What changed in this filing

/stocks — the workspaceLOADING

Item 9A. Controls and Procedures

2025-05-27 compared with 2024-05-29 · 519 added, 627 removed, 1253 unchanged (48% of the section changed)

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Also, projections of any evaluation of effectiveness to future periods are subject to the risks that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

We completed the acquisition of Inmarsat on May 30, 2023.

SEC guidance permits management to omit an assessment of an acquired business’ internal control over financial reporting from management’s assessments of internal control over financial reporting and disclosure controls and procedures for a period not to exceed one year from the date of the acquisition.

Accordingly, we have excluded Inmarsat from our assessment of internal control over financial reporting as of March 31, 2024.

We have reported the operating results of Inmarsat in our consolidated statements of operations and cash flows from the acquisition date through March 31, 2024.

Inmarsat is a wholly-owned subsidiary whose total assets and total revenues represent approximately 54% of our total assets and approximately 34% of our total revenues, as of and for the year ended March 31, 2024.

The Company’s independent registered public accounting firm has audited the effectiveness of the Company’s internal control over financial reporting as of March 31, 2025, as stated in their report which appears on page F-1.

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During the three months ended March 31, 2025 , no director or officer, as defined in Rule 16a-1(f), adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non Rule 10b5-1 trading arrangement” as defined in Item 408 of Regulation S-K.

On June 30, 2025, Craig Miller will transition from his current role as Senior Vice President, Strategic Initiatives to a new position as Senior Vice President and President, Government.

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

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Form of Common Stock Certificate (p)

Indenture dated as of September 21, 2017, between ViaSat, Inc.

and Wilmington Trust, National Association, as trustee

Form of 5.625% Senior Note due 2025 of ViaSat, Inc.

(attached as Exhibit A to the Indenture filed as Exhibit 4.2 hereto)

Indenture, dated as of March 27, 2019, between Viasat, Inc.

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(attached as Exhibit A to the Indenture filed as Exhibit 4.4 hereto)

Indenture, dated as of October 7, 2019, by and among Connect Finco SARL, Connect U.S.

Finco LLC and Wilmington Trust, National Association, as trustee

Third Supplemental Indenture, dated as of November 15, 2023, among Connect Finco SARL, Connect U.S.

FINCO LLC, the guarantors party thereto and Wilmington Trust, National Association, as trustee

Indenture, dated as of September 25, 2024, by and among Connect Finco SARL, Connect U.S.

Finco LLC, the guarantors party thereto and Wilmington Trust, as trustee and notes collateral agent

Form of 9.000% Senior Secured Notes due 2029 of Connect Finco SARL and Connect U.S.

Finco LLC (attached as Exhibit A to the Indenture filed as Exhibit 4.5 hereto)

Description of Registered Securities

Stockholders Agreement, dated as of November 8, 2021, by and among Viasat, Inc.

and the shareholders of Connect Topco Limited party thereto

Stockholder Agreement, dated as of May 21, 2025, by and between Viasat, Inc.

and Triton LuxTopHolding SARL.

Stockholder Agreement, dated as of May 21, 2025, by and between Viasat, Inc.

and CPP Investment Board Private Holdings (4) Inc.

Stockholder Agreement, dated as of May 21, 2025, by and between Viasat, Inc.

and Ontario Teachers’ Pension Plan Board.

Stockholder Agreement, dated as of May 21, 2025, by and between Viasat, Inc.

and WP Triton Co-Invest, L.P.

Form of Indemnification Agreement between ViaSat, Inc.

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— Independent Director

Form of Performance Stock Option Agreement for the 1996 Equity Participation Plan of Viasat Inc.

(Stock Price)

Form of Performance Stock Option Agreement for the Viasat Inc.

1996 Equity Participation Plan (Stock Price)

1996 Equity Participation Plan

Form of Restricted Stock Unit Award Agreement for the 1996 Equity Participation Plan of ViaSat, Inc.—Global

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Form of Restricted Stock Unit Award Agreement for the 1996 Equity Participation Plan of ViaSat, Inc.—Executive

Form of Change in Control Severance Agreement between ViaSat, Inc.

and each of its executive officers

Form of First Amendment to Change in Control Severance Agreement between ViaSat, Inc.

and each of its executive officers

Severance Agreement, dated as of April 13, 2023, by and between Viasat, Inc.

Guru Gowrappan

Form of Performance-based Restricted Stock Unit Award Agreement for the 1996 Equity Participation Plan of ViaSat, Inc.— Financial Performance

Form of Performance-based Restricted Stock Unit Award Agreement for the 1996 Equity Participation Plan of ViaSat, Inc.— Relative Total Shareholder Return

2024 Employment Inducement Incentive Award Plan of Viasat, Inc.

Form of Restricted Stock Unit Award Agreement for the 2024 Employment Inducement Incentive Award Plan of Viasat, Inc.—Executive

Form of Restricted Stock Unit Award Agreement for the 2024 Employment Inducement Incentive Award Plan of Viasat, Inc.—Relative Total Shareholder Return

2010 Omnibus Incentive Plan

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2019 Omnibus Incentive Plan

Form of Change in Control Severance Agreement between ViaSat, Inc.

and each of its executive officers

Form of Severance Agreement between Viasat, Inc.

and each of its executive officers

Severance Agreement, dated as of November 5, 2024, by and between Viasat, Inc.

and Shawn Duffy

Amended and Restated Severance Agreement, dated as of November 5, 2024, by and between Viasat, Inc.

and James Dodd

Severance Agreement, dated as of April 13, 2023, by and between Viasat, Inc.

Guru Gowrappan

Transition Agreement, dated as of January 23, 2025, by and between Viasat, Inc.

Guru Gowrappan

Transition Agreement, dated as of July 2, 2024, by and between Viasat, Inc.

and Evan Dixon

Amendment to Transition Agreement, dated as of July 29, 2024, by and between Viasat, Inc.

and Evan Dixon

Credit Agreement dated as of November 26, 2013, by and among ViaSat, Inc., Union Bank, N.A.

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(as successor in interest to MUFG Union Bank, N.A.), as administrative agent and collateral agent, and the lender party thereto.

Credit Agreement dated as of March 12, 2015, by and among ViaSat Technologies Limited, ViaSat, Inc., JPMorgan Chase Bank, National Association

(as Ex-Im facility agent) and the Export-Import Bank of the United States

Credit Agreement dated as of March 12, 2015, by and among ViaSat Technologies Limited, ViaSat, Inc., JPMorgan Chase Bank, National Association (as Ex-Im facility agent) and the Export-Import Bank of the United States

First Amendment to Credit Agreement, dated as of June 12, 2015, by and among ViaSat Technologies Limited, ViaSat, Inc., JPMorgan Chase Bank, National Association (as Ex-Im Facility Agent) and the Export-Import Bank of the United States

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Chairman of the Board and Chief Executive Officer

Know all persons by these presents, that ea ch person whose signature appears below constitutes and appoints Mark Dankberg and Shawn Duffy, jointly and severally, his or her attorneys-in-fact, each with the full power of substitution, for him or her in any and all capacities, to sign any amendments to this Annual Report on Form 10-K, and to file the same, with all exhibits thereto and other documents in connection the rewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that each of said attorneys-in-fact, or his or her substitute or substitutes, may do or cause to be done by virtue hereof.

Know all persons by these presents, that ea ch person whose signature appears below constitutes and appoints Mark Dankberg, Garrett Chase and Shawn Duffy, jointly and severally, his or her attorneys-in-fact, each with the full power of substitution, for him or her in any and all capacities, to sign any amendments to this Annual Report on Form 10-K, and to file the same, with all exhibits thereto and other documents in connection the rewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that each of said attorneys-in-fact, or his or her substitute or substitutes, may do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

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(Principal Executive Officer)

/s/ GARRETT CHASE

Senior Vice President and Chief Financial Officer

Garrett Chase

(Principal Financial Officer)

/s/ SHAWN DUFFY

Senior Vice President and

Chief Financial Officer

(Principal Financial and Accounting Officer)

Senior Vice President and Chief Accounting Officer

(Principal Accounting Officer)

/s/ RICHARD BALDRIDGE

Richard Baldridge

/s/ JAMES BRIDENSTINE

James Bridenstine

/s/ ROBERT JOHNSON

Robert Johnson

William LaPlante

Michael Paull

/s/ JOHN STENBIT

/s/ ANDREW SUKAWATY

Andrew Sukawaty

/s/ RAJEEV SURI

/s/ THERESA WISE

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We have audited the accompanying consolidated balance sheets of Viasat, Inc.

and its subsidiaries (the “Company”) as of March 31, 2024 and 2023, and the related consolidated statements of operations and comprehensive income (loss), of equity and of cash flows for each of the three years in the period ended March 31, 2024, including the related notes and financial statement schedule listed in the index appearing under Item 15(a)(2) (collectively referred to as the “consolidated financial statements”).

and its subsidiaries (the “Company”) as of March 31, 2025 and 2024, and the related consolidated statements of operations and comprehensive income (loss), of equity and of cash flows for each of the three years in the period ended March 31, 2025, including the related notes and financial statement schedules listed in the accompanying index appearing under Item 15 (a)(1) (collectively referred to as the “consolidated financial statements”).

We also have audited the Company's internal control over financial reporting as of March 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

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Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

As described in Management’s Report on Internal Control over Financial Reporting, management has excluded Connect Topco Limited (“Inmarsat”) from its assessment of internal control over financial reporting as of March 31, 2024, because it was acquired by the Company in a purchase business combination during fiscal year 2024.

We have also excluded Inmarsat from our audit of internal control over financial reporting.

Inmarsat is a wholly-owned subsidiary whose total assets and total revenues excluded from management’s assessment and our audit of internal control over financial reporting represent 54% and 34%, respectively, of the related consolidated financial statement amounts as of and for the year ended March 31, 2024.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Revenue Recognition – Satellite Services Segment

As described in Notes 1 and 16 to the consolidated financial statements, the satellite services segment revenue was $2,141.8 million for the fiscal year ended March 31, 2024, of which a majority relates to revenues from contracts with customers for services.

The Company’s satellite services segment revenues are primarily derived from the Company’s in-flight services, fixed broadband services, maritime services (including narrowband and safety of communication capabilities primarily acquired through the Inmarsat Acquisition), and energy services.

These contracts typically require advance or recurring monthly payments by the customer.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments.

The communication of critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

Revenue Recognition – Communication Services Segment

As described in Notes 1 and 16 to the consolidated financial statements, the communication services segment revenues were $3,298 million for the year ended March 31, 2025.

The Company’s communication services segment revenues are primarily derived from the Company’s aviation services (including in-flight connectivity (IFC) services), government satcom services, maritime services (including narrowband and safety of communication capabilities), fixed broadband services, and energy services, as well as a wide array of advanced satellite and wireless products, networks and terminal solutions that support or enable the provision of fixed and mobile broadband and narrowband services.

The Company’s connectivity services contracts typically require advance or recurring monthly payments by the customer.

The Company’s obligation to provide connectivity services is satisfied over time as the customer simultaneously receives and consumes the benefits provided.

The measure of progress over time is based upon either a period of time (e.g., over the estimated contractual term) or usage (e.g., bandwidth used/bytes of data processed).

The principal consideration for our determination that performing procedures relating to revenue recognition within the satellite services segment is a critical audit matter is a high degree of auditor effort in performing procedures related to the Company’s revenue recognition.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.

These procedures included testing the effectiveness of controls relating to the revenue recognition process, including controls over the recording of the satellite services revenue at the transaction price based upon either a period of time or usage.

These procedures also included, among others (i) developing an independent expectation of revenue using metrics, such as revenue by period, subscribers over time, active carriers, average revenue per carrier, and average revenue per user, and comparing the result to revenue recognized by management related to revenue from satellite services;

and (ii) testing the completeness and accuracy of the underlying data used by management in estimating the contract term by obtaining and inspecting customer additions, disconnects, and other customer activity and trends, where applicable.

Acquisition of Connect Topco Limited (“Inmarsat”) – Valuation of Customer Relationships, and Orbital Slots

As described in Notes 1 and 4 to the consolidated financial statements, on May 30, 2023, the Company completed the acquisition of Connect Topco Limited (“Inmarsat”) for net consideration of $2.7 billion.

Of the acquired intangible assets, $1.3 billion of customer relationships and $1.1 billion of orbital slots and spectrum assets were recorded, of which orbital slots comprise the majority of the balance.

Management allocated the purchase price to tangible and intangible assets acquired and liabilities assumed based on the preliminary estimates of their fair values, which is subject to adjustment for up to one year after the closing of the Inmarsat Acquisition as additional information is obtained.

Fair value is estimated by management using a multi-period excess earnings method for customer relationships and an avoided cost method for orbital slots and spectrum assets.

Management’s cash flow projections for the intangible assets acquired included

significant judgments and assumptions relating to revenue growth rates, customer attrition rates, discount rates, and contributory asset charges for customer relationships and hypothetical lease payments, discount rates, and contributory asset charges for orbital slots and spectrum assets.

The principal considerations for our determination that performing procedures relating to the valuation of customer relationships and orbital slots acquired in the acquisition of Inmarsat is a critical audit matter are (i) the significant judgment by management when developing the fair value estimate of the customer relationships and orbital slots acquired;

(ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management’s significant assumptions related to revenue growth rates, customer attrition rates, discount rates, and contributory asset charges for customer relationships and hypothetical lease payments, discount rates, and contributory asset charges for orbital slots;

and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

The principal consideration for our determination that performing procedures relating to revenue recognition within the communication services segment is a critical audit matter is a high degree of auditor effort in performing procedures related to the Company’s revenue recognition.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.

These procedures included testing the effectiveness of controls relating to the acquisition accounting, including controls over management’s valuation of the customer relationships and orbital slots acquired.

These procedures also included, among others (i) reading the purchase agreement;

(ii) testing management’s process for developing the fair value estimate of the customer relationships and orbital slots acquired;

(iii) evaluating the appropriateness of the multi-period excess earnings and avoided cost methods used by management;

(iv) testing the completeness and accuracy of the underlying data used in the multi-period excess earnings and avoided cost methods;

and (v) evaluating the reasonableness of the significant assumptions used by management related to revenue growth rates, customer attrition rates, discount rates, and contributory asset charges for customer relationships and hypothetical lease payments, discount rates, and contributory asset charges for orbital slots.

Evaluating management’s assumptions related to revenue growth rates for customer relationships involved considering (i) the current and past performance of the Inmarsat business;

(ii) the consistency with external market and industry data;

and (iii) whether the assumptions were consistent with evidence obtained in other areas of the audit.

Evaluating management’s assumptions related to hypothetical lease payments for orbital slots involved considering (i) the consistency with external market and industry data;

and (ii) whether the assumptions were consistent with evidence obtained in other areas of the audit.

Professionals with specialized skill and knowledge were used to assist in evaluating (i) the appropriateness of the multi-period excess earnings and avoided cost methods and (ii) the reasonableness of the discount rate, customer attrition rates and contributory asset charges assumptions for customer relationships and the hypothetical lease payments, discount rates, and contributory asset charges assumptions for orbital slots.

These procedures included testing the effectiveness of controls relating to the revenue recognition process, including controls over the recording of the communication services revenue at the transaction price based upon either a period of time or usage.

These procedures also included, among others (i) testing revenue recognized for a sample of revenue transactions by obtaining and inspecting source documents, such as contracts, purchase orders, invoices, proof of transfer of control to the customer, and cash receipts;

and (ii) confirming a sample of outstanding customer invoice balances as of March 31, 2025 and, for confirmations not returned, obtaining and inspecting source documents, such as invoices, proof of transfer of control to the customer, and subsequent cash receipts.

/s/ PricewaterhouseCoopers LLP

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Cash and cash equivalents

Restricted cash

Accounts receivable, net

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5,000,000 shares authorized;

no shares issued and outstanding at March 31, 2024 and 2023,

no shares issued and outstanding at both March 31, 2025 and 2024

Common stock, $ 0.0001 par value, 200,000,000 shares authorized;

125,849,088 and 76,912,016 shares outstanding at March 31, 2024 and 2023,

130,210,407 and 125,849,088 shares outstanding at March 31, 2025 and 2024, respectively

Paid-in capital

Retained earnings

Retained earnings (accumulated deficit)

Accumulated other comprehensive income (loss)

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(In thousands, except per share data)

Product revenues

Service revenues

Product revenues

Total revenues

Operating expenses:

Cost of product revenues

Cost of service revenues

Selling, general and administrative (including satellite impairment and related charges, net — see Note 1 — The Company and a Summary of Its Significant Accounting Policies — Property, equipment and satellites)

Cost of product revenues

Selling, general and administrative (including ground network (FY25), satellite (FY24) impairment and related charges, net — see Note 1)

Independent research and development

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Interest expense

Other income, net

(Loss) gain on extinguishment of debt, net

Other income (expense), net

Income (loss) from continuing operations before income taxes

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Stock-based compensation expense

Satellite impairment and disposition of fixed assets losses, net

Gain on disposition of business prior to costs to sell

Ground network (FY25) and satellite (FY24) impairment, and disposition of fixed assets losses, net

Loss (gain) on extinguishment of debt, net

Deferred income taxes and other non-cash adjustments

Gain on disposition of business prior to costs to sell

Increase (decrease) in cash resulting from changes in operating assets

and liabilities, net of effect of acquisitions:

and liabilities, net of effect of acquisition:

Accounts receivable

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Purchase of property, equipment and satellites, and other assets

Payments related to acquisition of businesses, net of cash acquired

Proceeds from insurance claims on satellites

Proceeds from sale of businesses

Payment related to acquisition of business, net of cash acquired

Proceeds from sale of short-term investments

Payments to acquire short-term investments

Proceeds from sale of business

Net cash provided by (used in) investing activities

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Non-cash investing and financing activities:

Issuance of common stock in connection with acquisition

Issuance of common stock in satisfaction of certain accrued

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Capital expenditures not paid for during the period

Issuance of common stock in connection with acquisition

See accompanying notes to the consolidated financial statements.

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Balance at March 31, 2022

Exercise of stock options

Issuance of stock under

Employee Stock

Purchase Plan

Employee Stock Purchase Plan

Stock-based compensation

Shares issued in settlement

of certain accrued

employee compensation

RSU awards vesting, net of

shares withheld for taxes

Shares issued in settlement of certain

accrued employee compensation liabilities

RSU awards vesting, net of shares withheld for taxes

which have been retired

Shares issued in connection

with acquisition of business

Other noncontrolling interest activity

Net income (loss)

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Balance at March 31, 2023

Exercise of stock options

Issuance of stock under

Employee Stock

Purchase Plan

Employee Stock Purchase Plan

Stock-based compensation

Shares issued in settlement

of certain accrued

employee compensation

RSU awards vesting, net of

shares withheld for taxes

Shares issued in settlement of certain

accrued employee compensation liabilities

RSU awards vesting, net of shares withheld for taxes

which have been retired

Shares issued in connection with acquisition of business,

net of issuance costs

Other noncontrolling interest activity

Net income (loss)

Other comprehensive

income (loss), net of tax

Other comprehensive income (loss),

Balance at March 31, 2024

Exercise of stock options

Issuance of stock under Employee Stock Purchase

Issuance of stock under

Employee Stock Purchase Plan

Stock-based compensation

Shares issued in settlement of certain accrued

employee compensation liabilities

Shares issued in settlement of certain

accrued employee compensation liabilities

RSU awards vesting, net of shares withheld for taxes

which have been retired

Shares issued in connection with acquisition of business, net of issuance costs

Other noncontrolling interest activity

Net income (loss)

Other comprehensive

income (loss), net of tax

Other comprehensive income (loss),

Balance at March 31, 2025

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(TrellisWare).

During the first quarter of fiscal year 2024, the Company completed the acquisition of Connect Topco Limited, a private company limited by shares and incorporated in Guernsey (Inmarsat Holdings and, together with its subsidiaries, Inmarsat), while during the first quarter of fiscal year 2022, the Company completed the acquisitions of the remaining 51 % interest in Euro Broadband Infrastructure Sàrl (EBI) and RigNet, Inc.

(RigNet) (see Note 4 — Acquisitions for more information).

The acquisitions were accounted for as purchases and accordingly, the consolidated financial statements include the operating results of Inmarsat, EBI and RigNet from the dates of acquisition.

In fiscal year 2024, the Company completed the acquisition of Connect Topco Limited, a private company limited by shares and incorporated in Guernsey (Inmarsat Holdings and, together with its subsidiaries, are referred to herein as Inmarsat, and such acquisition, the Inmarsat Acquisition).

