in aggregate principal amount.

On May 7, 2019, the Issuers issued an additional $20 million aggregate principal amount of 9.875% senior secured notes due 2024 (the “2019 Additional Notes”). On November 13, 2020, the Issuers issued an additional $50 million aggregate principal amount of 2024 Senior Secured Notes (the “2020 Additional Notes” and, together with the Initial Notes and the 2019 Additional Notes, the “2024 Senior Secured Notes”). The 2024 Senior Secured Notes were offered and sole in transactions exempt from registration under the Securities Act. The Initial Notes were issued at a price equal to 99.512% of their face value, the 2019 Additional Notes were issued at a price equal to 100.5% of their face value, resulting in aggregate gross proceeds of $920.7 million and the 2020 Additional Notes were issued at a price equal to 103.5% of their face value, resulting in aggregate gross proceeds of $51.8 million. Additionally, we received approximately $0.1 million for interest that accrued from April 25, 2019 through May 7, 2019 with respect to the 2019 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. Upon the closing of the Transaction, certain subsidiaries were released from their guarantees under the 2024 Indenture, and certain of the ABL Priority Collateral and Cash Flow Priority Collateral were released.

As of December 31, 2020 and 2019, the outstanding principal amount of the 2024 Senior Secured Notes was $975 million and $925 million, respectively, the unaccreted debt discount was $1.5 million and $3.9 million, respectively, and the net carrying amount was $973.5 million and $921.1 million, respectively.

We used a portion of the net proceeds from the issuance of the Initial Notes and the 2019 Additional 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 on November 1, 2019.

We paid approximately $22.6 million of origination fees and financing costs related to the issuance of the 2024 Senior Secured Notes, which have been accounted for as deferred financing costs. The deferred financing costs on our 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 $3.7 million and $2.3 million, respectively, for the years ended December 31, 2020 and 2019. Amortization expense is included in interest expense in the consolidated statements of operations. As of December 31, 2020 and 2019, the balance of unamortized deferred financing costs related to the 2024 Senior Secured Notes was $16.6 million and $19.7 million, respectively, and is included as a reduction to long-term debt in our consolidated balance sheet. See Note 10, “Interest Costs,” for additional information.

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

•

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

•

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

•

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

•

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

•

structurally subordinated to all of the indebtedness and other liabilities of any non-2024 Guarantors (other than the Issuers); and

•

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

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

•

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

•

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

•

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

•

effectively senior in right of payment to all existing and future subordinated indebtedness, if any, of such 2024 Guarantor; and structurally subordinated to all indebtedness and other liabilities of any non-2024 Guarantor subsidiary.

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.

The 2024 Indenture also provides that if we complete certain sales or transfers of assets, we are required to apply the Net Cash Proceeds (as defined in the Base Indenture) generated therefrom within 365 days to either permanently repay indebtedness, in accordance with the terms of the 2024 Indenture, or invest in property or non-current assets of a nature or type used in our, or a similar or related, business. If we do not so apply the Net Cash Proceeds from the Transaction by December 1, 2021, GIH will be required to make an offer to repurchase for cash an aggregate principal amount of the 2024 Senior Secured Notes equal to any Net Cash Proceeds not so applied as of such date, at a repurchase price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to (but not including) the payment date. As a result, we have classified $341 million of the 2024 Senior Secured Notes as short-term debt on the Consolidated Balance Sheet as of December 31, 2020, representing the amount of the 2024 Senior Secured Notes potentially to be repurchased with the Net Cash Proceeds.

Most of these covenants, including the covenant related to the application of Net Cash Proceeds from certain sales or transfers of assets, will cease to apply if, and for as long as, the 2024 Senior Secured Notes have investment grade ratings from both Moody’s Investment Services, Inc. and Standard & Poor’s. If we or the Issuers undergo specific types of change of control accompanied by a downgrade in the rating of the 2024 Senior Secured Notes prior to May 1, 2024, GIH is required to make an offer to repurchase for cash all of the 2024 Senior Secured Notes at a repurchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to (but not including) the payment date. The 2024 Indenture provides for events of default, which, if any of them occur, would permit or require the principal, premium, if any, and interest on all of the then outstanding 2024 Senior

Secured Notes issued under the 2024 Indenture to be due and payable immediately. As of December 31, 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 December 31, 2020, the facility was undrawn and $21.9 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 December 31, 2019, the facility was undrawn.

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

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

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

The ABL Credit Agreement contains customary representations and warranties and customary affirmative and negative covenants. The negative covenants include restrictions on, among other things: the incurrence of additional indebtedness; the incurrence of additional liens; dividends or other distributions on equity; the purchase, redemption or retirement of capital stock; the payment or redemption of certain indebtedness; loans, guarantees and other investments; entering into other agreements that create restrictions on the ability to pay dividends or make other distributions on equity, make or repay certain loans, create or incur certain liens or guarantee certain indebtedness; asset sales; sale-leaseback transactions; swap agreements; consolidations or mergers; amendment of certain material documents; certain regulatory matters; Canadian pension plans; and affiliate transactions. The negative covenants are subject to customary exceptions and also permit dividends and other distributions on equity, investments, permitted acquisitions and payments or redemptions of indebtedness upon satisfaction of the “payment conditions.” The payment conditions are deemed satisfied upon Specified Availability (as defined in the ABL Credit Agreement) on the date of the designated action and Specified Availability for the prior 30-day period exceeding agreed-upon thresholds, the absence of the occurrence and continuance of any default and, in certain cases, pro forma compliance with a fixed charge coverage ratio of no less than 1.10 to 1.00.

The ABL Credit Agreement includes a minimum fixed charge coverage ratio test of no less than 1.00 to 1.00, which is tested only when Specified Availability is less than the greater of (A) $4.5 million and (B) 15.0% of the then effective commitments under the ABL Credit Facility, and continuing until the first day immediately succeeding the last day of the calendar month which includes the thirtieth (30th) consecutive day on which Specified Availability is in excess of such threshold so long as no default has occurred and is continuing and certain other conditions are met. As of December 31, 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.

On November 30, 2020, the Issuers entered into a limited consent to the ABL Credit Agreement with the financial institutions listed on the signature pages thereof and JPMorgan Chase Bank, N.A., as administrative agent, pursuant to which the Lenders (as defined in the ABL Credit Agreement) provided consent to the consummation of the Transaction.

2022 Senior Secured Notes

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

On April 15, 2019, the Issuers elected to call for redemption in full all $690 million aggregate principal amount outstanding of the 2022 Senior Secured Notes in accordance with the terms of the Indenture. The redemption was conditioned, among other things, upon the incurrence of indebtedness in connection with the issuance of the 2024 Senior Secured Notes or from one or more other sources, in an amount satisfactory to the Issuers which condition was satisfied by the issuance of the 2024 Senior Secured Notes. On April 25, 2019, the Issuers irrevocably deposited, or caused to be irrevocably deposited, with the Trustee funds solely for the benefit of the holders of the 2022 Senior Secured Notes, cash in an amount sufficient to pay principal, premium, if any, and accrued interest on the 2022 Senior Secured Notes to, but not including, the date of redemption and all other sums payable under the Indenture. The Trustee executed and delivered an acknowledgement of satisfaction, discharge and

release, dated as of April 25, 2019, among other documents, with respect to the satisfaction and discharge of the 2022 Senior Secured Notes. On May 15, 2019, the 2022 Senior Secured Notes were fully redeemed in accordance with the terms of the Indenture, and the amount deposited with the Trustee on April 25, 2019 was paid to the holders of the 2022 Senior Secured Notes. The make-whole premium paid in connection with the redemption was $51.4 million and we wrote off the remaining unamortized deferred financing costs of $9.1 million and the remaining debt premium of $11.7 million relating to the 2022 Senior Secured Notes in connection with the redemption thereof, which together are included in the loss on extinguishment of debt in our consolidated statements of operations for the year ended December 31, 2019.

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

2022 Convertible Notes

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

The $237.8 million of proceeds received from the issuance of the 2022 Convertible Notes was initially allocated between long-term debt (the liability component) at $188.7 million and additional paid-in capital (the equity component) at $49.1 million, within the consolidated balance sheet. The fair value of the liability component was measured using rates determined for similar debt instruments without a conversion feature. The carrying amount of the equity component, representing the conversion option, was determined by deducting the fair value of the liability component from the aggregate face value of the 2022 Convertible Notes. If we or the note holders elect not to settle the debt through conversion, we must settle the 2022 Convertible Notes at face value. Therefore, the liability component will be accreted up to the face value of the 2022 Convertible Notes, which will result in additional non-cash interest expense being recognized in the consolidated statements of operations through the 2022 Convertible Notes maturity date (see Note 8, “Interest Costs,” for additional information). The effective interest rate on the 2022 Convertible Notes, including accretion of the notes to par and debt issuance cost amortization, was approximately 13.6%. The equity component will not be remeasured as long as it continues to meet the conditions for equity classification.

As of December 31, 2020 and 2019, the outstanding principal on the 2022 Convertible Notes was $237.8 million, the unaccreted debt discount was $22.7 million and $35.9 million, respectively, and the net carrying amount of the liability component was $215.1 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 $1.8 million and $1.7 million, respectively, for the years ended December 31, 2020 and 2019. Amortization expense is included in interest expense in the consolidated statements of operations. As of December 31, 2020 and 2019, the balance of unamortized

deferred financing costs related to the 2022 Convertible Notes was $2.7 million and $4.5 million, respectively, and is included as a reduction to long-term debt in our consolidated balance sheets. See Note 8, “Interest Costs,” for additional information.

The 2022 Convertible Notes had an initial conversion rate of 166.6667 common shares per $1,000 principal amount of 2022 Convertible Notes, which is equivalent to an initial conversion price of approximately $6.00 per share of our common stock. Upon conversion, we currently expect to settle in shares for the amount of the 2022 Convertible Notes then outstanding. 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 (the “Stock Price Condition”);

•

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 (the “Notes Price Condition”); or

•

upon the occurrence of specified corporate events.

The Stock Price Condition was triggered for the period from October 1, 2020 through December 31, 2020. Regardless of whether any of the foregoing circumstances occurs, a holder may convert its 2022 Convertible Notes, in multiples of $1,000 principal amount, at any time on or after January 15, 2022 until the second scheduled trading day immediately preceding May 15, 2022.

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

2020 Convertible Notes

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

On April 18, 2019, we commenced a cash tender offer (the “Tender Offer”) to purchase any and all of the outstanding 2020 Convertible Notes for an amount equal to $1,000 per $1,000 principal amount of 2020 Convertible Notes purchased, plus accrued and unpaid interest from the last interest payment date on the 2020 Convertible Notes

to, but not including, the date of payment for the 2020 Convertible Notes accepted in the Tender Offer. The Tender Offer expired on May 15, 2019, resulting in the purchase of $159.0 million of outstanding 2020 Convertible Notes. As a result of the Tender Offer, the carrying value of the 2020 Convertible Notes was adjusted by $8.5 million to face value and unamortized deferred financing costs of $0.6 million were expensed. These two items are included in the loss on extinguishment of debt in our consolidated statements of operations for the year ended December 31, 2019. During September 2019, we purchased an additional $0.5 million of outstanding 2020 Convertible Notes. The 2020 Convertible Notes matured on March 1, 2020.

The $361.9 million of proceeds received from the issuance of the 2020 Convertible Notes was initially allocated between long-term debt (the liability component) at $261.9 million and additional paid-in capital (the equity component) at $100.0 million, within the consolidated balance sheet. The fair value of the liability component was measured using rates determined for similar debt instruments without a conversion feature. The carrying amount of the equity component, representing the conversion option, was determined by deducting the fair value of the liability component from the aggregate face value of the 2020 Convertible Notes. If we or the holders of 2020 Convertible Notes elected not to settle the debt through conversion, we were required to settle the 2020 Convertible Notes at face value. Therefore, the liability component was accreted up to the face value of the 2020 Convertible Notes, which resulted in additional non-cash interest expense being recognized in the consolidated statements of operations (see Note 8, “Interest Costs,” for additional information). The effective interest rate on the 2020 Convertible Notes, including accretion of the notes to par and debt issuance cost amortization, was approximately 11.5%.

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

We incurred approximately $10.4 million of issuance costs related to the issuance of the 2020 Convertible Notes, of which $7.5 million and $2.9 million were recorded to deferred financing costs and additional paid-in capital, respectively, in proportion to the allocation of the proceeds of the 2020 Convertible Notes. The $7.5 million recorded as deferred financing costs on our consolidated balance sheet is being amortized over the term of the 2020 Convertible Notes using the effective interest method. Total amortization expense of the deferred financing costs was zero, $0.2 million and $1.4 million, respectively, for the years ended December 31, 2020, 2019 and 2018. Amortization expense is included in interest expense in the consolidated statements of operations. As of December 31, 2019, the balance of unamortized deferred financing costs related to the 2020 Convertible Notes was zero. See Note 10, “Interest Costs,” for additional information.

The 2020 Convertible Notes had an initial conversion rate of 41.9274 common shares per $1,000 principal amount of 2020 Convertible Notes, which was equivalent to an initial conversion price of approximately $23.85 per share of our common stock. We had the option to elect to deliver cash in lieu of all or a portion of such shares. The shares of common stock subject to conversion were excluded from diluted earnings per share calculations under the if-converted method as their impact is anti-dilutive.

Forward Transactions

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

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

2022 Forward Counterparty (or its affiliate) of a corresponding number of shares of our common stock in a registered offering (which may include block sales, sales on the NASDAQ Global Select Market, sales in the over-the-counter market, sales pursuant to negotiated transactions or otherwise, at market prices prevailing at the time of sale or at negotiated prices). Any such sales could potentially decrease (or reduce the size of any increase in) the market price of our common stock. The 2022 Forward Counterparty is not required to effect any such settlement in cash in lieu of delivery of shares of our common stock and, if we request that the 2022 Forward Counterparty effect any such settlement, it will be entered into in the discretion of the 2022 Forward Counterparty on such terms as may be mutually agreed upon at the time. As a result of the Forward Transactions, total shareholders’ equity within our consolidated balance sheet was reduced by approximately $140 million. Between March 5-6, 2020, approximately 5.1 million shares of common stock were delivered to us in connection with the Forward Transactions. The approximately 2.1 million shares of common stock remaining under the Amended and Restated Forward Transactions are treated as retired shares for basic and diluted EPS purposes although they remain legally outstanding.

Restricted Cash

Our restricted cash balances were $0.5 million and $7.7 million, respectively, as of December 31, 2020 and 2019. The balance as of December 31, 2020 consisted of a letter of credit issued for the benefit of the landlord of our current office location in Broomfield, CO. The balance as of December 31, 2019 primarily consisted of letters of credit for office locations in Broomfield, CO, Chicago, IL and Bensenville, IL as well as cash restricted to repay the remaining balance of the 2020 Convertible Notes which matured in March 2020.

Interest Costs

12 Months Ended

Dec. 31, 2020

Text Block [Abstract]

Interest Costs

10.	Interest Costs

The following is a summary of our interest costs for the years ended December 31, 2020, 2019 and 2018 (in thousands):


	For the Years Ended December 31,
		2020		2019			2018
Interest costs charged to expense	$	105,988	$	110,502		$	100,085
Amortization of deferred financing costs		5,892		5,260			4,280
Accretion of debt discount		13,907		15,729			21,105
Amortization of debt premium		-		(1,018	)		(2,850	)
Interest expense		125,787		130,473			122,620
Interest costs capitalized to property and equipment		-		11			32
Interest costs capitalized to software		885		608			364
Total interest costs	$	126,672	$	131,092		$	123,016

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

Common Stock and Preferred Stock

12 Months Ended

Dec. 31, 2020

Text Block [Abstract]

Common Stock and Preferred Stock


11.	Common Stock and Preferred Stock

Common Stock – We have one class of common stock outstanding as of December 31, 2020 and 2019. Our common stock is junior to our preferred stock, if and when issued. Our Third Amended and Restated Certificate of Incorporation authorizes a total of 500,000,000 shares of common stock with a par value of $0.0001 per share.

