0000950170-23-017152 | 10-Q | XBRL Viewer

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Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Mar. 31, 2023	Apr. 28, 2023
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Entity Interactive Data Current	Yes
Entity Central Index Key	0001537054
Document Fiscal Period Focus	Q1
Document Period End Date	Mar. 31, 2023
Document Fiscal Year Focus	2023
Entity Registrant Name	Gogo Inc.
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Common Stock, Shares Outstanding		128,586,011
Entity Address, Country	CO
Document Transition Report	false
Document Quarterly Report	true
Entity File Number	001-35975
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-1650905
Entity Address, Address Line One	105 Edgeview Dr
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Broomfield
Entity Address, Postal Zip Code	80021
City Area Code	303
Local Phone Number	301-3271
Entity Emerging Growth Company	false
Entity Shell Company	false
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

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 163,266	$ 150,550
Short-term investments	24,728	24,796
Cash, Cash Equivalents, and Short-Term Investments, Total	187,994	175,346
Accounts receivable, net of allowances of $1,532 and $1,778, respectively	46,698	54,210
Inventories	54,496	49,493
Prepaid expenses and other current assets	46,259	45,100
Total current assets	335,447	324,149
Non-current assets:
Property and equipment, net	104,685	104,595
Intangible assets, net	50,444	49,509
Operating lease right-of-use assets	73,468	75,261
Other non-current assets, net of allowances of $487 and $501, respectively	34,478	43,355
Deferred income taxes	160,716	162,657
Total non-current assets	423,791	435,377
Total assets	759,238	759,526
Current liabilities:
Accounts payable	14,487	13,646
Accrued liabilities	49,300	60,056
Deferred revenue	2,357	3,418
Current portion of long-term debt	7,250	7,250
Total current liabilities	73,394	84,370
Non-current liabilities:
Long-term debt	688,991	690,173
Non-current operating lease liabilities	77,265	79,241
Other non-current liabilities	7,731	7,611
Total non-current liabilities	773,987	777,025
Total liabilities	847,381	861,395
Commitments and contingencies (Note 11)
Stockholders’ deficit
Common stock, par value $0.0001 per share; 500,000,000 shares authorized at March 31, 2023 and December 31, 2022; 137,276,484 and 136,531,362 shares issued at March 31, 2023 and December 31, 2022, respectively; and 128,585,935 and 127,840,813 shares outstanding at March 31, 2023 and December 31, 2022, respectively	14	14
Additional paid-in capital	1,386,295	1,385,933
Accumulated other comprehensive income	23,043	30,128
Treasury stock, at cost	(158,375)	(158,375)
Accumulated deficit	(1,339,120)	(1,359,569)
Total stockholders’ deficit	(88,143)	(101,869)
Total liabilities and stockholders’ deficit	$ 759,238	$ 759,526

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowances on accounts receivable	$ 1,532	$ 1,778
Other non-current assets, net of allowances	$ 487	$ 501
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	137,276,484	136,531,362
Common stock, shares outstanding	128,585,935	127,840,813

Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue:
Total revenue	$ 98,597	$ 92,750
Operating expenses:
Cost of service revenue (exclusive of amounts shown below)	16,797	14,634
Cost of equipment revenue (exclusive of amounts shown below)	18,126	14,281
Engineering, design and development	7,879	5,406
Sales and marketing	6,877	6,231
General and administrative	14,199	13,458
Depreciation and amortization	2,791	3,791
Total operating expenses	66,669	57,801
Operating income	31,928	34,949
Other expense (income):
Interest income	(1,916)	(47)
Interest expense	8,976	10,889
Other expense (income), net	31	(26)
Total other expense	7,091	10,816
Income before income taxes	24,837	24,133
Income tax provision	4,388	1,937
Net income	$ 20,449	$ 22,196
Net income attributable to common stock per share
Basic	$ 0.16	$ 0.20
Diluted	$ 0.15	$ 0.18
Weighted average number of shares:
Basic	129,136	111,414
Diluted	133,602	134,095
Service [Member]
Revenue:
Total revenue	$ 78,499	$ 70,667
Product [Member]
Revenue:
Total revenue	$ 20,098	$ 22,083

Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 20,449	$ 22,196
Other comprehensive income (loss), net of tax
Currency translation adjustments, net of tax	75	111
Cash flow hedges:
Amount recognized in other comprehensive income (loss)	(2,439)	16,053
Less: income (loss) realized and reclassified to earnings	4,721	(8)
Changes in fair value of cash flow hedges	(7,160)	16,061
Other comprehensive income (loss), net of tax	(7,085)	16,172
Comprehensive income	$ 13,364	$ 38,368

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating activities:
Net income	$ 20,449	$ 22,196
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	2,791	3,791
Loss on asset disposals, abandonments and write-downs	107	14
Provision for expected credit losses	93	259
Deferred income taxes	4,273	1,887
Stock-based compensation expense	5,041	4,007
Amortization of deferred financing costs and interest rate caps	764	947
Accretion of debt discount	108	115
Changes in operating assets and liabilities:
Accounts receivable	7,405	(4,571)
Inventories	(5,003)	(2,491)
Prepaid expenses and other current assets	(8,632)	392
Contract assets	557	(2,407)
Accounts payable	1,191	(857)
Accrued liabilities	(9,620)	(5,926)
Deferred revenue	(1,054)	(226)
Accrued interest	130	1,349
Other non-current assets and liabilities	(86)	(613)
Net cash provided by operating activities	18,514	17,866
Investing activities:
Purchases of property and equipment	(3,112)	(7,598)
Acquisition of intangible assets—capitalized software	(1,484)	(1,457)
Proceeds from interest rate caps	6,087	0
Redemptions of short-term investments	24,796	0
Purchases of short-term investments	(24,728)	0
Net cash provided by (used in) investing activities	1,559	(9,055)
Financing activities:
Payments on term loan	(1,813)	(1,813)
Payments on finance leases	(57)	(43)
Stock-based compensation activity	(5,575)	(23)
Net cash used in financing activities	(7,445)	(1,879)
Effect of exchange rate changes on cash	88	(16)
Increase (decrease) in cash, cash equivalents and restricted cash	12,716	6,916
Cash, cash equivalents and restricted cash at beginning of period	150,880	146,268
Cash, cash equivalents and restricted cash at end of period	163,596	153,184
Less: current restricted cash	0	25
Less: non-current restricted cash	330	330
Cash and cash equivalents at end of period	163,266	152,829
Supplemental Cash Flow Information:
Cash paid for interest	15,014	8,577
Cash paid for taxes	12	0
Non-cash investing activities:
Purchases of property and equipment in current liabilities	$ 9,973	$ 7,993

Unaudited Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated Deficit [Member]	Treasury Stock [Member]
Beginning Balance at Dec. 31, 2021	$ (320,154)	$ 11	$ 1,258,477	$ 1,789	$ (1,451,628)	$ (128,803)
Beginning Balance, Shares at Dec. 31, 2021		110,791,954				6,615,449
Net income	22,196				22,196
Currency translation adjustments, net of tax	111			111
Fair value adjustments of cash flow hedges, net of tax	16,061			16,061
Stock-based compensation expense	4,007		4,007
Issuance of common stock upon exercise of stock options	1,106		1,106
Issuance of common stock upon exercise of stock options, shares		423,583
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares		555,234
Tax withholding related to vesting of restricted stock units	(4,516)		(4,516)
Issuance of common stock in connection with employee stock purchase plan	149		149
Issuance of common stock in connection with employee stock purchase plan, Shares		13,446
Ending Balance at Mar. 31, 2022	(281,040)	$ 11	1,259,223	17,961	(1,429,432)	$ (128,803)
Ending Balance, Shares at Mar. 31, 2022		111,784,217				6,615,449
Beginning Balance at Dec. 31, 2022	(101,869)	$ 14	1,385,933	30,128	(1,359,569)	$ (158,375)
Beginning Balance, Shares at Dec. 31, 2022		127,840,813				8,690,549
Net income	20,449				20,449
Currency translation adjustments, net of tax	75			75
Fair value adjustments of cash flow hedges, net of tax	(7,160)			(7,160)
Stock-based compensation expense	5,041		5,041
Issuance of common stock upon exercise of stock options	$ 179		179
Issuance of common stock upon exercise of stock options, shares	68,520	68,520
Issuance of common stock upon vesting of restricted stock units and restricted stock awards, Shares		664,020
Tax withholding related to vesting of restricted stock units	$ (5,037)		(5,037)
Issuance of common stock in connection with employee stock purchase plan	179		179
Issuance of common stock in connection with employee stock purchase plan, Shares		12,582
Ending Balance at Mar. 31, 2023	$ (88,143)	$ 14	$ 1,386,295	$ 23,043	$ (1,339,120)	$ (158,375)
Ending Balance, Shares at Mar. 31, 2023		128,585,935				8,690,549

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	1. Basis of Presentation The Business - Gogo Inc. (“Gogo,” the “Company,” “we,” “us,” or “our”) is the world’s largest provider of broadband connectivity services for the business aviation market. We have served this market for more than 25 years. Our mission is to enrich the lives of passengers and the efficiency of operators with the world’s best business aviation in-flight connectivity and customer support. We have always sought to provide the best connectivity for the business aviation market regardless of technology, and we have a successful history of doing so. Until recently, we focused primarily on business aviation aircraft in North America, which comprise approximately 63% of the worldwide business aviation fleet, and we are the leading provider of in-flight connectivity in that market. Gogo started in analogue air-to-ground (“ATG”) technology in the late 1990s, then, as analogue cellular backhaul disappeared, migrated to narrowband satellite connectivity in the early 2000s, then back to ATG with our digital broadband 3G and 4G networks beginning in 2010. We expect to commercially launch our fourth ATG network – Gogo 5G – in the fourth quarter of 2023. We also continue to provide narrowband satellite services to customers in North America and internationally through distribution agreements with satellite providers. In May 2022, in order to further serve our existing customers and expand our target market, we announced plans to expand our broadband offerings beyond ATG by launching the first global broadband service designed for business aviation (“Global Broadband”). The service will use an electronically steered antenna, specifically designed to address a broad range of business aviation aircraft, operating on a low earth orbit (“LEO”) satellite network and is targeted for commercial launch in the second half of 2024. Basis of Presentation - The accompanying Unaudited Condensed Consolidated Financial Statements and notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conformity with Article 10 of Regulation S-X promulgated under the Securities Act of 1933, as amended (the “Securities Act”). Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements and should be read in conjunction with our annual audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2023 (the “2022 10-K”). These Unaudited Condensed Consolidated Financial Statements reflect, in the opinion of management, all material adjustments (which include normal recurring adjustments) necessary to fairly state, in all material respects, our financial position, results of operations and cash flows for the periods presented. The results of operations and cash flows for the three-month period ended March 31, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2023. We had one class of common stock outstanding as of March 31, 2023 and December 31, 2022. Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities as of 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 various other assumptions believed to be reasonable under the circumstances. However, actual results could differ materially from those estimates. 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. The Rights Agreement is intended to reduce the likelihood of an ownership change under Section 382 of the Internal Revenue Code of 1986, as amended, 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. On April 27, 2023, the Board of Directors granted a request by the Vanguard Group Inc. (“Vanguard”) that it be deemed an “Exempt Person” under the Rights Agreement, subject to Vanguard satisfying certain ownership conditions, including that neither Vanguard Group Inc. nor any subsidiary or individual fund will have an economic interest of 4.9% or more of the Company’s common stock.