The Inmarsat Acquisition was accounted for as a purchase and accordingly, the consolidated financial statements include the operating results of Inmarsat from the date of acquisition.

All significant intercompany amounts have been eliminated.

Investments in entities in which the Company can exercise significant influence, but does not own a majority equity interest or otherwise control, are accounted for using the equity method and are included as investment in unconsolidated affiliate in other assets (long-term) on the consolidated balance sheets.

Certain prior period amounts have been reclassified to conform to the current period presentation.

Discontinued Operations

On October 1, 2022, the Company entered into an Asset Purchase Agreement to sell certain assets and assign certain liabilities comprising the Company’s Link-16 Tactical Data Links business (the Link-16 TDL Business), part of the Company’s government systems segment, to L3Harris Technologies, Inc.

On October 1, 2022, the Company entered into an Asset Purchase Agreement to sell certain assets and assign certain liabilities comprising the Company’s Link-16 Tactical Data Links business (the Link-16 TDL Business), part of the Company’s defense and advanced technologies segment, to L3Harris Technologies, Inc.

(L3Harris) in exchange for approximately $ 1.96 billion in cash, subject to certain adjustments (the Link-16 TDL Sale) .

In accordance with the authoritative guidance for discontinued operations (Accounting Standards Codification (ASC) 205-20), the Company determined that the Link-16 TDL Business met held-for sale and discontinued operations accounting criteria at the end of the second quarter of fiscal year 2023.

Accordingly, the Company classified the results of the Link-16 TDL Business as discontinued operations in its consolidated statements of operations for the fiscal years ended March 31, 2023 and 2022.

Accordingly, the Company classified the results of the Link-16 TDL Business as discontinued operations in its consolidated statements of operations for the fiscal year ended March 31, 2023.

On January 3, 2023, the Company completed the Link-16 TDL Sale.

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Cash equivalents consist of highly liquid investments with original maturities of three months or less at the date of purchase, with a significant portion held in U.S.

government-backed qualified money-market securities.

government-backed securities and treasuries.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Restricted cash

Restricted cash relates to deposits required by certain counterparties as collateral pursuant to outstanding letters of credit.

Restricted cash as of March 31, 2024 and March 31, 2023 was zero and $ 30.5 million, respectively.

In accordance with the authoritative guidance for the statement of cash flows (ASU 230), the following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that total to the amounts shown in the consolidated statements of cash flows.

March 31, 2024

March 31, 2023

(In thousands)

Cash and cash equivalents

Restricted cash

Total cash and cash equivalents and restricted cash shown in the consolidated statements of cash flows

Accounts receivable and allowance for doubtful accounts

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In addition, none of the Company’s commercial customers comprised 10% or more of total revenues for fiscal years 2025, 2024 and 2023.

The Company's five largest contracts generated approximately 16 % , 17 % and 17 % of the Company’s total revenues for the fiscal years ended March 31, 2024, 2023 and 2022, respectively.

The Company's five largest contracts generated approximately 18 % , 16 % and 17 % of the Company’s total revenues for fiscal years 2025, 2024 and 2023, respectively.

The Company relies on a limited number of contract manufacturers to produce its products.

Inventory is valued at the lower of cost and net realizable value, cost being determined by the weighted average cost method.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Property, equipment and satellites

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Leasehold improvements are capitalized and amortized using the straight-line method over the shorter of the lease term or the life of the improvement.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Costs related to internally developed software for internal uses are capitalized after the preliminary project stage is complete and are amortized over the estimated useful lives of the assets, which are approximately three to seven years .

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Interest expense is capitalized on the carrying value of assets under construction, in accordance with the authoritative guidance for the capitalization of interest (ASC 835-20).

With respect to the construction of satellites, gateway and networking equipment and other assets under construction, the Company capitalized $ 227.5 million, $ 159.7 million and $ 102.1 million of interest expense for the fiscal years ended March 31, 2024, 2023 and 2022, respectively.

The Company's complementary fleet of 20 in service or operational satellites spans the Ka-, L- and S- bands, with ten high-bandwidth Ka-band satellites, eight high-availability L-band satellites (three of which are contingency L-band satellites that are operational but not currently in service), an S-band satellite that supports the European Aviation Network (EAN) to provide IFC services to commercial airlines in Europe, and an I-6 class hybrid Ka-/L-band satellite (the I-6 F1 satellite).

In addition, the ViaSat-3 F1 satellite has nearly completed in-orbit testing, and is expected to be integrated into the Company's existing satellite fleet initially covering the Americas.

Furthermore, the Company has ten additional geostationary (GEO) and highly-elliptical earth orbit (HEO) satellites under development:

two additional high-capacity Ka-band GEO satellites (ViaSat-3 F2 and ViaSat-3 F3), three additional adaptive Ka-band GEO satellites:

(Inmarsat GX 7, GX 8 and GX 9), two Ka-band HEO satellite payloads intended to provide polar coverage (Inmarsat GX 10a and GX 10b) and three Inmarsat-8 L-band GEO safety service satellites.

With respect to the construction of satellites, gateway and networking equipment and other assets under construction, the Company capitalized $ 215.4 million, $ 227.5 million and $ 159.7 million of interest expense during fiscal years 2025, 2024 and 2023, respectively.

The Company's complementary fleet of 23 in service or operational satellites spans the Ka-, L- and S- bands, with 13 Ka-band satellites, eight high-availability L-band satellites (three of which are contingency L-band satellites that are operational but not currently in commercial service), an S-band satellite that supports the European Aviation Network (EAN) to provide in-flight connectivity (IFC) services to commercial airlines in Europe, and an Inmarsat-6 class hybrid Ka-/L-band satellite (the I-6 F1 satellite).

In late July 2024, the ViaSat-3 F1 satellite completed in-orbit testing and was integrated into the Company's existing satellite fleet covering the Americas.

In May 2025, subsequent to fiscal year end, two Ka-band highly-elliptical earth orbit satellite payloads (GX10A and GX10B) were put in service to provide polar coverage for government customers, with commercial maritime and aviation services anticipated to follow during fiscal year 2026.

Furthermore, the Company has eight additional geostationary earth orbit (GEO) satellites under development:

two additional high-capacity Ka-band GEO satellites (ViaSat-3 F2 and ViaSat-3 F3), three additional adaptive Ka-band GEO satellites (GX 7, GX 8 and GX 9) and three Inmarsat-8 L-band GEO safety service satellites.

In addition to the Company's satellite fleet, the Company has purchased capacity on and has access to additional regional partner satellites.

In addition, the Company owns related earth stations and networking equipment for all of its satellites.

The Company procures CPE units leased to customers in order to connect to the Company's satellite network as part of the Company’s satellite services segment, which are reflected in investing activities and property, equipment and satellites, net in the accompanying consolidated financial statements.

The Company procures CPE units leased to customers in order to connect to the Company's satellite network as part of the Company’s communication services segment, which are reflected in investing activities and property, equipment and satellites, net in the accompanying consolidated financial statements.

The Company depreciates the satellites, earth stations and networking equipment, CPE units and related installation costs over their estimated useful lives.

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The total cost and accumulated depreciation of CPE units included in property, equipment and satellites, net, as of March 31, 2024 were $ 567.5 million and $ 267.4 million, respectively.

As part of the Company's continued integration of its networks and related satellite portfolio, in the fourth quarter of fiscal year 2025, the Company determined that it would exit from certain locations in EMEA markets, dispose of certain related assets and terminate certain related long-term contracts.

As a result, the Company recorded $ 169.4 million of impairment charges and other liabilities related to such exit activities in the fourth quarter of fiscal year 2025 in selling, general and administrative expenses in its communication services segment in the consolidated statements of operations and comprehensive income (loss).

The Company launched the first of its third-generation ViaSat-3 class satellites, ViaSat-3 F1, into orbit on April 30, 2023.

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In connection with the root cause analysis, the Company determined that while the satellite payload is functional, the Company will recover less than 10 % of the planned throughput on the ViaSat-3 F1 satellite.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

On August 24, 2023, the Company reported that the I-6 F2 satellite, which was launched on February 18, 2023, suffered a power subsystem anomaly during its orbit raising phase.

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The I-6 F1 satellite, which was launched in December 2021, is operational and continues to perform as expected.

As a result of the anomalies that occurred with respect to the ViaSat-3 F1 and I-6 F2 satellites, as well as the impact of integration efforts related to the Inmarsat Acquisition, the Company undertook extensive analysis of its existing integrated satellite fleet and ongoing satellites under construction projects, taking into account its anticipated future capacity needs, projected capital investment profile and access to third party satellites under existing bandwidth arrangements.

Based on the impairment analysis performed during the second quarter of fiscal year 2024, as a result of the anomalies experienced in the two satellites and integration impact related to the Inmarsat Acquisition, the Company recorded a reduction to the carrying value of satellites under construction (including capitalized interest) and certain related assets of approximately $ 1.67 billion during the fiscal year ended March 31, 2024 (based on the Company's originally estimated ViaSat-3 F1 satellite output capabilities compared to the anticipated potential and configured capacity of the ViaSat-3 F1 satellite, the full value of the I-6 F2 satellite and the ViaSat-4 satellite program, each a separate asset group), which was partially offset by insurance claim receivables of approximately $ 770.0 million recorded in the third quarter of fiscal year 2024.

As a result, the Company recorded a net loss of approximately $ 905.5 million during the fiscal year ended March 31, 2024, including liabilities associated with the termination of certain subcontractor agreements, in selling, general and administrative expenses in its satellite services segment in the consolidated statements of operations and comprehensive income (loss).

During the fourth quarter of fiscal year 2024, the Company received approximately $ 508.6 million in insurance recovery proceeds related to such claims, and subsequent to the fiscal year ended March 31, 2024 , nearly $ 75 million in additional insurance recovery proceeds were received.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

During fiscal year 2024, as a result of the anomalies that occurred with respect to the ViaSat-3 F1 and I-6 F2 satellites as well as the impact of integration efforts related to the Inmarsat Acquisition, the Company undertook extensive analysis of its existing integrated satellite fleet and ongoing satellites under construction projects, taking into account its anticipated future capacity needs, projected capital investment profile and access to third party satellites under existing bandwidth arrangements.

Based on the impairment analysis performed during the second quarter of fiscal year 2024, as a result of the anomalies experienced in the two satellites and integration impact related to the Inmarsat Acquisition, the Company recorded a reduction to the carrying value of satellites under construction (including capitalized interest) for fiscal year 2024 of approximately $ 1.67 billion (based on the Company's originally estimated ViaSat-3 F1 satellite output capabilities compared to the anticipated potential and configured capacity of the ViaSat-3 F1 satellite, the full value of the I-6 F2 satellite and the ViaSat-4 satellite program, each a separate asset group), which was partially offset by total insurance claim receivables of approximately $ 770.0 million.

As a result, the Company recorded a net loss of approximately $ 905.5 million during fiscal year 2024, including liabilities associated with the termination of certain subcontractor agreements, in selling, general and administrative expenses in its communication services segment in the consolidated statements of operations and comprehensive income (loss).

During fiscal years 2025 and 2024 , the Company received approximately $ 251.5 million and $ 508.6 million, respectively, in insurance recovery proceeds related to such claims.

Subsequent to fiscal year 2025 , approximately $ 10.0 million in additional insurance recovery proceeds were received, marking the full receipt of all insurance recovery proceeds related to such claims.

Occasionally, the Company may enter into finance lease arrangements for various machinery, equipment, computer-related equipment, software, furniture, fixtures, or satellites.

The Company records amortization of assets leased under finance lease arrangements within depreciation expense (see Note 1 — The Company and a Summary of Its Significant Accounting Policies — Leases and Note 7 — Leases for more information).

The Company records amortization of assets leased under finance lease arrangements (upon lease commencement) within depreciation expense (see Note 1 — The Company and a Summary of Its Significant Accounting Policies — Leases and Note 7 — Leases for more information).

Cloud computing arrangements

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As of March 31, 2025 and 2024 , the related accumulated amortization was $ 18.4 million and $ 9.5 million, respectively.

During the fiscal year ended March 31, 2024 the Company recognized amortization of capitalized implementation costs of $ 4.2 million, and an insignificant amount during the fiscal years ending March 31, 2023 and 2022 .

The Company recognized amortization of capitalized implementation costs of $ 8.8 million, $ 4.2 million, and an insignificant amount during fiscal years 2025, 2024 and 2023 , respectively.

Lessee accounting

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A lease is classified as a finance lease when one or more of the following criteria are met:

(1) the lease transfers ownership of the asset by the end of the lease term, (2) the lease contains an option to purchase the asset that is reasonably certain to be exercised, (3) the lease term is for a major part of the remaining useful life of the asset, (4) the present value of the lease payments equals or exceeds substantially all of the fair value of the asset or (5) the asset is of such a specialized nature that it is expected to have no

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

alternative use to the lessor at the end of the lease term.

A lease is classified as an operating lease if it does not meet any of these criteria.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

At the lease commencement date, the Company recognizes a right-of-use asset and a lease liability for all leases, except short-term leases with an original term of 12 months or less.

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Amortization of intangible assets that have finite lives is provided for by the straight-line method over the shorter of the legal or estimated economic life.

Total capitalized costs related to patents of $ 3.9 million and $ 3.7 million were included in other assets as of March 31, 2024 and 2023 , respectively.

The Company capitalized costs of $ 117.0 million (including amounts acquired through the Inmarsat Acquisition) and $ 77.0 million related to acquiring and obtaining orbital slots and other licenses included in other assets as of March 31, 2024 and 2023 , respectively.

Total capitalized costs related to patents, orbital slots and other licenses of $ 129.4 million and $ 120.9 million were included in other assets as of March 31, 2025 and 2024 , respectively.

Accumulated amortization related to these assets was $ 10.2 million and $ 8.4 million as of March 31, 2025 and 2024 , respectively.

Amortization expense related to these assets was an insignificant amount for each of the fiscal years ended March 31, 2024, 2023, and 2022.

Amortization expense related to these assets was $ 1.9 million for fiscal year 2025, and an insignificant amount for each of fiscal years 2024 and 2023.

If a patent, orbital slot or other license is rejected, abandoned or otherwise invalidated, the unamortized cost is expensed in that period.

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Debt issuance costs are amortized and recognized as interest expense using the effective interest rate method, or, when the results are not materially different, on a straight-line basis over the expected term of the related debt.

The Company capitalized $ 53.9 million, zero and $ 7.8 million of debt issuance costs during fiscal years 2024, 2023 and 2022 , respectively.

The Company capitalized $ 35.6 million, $ 53.9 million and zero debt issuance costs during fiscal years 2025, 2024 and 2023 , respectively.

Unamortized debt issuance costs related to extinguished debt are expensed at the time the debt is extinguished and recorded in loss on extinguishment of debt in the consolidated statements of operations and comprehensive income (loss).

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Debt issuance costs related to the Company's revolving credit facilities (collectively, the Revolving Credit Facilities) are recorded in other long-term assets in the consolidated balance sheets in accordance with the authoritative guidance for imputation of interest (ASC 835-30).

Debt issuance costs related to the Company’s senior secured and senior unsecured notes (collectively, the Notes) and senior secured term loan credit facilities (together with the Revolving Credit Facilities, the Credit Facilities) are recorded as a direct deduction from the carrying amount of the related debt, consistent with debt discounts, in accordance with the authoritative guidance for imputation of interest (ASC 835-30).

Software development

Costs of developing software for sale are charged to independent research and development expense when incurred, until technological feasibility has been established.

Costs of developing software for sale are charged to independent research and development (IR&D) expense when incurred, until technological feasibility has been established.

Software development costs incurred from the time technological feasibility is reached until the product is available for general release to customers are capitalized and reported at the lower of unamortized cost or net realizable value.

Once the product is available for general release, the software development costs are amortized based on the ratio of current to future revenue for each product with an annual minimum equal to straight-line amortization over the remaining estimated economic life of the product, generally within five years .

As of March 31, 2024 and 2023 , the Company has $ 723.9 million and $ 646.2 million, respectively, of capitalized costs related to software developed for resale.

As of March 31, 2025 and 2024 , the Company had $ 780.3 million and $ 723.9 million, respectively, of capitalized costs related to software developed for resale.

Accumulated amortization related to these assets was $ 515.8 million and $ 483.3 million as of March 31, 2025 and 2024 , respectively.

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Amortization expense related to these assets is expected to be in the range of approximately $ 60 million to $ 30 million over each of the next five fiscal years (with the higher end of the range in the earlier fiscal years), estimated based on annual minimum straight-line amortization.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Impairment of long-lived and other long-term assets (property, equipment and satellites, and other assets, including goodwill)

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Any required impairment loss would be measured as the amount by which the asset’s carrying value exceeds its fair value, and would be recorded as a reduction in the carrying value of the related asset and charged to results of operations.

Except for the impairment related to certain of the Company's satellites under construction and satellite programs (as discussed in Note 1 — The Company and a Summary

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

of Its Significant Accounting Policies — Property, equipment and satellites above) in the second and third quarters of fiscal year 2024 and the impairments of certain right-of-use assets in the fourth quarter of fiscal year 2023, no other material impairments were recorded by the Company for fiscal years 2024, 2023 and 2022.

Except for the impairment related to the Company's exit from certain locations in EMEA markets, disposal of certain related assets and termination of certain related long-term contracts in the fourth quarter of fiscal year 2025, the impairment related to certain of the Company's satellites under construction and satellite programs (as discussed in Note 1 — The Company and a Summary of Its Significant Accounting Policies — Property, equipment and satellites above) in the second and third quarters of fiscal year 2024 and the impairment of certain right-of-use assets in the fourth quarter of fiscal year 2023, no other material impairments were recorded by the Company for fiscal years 2025, 2024 and 2023.

See Note 7 — Leases for additional information.

The Company accounts for its goodwill under the authoritative guidance for goodwill and other intangible assets (ASC 350).

The Company accounts for its goodwill under ASC 350.

Current authoritative guidance allows the Company to first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test.

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(1) changes in forecasted operating results and comparing actual results to projections, (2) changes in the industry or its competitive environment since the acquisition date, (3) changes in the overall economy, its market share and market interest rates since the acquisition date, (4) trends in the stock price and related market capitalization and enterprise values, (5) trends in peer companies' total enterprise value metrics, and (6) additional factors such as management turnover, changes in regulation and changes in litigation matters.

Based on the Company’s qualitative assessment performed during the fourth quarter of fiscal year 2024, the Company concluded that it was more likely than not that the estimated fair value of each of the Company’s reporting units exceeded their related carrying value as of March 31, 2024 , and therefore, determined it was not necessary to perform a quantitative impairment analysis.

Furthermore, in addition to qualitative analysis, the Company believes it is appropriate to conduct a quantitative analysis periodically as a prudent review of its reporting unit goodwill fair values.

The Company's quantitative analysis estimates the fair values of the reporting units using discounted cash flows and other indicators of fair value.

The forecast of future cash flow is based on the Company's best estimate of each reporting unit’s future revenue and operating costs, based primarily on existing firm orders, expected future orders, contracts with suppliers, labor resources, general market conditions, successful launch of its satellites currently under construction and other relevant factors.

Based on a quantitative analysis for fiscal year 2025, the Company concluded that estimated fair values of its reporting units exceed their respective carrying values.

Based on the Company’s qualitative and quantitative assessment performed during the fourth quarter of fiscal year 2025, the Company concluded that it was more likely than not that the estimated fair value of each of the Company’s reporting units exceeded their related carrying value as of March 31, 2025 .

No impairments were recorded by the Company related to goodwill and other intangible assets for fiscal years 2025, 2024 and 2023 .

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The estimated fair value of the Company’s long-term borrowings, other long-term interest bearing liabilities and interest rate cap contracts is determined by using available market information for those securities or similar financial instruments (see Note 3 — Fair Value Measurements).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Self-insurance and post-retirement medical benefit liabilities

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This variability may lead to ultimate payments being either greater or less than the amounts presented above.

Self-insurance liabilities have been classified as a current liability in accrued and other liabilities in accordance with the estimated timing of the projected payments.

Self-insurance liabilities have been classified as a current liability in accrued and other liabilities in the consolidated balance sheets in accordance with the estimated timing of the projected payments.

As a part of the Inmarsat Acquisition, the Company assumed a post-retirement medical benefit plan for retired employees (and their dependents) who were employed by Inmarsat before January 1, 1998.