Preferred Stock – Our Third Amended and Restated Certificate of Incorporation authorizes 100,000,000 shares of new preferred stock with a par value of $0.01 per share. No shares of this new preferred stock have been issued. The preferred stock may be issued, from time to time, in one or more series as authorized by the Board of Directors, which has the authority to designate the terms of any series of preferred stock issued, including, without limitation, the number of shares to be included in such series of preferred stock, any dividend, redemption,

conversion rights or voting powers and the designations, preferences and relative participating, optional or other special rights.

Shareholder Rights Plan – On September 23, 2020, our Board of Directors adopted a Section 382 Rights Agreement (the “Rights Agreement”), between the Company and Computershare Trust Company, N.A., as rights agent, and declared a dividend of one preferred share purchase right (a “Right”) for each outstanding share of common stock of the Company, outstanding on the record date of October 2, 2020, to the stockholders of record on that date. Each Right entitles the registered holder to purchase from the Company one one-thousandth of a share of Series A Preferred Stock, par value $0.01 per share, of the Company (the “Preferred Shares”) at a price of $38.40 per one one-thousandth of a Preferred Share represented by a Right, subject to adjustment.

The purpose of the Rights Agreement is to facilitate the Company’s ability to preserve its net operating losses (“NOLs”) and certain other tax attributes in order to be able to offset potential future income taxes for federal income tax purposes. The Company’s ability to use its NOLs and other tax attributes would be substantially limited if it experiences an “ownership change,” as such term is defined in Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”). A company generally experiences an ownership change if the percentage of the value of its stock owned by certain “5-percent shareholders,” as such term is defined in Section 382 of the Code, increases by more than 50 percentage points over a rolling three-year period. The Rights Agreement is intended to reduce the likelihood of an ownership change under Section 382 of the Code by deterring any person or group from acquiring beneficial ownership of 4.9% or more of the shares of the Company’s common stock then-outstanding.

Initially, the Rights will be attached to all shares of the Company’s common stock. Until the Distribution Date (as defined below), the Rights will be transferred with and only with the common stock. As long as the Rights are attached to the common stock, the Company will issue one Right with each new share of common stock so that all such shares of common stock will have Rights attached (subject to certain limited exceptions). The Rights will separate and begin trading separately from the common stock, and Right certificates will be caused to evidence the Rights, on the earlier to occur of (i) the close of business on the tenth day following public disclosure of facts indicating that a person or group has acquired beneficial ownership of 4.9% or more of the outstanding common stock (an “Acquiring Person”) (or, in the event the Board of Directors determines to effect an exchange in accordance with Section 24 of the Rights Agreement and the Board of Directors determines that a later date is advisable, then such later date) and (ii) the close of business on the tenth business day (or such later date as may be determined by action of the Board of Directors prior to such time as any person becomes an Acquiring Person) following the commencement of a tender offer or exchange offer the consummation of which would result in the beneficial ownership by a person or group of 4.9% or more of the outstanding common stock (the earlier of such dates, the “Distribution Date”).

The Rights are not exercisable until the Distribution Date. The Rights will expire on the earliest to occur of (i) the close of business on the day following the certification of the voting results of the Company’s 2021 annual meeting of stockholders, if at such stockholder meeting or any other meeting of stockholders of the Company duly held prior to such meeting, a proposal to ratify the Rights Agreement has not been passed by the requisite vote of the Company’s stockholders, (ii) the date on which the Board of Directors determines in its sole discretion that (x) the Rights Agreement is no longer necessary for the preservation of material valuable NOLs or tax attributes or (y) the NOLs and tax attributes have been fully utilized and may no longer be carried forward and (iii) the close of business on September 23, 2023.

Fair Value of Financial Assets and Liabilities

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets and Liabilities

12.	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 December 31, 2020 consolidated balance sheet, excluding any issuance costs, are the amount that a market participant would be willing to lend at December 31, 2020 to an entity with a credit rating similar to ours and that would allow such an entity to achieve sufficient cash inflows to cover the scheduled cash outflows under the 2024 Senior Secured Notes, the 2022 Convertible Notes, and, while outstanding, the 2020 Convertible Notes. The calculated fair value of 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 December 31, 2020 and 2019 was as follows (in thousands):


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

2024 Senior Secured Notes	$	1,045,000	$	973,539	⁽²⁾	$	982,000	$	921,137	⁽²⁾
2022 Convertible Notes	$	404,000	$	215,122	⁽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 $1.5 million and $3.9 million, respectively, as of December 31, 2020 and 2019. See Note 9, “Long-Term Debt and Other Liabilities,” for further information.

(3)

Carrying value of the 2022 Convertible Notes reflects the unaccreted debt discount of $22.6 million and $35.9 million, respectively, as of December 31, 2020 and 2019. See Note 9, “Long-Term Debt and Other Liabilities,” for further information.

- Definition

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

+ References + Details

Business Segments and Major Customers

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Business Segments and Major Customers

13.	Business Segments and Major Customers

Business Segments – Prior to the closing of the Transaction, we historically reported our results of operations in three segments: Commercial Aviation-North America (“CA-NA”), Commercial Aviation-Rest of World (“CA-ROW”) and Business Aviation. We managed and reported these businesses separately, as they generally did not share the same customer base, had different products, pricing and expense structures, and measured operating

performance and allocated resources on different bases. As a result of the Transaction, we operate in a single distinct business segment, Business Aviation, for which operating performance is measured and resources are allocated on a consolidated basis, consistent with the financial information regularly reviewed by the chief operating decision maker, our CEO. Therefore, we now report one business segment, comprised of our continuing operations. Our revenue from customers domiciled outside of the United States accounted for less than 10% of our consolidated revenue for the years ended December 31, 2020, 2019 and 2018. Our assets outside of the United States as of December 31, 2020 and 2019 were immaterial.

Major Customers – With respect to continuing operations, no customer accounted for more than 10% of revenue for the years ended December 31, 2020, 2019 and 2018 or more than 5% of accounts receivable as of December 31, 2020 or 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Stock-Based Compensation

12 Months Ended

Dec. 31, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation


14.	Stock-Based Compensation

As of December 31, 2020, we maintained three stock-based incentive compensation plans: the Gogo Inc. 2016 Omnibus Incentive Plan (the “2016 Omnibus Plan”), the Gogo Inc. 2013 Omnibus Incentive Plan (the “2013 Omnibus Plan”), and The Aircell Holdings Inc. Stock Option Plan, collectively referred to as the “Stock Plans,” as well as an ESPP, as defined and discussed below. Our Stock Plans provide for the grant of both equity and cash awards, including non-qualified stock options, incentive stock options, stock appreciation rights, performance awards (shares and units), restricted stock, restricted stock units (“RSUs”), deferred share units (“DSUs”) and other stock-based awards and dividend equivalents to eligible employees, directors and consultants, as determined by the Compensation Committee.

Under the Stock Plans, 27,709,128 shares of common stock were reserved for issuance. As of December 31, 2020, 6,923,988 shares remained available for grant under our Stock Plans. The contractual life of granted options is 10 years. Except as otherwise approved by the Compensation Committee, all options that are unvested as of the date on which a recipient’s employment terminates, as well as vested options that are not exercised within a prescribed period following termination, are forfeited and become available for future grants. Options granted beginning in 2010 but prior to the Option Exchange (as defined below) include options that (a) vest in specified increments over a four-year period, (b) vest on the date of grant for certain options granted to non-employee members of our board of directors or (c) vest on the first anniversary of the date of grant for certain options granted to non-employee members of our board of directors. In June 2020, we consummated an option exchange program that was approved by our stockholders at the annual meeting held on April 29, 2020 in which previously outstanding 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 were surrendered and cancelled and we granted replacement options (the “Replacement Options”) in exchange for the tendered options. Of the 4,168,455 options we granted in 2020, 2,896,383 were Replacement Options. The Replacement Options vest in a single installment on December 31, 2022.

Beginning in 2013, we granted RSUs, some of which vest in equal annual increments over a four-year period and others in one installment on December 31, 2022. Vested RSUs will be settled, at the discretion of the Compensation Committee, in shares of our common stock or in cash equal to the value of the applicable number of shares of our common stock on the vesting date. We also granted DSUs to directors, some of which vest on the grant date and others on the first anniversary of the grant date. DSUs will be settled in shares of our common stock 90 days after the director ceases to serve as a director. Beginning in 2014, we granted restricted stock, which vests in equal annual increments over a four-year period. These shares are deemed issued as of the date of grant, but not outstanding until they vest. We intend to settle RSU, DSU and restricted stock awards in stock and we have the shares available to do so.

In 2016, 2017, 2018 and 2019, the Compensation Committee approved grants of both non-market-based awards that time vested as described above, and market-based awards. The market-based awards vested based on achieving one or more predetermined market conditions and completion of the same time-based vesting requirements applicable to the non-market-based awards. In 2020, the market-based awards granted in 2016 expired without the market-based condition having been achieved and the Compensation Committee approved removing the market-based vesting conditions in the awards granted in 2017, 2018 and 2019. As of December 31, 2020, there are no awards that contain market-based conditions.

In August 2020, we communicated to employees that the 2020 annual bonus, which historically has been paid in cash, was expected to be paid in shares of Gogo common stock, with the bonus payment amount to be determined based upon our performance against established goals. As a result, stock-based compensation expense corresponding to the value of the shares of Gogo common stock expected to be distributed was to be recorded through the expected grant date in March 2021, and a pro rata amount was recognized through September 30, 2020. The Compensation Committee reserved the discretion to change the method of payment of this bonus from stock to cash, which it did in the fourth quarter of 2020 following the closing of the Transaction. As a result, the stock-based compensation expense related to this bonus plan was reversed and the amount of the expected cash bonus payout was recorded as a charge to expense in the fourth quarter of 2020.The following is a summary of our stock-based compensation expense included in the consolidated statements of operations, excluding the stock-based compensation expense for discontinued operations, for the years December 31, 2020, 2019 and 2018 (in thousands):

	2020		2019		2018
Cost of service revenue	$	119	$	118	$	-
Cost of equipment revenue		235		275		210
Engineering, design and development		560		601		721
Sales and marketing		880		1,233		1,754
General and administrative		6,014		6,427		5,851
Total stock-based compensation expense	$	7,808	$	8,654	$	8,536

A summary of stock option activity (which includes amounts for both continuing and discontinued operations) for the year ended December 31, 2020 is as follows:

	Number of Options			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value (in thousands)
Options outstanding – January 1, 2020		11,074,504		$	11.70	5.25	$	–
Granted		1,272,072		$	2.54
Issued in option exchange		2,896,383		$	2.61
Exercised		(87,104	)	$	3.00
Forfeited		(6,779,837	)	$	12.12
Expired		(2,929,350	)	$	12.00
Options outstanding – December 31, 2020		5,446,668		$	4.19	7.33	$	32,458
Options exercisable – December 31, 2020		1,876,337		$	7.01	5.59	$	7,739

As of December 31, 2020, total unrecognized compensation costs related to unvested stock options were approximately $5 million which is expected to be recognized over a weighted average period of approximately 1.8 years. The total grant date fair value of stock options vested in 2020, 2019 and 2018 was approximately $16 million, $8 million and $9 million, respectively.

We estimate the fair value of stock options using the Black-Scholes option-pricing model. Weighted average assumptions used and weighted average grant date fair value of stock options granted for the years ended December 31, 2020, 2019, and 2018 were as follows:

	2020			2019			2018
Approximate risk-free interest rate		0.5	%		2.3	%		2.7	%
Average expected life (years)		6.20		6.02			6.03
Dividend yield	N/A			N/A			N/A
Volatility		66.8	%		60.5	%		49.2	%
Weighted average grant date fair value of common stock underlying options granted	$	2.59		$	4.71		$	8.97
Weighted average grant date fair value of stock options granted	$	1.56		$	2.69		$	4.42

The risk-free interest rate assumptions were based on the U.S. Treasury yield curve for the term that mirrored the expected term in effect at the time of grant. The expected life of our stock options was determined based upon a simplified assumption that the stock options will be exercised evenly from vesting to expiration, as we do not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected life. The dividend yield was based on expected dividends at the time of grant. Beginning in 2020, we calculated volatility based exclusively on our own common stock.

The following table summarizes the activities for our unvested RSUs and DSUs (which includes amounts for both continuing and discontinued operations) for the year ended December 31, 2020:

	Number of Underlying Shares			Weighted Average Grant Date Fair Value
Unvested – January 1, 2020		4,183,232		$	5.18
Granted		3,050,865		$	2.24
Vested		(3,160,611	)	$	4.09
Forfeited/canceled		(625,317	)	$	3.89
Unvested – December 31, 2020		3,448,169		$	3.80

As of December 31, 2020, there was approximately $5 million of unrecognized compensation cost related to unvested employee RSUs. This amount is expected to be recognized over a weighted-average period of approximately 1.6 years. The total grant date fair value of RSUs and DSUs vested in 2020 was approximately $14 million.

The following table summarizes the activity for our restricted stock (which includes amounts for both continuing and discontinued operations) for the year ended December 31, 2020:

	Number of Underlying Shares			Weighted Average Grant Date Fair Value
Unvested – January 1, 2020		44,204		$	11.63
Granted	–			$	–
Vested		(25,977	)	$	11.19
Forfeited/canceled	–			$	–
Unvested – December 31, 2020		18,227		$	12.26

As of December 31, 2020, there was less than $0.1 million of unrecognized compensation cost related to unvested employee restricted stock. This amount is expected to be recognized over a weighted-average period of approximately 0.3 years.

ESPP - In June 2013, the Board of Directors and stockholders approved the Employee Stock Purchase Plan (“ESPP”), which became effective on June 26, 2013, and in 2017 and 2020, the ESPP was amended to increase the number of shares reserved thereunder. The ESPP allows eligible employees to purchase a limited number of shares of common stock during pre-specified offering periods at a discount established by the Compensation Committee which may not exceed 15% of the fair market value of the common stock at the beginning or end of the offering period (whichever is lower). Under the ESPP, 2,200,000 shares were reserved for issuance and 363,209 shares of common stock were issued during the year ended December 31, 2020. As of December 31, 2020, 815,140 shares remained available for purchase under the ESPP.