Revenue Recognition

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Remaining performance obligations

As of March 31, 2023, the aggregate amount of the transaction price in our contracts allocated to the remaining unsatisfied performance obligations (“RPO”) was approximately $91 million and excludes consideration from contracts that have an original duration of one year or less. Approximately $74 million of the RPO 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 contracts. The remaining $17 million of the RPO represents future equipment revenue that is expected to be recognized primarily within the next two years.

Disaggregation of revenue

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


	For the Three Months Ended March 31,
	2023		2022
Service revenue
Connectivity	$	77,246	$	69,495
Entertainment and other		1,253		1,172
Total service revenue	$	78,499	$	70,667
Equipment revenue
ATG	$	15,556	$	17,948
Narrowband satellite		2,651		3,206
Other		1,891		929
Total equipment revenue	$	20,098	$	22,083
Customer type
Aircraft owner/operator/service provider	$	78,499	$	70,667
OEM and aftermarket dealer		20,098		22,083
Total revenue	$	98,597	$	92,750

Contract balances

Our current and non-current contract asset balances totaled $19.3 million and $19.9 million as of March 31, 2023 and December 31, 2022, respectively. Contract assets represent the aggregate amount of revenue recognized in excess of billings primarily for certain sales programs.

Our current and non-current deferred revenue balances totaled $2.4 million and $3.4 million as of March 31, 2023 and December 31, 2022, respectively. Deferred revenue includes, among other things, prepayments for equipment and subscription connectivity products.

Major Customers

No customer accounted for more than 10% of revenue during the three-month periods ended March 31, 2023 and 2022 and no customer accounted for more than 10% of accounts receivable as of March 31, 2023 or December 31, 2022.

- 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 https://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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Paragraph 12
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-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 12
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

+ Details

Earnings Per Share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Earnings Per Share

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

The shares of common stock effectively repurchased in connection with the Forward Transactions (as defined and described in Note 6, “Long-Term Debt and Other Liabilities”) were considered participating securities requiring the two-class method to calculate basic and diluted earnings per share. Net earnings were allocated between common shares and participating securities on a one-to-one basis. The calculation of weighted average shares outstanding as of March 31, 2022 excluded approximately 0.6 million shares associated with the Forward Transactions. As of March 31, 2023, there were no outstanding shares associated with the Forward Transactions. Refer to Note 6, “Long-Term Debt and Other Liabilities,” for further information.

The diluted earnings per share calculations exclude the effect of stock options, deferred stock units, restricted stock units and convertible notes when the computation is anti-dilutive. For the three-month periods ended March 31, 2023 and 2022, the weighted average number of shares excluded from the computation was 0.6 million and 0.2 million, respectively.

The following table sets forth the computation of basic and diluted earnings per share for the three-month periods ended March 31, 2023 and 2022; however, for the reasons and periods described above, the shares of common stock associated with the Forward Transactions were excluded from the computation of basic earnings per share (in thousands, except per share amounts):


	For the Three Months Ended March 31,
	2023						2022
	Income (Numerator)		Shares (Denominator)		Per Share Amount		Income (Numerator)		Shares (Denominator)		Per Share Amount
Net income	$	20,449					$	22,196
Less: participation rights on Forward Transactions		—						113

Basic earnings per share
Undistributed income	$	20,449		129,136	$	0.16	$	22,083		111,414	$	0.20

Effect of dilutive securities
Stock-based compensation		—		4,466				—		5,550
2022 Convertible Notes		—		—				1,819		17,131

Diluted earnings per share
Undistributed income and assumed conversions	$	20,449		133,602	$	0.15	$	23,902		134,095	$	0.18

Earnings per share - basic					$	0.16					$	0.20
Earnings per share - diluted					$	0.15					$	0.18

Composition of Certain Balance Sheet Accounts

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Composition of Certain Balance Sheet Accounts

Inventories consist primarily of telecommunications systems and parts and are recorded at the lower of average cost or net realizable value. 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. As a result of our determination to participate in the FCC Reimbursement Program (as defined and described in Note 16, “Government Assistance”), the Company wrote down the net realizable value of certain inventory by approximately $1.3 million for the three-month period ended March 31, 2023. The write-off charge is included in Cost of equipment revenue in our Unaudited Condensed Consolidated Statements of Operations.

Inventories as of March 31, 2023 and December 31, 2022 were as follows (in thousands):


	March 31,		December 31,
	2023		2022
Work-in-process component parts	$	36,362	$	34,840
Finished goods		18,134		14,653
Total inventory	$	54,496	$	49,493

Prepaid expenses and other current assets as of March 31, 2023 and December 31, 2022 were as follows (in thousands):


	March 31,		December 31,
	2023		2022
Interest rate caps and receivable	$	27,113	$	28,496
Contract assets		6,796		6,494
Prepaid inventories		2,917		2,901
Other		9,433		7,209
Total prepaid expenses and other current assets	$	46,259	$	45,100

Property and equipment as of March 31, 2023 and December 31, 2022 were as follows (in thousands):


	March 31,			December 31,
	2023			2022
Office equipment, furniture, fixtures and other	$	17,457		$	17,242
Leasehold improvements		15,419			15,357
Network equipment		180,934			179,363
		213,810			211,962
Accumulated depreciation		(109,125	)		(107,367	)
Total property and equipment, net	$	104,685		$	104,595

Other non-current assets as of March 31, 2023 and December 31, 2022 were as follows (in thousands):


	March 31,		December 31,
	2023		2022
Contract assets, net of allowances of $487 and $501, respectively	$	12,530	$	13,376
Interest rate caps		17,639		25,578
Revolving credit facility deferred financing costs		1,338		1,445
Other		2,971		2,956
Total other non-current assets	$	34,478	$	43,355

Accrued liabilities as of March 31, 2023 and December 31, 2022 were as follows (in thousands):


	March 31,		December 31,
	2023		2022
Accrued interest	$	10,008	$	9,878
Operating leases		9,445		9,094
Employee compensation and benefits		8,502		19,235
Network equipment		8,434		8,748
Warranty reserve		2,800		2,300
Taxes		2,272		2,282
Other		7,839		8,519
Total accrued liabilities	$	49,300	$	60,056

Intangible Assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Our intangible assets are comprised of both indefinite-lived and finite-lived intangible assets. Intangible assets with indefinite lives are not amortized; rather, they are reviewed for impairment at least annually or whenever events or circumstances indicate the carrying value of the asset may not be recoverable. We perform our annual impairment test of our indefinite-lived intangible assets during the fourth quarter of each fiscal year, and the results from the test performed in the fourth quarter of 2022 indicated no impairment. We also reevaluate the useful life of indefinite-lived intangible assets each reporting period to determine whether events and circumstances continue to support an indefinite useful life.

As of both March 31, 2023 and December 31, 2022, our goodwill balance was $0.6 million.

Our intangible assets, other than goodwill, as of March 31, 2023 and December 31, 2022 were as follows (in thousands, except for weighted average remaining useful life):


		As of March 31, 2023			As of December 31, 2022
	Weighted Average Remaining Useful Life (in years)	Gross Carrying Amount	Accumulated Amortization	Net Carrying Amount	Gross Carrying Amount	Accumulated Amortization	Net Carrying Amount
Amortized intangible assets:
Software	6.5	$61,468	$(44,551)	$16,917	$59,932	$(43,950)	$15,982
Other intangible assets	8.0	624	—	624	624	—	624
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		76,897	(59,356)	17,541	75,361	(58,755)	16,606
Unamortized intangible assets:
FCC Licenses		32,283	—	32,283	32,283	—	32,283
Total intangible assets		$109,180	$(59,356)	$49,824	$107,644	$(58,755)	$48,889

Amortization expense was $0.6 million and $1.9 million for the three-month periods ended March 31, 2023 and 2022, respectively.

Amortization expense for the remainder of 2023, each of the next four years and thereafter is estimated to be as follows (in thousands):


		Amortization
Years ending December 31,		Expense
2023 (period from April 1 to December 31)		$1,918
2024		$2,566
2025		$2,460
2026		$2,361
2027		$2,141
Thereafter		$6,095

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

Long-Term Debt and Other Liabilities

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Long-Term Debt and Other Liabilities

Long-term debt as of March 31, 2023 and December 31, 2022 was as follows (in thousands):


	March 31,			December 31,
	2023			2022
Term Loan Facility	$	709,559		$	711,263
Less: deferred financing costs		(13,318	)		(13,840	)
Less: current portion of long-term debt		(7,250	)		(7,250	)
Total long-term debt	$	688,991		$	690,173

2021 Credit Agreement

On April 30, 2021, Gogo and Gogo Intermediate Holdings LLC (“GIH”) (a wholly owned subsidiary of Gogo) entered into a credit agreement (the “Original 2021 Credit Agreement,” and, as it may be amended, supplemented or otherwise modified from time to time, the “2021 Credit Agreement”) among Gogo, GIH, the lenders and issuing banks party thereto and Morgan Stanley Senior Funding, Inc., as administrative agent, which provides for (i) a term loan credit facility (the “Term Loan Facility”) in an aggregate principal amount of $725.0 million, issued with a discount of 0.5%, and (ii) a revolving credit facility (the “Revolving Facility” and together with the Term Loan Facility, the “Facilities”) of up to $100.0 million, which includes a letter of credit sub-facility.

On February 2, 2023, Gogo and GIH entered into an amendment to the Original 2021 Credit Agreement with Morgan Stanley Senior Funding, Inc., as administrative agent, which replaced all references in the Original 2021 Credit Agreement to LIBOR in respect of the applicable interest rates for the Facilities with an adjusted term secured overnight financing rate as administered by the Federal Reserve Bank of New York (“SOFR”), plus a credit spread adjustment recommended by the Alternative Reference Rates Committee.

The Term Loan Facility amortizes in nominal quarterly installments equal to one percent of the aggregate initial principal amount thereof per annum, with the remaining balance payable upon final maturity of the Term Loan Facility on April 30, 2028. There are no amortization payments under the Revolving Facility, and all borrowings under the Revolving Facility mature on April 30, 2026.

The Term Loan Facility bears annual interest at a floating rate measured by reference to, at GIH’s option, either (i) an adjusted term SOFR rate (subject to a floor of 0.75%) plus an applicable margin of 3.75% and a credit spread adjustment recommended by the Alternative Reference Rates Committee of 0.11%, 0.26% or 0.43% per annum based on 1-month, 3-month or 6-month term SOFR, respectively or (ii) an alternate base rate plus an applicable margin of 2.75%.