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The annual increase in Inmarsat's contribution to post-retirement medical liability is capped at the United Kingdom Consumer Price Index +1%.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Indemnification provisions

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and transfers from (to) noncontrolling interest

Investments in unconsolidated affiliate — equity method

The Company records its share of the results of such entities within equity in income (loss) of unconsolidated affiliate, net on the consolidated statements of operations and comprehensive income (loss).

The Company monitors such investments for other-than-temporary impairment by considering factors including the current economic and market conditions and the operating performance of the entities and records reductions in carrying values when necessary.

The fair value of privately held investments is estimated using the best available information as of the valuation date, including current earnings trends, undiscounted cash flows, quoted stock prices of comparable public companies, and other company specific information, including recent financing rounds.

Common stock held in treasury

As of March 31, 2024 and 2023 , the Company had no shares of common stock held in treasury.

During fiscal years 2024, 2023 and 2022 , the Company issued 1,547,027 , 1,376,583 and 1,274,311 shares of common stock, respectively, based on the vesting terms of certain restricted stock unit agreements.

In order for employees to satisfy minimum statutory employee tax withholding requirements related to the issuance of common stock underlying these restricted stock unit agreements, the Company repurchased 531,091 , 487,111 and 445,257 shares of common stock at cost and with a total value of $ 11.7 million, $ 16.5 million and $ 23.0 million during fiscal years 2024, 2023 and 2022, respectively.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

immediately retired), as they reduce the number of shares that otherwise would have been issued upon vesting of the restricted stock units.

Common stock held in treasury

As of March 31, 2025 and 2024 , the Company had zero shares of common stock held in treasury.

During fiscal years 2025, 2024 and 2023 , the Company issued 1,575,356 , 1,547,027 and 1,376,583 shares of common stock, respectively, based on the vesting terms of certain restricted stock unit (RSU) agreements.

In order for employees to satisfy minimum statutory employee tax withholding requirements related to the issuance of common stock underlying these RSU agreements, the Company repurchased 553,495 , 531,091 and 487,111 shares of common stock at cost and with a total value of $ 5.5 million, $ 11.7 million and $ 16.5 million during fiscal years 2025, 2024 and 2023, respectively.

Although shares withheld for employee withholding taxes are technically not issued, they are treated as common stock repurchases for accounting purposes (with such shares deemed to be repurchased and then immediately retired), as they reduce the number of shares that otherwise would have been issued upon vesting of the RSUs.

These retired shares remain as authorized stock and are considered to be unissued.

The retirement of treasury stock had no impact on the Company’s total consolidated stockholders’ equity.

As a result of the Inmarsat Acquisition on May 30, 2023 (see Note 4 — Acquisitions for more information), the Company assumed interest rate cap contracts to hedge the variable interest rate under Inmarsat's senior secured term loan facilities (the Inmarsat Term Loan Facilities) (see Note 8 — Senior Notes and Other Long-Term Debt for more information).

The interest rate cap contracts provide protection from Compound SOFR rates over 2 % and covered the total nominal amount of the Inmarsat Term Loan Facilities of $ 1.6 billion and will mature in February 2025.

As a result of the Inmarsat Acquisition (see Note 4 — Acquisition for more information), the Company assumed interest rate cap contracts to hedge the variable interest rate under Inmarsat's senior secured term loan facilities.

The interest rate cap contracts provided protection from Compound SOFR rates over 2 %, covered the total nominal amount of Inmarsat's senior secured term loan facilities of $ 1.6 billion, and matured in February 2025.

At the time of the acquisition, the Company continued to account for the interest rate cap contracts as cash-flow hedges.

Upon amendment of the Inmarsat Term Loan Facilities on March 28, 2024 (see Note 8 — Senior Notes and Other Long-Term Debt for more information), the portion of the interest rate cap contracts related to Inmarsat's new $1.3 billion term loan facility (the New Term Loan Facility) continued to be accounted for as cash-flow hedges, as the interest rate cap contracts remain in place with their original maturity date.

The Company does not use this instrument, or these types of instruments in general, for speculative or trading purposes.

The Company’s objective is to reduce the risk to earnings and cash flows associated with changes in debt with variable interest rates.

Upon amendment of Inmarsat's senior secured term loan facilities on March 28, 2024 (see Note 8 — Senior Notes and Other Long-Term Debt for more information), the portion of the interest rate cap contracts related to Inmarsat's $1.3 billion senior secured term loan facility (the 2024 Inmarsat Term Loan Facility) continued to be accounted for as cash-flow hedges, as the interest rate cap contracts remained in place with their original maturity date.

The Company did not use this instrument, or these types of instruments in general, for speculative or trading purposes.

The Company’s objective was to reduce the risk to earnings and cash flows associated with changes in debt with variable interest rates.

Derivative instruments are recognized as either assets or liabilities in the consolidated balance sheets and are measured at fair value.

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The Company may designate a derivative with periodic cash settlements and a non-zero fair value at hedge inception as the hedging instrument in a qualifying cash flow hedging relationship.

The non-zero fair value of cash flow hedges on the designation date is recognized into income under a systematic and rational method over the life of the hedging instrument and in the same line item on the consolidated statements of operations as the earnings of the hedge item, with the offset recorded to other comprehensive income (loss).

During the fiscal year ended March 31, 2024 , the Company recognized a gain of $ 20.2 million (and related tax expense of $ 5.1 million), in other comprehensive income arising from changes in the fair value of the interest rate cap contracts (designated as cash-flow hedging instruments) related to the Inmarsat Term Loan Facilities.

During the fiscal year ended March 31, 2024 , the Company recorded a decrease of $ 5.5 million (and related tax benefit of $ 1.4 million), to other comprehensive income and interest expense, net of the recognition into income of the non-zero hedge inception fair value (based on the nature of the underlying transaction).

During the fiscal year ended March 31, 2024 , the Company received $ 45.6 million in cash, as a result of periodic cash settlements, which are included in operating cash flows in the consolidated statements of cash flows.

As of March 31, 2024 , the fair value of the Company's interest rate cap contracts was $ 44.5 million recorded in other current assets.

At March 31, 2024 the estimated net amount of unrealized gains or losses related to the interest rate cap contracts that was expected to be reclassified to earnings net of the recognition into income of non-zero hedge inception fair value within the next 12 months was $ 18.6 million.

The non-zero fair value of cash flow hedges on the designation date is recognized into income under a systematic and rational method over the life of the hedging instrument and in the same line item in the consolidated statements of operations as the earnings of the hedge item, with the offset recorded to other comprehensive income (loss).

During fiscal years 2025 and 2024 , the Company recognized a gain of $ 1.2 million (and related tax expense of an insignificant amount) and a gain of $ 20.2 million (and related tax expense of $ 5.1 million), respectively, in other comprehensive income arising from changes in the fair value of the interest rate cap contracts (designated as cash-flow hedging instruments) related to Inmarsat's senior secured term loan facilities.

During fiscal years 2025 and 2024 , the Company recorded a decrease of $ 15.9 million (and related tax benefit of $ 4.0 million) and a decrease of $ 5.5 million (and related tax benefit of $ 1.4 million), respectively, to other comprehensive income and interest expense, net of the recognition into income of the non-zero hedge inception fair value (based on the nature of the underlying transaction).

During fiscal years 2025 and 2024 , the Company received $ 46.3 million and $ 45.6 million in cash, respectively, as a result of periodic cash settlements, which are included in operating cash flows in the consolidated statements of cash flows.

As of March 31, 2024, the fair value of the Company's interest rate cap contracts recorded in other current assets in the consolidated balance sheets was $ 44.5 million.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Foreign currency

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stockholders’ equity.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Other comprehensive income related to the effects of foreign currency translation adjustments attributable to Viasat, Inc.

during fiscal year 2024 was $ 3.0 million, net of an insignificant amount of tax.

Other comprehensive loss related to the effects of foreign currency translation adjustments attributable to Viasat, Inc.

during fiscal year 2023 was $ 13.1 million, net of an insignificant amount of tax.

Other comprehensive loss related to the effects of foreign currency translation adjustments attributed to Viasat, Inc.

during fiscal year 2022 was $ 37.3 million, or $ 31.4 million net of tax.

Other comprehensive income or loss related to the effects of foreign currency translation adjustments attributable to Viasat, Inc.

during fiscal years 2025, 2024 and 2023 was a loss of $ 9.3 million (net of an insignificant amount of tax), a gain of $ 3.0 million (net of an insignificant amount of tax), and a loss of $ 13.1 million (net of an insignificant amount of tax), respectively.

Revenue recognition

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Recognition occurs on a systematic basis over the periods in which the entity recognizes as expenses the related costs for which the grant is intended to compensate.

During the fiscal years ended March 31, 2024 and March 31, 2023, the amounts recorded in the Company’s consolidated financial statements related to these types of arrangements were not material.

During the fiscal years ended March 31, 2025, 2024 and 2023, the amounts recorded in the Company’s consolidated financial statements related to these types of arrangements were not material.

Performance obligations

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As discussed above under “Leases - Lessor accounting”, for broadband equipment leased to customers in conjunction with the delivery of connectivity services, the Company accounts for the lease and non-lease components of connectivity service arrangements as a single performance obligation as the connectivity services represent the predominant component.

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The Company also derives a portion of its revenues from contracts with customers to provide products.

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Government fixed-price contracts, the customer pays the Company either performance-based payments (PBPs) or progress payments.

PBPs are interim payments based on

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

quantifiable measures of performance or on the achievement of specified events or milestones.

PBPs are interim payments based on quantifiable measures of performance or on the achievement of specified events or milestones.

Progress payments are interim payments based on a percentage of the costs incurred as the work progresses.

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Government representatives.

As of March 31, 2024 , the DCMA had approved the Company’s incurred costs through fiscal year 2022 with the exception of 2021, which is pending.

The DCMA is currently auditing the Company's 2023 incurred cost submission.

As of March 31, 2025 , the DCMA had approved the Company’s incurred costs through fiscal year 2022.

The DCAA is currently auditing the Company's fiscal year 2024 recurring incurred cost submissions.

The Company's cost accounting practices are examined for compliance with the applicable Cost Accounting Standards (CAS).

Although the Company has recorded contract revenues subsequent to fiscal year 2022 based upon an estimate of costs that the Company believes will be approved upon final audit or review, the Company does not know the outcome of any ongoing or future audits or reviews and adjustments and if future adjustments exceed the Company’s estimates, its profitability would be adversely affected.

1 unchanged sentence

Government cost reimbursable contracts (see Note 15 — Contingencies for more information).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Evaluation of transaction price

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In the event an agreement includes embedded financing components, the Company recognizes interest expense or interest income on the embedded financing components using the effective interest method.

This methodology uses an implied interest rate which reflects the incremental borrowing rate which would

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

be expected to be obtained in a separate financing transaction.

This methodology uses an implied interest rate which reflects the incremental borrowing rate which would be expected to be obtained in a separate financing transaction.

The Company has elected the practical expedient not to adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less.

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The Company includes in its remaining performance obligations only those contracts and orders for which it has accepted purchase orders.

Remaining performance obligations associated with the Company’s subscribers for fixed consumer and business broadband services in its satellite services segment exclude month-to-month service contracts in accordance with a practical expedient and are estimated using a portfolio approach in which the Company reviews all relevant promotional activities and calculates the remaining performance obligation using the average service component for the portfolio and the average time remaining under the contract.

The Company’s future recurring in-flight connectivity service contracts in its satellite services segment do not have minimum service purchase requirements and therefore are not included in the Company’s remaining performance obligations.

As of March 31, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 3.7 billion, of which the Company expects to recognize a little less than half over the next 12 months, with the balance recognized thereafter .

Remaining performance obligations associated with the Company’s subscribers for fixed consumer and business broadband services in its communication services segment exclude month-to-month service contracts in accordance with a practical expedient and are estimated using a portfolio approach in which the Company reviews all relevant promotional activities and calculates the remaining performance obligation using the average service component for the portfolio and the average time remaining under the contract.

The Company’s future recurring IFC service contracts in its communication services segment do not have minimum service purchase requirements and therefore are not included in the Company’s remaining performance obligations.

As of March 31, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 3.6 billion, of which the Company expects to recognize approximately half over the next 12 months, with the balance recognized thereafter .

Disaggregation of revenue

The Company operates and manages its business in three reportable segments:

satellite services, commercial networks and government systems.

Revenue is disaggregated by products and services, customer type, contract type, and geographic area, respectively, as the Company believes this approach best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors.

The Company operates and manages its business in two reportable segments:

communication services and defense and advanced technologies.

Revenue is disaggregated by products and services, customer type, contract type, business line and geographic area, as the Company believes this approach best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors.

See Note 16 — Segment Information for disaggregation of revenue by business line and additional disaggregated revenue disclosures.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The following sets forth disaggregated reported revenue by segment and product and services for the fiscal years ended March 31, 2024, 2023 and 2022:

The following sets forth disaggregated reported revenue by segment and products and services for the fiscal years ended March 31, 2025, 2024 and 2023:

Fiscal Year Ended March 31, 2025

Communication Services

Defense and Advanced Technologies

Total Revenues

(In thousands)

Product revenues

Service revenues

Product revenues

Total revenues

Fiscal Year Ended March 31, 2024

Communication Services

Defense and Advanced Technologies

Total Revenues

(In thousands)

Product revenues

Service revenues

Product revenues

Total revenues

Fiscal Year Ended March 31, 2023

Communication Services

Defense and Advanced Technologies

Total Revenues

(In thousands)

Product revenues

Service revenues

Product revenues

Total revenues

Revenues from the U.S.

Government as an individual customer comprised approximately 17 % , 17 % and 18 % of total revenues for the fiscal years ended March 31, 2024, 2023 and 2022, respectively, mainly reported within the government systems segment.

Revenues from the Company’s other customers, mainly reported within the commercial networks and satellite services segments, comprised approximately 83 % , 83 % and 82 % of total revenues for the fiscal years ended March 31, 2024, 2023 and 2022, respectively.

Revenues in the Company’s commercial networks and government systems segments are primarily derived from three types of contracts:

fixed-price, cost-reimbursement and time-and-materials contracts.

Fixed-price contracts (which require the Company to provide products and services under a contract at a specified price) comprised approximately 91 % , 88 % and 91 % of the Company’s total revenues for these segments for the fiscal years ended March 31, 2024, 2023 and 2022, respectively.

The remainder of the Company’s revenues in these segments for such periods was derived primarily from cost-reimbursement contracts (under which the Company is reimbursed for all actual costs incurred in performing the contract to the extent such costs are within the contract ceiling and allowable under the terms of the contract, plus a fee or profit) and from time-and-materials contracts (under which the Company is reimbursed for the number of labor hours expended at an established hourly rate negotiated in the contract, plus the cost of materials utilized in providing such products or services).

Historically, a significant portion of the Company’s revenues in its commercial networks and government systems segments has been derived from customer contracts that include the development of products.

Government as an individual customer comprised approximately 18 % , 17 % and 17 % of total revenues for fiscal years 2025, 2024 and 2023, respectively.

Revenues from the U.S.

Government were attributable to each of the communication services segment and defense and advanced technologies segment, with approximately half of such revenues reported within each of these two segments for fiscal years 2025 and 2024, while the majority of revenues from the U.S.

Government was attributable to the defense and advanced technologies segment for fiscal year 2023.

The Company’s revenues are primarily derived from two types of contracts:

fixed-price and cost-reimbursement contracts.

Fixed-price contracts (which require the Company to provide products and services under a contract at a specified price) comprised approximately 96 % , 95 % and 93 % of the Company's total revenues for fiscal years 2025, 2024 and 2023, respectively, a majority of which were reported in the Company's communication services segment.

The remainder of the Company’s revenues for such periods was derived primarily from cost-reimbursement contracts (under which the Company is reimbursed for all actual costs incurred in performing the contract to the extent such costs are within the contract ceiling and allowable under the terms of the contract, plus a fee or profit), which contracts are mainly reported within the Company's defense and advanced technologies segment.

Historically, a portion of the Company’s revenues has been derived from customer contracts that include the development of products.

The development efforts are conducted in direct response to the customer’s specific requirements and, accordingly, expenditures related to such efforts are included in cost of sales when incurred and the related funding (which includes a profit component) is included in revenues.

Revenues for the Company’s funded development from its customer contracts were approximately 12 % , 16 % and 18 % of its total revenues for the fiscal years ended March 31, 2024, 2023 and 2022, respectively.

Revenues for the Company’s funded development from its customer contracts were approximately 11 %, 12 % and 16 % of its total revenues for fiscal years 2025, 2024 and 2023, respectively, mainly reported within the Company's defense and advanced technologies segment.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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The Company receives payments from customers based on a billing schedule established in the Company’s contracts.

When consideration is received in advance of the delivery of goods or services, a contract liability, or with respect to the Company, collections in excess of revenues or deferred revenues, is recorded.

Reductions in the collections in excess of revenues or deferred revenues will be recorded as the Company satisfies the performance obligations.

When consideration is received in advance of the delivery of goods or services, a contract liability, or with respect to the Company, collections in excess of revenues and deferred revenues, is recorded.

Reductions in the collections in excess of revenues and deferred revenues will be recorded as the Company satisfies the performance obligations.

The following table presents contract assets and liabilities as of March 31, 2025 and March 31, 2024:

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Deferred revenues, long-term portion

Unbilled accounts receivable increased $ 51.4 million during fiscal year 2024 , primarily driven by revenue recognized in excess of billings in each of the Company's segments.

The Inmarsat Acquisition (based on preliminary estimates) contributed approximately $ 16.3 million of unbilled accounts receivable.

Collections in excess of revenues and deferred revenues increased by $ 128.1 million during fiscal year 2024, driven primarily by $ 141.5 million contributed by the Inmarsat Acquisition (based on preliminary estimates) in the Company's satellite services segment.

This increase was partially offset by a $ 13.4 million decrease during the fiscal year ended March 31, 2024, driven by revenue recognized in excess of advances received on goods or services primarily in the Company's satellite services segment.

Based on preliminary estimates, the Inmarsat Acquisition contributed approximately $ 862.5 million of deferred revenues (long-term).

This increase was partially offset by a $ 50.8 million decrease during fiscal year 2024, related to amounts reclassified to collections in excess of revenues and deferred revenues in the Company's satellite services segment.

During the fiscal year ended March 31, 2024 , the Company recognized revenue of $ 97.8 million that was previously included in the Company’s collections in excess of revenues and deferred revenues at March 31, 2023.

During the fiscal year ended March 31, 2023 , the Company recognized revenue of $ 115.1 million that was previously included in the Company’s collections in excess of revenues and deferred revenues at March 31, 2022 .

Unbilled accounts receivable increased by $ 24.5 million during fiscal year 2025, primarily driven by revenue recognized in excess of billings primarily in the Company's communication services segment revenues.

Collections in excess of revenues and deferred revenues increased by $ 33.8 million during fiscal year 2025, driven by advances on goods or services received in excess of revenue recognized in each of the Company's segments.

During fiscal year 2025 , the Company recognized revenue of $ 238.6 million that was previously included in the Company’s collections in excess of revenues and deferred revenues at March 31, 2024.

During fiscal year 2024 , the Company recognized revenue of $ 97.8 million that was previously included in the Company’s collections in excess of revenues and deferred revenues at March 31, 2023 .

Other assets and deferred costs – contracts with customers

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ASC 340-40 also requires the recognition of an asset from the costs incurred to fulfill a contract when (1) the costs relate directly to a contract or to an anticipated contract that the Company can specifically identify, (2) the costs generate or enhance resources of the Company that will be used in satisfying (or in continuing to satisfy) performance obligations in the future, and (3) the costs are expected to be recovered.

Adoption of the standard has resulted in the recognition of an asset related to commission costs incurred primarily in the Company’s satellite services segment, and recognition of an asset related to costs incurred to fulfill contracts.

In accordance with the guidance, the Company recognizes an asset related to commission costs incurred, primarily in the Company’s communication services segment, and recognizes an asset related to costs incurred to fulfill contracts.

Costs to acquire customer contracts are amortized over the estimated customer contract life.

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The Company’s deferred customer contract acquisition costs and costs to fulfill contract balances were $ 13.0 million and $ 56.4 million, respectively, as of March 31, 2025 .

Of the Company’s total deferred customer contract acquisition costs and costs to fulfill contracts, $ 20.2 million was included in other current assets within the prepaid expenses and other current assets caption on the Company’s consolidated balance sheet and $ 58.0 million was included

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

in other assets on the Company’s consolidated balance sheet as of March 31, 2024 .