Employee Retirement and Postretirement Benefits

12 Months Ended

Dec. 31, 2020

Text Block [Abstract]

Employee Retirement and Postretirement Benefits

401(k) Plan - Under our 401(k) plan, all employees who are eligible to participate are entitled to make tax-deferred contributions, subject to Internal Revenue Service limitations. We match 100% of the employee’s first 4% of contributions made, subject to annual limitations. Our matching contributions were $1.5 million, $1.3 million, and $1.1 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Income Tax

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Tax

For financial reporting purposes, the loss from continuing operations before income taxes included the following components for the years ended December 31, 2020, 2019, and 2018 (in thousands):

	For the Years Ended December 31,
	2020			2019			2018
United States	$	(45,840	)	$	(85,806	)	$	(54,655	)
Foreign		(2,865	)		(2,128	)		(1,159	)
Loss before income taxes	$	(48,705	)	$	(87,934	)	$	(55,814	)

Significant components of the (benefit) provision for income taxes for continuing operations for the years ended December 31, 2020, 2019, and 2018 are as follows (in thousands):

	For the Years Ended December 31,
	2020			2019		2018
Current:
Federal	$	-		$	-	$	-
State		86			385		467
Foreign		-			-		-
		86			385		467
Deferred:
Federal		(318	)		91		(3,908	)
State		86			87		87
		(232	)		178		(3,821	)
Total	$	(146	)	$	563	$	(3,354	)

The (benefit) provision for income taxes for continuing operations differs from income taxes computed at the federal statutory tax rates for the years ended December 31, 2020, 2019, and 2018 as a result of the following items:

	For the Years Ended December 31,
	2020			2019			2018
Federal statutory rate		21.0	%		21.0	%		21.0	%
Effect of:
Impact of change in tax rate		-			(0.1	)		0.3
Change in valuation allowance	(48.9		)	(25.1		)		(28.9	)
State income taxes-net of federal tax benefit		14.0			6.9			11.9
Other		14.2			(3.1	)		1.7
Effective tax rate		0.3	%		(0.6	)%		6.0	%

Components of the net deferred income tax asset as of December 31, 2020 and 2019 are as follows (in thousands):

	December 31,			December 31,
	2020			2019
Deferred income tax assets:
Compensation accruals	$	7,618		$	5,847
Stock options		23,263			18,192
Inventory		1,784			1,266
Warranty reserves		599			913
Capital loss		17,712			-
Deferred rent		-			-
Deferred revenue		315			43,256
Federal net operating loss (NOL)		154,180			130,878
State NOL		25,896			24,744
Interest carryforward		66,379			48,980
UNICAP adjustment		1,733			2,539
Finite-lived intangible assets		4,748			6,394
Lease liability		11,539			22,355
Other		7,671			9,243
Total deferred income tax assets		323,437			314,607
Deferred income tax liabilities:
Fixed assets		(8,673	)		(59,584	)
Indefinite-lived intangible assets		(7,619	)		(7,074	)
Convertible Notes discount		(5,512	)		(8,706	)
Right-of-use asset		(8,435	)		(13,553	)
Other		(1,924	)		(3,768	)
Total deferred income tax liabilities		(32,163	)		(92,685	)
Total deferred income tax		291,274			221,922
Valuation allowance		(293,382	)		(224,262	)
Net deferred income tax liability	$	(2,108	)	$	(2,340	)

We assess the realizability of the deferred tax assets by considering whether it is more likely than not that some portion or all of the deferred tax assets would not be realized through the generation of future taxable income. We generated net losses in fiscal years 2020, 2019, and 2018, which means we are in a domestic three-year cumulative loss position. As a result of this and other assessments in fiscal year 2020, we concluded that a full valuation allowance is required for all deferred tax assets and liabilities except for deferred tax liabilities associated with indefinite-lived intangible assets.

As of December 31, 2020, the federal net operating loss (“NOL”) carryforward amount was approximately $647 million and the state NOL carryforward amount was approximately $452 million. The federal NOLs begin to expire in 2031. The state NOLs expire in various tax years and began to expire in 2016.

Utilization of our NOL, interest carryforward and tax credit carryforwards may be subject to substantial annual limitations due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such annual limitations could result in the expiration of the NOL and tax credit carryforwards before their utilization. The interest carryforward arises from U.S. Tax Reform and generally limits the interest expense deduction to 30% of EBITDA for tax years 2018 to 2021 and 30% of EBIT for 2022 and subsequent years. The interest carryforward will not expire as it may be carried forward indefinitely. The events that may cause ownership changes include, but are not limited to, a cumulative stock ownership change of greater than 50% over a three-year period.

We are subject to taxation in the United States and Canada. With few exceptions, as of December 31, 2020, we are no longer subject to U.S. federal, state, local or foreign examinations by tax authorities for years before 2017.

As of December 31, 2020, 2019 and 2018, we did not have any unrecognized tax benefits.

We record penalties and interest relating to uncertain tax positions in the income tax provision line item in the consolidated statement of operations. No penalties or interest related to uncertain tax positions were recorded for the years ended December 31, 2020, 2019 or 2018. As of December 31, 2020 and 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

Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases


17.	Leases

The following is a summary of our lease expense included in the consolidated statement of operations (in thousands):

	For the Year Ended		For the Year Ended
	December 31, 2020		December 31, 2019
Operating lease cost	$	11,688	$	11,676
Finance lease cost:
Amortization of leased assets	230		665
Interest on lease liabilities	113		56
Total lease cost	$	12,031	$	12,397

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

	For the Year Ended			For the Year Ended
	December 31, 2020			December 31, 2019
Supplemental cash flow information
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows used in operating leases	$	12,733		$	13,059
Operating cash flows used in finance leases	$	113		$	56
Financing cash flows used in finance leases	$	546		$	-
Non-cash items:
Operating leases obtained	$	5,342		$	4,197
Finance leases obtained	$	428		$	1,268
Weighted average remaining lease term
Operating leases	7 years			8 years
Finance leases	2 years			3 years
Weighted average discount rate
Operating leases		11.2	%		10.3	%
Finance leases		10.5	%		8.3	%

Annual future minimum lease payments as of December 31, 2020 (in thousands):

Years ending December 31,		Operating Leases				Financing Leases
2021	$		12,521		$	925
2022			11,800			846
2023			7,904			262
2024			6,078				-
2025			4,685				-
Thereafter			25,157				-
Total future minimum lease payments			68,145				2,033
Less: Amount representing interest		(22,038		)		(144		)
Present value of net minimum lease payments	$		46,107		$		1,889
Reported as of December 31, 2020
Accrued liabilities	$		8,089		$	719
Non-current operating lease liabilities			38,018				-
Other non-current liabilities			-				1,170
Total lease liabilities	$		46,107		$		1,889

As of December 31, 2020, there were no significant leases which had not yet commenced.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2020

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies


18.	Commitments and Contingencies

Contractual Commitments - 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.

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 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 Gogo Inc., Gogo LLC, our former subsidiary and the entity that operated our CA business (“Gogo LLC”), and eight CA airline partners in the U.S. District Court for the Central District of California alleging that CA’s redirection server and login portal infringe a patent owned by the plaintiff. The suits seek an unspecified amount of damages. Intelsat is required under its contracts with these airlines, which it assumed in the Transaction, to indemnify them for defense costs and any liabilities resulting from the suit. The Court has stayed the suits against the 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, Gogo Inc. and Gogo LLC, 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. Since the stay was lifted, discovery has been completed and motion practice continues. No date has been set for trial. We believe that the plaintiff’s claims are without merit and intend to continue 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, its current Chief Financial Officer and its then-current 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 the reliability of and installation and remediation costs associated with CA’s 2Ku antenna. The plaintiffs seek to recover from us and the individual defendants an unspecified amount of damages. In December 2018 the plaintiffs filed an amended complaint and in February 2019, we filed a motion to dismiss such amended complaint. In October 2019 the judge granted the motion to dismiss on two independent grounds, finding that plaintiffs failed to plausibly allege that defendants made materially false or misleading statements and that plaintiffs failed to plead with particularity that defendants acted with scienter. The amended complaint was dismissed without prejudice, and in December 2019, defendants filed a second amended complaint. In July 2020, plaintiffs filed a motion requesting leave to file a proposed third amendment complaint, which was granted by the Court. Plaintiffs proceeded to file the third amended complaint in July 2020 and we filed a motion to dismiss in September 2020. That motion has been fully briefed and we await the Court’s ruling. We believe that the claims are without merit and intend to continue to defend them vigorously. In accordance with Delaware law, we will indemnify the individual named defendants for their defense costs and any damages they incur in connection with the suit. We have filed a claim with the issuer of our Directors’ and Officers’ insurance policy with respect to this suit. No amounts have been accrued for any potential losses under this matter, as we cannot reasonably predict the outcome of the litigation or any potential losses.

Derivative Litigation - On September 25, 2018 and September 26, 2018, two purported stockholders of the Company filed substantively identical derivative lawsuits in the United States District Court for the Northern District of Illinois, Eastern Division, styled Nanduri v. Gogo Inc. and Hutsenpiller v. Gogo Inc., respectively. Both lawsuits were purportedly brought derivatively on behalf of us and name us as a nominal defendant and name as

defendants each member of the Company’s Board of Directors, its former Chief Executive Officer and Chief Financial Officer and its current Chief Executive Officer, Chief Financial Officer and President, Commercial Aviation. The complaints assert claims under Section 14(a) of the Securities Exchange Act of 1934, breach of fiduciary duty, unjust enrichment, and waste of corporate assets, and allege misrepresentations or omissions by us purporting to relate to the 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.

From time to time we may become involved in legal proceedings arising in the ordinary course of our business. We cannot predict with certainty the outcome of any litigation or the potential for future litigation. Regardless of the outcome of any particular litigation and the merits of any particular claim, litigation can have a material adverse impact on our company due to, among other reasons, any injunctive relief granted, which could inhibit our ability to operate our business, amounts paid as damages or in settlement of any such matter, diversion of management resources and defense costs.

Quarterly Data (Unaudited)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

Quarterly Data (Unaudited)


19.	Quarterly Data (Unaudited)

Summarized quarterly financial information is as follows for each quarterly period for the years ended December 31, 2020 and 2019 (in thousands, except per share amounts):


		For the Three Months Ended
		Mar 31, 2020			June 30, 2020			Sep 30, 2020			Dec 31, 2020

Total revenue	$	70,927		$	54,632		$	66,525		$	77,634
Operating income		21,317			17,118			22,220			15,696
Net loss from continuing operations		(9,388	)		(14,201	)		(8,890	)		(16,080	)
Net income (loss) from discontinued operations		(75,390	)		(71,778	)		(71,234	)		16,925
Net income (loss)		(84,778	)		(85,979	)		(80,124	)		845
Net income (loss) attributable to common stock		(84,778	)		(85,979	)		(80,124	)		845

Net income (loss) attributable to common stock per share – basic and diluted:
Net loss from continuing operations	$	(0.12	)	$	(0.18	)	$	(0.11	)	$	(0.19	)
Net income (loss) from discontinued operations		(0.93	)		(0.89	)		(0.86	)		0.20
Net income (loss)	$	(1.05	)	$	(1.07	)	$	(0.97	)	$	0.01

Weighted average number of shares – basic and diluted		81,205			81,757			82,707			83,377


		For the Three Months Ended
		Mar 31, 2019			June 30, 2019			Sep 30, 2019			Dec 31, 2019

Total revenue	$	70,549		$	71,241		$	81,340		$	85,855
Operating income		23,167			16,872			27,053			29,440
Net loss from continuing operations		(8,399	)		(76,242	)		(2,854	)		(1,002	)
Net loss from discontinued operations		(8,400	)		(7,721	)		(20,037	)		(21,349	)
Net loss		(16,799	)		(83,963	)		(22,891	)		(22,351	)
Net loss attributable to common stock		(16,799	)		(83,963	)		(22,891	)		(22,351	)

Net loss attributable to common stock per share – basic and diluted:
Net loss from continuing operations	$	(0.10	)	$	(0.93	)	$	(0.04	)	$	(0.01	)
Net loss from discontinued operations		(0.10	)		(0.09	)		(0.25	)		(0.26	)
Net loss	$	(0.20	)	$	(1.02	)	$	(0.29	)	$	(0.27	)

Weighted average number of shares – basic and diluted		80,446			80,702			80,908			80,997

Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Condensed Financial Information of Registrant

20.	Condensed Financial Information of Registrant

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

Gogo Inc.

Condensed Balance Sheets

(in thousands)

	December 31,			December 31,
	2020			2019
Assets:
Cash and cash equivalents	$	55,065		$	118,323
Short-term investments	-			-
Prepaid expenses and other current assets		25		164
Other non-current assets	-				2,599
Total assets	$	55,090		$	121,086

Liabilities and stockholders’ deficit:
Total current liabilities	$	1,947		$	2,200
Long-term debt		212,387			199,849
Other non-current liabilities		2,108			2,340
Investments and payables with subsidiaries		479,762			315,587
Total liabilities		696,204			519,976
Total stockholders’ deficit		(641,114	)		(398,890	)
Total liabilities and stockholders’ deficit	$	55,090		$	121,086

Gogo Inc.

Condensed Statements of Operations and Comprehensive Loss

(in thousands)

	For the Years Ended December 31,
	2020			2019			2018
Interest income	$	(451	)	$	(3,083	)	$	(3,123	)
Interest expense		29,318			33,807			36,984
Loss on extinguishment of debt	-				9,163			19,653
Other		4			3		-
Total other (income) expense		28,871			39,890			53,514
Income (loss) before income taxes		(28,871	)		(39,890	)		(53,514	)
Income tax provision (benefit)		(146	)		563			(3,354	)
Equity losses of subsidiaries		221,311			105,551			111,871
Net loss	$	(250,036	)	$	(146,004	)	$	(162,031	)
Comprehensive loss	$	(250,036	)	$	(146,004	)	$	(162,031	)

Gogo Inc.

Condensed Statements of Cash Flows

(in thousands)

	For the Years Ended December 31,
	2020			2019			2018
Net loss	$	(250,036	)	$	(146,004	)	$	(162,031	)
Accretion of debt discount		13,255			15,276			21,105
Amortization of deferred financing costs		1,781			1,906			1,648
Loss on extinguishment of debt	-				9,163			19,653
Subsidiary equity losses		221,311			105,551			111,871
Deferred income taxes		(232	)		178			(3,821	)
Other operating activities		(114	)		(1,224	)		(674	)
Net cash used in operating activities		(14,035	)		(15,154	)		(12,249	)
Acquisition of short-term investments	-			-				(39,323	)
Redemption of short-term investments	-				39,323			192,893
Investments and advances with subsidiaries		(45,097	)		94,716			(19,595	)
Net cash provided by (used in) investing activities		(45,097	)		134,039			133,975
Financing activities:
Proceeds from issuance of convertible notes	-			-				237,750
Repurchase of convertible notes		(2,498	)		(159,502	)		(200,438	)
Payment of debt issuance costs	-			-				(8,054	)
Other financing activities		(4,227	)		325			396
Net cash provided by (used in) financing activities		(6,725	)		(159,177	)		29,654
Increase (decrease) in cash, cash equivalents and restricted cash		(65,857	)		(40,292	)		151,380
Cash, cash equivalents and restricted cash at beginning of period		120,922			161,214			9,834
Cash, cash equivalents and restricted cash at end of period	$	55,065		$	120,922		$	161,214
Cash, cash equivalents and restricted cash at end of period	$	55,065		$	120,922		$	161,214
Less: current restricted cash	-			-			-
Less: non-current restricted cash	-				2,599			101
Cash and cash equivalents at end of period	$	55,065		$	118,323		$	161,113

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Principles of Consolidation

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

Use of Estimates

Significant Risks and Uncertainties

Cash, Cash Equivalents and Short-Term Investments

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

Certain cash amounts are restricted as to use and are classified outside of cash and cash equivalents. See Note 9, “Long-Term Debt and Other Liabilities,” for further details.

Concentrations of Credit Risk

Income Tax

We also consider the existence of any uncertain tax positions and, as necessary, provide a reserve for any uncertain tax positions at each reporting date.

See Note 16, “Income Tax,” for further details.

Inventories

See Note 6, “Composition of Certain Balance Sheet Accounts,” for further details.

Property and Equipment and Depreciation

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

See Note 6, “Composition of Certain Balance Sheet Accounts,” for further details.

Software Development Costs

Intangible Assets

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

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

See Note 8, “Intangible Assets,” for further details.

Long-Lived Assets

Revenue Recognition

Revenue Recognition - Our revenue is primarily earned from providing connectivity and entertainment services and through sales of equipment.

•

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

•

Identification of the performance obligations in the contract;

•

Determination of the transaction price;

•

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

•

Recognition of revenue as we satisfy the performance obligations.

See Note 5, “Revenue Recognition,” for further information.

Research and Development Costs

Warranty

See Note 6, “Composition of Certain Balance Sheet Accounts,” for the details of the changes in our warranty reserve.

Asset Retirement Obligations

See Note 6, “Composition of Certain Balance Sheet Accounts,” for the details of the changes in our asset retirement obligations.

Fair Value of Financial Instruments

See Note 12, “Fair Value of Financial Assets and Liabilities,” for further information.

Derivatives

See Note 9, “Long-Term Debt and Other Liabilities,” Note 11, “Common Stock and Preferred Stock,” and Note 12, “Fair Value of Financial Assets and Liabilities,” for further information.

Convertible Notes

See Note 9, “Long-Term Debt and Other Liabilities,” for further information.

