Financial Statements of Parent and Subsidiary Guarantors (Tables)

6 Months Ended

Sep. 28, 2012

Condensed Consolidated Balance Sheet

Condensed Consolidated Balance Sheet as of September 28, 2012

	Issuing Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidation and Elimination Adjustments			Consolidated
	(Unaudited, in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	119,292	$	6,911	$	9,915	$	—		$	136,118
Accounts receivable, net		215,026		9,701		6,879		—			231,606
Inventories		99,509		27,744		5,637		—			132,890
Deferred income taxes		18,457		1,526		308		—			20,291
Prepaid expenses and other current assets		28,444		5,660		614		—			34,718
Current portion of intercompany receivables		65,443		—		—		(65,443	)		—
Total current assets		546,171		51,542		23,353		(65,443	)		555,623
Satellites, net		348,119		212,402		—		—			560,521
Property and equipment, net		183,723		136,170		6,152		—			326,045
Other acquired intangible assets, net		2,084		45,913		7,062		—			55,059
Goodwill		63,939		9,687		9,911		—			83,537
Investments in subsidiaries and intercompany receivables		404,693		2,813		1,642		(409,148	)		—
Other assets		126,172		35,755		657		—			162,584
Total assets	$	1,674,901	$	494,282	$	48,777	$	(474,591	)	$	1,743,369
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	65,254	$	14,280	$	1,112	$	—		$	80,646
Accrued liabilities		123,524		26,265		4,617		—			154,406
Current portion of other long-term debt		133		1,137		—		—			1,270
Current portion of intercompany payables		—		65,443		—		(65,443	)		—
Total current liabilities		188,911		107,125		5,729		(65,443	)		236,322
Senior Notes, net		548,039		—		—		—			548,039
Other long-term debt		7		124		—		—			131
Intercompany payables		1,650		—		9,666		(11,316	)		—
Other liabilities		38,732		15,796		2,532		—			57,060
Total liabilities		777,339		123,045		17,927		(76,759	)		841,552
Equity:
ViaSat, Inc. stockholders’ equity
Total ViaSat, Inc. stockholders’ equity		897,562		371,237		30,850		(402,087	)		897,562
Noncontrolling interest in subsidiary		—		—		—		4,255			4,255
Total equity		897,562		371,237		30,850		(397,832	)		901,817
Total liabilities and equity	$	1,674,901	$	494,282	$	48,777	$	(474,591	)	$	1,743,369

Condensed Consolidated Balance Sheet as of March 30, 2012

	Issuing  Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidation  and Elimination Adjustments			Consolidated
	(Unaudited, in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	162,426	$	439	$	9,718	$	—		$	172,583
Accounts receivable, net		192,313		12,411		6,966		—			211,690
Inventories		106,151		16,474		5,021		—			127,646
Deferred income taxes		18,482		1,526		308		—			20,316
Prepaid expenses and other current assets		27,128		2,923		866		—			30,917
Total current assets		506,500		33,773		22,879		—			563,152
Satellites, net		358,580		227,151		—		—			585,731
Property and equipment, net		178,611		110,137		6,225		—			294,973
Other acquired intangible assets, net		2,633		52,389		8,019		—			63,041
Goodwill		63,939		9,687		9,835		—			83,461
Investments in subsidiaries and intercompany receivables		437,631		2,501		1,428		(441,560	)		—
Other assets		117,300		18,886		609		—			136,795
Total assets	$	1,665,194	$	454,524	$	48,995	$	(441,560	)	$	1,727,153
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	62,085	$	12,192	$	763	$	—		$	75,040
Accrued liabilities		128,327		27,477		3,958		—			159,762
Current portion of other long-term debt		129		1,111		—		—			1,240
Total current liabilities		190,541		40,780		4,721		—			236,042
Senior Notes, net		547,791		—		—		—			547,791
Other long-term debt		74		700		—		—			774
Intercompany payables		1,428		4,462		9,429		(15,319	)		—
Other liabilities		37,385		10,269		2,699		—			50,353
Total liabilities		777,219		56,211		16,849		(15,319	)		834,960
Equity:
ViaSat, Inc. stockholders’ equity
Total ViaSat, Inc. stockholders’ equity		887,975		398,313		32,146		(430,459	)		887,975
Noncontrolling interest in subsidiary		—		—		—		4,218			4,218
Total equity		887,975		398,313		32,146		(426,241	)		892,193
Total liabilities and equity	$	1,665,194	$	454,524	$	48,995	$	(441,560	)	$	1,727,153

Condensed Consolidated Statement of Operations

Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) for the Three Months Ended September 28, 2012