Of the Company’s total deferred customer contract acquisition costs and costs to fulfill contracts, $ 15.2 million was included in other current assets within the prepaid expenses and other current assets caption on the Company’s consolidated balance sheets and $ 54.2 million was included in other assets on the Company’s consolidated balance sheets as of March 31, 2025 .

The Company’s deferred customer contract acquisition costs and costs to fulfill contract balances were $ 23.1 million and $ 55.1 million, respectively, as of March 31, 2024 .

Of the Company’s total deferred customer contract acquisition costs and costs to fulfill contracts, $ 19.8 million was included in other current assets within the prepaid expenses and other current assets caption on the Company’s consolidated balance sheet and $ 61.7 million was included in other assets on the Company’s consolidated balance sheet as of March 31, 2023 .

For total deferred customer contract acquisition costs and contract fulfillment costs, the Company’s amortization and reduction of carrying value associated with contract termination was $ 40.4 million, $ 48.2 million and $ 56.5 million for the fiscal years ended March 31, 2024, 2023 and 2022 , respectively.

For total deferred customer contract acquisition costs and contract fulfillment costs, the Company’s amortization and reduction of carrying value associated with contract termination was $ 33.1 million, $ 40.4 million and $ 48.2 million for fiscal years 2025, 2024 and 2023 , respectively.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Advertising costs

In accordance with the authoritative guidance for advertising costs (ASC 720-35), advertising costs are expensed as incurred and included in selling, general and administrative expenses.

In accordance with the authoritative guidance for advertising costs (ASC 720-35), advertising costs are expensed as incurred and included in selling, general and administrative expenses in the consolidated statements of operations and comprehensive income (loss).

Advertising expenses for fiscal years 2025, 2024 and 2023 were $ 19.2 million, $ 26.4 million and $ 22.8 million, respectively.

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In accordance with the authoritative guidance for share-based payments (ASC 718), the Company measures stock-based compensation cost at the grant date, based on the estimated fair value of the award.

Expense for restricted stock units and stock options is recognized on a straight-line basis over the employee’s requisite service period.

Expense for market-based performance stock options that vest is recognized regardless of the actual outcome achieved and is recognized on a graded-vesting basis.

Expense for RSUs and stock options is recognized on a straight-line basis over the employee’s requisite service period.

Expense for performance-based RSUs (PSUs) with a market condition (such as a stock price milestone) (market condition PSUs) that vest is recognized regardless of the actual outcome achieved and is recognized on a graded-vesting basis.

Expense for PSUs with a performance condition (such as an operational milestone) (performance condition PSUs) that vest is recorded each period based on a probability assessment of the expected outcome of the performance metric with a final adjustment upon measurement at the end of the performance period and is recognized regardless of the actual outcome achieved and is recognized on a graded-vesting basis.

The Company accounts for forfeitures as they occur.

The Company recognizes excess tax benefits or deficiencies on vesting or settlement of awards as discrete items within income tax benefit or provision within net income (loss) and the related cash flows are classified within operating activities.

See Note 9 — Common Stock and Stock Plans to the Company's consolidated financial statements for more information.

Independent research and development

Independent research and development (IR&D), which is not directly funded by a third party, is expensed as incurred.

IR&D expenses consist primarily of salaries and other personnel-related expenses, supplies, prototype materials and other expenses related to research and development programs.

IR&D, which is not directly funded by a third party, is expensed as incurred.

IR&D expenses consist primarily of salaries and other personnel-related expenses, supplies, prototype materials and other expenses related to research and development (R&D) programs.

Accruals for uncertain tax positions are provided for in accordance with the authoritative guidance for accounting for uncertainty in income taxes (ASC 740).

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The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.

The authoritative guidance for accounting for uncertainty in income taxes also provides guidance on derecognition of income tax assets and liabilities, classification of deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and income tax disclosures.

ASC 740 also provides guidance on derecognition of income tax assets and liabilities, classification of deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and income tax disclosures.

The Company’s policy is to recognize interest expense and penalties related to income tax matters as a component of income tax expense.

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Basic earnings per share is computed based upon the weighted average number of common shares outstanding during the period.

Diluted earnings per share is based upon the weighted average number of common shares outstanding and potential common stock, if dilutive during the period.

Potential common stock includes options granted (including market-based performance stock options) and restricted stock units awarded under the Company’s equity compensation plan which are included in the earnings per share calculations using the treasury stock method, common shares expected

Diluted earnings per share is based upon the weighted average number of common shares outstanding and potential common stock, if dilutive during the period, which are included in the earnings per share calculations using the treasury stock method.

Potential common stock includes options granted (including market-based performance stock options), RSUs (other than PSUs), market condition PSUs and performance condition PSUs awarded under the Company’s equity compensation plan, common shares expected to be issued under the Company’s employee stock purchase plan, and shares potentially issuable under the Viasat 401(k) Profit Sharing Plan in connection with the Company’s decision to pay a discretionary match in common stock or cash.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

to be issued under the Company’s employee stock purchase plan, and shares potentially issuable under the Viasat 401(k) Profit Sharing Plan in connection with the Company’s decision to pay a discretionary match in common stock or cash.

Segment reporting

The Company’s reportable segments (satellite services, commercial networks and government systems) are primarily distinguished by the type of customer and the related contractual requirements.

The Company’s satellite services segment provides satellite-based broadband and related services to commercial airlines and other aircraft, residential customers, and enterprises, maritime vessels (acquired through the Inmarsat Acquisition) and other mobile broadband customers, and Prepaid Internet users.

The Company’s commercial networks segment develops and offers advanced satellite and wireless broadband platforms, ground networking equipment, radio frequency and advanced microwave solutions, Application-Specific Integrated Circuit (ASIC) chip design, satellite payload development and space-to-earth connectivity systems, some of which are ultimately used by the Company’s satellite services segment.

The Company’s government systems segment provides global mobile broadband services and narrowband products and services (acquired through the Inmarsat Acquisition) to military and government users and develops and offers network-centric, internet protocol-based fixed and mobile secure communications products and solutions.

The more regulated government environment is subject to unique contractual requirements and possesses economic characteristics which differ from the satellite services and commercial networks segments.

The Company reports its results in two separate segments consisting of communication services and defense and advanced technologies.

The Company's segments are determined consistent with the way management currently organizes and evaluates financial information internally for making operating decisions and assessing performance.

The Company’s reportable segments (communication services and defense and advanced technologies) have been determined based upon their market and economic characteristics while also giving consideration to the structure and management of various business lines.

The reportable segments are primarily determined based upon industry categories and core competencies relating to product or service end market distribution, operations, and servicing and distinguished by the type of customer and, to a lesser extent, the related contractual requirements.

The Company’s communication services segment provides a wide range of broadband and narrowband communications solutions across government and commercial mobility markets, as well as for residential and enterprise fixed broadband customers.

The Company’s defense and advanced technologies segment develops and offers a diverse array of resilient, vertically integrated solutions to government and commercial customers, leveraging the Company’s technical competencies in encryption, cyber security, tactical gateways, modems and waveforms.

The more regulated government environment for defense, encryption and other products is subject to unique contractual requirements and possesses economic characteristics that differ from the communication services segment.

Recent authoritative guidance

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805):

Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.

ASU 2021-08 requires contract assets and contract liabilities acquired in a business combination to be recognized in accordance with ASC 606 as if the acquirer had originated the contracts.

The Company adopted the new guidance prospectively in the first quarter of fiscal year 2024 and applied its provisions to the Inmarsat Acquisition (see Note 4 — Acquisitions).

In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815):

Fair Value Hedging—Portfolio Layer Method.

ASU 2022-01 clarifies the accounting and promotes consistency in reporting for hedges where the portfolio layer method is applied.

The Company adopted the new guidance in the first quarter of fiscal year 2024 and the guidance did not have a material impact on its consolidated financial statements and disclosures.

In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (ASC 326):

Troubled Debt Restructurings and Vintage Disclosures.

ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings by creditors in Subtopic 310-40, Receivables – Troubled Debt Restructurings by Creditors, while enhancing certain disclosure requirements for loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty.

Furthermore, it requires that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments – Credit Losses – Measured at Amortized Cost.

The Company adopted the new guidance prospectively in the first quarter of fiscal year 2024 and the guidance did not have a material impact on its consolidated financial statements and disclosures.

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (ASC 820):

In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement ( Topic 820):

Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions.

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The standard also requires certain disclosures for equity securities that are subject to contractual restrictions.

The new standard will become effective for the Company beginning in fiscal year 2025.

The adoption of ASU 2022-03 is not expected to have a material impact on the Company's consolidated financial statements.

In Septem ber 2022, the FASB issued ASU 2022-04, Liabilities – Supplier Finance Programs (Subtopic 405-50):

Disclosure of Supplier Finance Program Obligations.

ASU 2022-04 enhances the transparency of supplier finance programs.

In each annual reporting period, the buyer in a supplier finance program is required to disclose information about the key terms of the program, the outstanding confirmed amounts, a rollforward of such amounts, and a description of where those obligations are presented in the balance sheet.

In each interim reporting period, the buyer should disclose the outstanding confirmed amounts as of the end of the interim period.

T he Company adopted the new guidance in the first quarter of fiscal year 2024 (including early adoption of the amendment on the rollforward information) and the guidance did not have a material impact on its consolidated financial statements and disclosures.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The Company adopted the new guidance in the first quarter of fiscal year 2025 and the guidance did not have a material impact on its consolidated financial statements and disclosures.

In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842) – Common Control Agreements.

The amendments in this update that apply to public business entities clarify the accounting for leasehold improvements associated with common control leases.

The new standard will become effective for the Company beginning in fiscal year 2025.

The adoption of ASU 2023-01 is not expected to have a material impact on the Company's consolidated financial statements.

In July 2023, the FASB issued ASU 2023-03, Presentation of Financial Statements (Topic 205), Income Statement – Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation – Stock Compensation (Topic 718).

This ASU amends various paragraphs in the accounting codification pursuant to the issuance of Commission Staff Accounting Bulletin (SAB) number 120.

The ASU provides clarifying guidance related to employee and non-employee share-based payment accounting, including guidance related to spring-loaded awards.

ASU 2023-03 is effective upon issuance.

The adoption of this guidance upon issuance did not have a material impact on the Company’s consolidated financial statements and disclosures.

The Company adopted the new guidance in the first quarter of fiscal year 2025 and the guidance did not have a material impact on its consolidated financial statements and disclosures.

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements:

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This ASU requires public entities to enhance disclosures about their reportable segments' significant expenses on an interim and annual basis.

The new standard will become effective for the Company's annual disclosures beginning in fiscal year 2025 and for interim disclosures beginning in fiscal year 2026 on a retrospective basis.

Early adoption is permitted.

The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures.

Beginning with the annual reporting of fiscal year 2025, the Company adopted the new guidance on a retrospective basis.

See Note 16 — Segment Information for additional information.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

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The new standard will become effective for the Company beginning in fiscal year 2026.

Early adoption is permitted and should be applied prospectively, however retrospective application is permitted.

The Company is currently evaluating the impact of this standard on its consolidated financial statement disclosures .

Early adoption is permitted and the new standard should be applied prospectively, however retrospective application is permitted.

The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures.

In March 2024, the FASB issued ASU 2024-02, Codification Improvements – Amendments to Remove References to the Concepts Statements.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses.

This ASU requires additional disclosures about certain categories of costs and expenses in the notes to financial statements.

As clarified in ASU 2025-01, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40):

Clarifying the Effective Date, the new standard will become effective for the Company’s annual disclosures beginning in fiscal year 2028 and for interim disclosures beginning in fiscal year 2029.

Early adoption is permitted and the amendments should be applied either prospectively to financial statements issued for reporting periods after the effective date of the ASU or retrospectively to any or all periods presented in the financial statements.

The Company is currently evaluating the impact of this standard on its consolidated financial statements and disclosures.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Note 2 — Composition of Certain Balance Sheet Captions

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Interest payable

Income taxes payable

Other liabilities:

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Cash equivalents

Interest rate cap contracts

Total assets measured at fair value on a recurring basis

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Cash equivalents

Interest rate cap contracts

Total assets measured at fair value on a recurring basis

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Cash equivalents — The Company’s cash equivalents consist of money market funds, with a significant portion held in U.S.

government backed qualified money-market securities.

Interest rate cap contracts — The Company assumed interest rate cap contracts to hedge the variable interest rate under the Inmarsat Term Loan Facilities (see Note 1 — The Company and a Summary of Its Significant Accounting Policies — Derivatives for more information).

The Company’s interest rate cap contracts are valued using the forward interest rate curve at each reporting date (Level 2).

Contingencies — In connection with the acquisition of the remaining 51 % interest in EBI on April 30, 2021 (see Note 4 — Acquisitions for more information), part of the purchase price consideration was determined approximately two years after the closing date, and as a result the Company received € 20.0 million, or approximately $ 22.0 million, in cash and recorded a gain of approximately $ 18.1 million in the second quarter of fiscal year 2024 in selling, general and administrative expenses in the consolidated statements of operations and comprehensive income (loss) .

The consideration paid was contingent based on certain outcomes as defined in the acquisition agreement.

Each reporting period, the Company estimated the fair value of the contingent consideration based on unobservable inputs and probability weightings using standard valuation techniques (Level 3).

The fair value amount was recorded in other current assets within the prepaid expenses and other current assets caption on the Company's consolidated balance sheets as of March 31, 2023 and any change to fair value was recorded in the Company’s consolidated statements of operations each reporting period.

As of March 31, 2023 and for the fiscal years ended March 31, 2024, 2023 and 2022 the Company’s fair value estimate, and change in fair value of the contingent consideration were immaterial.

government-backed securities and treasuries.

Interest rate cap contracts — The Company assumed interest rate cap contracts to hedge the variable interest rate under Inmarsat's senior secured term loan facilities (see Note 1 — The Company and a Summary of Its Significant Accounting Policies — Derivatives for more information).

The Company’s interest rate cap contracts were valued using the forward interest rate curve at each reporting date (Level 2).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Long-term debt — As of March 31, 2024, the Company’s long-term debt was comprised of (1) $700.0 million in aggregate principal amount of Viasat's 5.625% Senior Notes due 2025 (the 2025 Notes), $600.0 million in aggregate principal amount of Viasat's 5.625% Senior Secured Notes due 2027 (the 2027 Notes), $400.0 million in aggregate principal amount of Viasat's 6.500% Senior Notes due 2028 (the 2028 Notes), $733.4 million in aggregate principal amount of Viasat’s 7.500% Senior Notes due 2031 (the 2031 Notes), $2.08 billion in aggregate principal amount of Inmarsat's 6.750% Senior Secured Notes due 2026 (the Inmarsat 2026 Notes), (2) borrowings under Viasat’s $700.0 million senior secured term loan facility (the 2022 Term Loan Facility), borrowings under Viasat’s $616.7 million senior secured term loan facility (the 2023 Term Loan Facility), borrowings under the Inmarsat Term Loan Facilities and borrowings under Viasat’s direct loan facility with the Export-Import Bank of the United States (the Ex-Im Credit Facility and, together with the 2022 Term Loan Facility, the 2023 Term Loan Facility, the Inmarsat Term Loan Facility and the Revolving Credit Facilities, the Credit Facilities), and (3) finance lease obligations reported at the present value of future minimum lease payments with current accrued interest.

Long-term debt — As of March 31, 2025, the Company’s long-term debt (including current portion) was comprised of (1) $442.6 million in aggregate principal amount of Viasat's 5.625% Senior Notes due 2025 (the 2025 Notes) (which were redeemed in full subsequent to fiscal year end), $600.0 million in aggregate principal amount of Viasat's 5.625% Senior Secured Notes due 2027 (the 2027 Notes), $400.0 million in aggregate principal amount of Viasat's 6.500% Senior Notes due 2028 (the 2028 Notes), $1.975 billion in aggregate principal amount of Inmarsat's 9.000% Senior Secured Notes due 2029 (the Inmarsat 2029 Notes), and $733.4 million in aggregate principal amount of Viasat’s 7.500% Senior Notes due 2031 (the 2031 Notes), (2) borrowings under Viasat’s $700.0 million senior secured term loan facility (the 2022 Term Loan Facility), borrowings under Viasat’s $616.7 million senior secured term loan facility (the 2023 Term Loan Facility), borrowings under the 2024 Inmarsat Term Loan Facility, borrowings under Inmarsat’s original senior secured term loan facility (the Original Inmarsat Term Loan Facility and, together with the 2024 Inmarsat Term Loan Facility, the Inmarsat Term Loan Facilities) and borrowings under Viasat’s direct loan facility with the Export-Import Bank of the United States (the Ex-Im Credit Facility), and (3) finance lease obligations reported at the present value of future minimum lease payments with current accrued interest.

Long-term debt related to the Revolving Credit Facilities is reported at the outstanding principal amount of borrowings, while long-term debt related to the Company's other Credit Facilities and the Notes is reported at amortized cost.

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The fair value of the Company’s long-term debt related to the Company's variable rate Credit Facilities approximates its carrying amount due to its variable interest rate, which approximates a market interest rate.

As of March 31, 2024 and 2023 , the fair value of the Company’s long-term debt related to the (fixed rate) Ex-Im Credit Facility was Level 2 and was approximately $ 38.5 million and $ 57.1 million, respectively.

As of March 31, 2024 and 2023 , the estimated fair value of the Company’s outstanding long-term debt related to each series of Notes was Level 2 and was $ 680.8 million and $ 661.5 million, respectively, for the 2025 Notes, $ 564.0 million and $ 561.7 million, respectively, for the 2027 Notes, and $ 307.5 million and $ 292.0 million, respectively, for the 2028 Notes.

As of March 31, 2024, the fair value of the Company's long-term debt related to the 2031 Notes and the Inmarsat 2026 Notes was Level 2 and was $ 529.9 million and $ 2.04 billion, respectively.

As of March 31, 2025 and 2024 , the fair value of the Company’s long-term debt related to the Ex-Im Credit Facility was Level 2 and was approximately $ 19.2 million and $ 38.5 million, respectively.

As of March 31, 2025 and 2024 , the estimated fair value of the Company’s outstanding long-term debt related to each series of Notes was Level 2 and was $ 438.6 million and $ 680.8 million, respectively, for the 2025 Notes, $ 575.0 million and $ 564.0 million, respectively, for the 2027 Notes, $ 350.0 million and $ 307.5 million, respectively, for the 2028 Notes, and $ 552.8 million and $ 529.9 million, respectively, for the 2031 Notes.

As of March 31, 2025 , the estimated fair value of Inmarsat 2029 Notes was Level 2 and was $ 1.82 billion.

As of March 31, 2024 , the estimated fair value of Inmarsat's 6.750 % Senior Secured Notes due 2026 (the Inmarsat 2026 Notes) was Level 2 and was $ 2.04 billion.

The Inmarsat 2026 Notes were repurchased and redeemed in full during fiscal year 2025.

Satellite performance incentive obligations — The Company’s contracts with satellite manufacturers require the Company to make monthly in-orbit satellite performance incentive payments with respect to certain satellites in commercial service, including interest, through fiscal year 2028 , subject to the continued satisfactory performance of the applicable satellites.

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As of March 31, 2025 and 2024, the Company’s estimated satellite performance incentive obligations relating to certain satellites in commercial service, including accrued interest, were $ 11.4 million and $ 15.9 million, respectively.

Note 4 — Acquisitions

Inmarsat Acquisition

On May 30, 2023, the Company completed the acquisition of all outstanding shares of Inmarsat Holdings, a privately held leading provider of global mobile satellite communications services.

Contingencies — In connection with the acquisition of the remaining 51 % interest in Euro Broadband Infrastructure Sàrl (EBI) on April 30, 2021, part of the purchase price consideration was determined approximately two years after the closing date, and as a result the Company received € 20.0 million, or approximately $ 22.0 million, in cash and recorded a gain of approximately $ 18.1 million in the second quarter of fiscal year 2024 in selling, general and administrative expenses in the consolidated statements of operations and comprehensive income (loss).

The consideration paid was contingent based on certain outcomes as defined in the acquisition agreement.

Each reporting period, the Company estimated the fair value of the contingent consideration based on unobservable inputs and probability weightings using standard valuation techniques (Level 3).

For both fiscal years 2024 and 2023 , the change in fair value of the contingent consideration was immaterial.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Note 4 — Acquisition

In May 2023, the Company completed the acquisition of all outstanding shares of Inmarsat Holdings, a privately held leading provider of global mobile satellite communications services.