Net Loss Per Share

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

See Note 4, “Net Loss Per Share,” for further information.

Stock-Based Compensation Expense

See Note 14, “Stock-Based Compensation,” for further information.

Leases

See Note 17, “Leases,” for further information.

Advertising Costs

Advertising Costs - Costs for advertising are expensed as incurred.

Debt Issuance Costs

See Note 9, “Long-Term Debt and Other Liabilities” for further information.

Comprehensive Loss

Comprehensive Loss - Comprehensive loss for the years ended December 31, 2020, 2019 and 2018 is net loss plus unrealized gains and losses on foreign currency translation adjustments.

Recently Issued Accounting Pronouncements

Accounting standards adopted:

	Balance at December 31, 2019			Impact of ASC 326			Balances with Adoption of ASC 326
Assets
Accounts receivable	$	42,322		$	(404	)	$	41,918
Other non-current assets	$	12,121		$	(75	)	$	12,046
Equity
Accumulated deficit ⁽¹⁾	$	(1,376,142	)	$	(3,665	)	$	(1,379,807	)

(1)

See Note 7, “Composition of Certain Reserves and Allowances,” for additional information.

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

See Note 17, “Leases,” for additional information.

All other new pronouncements:

Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2020

Summarizes the results of discontinued operations

The following table summarizes the results of discontinued operations which are presented as Net loss from discontinued operations in our consolidated statements of operations (in thousands):

	For the Years Ended December 31,
	2020			2019			2018
Revenue:
Service revenue	$	192,616		$	442,431		$	433,770
Equipment revenue		40,483			84,310			169,841
Total revenue		233,099			526,741			603,611
Operating expenses:
Cost of service revenue (exclusive of items shown below)		145,958			255,706			254,503
Cost of equipment revenue (exclusive of items shown below)		33,978			82,984			166,828
Engineering, design and development		57,167			82,597			101,571
Sales and marketing		24,121			27,920			34,427
General and administrative		40,551			35,215			36,366
Impairment of long-lived assets		47,375		-			-
Depreciation and amortization		119,827			102,127			119,254
Total operating expenses		468,977			586,549			712,949
Operating loss	(235,878		)	(59,808		)	(109,338		)
Other (income) expense:
Gain on sale of CA business	(37,958		)	-			-
Other (income) expense		3,134		(2,744		)	172
Total other (income) expense:	(34,824		)	(2,744		)	172
Loss before income taxes	(201,054		)	(57,064		)	(109,510		)
Income tax provision	423			443			61
Net loss from discontinued operations, net of tax	$	(201,477	)	$	(57,507	)	$	(109,571	)

Summary of Stock-Based Compensation Expense by Operating Expense

The following is a summary of our stock-based compensation expense included in the consolidated statements of operations, excluding the stock-based compensation expense for discontinued operations, for the years December 31, 2020, 2019 and 2018 (in thousands):

	2020		2019		2018
Cost of service revenue	$	119	$	118	$	-
Cost of equipment revenue		235		275		210
Engineering, design and development		560		601		721
Sales and marketing		880		1,233		1,754
General and administrative		6,014		6,427		5,851
Total stock-based compensation expense	$	7,808	$	8,654	$	8,536

Discontinued Operations

Summary of Stock-Based Compensation Expense by Operating Expense

	2020		2019		2018
Cost of service revenue	$	7,647	$	1,497	$	1,659
Cost of equipment revenue	-		-		-
Engineering, design and development		5,836		2,398		2,626
Sales and marketing		7,911		2,144		2,513
General and administrative		4,413		1,819		1,577
Total stock-based compensation expense	$	25,807	$	7,858	$	8,375

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=109226691&loc=SL51724579-110230

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109222650&loc=d3e1474-107760

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721677-107760

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109222160&loc=SL51721533-107759

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721659-107760

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721665-107760

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109226691&loc=d3e2941-110230

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5C
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721675-107760

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=109222650&loc=d3e1361-107760

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5A
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721671-107760

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5B
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721673-107760

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721663-107760

+ Details

Summary of Significant Accounting policies (Tables)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Depreciation of Property and Equipment Estimated Useful Lives

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

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

Finite Lived Intangible Asset Useful Life

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

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

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

	Balance at December 31, 2019			Impact of ASC 326			Balances with Adoption of ASC 326
Assets
Accounts receivable	$	42,322		$	(404	)	$	41,918
Other non-current assets	$	12,121		$	(75	)	$	12,046
Equity
Accumulated deficit ⁽¹⁾	$	(1,376,142	)	$	(3,665	)	$	(1,379,807	)

(1)

Summary of Cumulative Effect of Adoption on Consolidated Balance Sheets

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

Net Loss Per Share (Tables)

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

	For the Years Ended December 31,
	2020			2019			2018
Net loss from continuing operations	$	(48,559	)	$	(88,497	)	$	(52,460	)
Net loss from discontinued operations		(201,477	)		(57,507	)		(109,571	)
Net loss		(250,036	)		(146,004	)		(162,031	)
Less: Participation rights of the Forward Transactions		—			—			—
Undistributed losses	$	(250,036	)	$	(146,004	)	$	(162,031	)
Weighted-average common shares outstanding- basic and diluted		82,266			80,766			80,038
Net loss attributable to common stock per share- basic and diluted:
Net loss from continuing operations	$	(0.59	)	$	(1.10	)	$	(0.66	)
Net loss from discontinued operations		(2.45	)		(0.71	)		(1.36	)
Net loss	$	(3.04	)	$	(1.81	)	$	(2.02	)

Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 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 Year Ended December 31,
		2020		2019		2018
Service revenue
Connectivity	$	209,160	$	219,450	$	195,022
Entertainment and other		2,827		2,472		1,355
Total service revenue	$	211,987	$	221,922	$	196,377

Equipment revenue
ATG	$	45,200	$	62,899	$	72,159
Satellite		11,746		21,755		18,165
Other		785		2,409		3,452
Total equipment revenue	$	57,731	$	87,063	$	93,776

Customer type
Aircraft owner/operator	$	211,987	$	221,922	$	196,377
OEM and aftermarket dealer		57,731		87,063		93,776
Total revenue	$	269,718	$	308,985	$	290,153

Composition of Certain Balance Sheet Accounts (Tables)

12 Months Ended

Dec. 31, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Components of Inventories

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

	December 31,
	2020		2019
Work-in-process component parts	$	15,405	$	23,141
Finished goods		12,709		12,064
Total inventory	$	28,114	$	35,205

Schedule Of Prepaid Expense And Other Current Assets

Prepaid expenses and other current assets as of December 31, 2020 and 2019 were as follows (in thousands):

	December 31,
	2020		2019
Contract assets	$	2,417	$	540
Restricted cash	525		560
Other		5,992		5,713
Total prepaid expenses and other current assets	$	8,934	$	6,813

Property and Equipment

Property and equipment as of December 31, 2020 and 2019 were as follows (in thousands):

	December 31,
	2020			2019
Office equipment, furniture, fixtures and other	$	10,986		$	10,526
Leasehold improvements		12,012			12,012
Network equipment		139,884			138,727
		162,882			161,265
Accumulated depreciation	(99,389		)	(92,082		)
Property and equipment, net	$	63,493		$	69,183

Schedule of Other Non-Current Assets

Other non-current assets as of December 31, 2020 and 2019 consist of the following (in thousands):

	December 31,
	2020		2019
Contract assets, net of allowances of $375 and $0, respectively	$	9,775	$	2,588
Restricted cash		—		7,099
Other		1,711		2,434
Total other non-current assets	$	11,486	$	12,121

Accrued Liabilities

Accrued liabilities as of December 31, 2020 and 2019 consist of the following (in thousands):

	December 31,
	2020		2019
Accrued interest	$	17,836	$	17,048
Employee compensation and benefits ⁽¹⁾		35,516		9,818
Operating leases		8,089		7,580
Deferred gain on sale of CA business ⁽²⁾		9,400		—
Warranty reserve		2,400		2,500
Taxes		2,022		5,037
Other		7,746		6,087
Total accrued liabilities	$	83,009	$	48,070

Other Non-Current Liabilities

Other non-current liabilities as of December 31, 2020 and 2019 consist of the following (in thousands):

	December 31,
	2020		2019
Asset retirement obligations	$	4,401	$	4,093
Deferred tax liabilities		2,108		2,340
Other		4,072		1,098
Total other non-current liabilities	$	10,581	$	7,531

Schedule of Changes in Non Current Asset Retirement Obligation

Changes in our non-current asset retirement obligations for the years ended December 31, 2020 and 2019 consist of the following (in thousands):

	Asset
	Retirement
	Obligation
Balance – January 1, 2019	$	3,795
Liabilities incurred		—
Liabilities settled	(91		)
Accretion expense	379
Foreign exchange rate adjustments	10
Balance – December 31, 2019		4,093
Liabilities incurred		—
Liabilities settled	(115		)
Accretion expense	416
Foreign exchange rate adjustments	7
Balance – December 31, 2020	$	4,401

Composition of Certain Reserves and Allowances (Tables)

12 Months Ended

Dec. 31, 2020

Allowance For Credit Loss [Abstract]

Summary of our allowances for credit losses

A summary of our allowances for credit losses were as follows (in thousands):


		For the year ended
		December 31, 2020
					Other
		Accounts			non-current
		Receivable			assets
Balance at January 1, 2020	$	660		$	-
Cumulative-effect adjustment of ASC 326 adoption		404			75
Current-period provision for expected credit losses		771			300
Write-offs charged against the allowances		(727	)		-
Other		(64	)		-
Balance at December 31, 2020	$	1,044		$	375

Schedule of changes in our warrant reserves

Changes in our warranty reserve for the years ended December 31, 2020 and 2019 consist of the following (in thousands):


		Warranty
		Reserve

Balance – January 1, 2019	$	1,800
Accruals for warranties issued		791
Settlements of warranties		(91	)
Balance – December 31, 2019		2,500
Accruals for warranties issued		(7	)
Settlements and adjustments to warranties		(93	)
Balance – December 31, 2020	$	2,400

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets, Other than Goodwill

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

	Weighted
	Average		As of December 31, 2020							As of December 31, 2019
	Remaining		Gross					Net		Gross					Net
	Useful Life		Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
	(in years)		Amount		Amortization			Amount		Amount		Amortization			Amount
Amortized intangible assets:
Software		2.4	$	50,029	$	(31,739	)	$	18,290	$	42,591	$	(25,191	)	$	17,400
Other intangible assets		9.0		1,500		-			1,500		1,500		-			1,500
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				66,334		(46,544	)		19,790		58,896		(39,996	)		18,900
Unamortized intangible assets:
FCC Licenses				32,283		-			32,283		32,283		-			32,283
Total intangible assets			$	98,617	$	(46,544	)	$	52,073	$	91,179	$	(39,996	)	$	51,183

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
2021	$	7,553
2022	$	4,795
2023	$	2,287
2024	$	976
2025	$	976
Thereafter	$	3,203

Long-Term Debt and Other Liabilities (Tables)

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

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

	December 31,			December 31,
	2020			2019

2024 Senior Secured Notes	$	973,539		$	921,137
2022 Convertible Notes		215,122			201,868
2020 Convertible Notes		-			2,498
Total debt		1,188,661			1,125,503
Less deferred financing costs		(19,693)		(24,255)
Less current portion of long-term debt		(341,000	)		—
Total long-term debt	$	827,968		$	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

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=119993939&loc=d3e28541-108399

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

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=119993939&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

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

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

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

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

+ Details

Interest Costs (Tables)

12 Months Ended

Dec. 31, 2020

Text Block [Abstract]

Summary of Interest Costs

The following is a summary of our interest costs for the years ended December 31, 2020, 2019 and 2018 (in thousands):


	For the Years Ended December 31,
		2020		2019			2018
Interest costs charged to expense	$	105,988	$	110,502		$	100,085
Amortization of deferred financing costs		5,892		5,260			4,280
Accretion of debt discount		13,907		15,729			21,105
Amortization of debt premium		-		(1,018	)		(2,850	)
Interest expense		125,787		130,473			122,620
Interest costs capitalized to property and equipment		-		11			32
Interest costs capitalized to software		885		608			364
Total interest costs	$	126,672	$	131,092		$	123,016

Fair Value of Financial Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

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

The fair value and carrying value of long-term debt as of December 31, 2020 and 2019 was as follows (in thousands):


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

2024 Senior Secured Notes	$	1,045,000	$	973,539	⁽²⁾	$	982,000	$	921,137	⁽²⁾
2022 Convertible Notes	$	404,000	$	215,122	⁽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)

(3)

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2020

Summary of Stock-Based Compensation Expense by Operating Expense

	2020		2019		2018
Cost of service revenue	$	119	$	118	$	-
Cost of equipment revenue		235		275		210
Engineering, design and development		560		601		721
Sales and marketing		880		1,233		1,754
General and administrative		6,014		6,427		5,851
Total stock-based compensation expense	$	7,808	$	8,654	$	8,536

Summary of Stock Options Activity

A summary of stock option activity (which includes amounts for both continuing and discontinued operations) for the year ended December 31, 2020 is as follows:

	Number of Options			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value (in thousands)
Options outstanding – January 1, 2020		11,074,504		$	11.70	5.25	$	–
Granted		1,272,072		$	2.54
Issued in option exchange		2,896,383		$	2.61
Exercised		(87,104	)	$	3.00
Forfeited		(6,779,837	)	$	12.12
Expired		(2,929,350	)	$	12.00
Options outstanding – December 31, 2020		5,446,668		$	4.19	7.33	$	32,458
Options exercisable – December 31, 2020		1,876,337		$	7.01	5.59	$	7,739

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

	2020			2019			2018
Approximate risk-free interest rate		0.5	%		2.3	%		2.7	%
Average expected life (years)		6.20		6.02			6.03
Dividend yield	N/A			N/A			N/A
Volatility		66.8	%		60.5	%		49.2	%
Weighted average grant date fair value of common stock underlying options granted	$	2.59		$	4.71		$	8.97
Weighted average grant date fair value of stock options granted	$	1.56		$	2.69		$	4.42

Restricted Stock Units And Deferred Stock Units [Member]

Summarizes the Activities for Unvested RSUs and DSUs

The following table summarizes the activities for our unvested RSUs and DSUs (which includes amounts for both continuing and discontinued operations) for the year ended December 31, 2020:

	Number of Underlying Shares			Weighted Average Grant Date Fair Value
Unvested – January 1, 2020		4,183,232		$	5.18
Granted		3,050,865		$	2.24
Vested		(3,160,611	)	$	4.09
Forfeited/canceled		(625,317	)	$	3.89
Unvested – December 31, 2020		3,448,169		$	3.80

Restricted Stock [Member]

Summarizes the Activities for Unvested RSUs and DSUs

The following table summarizes the activity for our restricted stock (which includes amounts for both continuing and discontinued operations) for the year ended December 31, 2020:

	Number of Underlying Shares			Weighted Average Grant Date Fair Value
Unvested – January 1, 2020		44,204		$	11.63
Granted	–			$	–
Vested		(25,977	)	$	11.19
Forfeited/canceled	–			$	–
Unvested – December 31, 2020		18,227		$	12.26

Income Tax (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Loss Before Income Taxes

For financial reporting purposes, the loss from continuing operations before income taxes included the following components for the years ended December 31, 2020, 2019, and 2018 (in thousands):

	For the Years Ended December 31,
	2020			2019			2018
United States	$	(45,840	)	$	(85,806	)	$	(54,655	)
Foreign		(2,865	)		(2,128	)		(1,159	)
Loss before income taxes	$	(48,705	)	$	(87,934	)	$	(55,814	)

Components of (Benefit) Provision for Income Taxes

Significant components of the (benefit) provision for income taxes for continuing operations for the years ended December 31, 2020, 2019, and 2018 are as follows (in thousands):

