Certain Relationships and Related-Party Transactions

3 Months Ended

Jun. 29, 2012

Certain Relationships and Related-Party Transactions [Abstract]

Certain Relationships and Related-Party Transactions

Note 12 — Certain Relationships and Related-Party Transactions

Michael Targoff, who served as a director of the Company from February 2003 to February 2012, currently serves as the Chief Executive Officer and the Vice Chairman of the board of directors of Loral, the parent of SS/L, and is also a director of Telesat Holdings Inc., a joint venture company formed by Loral and the Public Sector Pension Investment Board to acquire Telesat Canada in October 2007. John Stenbit, a director of the Company since August 2004, also currently serves on the board of directors of Loral.

The Company’s satellite construction contract with SS/L for ViaSat-1 requires the Company to make monthly satellite performance incentive payments, including interest, over a fifteen-year period from December 2011 to December 2026, subject to the continued satisfactory performance of the satellite. As of June 29, 2012 and March 30, 2012, the Company’s estimated satellite performance incentives obligation and accrued interest were $22.6 million and $22.5 million, respectively. Based on estimates as of June 29, 2012, the remaining amount of satellite performance incentives and related interest that the Company may be required to pay under this satellite construction contract during the period until December 2026 is approximately $39.0 million. Material amounts related to the satellite construction contract with SS/L are disclosed in the tables below.

In addition, from time to time, the Company enters into various contracts in the ordinary course of business with SS/L and Telesat Canada. Material amounts related to these contracts are disclosed in the tables below.

Current payables included in accrued liabilities and long-term payables included in other liabilities as of June 29, 2012 and March 30, 2012 were as follows:

	As of June 29, 2012		As of March 30, 2012
	(In thousands)
Payables, current
Loral – satellite construction contract (estimated satellite performance incentives)	$	1,660	$	1,599
Payables, long-term
Loral – satellite construction contract (estimated satellite performance incentives)		20,982		20,910

Revenue for the three months ended June 29, 2012 and July 1, 2011 were as follows:

	Three Months Ended
	June 29, 2012		July 1, 2011
	(In thousands)
Revenue
Loral – ordinary course of business	$	148	$	1,474

Cash paid during the three months ended June 29, 2012 and July 1, 2011 were as follows:

	Three Months Ended
	June 29, 2012		July 1, 2011
	(In thousands)
Cash paid
Loral – satellite construction contract (including satellite performance incentives)	$	261	$	1,283
Telesat Canada – ordinary course of business		2,146		2,431