	Issuing  Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidation  and Elimination Adjustments			Consolidated
	(Unaudited, in thousands)
Revenues:
Product revenues	$	161,137		$	2,975		$	4,481		$	(118	)	$	168,475
Service revenues		51,668			59,803			3,261			(385	)		114,347
Total revenues		212,805			62,778			7,742			(503	)		282,822
Operating expenses:
Cost of product revenues		116,382			2,028			3,121			(110	)		121,421
Cost of service revenues		37, 012			56,556			2,199			(385	)		95,382
Selling, general and administrative		30,600			20,747			2,732			—			54,079
Independent research and development		8,272			360			134			(8	)		8,758
Amortization of acquired intangible assets		274			3,238			529			—			4,041
Income (loss) from operations		20,265			(20,151	)		(973	)		—			(859	)
Other income (expense):
Interest income		44			—			1			—			45
Interest expense		(11,537	)		(16	)		—			—			(11,553	)
Income (loss) before income taxes		8,772			(20,167	)		(972	)		—			(12,367	)
Provision for (benefit from) income taxes		3,522			(7,978	)		(54	)		—			(4,510	)
Equity in net income (loss) of consolidated subsidiaries		(13,157	)		—			—			13,157			—
Net income (loss)		(7,907	)		(12,189	)		(918	)		13,157			(7,857	)
Less: Net income (loss) attributable to noncontrolling interest, net of tax		—			—			—			50			50
Net income (loss) attributable to ViaSat, Inc.	$	(7,907	)	$	(12,189	)	$	(918	)	$	13,107		$	(7,907	)
Comprehensive income (loss) attributable to ViaSat, Inc.	$	(6,879	)	$	(12,189	)	$	54		$	12,135		$	(6,879	)

Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) for the Six Months Ended September 28, 2012

	Issuing  Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidation  and Elimination Adjustments			Consolidated
	(Unaudited, in thousands)
Revenues:
Product revenues	$	304,311		$	3,506		$	8,609		$	(222	)	$	316,204
Service revenues		89,028			114,387			5,739			(773	)		208,381
Total revenues		393,339			117,893			14,348			(995	)		524,585
Operating expenses:
Cost of product revenues		222,707			2,110			5,843			(190	)		230,470
Cost of service revenues		61,366			109,481			3,877			(773	)		173,951
Selling, general and administrative		61,743			43,722			5,115			—			110,580
Independent research and development		15,363			510			286			(32	)		16,127
Amortization of acquired intangible assets		549			6,476			1,080			—			8,105
Income (loss) from operations		31,611			(44,406	)		(1,853	)		—			(14,648	)
Other income (expense):
Interest income		102			—			3			—			105
Interest expense		(23,058	)		(36	)		(5	)		—			(23,099	)
Income (loss) before income taxes		8,655			(44,442	)		(1,855	)		—			(37,642	)
Provision for (benefit from) income taxes		2,202			(17,367	)		(187	)		—			(15,352	)
Equity in net income (loss) of consolidated subsidiaries		(28,780	)		—			—			28,780			—
Net income (loss)		(22,327	)		(27,075	)		(1,668	)		28,780			(22,290	)
Less: Net income (loss) attributable to noncontrolling interest, net of tax		—			—			—			37			37
Net income (loss) attributable to ViaSat, Inc.	$	(22,327	)	$	(27,075	)	$	(1,668	)	$	28,743		$	(22,327	)
Comprehensive income (loss) attributable to ViaSat, Inc.	$	(22,000	)	$	(27,075	)	$	(1,421	)	$	28,496		$	(22,000	)

Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) for the Three Months Ended September 30, 2011

	Issuing  Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidation  and Elimination Adjustments			Consolidated
	(Unaudited, in thousands)
Revenues:
Product revenues	$	135,843		$	926		$	9,917		$	(75	)	$	146,611
Service revenues		21,988			51,638			3,187			(400	)		76,413
Total revenues		157,831			52,564			13,104			(475	)		223,024
Operating expenses:
Cost of product revenues		100,366			785			7,892			(1,134	)		107,909
Cost of service revenues		14,580			38,321			1,701			(398	)		54,204
Selling, general and administrative		29,919			11,983			2,477			—			44,379
Independent research and development		6,592			—			234			(17	)		6,809
Amortization of acquired intangible assets		970			3,239			558			—			4,767
Income (loss) from operations		5,404			(1,764	)		242			1,074			4,956
Other income (expense):
Interest income		112			—			2			(101	)		13
Interest expense		(152	)		(59	)		(101	)		101			(211	)
Income (loss) before income taxes		5,364			(1,823	)		143			1,074			4,758
Provision for (benefit from) income taxes		(3,443	)		(732	)		272			492			(3,411	)
Equity in net income (loss) of consolidated subsidiaries		(1,414	)		—			—			1,414			—
Net income (loss)		7,393			(1,091	)		(129	)		1,996			8,169
Less: Net income (loss) attributable to noncontrolling interest, net of tax		—			—			—			194			194
Net income (loss) attributable to ViaSat, Inc.	$	7,393		$	(1,091	)	$	(129	)	$	1,802		$	7,975
Comprehensive income (loss) attributable to ViaSat, Inc.	$	5,798		$	(1,091	)	$	(1,131	)	$	2,804		$	6,380

Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) for the Six Months Ended September 30, 2011