	For the Years Ended December 31,
	2020			2019		2018
Current:
Federal	$	-		$	-	$	-
State		86			385		467
Foreign		-			-		-
		86			385		467
Deferred:
Federal		(318	)		91		(3,908	)
State		86			87		87
		(232	)		178		(3,821	)
Total	$	(146	)	$	563	$	(3,354	)

Income Tax Computed at Federal Statutory Tax Rates

	For the Years Ended December 31,
	2020			2019			2018
Federal statutory rate		21.0	%		21.0	%		21.0	%
Effect of:
Impact of change in tax rate		-			(0.1	)		0.3
Change in valuation allowance	(48.9		)	(25.1		)		(28.9	)
State income taxes-net of federal tax benefit		14.0			6.9			11.9
Other		14.2			(3.1	)		1.7
Effective tax rate		0.3	%		(0.6	)%		6.0	%

Components of Deferred Income Tax Assets and Liabilities

Components of the net deferred income tax asset as of December 31, 2020 and 2019 are as follows (in thousands):

	December 31,			December 31,
	2020			2019
Deferred income tax assets:
Compensation accruals	$	7,618		$	5,847
Stock options		23,263			18,192
Inventory		1,784			1,266
Warranty reserves		599			913
Capital loss		17,712			-
Deferred rent		-			-
Deferred revenue		315			43,256
Federal net operating loss (NOL)		154,180			130,878
State NOL		25,896			24,744
Interest carryforward		66,379			48,980
UNICAP adjustment		1,733			2,539
Finite-lived intangible assets		4,748			6,394
Lease liability		11,539			22,355
Other		7,671			9,243
Total deferred income tax assets		323,437			314,607
Deferred income tax liabilities:
Fixed assets		(8,673	)		(59,584	)
Indefinite-lived intangible assets		(7,619	)		(7,074	)
Convertible Notes discount		(5,512	)		(8,706	)
Right-of-use asset		(8,435	)		(13,553	)
Other		(1,924	)		(3,768	)
Total deferred income tax liabilities		(32,163	)		(92,685	)
Total deferred income tax		291,274			221,922
Valuation allowance		(293,382	)		(224,262	)
Net deferred income tax liability	$	(2,108	)	$	(2,340	)

Leases (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Lease expense included in the condensed consolidated statements of operations

The following is a summary of our lease expense included in the consolidated statement of operations (in thousands):

	For the Year Ended		For the Year Ended
	December 31, 2020		December 31, 2019
Operating lease cost	$	11,688	$	11,676
Finance lease cost:
Amortization of leased assets	230		665
Interest on lease liabilities	113		56
Total lease cost	$	12,031	$	12,397

Schedule includes other information about leases

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

	For the Year Ended			For the Year Ended
	December 31, 2020			December 31, 2019
Supplemental cash flow information
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows used in operating leases	$	12,733		$	13,059
Operating cash flows used in finance leases	$	113		$	56
Financing cash flows used in finance leases	$	546		$	-
Non-cash items:
Operating leases obtained	$	5,342		$	4,197
Finance leases obtained	$	428		$	1,268
Weighted average remaining lease term
Operating leases	7 years			8 years
Finance leases	2 years			3 years
Weighted average discount rate
Operating leases		11.2	%		10.3	%
Finance leases		10.5	%		8.3	%

Annual future minimum lease payments

Annual future minimum lease payments as of December 31, 2020 (in thousands):

Years ending December 31,		Operating Leases				Financing Leases
2021	$		12,521		$	925
2022			11,800			846
2023			7,904			262
2024			6,078				-
2025			4,685				-
Thereafter			25,157				-
Total future minimum lease payments			68,145				2,033
Less: Amount representing interest		(22,038		)		(144		)
Present value of net minimum lease payments	$		46,107		$		1,889
Reported as of December 31, 2020
Accrued liabilities	$		8,089		$	719
Non-current operating lease liabilities			38,018				-
Other non-current liabilities			-				1,170
Total lease liabilities	$		46,107		$		1,889

Quarterly Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

Summarized Quarterly Financial Information

Summarized quarterly financial information is as follows for each quarterly period for the years ended December 31, 2020 and 2019 (in thousands, except per share amounts):


		For the Three Months Ended
		Mar 31, 2020			June 30, 2020			Sep 30, 2020			Dec 31, 2020

Total revenue	$	70,927		$	54,632		$	66,525		$	77,634
Operating income		21,317			17,118			22,220			15,696
Net loss from continuing operations		(9,388	)		(14,201	)		(8,890	)		(16,080	)
Net income (loss) from discontinued operations		(75,390	)		(71,778	)		(71,234	)		16,925
Net income (loss)		(84,778	)		(85,979	)		(80,124	)		845
Net income (loss) attributable to common stock		(84,778	)		(85,979	)		(80,124	)		845

Net income (loss) attributable to common stock per share – basic and diluted:
Net loss from continuing operations	$	(0.12	)	$	(0.18	)	$	(0.11	)	$	(0.19	)
Net income (loss) from discontinued operations		(0.93	)		(0.89	)		(0.86	)		0.20
Net income (loss)	$	(1.05	)	$	(1.07	)	$	(0.97	)	$	0.01

Weighted average number of shares – basic and diluted		81,205			81,757			82,707			83,377


		For the Three Months Ended
		Mar 31, 2019			June 30, 2019			Sep 30, 2019			Dec 31, 2019

Total revenue	$	70,549		$	71,241		$	81,340		$	85,855
Operating income		23,167			16,872			27,053			29,440
Net loss from continuing operations		(8,399	)		(76,242	)		(2,854	)		(1,002	)
Net loss from discontinued operations		(8,400	)		(7,721	)		(20,037	)		(21,349	)
Net loss		(16,799	)		(83,963	)		(22,891	)		(22,351	)
Net loss attributable to common stock		(16,799	)		(83,963	)		(22,891	)		(22,351	)

Net loss attributable to common stock per share – basic and diluted:
Net loss from continuing operations	$	(0.10	)	$	(0.93	)	$	(0.04	)	$	(0.01	)
Net loss from discontinued operations		(0.10	)		(0.09	)		(0.25	)		(0.26	)
Net loss	$	(0.20	)	$	(1.02	)	$	(0.29	)	$	(0.27	)

Weighted average number of shares – basic and diluted		80,446			80,702			80,908			80,997

Condensed Financial Information of Registrant (Tables)

12 Months Ended

Dec. 31, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Condensed Balance Sheets

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

Gogo Inc.

Condensed Balance Sheets

(in thousands)

	December 31,			December 31,
	2020			2019
Assets:
Cash and cash equivalents	$	55,065		$	118,323
Short-term investments	-			-
Prepaid expenses and other current assets		25		164
Other non-current assets	-				2,599
Total assets	$	55,090		$	121,086

Liabilities and stockholders’ deficit:
Total current liabilities	$	1,947		$	2,200
Long-term debt		212,387			199,849
Other non-current liabilities		2,108			2,340
Investments and payables with subsidiaries		479,762			315,587
Total liabilities		696,204			519,976
Total stockholders’ deficit		(641,114	)		(398,890	)
Total liabilities and stockholders’ deficit	$	55,090		$	121,086

Condensed Statements of Operations and Comprehensive Loss

Gogo Inc.

Condensed Statements of Operations and Comprehensive Loss

(in thousands)

	For the Years Ended December 31,
	2020			2019			2018
Interest income	$	(451	)	$	(3,083	)	$	(3,123	)
Interest expense		29,318			33,807			36,984
Loss on extinguishment of debt	-				9,163			19,653
Other		4			3		-
Total other (income) expense		28,871			39,890			53,514
Income (loss) before income taxes		(28,871	)		(39,890	)		(53,514	)
Income tax provision (benefit)		(146	)		563			(3,354	)
Equity losses of subsidiaries		221,311			105,551			111,871
Net loss	$	(250,036	)	$	(146,004	)	$	(162,031	)
Comprehensive loss	$	(250,036	)	$	(146,004	)	$	(162,031	)

Condensed Statements of Cash Flows

Gogo Inc.

Condensed Statements of Cash Flows

(in thousands)

	For the Years Ended December 31,
	2020			2019			2018
Net loss	$	(250,036	)	$	(146,004	)	$	(162,031	)
Accretion of debt discount		13,255			15,276			21,105
Amortization of deferred financing costs		1,781			1,906			1,648
Loss on extinguishment of debt	-				9,163			19,653
Subsidiary equity losses		221,311			105,551			111,871
Deferred income taxes		(232	)		178			(3,821	)
Other operating activities		(114	)		(1,224	)		(674	)
Net cash used in operating activities		(14,035	)		(15,154	)		(12,249	)
Acquisition of short-term investments	-			-				(39,323	)
Redemption of short-term investments	-				39,323			192,893
Investments and advances with subsidiaries		(45,097	)		94,716			(19,595	)
Net cash provided by (used in) investing activities		(45,097	)		134,039			133,975
Financing activities:
Proceeds from issuance of convertible notes	-			-				237,750
Repurchase of convertible notes		(2,498	)		(159,502	)		(200,438	)
Payment of debt issuance costs	-			-				(8,054	)
Other financing activities		(4,227	)		325			396
Net cash provided by (used in) financing activities		(6,725	)		(159,177	)		29,654
Increase (decrease) in cash, cash equivalents and restricted cash		(65,857	)		(40,292	)		151,380
Cash, cash equivalents and restricted cash at beginning of period		120,922			161,214			9,834
Cash, cash equivalents and restricted cash at end of period	$	55,065		$	120,922		$	161,214
Cash, cash equivalents and restricted cash at end of period	$	55,065		$	120,922		$	161,214
Less: current restricted cash	-			-			-
Less: non-current restricted cash	-				2,599			101
Cash and cash equivalents at end of period	$	55,065		$	118,323		$	161,113

Background - Additional Information (Detail) - USD ($) $ in Millions		12 Months Ended
	Dec. 01, 2020	Dec. 31, 2020
Accounting Policies [Abstract]
Company purchase price	$ 400
Minimum revenue guarantees		$ 5

Discontinued Operations (Net loss from discontinued operations) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenue:
Total revenue	$ 233,099	$ 526,741	$ 603,611
Operating expenses:
Engineering, design and development	57,167	82,597	101,571
Sales and marketing	24,121	27,920	34,427
General and administrative	40,551	35,215	36,366
Impairment of long-lived assets	47,375
Depreciation and amortization	119,827	102,127	119,254
Total operating expenses	468,977	586,549	712,949
Operating loss	(235,878)	(59,808)	(109,338)
Other (income) expense:
Gain on sale of CA business	(37,958)
Other (income) expense	3,134	(2,744)	172
Total other (income) expense:	(34,824)	(2,744)	172
Loss before income taxes	(201,054)	(57,064)	(109,510)
Income tax provision	423	443	61
Net loss from discontinued operations, net of tax	(201,477)	(57,507)	(109,571)
Service [Member]
Revenue:
Total revenue	192,616	442,431	433,770
Product [Member]
Revenue:
Total revenue	40,483	84,310	169,841
Cost of Service Revenue [Member]
Revenue:
Total revenue	145,958	255,706	254,503
Cost of Equipment Revenue [Member]
Revenue:
Total revenue	$ 33,978	$ 82,984	$ 166,828

Discontinued Operations - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		12 Months Ended
	Feb. 28, 2021	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Initial gross proceeds				$ 386,300
Purchase price				400,000
Accelerated depreciation				41,000
Accelerated amortization				42,000
Provisions for expected credit losses				10,700
Recovery of credit losses				600
Reduction in cost of service revenue				71,200	$ 28,600	$ 31,700
Amortization expenses				49,100
Rental expenses					25,100	24,500
Impairmrnt charges			$ 46,400	47,400	0	0
Deferred costs		$ 1,000
Impairment of long-lived assets		$ 1,000		$ 0	$ 0	$ 0
Subsequent Event [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Working capital	$ 9,400
Contingent gain	9,400
Gain (Loss) on sale of CA business	38,000
Post closing purchase price adjustments	$ 9,400

Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Total stock-based compensation expense	$ 7,808	$ 8,654	$ 8,536
Cost of Service Revenue [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Total stock-based compensation expense	119	118
Engineering, Design and Development [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Total stock-based compensation expense	560	601	721
Sales and Marketing [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Total stock-based compensation expense	880	1,233	1,754
General and Administrative [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Total stock-based compensation expense	6,014	6,427	5,851
Discontinued Operations Held for Sale [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Total stock-based compensation expense	25,807	7,858	8,375
Discontinued Operations Held for Sale [Member] \| Cost of Service Revenue [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Total stock-based compensation expense	7,647	1,497	1,659
Discontinued Operations Held for Sale [Member] \| Engineering, Design and Development [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Total stock-based compensation expense	5,836	2,398	2,626
Discontinued Operations Held for Sale [Member] \| Sales and Marketing [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Total stock-based compensation expense	7,911	2,144	2,513
Discontinued Operations Held for Sale [Member] \| General and Administrative [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Total stock-based compensation expense	$ 4,413	$ 1,819	$ 1,577

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands, shares in Millions		3 Months Ended		12 Months Ended
	Mar. 31, 2015	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Depreciation expense				$ 14,200	$ 16,700	$ 14,400
Impairment charges				0	0	0
Impairment of long-lived assets		$ 1,000		0	0	0
Research and development expense				$ 25,200	$ 26,000	$ 18,500
Forward stock repurchase transaction, shares				2.1	7.2	7.2
reclassified amount from additional paid in capital to treasury stock				$ 98,900
Cell Site [Member] \| Minimum [Member]
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Lease term				5 years
Option to renewal lease term				10 years
Cell Site [Member] \| Maximum [Member]
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Lease term				5 years
Option to renewal lease term				25 years
Building [Member] \| Minimum [Member]
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Lease term				1 year
Option to renewal lease term				10 years
Building [Member] \| Maximum [Member]
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Lease term				1 year
Option to renewal lease term				5 years
3.75% Convertible Senior Notes [Member]
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Forward stock repurchase transaction, shares	7.2
Forward stock repurchase transactions amount	$ 140,000
Forward stock repurchase transaction, settlement date	Mar. 13, 2020
2022 Convertible Notes [Member]
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Forward stock repurchase transaction, shares			5.1		2.1
Forward stock repurchase transaction, settlement date					May 15, 2022

Summary of Significant Accounting Policies - Depreciation of Property and Equipment Estimated Useful Lives (Detail)	12 Months Ended
	Dec. 31, 2020
Office Equipment, Furniture, Fixtures and Other [Member] \| Minimum [Member]
Property Plant And Equipment [Line Items]
Depreciation of property and equipment estimated useful lives	3 years
Office Equipment, Furniture, Fixtures and Other [Member] \| Maximum [Member]
Property Plant And Equipment [Line Items]
Depreciation of property and equipment estimated useful lives	7 years
Leasehold Improvements [Member] \| Minimum [Member]
Property Plant And Equipment [Line Items]
Depreciation of property and equipment estimated useful lives	3 years
Leasehold Improvements [Member] \| Maximum [Member]
Property Plant And Equipment [Line Items]
Depreciation of property and equipment estimated useful lives	13 years
Network Equipment [Member] \| Minimum [Member]
Property Plant And Equipment [Line Items]
Depreciation of property and equipment estimated useful lives	5 years
Network Equipment [Member] \| Maximum [Member]
Property Plant And Equipment [Line Items]
Depreciation of property and equipment estimated useful lives	25 years

Summary of Significant Accounting Policies - Finite Lived Intangible Asset Useful Life (Detail)	12 Months Ended
	Dec. 31, 2020
Software [Member]
Finite Lived Intangible Assets [Line Items]
Finite lived intangible asset useful life	2 years 4 months 24 days
Software [Member] \| Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Finite lived intangible asset useful life	3 years
Software [Member] \| Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Finite lived intangible asset useful life	8 years
OEM and Dealer Relationships [Member]
Finite Lived Intangible Assets [Line Items]
Finite lived intangible asset useful life	10 years
Service Customer Relationships [Member] \| Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Finite lived intangible asset useful life	5 years
Service Customer Relationships [Member] \| Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Finite lived intangible asset useful life	7 years
Other Intangible Assets [Member]
Finite Lived Intangible Assets [Line Items]
Finite lived intangible asset useful life	9 years
Other Intangible Assets [Member] \| Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Finite lived intangible asset useful life	4 years
Other Intangible Assets [Member] \| Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Finite lived intangible asset useful life	10 years

Summary of Significant Accounting Policies - Summary of Adoption Impact of ASC 326 on Unaudited Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Jan. 01, 2020	Dec. 31, 2019	Dec. 31, 2018
Assets
Accounts receivable	$ 39,833		$ 42,322
Other non-current assets	11,486		12,121
Equity
Accumulated deficit	(1,629,843)		$ (1,376,142)	$ (1,228,674)
Accounting Standards Update 2016-13 [Member]
Assets
Accounts receivable		$ (404)
Other non-current assets		(75)
Equity
Accumulated deficit		$ (3,665)
Difference Between Guidance in Effect Before and After ASC Three Two Six [Member] \| Accounting Standards Update 2016-13 [Member]
Assets
Accounts receivable	41,918
Other non-current assets	12,046
Equity
Accumulated deficit	$ (1,379,807)

Summary of Significant Accounting Policies - Summary of Adoption Impact of ASC 326 on Unaudited Condensed Consolidated Balance Sheet (Parenthetical) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Item Effected [Line Items]
Non-current assets of discontinued operations		$ 620,961
Difference Between Guidance in Effect Before and After ASC Three Two Six [Member] \| Accounting Standards Update 2016-13 [Member]
Item Effected [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change	$ 3,700
Disposal Group, Including Continuing Operation, Accounts Receivable, Net	500
Non-current assets of discontinued operations	3,200
Disposal Group, Including Discontinued Operation, Accounts Receivable	1,000
Prepaid And Other Current Asset Related To Discontinued Operation	400
Disposal Group, Including Discontinued Operation, Other Assets, Noncurrent	$ 1,800

- Definition

Amount classified as assets attributable to disposal group held for sale or disposed of, expected to be disposed of after one year or the normal operating cycle, if longer.