The Inmarsat Acquisition positions the Company as a leading global communications innovator with enhanced scale and scope to connect the world affordably, securely and reliably.

The complementary assets and resources of the combined company position the Company to provide advanced new services in mobile and fixed segments, driving greater customer choice in broadband communications and narrowband services (including the Internet of Things (IoT)).

These benefits and additional opportunities were among the factors that contributed to a purchase price resulting in the recognition of preliminary estimated goodwill of $ 975.3 million and $ 487.6 million which was recognized in the Company's satellite services and government systems segments, respectively.

These benefits and additional opportunities were among the factors that contributed to a purchase price resulting in the recognition of goodwill of $ 1.5 billion which was recognized in the Company's communication services segment.

The goodwill recognized was not deductible for U.S.

and foreign income tax purposes.

In connection with the closing of the Inmarsat Acquisition, the Company's certificate of incorporation was amended to increase the number of shares of common stock authorized for issuance from 100,000,000 to 200,000,000 as previously approved by the Company's stockholders at a special meeting held on June 21, 2022.

The consideration transferred of approximately $ 2.7 billion was comprised of $ 2.1 billion of the fair value of approximately 46.36 million shares of the Company’s common stock issued at the closing of the transaction and $ 550.7 million in cash consideration.

In connection with the Inmarsat Acquisition, the Company recorded acquisition-related transaction costs of $ 31.3 million, $ 40.4 million and $ 26.3 million during fiscal years 2024, 2023 and 2022, respectively, included in selling, general and administrative expenses.

The purchase price allocation is preliminary primarily due to the pending finalization of the Company’s valuation analysis and review of various tax attributes.

The Company allocated the purchase price to tangible and intangible assets

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

acquired and liabilities assumed based on the preliminary estimates of their fair values, which is subject to adjustment for up to one year after the closing of the Inmarsat Acquisition as additional information is obtained.

The preliminary purchase price allocation of the acquired assets and assumed liabilities in the Inmarsat Acquisition based on the preliminary estimated fair values as of May 30, 2023, adjusted since the closing of the Inmarsat Acquisition, primarily between property, equipment and satellites, identifiable intangible assets, deferred tax liabilities and goodwill, is as follows:

In connection with the Inmarsat Acquisition, the Company recorded acquisition-related transaction costs of zero , $ 31.3 million and $ 40.4 million during fiscal years 2025, 2024 and 2023, respectively, included in selling, general and administrative expenses.

The purchase price allocation of the acquired assets and assumed liabilities in the Inmarsat Acquisition based on the estimated fair values as of May 30, 2023, adjusted since the closing of the Inmarsat Acquisition, primarily between property, equipment and satellites, identifiable intangible assets, deferred tax liabilities and goodwill, is as follows:

(In thousands)

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Current liabilities and other long-term liabilities include approximately $ 29.6 million and $ 248.3 million, respectively, of unfavorable contract liabilities amortized into service revenue over a weighted average estimated useful life of approximately nine years.

Estimated amounts assigned to identifiable intangible assets are being amortized on a straight-line basis over their estimated useful lives (which approximates the economic pattern of benefit) and are as follows as of May 30, 2023:

Estimated Fair Value

Average Estimated Useful Life

Amounts assigned to identifiable intangible assets are being amortized on a straight-line basis over their determined useful lives (which approximates the economic pattern of benefit) and are as follows as of May 30, 2023:

Weighted Average Useful Life

(In thousands)

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Additionally, management determined the fair value of acquired orbital slots and spectrum assets using an avoided cost method, which involved the use of significant judgments and assumptions related to hypothetical lease payments, discount rates, and contributory asset charges.

The intangible assets acquired in the Inmarsat Acquisition were determined in accordance with the authoritative guidance for business combinations (ASC 805), based on estimated fair values using valuation techniques consistent with the market approach, income approach and/or cost approach to measure fair value.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The intangible assets acquired in the Inmarsat Acquisition were determined in accordance with ASC 805, based on estimated fair values using valuation techniques consistent with the market approach, income approach and/or cost approach to measure fair value.

The consolidated financial statements include the operating results of Inmarsat from the date of acquisition.

Since the acquisition date on May 30, 2023, the Company recorded approximately $ 1.4 billion in revenue during fiscal year 2024, and $ 214.6 million of net loss during fiscal year 2024, with respect to the Inmarsat business (primarily in the Company’s satellite services segment, with a portion included in its government systems segment and an insignificant amount included in its commercial networks segment) in the consolidated statements of operations.

In November 2023, as a part of an important milestone in the Company’s integration program following the Inmarsat Acquisition and as part of the Company’s ongoing strategy to streamline operations and better serve the Company’s growing customer base, the Company completed work on the rationalization of roles in the Company’s global business, which is intended to achieve both operational and cost efficiencies.

The Company recorded approximately $ 1.4 billion in revenue and $ 214.6 million of net loss during fiscal year 2024 from the Inmarsat business following the acquisition date, which were recorded in the Company's communication services segment in the consolidated statements of operations and comprehensive income (loss).

In November 2023, as a part of an important milestone in the Company’s integration program following the Inmarsat Acquisition and as part of the Company’s ongoing strategy to streamline operations and better serve the Company’s growing customer base, the Company completed work on the rationalization of roles in the Company’s global business, which was intended to achieve both operational and cost efficiencies.

As part of the role rationalization, the Company reduced its global workforce and recorded total costs (primarily related to employee severance payments, benefits and related termination costs) of approximately $ 48 million during fiscal year 2024.

These one-time costs were recorded within operating expenses in the Company’s consolidated statements of operations across all three of the Company’s segments.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

These one-time costs were recorded within operating expenses in the Company’s consolidated statements of operations and comprehensive income (loss) in both of the Company’s segments.

Unaudited Pro Forma Financial Information

The unaudited financial information in the table below summarizes the combined results of operations for the Company and Inmarsat on a pro forma basis, as though the companies had been combined as of the beginning of fiscal year 2023, April 1, 2022.

The pro forma information is presented for informational purposes only and may not be indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of the related fiscal periods.

The pro forma financial information for the fiscal years ended March 31, 2024 and 2023 includes the business combination accounting effects primarily related to the amortization and depreciation changes from acquired intangible and tangible assets, interest expense from the debt issued to finance the acquisition, acquisition-related transaction costs and related tax effects.

The pro forma financial information for fiscal year 2024 includes the business combination accounting effects primarily related to the amortization and depreciation changes from acquired intangible and tangible assets, interest expense from the debt issued to finance the acquisition, acquisition-related transaction costs and related tax effects.

Fiscal Years Ended

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Net income (loss) attributable to Viasat, Inc.

Euro Broadband Infrastructure Sàrl

On April 30, 2021, the Company acquired the remaining 51 % interest in EBI, a broadband services provider, from Eutelsat.

By completing the acquisition, the Company gained 100 % ownership and control of EBI and the KA-SAT satellite over EMEA and related ground infrastructure.

Goodwill recognized in the transaction was recorded within the Company's satellite services segment.

The goodwill recognized was not deductible for U.S.

and foreign income tax purposes.

Prior to the acquisition date, the Company owned a 49 % interest in EBI and accounted for the investment using the equity method of accounting.

The acquisition of the remaining equity interest in EBI was accounted for as a step acquisition in accordance with ASC 805.

Accordingly, the Company allocated the purchase price of the acquired company to the net tangible assets and intangible assets acquired based upon their estimated fair values.

The Company remeasured the previously held equity method investment to its fair value based upon a valuation of the acquired business, as of the date of acquisition.

The Company considered multiple factors in determining the fair value of the previously held equity method investment, including, (i) the price negotiated with the selling shareholder for the remaining 51 % interest in EBI and (ii) an income valuation model (discounted cash flow).

As a result of the equity method investment remeasurement, recognition of previously unrecognized foreign currency gain and settlement of insignificant preexisting relationships, the Company recognized an insignificant total net gain included in other income, net, in the consolidated statements of operations and comprehensive income (loss) in the first quarter of fiscal year 2022.

The purchase price of $ 327.4 million was primarily comprised of $ 167.0 million of cash, net of a then estimated immaterial amount of purchase price consideration and the fair value of previously held equity method investment of approximately $ 160.4 million.

The previously estimated purchase price consideration was determined approximately two years after the closing date, and as a result the Company received € 20.0 million, or approximately $ 22.0 million during the second quarter of fiscal year 2024 (see Note 3 — Fair Value Measurements for more information).

After consideration of cash paid, approximately $ 121.7 million of EBI’s cash on hand and receipt of $ 22.0 million, the transaction resulted in a net cash outlay of approximately $ 29.0 million.

The purchase price allocation of the acquired assets and assumed liabilities based on the estimated fair values as of April 30, 2021, slightly adjusted since the close of the acquisition, primarily between goodwill, identifiable intangible assets and property, equipment and satellites, is as follows:

(In thousands)

Current assets

Property, equipment and satellites

Identifiable intangible assets

Total assets acquired

Total liabilities assumed

Total consideration transferred

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Average Useful Life

(In thousands)

Customer relationships

Total identifiable intangible assets

At the closing of the acquisition, EBI became a wholly owned subsidiary of the Company and EBI’s operations have been included in the Company’s consolidated financial statements in the Company’s satellite services segment (with an insignificant amount included in the Company's commercial networks segment) commencing on the acquisition date.

As EBI’s results of operations are not material to the Company’s consolidated results of operations, pro forma results of operations for this acquisition have not been presented.

On April 30, 2021, the Company completed the acquisition of all outstanding shares of RigNet, a publicly held leading provider of ultra-secure, intelligent networking solutions and specialized applications.

Goodwill recognized in the transaction was recorded within the Company's satellite services segment.

The goodwill recognized was not deductible for U.S.

and foreign income tax purposes.

The consideration transferred of approximately $ 317.9 million was primarily comprised of $ 207.2 million of the fair value of approximately 4.0 million shares of the Company’s common stock issued at the closing date, $ 107.3 million related to the pay down of outstanding borrowings of RigNet’s revolving credit facility, a de minimis amount in cash consideration in respect of fractional shares to the former shareholders of RigNet and an insignificant amount of other consideration.

In connection with the RigNet acquisition, the Company recorded approximately $ 7.2 million of merger-related transaction costs in the fiscal year ended March 31, 2022, included in selling, general and administrative expenses.

The purchase price allocation of the acquired assets and assumed liabilities based on the estimated fair values as of April 30, 2021 is as follows:

(In thousands)

Current assets

Property, equipment and satellites

Identifiable intangible assets

Total assets acquired

Current liabilities

Other long-term liabilities

Total liabilities assumed

Total consideration transferred

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Average Useful Life

(In thousands)

Customer relationships

Total identifiable intangible assets

Management determined the fair value of acquired customer relationships intangible asset by applying the multi-period excess earnings method, which involved the use of significant estimates and assumptions related to forecasted revenue growth rate, gross margin, contributory asset charges, customer attrition rate and discount rate.

In connection with the acquisition, the Company assumed a contingent liability associated with a RigNet predecessor subsidiary of approximately $ 13.8 million, which represented the maximum amount payable under the terms of the agreement.

As of March 31, 2024 , no amount remains payable as the maximum amount payable was paid during the first and second quarters of fiscal year 2022.

The consolidated financial statements include the operating results of RigNet from the date of acquisition.

Since the acquisition date on April 30, 2021, the Company recorded approximately $ 180.2 million in revenue for the fiscal year ended March 31, 2022, and $ 31.2 million of net losses for the fiscal year ended March 31, 2022, with respect to the RigNet business primarily in the Company’s satellite services segment (with a portion included in its commercial networks segment) in the consolidated statements of operations.

Unaudited Pro Forma Financial Information

The unaudited financial information in the table below summarizes the combined results of operations for the Company and RigNet on a pro forma basis, as though the companies had been combined as of the beginning of fiscal year 2021, April 1, 2020.

The pro forma financial information for the fiscal year ended March 31, 2022 includes the business combination accounting effects primarily related to the amortization and depreciation changes from acquired intangible and tangible assets, acquisition-related transaction costs and related tax effects.

Fiscal Year Ended

March 31, 2022

(In thousands)

Total revenues

Net income (loss) attributable to Viasat, Inc.

Note 5 — Discontinued Operations

On October 1, 2022, the Company entered into an Asset Purchase Agreement to sell the Link-16 TDL Business in its government systems segment to L3Harris in exchange for approximately $ 1.96 billion in cash, subject to adjustments.

On October 1, 2022, the Company entered into an Asset Purchase Agreement to sell the Link-16 TDL Business in its defense and advanced technologies segment to L3Harris in exchange for approximately $ 1.96 billion in cash, subject to adjustments.

In accordance with ASC 205-20, the Company determined that the Link-16 TDL Business met held-for sale and discontinued operations accounting criteria at the end of the second quarter of fiscal year 2023.

On January 3, 2023, the Company completed the Link-16 TDL Sale.

Accordingly, the Company classified the results of the Link-16 TDL Business as discontinued operations in its consolidated statements of operations for the fiscal years ended March 31, 2023 and 2022.

Upon completion of the Link-16 TDL Sale, the Company recorded a gain of approximately $ 1.66 billion (net of costs to sell of $ 40.8 million) in the fourth quarter of fiscal year 2023 within net income (loss) from discontinued operations, net of tax on the consolidated statements of operations and comprehensive income (loss) for fiscal year 2023.

The Link-16 TDL Sale substantially reduced both debt and net leverage, and allowed closer alignment in investment synergies between the Company's government systems segment and its other business segments.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

agreement with respect to the supply of certain Link-16 and related products following the closing, and certain services agreements for the provision of engineering and support services for the transition of the Link-16 TDL Business following the closing, in each case subject to the terms and conditions set forth therein.

Accordingly, the Company classified the results of the Link-16 TDL Business as discontinued operations in its consolidated statements of operations for the fiscal year ended March 31, 2023.

Upon completion of the Link-16 TDL Sale, the Company recorded a gain of approximately $ 1.66 billion (net of costs to sell of $ 40.8 million) in the fourth quarter of fiscal year 2023 within net income (loss) from discontinued operations, net of tax in the consolidated statements of operations and comprehensive income (loss) for fiscal year 2023.

The Link-16 TDL Sale substantially reduced both debt and net leverage, and allowed closer alignment in investment synergies across the Company's business.

In connection with the closing of the Link-16 TDL Sale on January 3, 2023, the Company and L3Harris entered into certain ancillary commercial agreements, including certain license agreements for the cross-licensing by each party of certain intellectual property rights relating to the Link-16 TDL Business and the Company’s retained businesses, a supply agreement with respect to the supply of certain Link-16 and related products following the closing, and certain services agreements for the provision of engineering and support services for the transition of the Link-16 TDL Business following the closing, in each case subject to the terms and conditions set forth therein.

The impact of these agreements on the Company's consolidated financial statements was not significant.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The operating results of the discontinued operations only reflect revenues and expenses that are directly attributable to the Link-16 TDL Business that have been eliminated from continuing operations.

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March 31, 2023

March 31, 2022

(In thousands)

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The cash flows related to discontinued operations have not been segregated and are included in the consolidated statements of cash flows.

The following table presents key cash flow and non-cash information related to discontinued operations for the fiscal years ended March 31, 2023 and 2022:

Fiscal Years Ended

March 31, 2023

The following table presents key cash flow and non-cash information related to discontinued operations for the fiscal year ended March 31, 2023:

Fiscal Year Ended

March 31, 2023

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Note 6 — Goodwill and Acquired Intangible Assets

During fiscal year 2024 , the increase in the Company’s goodwill primarily related to the Inmarsat Acquisition (see Note 4 — Acquisitions for more information) and foreign currency translation effect recorded within all three of the Company's segments.

During fiscal year 2023, the decrease in the Company's goodwill relating to its continuing operations primarily related to the derecognition of an insignificant amount (approximately $ 8.5 million) of goodwill during the fourth quarter of fiscal year 2023 in the Company's government systems segment that was previously not classified as held for sale.

See Note 5 — Discontinued Operations for more information on discontinued operations.

Additionally, the Company recorded an insignificant decrease of goodwill related to foreign currency translation effects across all three segments.

During fiscal year 2025, the Company’s goodwill remained flat.

During fiscal year 2024, the increase in the Company’s goodwill was primarily related to the Inmarsat Acquisition (see Note 4 — Acquisition for more information) and foreign currency translation effects recorded within both of the Company's segments.

Other acquired intangible assets are amortized using the straight-line method over their estimated useful lives of two to 12 years (which approximates the economic pattern of benefit).

Amortization expense related to other acquired intangible assets was $ 227.2 million, $ 29.8 million and $ 28.7 million for the fiscal years ended March 31, 2024, 2023 and 2022, respectively.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Other acquired intangible assets and the related accumulated amortization as of March 31, 2024 and 2023 is as follows:

Amortization expense related to other acquired intangible assets was $ 263.9 million, $ 227.2 million and $ 29.8 million for fiscal years 2025, 2024 and 2023, respectively.

Other acquired intangible assets and the related accumulated amortization as of March 31, 2025 and 2024 were as follows:

As of March 31, 2025

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Total other acquired intangible assets

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The expected amortization expense of amortizable acquired intangible assets may change due to the effects of foreign currency fluctuations as a result of international businesses acquired.

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Expected for fiscal year 2030

In fiscal year 2023, the gross amount and accumulated amortization for acquired identifiable intangible assets were reduced by the retirement of fully amortized assets that were no longer in use.

Goodwill by segments as of March 31, 2025 and 2024 was as follows:

March 31, 2025

March 31, 2024

(In thousands)

Communication services

Defense and advanced technologies

Note 7 — Leases

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The Company recognizes right-of-use assets and lease liabilities for such leases in accordance with ASC 842.

The Company reports operating lease right-of-use assets in operating lease right-of-use assets and the current and non-current portions of its operating lease liabilities in accrued and other liabilities and non-current operating lease liabilities, respectively.

The Company’s finance leases consist primarily of satellite lifetime Ka-band capacity leases and have remaining terms from one year to approximately three years .

The Company reports assets obtained under finance leases in property, equipment and satellites, net and the current and non-current portions of its finance lease liabilities in current portion of long-term debt and other long-term debt, respectively.

The Company’s finance leases consist primarily of satellite lifetime Ka-band capacity leases and have remaining terms from less than one year to 15 years .

During the fourth quarter of fiscal year 2023, after the completion of the Link-16 TDL Sale, the Company reduced its real estate footprint as part of cost-reduction measures taken in order to right-size the Company’s remaining businesses.

As a result, the Company recorded an impairment of right-of-use assets of $ 19.1 million and an impairment of leasehold improvements and furniture and fixtures of an insignificant amount, taking into consideration the current and anticipated future market conditions for sublease income in the markets the leases are located, recorded in the consolidated statements of operations in selling, general and administrative expenses spread across each of the Company's segments.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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Total future lease payments required

As of March 31, 2024 , the Company had $ 399.0 million of additional lease commitments with lease terms of four to fifteen years .

As of March 31, 2025 , the Company had $ 76.9 million of additional lease commitments that will commence subsequent to fiscal year 2025 , with lease terms of five to 17 years .

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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(In thousands)

Inmarsat 2026 Notes

2022 Term Loan Facility

2023 Term Loan Facility

Inmarsat Term Loan Facilities

Original Inmarsat Term Loan Facility

2024 Inmarsat Term Loan Facility

Ex-Im Credit Facility

Viasat Revolving Credit Facility

Inmarsat Revolving Credit Facility

Viasat Revolving Credit Facility

2025 Notes (1)

Inmarsat 2026 Notes

Inmarsat 2029 Notes

Finance lease obligations (see Note 1)

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Unamortized discount, debt issuance costs and fair value adjustments made in purchase accounting

(1) The 2025 Notes were redeemed in full subsequent to fiscal year end.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

2022 Term Loan Facility

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As of March 31, 2025, the effective interest rate on the Company’s outstanding borrowings under the 2022 Term Loan Facility was 9.47 % .

The 2022 Term Loan Facility is required to be guaranteed by certain significant domestic subsidiaries of the Company (as defined in the 2022 Term Loan Facility) and secured by substantially

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

all of the Company’s and any such subsidiaries’ assets.

The 2022 Term Loan Facility is required to be guaranteed by certain significant domestic subsidiaries of the Company (as defined in the 2022 Term Loan Facility) and secured by substantially all of the Company’s and any such subsidiaries’ assets.

As of March 31, 2025, none of the Company’s subsidiaries guaranteed the 2022 Term Loan Facility.