Loans outstanding under the Revolving Facility bear annual interest at a floating rate measured by reference to, at GIH’s option, either (i) an adjusted term SOFR rate (subject to a floor of 0.00%) plus an applicable margin ranging from 3.25% to 3.75% per annum depending on GIH’s senior secured first lien net leverage ratio and a credit spread adjustment recommended by the Alternative Reference Rates Committee of 0.11%, 0.26% or 0.43% per annum based on 1-month, 3-month or 6-month term SOFR, respectively or (ii) an alternate base rate plus an applicable margin ranging from 2.25% to 2.75% per annum depending on GIH’s senior secured first lien net leverage ratio. Additionally, unused commitments under the Revolving Facility are subject to a fee ranging from 0.25% to 0.50% per annum depending on GIH’s senior secured first lien net leverage ratio. As of March 31, 2023, the fee for unused commitments under the Revolving Facility was 0.25% and the applicable margin was 3.25%.

The Facilities may be prepaid at GIH’s option at any time without premium or penalty (other than customary breakage costs), subject to minimum principal payment amount requirements.

Subject to certain exceptions and de minimis thresholds, the Term Loan Facility is subject to mandatory prepayments in an amount equal to:

•

100% of the net cash proceeds of certain asset sales, insurance recovery and condemnation events, subject to reduction to 50% and 0% if specified senior secured first lien net leverage ratio targets are met;

•

100% of the net cash proceeds of certain debt offerings; and

•

50% of annual excess cash flow (as defined in the 2021 Credit Agreement), subject to reduction to 25% and 0% if specified senior secured first lien net leverage ratio targets are met.

The 2021 Credit Agreement contains customary representations and warranties and customary affirmative and negative covenants. The negative covenants include restrictions on, among other things: incurrence of indebtedness or issuance of disqualified equity interests; incurrence or existence of liens; consolidations or mergers; activities of Gogo and any subsidiary holding a license issued by the Federal Communications Commission; investments, loans, advances, guarantees or acquisitions; asset sales; dividends or other distributions on equity; purchase, redemption or retirement of capital stock; payment or redemption of certain junior indebtedness; entry into other agreements that restrict the ability to incur liens securing the Facilities; and amendment of organizational documents; in each case subject to customary exceptions.

The Revolving Facility includes a financial covenant set at a maximum senior secured first lien net leverage ratio of 7.50:1.00, which will apply if the outstanding amount of loans and unreimbursed letter of credit drawings thereunder at the end of any fiscal quarter exceeds 35% of the aggregate of all commitments thereunder.

The 2021 Credit Agreement contains customary events of default, which, if any of them occurred, would permit or require the principal, premium, if any, and interest on all of the then outstanding obligations under the Facilities to be due and payable immediately and the commitments under the Revolving Facility to be terminated.

The Revolving Facility is available for working capital and general corporate purposes of GIH and its subsidiaries and was undrawn as of March 31, 2023 and December 31, 2022.

As of March 31, 2023 and December 31, 2022, the outstanding principal amount of the Term Loan Facility was $712.3 million and $714.1 million, respectively, the unaccreted debt discount was $2.7 million and $2.8 million, respectively, and the net carrying amount was $709.6 million and $711.3 million, respectively. On May 3, 2023, the Company paid $100 million of the outstanding principal amount of the Term Loan Facility.

We paid approximately $19.7 million of loan origination and financing costs related to the Facilities which are being accounted for as deferred financing costs on our Unaudited Condensed Consolidated Balance Sheets and are amortized over the terms of the Facilities. Total amortization expense was $0.6 million and $0.7 million for the three-month periods ended March 31, 2023 and 2022, respectively, and is included in interest expense in our Unaudited Condensed Consolidated Statements of Operations. As of March 31, 2023 and December 31, 2022, the balance of unamortized deferred financing costs related to the Facilities was $14.7 million and $15.3 million, respectively.

On April 30, 2021, Gogo, GIH, and each direct and indirect wholly-owned U.S. restricted subsidiary of GIH (Gogo and such subsidiaries collectively, the “Guarantors”) entered into a guarantee agreement (the “Guarantee Agreement”) in favor of Morgan Stanley Senior Funding, Inc., as collateral agent (the “Collateral Agent”), whereby GIH and the Guarantors guarantee the obligations under the Facilities and certain other secured obligations as set forth in the Guarantee Agreement, and GIH and the Guarantors entered into a collateral agreement (the “Collateral Agreement”), in favor of the Collateral Agent, whereby GIH and the Guarantors grant a security interest in substantially all of their respective tangible and intangible assets (including the equity interests in each direct material wholly-owned U.S. restricted subsidiary owned by GIH or any Guarantor, and 65% of the equity interests in any non-U.S. subsidiary held directly by GIH or any Guarantor), subject to certain exceptions, to secure the obligations under the Facilities and certain other secured obligations as set forth in the Collateral Agreement.

2022 Convertible Notes

In 2018, we issued $237.8 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.

In 2021, $135.0 million aggregate principal amount of 2022 Convertible Notes was converted by holders and settled through the issuance of 24,353,006 shares of common stock.

In May 2022, the remaining $102.8 million aggregate principal amount of 2022 Convertible Notes was converted by holders into 17,131,332 shares of common stock. Thorndale Farm Private Equity Fund 2, LLC, an entity affiliated with our Chairman and Chief Executive Officer, held $8.0 million aggregate principal amount of 2022 Convertible Notes that was converted into 1,333,333 shares of common stock.

We incurred approximately $8.1 million of issuance costs related to the 2022 Convertible Notes that were amortized over the term of the 2022 Convertible Notes using the effective interest method. Total amortization expense was $0.3 million for the three-month period ended March 31, 2022 and is included in Interest expense in the Unaudited Condensed Consolidated Statements of Operations. As of December 31, 2022, there were no unamortized deferred financing costs related to the 2022 Convertible Notes. See Note 9, “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 was equivalent to an initial conversion price of approximately $6.00 per share of our common stock. Prior to conversion, the shares of common stock subject to conversion were considered in the diluted earnings per share calculations under the if-converted method if their impact was dilutive.

Forward Transactions

In connection with the issuance of our 3.75% Convertible Senior Notes due 2020 (the “2020 Convertible Notes”), we paid approximately $140.0 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. As a result of the Forward Transactions, total shareholders’ equity within our consolidated balance sheets was reduced by approximately $140.0 million. In March 2020, approximately 5.1 million shares of common stock were delivered to us in connection with the Forward Transactions. In April 2021, approximately 1.5 million shares of common stock were delivered to us in connection with the Amended and Restated Forward Transaction. In May 2022, the approximately 0.6 million shares that were remaining under the Amended and Restated Forward Transaction were delivered to us, and there are no additional prepaid forward stock repurchase transactions outstanding.

Derivative Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

We are exposed to interest rate risk on our variable rate borrowings. We currently use interest rate caps to manage our exposure to interest rate changes, and have designated these interest rate caps as cash flow hedges for accounting purposes. Accordingly, the earnings impact of the derivatives designated as cash flow hedges is recorded upon the recognition of the variable interest payments related to the hedged debt.

In May 2021, we purchased interest rate caps with an aggregate notional amount of $650.0 million for $8.6 million. The cost of the interest rate caps will be amortized to interest expense using the caplet method, from the effective date through termination date. We receive payments in the amount calculated pursuant to the caps for any period in which the three-month USD LIBOR rate increases beyond the applicable strike rate. The notional amounts of the interest rate caps periodically decrease over the life of the caps.

The notional amounts, strike rates and end dates of the cap agreements are as follows (notional amounts in thousands):


Start Date	End Date	Notional Amounts		Strike Rate
7/31/2021	7/31/2023	$	650,000		0.75	%
7/31/2023	7/31/2024		525,000		0.75	%
7/31/2024	7/31/2025		350,000		1.25	%
7/31/2025	7/31/2026		250,000		2.25	%
7/31/2026	7/31/2027		200,000		2.75	%

We record the effective portion of changes in the fair value of our cash flow hedges to other comprehensive income (loss), net of tax, and subsequently reclassify these amounts into earnings in the period during which the hedged transaction is recognized. The amounts included in accumulated other comprehensive income will be reclassified to interest expense in the event the hedges are no longer considered effective, in accordance with ASC 815, Derivatives and Hedging. No gains or losses of our cash flow hedges were considered to be ineffective and reclassified from other comprehensive income (loss) to earnings for the three-month periods ended March 31, 2023 and 2022. We estimate that approximately $2.2 million currently recorded in accumulated other comprehensive income (loss) will be recognized in earnings over the next 12 months. We assess the effectiveness of the hedges on an ongoing basis. Cash flows from interest rate caps are classified in the Unaudited Condensed Consolidated Statement of Cash Flows as investing activities.

For the three-month period ended March 31, 2023, we recorded a decrease in fair value on the interest rate caps of $7.3 million, net of tax of $2.3 million, and for the three-month period ended March 31, 2022, the increase in fair value was $16.1 million, net of tax of $5.3 million. Increases and decreases in fair value on interest rate caps above exclude amortization of the purchase price paid for the interest rate caps.

When derivatives are used, we are exposed to credit loss in the event of non-performance by the counterparties; however, non-performance is not anticipated. ASC 815, Derivatives and Hedging, requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the balance sheet. The fair values of the interest rate derivatives are based on quoted market prices for similar instruments from commercial banks (based on significant observable inputs - Level 2 inputs).

The following table presents the fair value of our interest rate derivatives included in the Unaudited Condensed Consolidated Balance Sheets for the periods presented (in thousands):


		March 31,		December 31,
Derivatives designated as hedging instruments	Balance sheet location	2023		2022
Current portion of interest rate caps	Prepaid expenses and other current assets	$	22,772	$	24,459
Non-current portion of interest rate caps	Other non-current assets	$	17,639	$	25,578

Fair Value Measurement

Our derivative assets and liabilities consist principally of interest rate caps, which are carried at fair value based on significant observable inputs (Level 2 inputs). Derivatives entered into by us are typically executed over-the-counter and are valued using discounted cash flows along with fair value models that primarily use market observable inputs. These models take into account a variety of factors including, where applicable, maturity, interest rate yield curves, and counterparty credit risks.

Interest Costs

3 Months Ended

Mar. 31, 2023

Text Block [Abstract]

Interest Costs

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

The following is a summary of our interest costs for the three-month periods ended March 31, 2023 and 2022 (in thousands):


	For the Three Months Ended March 31,
	2023			2022
Interest costs charged to expense	$	14,497		$	9,827
Amortization of deferred financing costs		630			939
Amortization of the purchase price of interest rate caps		134			8
Interest rate cap benefit		(6,393	)		—
Accretion of debt discount		108			115
Interest expense		8,976			10,889
Interest costs capitalized to property and equipment		497			40
Interest costs capitalized to software		157			97
Total interest costs	$	9,630		$	11,026

Leases

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Leases

10.