+ References + Details

Summary of Significant Accounting Policies - Summary of Cumulative Effect of Adoption on Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Assets
Operating lease right-of-use assets	$ 33,690	$ 35,807
Liabilities
Accrued liabilities	83,009	48,070		$ 213,111
Non-current operating lease liabilities	38,018	42,016
Other non-current liabilities	10,581	7,531		80,191
Stockholders’ deficit
Accumulated deficit	$ (1,629,843)	(1,376,142)		$ (1,228,674)
Accounting Standards Update 2014-09 And 340-40 [Member]
Assets
Operating lease right-of-use assets			$ 72,188
Liabilities
Accrued liabilities			9,019
Non-current operating lease liabilities			102,440
Other non-current liabilities			(36,178)
Stockholders’ deficit
Accumulated deficit			$ (3,093)
Accounting Standards Update 2014-09 And 340-40 [Member] \| Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
Assets
Operating lease right-of-use assets		72,188
Liabilities
Accrued liabilities		222,130
Non-current operating lease liabilities		102,440
Other non-current liabilities		44,013
Stockholders’ deficit
Accumulated deficit		$ (1,231,767)

Net Loss Per Share - Additional Information (Detail) - shares shares in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share [Abstract]
Forward stock repurchase transaction, shares	2.1	7.2	7.2

Net Loss Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share [Abstract]
Net loss from continuing operations									$ (48,559)	$ (88,497)	$ (52,460)
Net loss from discontinued operations, net of tax	$ 16,925	$ (71,234)	$ (71,778)	$ (75,390)	$ (21,349)	$ (20,037)	$ (7,721)	$ (8,400)	(201,477)	(57,507)	(109,571)
Net loss	845	(80,124)	(85,979)	(84,778)	(22,351)	(22,891)	(83,963)	(16,799)	(250,036)	(146,004)	(162,031)
Undistributed losses	$ 845	$ (80,124)	$ (85,979)	$ (84,778)	$ (22,351)	$ (22,891)	$ (83,963)	$ (16,799)	$ (250,036)	$ (146,004)	$ (162,031)
Weighted average number of shares—basic and diluted	83,377	82,707	81,757	81,205	80,997	80,908	80,702	80,446	82,266,000	80,766,000	80,038,000
Net loss attributable to common stock per share—basic and diluted:
Net loss from continuing operations	$ (0.19)	$ (0.11)	$ (0.18)	$ (0.12)	$ (0.01)	$ (0.04)	$ (0.93)	$ (0.10)	$ (0.59)	$ (1.10)	$ (0.66)
Net loss from discontinued operations	0.20	(0.86)	(0.89)	(0.93)	(0.26)	(0.25)	(0.09)	(0.10)	(2.45)	(0.71)	(1.36)
Net loss	$ 0.01	$ (0.97)	$ (1.07)	$ (1.05)	$ (0.27)	$ (0.29)	$ (1.02)	$ (0.20)	$ (3.04)	$ (1.81)	$ (2.02)

Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Revenue From Contracts With Customers [Line Items]
Transaction price allocated to remaining performance obligations	$ 71.0
Service revenue occurring period	1 year
Future equipment revenue recognition period	next year
Airline [Member]
Revenue From Contracts With Customers [Line Items]
Contract assets, current and non-current	$ 12.2	$ 3.1
Accounting Standards Update 2014-09 [Member]
Revenue From Contracts With Customers [Line Items]
Deferred revenue, current and non-current	3.1	$ 2.2
Connectivity and Entertainment Service Revenues [Member]
Revenue From Contracts With Customers [Line Items]
Transaction price allocated to remaining performance obligations	69.0
Future Equipment Revenue [Member]
Revenue From Contracts With Customers [Line Items]
Equipment revenue	$ 2.0

Revenue Recognition - Summary of Revenue Disaggregated by Category (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Disaggregation of revenue	$ 77,634	$ 66,525	$ 54,632	$ 70,927	$ 85,855	$ 81,340	$ 71,241	$ 70,549	$ 269,718	$ 308,985	$ 290,153
Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue									211,987	221,922	196,377
Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue									57,731	87,063	93,776
Aircraft Owner Operator [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue									211,987	221,922	196,377
OEM and Aftermarket Dealer [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue									57,731	87,063	93,776
Connectivity [Member] \| Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue									209,160	219,450	195,022
Entertainment And Other [Member] \| Service Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue									2,827	2,472	1,355
ATG [Member] \| Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue									45,200	62,899	72,159
Satellite [Member] \| Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue									11,746	21,755	18,165
Other [Member] \| Equipment Revenue [Member]
Disaggregation of Revenue [Line Items]
Disaggregation of revenue									$ 785	$ 2,409	$ 3,452

Composition of Certain Balance Sheet Accounts - Components of Inventories (Detail) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Work-in-process component parts	$ 15,405	$ 23,141
Finished goods	12,709	12,064
Total inventory	$ 28,114	$ 35,205

Composition of Certain Balance Sheet Accounts - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Prepaid Expense And Other Assets [Abstract]
Contract assets	$ 2,417	$ 540
Restricted cash	525	560
Other	5,992	5,713
Total prepaid expenses and other current assets	$ 8,934	$ 6,813

Composition of Certain Balance Sheet Accounts - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 162,882	$ 161,265
Accumulated depreciation	(99,389)	(92,082)
Property and equipment, net	63,493	69,183
Office Equipment, Furniture, Fixtures and Other [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	10,986	10,526
Leasehold Improvements [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	12,012	12,012
Network Equipment [Member]
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 139,884	$ 138,727

Composition of Certain Balance Sheet Accounts - Schedule of Other Non-Current Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Other Assets Noncurrent [Abstract]
Contract assets, net of allowances of $375 and $0, respectively	$ 9,775	$ 2,588
Restricted cash		7,099
Other	1,711	2,434
Total other non-current assets	$ 11,486	$ 12,121

Composition of Certain Balance Sheet Accounts - Schedule of Other Non-Current Assets (Parenthetical) (Detail) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Other Assets Noncurrent [Abstract]
Contract with Customer, Asset, Accumulated Allowance for Credit Loss, Noncurrent	$ 375	$ 0

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

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Accrued Liabilities Current [Abstract]

Accrued interest

$ 17,836

$ 17,048

Employee compensation and benefits

^[1]

35,516

9,818

Operating leases

8,089

7,580

Deferred gain on sale of CA business

^[2]

9,400

Warranty reserve

2,400

2,500

Taxes

2,022

5,037

Other

7,746

6,087

Total accrued liabilities

$ 83,009

$ 48,070

$ 213,111

[1]	Includes $19.2 million expected to be paid in Gogo common stock for employees classified within discontinued operations.
[2]	Relates to sale of CA business on December 1, 2020. See Note 2, “Discontinued Operations,” for additional information.

Composition of Certain Balance Sheet Accounts - Schedule of Other Non-Current Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Other Liabilities Noncurrent [Abstract]
Asset retirement obligations	$ 4,401	$ 4,093	$ 3,795
Deferred tax liabilities	2,108	2,340
Other	4,072	1,098
Total other non-current liabilities	$ 10,581	$ 7,531	$ 80,191

Composition of Certain Balance Sheet Accounts - Schedule of Changes in Non Current Asset Retirement Obligation (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligation, Beginning Balance	$ 4,093	$ 3,795
Liabilities settled	(115)	(91)
Accretion expense	416	379
Foreign exchange rate adjustments	7	10
Asset retirement obligation, Ending Balance	$ 4,401	$ 4,093

Composition of Certain Reserves and Allowances (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($)
Financing Receivable Allowance For Credit Losses [Line Items]
Accounts receivable, Beginning balance	$ 660
Accounts receivable, Cumulative-effect adjustment of ASC 326 adoption	404
Current-period provision for expected credit losses	771
Write-offs charged against the allowances	(727)
Other	(64)
Accounts receivable, Ending balance	1,044
Other non-current assets
Financing Receivable Allowance For Credit Losses [Line Items]
Financing Receivable, Cumulative-effect adjustment of ASC 326 adoption	75
Financing Receivable, Current-period provision for expected credit losses	300
Financing Receivable, Ending balance	$ 375

Composition of Certain Reserves and Allowances - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2020
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	5 years

Composition of Certain Reserves and Allowances - Schedule of Changes in Warranty Reserves (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Product Warranty Liability [Line Items]
Warranty Beginning Balance	$ 2,500
Warranty Ending Balance	2,400	$ 2,500
Warranty Reserves
Product Warranty Liability [Line Items]
Warranty Beginning Balance	2,500	1,800
Accruals for warranties issued	(7)	791
Settlements and adjustments to warranties	(93)	(91)
Warranty Ending Balance	$ 2,400	$ 2,500

Intangible Assets - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Indefinite Lived Intangible Assets By Major Class [Line Items]
Goodwill	$ 600,000	$ 600,000
Amortization expense	$ 6,300,000	6,100,000	$ 4,500,000
FCC Licenses [Member]
Indefinite Lived Intangible Assets By Major Class [Line Items]
License agreement, initial maturity period	10 years
License agreement, renewal maturity period	10 years
Impairment of intangible assets	$ 0	$ 0	$ 0

Intangible Assets - Schedule of Intangible Assets, Other than Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Intangible Assets Net Excluding Goodwill [Line Items]
Amortized intangible assets, Gross Carrying Amount	$ 66,334	$ 58,896
Amortized intangible assets, Accumulated Amortization	(46,544)	(39,996)
Amortized intangible assets, Net Carrying Amount	19,790	18,900
Total intangible assets, Gross Carrying amount	98,617	91,179
Total intangible assets, Net Carrying Amount	52,073	51,183
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]
Finite lived intangible asset useful life	2 years 4 months 24 days
Amortized intangible assets, Gross Carrying Amount	$ 50,029	42,591
Amortized intangible assets, Accumulated Amortization	(31,739)	(25,191)
Amortized intangible assets, Net Carrying Amount	$ 18,290	17,400
Other Intangible Assets [Member]
Intangible Assets Net Excluding Goodwill [Line Items]
Finite lived intangible asset useful life	9 years
Amortized intangible assets, Gross Carrying Amount	$ 1,500	1,500
Amortized intangible assets, Net Carrying Amount	1,500	1,500
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]
Finite lived intangible asset useful life	10 years
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	Dec. 31, 2020 USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
2021	$ 7,553
2022	4,795
2023	2,287
2024	976
2025	976
Thereafter	$ 3,203

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

Dec. 31, 2020

Dec. 31, 2019

Debt Instrument [Line Items]

Total debt

$ 1,188,661

$ 1,125,503

Less deferred financing costs

(19,693)

(24,255)

Less current portion of long-term debt

(341,000)

Long-term debt

827,968

1,101,248

2024 Senior Secured Notes [Member]

Debt Instrument [Line Items]

Senior Secured Notes

973,539

921,137

Total debt

^[1]

973,539

921,137

2022 Convertible Notes [Member]

Debt Instrument [Line Items]

Convertible Notes

^[2]

$ 215,122

201,868

2020 Convertible Notes [Member]

Debt Instrument [Line Items]

Convertible Notes

$ 2,498

[1]

[2]

(3)

