Certain Relationships and Related-Party Transactions

3 Months Ended

Jun. 28, 2013

Related Party Transactions [Abstract]

Certain Relationships and Related-Party Transactions

Note 11 — Certain Relationships and Related-Party Transactions

John Stenbit, a director of the Company since August 2004, also serves on the board of directors of Loral. The Company’s satellite construction contract with SS/L (a subsidiary of Loral prior to November 2012), under which the Company purchased 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 (see Note 3). In addition, the Company entered into a beam sharing agreement with Loral, whereby Loral is responsible for contributing 15% of the total costs associated with the ViaSat-1 satellite project. The Company’s purchase of the ViaSat-1 satellite from SS/L was approved by the disinterested members of the Company’s Board of Directors, after a determination by the disinterested members of the Company’s Board that the terms and conditions of the purchase were fair to and in the best interests of the Company and its stockholders. In March 2011, Loral entered into agreements with Telesat Canada (an entity owned by TeleSat Holdings, Inc., a joint venture between Loral and the Public Sector Pension Investment Board) pursuant to which Loral assigned to Telesat Canada, and Telesat Canada assumed from Loral, all of Loral’s rights and obligations with respect to the Canadian beams on ViaSat-1. Material amounts related to the satellite construction contract with SS/L and beam sharing agreement with Telesat Canada 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 Loral, 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 28, 2013 and March 29, 2013 that relate to SS/L as a related party were as follows:

	As of June 28, 2013			As of March 29, 2013
	(In thousands)
Payables, current:
Satellite construction contract (estimated satellite performance incentives)	$	*	*	$	1,725
Payables, long-term:
Satellite construction contract (estimated satellite performance incentives)		*	*		21,009

^**  Effective as of November 2012, SS/L is no longer a related party.

Expense for the three months ended June 28, 2013 and June 29, 2012 were as follows:

	Three Months Ended
	June 28, 2013		June 29, 2012
	(In thousands)
Expense:
Telesat Canada – ordinary course of business	$	2,533	$	*

^*  Amount was not meaningful.

Cash paid during the three months ended June 28, 2013 and June 29, 2012 were as follows:

	Three Months Ended
	June 28, 2013		June 29, 2012
	(In thousands)
Cash paid:
Telesat Canada – ordinary course of business	$	1,830	$	2,146