Leases

Operating and Financing Leases — We determine whether a contract contains a lease at contract inception. Lease liabilities are calculated using a discount rate based on our incremental borrowing rate at lease commencement. We have operating lease agreements primarily related to cell sites and office space. Certain cell site and office space leases have renewal option terms that have been deemed reasonably certain to be exercised. These renewal options extend a lease by up to 15 years. We recognize operating lease expense on a straight-line basis over the lease term. As of March 31, 2023, there were no significant leases which had not commenced.

The following is a summary of our lease expense included in the Unaudited Condensed Consolidated Statements of Operations (in thousands):


	For the Three Months Ended March 31,
	2023		2022
Operating lease cost	$	3,938	$	3,546
Financing lease cost:
Amortization of leased assets		39		38
Interest on lease liabilities		5		13
Total lease cost	$	3,982	$	3,597

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


	For the Three Months Ended March 31,
	2023			2022
Supplemental cash flow information
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows used in operating leases	$	3,969		$	3,496
Operating cash flows used in financing leases	$	5		$	13
Financing cash flows used in financing leases	$	57		$	43
Non-cash items:
Operating leases obtained	$	718		$	2,269
Financing leases obtained	$	—		$	—
Weighted average remaining lease term
Operating leases	8 years			9 years
Financing leases	1 year			1 year
Weighted average discount rate
Operating leases		6.7	%		6.9	%
Financing leases		16.6	%		17.9	%

Annual future minimum lease payments as of March 31, 2023 (in thousands):


Years ending December 31,	Operating Leases			Financing Leases
2023 (period from April 1 to December 31)	$	10,877		$	79
2024		15,256			4
2025		14,402			2
2026		14,229			—
2027		13,377			—
Thereafter		42,644			—
Total future minimum lease payments		110,785			85
Less: Amount representing interest		(24,075	)		(4	)
Present value of net minimum lease payments	$	86,710		$	81
Reported as of March 31, 2023
Accrued liabilities	$	9,445		$	76
Non-current operating lease liabilities		77,265			—
Other non-current liabilities		—			5
Total lease liabilities	$	86,710		$	81

Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

11.

Commitments and Contingencies

Contractual Commitments – We have agreements with various vendors under which we have remaining commitments to purchase hardware components and development services. Such commitments will become payable as we receive the hardware components, or as development services are provided.

In June 2022, we and Hughes entered into a supply and product support agreement (the “SPSA”), providing for our purchase from Hughes of airborne antennas for use on a LEO satellite network, and the performance by Hughes of services related thereto. Under the SPSA, we commit to purchase, over a seven-year period that will begin on completion of a project milestone currently expected to occur at the end of 2024, antennas with an estimated aggregate purchase price of approximately $170 million. During the contractual seven-year period, Hughes may not sell substantially similar equipment to other purchasers in our primary target market. In March 2023, we amended the SPSA, pursuant to which, we committed to purchase, over a seven-year period that will begin on completion of a project milestone currently expected to occur in mid-2025, additional equipment with an estimated aggregate purchase price of approximately $102 million.

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.

Derivative Litigation – On September 25, 2018 and September 26, 2018, two purported stockholders of the Company filed substantively identical derivative lawsuits in the Court, 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 then-current member of the Company’s Board of Directors, its former Chief Executive Officer and Chief Financial Officer, its then-current President, Commercial Aviation, and its current Chief Executive Officer and Chief Financial Officer. 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 plaintiffs seek to recover, on our behalf, an unspecified amount of damages from the individual defendants. The two lawsuits were consolidated and were stayed pending a final disposition of the motion to dismiss in the class action suit and remain stayed. In addition, a purported stockholder has sent a letter to the Company’s Board of Directors, dated June 21, 2021, demanding based on substantially the same allegations, that the Company sue certain current and former Officers for, inter alia, breach of fiduciary duty. The two derivative lawsuits and the litigation demand letter are collectively referred to herein as the “Derivative Matters” and the plaintiffs in the two derivative lawsuits and the purported stockholder who sent the litigation demand letter are collectively referred to herein as the “Stockholders.”

On January 5, 2023, following mediation, the defendants and the Stockholders entered into a Stipulation and Agreement of Settlement (the “Derivative Settlement”) under which the Company, in consideration of dismissal of the two derivative lawsuits with prejudice and a release of all claims asserted against the Company and the individual defendants in the Derivative Matters, will implement certain corporate governance initiatives and cause its D&O insurance carrier to pay the Stockholders’ attorneys’ fees. Under the terms of the Derivative Settlement, the defendants will not be required to pay any damages. We had accrued a liability for attorneys’ fees within Accrued liabilities and a corresponding receivable in Prepaid expenses and other current assets in the Unaudited Condensed Consolidated Balance Sheets as of December 21, 2022.

On February 1, 2023, the Court granted preliminary approval of the proposed Derivative Settlement, approved various notices to be disseminated to the Company’s stockholders and the schedule for dissemination. On April 11, 2023, the Court issued final judgment approving the Derivative Settlement. The Company released the accrued liability and corresponding receivable for attorneys’ fees as of March 31, 2023. Pursuant to the terms of the Derivative Settlement, the Company is required to implement certain governance changes by May 11, 2023.

SmartSky Litigation – On February 28, 2022, SmartSky Networks, LLC brought suit against Gogo Inc. and its subsidiary Gogo Business Aviation LLC in the U.S. District Court for the District of Delaware alleging that Gogo 5G infringes four patents owned by the plaintiff. On February 21, 2023, the plaintiff amended its complaint to allege that Gogo 5G infringes two additional patents recently issued to the plaintiff. The suit seeks an unspecified amount of compensatory damages as well as treble damages for alleged willful infringement and reimbursement of plaintiff's costs, disbursements and attorneys' fees. Under a schedule agreed upon by the parties, fact discovery and claim construction proceedings will be substantially completed by the end of 2023 or early 2024, and expert discovery by early-to-mid 2024, with dispositive motions to follow. A trial date has been scheduled for April 14, 2025. Also on February 28, 2022, the plaintiff filed a motion (the “PI Motion”) requesting that the Court preliminarily enjoin the Company from making, using, offering to sell or selling the Gogo 5G system. On September 26, 2022, the Court issued an order denying the PI Motion. The plaintiff has appealed the denial to the U.S. Court of Appeals for the Federal Circuit. Briefing for the appeal is complete and the appellate court scheduled the oral argument for June 5, 2023. We believe that the plaintiff’s claims are without merit and intend to continue to vigorously defend our position in the infringement suit and defend against the appeal. The outcomes of the appeal and the underlying litigation are 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.

Fair Value of Financial Assets and Liabilities

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

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 for identical assets or liabilities in active markets;

•

Level 2 - defined as observable inputs other than Level 1 inputs 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.

Refer to Note 7, “Derivative Instruments and Hedging Activities,” for fair value information relating to our interest rate caps.

Long-Term Debt:

As of March 31, 2023 and December 31, 2022, our only financial asset or liability disclosed but not measured at fair value is the Term Loan Facility, which is reflected on the Unaudited Condensed Consolidated Balance Sheets at cost. The fair value measurement is classified as Level 2 within the fair value hierarchy since it is based on quoted market prices of our instrument in markets that are not active. We estimated the fair value of the Term Loan Facility by calculating the upfront cash payment a market participant would require to assume the obligation. The upfront cash payment used in the calculation of fair value on our March 31, 2023 Unaudited Condensed Consolidated Balance Sheets, excluding any issuance costs, is the amount that a market participant would be willing to lend at such date 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 Term Loan Facility.

The fair value and carrying value of long-term debt as of March 31, 2023 and December 31, 2022 were as follows (in thousands):


	March 31, 2023					December 31, 2022
	Fair Value (1)		Carrying Value			Fair Value (1)		Carrying Value
Term Loan Facility	$	708,000	$	709,559	(2)	$	708,000	$	711,263	(2)

(1)

Fair value amounts are rounded to the nearest million.

(2)

Carrying value of the Term Loan Facility reflects the unaccreted debt discount of $2.7 million and $2.8 million as of March 31, 2023 and December 31, 2022, respectively. See Note 6, “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

Income Tax

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Income Tax

12.

Income Tax

The effective income tax rates for the three-month periods ended March 31, 2023 and 2022 were 17.7% and 8.0%, respectively. For the three-month period ended March 31, 2023, our effective income tax rate was lower than the U.S. federal statutory rate of 21% primarily due to a partial release of the valuation allowance on our deferred income tax assets and tax benefits for research and development tax credits and stock-based compensation, partially offset by state income taxes. For the three-month period ended March 31, 2022, our effective income tax rate was lower than the U.S. federal statutory rate of 21% primarily due to tax benefits for stock-based compensation and a partial release of the valuation allowance on our deferred income tax assets.

We regularly assess the need for a valuation allowance related to our deferred income tax assets to determine, based on the weight of the available positive and negative evidence, whether it is more likely than not that some or all of such deferred assets will not be realized. In our assessments, the Company considers recent financial operating results, the scheduled expiration of our net operating losses, potential sources of taxable income, the reversal of existing taxable differences, taxable income in prior carryback years, if permitted under tax law, and tax planning strategies. The remaining valuation allowance is still required for deferred income tax assets related to certain state and foreign net operating losses (“NOLs”), capital losses, and the Section 163(j) interest limitation carryforward as it was more likely than not as of March 31, 2023 that these deferred income tax assets will not be realized. However, if we continue to sustain our current operating performance, additional reversals of our valuation allowance could occur in fiscal year 2023.

We are subject to taxation and file income tax returns in the United States federal jurisdiction and many states and Canada. With few exceptions, as of March 31, 2023 we are no longer subject to U.S. federal, state, local or foreign examinations by tax authorities for years before 2019.

We record penalties and interest relating to uncertain tax positions in the income tax provision line item in the Unaudited Condensed Consolidated Statements of Operations. No penalties or interest related to uncertain tax positions were recorded for the three-month periods ended March 31, 2023 and 2022. As of March 31, 2023 and December 31, 2022, we did not have a liability recorded for interest or potential penalties.

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

Stock-Based Compensation and 401(k) Plan

3 Months Ended

Mar. 31, 2023

Text Block [Abstract]

Stock-Based Compensation and 401(k) Plan

13.

Stock-Based Compensation and 401(k) Plan

Stock-Based Compensation — As of March 31, 2023, we maintained three stock-based incentive compensation plans (“Stock Plans”), as well as an Employee Stock Purchase Plan (“ESPP”). See Note 14, “Stock-Based Compensation and 401(k) Plan,” in our 2022 10-K for further information regarding these plans. The majority of our equity grants are awarded on an annual basis.

For the three-month period ended March 31, 2023, no options to purchase shares of common stock were granted, options to purchase 68,520 shares of common stock were exercised, 1,875 options to purchase shares of common stock were forfeited and no options to purchase shares of common stock expired.