Long-Term Debt and Other Liabilities - Additional Information (Detail) $ / shares in Units, shares in Millions											1 Months Ended				12 Months Ended
	Nov. 13, 2020 USD ($)	Mar. 06, 2020 shares	Dec. 11, 2019 USD ($) shares	Apr. 25, 2019 USD ($)	Apr. 18, 2019 USD ($)	Nov. 21, 2018 USD ($) Tradingday $ / shares	Sep. 25, 2017 USD ($)	Jan. 03, 2017 USD ($)	Jun. 14, 2016 USD ($)	Mar. 03, 2015 USD ($) $ / shares shares	Sep. 30, 2019 USD ($)	Aug. 26, 2019 USD ($) ClassOfCommonStock	Apr. 15, 2019 USD ($)	Nov. 30, 2018 USD ($)	Dec. 31, 2020 USD ($) shares	Dec. 31, 2019 USD ($) shares	Dec. 31, 2018 USD ($) shares	Nov. 09, 2020 USD ($)	May 07, 2019 USD ($)
Debt Instrument [Line Items]
Proceeds from issuance of senior secured notes															$ 51,750,000	$ 920,683,000
Total debt															1,188,661,000	1,125,503,000
Repayments Of Convertible Debt															2,498,000	159,502,000	$ 200,438,000
Amortization of deferred financing costs															5,892,000	5,260,000	4,280,000
Debt instrument maturity date description												The final maturity of the ABL Credit Facility is August 26, 2022, unless the aggregate outstanding principal amount of our 2022 Convertible Notes (as defined below) has not, on or prior to December 15, 2021, been repaid in full or refinanced with a new maturity date no earlier than February 26, 2023, in which case the final maturity date shall instead be December 16, 2021.
Margin On LIBOR												London inter-bank offered rate plus an applicable margin ranging from 1.50% to 2.00% per annum
Proceeds from issuance of convertible notes																	$ 237,750,000
Additional paid-in capital															$ 1,088,590,000	$ 979,499,000
Forward stock repurchase transaction, shares \| shares															2.1	7.2	7.2
Letter of Credit
Debt Instrument [Line Items]
Restricted cash															$ 500,000	$ 7,700,000
Convertible Notes [Member]
Debt Instrument [Line Items]
Forward stock repurchase transaction, shares \| shares										7.2
Maximum [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Interest Rate On Debt												2.00%
Maximum [Member] \| Base Rate [Member]
Debt Instrument [Line Items]
Interest Rate On Debt												1.00%
Minimum [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Interest Rate On Debt												1.50%
Minimum [Member] \| Base Rate [Member]
Debt Instrument [Line Items]
Interest Rate On Debt												0.50%
ABL Credit Facility [Member]
Debt Instrument [Line Items]
Line Of Credit Facility Current Borrowing Capacity												$ 4,500,000
Debt Instrument Interest Rate Effective Percentage												15.00%
ABL Credit Facility [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Unused Borrowing Fee Percentage												0.375%
Line of Credit Facility Fixed Charge Coverage Ratio \| ClassOfCommonStock												1.10
ABL Credit Facility [Member] \| Minimum [Member]
Debt Instrument [Line Items]
Unused Borrowing Fee Percentage												0.25%
Line of Credit Facility Fixed Charge Coverage Ratio \| ClassOfCommonStock												1.00
Minimum Fixed Charge Coverage Ratio \| ClassOfCommonStock												1.00
ABL Credit Facility [Member] \| JP Morgan Chase Bank NA [Member]
Debt Instrument [Line Items]
Credit Facility borrowing base availability												$ 30,000,000
ABL Credit Facility [Member] \| JP Morgan Chase Bank NA [Member] \| Maximum [Member]
Debt Instrument [Line Items]
Line Of Credit Facility Remaining Borrowing Capacity															21,900,000
2024 Senior Secured Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount	$ 50,000,000			$ 905,000,000											975,000,000	925,000,000		$ 50,000,000
Interest rate				9.875%
Increase Decrease In Debt Indebtedness				$ 20,000,000
Issue price as percentage of face value	99.512%
Convertible Notes, unamortized discount															1,500,000	3,900,000
Total debt															$ 973,500,000	921,100,000
2024 Senior Secured Notes [Member] \| Condition One [Member]
Debt Instrument [Line Items]
Debt instrument redemption price percentage of principal amount redeemed															100.00%
Proceeds from Short-term Debt															$ 341,000,000
2024 Senior Secured Notes [Member] \| May Two Thousand And Nineteen Additional Notes
Debt Instrument [Line Items]
Issue price as percentage of face value	100.50%
Proceeds from issuance of senior secured notes	$ 920,700,000
2024 Senior Secured Notes [Member] \| November Two Thousand And Twenty Additional Notes
Debt Instrument [Line Items]
Issue price as percentage of face value	103.50%
Proceeds from issuance of senior secured notes	$ 51,800,000
Accrued interest received	$ 100,000
9.875% Senior secured Notes Due On 2024 [Member]
Debt Instrument [Line Items]
Debt Instrument Maturity Date															May 01, 2024
Loan origination fees															$ 22,600,000
Amortization of deferred financing costs															3,700,000	2,300,000
Debt issuance costs															$ 16,600,000	19,700,000
9.875% Senior secured Notes Due On 2024 [Member] \| Condition Two [Member]
Debt Instrument [Line Items]
Debt instrument redemption price, percentage									100.00%
Debt instrument redemption price percentage of principal amount redeemed															101.00%
9.875% Senior secured Notes Due On 2024 [Member] \| May Two Thousand And Nineteen Additional Notes
Debt Instrument [Line Items]
Aggregate principal amount																			$ 20,000,000
Interest rate															9.875%				9.875%
Two Thousand Twenty Convertible Notes [Member]
Debt Instrument [Line Items]
Repayments Of Convertible Debt											$ 500,000					2,500,000
Outstanding principal balance paid																2,500,000
Two Thousand Twenty Convertible Notes [Member] \| Loss On Extinguishment Of Debt [Member]
Debt Instrument [Line Items]
Repayments Of Convertible Debt															$ 159,000,000.0
Repayments Of Convertible Debt Adjustments															8,500,000
Debt Issuance Costs, Net															600,000
12.500% Senior Secured Notes Due 2022 [Member]
Debt Instrument [Line Items]
Aggregate principal amount									$ 525,000,000
Interest rate									12.50%
Loan origination fees													$ 15,900,000
Amortization of deferred financing costs													$ 690,000,000			900,000	$ 2,600,000
Debt issuance costs															9,100,000
Payment Of Premium On Debt Redemption															51,400,000
Unamortized debt premium and consent fees															11,700,000
12.500% Senior Secured Notes Due 2022 [Member] \| Supplemental Indenture [Member]
Debt Instrument [Line Items]
Consent fees paid															$ 1,400,000
12.500% Senior Secured Notes Due 2022 [Member] \| Condition One [Member]
Debt Instrument [Line Items]
Debt instrument redemption price, percentage															109.875%
Debt instrument redemption price percentage of principal amount redeemed															40.00%
Outstanding redemption percentage															50.00%
12.500% Senior Secured Notes Due 2022 [Member] \| January Two Thousand And Seventeen Additional Notes [Member] \| Additional Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount								$ 65,000,000
Interest rate								12.50%
Issue price as percentage of face value								108.00%
Proceeds from issuance of senior secured notes								$ 70,200,000
12.500% Senior Secured Notes Due 2022 [Member] \| September Two Thousand And Seventeen Additional Notes [Member] \| Additional Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount							$ 100,000,000
Interest rate							12.50%
Issue price as percentage of face value							113.00%
Proceeds from issuance of senior secured notes							$ 113,000,000.0
Accrued interest received							$ 2,900,000
6.00% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount						$ 237,800,000
Interest rate						6.00%
Convertible Notes, unamortized discount															$ 22,700,000	35,900,000
Amortization of deferred financing costs															1,800,000	1,700,000
Debt issuance costs															2,700,000	4,500,000
Debt instrument redemption price, percentage						100.00%
Debt Instrument Interest Rate Effective Percentage						13.60%
Option granted to initial purchasers						$ 32,300,000
Principal amount of Convertible Notes, subsequently exercised						22,800,000
Proceeds from issuance of convertible notes						237,800,000
Convertible Notes						188,700,000									215,100,000	201,900,000
Additional paid-in capital						$ 49,100,000
Outstanding principal balance paid															237,800,000	237,800,000
Conversion rate						166.6667
Principal amount						$ 1,000
Conversion price \| $ / shares						$ 6.00
Multiples of principal amount						$ 1,000
Debt instrument convertible threshold trading days \| Tradingday						20
Debt instrument convertible threshold consecutive trading days \| Tradingday						30
Debt instrument convertible threshold percentage of stock price trigger						130.00%
6.00% Convertible Senior Notes [Member] \| Institutional Buyers [Member]
Debt Instrument [Line Items]
Aggregate principal amount						$ 215,000,000.0
6.00% Convertible Senior Notes [Member] \| Issuance Costs [Member]
Debt Instrument [Line Items]
Loan origination fees						8,100,000
Additional paid-in capital						1,700,000
Issuance cost recorded to deferred financing costs						$ 6,400,000
3.75% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Interest rate										3.75%
Repayments Of Convertible Debt														$ 199,900,000
Amortization of deferred financing costs															$ 0	200,000	$ 1,400,000
Debt Instrument Interest Rate Effective Percentage															11.50%
Option granted to initial purchasers										$ 60,000,000.0
Proceeds from issuance of convertible notes										361,900,000
Convertible Notes										261,900,000						$ 2,498,000
Additional paid-in capital										$ 100,000,000.0
Conversion rate										41.9274
Principal amount										$ 1,000
Conversion price \| $ / shares										$ 23.85
Interest rate payable term										semi-annually
Increase in convertible notes														$ 17,900,000
Debt Instrument Redemption Price					$ 1,000
Debt Instrument Principal Redemption					$ 1,000
Forward stock repurchase transactions amount			$ 140,000,000							$ 140,000,000
Forward stock repurchase transaction, shares \| shares		5.1	2.1
3.75% Convertible Senior Notes [Member] \| Institutional Buyers [Member]
Debt Instrument [Line Items]
Aggregate principal amount										340,000,000.0
Principal amount of Convertible Notes, subsequently exercised										$ 21,900,000
3.75% Convertible Senior Notes [Member] \| Issuance Costs [Member]
Debt Instrument [Line Items]
Loan origination fees															$ 10,400,000
Additional paid-in capital															2,900,000
Issuance cost recorded to deferred financing costs															$ 7,500,000
3.75% Convertible Senior Notes [Member] \| Retired Shares for Basic and Diluted EPS [Member]
Debt Instrument [Line Items]
Forward stock repurchase transaction, shares \| shares		2.1

Long-Term Debt and Other Liabilities - Summary of Redemption Prices Plus Accrued and Unpaid Interest (Detail)	12 Months Ended
	Dec. 31, 2020
2021 [Member]
Debt Instrument Redemption [Line Items]
Debt instrument redemption price, percentage	104.938%
2022 [Member]
Debt Instrument Redemption [Line Items]
Debt instrument redemption price, percentage	102.469%
2023 and thereafter [Member]
Debt Instrument Redemption [Line Items]
Debt instrument redemption price, percentage	100.00%

Interest Costs - Summary of Interest Costs (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Schedule Of Interest [Line Items]
Interest costs charged to expense	$ 105,988	$ 110,502	$ 100,085
Amortization of deferred financing costs	5,892	5,260	4,280
Accretion of debt discount	13,907	15,729	21,105
Amortization of debt premium		(1,018)	(2,850)
Interest expense	125,787	130,473	122,620
Total interest costs	126,672	131,092	123,016
Property and Equipment [Member]
Schedule Of Interest [Line Items]
Interest costs capitalized		11	32
Software [Member]
Schedule Of Interest [Line Items]
Interest costs capitalized	$ 885	$ 608	$ 364

Common Stock and Preferred Stock - Additional Information (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Equity [Abstract]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Preferred stock share authorized	100,000,000
Preferred stock par value per share	$ 0.01
Preferred stock share issued	0
Shares issued, price per share	$ 38.40
Business acquisition	A company generally experiences an ownership change if the percentage of the value of its stock owned by certain “5-percent shareholders,” as such term is defined in Section 382 of the Code, increases by more than 50 percentage points over a rolling three-year period. The Rights Agreement is intended to reduce the likelihood of an ownership change under Section 382 of the Code by deterring any person or group from acquiring beneficial ownership of 4.9% or more of the shares of the Company’s common stock then-outstanding. Initially, the Rights will be attached to all shares of the Company’s common stock. Until the Distribution Date (as defined below), the Rights will be transferred with and only with the common stock. As long as the Rights are attached to the common stock, the Company will issue one Right with each new share of common stock so that all such shares of common stock will have Rights attached (subject to certain limited exceptions). The Rights will separate and begin trading separately from the common stock, and Right certificates will be caused to evidence the Rights, on the earlier to occur of (i) the close of business on the tenth day following public disclosure of facts indicating that a person or group has acquired beneficial ownership of 4.9% or more of the outstanding common stock (an “Acquiring Person”) (or, in the event the Board of Directors determines to effect an exchange in accordance with Section 24 of the Rights Agreement and the Board of Directors determines that a later date is advisable, then such later date) and (ii) the close of business on the tenth business day (or such later date as may be determined by action of the Board of Directors prior to such time as any person becomes an Acquiring Person) following the commencement of a tender offer or exchange offer the consummation of which would result in the beneficial ownership by a person or group of 4.9% or more of the outstanding common stock (the earlier of such dates, the “Distribution Date”).

Fair Value of Financial Assets and Liabilities - Summary of Fair Value and Carrying Value of Long-Term Debt (Detail) - USD ($)
$ in Thousands

Dec. 31, 2020

Dec. 31, 2019

Mar. 03, 2015

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Total debt

$ 1,188,661

$ 1,125,503

2024 Senior Secured Notes [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Fair Value of Long Term Debt

^[1]

1,045,000

982,000

Total debt

^[2]

973,539

921,137

2022 Convertible Notes [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Fair Value of Convertible Notes

^[1]

404,000

297,000

Carrying Value of Convertible Notes

^[3]

$ 215,122

201,868

2020 Convertible Notes [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Fair Value of Convertible Notes

^[1]

2,498

Carrying Value of Convertible Notes

$ 2,498

$ 261,900

[1]

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

[2]

[3]

(3)

Fair Value of Financial Assets and Liabilities - Summary of Fair Value and Carrying Value of Long-Term Debt (Parenthetical) (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
2024 Senior Secured Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Unamortized Discount	$ 1.5	$ 3.9
2022 Convertible Notes [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Unamortized Discount	$ 22.6	$ 35.9

Business Segments and Major Customers - Additional Information (Detail) - Customer	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Number of customers meeting concentration risk threshold	0
Revenue [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark	10.00%	10.00%	10.00%
Accounts Receivable [Member]
Segment Reporting Information [Line Items]
Percentage of benchmark	5.00%	5.00%	5.00%

Stock-Based Compensation - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($) ClassOfCommonStock shares	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Schedule Of Share Based Compensation Arrangement [Line Items]
Number of share-based employee compensation plans \| ClassOfCommonStock	3
Restricted Stock Units And Deferred Stock Units [Member]
Schedule Of Share Based Compensation Arrangement [Line Items]
DSU settlement period	90 days
Total unrecognized compensation costs related to unvested stock options \| $	$ 5.0
Weighted average period related to unvested stock options	1 year 7 months 6 days
Total grant date fair value of stock options vested \| $	$ 14.0
Stock options [Member]
Schedule Of Share Based Compensation Arrangement [Line Items]
Stock options granted	1,272,072
Stock options forfeited	6,779,837
Restricted Stock [Member]
Schedule Of Share Based Compensation Arrangement [Line Items]
Total unrecognized compensation costs related to unvested stock options \| $	$ 0.1
Weighted average period related to unvested stock options	3 months 18 days
Option Exchange Program [Member]
Schedule Of Share Based Compensation Arrangement [Line Items]
Common stock, shares issued under ESPP	6,664,773
Stock options granted	4,168,455
Stock options forfeited	2,896,383
Employee Stock Purchase Plan [Member]
Schedule Of Share Based Compensation Arrangement [Line Items]
Common stock, shares reserved for issuance	2,200,000
Shares available for grant	815,140
Common stock, shares issued under ESPP	363,209
Employee Stock Purchase Plan [Member] \| Maximum [Member]
Schedule Of Share Based Compensation Arrangement [Line Items]
Purchase Price of Common Stock, Percent	15.00%
Stock Plan 2010, 2013 and 2016 [Member]
Schedule Of Share Based Compensation Arrangement [Line Items]
Common stock, shares reserved for issuance	27,709,128
Shares available for grant	6,923,988
Contractual life of granted options	10 years
Options vesting period	4 years
Stock Plan 2010, 2013 and 2016 [Member] \| Restricted Stock Units And Deferred Stock Units [Member] \| Director [Member]
Schedule Of Share Based Compensation Arrangement [Line Items]
2013 Omnibus Plan settlement, Description	DSUs will be settled in shares of our common stock 90 days after the director ceases to serve as a director.
Stock Plan 2010, 2013 and 2016 [Member] \| Stock options [Member]
Schedule Of Share Based Compensation Arrangement [Line Items]
Total unrecognized compensation costs related to unvested stock options \| $	$ 5.0
Weighted average period related to unvested stock options	1 year 9 months 18 days
Total grant date fair value of stock options vested \| $	$ 16.0	$ 8.0	$ 9.0

Stock-Based Compensation - Summary of Stock-Based Compensation Expense by Operating Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 7,808	$ 8,654	$ 8,536
Cost of Service Revenue [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	119	118
Cost of Equipment Revenue [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	235	275	210
Engineering, Design and Development [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	560	601	721
Sales and Marketing [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	880	1,233	1,754
General and Administrative [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 6,014	$ 6,427	$ 5,851

Stock-Based Compensation - Summary of Stock Options Activity (Detail) - Stock options [Member] - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Schedule Of Stock Option Activity [Line Items]
Options Outstanding, Beginning Balance	11,074,504
Number of Options, Granted	1,272,072
Number of Options, Issued in Option Exchange	2,896,383
Number of Options, Exercised	(87,104)
Number of Options, Forfeited	(6,779,837)
Number of Options, Expired	(2,929,350)
Options Outstanding, Ending Balance	5,446,668	11,074,504
Options Exercisable, Ending Balance	1,876,337
Weighted Average Exercise Price Per Share, Outstanding Beginning Balance	$ 11.70
Weighted Average Exercise Price Per Share, Granted	2.54
Weighted Average Exercise Price Per Share, Issued in Option Exchange	2.61
Weighted Average Exercise Price Per Share, Exercised	3.00
Weighted Average Exercise Price Per Share, Forfeited	12.12
Weighted Average Exercise Price Per Share, Expired	12.00
Weighted Average Exercise Price Per Share, Outstanding Ending Balance	4.19	$ 11.70
Weighted Average Exercise Price Per Share, Options Exercisable	$ 7.01
Weighted Average Remaining Contractual Life, Outstanding	7 years 3 months 29 days	5 years 3 months
Weighted Average Remaining Contractual Life, Exercisable Ending Balance	5 years 7 months 2 days
Aggregate Intrinsic Value, Outstanding	$ 32,458
Aggregate Intrinsic Value, Exercisable Ending Balance	$ 7,739