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2023 Term Loan Facility

In connection with the closing of the Inmarsat Acquisition, on May 30, 2023, the Company entered into the $ 616.7 million 2023 Term Loan Facility, which was fully drawn at closing and matures on May 30, 2030 .

In connection with the closing of the Inmarsat Acquisition, in May 2023, the Company entered into the $ 616.7 million 2023 Term Loan Facility, which was fully drawn at closing and matures on May 30, 2030 .

At March 31, 2025, the Company had $ 607.5 million in principal amount of outstanding borrowings under the 2023 Term Loan Facility.

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The original issue discount and deferred financing cost associated with the issuance of the borrowings under the 2023 Term Loan Facility are amortized to interest expense on a straight-line basis over the term of the 2023 Term Loan Facility, the results of which are not materially different from the effective interest rate basis.

Bridge Facility

In connection with the closing of the Inmarsat Acquisition, on May 30, 2023, the Company entered into a $ 733.4 million unsecured Bridge Facility, which was fully drawn at closing and had an initial maturity date of May 30, 2024 (automatically converting to a term loan if not repaid by such date).

On September 28, 2023, the Company replaced the Bridge Facility with the 2031 Notes, in the same principal amount and at the same interest rate.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Inmarsat Secured Credit Facilities

In March 2024, Inmarsat amended its then-existing senior secured credit facilities to (among other matters):

(1) establish the $ 1.3 billion 2024 Inmarsat Term Loan Facility, the proceeds of which, together with cash on hand, were used to repay approximately $ 1.38 billion of the outstanding borrowings under the Original Inmarsat Term Loan Facility, resulting in $ 300.0 million in principal amount of borrowings remaining outstanding under the Original Inmarsat Term Loan Facility at the closing of the amendment, and (2) replace the prior $ 700.0 million revolving credit facility with a new $ 550.0 million revolving line of credit (including up to $ 100.0 million of letters of credit) (the Inmarsat Revolving Credit Facility and, together with the 2024 Inmarsat Term Loan Facility and the Original Inmarsat Term Loan Facility, the Inmarsat Secured Credit Facilities).

The maturity date for the Original Inmarsat Term Loan Facility is December 12, 2026 , and for the 2024 Inmarsat Term Loan Facility is September 28, 2029 .

The Inmarsat Revolving Credit Facility matures on the earlier of March 28, 2027 and (if more than $ 100.0 million of borrowings are outstanding under the Original Inmarsat Term Loan Facility) the date that is 91 days prior to the maturity of the Original Inmarsat Term Loan Facility.

As of March 31, 2025, Inmarsat had $ 1.3 billion in principal amount of outstanding borrowings under the 2024 Inmarsat Term Loan Facility and $ 300.0 million in principal amount of outstanding borrowings under the Original Inmarsat Term Loan Facility.

As of March 31, 2025, the Inmarsat Revolving Credit Facility was undrawn and there were no amounts outstanding under standby letters of credit, leaving borrowing availability under the Inmarsat Revolving Credit Facility as of March 31, 2025 of $ 550.0 million.

Borrowings under the 2024 Inmarsat Term Loan Facility are required to be repaid in quarterly installments of $ 3.25 million each, which commenced in the quarter ended June 30, 2024 , followed by a final installment of $ 1.23 billion at maturity.

As a result of the voluntary prepayments at the closing of the amendment, all quarterly amortization installments with respect to the Original Inmarsat Term Loan Facility have been reduced to zero , with the only remaining scheduled principal repayment being a final installment of $ 300.0 million at the maturity date on December 12, 2026 .

Borrowings under the Inmarsat Secured Credit Facilities:

(1) in the case of borrowings denominated in U.S.

Dollars, bear interest, at Inmarsat's option, at either (i) the highest of (x) for the Original Inmarsat Term Loan Facility, the greater of the federal funds rate or the overnight banking fund rate for such day plus 0.50% and for the 2024 Inmarsat Term Loan Facility, the federal funds rate plus 0.50%, (y) the forward-looking one-month term SOFR rate plus 1.00% or (z) the administrative agent's prime rate as announced from time to time, or (ii) the forward-looking term SOFR rate for the applicable interest period (subject to, in the case of the 2024 Inmarsat Term Loan Facility, a floor of 0.50% per annum, in the case of the Inmarsat Revolving Credit Facility, a floor of 0.00% per annum and, in the case of the Original Inmarsat Term Loan Facility, a floor of 1.00% per annum), and (2) in the case of borrowings denominated in available currencies other than U.S.

Dollars, bear interest based upon the applicable benchmark for such currencies (as described in the Inmarsat Secured Credit Facilities) plus, in all cases, an applicable margin.

The applicable margin for the Original Inmarsat Term Loan Facility is 2.50% per annum for base rate loans and 3.50% per annum for SOFR loans.

The applicable margin for the 2024 Inmarsat Term Loan Facility is 3.50% per annum for base rate loans and 4.50% per annum for SOFR loans.

The applicable margin for borrowings under the Inmarsat Revolving Credit Facility is based on Inmarsat’s total net leverage ratio and ranges between 1.50% and 2.25% per annum for base rate loans and 2.50% and 3.25% per annum for SOFR loans.

As of March 31, 2025, the weighted average effective interest rate on the Company's outstanding borrowings under the Inmarsat Term Loan Facilities, was approximately 9.17 % .

The Inmarsat Secured Credit Facilities are required to be guaranteed by certain material Inmarsat subsidiaries and secured by substantially all of the assets of the Inmarsat borrowers and subsidiary guarantors.

The Inmarsat Secured Credit Facilities contain covenants that restrict, among other things, Inmarsat’s ability to incur additional debt, grant liens, sell assets, make investments and acquisitions, pay dividends and make certain other restricted payments.

In addition, financial covenants regarding Inmarsat’s total net leverage ratio and interest coverage ratio apply to the Inmarsat Revolving Credit Facility.

The borrowers under the Inmarsat Secured Credit Facilities were in compliance with the financial covenants under the Inmarsat Secured Credit Facilities as of March 31, 2025 .

Borrowings under the Inmarsat Term Loan Facilities are recorded as current portion of long-term debt and as other long-term debt, net of unamortized discount, unamortized fair value adjustment made in purchase accounting and debt issuance costs, in the Company’s consolidated financial statements.

The 2024 Inmarsat Term Loan Facility was issued with an original issue discount of 2.00 %.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Ex-Im Credit Facility

The Ex-Im Credit Facility originally provided a $ 362.4 million senior secured direct loan facility, which was fully drawn.

Of the $ 362.4 million in principal amount of borrowings made under the Ex-Im Credit Facility, $ 321.2 million was used to finance up to 85 % of the costs of construction, launch and insurance of the ViaSat-2 satellite and related goods and services (including costs incurred on or after September 18, 2012), with the remaining $ 41.2 million used to finance the total exposure fees incurred under the Ex-Im Credit Facility (which included all previously accrued completion

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

exposure fees).

As of March 31, 2025, the Company had $ 19.7 million in principal amount of outstanding borrowings under the Ex-Im Credit Facility.

6 unchanged sentences

The Company was in compliance with its financial covenants under the Ex-Im Credit Facility as of March 31, 2025.

Borrowings under the Ex-Im Credit Facility are recorded as current portion of long-term debt and as other long-term debt, net of unamortized discount and debt issuance costs, in the Company’s consolidated financial statements.

Borrowings under the Ex-Im Credit Facility are recorded as current portion of long-term debt, net of unamortized discount and debt issuance costs, in the Company’s consolidated financial statements.

The discount of $ 42.3 million (consisting of the initial $ 6.0 million pre-exposure fee, $ 35.3 million of completion exposure fees, and other customary fees) and deferred financing cost associated with the issuance of the borrowings under the Ex-Im Credit Facility are amortized to interest expense on an effective interest rate basis over the weighted average term of the Ex-Im Credit Facility and in accordance with the related payment obligations.

Viasat Revolving Credit Facility

As of March 31, 2024 , the Viasat Revolving Credit Facility provided a $ 647.5 million revolving line of credit (including up to $ 150.0 million of letters of credit), with a maturity date of the earliest of (A) August 24, 2028 and (B) t he springing maturity date (as defined in the Viasat Revolving Credit Agreement, which is effectively 91 days prior to the maturity date of certain material debt for borrowed money of Viasat and its subsidiaries to the extent certain conditions have not been satisfied as of such date) .

As of March 31, 2025 , Viasat's revolving credit facility (the Viasat Revolving Credit Facility) provided a $ 647.5 million revolving line of credit (including up to $ 150.0 million of letters of credit), with a maturity date of the earliest of (A) August 24, 2028 and (B) the springing maturity date (as defined in the Viasat Revolving Credit Agreement, which is effectively 91 days prior to the maturity date of certain material debt for borrowed money of Viasat and its subsidiaries to the extent certain conditions have not been satisfied as of such date).

At March 31, 2025, the Company had no outstanding borrowings under the Viasat Revolving Credit Facility and $ 54.2 million outstanding under standby letters of credit, leaving borrowing availability under the Viasat Revolving Credit Facility as of March 31, 2025 of $ 593.3 million.

6 unchanged sentences

The Company was in compliance with its financial covenants under the Viasat Revolving Credit Facility as of March 31, 2025 .

Inmarsat Secured Credit Facilities

As of March 31, 2024 , the Inmarsat Secured Credit Facilities comprised an aggregate of $ 1.6 billion of Inmarsat Term Loan Facilities (consisting of the new $ 1.3 billion New Term Loan Facility and $ 300.0 million in aggregate principal amount of outstanding borrowings under the Original Term Loan Facility) and the $550.0 million Inmarsat Revolving Credit Facility (including up to $100.0 million of letters of credit).

As of March 31, 2024, Inmarsat had $1.6 billion in principal amount of outstanding borrowings under the Inmarsat Term Loan Facilities.

As of March 31, 2024, the Inmarsat Revolving

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Credit Facility was undrawn and there were no amounts outstanding under standby letters of credit, leaving borrowing availability under the Inmarsat Revolving Credit Facility as of March 31, 2024 of $ 550.0 million.

On March 28, 2024, the Inmarsat Secured Credit Facilities were amended to (among other matters):

(1) provide for the $ 1.3 billion New Term Loan Facility, the proceeds of which, together with cash on hand, were used to repay approximately $ 1.38 billion of the outstanding borrowings under the Original Term Loan Facility, resulting in $ 300.0 million in principal amount of borrowings remaining outstanding under the Original Term Loan Facility at the closing of the amendment, and (2) replace the prior $ 700.0 million revolving credit facility maturing in December 2024 with a new $ 550.0 million (undrawn) Inmarsat Revolving Credit Facility that matures in March 2027 or earlier and due on such date if more than $ 100.0 million of borrowings are outstanding 91 days prior to the maturity of either the Original Term Loan Facility or the Inmarsat 2026 Notes.

The maturity date for the New Term Loan Facility is September 28, 2029 .

Borrowings under the New Term Loan Facility are required to repaid in quarterly installments of $ 3.25 million each, beginning in the quarter ending June 30, 2024 , followed by a final installment of $ 1.23 billion at maturity.

As a result of the voluntary prepayments at the closing of the amendment, all quarterly amortization installments with respect to the Original Term Loan Facility have been reduced to $ 0 , with the only remaining scheduled principal repayment being a final installment of $ 300.0 million at the maturity date on December 12, 2026 .

Borrowings under the Inmarsat Secured Credit Facilities:

(1) in the case of borrowings denominated in U.S.

Dollars, bear interest, at Inmarsat's option, at either (i) the highest of (x) for Original Term Loan Facility, the greater of the federal funds rate or the overnight banking fund rate for such day plus 0.50% and for New Term Loan Facility, the federal funds rate plus 0.50%, (y) the forward-looking one-month term SOFR rate plus 1.00% or (z) the administrative agent's prime rate as announced from time to time, or (ii) the forward-looking term SOFR rate for the applicable interest period (subject to, in the case of the New Term Loan Facility, a floor of 0.50% per annum, in the case of the Inmarsat Revolving Credit Facility, a floor of 0.00% per annum and, in the case of the Original Term Loan Facility, a floor of 1.00% per annum), and (2) in the case of borrowings denominated in available currencies other than U.S.

Dollars, bear interest based upon the applicable benchmark for such currencies (as described in the Inmarsat Secured Credit Facilities) plus, in all cases, an applicable margin.

The applicable margin for the Original Term Loan Facility is 2.50% per annum for base rate loans and 3.50% per annum for SOFR loans.

The applicable margin for the New Term Loan Facility is 3.50% per annum for base rate loans and 4.50% per annum for SOFR loans.

As of March 31, 2024, the weighted average effective interest rate on the Company's outstanding borrowings under the Inmarsat Term Loan Facilities, including the impact of interest rate cap contracts (see Note 1 — The Company and a Summary of Its Significant Accounting Policies — Derivatives for more information), was approximately 9.59 % .

In addition, financial covenants regarding Inmarsat’s total net leverage ratio and interest coverage ratio apply to the Inmarsat Revolving Credit Facility.

The borrowers under the Inmarsat Secured Credit Facilities were in compliance with the financial covenants under the Inmarsat Secured Credit Facilities as of March 31, 2024 .

The New Term Loan Facility was issued with an original issue discount of 2.00 %.

Senior Notes due 2025;

On September 28, 2023, the Company issued $ 733.4 million in principal amount of 2031 Notes in a private placement to institutional buyers to replace the Bridge Facility.

Discharge of Indenture and Gain (Loss) on Extinguishment of Debt

In September 2017, the Company issued $ 700.0 million in principal amount of 2025 Notes in a private placement to institutional buyers.

During the second quarter of fiscal year 2025, the Company repurchased $ 257.5 million in aggregate principal amount of 2025 Notes in open market transactions, resulting in $ 442.6 million in principal amount of 2025 Notes remaining outstanding as of March 31, 2025 .

As a result, the Company recorded a gain of an insignificant amount in (loss) gain on extinguishment of debt, net in the consolidated statement of operations during fiscal year 2025.

Subsequent to fiscal year end, on May 2, 2025, the Company redeemed all of the remaining $ 442.6 million in principal amount of 2025 Notes at a redemption price of 100 % of the principal amount so redeemed plus accrued and unpaid interest thereon to the redemption date, and the indenture governing the 2025 Notes was satisfied and discharged in accordance with its terms.

As a result of the redemption of the 2025 Notes, the Company is expected to recognize a loss of an insignificant amount on extinguishment of debt during the first quarter of fiscal year 2026.

The 2025 Notes bore interest at the rate of 5.625 % per year, payable semi-annually in cash in arrears, and were recorded as current portion of long-term debt, net of debt issuance costs, as of March 31, 2025 in the Company’s consolidated financial statements.

Inmarsat Senior Secured Notes due 2026;

Discharge of Indenture and Loss on Extinguishment of Debt

In October 2019, certain subsidiaries of Inmarsat Holdings issued $ 2.08 billion in principal amount of Inmarsat 2026 Notes in a private placement to institutional buyers.

In July 2024, Inmarsat repurchased $ 101.7 million in aggregate principal amount of Inmarsat 2026 Notes in open market transactions.

On October 1, 2024, Inmarsat used the net proceeds from the issuance of the Inmarsat 2029 Notes, together with cash on hand, to redeem all of the remaining $ 1.97 billion in principal amount of Inmarsat 2026 Notes at a redemption price of 100 % of the principal amount so redeemed plus accrued and unpaid interest thereon to the redemption date, and the indenture governing the Inmarsat 2026 Notes was satisfied and discharged in accordance with its terms.

As a result of the repurchase and redemption of the Inmarsat 2026 Notes in July and October 2024, during fiscal year 2025, the Company recorded a loss of $ 100.3 million in (loss) gain on extinguishment of debt, net in the consolidated statement of operations, related to an unamortized fair value adjustment made in purchase accounting.

The Inmarsat 2026 Notes bore interest at the rate of 6.750 % per year, payable semi-annually in cash in arrears and were recorded as long-term debt, net of unamortized fair value adjustment made in purchase accounting, as of March 31, 2024 in the Company’s consolidated financial statements.

Senior Secured Notes due 2027

In March 2019, the Company issued $ 600.0 million in principal amount of 2027 Notes in a private placement to institutional buyers.

The 2027 Notes were issued at face value and are recorded as long-term debt, net of debt issuance costs, in the Company’s consolidated financial statements.

The 2031 Notes bear interest at the rate of 7.500 % per year, payable semi-annually in cash in arrears, which interest payments will commence at the end of May 2024.

The 2027 Notes bear interest at the rate of 5.625 % per year, payable semi-annually in cash in arrears, which interest payments commenced in October 2019.

Debt issuance costs associated with the issuance of the 2027 Notes are amortized to interest expense on a straight-line basis over the term of the 2027 Notes, the results of which are not materially different from the effective interest rate basis.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The 2031 Notes are required to be guaranteed on an unsecured senior basis by each of the Company’s existing and future subsidiaries that guarantees the Viasat Revolving Credit Facility.

The 2027 Notes are required to be guaranteed on a senior secured basis by each of the Company’s existing and future subsidiaries that guarantees the Viasat Revolving Credit Facility.

As of March 31, 2025, none of the Company’s subsidiaries guaranteed the 2027 Notes.

The 2031 Notes are the Company’s general senior unsecured obligations and rank equally in right of payment with all of the Company’s existing and future unsecured unsubordinated debt.

The 2031 Notes are effectively junior in right of payment to the Company’s existing and future secured debt, including under the Credit Facilities and the 2027 Notes (to the extent of the value of the assets securing such debt), are structurally subordinated to all existing and future liabilities (including trade payables) of the Company’s subsidiaries that do not guarantee the 2031 Notes, and are senior in right of payment to all of the Company’s existing and future subordinated indebtedness.

The 2027 Notes are secured, equally and ratably with the 2022 Term Loan Facility, the 2023 Term Loan Facility, the Viasat Revolving Credit Facility and any future parity lien debt, by liens on substantially all of the Company’s and such subsidiaries' assets.

The 2027 Notes are the Company’s general senior secured obligations and rank equally in right of payment with all of its existing and future unsubordinated debt.

The 2027 Notes are effectively senior to all of the Company’s existing and future unsecured debt (including the 2025 Notes, the 2028 Notes and the 2031 Notes) as well as to all of any permitted junior lien debt that may be incurred in the future, in each case to the extent of the value of the assets securing the 2027 Notes.

The 2027 Notes are effectively subordinated to any obligations that are secured by liens on assets that do not constitute a part of the collateral securing the 2027 Notes (such as the Inmarsat 2026 Notes), are structurally subordinated to all existing and future liabilities (including trade payables) of the Company’s subsidiaries that do not guarantee the 2027 Notes, and are senior in right of payment to all of the Company’s existing and future subordinated indebtedness.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The indenture governing the 2027 Notes limits, among other things, the Company’s and its restricted subsidiaries’ ability to:

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and consolidate or merge with, or sell substantially all of their assets to, another person.

Prior to May 30, 2026, the Company may redeem up to 40% of the 2031 Notes at a redemption price of 107.500 % of the principal amount thereof, plus accrued and unpaid interest, if any, thereon to the redemption date, from the net cash proceeds of specified equity offerings.

The Company may also redeem the 2031 Notes prior to May 30, 2026, in whole or in part, at a redemption price equal to 100 % of the principal amount thereof plus a “make whole” premium and any accrued and unpaid interest, if any, thereon to the redemption date.

The 2031 Notes may be redeemed, in whole or in part, at any time during the 12 months beginning on May 30, 2026 at a redemption price of 103.750 % , during the 12 months beginning on May 30, 2027 at a redemption price of 101.875 % , and at any time on or after May 30, 2028 at a redemption price of 100 %, in each case plus accrued and unpaid interest, if any, thereon to the redemption date.

The 2027 Notes may be redeemed, in whole or in part, at any time at a redemption price of 100 % plus accrued and unpaid interest, if any, thereon to the redemption date.

In the event a change of control triggering event occurs (as defined in the indenture governing the 2027 Notes), each holder will have the right to require the Company to repurchase all or any part of such holder’s 2027 Notes at a purchase price in cash equal to 101 % of the aggregate principal amount of the 2027 Notes repurchased, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date).

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and consolidate or merge with, or sell substantially all of their assets to, another person.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The 2028 Notes may be redeemed, in whole or in part, at any time during the 12 months beginning on July 15, 2023 at a redemption price of 103.250 % , during the 12 months beginning on July 15, 2024 at a redemption price of 101.625 % , and at any time on or after July 15, 2025 at a redemption price of 100 %, in each case plus accrued and unpaid interest, if any, thereon to the redemption date.