For the three-month period ended March 31, 2023, 1,346,428 Restricted Stock Units (“RSUs”) were granted, 1,013,614 RSUs vested and 40,561 RSUs were forfeited. The fair value of the RSUs granted during the three-month period ended March 31, 2023 was approximately $22.3 million, which will generally be recognized over a period of four years.

For the three-month period ended March 31, 2023, 31,804 deferred stock units were granted and 55,999 vested. The fair value of the deferred stock units granted during the three-month period ended March 31, 2023 was approximately $0.5 million, which was recognized immediately.

For the three-month period ended March 31, 2023, 12,582 shares of common stock were issued under the ESPP.

The following is a summary of our stock-based compensation expense by operating expense line in the Unaudited Condensed Consolidated Statements of Operations (in thousands):


	For the Three Months Ended March 31,
	2023		2022
Cost of service revenue	$	343	$	186
Cost of equipment revenue		287		208
Engineering, design and development		754		494
Sales and marketing		738		549
General and administrative		2,919		2,570
Total stock-based compensation expense	$	5,041	$	4,007

401(k) Plan — Under our 401(k) plan, all employees who are eligible to participate are entitled to make tax-deferred contributions, subject to Internal Revenue Service limitations. We match 100% of the employee’s first 4% of contributions made, subject to annual limitations. Our matching contributions were $0.5 million for both three-month periods ended March 31, 2023 and 2022.

Research and Development Costs	3 Months Ended
Research and Development Costs	Mar. 31, 2023
Research and Development [Abstract]
Research and Development Costs	14. Research and Development Costs Expenditures for research and development are charged to expense as incurred and totaled $7.9 million and $5.4 million, respectively, during the three-month periods ended March 31, 2023 and 2022. Research and development costs are reported as Engineering, design and development expenses in our Unaudited Condensed Consolidated Statements of Operations.

Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2023

AOCI Attributable to Parent [Abstract]

Accumulated Other Comprehensive Income (Loss)

15.

Accumulated Other Comprehensive Income (Loss)

The following is a summary of changes in accumulated other comprehensive income (loss) by component (in thousands):


				Change in
	Currency			Fair Value of
	Translation			Cash Flow
	Adjustment			Hedges			Total
Balance at January 1, 2023	$	(1,225	)	$	31,353		$	30,128
Other comprehensive income (loss) before reclassifications		75			(2,439	)		(2,364	)
Less: income realized and reclassified to earnings		—			4,721			4,721
Net current period comprehensive income (loss)		75			(7,160	)		(7,085	)
Balance at March 31, 2023	$	(1,150	)	$	24,193		$	23,043


				Change in
	Currency			Fair Value of
	Translation			Cash Flow
	Adjustment			Hedges			Total
Balance at January 1, 2022	$	(960	)	$	2,749		$	1,789
Other comprehensive income (loss) before reclassifications		111			16,053			16,164
Less: income realized and reclassified to earnings		—			(8	)		(8	)
Net current period comprehensive income (loss)		111			16,061			16,172
Balance at March 31, 2022	$	(849	)	$	18,810		$	17,961

Government Assistance

3 Months Ended

Mar. 31, 2023

Government Assistance [Abstract]

Government Assistance

16.

Government Assistance

Federal Communications Commission's ("FCC") Secure and Trusted Communications Networks Reimbursement Program (the “FCC Reimbursement Program”)

On July 15, 2022, the Company was notified that it was approved for participation in the FCC Reimbursement Program, designed to reimburse providers of advanced communications services for reasonable costs incurred in the required removal, replacement, and disposal of covered communications equipment or services, that have been deemed to pose a national security risk, from their networks. Pursuant to the FCC Reimbursement Program, the FCC approved up to approximately $334 million in reimbursements to the Company to cover documented and approved costs to (i) remove and securely destroy all ZTE communications equipment and services in the Company’s terrestrial U.S. networks and replace such equipment and (ii) remove and replace certain equipment installed on aircraft operated by the Company’s ATG customers that is not compatible with the terrestrial equipment that will replace ZTE equipment. Due to a shortfall in the amount appropriated by Congress to fund the FCC Reimbursement Program, approximately $132 million of the approved amount is currently allocated to the Company under the program. If Congress appropriates additional funds for this purpose, the allocations of the Company and other approved applicants will be increased pro rata. Program participants are subject to a number of conditions and requirements under the FCC’s rules including a requirement that they submit their first reimbursement request by July 15, 2023 and certify that they have developed a plan to permanently remove, replace and dispose of covered equipment or services within one year following the first reimbursement request. The rules permit participants to petition the FCC for one or more six-month extensions of the completion deadline. While the Company reserves the right not to proceed as it has until July 15, 2023 to submit its first reimbursement claim, at the end of the first quarter of 2023, the Company determined that it will participate in the partially funded FCC Reimbursement Program. We are currently assessing the impact of this program on our financial statements and as of March 31, 2023, we have not recorded a receivable from the FCC related to the FCC Reimbursement Program.

Basis of Presentation (Policies)	3 Months Ended
Basis of Presentation (Policies)	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation - The accompanying Unaudited Condensed Consolidated Financial Statements and notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conformity with Article 10 of Regulation S-X promulgated under the Securities Act of 1933, as amended (the “Securities Act”). Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements and should be read in conjunction with our annual audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022 as filed with the Securities and Exchange Commission (the “SEC”) on February 28, 2023 (the “2022 10-K”). These Unaudited Condensed Consolidated Financial Statements reflect, in the opinion of management, all material adjustments (which include normal recurring adjustments) necessary to fairly state, in all material respects, our financial position, results of operations and cash flows for the periods presented. The results of operations and cash flows for the three-month period ended March 31, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2023. We had one class of common stock outstanding as of March 31, 2023 and December 31, 2022.
Use of Estimates	Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities as of 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 various other assumptions believed to be reasonable under the circumstances. However, actual results could differ materially from those estimates. 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. The Rights Agreement is intended to reduce the likelihood of an ownership change under Section 382 of the Internal Revenue Code of 1986, as amended, 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. On April 27, 2023, the Board of Directors granted a request by the Vanguard Group Inc. (“Vanguard”) that it be deemed an “Exempt Person” under the Rights Agreement, subject to Vanguard satisfying certain ownership conditions, including that neither Vanguard Group Inc. nor any subsidiary or individual fund will have an economic interest of 4.9% or more of the Company’s common stock.

Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Summary of Revenue Disaggregated by Category

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


	For the Three Months Ended March 31,
	2023		2022
Service revenue
Connectivity	$	77,246	$	69,495
Entertainment and other		1,253		1,172
Total service revenue	$	78,499	$	70,667
Equipment revenue
ATG	$	15,556	$	17,948
Narrowband satellite		2,651		3,206
Other		1,891		929
Total equipment revenue	$	20,098	$	22,083
Customer type
Aircraft owner/operator/service provider	$	78,499	$	70,667
OEM and aftermarket dealer		20,098		22,083
Total revenue	$	98,597	$	92,750

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share


	For the Three Months Ended March 31,
	2023						2022
	Income (Numerator)		Shares (Denominator)		Per Share Amount		Income (Numerator)		Shares (Denominator)		Per Share Amount
Net income	$	20,449					$	22,196
Less: participation rights on Forward Transactions		—						113

Basic earnings per share
Undistributed income	$	20,449		129,136	$	0.16	$	22,083		111,414	$	0.20

Effect of dilutive securities
Stock-based compensation		—		4,466				—		5,550
2022 Convertible Notes		—		—				1,819		17,131

Diluted earnings per share
Undistributed income and assumed conversions	$	20,449		133,602	$	0.15	$	23,902		134,095	$	0.18

Earnings per share - basic					$	0.16					$	0.20
Earnings per share - diluted					$	0.15					$	0.18

Inventories (Tables)

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

Schedule of Components of Inventories

Inventories as of March 31, 2023 and December 31, 2022 were as follows (in thousands):


	March 31,		December 31,
	2023		2022
Work-in-process component parts	$	36,362	$	34,840
Finished goods		18,134		14,653
Total inventory	$	54,496	$	49,493

Composition of Certain Balance Sheet Accounts (Tables)

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Components of Inventories

Inventories as of March 31, 2023 and December 31, 2022 were as follows (in thousands):


	March 31,		December 31,
	2023		2022
Work-in-process component parts	$	36,362	$	34,840
Finished goods		18,134		14,653
Total inventory	$	54,496	$	49,493

Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets as of March 31, 2023 and December 31, 2022 were as follows (in thousands):


	March 31,		December 31,
	2023		2022
Interest rate caps and receivable	$	27,113	$	28,496
Contract assets		6,796		6,494
Prepaid inventories		2,917		2,901
Other		9,433		7,209
Total prepaid expenses and other current assets	$	46,259	$	45,100

Schedule of Property and Equipment

Property and equipment as of March 31, 2023 and December 31, 2022 were as follows (in thousands):


	March 31,			December 31,
	2023			2022
Office equipment, furniture, fixtures and other	$	17,457		$	17,242
Leasehold improvements		15,419			15,357
Network equipment		180,934			179,363
		213,810			211,962
Accumulated depreciation		(109,125	)		(107,367	)
Total property and equipment, net	$	104,685		$	104,595

Schedule of Other Non-Current Assets

Other non-current assets as of March 31, 2023 and December 31, 2022 were as follows (in thousands):


	March 31,		December 31,
	2023		2022
Contract assets, net of allowances of $487 and $501, respectively	$	12,530	$	13,376
Interest rate caps		17,639		25,578
Revolving credit facility deferred financing costs		1,338		1,445
Other		2,971		2,956
Total other non-current assets	$	34,478	$	43,355

Schedule of Accrued Liabilities

Accrued liabilities as of March 31, 2023 and December 31, 2022 were as follows (in thousands):


	March 31,		December 31,
	2023		2022
Accrued interest	$	10,008	$	9,878
Operating leases		9,445		9,094
Employee compensation and benefits		8,502		19,235
Network equipment		8,434		8,748
Warranty reserve		2,800		2,300
Taxes		2,272		2,282
Other		7,839		8,519
Total accrued liabilities	$	49,300	$	60,056

Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets, Other than Goodwill

Our intangible assets, other than goodwill, as of March 31, 2023 and December 31, 2022 were as follows (in thousands, except for weighted average remaining useful life):


		As of March 31, 2023			As of December 31, 2022
	Weighted Average Remaining Useful Life (in years)	Gross Carrying Amount	Accumulated Amortization	Net Carrying Amount	Gross Carrying Amount	Accumulated Amortization	Net Carrying Amount
Amortized intangible assets:
Software	6.5	$61,468	$(44,551)	$16,917	$59,932	$(43,950)	$15,982
Other intangible assets	8.0	624	—	624	624	—	624
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		76,897	(59,356)	17,541	75,361	(58,755)	16,606
Unamortized intangible assets:
FCC Licenses		32,283	—	32,283	32,283	—	32,283
Total intangible assets		$109,180	$(59,356)	$49,824	$107,644	$(58,755)	$48,889

Summary of Amortization Expenses

Amortization expense for the remainder of 2023, each of the next four years and thereafter is estimated to be as follows (in thousands):


		Amortization
Years ending December 31,		Expense
2023 (period from April 1 to December 31)		$1,918
2024		$2,566
2025		$2,460
2026		$2,361
2027		$2,141
Thereafter		$6,095

Long-Term Debt and Other Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

Long-term debt as of March 31, 2023 and December 31, 2022 was as follows (in thousands):


	March 31,			December 31,
	2023			2022
Term Loan Facility	$	709,559		$	711,263
Less: deferred financing costs		(13,318	)		(13,840	)
Less: current portion of long-term debt		(7,250	)		(7,250	)
Total long-term debt	$	688,991		$	690,173

- 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.