Stock-Based Compensation - Schedule of Weighted Average Assumptions Used and Weighted Average Grant Date Fair Value of Stock Options (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Stock options [Member]
Schedule Of Weighted Average Assumptions For Fair Values Of Stock Options [Line Items]
Approximate risk-free interest rate	0.50%	2.30%	2.70%
Average expected life (years)	6 years 2 months 12 days	6 years 7 days	6 years 10 days
Volatility	66.80%	60.50%	49.20%
Weighted average grant date fair value of stock options granted	$ 2.59	$ 4.71	$ 8.97
Common Stock
Schedule Of Weighted Average Assumptions For Fair Values Of Stock Options [Line Items]
Weighted average grant date fair value of stock options granted	$ 1.56	$ 2.69	$ 4.42

Stock-Based Compensation - Summarizes the Activities for Unvested RSUs and DSUs (Detail) - Restricted Stock Units And Deferred Stock Units [Member]	12 Months Ended
	Dec. 31, 2020 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Underlying Shares, Unvested - Beginning balance \| shares	4,183,232
Number of Underlying Shares, Granted \| shares	3,050,865
Number of Underlying Shares, Vested \| shares	(3,160,611)
Number of Underlying Shares, Forfeited/canceled \| shares	(625,317)
Number of Underlying Shares, Unvested - Ending balance \| shares	3,448,169
Weighted Average Grant Date Fair Value, Unvested - Beginning balance \| $ / shares	$ 5.18
Weighted Average Grant Date Fair Value, Granted \| $ / shares	2.24
Weighted Average Grant Date Fair Value, Vested \| $ / shares	4.09
Weighted Average Grant Date Fair Value, Forfeited/canceled \| $ / shares	3.89
Weighted Average Grant Date Fair Value, Unvested - Ending balance \| $ / shares	$ 3.80

Stock-Based Compensation - Summarizes the Activity for Restricted Stock (Detail) - Restricted Stock [Member]	12 Months Ended
	Dec. 31, 2020 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Underlying Shares, Unvested - Beginning balance \| shares	44,204
Number of Underlying Shares, Vested \| shares	(25,977)
Number of Underlying Shares, Unvested - Ending balance \| shares	18,227
Weighted Average Grant Date Fair Value, Unvested - Beginning balance \| $ / shares	$ 11.63
Weighted Average Grant Date Fair Value, Vested \| $ / shares	11.19
Weighted Average Grant Date Fair Value, Unvested - Ending balance \| $ / shares	$ 12.26

Employee Retirement and Postretirement Benefits - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Text Block [Abstract]
Employee Contribution	100.00%
Percentage of employees contribution matched by the company	4.00%
Employer Contribution	$ 1.5	$ 1.3	$ 1.1

Income Tax - (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
United States	$ (45,840)	$ (85,806)	$ (54,655)
Foreign	(2,865)	(2,128)	(1,159)
Loss from continuing operations before income taxes	$ (48,705)	$ (87,934)	$ (55,814)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 20
-Section 25
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=68072869&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(8))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

Income Tax - Components of (Benefit) Provision for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Current:
State	$ 86	$ 385	$ 467
Current Total	86	385	467
Deferred:
Federal	(318)	91	(3,908)
State	86	87	87
Deferred Total	(232)	178	(3,821)
Total	$ (146)	$ 563	$ (3,354)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Tax - Income Tax Computed at Federal Statutory Tax Rates (Detail)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Federal statutory rate	21.00%	21.00%	21.00%
Impact of change in tax rate		(0.10%)	0.30%
Change in valuation allowance	(48.90%)	(25.10%)	(28.90%)
State income taxes-net of federal tax benefit	14.00%	6.90%	11.90%
Other	14.20%	(3.10%)	1.70%
Effective tax rate	0.30%	(0.60%)	6.00%

Income Tax - Components of Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Compensation accruals	$ 7,618	$ 5,847
Stock options	23,263	18,192
Inventory	1,784	1,266
Warranty reserves	599	913
Capital loss	17,712
Deferred revenue	315	43,256
Federal net operating loss (NOL)	154,180	130,878
State NOL	25,896	24,744
Interest carryforward	66,379	48,980
UNICAP adjustment	1,733	2,539
Finite-lived intangible assets	4,748	6,394
Lease liability	11,539	22,355
Other	7,671	9,243
Total deferred income tax assets	323,437	314,607
Fixed assets	(8,673)	(59,584)
Indefinite-lived intangible assets	(7,619)	(7,074)
Convertible Notes discount	(5,512)	(8,706)
Right-of-use asset	(8,435)	(13,553)
Other	(1,924)	(3,768)
Total deferred income tax liabilities	(32,163)	(92,685)
Total deferred income tax	291,274	221,922
Valuation allowance	(293,382)	(224,262)
Net deferred income tax liability	$ (2,108)	$ (2,340)

Income Tax - Additional Information (Detail) - USD ($)	12 Months Ended
Income Tax - Additional Information (Detail) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Tax Credit Carryforward [Line Items]
Utilization of NOL and tax credit carryforwards due to ownership changes	50.00%
Interest expense allowable of EBITDA	30.00%
Interest expense allowable of EBIT	30.00%
Unrecognized tax benefits	$ 0	$ 0	$ 0
Interest or penalties related to uncertain tax positions	0	0	0
Liabilities for interest and potential penalties	0	$ 0	$ 0
Increase (decrease) in unrecognized tax benefits	0
Federal net operating loss [Member]
Tax Credit Carryforward [Line Items]
Net operating loss carryforward	647,000,000
State NOL [Member]
Tax Credit Carryforward [Line Items]
Net operating loss carryforward	$ 452,000,000

Leases - Summary of our lease expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease cost	$ 11,688	$ 11,676
Finance lease cost:
Amortization of leased assets	230	665
Interest on lease liabilities	113	56
Total lease cost	$ 12,031	$ 12,397

Leases - Other information regarding our leases (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows used in operating leases	$ 12,733	$ 13,059
Operating cash flows used in finance leases	113	56
Financing cash flows used in finance leases	546
Non-cash items:
Operating leases obtained	5,342	4,197
Finance leases obtained	$ 428	$ 1,268
Weighted average remaining lease term
Operating leases	7 years	8 years
Finance leases	2 years	3 years
Weighted average discount rate
Operating leases	11.20%	10.30%
Finance leases	10.50%	8.30%

Leases - Annual Future Minimum Obligations for Operating Leases Other than Arrangements with Commercial Airline Partners (Detail) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Operating Leases
2021	$ 12,521
2022	11,800
2023	7,904
2024	6,078
2025	4,685
Thereafter	25,157
Total future minimum lease payments	68,145
Less: Amount representing interest	(22,038)
Present value of net minimum lease payments	46,107
Accrued liabilities	$ 8,089	$ 7,580
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccruedLiabilitiesMember
Non-current operating lease liabilities	$ 38,018	$ 42,016
Total lease liabilities	46,107
Financing Leases
2021	925
2022	846
2023	262
Total future minimum lease payments	2,033
Less: Amount representing interest	(144)
Present value of net minimum lease payments	1,889
Accrued liabilities	$ 719
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccruedLiabilitiesMember
Other non-current liabilities	$ 1,170
Total lease liabilities	$ 1,889

Commitments and Contingencies - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2020
Linksmart Litigation [Member]
Loss Contingencies [Line Items]
Litigation filing date	April 20, 2018
Securities Litigation [Member]
Loss Contingencies [Line Items]
Litigation filing date	June 27, 2018
Derivative Litigation [Member]
Loss Contingencies [Line Items]
Litigation filing date	September 25, 2018 and September 26, 2018

Quarterly Data (Unaudited) - Summarized Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Disaggregation of revenue	$ 77,634	$ 66,525	$ 54,632	$ 70,927	$ 85,855	$ 81,340	$ 71,241	$ 70,549	$ 269,718	$ 308,985	$ 290,153
Operating income	15,696	22,220	17,118	21,317	29,440	27,053	16,872	23,167	76,351	96,532	82,417
Net loss from continuing operations	(16,080)	(8,890)	(14,201)	(9,388)	(1,002)	(2,854)	(76,242)	(8,399)	(48,559)	(88,497)	(52,460)
Net loss from discontinued operations, net of tax	16,925	(71,234)	(71,778)	(75,390)	(21,349)	(20,037)	(7,721)	(8,400)	(201,477)	(57,507)	(109,571)
Net loss	845	(80,124)	(85,979)	(84,778)	(22,351)	(22,891)	(83,963)	(16,799)	(250,036)	(146,004)	(162,031)
Net income (loss) attributable to common stock	$ 845	$ (80,124)	$ (85,979)	$ (84,778)	$ (22,351)	$ (22,891)	$ (83,963)	$ (16,799)	$ (250,036)	$ (146,004)	$ (162,031)
Net loss attributable to common stock per share—basic and diluted:
Net loss from continuing operations	$ (0.19)	$ (0.11)	$ (0.18)	$ (0.12)	$ (0.01)	$ (0.04)	$ (0.93)	$ (0.10)	$ (0.59)	$ (1.10)	$ (0.66)
Net loss from discontinued operations	0.20	(0.86)	(0.89)	(0.93)	(0.26)	(0.25)	(0.09)	(0.10)	(2.45)	(0.71)	(1.36)
Net income (loss)	$ 0.01	$ (0.97)	$ (1.07)	$ (1.05)	$ (0.27)	$ (0.29)	$ (1.02)	$ (0.20)	$ (3.04)	$ (1.81)	$ (2.02)
Weighted average number of shares—basic and diluted	83,377	82,707	81,757	81,205	80,997	80,908	80,702	80,446	82,266,000	80,766,000	80,038,000

Condensed Financial Information of Registrant - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets:
Cash and cash equivalents	$ 435,345	$ 170,016	$ 184,155
Prepaid expenses and other current assets	8,934	6,813
Other non-current assets	11,486	12,121
Total assets	673,588	1,214,700
Liabilities and stockholders’ deficit:
Total current liabilities	438,135	252,642
Long-term debt	827,968	1,101,248
Other non-current liabilities	10,581	7,531	80,191
Total liabilities	1,314,702	1,613,590
Total stockholders’ deficit	(641,114)	(398,890)	(268,761)	$ (191,564)
Total liabilities and stockholders’ deficit	673,588	1,214,700
Parent Company [Member]
Assets:
Cash and cash equivalents	55,065	118,323	$ 161,113
Prepaid expenses and other current assets	25	164
Other non-current assets		2,599
Total assets	55,090	121,086
Liabilities and stockholders’ deficit:
Total current liabilities	1,947	2,200
Long-term debt	212,387	199,849
Other non-current liabilities	2,108	2,340
Investments and payables with subsidiaries	479,762	315,587
Total liabilities	696,204	519,976
Total stockholders’ deficit	(641,114)	(398,890)
Total liabilities and stockholders’ deficit	$ 55,090	$ 121,086

Condensed Financial Information of Registrant - Condensed Statements of Operations and Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Condensed Income Statements, Captions [Line Items]
Interest income									$ 722	$ 4,000	$ 4,122
Interest expense									(125,787)	(130,473)	(122,620)
Loss on extinguishment of debt										57,962	19,653
Other									9	(31)	(80)
Total other (income) expense									(125,056)	(184,466)	(138,231)
Income (loss) before income taxes									(48,705)	(87,934)	(55,814)
Income tax provision (benefit)									146	(563)	3,354
Net loss	$ 845	$ (80,124)	$ (85,979)	$ (84,778)	$ (22,351)	$ (22,891)	$ (83,963)	$ (16,799)	(250,036)	(146,004)	(162,031)
Comprehensive loss									(248,793)	(144,706)	(164,652)
Parent Company [Member]
Condensed Income Statements, Captions [Line Items]
Interest income									(451)	(3,083)	(3,123)
Interest expense									29,318	33,807	36,984
Loss on extinguishment of debt										9,163	19,653
Other									4	3
Total other (income) expense									28,871	39,890	53,514
Income (loss) before income taxes									(28,871)	(39,890)	(53,514)
Income tax provision (benefit)									(146)	563	(3,354)
Equity losses of subsidiaries									221,311	105,551	111,871
Net loss									(250,036)	(146,004)	(162,031)
Comprehensive loss									$ (250,036)	$ (146,004)	$ (162,031)

Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Condensed Cash Flow Statements, Captions [Line Items]
Net loss	$ 845	$ (80,124)	$ (85,979)	$ (84,778)	$ (22,351)	$ (22,891)	$ (83,963)	$ (16,799)	$ (250,036)	$ (146,004)	$ (162,031)
Accretion of debt discount									13,907	15,729	21,105
Amortization of deferred financing costs									5,892	5,260	4,280
Loss on extinguishment of debt										57,962	19,653
Deferred income taxes									(232)	178	(3,821)
Net cash provided by (used in) operating activities from continuing operations									4,513	(12,872)	1,892
Purchases of short-term investments											(39,323)
Redemptions of short-term investments										39,323	212,792
Net cash provided by (used in) investing activities from continuing operations									(8,990)	32,850	162,820
Financing activities:
Proceeds from issuance of convertible notes											237,750
Repurchase of convertible notes									(2,498)	(159,502)	(200,438)
Payment of debt issuance costs										(22,976)	(8,054)
Net cash provided by (used in) financing activities from continuing operations									44,479	(2,830)	29,654
Cash, cash equivalents and restricted cash at beginning of period				177,675				191,116	177,675	191,116	203,729
Cash, cash equivalents and restricted cash at end of period	435,870				177,675				435,870	177,675	191,116
Less: current restricted cash	525				560				525	560	1,535
Less: non-current restricted cash					7,099					7,099	5,426
Cash and cash equivalents at end of period	435,345				170,016				435,345	170,016	184,155
Parent Company [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net loss									(250,036)	(146,004)	(162,031)
Accretion of debt discount									13,255	15,276	21,105
Amortization of deferred financing costs									1,781	1,906	1,648
Loss on extinguishment of debt										9,163	19,653
Subsidiary equity losses									221,311	105,551	111,871
Deferred income taxes									(232)	178	(3,821)
Other operating activities									(114)	(1,224)	(674)
Net cash provided by (used in) operating activities from continuing operations									(14,035)	(15,154)	(12,249)
Purchases of short-term investments											(39,323)
Redemptions of short-term investments										39,323	192,893
Investments and advances with subsidiaries									(45,097)	94,716	(19,595)
Net cash provided by (used in) investing activities from continuing operations									(45,097)	134,039	133,975
Financing activities:
Proceeds from issuance of convertible notes											237,750
Repurchase of convertible notes									(2,498)	(159,502)	(200,438)
Payment of debt issuance costs											(8,054)
Other financing activities									(4,227)	325	396
Net cash provided by (used in) financing activities from continuing operations									(6,725)	(159,177)	29,654
Increase (decrease) in cash, cash equivalents and restricted cash									(65,857)	(40,292)	151,380
Cash, cash equivalents and restricted cash at beginning of period				$ 120,922				$ 161,214	120,922	161,214	9,834
Cash, cash equivalents and restricted cash at end of period	55,065				120,922				55,065	120,922	161,214
Less: non-current restricted cash					2,599					2,599	101
Cash and cash equivalents at end of period	$ 55,065				$ 118,323				$ 55,065	$ 118,323	$ 161,113