The 2028 Notes may be redeemed, in whole or in part, at any time during the 12 months beginning on July 15, 2024 at a redemption price of 101.625 % , and at any time on or after July 15, 2025 at a redemption price of 100 %, in each case plus accrued and unpaid interest, if any, thereon to the redemption date.

In the event a change of control triggering event occurs (as defined in the indenture governing the 2028 Notes), each holder will have the right to require the Company to repurchase all or any part of such holder’s 2028 Notes at a purchase price in cash equal to 101 % of the aggregate principal amount of the 2028 Notes repurchased, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date).

Senior Secured Notes due 2027

In March 2019, the Company issued $ 600.0 million in principal amount of 2027 Notes in a private placement to institutional buyers.

The 2027 Notes were issued at face value and are recorded as long-term debt, net of debt issuance costs, in the Company’s consolidated financial statements.

The 2027 Notes bear interest at the rate of 5.625 % per year, payable semi-annually in cash in arrears, which interest payments commenced in October 2019.

The 2027 Notes are required to be guaranteed on a senior secured basis by each of the Company’s existing and future subsidiaries that guarantees the Viasat Revolving Credit Facility.

As of March 31, 2024, none of the Company’s subsidiaries guaranteed the 2027 Notes.

The 2027 Notes are the Company’s general senior secured obligations and rank equally in right of payment with all of its existing and future unsubordinated debt.

The indenture governing the 2027 Notes limits, among other things, the Company’s and its restricted subsidiaries’ ability to:

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Inmarsat Senior Secured Notes due 2029

In September 2024, certain subsidiaries of Inmarsat Holdings issued $ 1.975 billion in principal amount of Inmarsat 2029 Notes in a private placement to institutional buyers.

The Inmarsat 2029 Notes were issued at face value and are recorded as long-term debt, net of debt issuance costs, in the Company’s consolidated financial statements.

The Inmarsat 2029 Notes bear interest at the rate of 9.000 % per year, payable semi-annually in cash in arrears, which interest payments commenced in March 2025.

Debt issuance costs associated with the issuance of the Inmarsat 2029 Notes are amortized to interest expense on a straight-line basis over the term of the Inmarsat 2029 Notes, the results of which are not materially different from the effective interest rate basis.

Inmarsat used the net proceeds from the issuance of the Inmarsat 2029 Notes, together with cash on hand, to redeem all of the outstanding Inmarsat 2026 Notes on October 1, 2024.

The Inmarsat 2029 Notes are secured by pari passu first priority liens on the collateral securing the Inmarsat Secured Credit Facilities, and are required to be guaranteed on a senior secured basis by the subsidiaries of Inmarsat Holdings guaranteeing the Inmarsat Secured Credit Facilities.

The indenture governing the Inmarsat 2029 Notes limits, among other things, the ability of the issuers and their restricted subsidiaries to:

incur, assume or guarantee additional debt;

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enter into transactions with affiliates;

reduce the Company’s satellite insurance;

and consolidate or merge with, or sell substantially all of their assets to, another person.

The 2027 Notes may be redeemed, in whole or in part, at any time at a redemption price of 100 % plus accrued and unpaid interest, if any, thereon to the redemption date.

Prior to September 15, 2026, the issuers may redeem up to 40% of the Inmarsat 2029 Notes at a redemption price 109.000 % of the principal amount thereof, plus accrued and unpaid interest, if any, thereon to the redemption date, from the net cash proceeds of specified equity offerings so long as at least 50% of the aggregate principal amount of the Inmarsat 2029 Notes originally issued remains outstanding after such redemptions.

The issuers may also redeem the Inmarsat 2029 Notes prior to September 15, 2026, in whole or in part, at a redemption price equal to 100 % of the principal amount thereof plus a “make-whole” premium and any accrued and unpaid interest, if any, thereon to the redemption date.

The Inmarsat 2029 Notes may be redeemed, in whole or in part, at any time during the 12 months beginning on September 15, 2026 at a redemption price of 104.500 % , at any time during the 12 months beginning on September 15, 2027 at a redemption price of 102.250 % , and at any time on or after September 15, 2028 at a redemption price of 100 %, in each case plus accrued and unpaid interest, if any, thereon to the redemption date.

In the event a change of control occurs (as defined in the indenture governing the Inmarsat 2029 Notes), each holder will have the right to require the issuers to repurchase all or a portion of such holder’s Inmarsat 2029 Notes at a purchase price in cash equal to 101 % of the aggregate principal amount of the Inmarsat 2029 Notes repurchased, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date).

Senior Notes due 2031

In September 2017, the Company issued $ 700.0 million in principal amount of 2025 Notes in a private placement to institutional buyers.

In September 2023, the Company issued $ 733.4 million in principal amount of 2031 Notes in a private placement to institutional buyers to replace the $ 733.4 million unsecured bridge loan facility that was entered into in connection with the closing of the Inmarsat Acquisition on May 30, 2023.

The 2031 Notes were issued at face value and are recorded as long-term debt, net of debt issuance costs, in the Company’s consolidated financial statements.

The 2025 Notes bear interest at the rate of 5.625 % per year, payable semi-annually in cash in arrears, which interest payments commenced in March 2018.

Debt issuance costs

The 2031 Notes bear interest at the rate of 7.500 % per year, payable semi-annually in cash in arrears, which interest payments commenced in May 2024.

Debt issuance costs associated with the issuance of the 2031 Notes are amortized to interest expense on a straight-line basis over the term of the 2031 Notes, the results of which are not materially different from the effective interest rate basis.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

associated with the issuance of the 2025 Notes are amortized to interest expense on a straight-line basis over the term of the 2025 Notes, the results of which are not materially different from the effective interest rate basis.

The 2031 Notes are required to be guaranteed on an unsecured senior basis by each of the Company’s existing and future subsidiaries that guarantees the Viasat Revolving Credit Facility.

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and consolidate or merge with, or sell substantially all of their assets to, another person.

The 2025 Notes may be redeemed, in whole or in part, at any time at a redemption price of 100 % plus accrued and unpaid interest, if any, thereon to the redemption date.

In the event a change of control triggering event occurs (as defined in the indenture governing the 2031 Notes), each holder will have the right to require the Company to repurchase all or any part of such holder’s 2031 Notes at a purchase price in cash equal to 101 % of the aggregate principal amount of the 2031 Notes repurchased, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date).

Inmarsat Senior Secured Notes due 2026

In October 2019, certain subsidiaries of Inmarsat Holdings issued $ 2.08 billion in principal amount of Inmarsat 2026 Notes in a private placement to institutional buyers.

The Inmarsat 2026 Notes bear interest at the rate of 6.750 % per year, payable semi-annually in cash in arrears.

The Inmarsat 2026 Notes are secured by pari passu first priority liens on the collateral securing the Inmarsat Secured Credit Facilities, and are required to be guaranteed on a senior secured basis by restricted subsidiaries of Inmarsat Holdings that guarantee or are borrowers under Inmarsat’s senior secured indebtedness, subject to exceptions.

The Inmarsat 2026 Notes are required to be guaranteed by the subsidiaries guaranteeing the Inmarsat Secured Credit Facilities.

The indenture governing the Inmarsat 2026 Notes limits, among other things, the ability of the issuers and their restricted subsidiaries to:

incur, assume or guarantee additional debt;

issue redeemable stock and preferred stock;

pay dividends, make distributions or redeem or repurchase capital stock;

prepay, redeem or repurchase subordinated debt;

make loans and investments;

grant or incur liens;

restrict dividends, loans or asset transfers from restricted subsidiaries;

sell or otherwise dispose of assets;

enter into transactions with affiliates;

and consolidate or merge with, or sell substantially all of their assets to, another person.

The Inmarsat 2026 Notes may be redeemed, in whole or in part, at any time during the 12 months beginning on October 1, 2023 at a redemption price of 101.688 % , and at any time on or after October 1, 2024 at a redemption price of 100 %, in each case plus accrued and unpaid interest, if any, thereon to the redemption date.

In the event a change of control occurs (as defined in the indenture governing the Inmarsat 2026 Notes), each holder will have the right to require Inmarsat to repurchase all or any part of such holder’s Inmarsat 2026 Notes at a purchase price in cash equal to 101 % of the aggregate principal amount of the Inmarsat 2026 Notes repurchased, plus accrued and unpaid interest, if any, to the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date).

The consummation of the Inmarsat Acquisition did not give rise to a “change of control” under the indenture governing the Inmarsat 2026 Notes.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The Inmarsat 2026 Notes are recorded as other long-term debt, net of unamortized fair value adjustment made in purchase accounting, in the Company’s consolidated financial statements.

Note 9 — Common Stock and Stock Plans

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In November 1996, the Company adopted the 1996 Equity Participation Plan (the Equity Participation Plan).

The Equity Participation Plan provides for the grant to executive officers, other key employees, consultants and non-employee directors of the Company a broad variety of stock-based compensation alternatives such as nonqualified stock options, incentive stock options, restricted stock units and performance awards.

The Equity Participation Plan provides for the grant to executive officers, other eligible employees, consultants and non-employee directors of the Company a broad variety of stock-based compensation alternatives such as nonqualified stock options, incentive stock options, RSUs and performance awards.

From November 1996 to September 2024, through various amendments of the Equity Participation Plan, the Company increased the maximum number of shares reserved for issuance under this plan to 59,401,000 shares.

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Shares of the Company’s common stock granted under the Equity Participation Plan as an award other than as an option or as a stock appreciation right with a per share purchase price lower than 100% of fair market value on the date of grant are counted against the Equity Participation Plan share reserve as two shares for each share of common stock subject to such awards.

Restricted stock units are granted to eligible employees and directors and represent rights to receive shares of common stock at a future date.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

In September 2024, the Company adopted the 2024 Employment Inducement Incentive Award Plan (the Inducement Plan).

The Inducement Plan provided for RSU and market condition PSU grants to the Company's new Senior Vice President and Chief Financial Officer.

The maximum number of shares reserved for issuance under this plan is 377,500 .

Shares of the Company’s common stock granted under the Inducement Plan as RSUs are counted against the Inducement Plan share reserve on a one for one basis and market condition PSU grants are calculated assuming “maximum” performance.

In November 1996, the Company adopted the Viasat, Inc.

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The price of shares purchased under the Employee Stock Purchase Plan is equal to 85 % of the fair market value of the common stock on the first or last day of the offering period, whichever is lower.

Total stock-based compensation expense recognized in accordance with the authoritative guidance for share-based payments was as follows:

Total stock-based compensation expense recognized in accordance with ASC 718 was as follows:

Fiscal Years Ended

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Stock-based compensation expense, net of taxes

In accordance with the authoritative guidance for share-based payments (ASC 718), the Company recognizes excess tax benefits or deficiencies on vesting or settlement of awards as discrete items within income tax benefit or provision within net income (loss) and the related cash flows classified within operating activities.

The compensation cost that has been charged against income for the Equity Participation Plan under the authoritative guidance for share-based payments was $ 75.6 million, $ 75.0 million and $ 79.4 million, and for the Employee Stock Purchase Plan was $ 8.0 million, $ 7.1 million and $ 5.6 million, for the fiscal years ended March 31, 2024, 2023 and 2022 , respectively.

In accordance with ASC 718, the Company recognizes excess tax benefits or deficiencies on vesting or settlement of awards as discrete items within income tax benefit or provision within net income (loss) and the related cash flows classified within operating activities.

The compensation cost that has been charged against income for the Equity Participation Plan and Inducement Plan under ASC 718 was $ 72.9 million, $ 75.6 million and $ 75.0 million, and for the Employee Stock Purchase Plan was $ 7.5 million, $ 8.0 million and $ 7.1 million, for fiscal years 2025, 2024 and 2023 , respectively.

The Company capitalized $ 8.1 million, $ 10.7 million and $ 12.9 million of stock-based compensation expense as a part of property, equipment and satellites, net for fiscal years 2025, 2024 and 2023, respectively.

During fiscal year 2025, the Company modified certain RSUs and market-based performance stock options in connection with termination of executives resulting in an insignificant amount of incremental compensation expense.

As of March 31, 2025 , total unrecognized compensation cost related to unvested stock-based compensation arrangements granted under the Equity Participation Plan and Inducement Plan (including stock options, market-based performance stock options, RSUs and PSUs) and the Employee Stock Purchase Plan was $ 125.2 million and $ 2.9 million, respectively.

These costs are expected to be recognized over a weighted average period of 0.6 years, 1.1 years, 2.0 years and 1.7 years, for stock options, market-based performance stock options, RSUs and PSUs, respectively, under the Equity Participation Plan and the Inducement Plan, and less than six months under the Employee Stock Purchase Plan.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

As of March 31, 2024 , total unrecognized compensation cost related to unvested stock-based compensation arrangements granted under the Equity Participation Plan (including stock options, market-based performance stock options and restricted stock units) and the Employee Stock Purchase Plan was $ 137.2 million and $ 2.7 million, respectively.

These costs are expected to be recognized over a weighted average period of 1.0 years, 1.8 years and 2.5 years, for stock options, market-based performance stock options and restricted stock units, respectively, under the Equity Participation Plan and less than six months under the Employee Stock Purchase Plan.

Stock options, market-based performance stock options and employee stock purchase plan.

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The TSR performance stock options must be vested under both the time-based vesting schedule and the performance-based vesting conditions in order to become exercisable.

During the third quarter of fiscal year 2024, the Company granted price hurdle performance stock options to executive officers and certain other high-level employees under the 1996 Equity Participation Plan.

In fiscal year 2024, the Company granted price hurdle performance stock options to executive officers and certain other high-level employees under the Equity Participation Plan.

The price hurdle performance stock options must be vested under both a three-year time-based vesting schedule and a market-based vesting condition in order to become exercisable.

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The Company estimates the fair value of the TSR performance stock options and the price hurdle performance stock options (collectively, the market-based performance stock options) at the grant date using a Monte Carlo simulation.

Expense for market-based performance stock options that vest is recognized regardless of the actual outcome achieved and is recognized on a graded-vesting basis.

Expense for vested market-based performance stock options with a market condition that vest is recognized regardless of the actual outcome achieved and is recognized on a graded-vesting basis.

There were no market-based performance stock options granted during fiscal year 2025.

The weighted average estimated fair value of market-based performance stock options granted during fiscal years 2024 and 2023 was $ 16.01 and $ 25.06 per share, respectively, using the Monte Carlo simulation.

The weighted average estimated fair value of stock options granted and employee stock purchase plan shares issued during fiscal year 2024 was $ 15.73 and $ 8.79 per share, respectively, during fiscal year 2023 was $ 16.49 and $ 10.30 per share, respectively, and during fiscal year 2022 was $ 13.50 and $ 12.37 per share, respectively, using the Black-Scholes model.

The weighted average estimated fair value of stock options granted and shares issued under the Employee Stock Purchase Plan during fiscal year 2025 was $ 9.87 and $ 5.22 per share, respectively, during fiscal year 2024 was $ 15.73 and $ 8.79 per share, respectively, and during fiscal year 2023 was $ 16.49 and $ 10.30 per share, respectively, using the Black-Scholes model.

The weighted average assumptions (annualized percentages) used in the Black-Scholes model and Monte Carlo simulation were as follows:

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Vested and exercisable at March 31, 2025

The total intrinsic value of stock options exercised during fiscal years 2024, 2023 and 2022 was an insignificant amount, zero and an insignificant amount, respectively.

The total intrinsic value of stock options exercised during fiscal years 2025, 2024 and 2023 was zero , an insignificant amount and zero , respectively.

All options issued under the Company’s Equity Participation Plan have an exercise price equal to the fair market value of the Company’s stock on the date of the grant.

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Restricted stock units.

Restricted stock units represent a right to receive shares of common stock at a future date determined in accordance with the participant’s award agreement.

There is no exercise price and no monetary payment required for receipt of restricted stock units or the shares issued in settlement of the award.

RSUs represent a right to receive shares of common stock at a future date determined in accordance with the participant’s award agreement.

There is no exercise price and no monetary payment required for receipt of RSUs or the shares issued in settlement of the award.

Instead, consideration is furnished in the form of the participant’s services to the Company.

Restricted stock units generally vest over four years (except for one - and three-year vesting schedules for restricted stock units granted to the members of the Company’s Board of Directors).

Compensation cost for these awards is based on the fair value on the date of grant and recognized as compensation expense on a straight-line basis over the requisite service period.

For fiscal years 2024, 2023 and 2022 , the Company recognized $ 57.4 million, $ 59.1 million and $ 63.1 million, respectively, in stock-based compensation expense related to these restricted stock unit awards.

The per unit weighted average grant date fair value of restricted stock units granted during fiscal years 2024, 2023 and 2022 was $ 29.21 , $ 35.04 and $ 52.85 , respectively.

A summary of restricted stock unit activity for fiscal year 2024 is presented below:

RSUs generally vest over three or four years (except for one -year for certain RSUs granted to the members of the Company’s Board of Directors).

Compensation cost for these awards is based on the fair value on the date of grant and is recognized as compensation expense on a straight-line basis over the requisite service period.

For fiscal years 2025, 2024 and 2023 , the Company recognized $ 56.6 million, $ 57.4 million and $ 59.1 million, respectively, in stock-based compensation expense related to RSU awards.

The per unit weighted average grant date fair value of RSUs granted during fiscal years 2025, 2024 and 2023 was $ 15.77 , $ 29.21 and $ 35.04 , respectively.

A summary of RSU activity for fiscal year 2025 is presented below:

Average Grant

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The total fair value of shares vested related to restricted stock units during the fiscal years 2024, 2023 and 2022 was $ 34.1 million, $ 46.9 million and $ 66.0 million, respectively.

The total fair value of shares vested related to RSUs during the fiscal years 2025, 2024 and 2023 was $ 15.3 million, $ 34.1 million and $ 46.9 million, respectively.

Performance-based restricted stock units .

During fiscal year 2025, the Company granted performance-based restricted stock units with a market condition (such as stock price milestone) (market condition PSUs) and performance-based restricted stock units with a performance condition (such as an operational milestone) (performance condition PSUs) to executive officers and certain other high-level employees under the Equity Participation Plan and Inducement Plan.

The Company’s market condition PSUs cliff vest at the end of three years and the Company's performance condition PSUs have a one year performance-based vesting period and a three-year time-based vesting schedule.

The number of shares of market condition PSUs that will become eligible to vest is based on a comparison over a three-year performance period of the Company’s TSR to the TSR of the companies included in the Russell 3000 Index.

The final number of market condition PSUs that will be issued will range from 0 % to 175 % of the target number of PSUs based on the Company’s relative TSR ranking for the performance period.

The final number of shares of performance condition PSUs that will be issued will range from 0 % to 175 % of the target number of PSUs depending on the Company's performance for a given fiscal year period against pre-established targets.

PSUs must be vested under both the time-based vesting schedule and the performance-based vesting conditions in order to be issued.

PSUs represent a right to receive shares of common stock at a future date determined in accordance with the participant’s award agreement and achievement of performance-based vesting conditions.

There is no exercise price and no monetary payment required for receipt of PSUs or the shares issued in settlement of the award.

Instead, consideration is furnished in the form of the participant’s services to the Company.

The Company estimates the fair value of market condition PSUs at the grant date using a Monte Carlo simulation.

The expense for market condition PSUs that vest is recognized regardless of the actual outcome achieved and is recognized on a graded-vesting basis.

Compensation cost for performance condition PSUs is based on the fair value on the date of grant.

Expense for performance condition PSUs that vest is recognized each period based on a probability assessment of the expected outcome of the performance targets with a final adjustment upon measurement at the end of the performance period and is recognized on a graded-vesting basis.

During fiscal year 2025, the Company recognized $ 5.1 million in stock-based compensation expense related to all PSUs, for which the expense for performance condition PSUs was based on an estimated weighted average performance multiplier of approximately 150 %.

The per unit weighted average grant date fair value of PSUs granted during fiscal year 2025 was $ 18.13 .

A summary of PSU activity for fiscal year 2025 is presented below:

Average Grant

Date Fair Value

Outstanding at March 31, 2024

Outstanding at March 31, 2025

(1) Number of shares is based on the target number of PSUs under each market condition PSU and performance condition PSU .

Based on an estimated weighted average performance multiplier of approximately 150 %, approximately 400,000 of performance condition PSUs are expected to time vest over the next three years.