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+ Details

Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts Strike Rates and End Dates of the Cap Agreements

The notional amounts, strike rates and end dates of the cap agreements are as follows (notional amounts in thousands):


Start Date	End Date	Notional Amounts		Strike Rate
7/31/2021	7/31/2023	$	650,000		0.75	%
7/31/2023	7/31/2024		525,000		0.75	%
7/31/2024	7/31/2025		350,000		1.25	%
7/31/2025	7/31/2026		250,000		2.25	%
7/31/2026	7/31/2027		200,000		2.75	%

Schedule of Derivative Assets at Fair Value

The following table presents the fair value of our interest rate derivatives included in the Unaudited Condensed Consolidated Balance Sheets for the periods presented (in thousands):


		March 31,		December 31,
Derivatives designated as hedging instruments	Balance sheet location	2023		2022
Current portion of interest rate caps	Prepaid expenses and other current assets	$	22,772	$	24,459
Non-current portion of interest rate caps	Other non-current assets	$	17,639	$	25,578

Interest Costs (Tables)

3 Months Ended

Mar. 31, 2023

Text Block [Abstract]

Summary of Interest Costs

The following is a summary of our interest costs for the three-month periods ended March 31, 2023 and 2022 (in thousands):


	For the Three Months Ended March 31,
	2023			2022
Interest costs charged to expense	$	14,497		$	9,827
Amortization of deferred financing costs		630			939
Amortization of the purchase price of interest rate caps		134			8
Interest rate cap benefit		(6,393	)		—
Accretion of debt discount		108			115
Interest expense		8,976			10,889
Interest costs capitalized to property and equipment		497			40
Interest costs capitalized to software		157			97
Total interest costs	$	9,630		$	11,026

Leases (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Lease expense included in the unaudited condensed consolidated statements of operations

The following is a summary of our lease expense included in the Unaudited Condensed Consolidated Statements of Operations (in thousands):


	For the Three Months Ended March 31,
	2023		2022
Operating lease cost	$	3,938	$	3,546
Financing lease cost:
Amortization of leased assets		39		38
Interest on lease liabilities		5		13
Total lease cost	$	3,982	$	3,597

Schedule includes other information about leases

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


	For the Three Months Ended March 31,
	2023			2022
Supplemental cash flow information
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows used in operating leases	$	3,969		$	3,496
Operating cash flows used in financing leases	$	5		$	13
Financing cash flows used in financing leases	$	57		$	43
Non-cash items:
Operating leases obtained	$	718		$	2,269
Financing leases obtained	$	—		$	—
Weighted average remaining lease term
Operating leases	8 years			9 years
Financing leases	1 year			1 year
Weighted average discount rate
Operating leases		6.7	%		6.9	%
Financing leases		16.6	%		17.9	%

Annual future minimum lease payments

Annual future minimum lease payments as of March 31, 2023 (in thousands):


Years ending December 31,	Operating Leases			Financing Leases
2023 (period from April 1 to December 31)	$	10,877		$	79
2024		15,256			4
2025		14,402			2
2026		14,229			—
2027		13,377			—
Thereafter		42,644			—
Total future minimum lease payments		110,785			85
Less: Amount representing interest		(24,075	)		(4	)
Present value of net minimum lease payments	$	86,710		$	81
Reported as of March 31, 2023
Accrued liabilities	$	9,445		$	76
Non-current operating lease liabilities		77,265			—
Other non-current liabilities		—			5
Total lease liabilities	$	86,710		$	81

Fair Value of Financial Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

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

The fair value and carrying value of long-term debt as of March 31, 2023 and December 31, 2022 were as follows (in thousands):


	March 31, 2023					December 31, 2022
	Fair Value (1)		Carrying Value			Fair Value (1)		Carrying Value
Term Loan Facility	$	708,000	$	709,559	(2)	$	708,000	$	711,263	(2)

Stock-Based Compensation and 401(k) Plan (Tables)

3 Months Ended

Mar. 31, 2023

Text Block [Abstract]

Summary of Stock-Based Compensation Expense by Operating Expense

The following is a summary of our stock-based compensation expense by operating expense line in the Unaudited Condensed Consolidated Statements of Operations (in thousands):


	For the Three Months Ended March 31,
	2023		2022
Cost of service revenue	$	343	$	186
Cost of equipment revenue		287		208
Engineering, design and development		754		494
Sales and marketing		738		549
General and administrative		2,919		2,570
Total stock-based compensation expense	$	5,041	$	4,007

Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2023

AOCI Attributable to Parent [Abstract]

Summary of changes in accumulated other comprehensive income (loss)

The following is a summary of changes in accumulated other comprehensive income (loss) by component (in thousands):


				Change in
	Currency			Fair Value of
	Translation			Cash Flow
	Adjustment			Hedges			Total
Balance at January 1, 2023	$	(1,225	)	$	31,353		$	30,128
Other comprehensive income (loss) before reclassifications		75			(2,439	)		(2,364	)
Less: income realized and reclassified to earnings		—			4,721			4,721
Net current period comprehensive income (loss)		75			(7,160	)		(7,085	)
Balance at March 31, 2023	$	(1,150	)	$	24,193		$	23,043


				Change in
	Currency			Fair Value of
	Translation			Cash Flow
	Adjustment			Hedges			Total
Balance at January 1, 2022	$	(960	)	$	2,749		$	1,789
Other comprehensive income (loss) before reclassifications		111			16,053			16,164
Less: income realized and reclassified to earnings		—			(8	)		(8	)
Net current period comprehensive income (loss)		111			16,061			16,172
Balance at March 31, 2022	$	(849	)	$	18,810		$	17,961

Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2023

Summary of Stock-Based Compensation Expense by Operating Expense

The following is a summary of our stock-based compensation expense by operating expense line in the Unaudited Condensed Consolidated Statements of Operations (in thousands):


	For the Three Months Ended March 31,
	2023		2022
Cost of service revenue	$	343	$	186
Cost of equipment revenue		287		208
Engineering, design and development		754		494
Sales and marketing		738		549
General and administrative		2,919		2,570
Total stock-based compensation expense	$	5,041	$	4,007

Basis of Presentation - Additional Information (Detail) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023 USD ($) Classofcommonstock	Dec. 31, 2022 USD ($) Classofcommonstock	Sep. 23, 2020
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Number of classes of common stock outstanding \| Classofcommonstock	1	1
Operating Lease, Liability	$ 86,710
Right of use assets	$ 73,468	$ 75,261
Vanguard Group Inc [Member]
Schedule Of Summary Of Significant Accounting Policies [Line Items]
Ownership interest	4.90%		4.90%

Revenue Recognition - Additional Information (Detail) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2023 USD ($) Customer	Mar. 31, 2022 Customer	Dec. 31, 2022 USD ($) Customer
Revenue From Contracts With Customers [Line Items]
Transaction price allocated to remaining performance obligations	$ 91.0
Equipment revenue	$ 17.0
Future equipment revenue recognition period	two years
Number of customers meeting concentration risk threshold \| Customer	0	0	0
Airline [Member] \| Revenue [Member] \| Customer Concentration Risk [Member]
Revenue From Contracts With Customers [Line Items]
Contract assets, current and non-current	$ 19.3		$ 19.9
Percentage of benchmark	10.00%	10.00%
Airline [Member] \| Accounts Receivable [Member] \| Customer Concentration Risk [Member]
Revenue From Contracts With Customers [Line Items]
Percentage of benchmark	10.00%		10.00%
Accounting Standards Update 2014-09 [Member]
Revenue From Contracts With Customers [Line Items]
Deferred revenue, current and non-current	$ 2.4		$ 3.4
Connectivity And Entertainment Service Revenues
Revenue From Contracts With Customers [Line Items]
Transaction price allocated to remaining performance obligations	$ 74.0

Revenue Recognition - Summary of Revenue Disaggregated by Category (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation Of Revenue [Line Items]
Disaggregation of revenue	$ 98,597	$ 92,750
Aircraft Owner Operator [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenue	78,499	70,667
OEM and Aftermarket Dealer [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenue	20,098	22,083
Cost of Service Revenue [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenue	78,499	70,667
Cost of Equipment Revenue [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenue	20,098	22,083
Connectivity [Member] \| Cost of Service Revenue [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenue	77,246	69,495
Entertainment And Other [Member] \| Cost of Service Revenue [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenue	1,253	1,172
A T G \| Cost of Equipment Revenue [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenue	15,556	17,948
Other Product Or Service \| Cost of Equipment Revenue [Member]
Disaggregation Of Revenue [Line Items]
Disaggregation of revenue	$ 1,891	$ 929

Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Forward stock repurchase transaction shares, excluded from dilution effect	0	600,000
Weighted-average number of shares	600,000	200,000

Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income from continuing operations	$ 20,449	$ 22,196
Less: Participation rights on Forward Transactions allocated to continuing operations	$ 0	$ 113
Incremental Common Shares Attributable to Dilutive Effect of Share-Based Payment Arrangements	4,466	5,550
Income loss from continuing operations basic shares	129,136,000	111,414,000
Income loss from continuing operations diluted shares	133,602,000	134,095,000
Dilutive securities, effect on basic earnings per share, options and restrictive stock units	$ 0	$ 0
Undistributed income from continuing operations and assumed conversions, Diluted	20,449	23,902
Undistributed income from continuing operations and assumed conversions, Basic	$ 20,449	$ 22,083
Diluted	$ 0.15	$ 0.18
Basic	$ 0.16	$ 0.20
2022 Convertible Notes [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Amount of dilutive securities convertible notes	$ 0	$ 1,819
Dilutive securities effect on convertible notes from discontinuing operations	0	17,131

Composition of Certain Balance Sheet Accounts - Schedule of Components of Inventories (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Work-in-process component parts	$ 36,362	$ 34,840
Finished goods	18,134	14,653
Total inventory	$ 54,496	$ 49,493