	Issuing  Parent Company			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidation  and Elimination Adjustments			Consolidated
	(Unaudited, in thousands)
Revenues:
Product revenues	$	254,756		$	1,578		$	13,167		$	(344	)	$	269,157
Service revenues		39,685			104,989			5,413			(1,119	)		148,968
Total revenues		294,441			106,567			18,580			(1,463	)		418,125
Operating expenses:
Cost of product revenues		189,930			1,542			10,465			(1,743	)		200,194
Cost of service revenues		25,472			75,457			3,659			(1,068	)		103,520
Selling, general and administrative		56,534			25,060			4,521			(3	)		86,112
Independent research and development		11,957			—			572			(26	)		12,503
Amortization of acquired intangible assets		1,940			6,477			1,122			—			9,539
Income (loss) from operations		8,608			(1,969	)		(1,759	)		1,377			6,257
Other income (expense):
Interest income		245			—			4			(210	)		39
Interest expense		(152	)		(59	)		(210	)		210			(211	)
Income (loss) before income taxes		8,701			(2,028	)		(1,965	)		1,377			6,085
Provision for (benefit from) income taxes		(3,463	)		(822	)		115			492			(3,678	)
Equity in net income (loss) of consolidated subsidiaries		(3,315	)		—			—			3,315			—
Net income (loss)		8,849			(1,206	)		(2,080	)		4,200			9,763
Less: Net income (loss) attributable to noncontrolling interest, net of tax		—			—			—			29			29
Net income (loss) attributable to ViaSat, Inc.	$	8,849		$	(1,206	)	$	(2,080	)	$	4,171		$	9,734
Comprehensive income (loss) attributable to ViaSat, Inc.	$	7,434		$	(1,206	)	$	(2,639	)	$	4,730		$	8,319

Condensed Consolidated Statement of Cash Flows

Condensed Consolidated Statement of Cash Flows for the Six Months Ended September 28, 2012

	Issuing  Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidation  and Elimination Adjustments			Consolidated
	(Unaudited, in thousands)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	(15,490	)	$	57,710		$	(133	)	$	—		$	42,087
Cash flows from investing activities:
Purchase of property, equipment and satellites, net		(23,287	)		(50,689	)		(676	)		—			(74,652	)
Cash paid for patents, licenses and other assets		(12,299	)		—			(52	)		—			(12,351	)
Long-term intercompany notes and investments		(1,052	)		—			—			1,052			—
Net cash provided by (used in) investing activities		(36,638	)		(50,689	)		(728	)		1,052			(87,003	)
Cash flows from financing activities:
Proceeds from issuance of common stock under equity plans		14,055			—			—			—			14,055
Payment of debt issuance costs		(2,215	)		—			—			—			(2,215	)
Purchase of common stock in treasury		(2,142	)		—			—			—			(2,142	)
Payments on capital lease		(64	)		(549	)		—			—			(613	)
Payments of satellite performance incentives obligation		(640	)		—			—			—			(640	)
Long-term intercompany financing		—			—			1,052			(1,052	)		—
Net cash provided by (used in) financing activities		8,994			(549	)		1,052			(1,052	)		8,445
Effect of exchange rate changes on cash		—			—			6			—			6
Net increase (decrease) in cash and cash equivalents		(43,134	)		6,472			197			—			(36,465	)
Cash and cash equivalents at beginning of period		162,426			439			9,718			—			172,583
Cash and cash equivalents at end of period	$	119,292		$	6,911		$	9,915		$	—		$	136,118

Condensed Consolidated Statement of Cash Flows for the Six Months Ended September 30, 2011

	Issuing  Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidation  and Elimination Adjustments			Consolidated
	(Unaudited, in thousands)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	(12,993	)	$	30,987		$	7,704		$	(1,912	)	$	23,786
Cash flows from investing activities:
Purchase of property, equipment and satellites, net		(116,927	)		(16,129	)		(2,169	)		1,912			(133,313	)
Cash paid for patents, licenses and other assets		(8,277	)		—			(18	)		—			(8,295	)
Long-term intercompany notes and investments		3,346			—			—			(3,346	)		—
Net cash provided by (used in) investing activities		(121,858	)		(16,129	)		(2,187	)		(1,434	)		(141,608	)
Cash flows from financing activities:
Proceeds from issuance of common stock under equity plans		6,167			—			—			—			6,167
Purchase of common stock in treasury		(2,250	)		—			—			—			(2,250	)
Payments on capital lease		(54	)		(411	)		—			—			(465	)
Proceeds from line of credit borrowings		130,000			—			—			—			130,000
Payments on line of credit		(20,000	)		—			—			—			(20,000	)
Long-term intercompany financing		20,686			(20,686	)		(3,346	)		3,346			—
Net cash provided by (used in) financing activities		134,549			(21,097	)		(3,346	)		3,346			113,452
Effect of exchange rate changes on cash		—			—			(113	)		—			(113	)
Net increase (decrease) in cash and cash equivalents		(302	)		(6,239	)		2,058			—			(4,483	)
Cash and cash equivalents at beginning of period		24,347			7,600			8,543			—			40,490
Cash and cash equivalents at end of period	$	24,045		$	1,361		$	10,601		$	—		$	36,007