Composition of Certain Balance Sheet Accounts - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Prepaid Expense and Other Assets [Abstract]
Interest rate caps and receivable	$ 27,113	$ 28,496
Contract assets	6,796	6,494
Prepaid inventories	2,917	2,901
Other	9,433	7,209
Total prepaid expenses and other current assets	$ 46,259	$ 45,100

Composition of Certain Balance Sheet Accounts - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 213,810	$ 211,962
Accumulated depreciation	(109,125)	(107,367)
Total property and equipment, net	104,685	104,595
Office Equipment, Furniture, Fixtures and Other [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	17,457	17,242
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	15,419	15,357
Network Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 180,934	$ 179,363

Composition of Certain Balance Sheet Accounts - Schedule of Other Non-Current Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Other Assets, Noncurrent [Abstract]
Contract assets, net of allowances of $487 and $501, respectively	$ 12,530	$ 13,376
Interest rate caps	17,639	25,578
Revolving credit facility deferred financing costs	1,338	1,445
Other	2,971	2,956
Total other non-current assets	$ 34,478	$ 43,355

Composition of Certain Balance Sheet Accounts - Schedule of Other Non-Current Assets (Parenthetical) (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Other Assets, Noncurrent [Abstract]
Contract with Customer, Asset, Accumulated Allowance for Credit Loss, Noncurrent	$ 487	$ 501

Composition of Certain Balance Sheet Accounts - Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Accrued Liabilities, Current [Abstract]
Accrued interest	$ 10,008	$ 9,878
Operating leases	9,445	9,094
Employee compensation and benefits	8,502	19,235
Network equipment	8,434	8,748
Warranty reserve	2,800	2,300
Taxes	2,272	2,282
Other	7,839	8,519
Total accrued liabilities	$ 49,300	$ 60,056

Composition of Certain Balance Sheet Accounts - Schedule of Other Non-Current Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Other Liabilities, Noncurrent [Abstract]
Total other non-current liabilities	$ 7,731	$ 7,611

Composition of Certain Balance Sheet Accounts (Additional Information) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net Realizable Value Inventory	$ 1.3

Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 0.6		$ 0.6
Amortization expense	$ 0.6	$ 1.9

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Intangible Assets - Schedule of Intangible Assets, Other than Goodwill (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Intangible Assets Net Excluding Goodwill [Line Items]
Amortized intangible assets, Gross Carrying Amount	$ 76,897	$ 75,361
Amortized intangible assets, Accumulated Amortization	(59,356)	(58,755)
Amortized intangible assets, Net Carrying Amount	17,541	16,606
Total intangible assets, Gross Carrying amount	109,180	107,644
Total intangible assets, Net Carrying Amount	49,824	48,889
FCC Licenses [Member]
Intangible Assets Net Excluding Goodwill [Line Items]
Total unamortized intangible assets, Gross Carrying Amount	32,283	32,283
Total unamortized intangible assets, Net Carrying Amount	$ 32,283	32,283
Software [Member]
Intangible Assets Net Excluding Goodwill [Line Items]
Weighted Average Remaining Useful Life (in years)	6 years 6 months
Amortized intangible assets, Gross Carrying Amount	$ 61,468	59,932
Amortized intangible assets, Accumulated Amortization	(44,551)	(43,950)
Amortized intangible assets, Net Carrying Amount	$ 16,917	15,982
Other Intangible Assets [Member]
Intangible Assets Net Excluding Goodwill [Line Items]
Weighted Average Remaining Useful Life (in years)	8 years
Amortized intangible assets, Gross Carrying Amount	$ 624	624
Amortized intangible assets, Net Carrying Amount	624	624
Service Customer Relationships [Member]
Intangible Assets Net Excluding Goodwill [Line Items]
Amortized intangible assets, Gross Carrying Amount	8,081	8,081
Amortized intangible assets, Accumulated Amortization	(8,081)	(8,081)
OEM and Dealer Relationships [Member]
Intangible Assets Net Excluding Goodwill [Line Items]
Amortized intangible assets, Gross Carrying Amount	6,724	6,724
Amortized intangible assets, Accumulated Amortization	$ (6,724)	$ (6,724)

Intangible Assets - Summary of Amortization Expenses (Detail) $ in Thousands	Mar. 31, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2023 (period from April 1 to December 31)	$ 1,918
2024	2,566
2025	2,460
2026	2,361
2027	2,141
Thereafter	$ 6,095

Long-Term Debt and Other Liabilities - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Less deferred financing costs	$ (13,318)	$ (13,840)
Less current portion of long-term debt	(7,250)	(7,250)
Total long-term debt	688,991	690,173
Line Of Credit [Member]
Debt Instrument [Line Items]
Term Loan Facility	$ 709,559	$ 711,263

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Long-Term Debt and Other Liabilities - Additional Information (Detail)			1 Months Ended					3 Months Ended
	Mar. 31, 2020 shares	Dec. 11, 2019 USD ($) shares	May 31, 2022 USD ($) shares	Apr. 30, 2022	Apr. 30, 2021 USD ($) shares	Jan. 31, 2021 USD ($) shares	Nov. 21, 2018 USD ($)	Mar. 31, 2023 USD ($) $ / shares shares	Mar. 31, 2022 USD ($) shares	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
Amortization of deferred financing costs and interest rate caps								$ 630,000	$ 939,000
Debt instrument, maturity date				Apr. 30, 2026
Prepayment Of Net Cash Proceeds Percentage					100.00%
Prepayment Of Net Cash Proceeds Reduced Percentage					50.00%
Prepayment Of Net Cash Proceeds Maximum Reduction Percentage					0.00%
Prepayment Of Net Cash Proceeds Of Debt Offerings Percentage					100.00%
Additional paid-in capital								$ 1,386,295,000		$ 1,385,933,000
Forward stock repurchase transaction shares, excluded from dilution effect \| shares								0	600,000
Retired shares under Amended and Restated Forward Transaction \| shares			600,000
Convertible Notes [Member]
Debt Instrument [Line Items]
Forward stock repurchase transaction shares, excluded from dilution effect \| shares								7,200,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity					$ 100,000,000.0
Debt instrument, maturity date					Apr. 30, 2028
Margin On LIBOR					an adjusted term SOFR rate (subject to a floor of 0.00%) plus an applicable margin ranging from 3.25% to 3.75% per annum depending on GIH’s senior secured first lien net leverage ratio and a credit spread adjustment recommended by the Alternative Reference Rates Committee of 0.11%, 0.26% or 0.43% per annum based on 1-month, 3-month or 6-month term SOFR, respectively or
Floor rate					0.00%
Unused Borrowing Fee Percentage								0.25%
Margin fee								3.25%
Revolving Credit Facility [Member] \| SORF [Member] \| 1-month Term [Member]
Debt Instrument [Line Items]
Interest Rate On Debt					0.11%
Revolving Credit Facility [Member] \| SORF [Member] \| 3-month Term [Member]
Debt Instrument [Line Items]
Interest Rate On Debt					0.26%
Revolving Credit Facility [Member] \| SORF [Member] \| 6-Month Term [Member]
Debt Instrument [Line Items]
Interest Rate On Debt					0.43%
Revolving Credit Facility [Member] \| Minimum
Debt Instrument [Line Items]
Unused Borrowing Fee Percentage					0.25%
Revolving Credit Facility [Member] \| Minimum \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Interest Rate On Debt					3.25%
Revolving Credit Facility [Member] \| Minimum \| Base Rate [Member]
Debt Instrument [Line Items]
Interest Rate On Debt					2.25%
Revolving Credit Facility [Member] \| Maximum
Debt Instrument [Line Items]
Unused Borrowing Fee Percentage					0.50%
Revolving Credit Facility [Member] \| Maximum \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Interest Rate On Debt					3.75%
Revolving Credit Facility [Member] \| Maximum \| Base Rate [Member]
Debt Instrument [Line Items]
Interest Rate On Debt					2.75%
Term Loan and Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Margin On LIBOR					an adjusted term SOFR rate (subject to a floor of 0.75%) plus an applicable margin of 3.75% and a credit spread adjustment recommended by the Alternative Reference Rates Committee of 0.11%, 0.26% or 0.43% per annum based on 1-month, 3-month or 6-month term SOFR, respectively or
Floor rate					0.75%
Term Loan and Revolving Credit Facility [Member] \| SORF [Member] \| 1-month Term [Member]
Debt Instrument [Line Items]
Interest Rate On Debt					0.11%
Term Loan and Revolving Credit Facility [Member] \| SORF [Member] \| 2-month Term [Member]
Debt Instrument [Line Items]
Interest Rate On Debt					0.26%
Term Loan and Revolving Credit Facility [Member] \| SORF [Member] \| 3-month Term [Member]
Debt Instrument [Line Items]
Interest Rate On Debt					0.43%
Term Loan and Revolving Credit Facility [Member] \| Minimum \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Interest Rate On Debt					3.75%
Term Loan and Revolving Credit Facility [Member] \| Minimum \| Base Rate [Member]
Debt Instrument [Line Items]
Interest Rate On Debt					2.75%
Line Of Credit [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity					$ 725,000,000.0
Term loan discount rate					0.50%
Line Of Credit [Member] \| Term Loan and Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Prepayment of annual excess cash flow, Percentage					50.00%
Reduction in Prepayment of annual excess cash flow, Percentage					25.00%
Maximum reduction in Prepayment of annual excess cash flow, Percentage					0.00%
Leverage ratio					7.50
Percentage Of All Commitments					35.00%
2024 Senior Secured Notes [Member]
Debt Instrument [Line Items]
Amortization of deferred financing costs and interest rate caps								$ 600,000	$ 700,000
Aggregate principal amount								712,300,000		714,100,000
Total debt								709,600,000		711,300,000
Loan origination fees								19,700,000
Debt issuance costs								14,700,000		15,300,000
Convertible Notes, unamortized discount								$ 2,700,000		2,800,000
6.00% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Amortization of deferred financing costs and interest rate caps									$ 300,000
Interest rate							6.00%
Debt issuance costs										$ 0
Conversion of Stock, Amount Converted						$ 135,000,000.0
Conversion of Stock, Shares Issued \| shares						24,353,006
Conversion rate								166.6667
Principal amount								$ 1,000
Conversion price \| $ / shares								$ 6.00
6.00% Convertible Senior Notes [Member] \| Issuance Costs [Member]
Debt Instrument [Line Items]
Loan origination fees							$ 8,100,000
6.00% Convertible Senior Notes [Member] \| Institutional Buyers [Member]
Debt Instrument [Line Items]
Aggregate principal amount							$ 237,800,000
2022 Convertible Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount			$ 102,800,000
Issuance of common stock shares \| shares			17,131,332
3.75% Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Forward stock repurchase transactions amount		$ 140,000,000.0						$ 140,000,000.0
Forward stock repurchase transaction shares, excluded from dilution effect \| shares	5,100,000	2,100,000			1,500,000
3.75% Convertible Senior Notes [Member] \| Convertible Notes [Member]
Debt Instrument [Line Items]
Interest rate								3.75%
Chairman and Chief Executive Officer \| Thorndale Farm Private Equity Fund 2, LLC \| 2022 Convertible Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount			$ 8,000,000.0
Issuance of common stock shares \| shares			1,333,333

Derivative Instruments and Hedging Activities - Additional Information (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	May 31, 2021	Mar. 31, 2023	Mar. 31, 2022
Derivative Instruments Gain Loss [Line Items]
Notional Amounts	$ 650.0
Derivative, description of terms	We receive payments in the amount calculated pursuant to the caps for any period in which the three-month USD LIBOR rate increases beyond the applicable strike rate
Unrealized loss on the interest rate caps net		$ 2.3	$ 5.3
Other Comprehensive Income (Loss)
Derivative Instruments Gain Loss [Line Items]
Fair value of outstanding derivative instruments, unrealized loss net of taxes deferred in accumulated other comprehensive income		0.0
Fair value of outstanding derivative instruments, loss, expected to be reclassified to earnings		2.2
Interest Rate Cap
Derivative Instruments Gain Loss [Line Items]
Notional Amounts	$ 8.6
Decrease in fair value on interest		$ 7.3	$ 16.1

Derivative Instruments and Hedging Activities - Schedule of Notional Amounts Strike Rates and End Dates of the Cap Agreements (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	May 31, 2021
Derivative [Line Items]
Notional Amounts		$ 650,000
0.75% due on 7/31/2023
Derivative [Line Items]
Start Date	Jul. 31, 2021
End Date	Jul. 31, 2023
Notional Amounts	$ 650,000
Strike Rate	0.75%
0.75% due on 7/31/2024
Derivative [Line Items]
Start Date	Jul. 31, 2023
End Date	Jul. 31, 2024
Notional Amounts	$ 525,000
Strike Rate	0.75%
1.25% due on 7/31/2025
Derivative [Line Items]
Start Date	Jul. 31, 2024
End Date	Jul. 31, 2025
Notional Amounts	$ 350,000
Strike Rate	1.25%
2.25% due on 7/31/2026
Derivative [Line Items]
Start Date	Jul. 31, 2025
End Date	Jul. 31, 2026
Notional Amounts	$ 250,000
Strike Rate	2.25%
2.75% due on 7/31/2027
Derivative [Line Items]
Start Date	Jul. 31, 2026
End Date	Jul. 31, 2027
Notional Amounts	$ 200,000
Strike Rate	2.75%

Derivative Instruments and Hedging Activities - Schedule of Fair Value of Interest Rate Derivates (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Derivatives Fair Value [Line Items]
Prepaid Expense and Other Assets, Current	$ 46,259	$ 45,100
Other Assets, Noncurrent	34,478	43,355
Interest Rate Cap Current
Derivatives Fair Value [Line Items]
Derivative Asset	22,772	24,459
Interest Rate Cap Non Current
Derivatives Fair Value [Line Items]
Derivative Asset	$ 17,639	$ 25,578
Prepaid Expenses and Other Current Assets
Derivatives Fair Value [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Prepaid Expense and Other Assets, Current	Prepaid Expense and Other Assets, Current
Other Noncurrent Assets
Derivatives Fair Value [Line Items]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets, Noncurrent	Other Assets, Noncurrent

Interest Costs - Summary of Interest Costs (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Schedule Of Interest [Line Items]
Interest costs charged to expense	$ 14,497	$ 9,827
Amortization of deferred financing costs	630	939
Amortization of the purchase price of interest rate caps	134	8
Accretion of debt discount	108	115
Interest expense	8,976	10,889
Total interest costs	9,630	11,026
Software [Member]
Schedule Of Interest [Line Items]
Interest rate cap benefit	(157)	(97)
Property and Equipment [Member]
Schedule Of Interest [Line Items]
Interest rate cap benefit	(497)	(40)
Interest Rate Cap [Member]
Schedule Of Interest [Line Items]
Interest rate cap benefit	$ (6,393)	$ 0

Leases - Additional Information (Detail) $ in Thousands	3 Months Ended
Leases - Additional Information (Detail) $ in Thousands	Mar. 31, 2023 USD ($)
Leases [Abstract]
Lessee operating lease option to extend	15 years
Undiscounted minimum lease payments	$ 110,785

Leases - Summary of our lease expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Operating lease cost	$ 3,938	$ 3,546
Financing lease cost:
Amortization of leased assets	39	38
Interest on lease liabilities	5	13
Total lease cost	$ 3,982	$ 3,597

Leases - Other information regarding our leases (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows used in operating leases	$ 3,969	$ 3,496
Operating cash flows used in financing leases	5	13
Financing cash flows used in financing leases	57	43
Non-cash items:
Operating leases obtained	718	2,269
Financing leases obtained	$ 0	$ 0
Weighted average remaining lease term
Operating leases	8 years	9 years
Financing leases	1 year	1 year
Weighted average discount rate
Operating leases	6.70%	6.90%
Financing leases	16.60%	17.90%

Leases - Annual Future Minimum Obligations for Operating Leases Other than Arrangements with Commercial Airline Partners (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Operating Leases
2023 (period from April 1 to December 31)	$ 10,877
2024	15,256
2025	14,402
2026	14,229
2027	13,377
Thereafter	42,644
Lessee, Operating Lease, Liability, to be Paid, Total	110,785
Less: Amount representing interest	(24,075)
Present value of net minimum lease payments	86,710
Accrued liabilities	9,445	$ 9,094
Non-current operating lease liabilities	77,265	$ 79,241
Other non-current liabilities	0
Total lease liabilities	86,710
Financing Leases
2023 (period from April 1 to December 31)	79
2024	4
2025	2
2026	0
2027	0
Thereafter	0
Total future minimum lease payments	85
Less: Amount representing interest	(4)
Present value of net minimum lease payments	81
Accrued liabilities	76
Non-current operating lease liabilities	0
Other non-current liabilities	5
Total lease liabilities	$ 81

Commitments and Contingencies - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Derivative Litigation [Member]
Loss Contingencies [Line Items]
Litigation filing date	September 25, 2018 and September 26, 2018
SmartSky Litigation [Member]
Loss Contingencies [Line Items]
Litigation filing date	February 28, 2022
Supply and Product Support Agreement [Member]
Loss Contingencies [Line Items]
Additional Equipment with an estimated Aggregate Purchase Price	$ 102
Supply and Product Support Agreement [Member] \| Contractual Commitments [Member]
Loss Contingencies [Line Items]
Long Term Purchase Commitment Amount	$ 170

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

Mar. 31, 2023

Dec. 31, 2022

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

Fair value of term loans

^[1]

$ 708,000

Term loans

^[2]

$ 709,559

$ 711,263

[1]	Fair value amounts are rounded to the nearest million.
[2]	Carrying value of the Term Loan Facility reflects the unaccreted debt discount of $2.7 million and $2.8 million as of March 31, 2023 and December 31, 2022, respectively. See Note 6, “Long-Term Debt and Other Liabilities,” for further information.

Fair Value of Financial Assets and Liabilities - Summary of Fair Value and Carrying Value of Long-Term Debt (Parenthetical) (Detail) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Term Loan Facility [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Unamortized Discount	$ 2.7	$ 2.8

Income Tax - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate	17.70%	8.00%
Income tax provision (benefit)	$ (4,388)	$ (1,937)
Interest or penalties related to uncertain tax positions	0	$ 0
Liabilities for interest and potential penalties	$ 0		$ 0
Federal statutory rate	21.00%	21.00%

- Definition

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

+ References + Details

Stock-Based Compensation and 401(k) Plan - Additional Information (Detail) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($) Plans $ / shares shares	Mar. 31, 2022 USD ($)
Number of share-based employee compensation plans \| Plans	3
Stock options, shares granted	0
Stock options exercised	68,520
Stock options forfeited	1,875
Stock options, shares expired	0
Employee Contribution	100.00%
Percentage of employees contribution matched by the company	4.00%
Employer Contribution \| $	$ 0.5	$ 0.5
Employee Stock Purchase Plan [Member]
Common stock, shares issued under Employee Stock Purchase Plan	12,582
Restricted Stock Units (RSUs) [Member]
Fair value of options granted recognized period	4 years
Share units granted	1,346,428
Share units forfeited	40,561
Fair value of option granted \| $	$ 22.3
Share units vested	1,013,614
Deferred Stock Units [Member]
Fair value of options granted \| $ / shares	$ 0.5
Share units granted	31,804
Share units vested	55,999

Stock-Based Compensation and 401(k) Plan - Summary of Stock-Based Compensation Expense by Operating Expense Excluding Discontinued Operations (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 5,041	$ 4,007
Cost of Service Revenue [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	343	186
Cost of Equipment Revenue [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	287	208
Engineering, Design and Development [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	754	494
Sales and Marketing [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	738	549
General and Administrative [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 2,919	$ 2,570

Research and Development Costs - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Research and Development [Abstract]
Research and Development Expense	$ 7.9	$ 5.4

Accumulated Other Comprehensive Income (Loss) - Summary of changes in accumulated other comprehensive income (loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	$ (101,869)	$ (320,154)
Other comprehensive income (loss) before reclassifications	(2,439)	16,053
Net current period comprehensive income (loss)	(7,085)	16,172
Ending Balance	(88,143)	(281,040)
Accumulated Currency Translation Adjustment [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	(1,225)	(960)
Other comprehensive income (loss) before reclassifications	75	111
Less: income realized and reclassified to earnings	0	0
Net current period comprehensive income (loss)	75	111
Ending Balance	(1,150)	(849)
Accumulated Change in Fair Value Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	31,353	2,749
Other comprehensive income (loss) before reclassifications	(2,439)	16,053
Less: income realized and reclassified to earnings	4,721	(8)
Net current period comprehensive income (loss)	(7,160)	16,061
Ending Balance	24,193	18,810
Accumulated Other Comprehensive Loss [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning Balance	30,128	1,789
Other comprehensive income (loss) before reclassifications	(2,364)	16,164
Less: income realized and reclassified to earnings	4,721	(8)
Net current period comprehensive income (loss)	(7,085)	16,172
Ending Balance	$ 23,043	$ 17,961

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-Section 55
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=84165509&loc=d3e56426-112766

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 4.E)
-URI https://asc.fasb.org/extlink&oid=122038336&loc=d3e74512-122707

Reference 4: 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(31))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 5: 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(29))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 6: 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(30))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

+ Details

Government Assistance (Additional Information) (Details) $ in Millions	Jul. 15, 2022 USD ($)
Government Assistance [Line Items]
Reimbursements Cost	$ 132
Federal Communications Commission [Member]
Government Assistance [Line Items]
Reimbursements Cost	$ 334

Discontinued Operations - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Total stock-based compensation expense	$ 5,041	$ 4,007
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	343	186
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	754	494
Sales and Marketing [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Total stock-based compensation expense	738	549
General and Administrative [Member]
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Total stock-based compensation expense	$ 2,919	$ 2,570