The weighted average assumptions (annualized percentages) used in the Monte Carlo simulation for market condition PSUs were as follows:

Market Condition PSUs

Fiscal Year 2025

Risk-free interest rate

Dividend yield

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Note 10 — Shares Used In Computing Diluted Net Income (Loss) Per Share

The weighted average number of shares used to calculate basic and diluted net loss per share attributable to Viasat, Inc.

common stockholders is the same for the fiscal years ended March 31, 2024, 2023 and 2022, as the Company incurred a net loss from continuing operations (excluding income (loss) from continuing operations attributable to the noncontrolling interest) for such periods and inclusion of potentially dilutive weighted average shares of common stock would be antidilutive.

Potentially dilutive weighted average shares excluded from the calculation for fiscal years 2024, 2023 and 2022, respectively, consisted of 242,973 , 483,499 and 848,791 shares related to stock options (other than market-based performance stock options), zero , 480,325 and 264,645 shares related to market-based performance stock options, 2,066,973 , 2,477,067 and 2,150,449 shares related to restricted stock units, and 1,127,606 , 699,680 and 417,308 shares related to certain terms of the Viasat 401(k) Profit Sharing Plan and Employee Stock Purchase Plan.

common stockholders was the same for fiscal years 2025, 2024 and 2023, as the Company incurred a net loss from continuing operations (excluding income (loss) from continuing operations attributable to the noncontrolling interest) for such periods and inclusion of potentially dilutive weighted average shares of common stock would be antidilutive.

Potentially dilutive weighted average shares excluded from the calculation for fiscal years 2025, 2024 and 2023 consisted of 220,095 shares, 242,973 shares and 483,499 shares, respectively, related to stock options (other than market-based performance stock options), zero shares, zero shares, and 480,325 shares, respectively, related to market-based performance stock options and market condition PSUs, 5,539,871 shares, 2,066,973 shares and 2,477,067 shares, respectively, related to RSUs (other than PSUs), 165,498 shares, zero shares, and zero shares, respectively, related to performance condition PSUs, and 1,950,692 shares, 1,127,606 shares and 699,680 shares related to certain terms of the Viasat 401(k) Profit Sharing Plan and Employee Stock Purchase Plan.

Note 11 — Income Taxes

The components of income (loss) before income taxes by jurisdiction are as follows:

The components of income (loss) before income taxes by jurisdiction were as follows:

Fiscal Years Ended

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United States

The (provision for) benefit from income taxes includes the following:

The (provision for) benefit from income taxes included the following:

Fiscal Years Ended

(In thousands)

Current tax provision

Deferred tax benefit

Current tax (provision) benefit:

Deferred tax (provision) benefit:

Total (provision for) benefit from income taxes

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Significant components of the Company’s net deferred tax assets are as follows:

Significant components of the Company’s net deferred tax assets were as follows:

(In thousands)

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Operating lease liabilities

Deferred revenue

Interest carryforwards

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Base Erosion and Anti-Abuse Tax (BEAT)

Foreign effective tax rate differential, net of

valuation allowance

Foreign effective tax rate differential, net of valuation allowance

Unremitted subsidiary gains

Change to indefinite reinvestment assertion (EBI)

Withholding taxes

Total (provision for) benefit from income taxes

As of March 31, 2024 , the Company had federal and state research & development (R&D) tax credit carryforwards of $ 115.8 million and $ 191.5 million, respectively, which begin to expire in fiscal year 2040 and fiscal year 2026 , respectively.

As of March 31, 2025 , the Company had federal and state R&D tax credit carryforwards of $ 138.4 million and $ 203.4 million, respectively, which begin to expire in fiscal year 2040 and fiscal year 2026 , respectively.

As of March 31, 2025 , the Company had federal and state net operating loss carryforwards of $ 597.2 million and $ 303.0 million, respectively, which begin to expire in fiscal year 2029 and fiscal year 2026 , respectively.

Beginning in fiscal year 2023, for federal income tax purposes, the Company is required to capitalize and amortize domestic research and development expenditures over five years and foreign research and development expenditures over 15 years under the Tax Cuts and Jobs Act of 2017, which delays the deductibility of these expenditures.

Beginning in fiscal year 2023, for federal income tax purposes, the Company is required to capitalize and amortize domestic R&D expenditures over five years and foreign R&D expenditures over 15 years under the Tax Cuts and Jobs Act of 2017, which delays the deductibility of these expenditures.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

In accordance with the authoritative guidance for income taxes (ASC 740), net deferred tax assets are reduced by a valuation allowance if, based on all the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

In accordance with ASC 740, net deferred tax assets are reduced by a valuation allowance if, based on all the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

Future realization of existing deferred tax assets ultimately depends on future profitability and the existence of sufficient taxable income of appropriate character (for example, ordinary income versus capital gains) within the carryforward period available under tax law.

In the event that the Company’s estimate of taxable income is less than that required to utilize the full amount of any deferred tax asset, a valuation allowance is established, which would cause a decrease to income in the period such determination is made.

A valuation allowance of $ 353.6 million at March 31, 2024 and $ 150.0 million at March 31, 2023 has been established relating to federal, state and foreign net operating loss carryforwards, federal and state R&D tax credit carryforwards, and foreign tax credit carryforwards that, based on management’s estimate of future taxable income attributable to such jurisdictions and generation of additional research credits, are considered more likely than not to expire unused.

The valuation allowance at March 31, 2024 also includes other federal and state net deferred tax assets for cumulative timing differences.

A valuation allowance of $ 430.5 million at March 31, 2025 and $ 353.6 million at March 31, 2024 has been established relating to federal, state and foreign net operating loss carryforwards, federal and state R&D tax credit carryforwards, foreign tax credit carryforwards, and other federal and state net deferred tax assets for cumulative timing differences that, based on management’s estimate of future taxable income attributable to such jurisdictions and generation of additional research credits, are considered more likely than not to expire unused.

During the fourth quarter of fiscal year 2025, the Company released $ 10.3 million of valuation allowance previously recorded against U.S.

deferred tax assets.

The Company evaluated both the positive and negative evidence and released valuation allowance equal to the expected benefit from the deferred tax liabilities recorded for legacy Inmarsat U.S.

entities in connection with a tax planning strategy to file a consolidated U.S.

federal tax return.

During the second quarter of fiscal year 2024, in evaluating the Company’s ability to realize its U.S.

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tax return filings of Trellisware and the legacy Inmarsat entities.

As a result, the Company’s tax benefit for the fiscal year ended March 31, 2024 was reduced by a valuation allowance recorded against such U.S.

As a result, the Company’s tax benefit for fiscal year 2024 was reduced by a valuation allowance recorded against such U.S.

deferred tax assets.

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It is reasonably possible that there will not be a significant change in uncertain tax balances in the next 12 months.

The Company’s policy is to recognize interest expense and penalties related to income tax matters as a component of income tax expense.

As of March 31, 2024 and 2023, the Company had accrued interest and penalties of approximately $ 16.9 million and an insignificant amount, respectively.

Approximately $ 19.2 million was recorded through goodwill as part of the purchase accounting for the Inmarsat Acquisition.

The Company recognized a tax benefit of $ 2.0 million, $ 1.1 million and $ 1.2 million for reductions of interest and penalties in income tax expense for the fiscal years ended March 31, 2024, 2023 and 2022, respectively.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The Company’s policy is to recognize interest expense and penalties related to income tax matters as a component of income tax expense.

As of March 31, 2025 and 2024 , the Company had accrued interest and penalties of approximately $ 14.4 million and $ 16.9 million, respectively.

Approximately $ 19.2 million was recorded through goodwill as part of the purchase accounting for the Inmarsat Acquisition at March 31, 2024 .

The Company recognized a tax benefit of $ 2.5 million, $ 2.0 million and $ 1.1 million for reductions of interest and penalties in income tax expense for fiscal years 2025, 2024 and 2023, respectively.

The Company is subject to periodic audits by domestic and foreign tax authorities.

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The Company’s discretionary matching contributions to the plan are based on the amount of employee contributions and can be made in cash or the Company’s common stock at the Company’s election.

Subsequent to the 2024 fiscal year end, the Company elected to settle the discretionary contributions liability in shares of the Company’s common stock, consistent with fiscal year 2023.

Based on the closing price of the Company’s common stock at the 2024 fiscal year end, the Company would issue approximately 1,550,702 shares of common stock at this time.

Subsequent to the fiscal year ended March 31, 2025, the Company elected to settle the discretionary contributions liability in shares of the Company’s common stock, consistent with fiscal year 2024.

Based on the closing price of the Company’s common stock on March 31, 2025 , the Company would issue approximately 2,643,897 shares of common stock at this time.

Discretionary contributions accrued by the Company as of March 31, 2025 and 2024 amounted to $ 27.5 million and $ 28.1 million, respectively.

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In the normal course of business, the Company engages in transactions with its equity method investments (Navarino UK and JSAT Mobile), which are considered related-party transactions.

The Company recognized revenue from Navarino UK and JSAT Mobile for the fiscal year ended March 31, 2024 of $ 64.4 million.

The Company received cash of $ 61.1 million from Navarino UK and JSAT Mobile for the fiscal year ended March 31, 2024.

Accounts receivable from Navarino UK and JSAT Mobile as of March 31, 2024 was $ 13.2 million.

The Company recognized revenue from Navarino UK and JSAT Mobile in the amounts of $ 65.7 million and $ 64.4 million during fiscal years 2025 and 2024 , respectively.

The Company received cash of $ 68.8 million and $ 61.1 million from Navarino UK and JSAT Mobile during fiscal years 2025 and 2024, respectively.

Accounts receivable from Navarino UK and JSAT Mobile as of March 31, 2025 and 2024 was $ 8.5 million and $ 13.2 million, respectively.

Note 14 — Commitments

3 unchanged sentences

(In thousands)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The Company’s contracts with satellite manufacturers require the Company to make monthly in-orbit satellite performance incentive payments with respect to certain satellites in commercial service, including interest, through fiscal year 2028, subject to the continued satisfactory performance of the applicable satellites.

1 unchanged sentence

As of March 31, 2025 , the Company’s estimated satellite performance incentive obligations and accrued interest for the applicable satellites were approximately $ 11.4 million, of which $ 6.2 million and $ 5.2 million have been classified as current in accrued liabilities and non-current in other liabilities, respectively.

Under these satellite construction contracts, the Company may incur up to $ 17.4 million in total costs for satellite performance incentive obligations and related interest earned with potential future minimum payments of $ 6.0 million, $ 5.8 million, $ 4.7 million, an insignificant amount and zero in fiscal years 2025, 2026, 2027, 2028 and 2029 , respectively, with no commitments thereafter.

The Company has various other purchase commitments under satellite capacity agreements which are used to provide satellite networking services to its customers for future minimum payments of approximately $ 124.2 million, $ 38.2 million, $ 30.1 million, $ 29.8 million and $ 31.9 million in fiscal years 2025, 2026, 2027, 2028 and 2029 , respectively, and $ 20.8 million of further minimum payments thereafter.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Under these satellite construction contracts, the Company may incur up to $ 11.4 million in total costs for satellite performance incentive obligations and related interest earned with potential future minimum payments of $ 5.8 million, $ 4.7 million and an insignificant amount in fiscal years 2026, 2027, 2028 , respectively, with no commitments thereafter.

The Company has various other purchase commitments under satellite capacity agreements which are used to provide satellite networking services to its customers for future minimum payments, which as of March 31, 2025 are approximately $ 145.1 million, $ 82.9 million, $ 74.8 million, $ 73.2 million and $ 23.6 million in fiscal years 2026, 2027, 2028, 2029 and 2030 , respectively, and $ 3.9 million of further minimum payments thereafter.

Note 15 — Contingencies

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Government agencies or if allegations of impropriety are made against it, the Company could suffer serious harm to its business or its reputation, including its ability to bid on new contracts or receive contract renewals and its competitive position in the bidding process.

As of March 31, 2024, the DCMA had approved the Company's incurred costs through fiscal year 2022 with the exception of 2021, which is pending.

The DCMA is currently auditing the Company's 2023 incurred cost submission.

As of March 31, 2025, the DCMA had approved the Company’s incurred costs through fiscal year 2022.

The DCAA is currently auditing the Company's fiscal year 2024 recurring incurred cost submissions.

The Company's cost accounting practices are examined for compliance with the applicable CAS.

3 unchanged sentences

Certain matters resolved during fiscal years 2024 and 2023

On July 8, 2022, Cisco Systems, Inc.

(Cisco), which previously acquired Acacia Communications, Inc.

(Acacia), paid the Company $ 62.2 million in full satisfaction of the July 2019 judgment previously entered against Acacia related to Acacia's breach of contract and misuse of the Company's soft decision forward error correction technology.

During the second quarter of fiscal year 2023, the Company recorded $ 55.8 million as product revenues in the Company's commercial networks segment and $ 6.4 million as interest income with respect to this payment.

On May 8, 2023, Cisco paid the Company an additional $ 97.5 million under protest, pursuant to a judgment entered against Acacia on May 4, 2023 also related to Acacia's continued use of the Company's soft decision forward error correction technology.

The 2023 judgment obligated Acacia to make contractual royalty payments to the Company based on the quarterly sales of certain of its products.

Acacia appealed the May 2023 judgment and on September 29, 2023, the Company and Acacia settled all pending litigation between them.

As a result, in the second quarter of fiscal year 2024 the Company recorded $ 99.9 million as product revenues in the Company's commercial networks segment and $ 7.2 million as interest income.

Additionally, the Company may receive ongoing licensing and royalty payments under the settlement agreement.

Note 16 — Segment Information

The Company’s reportable segments (satellite services, commercial networks and government systems) are primarily distinguished by the type of customer and the related contractual requirements.

The Company’s satellite services segment provides a wide range of satellite-based broadband and narrowband services to a diverse customer base, including commercial airlines, maritime commercial shipping fleets, offshore service vessel operators, commercial fishing companies, residential customers, and small and medium-sized businesses and enterprises.

The Company’s commercial networks segment develops and offers a wide array of advanced satellite and wireless products, antenna systems and networks and terminal solutions that support or enable the provision of fixed and mobile broadband and narrowband

In July 2022 and September 2023, the Company settled certain pending litigation.

Under the terms of the settlement and licensing agreement, the Company receives certain payments, which may vary based on sales of licensed products.

The Company received payments and recognized $ 41.7 million, $ 99.9 million and $ 55.8 million as product revenues within the Company's defense and advanced technologies segment during fiscal years 2025, 2024 and 2023, respectively, and recognized $ 7.2 million and $ 6.4 million as interest income during fiscal years 2024 and 2023, respectively.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

services some of which are ultimately used by the Company’s satellite services segment.

The Company’s government systems segment provides global mobile broadband services and narrowband products and services to military and government users and develops and offers network-centric, internet protocol-based fixed and mobile secure communications products and solutions.

Note 16 — Segment Information

The Company reports its results in two separate segments consisting of communication services and defense and advanced technologies.

The Company's segments are determined consistent with the way management currently organizes and evaluates financial information internally for making operating decisions and assessing performance.

As described in Note 1 — The Company and a Summary of Its Significant Accounting Policies and Note 5 — Discontinued Operations, on October 1, 2022, the Company entered into an Asset Purchase Agreement to sell certain assets and assign certain liabilities comprising the Link-16 TDL Business to L3Harris.

In accordance with ASC 205-20, the Company determined that the Link-16 TDL Business met held-for-sale and discontinued operations accounting criteria at the end of the second quarter of fiscal year 2023.

Accordingly, the segment information for the periods prior to the measurement date of a discontinued operation that is part of a reportable segment is required to be restated to reflect the discontinued operation classification.

Therefore, the discontinued operations have been excluded from segment results for all periods presented prior to the date the Link-16 TDL Sale was completed.

Further, as the discontinued operation is part of a reportable segment but not the entire reportable segment, the costs previously allocated to a discontinued operation have been reasonably reallocated to the remaining operating segments.

On January 3, 2023, the Company completed the Link-16 TDL Sale.

See Note 5 — Discontinued Operations for additional information.

Segment revenues and operating profits (losses) for the fiscal years ended March 31, 2024, 2023 and 2022 were as follows:

Due to the resegmentation that was implemented commencing with the first quarter of fiscal year 2025, prior period segment amounts have been recast to conform to the current segment presentation.

The Company’s communication services segment revenues are primarily derived from the Company’s aviation services (including IFC services), government satcom services, maritime services (including narrowband and safety of communication capabilities), fixed broadband services, and energy services, as well as a wide array of advanced satellite and wireless products, networks and terminal solutions that support or enable the provision of fixed and mobile broadband and narrowband services.

The Company’s defense and advanced technologies segment revenues are primarily derived from the Company’s information security and cyber defense, space and mission systems, tactical networking, and advanced technologies and other, products and services, which are provided to government and commercial customers.

The Company's Chief Operating Decision Maker (CODM) is the Company's Chairman of the Board and Chief Executive Officer .

Segment operating profits (losses) are the primary measure used by the Company's CODM to evaluate segment operating performance.

The CODM regularly reviews budget-to-actual variances of segment operating profits (losses) when evaluating segment performance and allocating resources to each segment.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Segment revenues, expenses and operating profits (losses) for the fiscal years ended March 31, 2025, 2024 and 2023 were as follows:

Fiscal Years Ended

3 unchanged sentences

(In thousands)

Satellite services

Commercial networks

Government systems

Communication services

Aviation services

Government satcom services

Maritime services

Fixed services and other services

Total services

Total products

Total communication services revenues

Defense and advanced technologies

Total services

Information security and cyber defense products

Space and mission systems products

Tactical networking products

Advanced technologies and other products

Total products

Total defense and advanced technologies revenues

Elimination of intersegment revenues

Total revenues

Communication services

Stock-based compensation expense

Other than acquired intangible assets amortization

Acquisition and transaction related expenses

Ground network (FY25), satellite (FY24) impairment

and related charges, net

Other segment items (2)

Total communication services expenses (1)

Defense and advanced technologies

Stock-based compensation expense

Other than acquired intangible assets amortization

Acquisition and transaction related expenses

Other segment items (2)

Total defense and advanced technologies expenses (1)

Total expenses

Operating profits (losses):

Satellite services

Commercial networks

Government systems

Communication services

Defense and advanced technologies

Elimination of intersegment operating profits (losses)

Segment operating profit (loss) before corporate and

amortization of acquired intangible assets

Segment operating profit (loss) before corporate

and amortization of acquired intangible assets

Amortization of acquired intangible assets

Income (loss) from operations

Interest income

Interest expense

(Loss) gain on extinguishment of debt, net

Other income (expense), net

Income (loss) from continuing operations before income taxes

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Assets identifiable to segments include:

accounts receivable, unbilled accounts receivable, inventory, acquired intangible assets and goodwill.

The Company’s property and equipment, including its satellites, earth stations and other networking equipment, are assigned to corporate assets as they are available for use by the various segments throughout their estimated useful lives.

Segment assets as of March 31, 2024 and 2023 were as follows:

March 31, 2024

March 31, 2023

(In thousands)

Segment assets:

Satellite services

Commercial networks

Government systems

Total segment assets

Corporate assets

Other acquired intangible assets, net and goodwill included in segment assets as of March 31, 2024 and 2023 were as follows:

Other Acquired Intangible

March 31, 2024

March 31, 2023

March 31, 2024

March 31, 2023

(In thousands)

Satellite services

Commercial networks

Government systems

Amortization of acquired intangible assets by segment for the fiscal years ended March 31, 2024, 2023 and 2022 was as follows:

Fiscal Years Ended

(In thousands)

Satellite services

Commercial networks

Government systems

Total amortization of acquired intangible assets

(1) For fiscal years 2025, 2024, and 2023, IR&D expense and related activities, including allocable depreciation, stock-based compensation and other expenses were $ 83.4 million, $ 105.0 million and $ 99.5 million, respectively, for the communication services segment, and $ 59.0 million, $ 45.7 million and $ 29.4 million, respectively, for the defense and advanced technologies segment.

(2) Other segment items include operating expenses such as cost of service and product revenues, selling, general and administrative expenses, IR&D expenses and related activities excluding allocable portion of depreciation, other than acquired intangibles amortization, stock-based compensation, and certain significant items that are disclosed under each segment.

The CODM is not regularly provided assets on a segment basis, therefore, such information is not presented.

Revenues by geographic area for the fiscal years ended March 31, 2025, 2024 and 2023 were as follows:

3 unchanged sentences

Total revenues

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The Company distinguishes revenues from external customers by geographic area based on customer location.

The net book value of long-lived assets located outside the United States was approximately $ 2.0 billion at March 31, 2024 and approximately $ 262.4 million at March 31, 2023 , including a net book value of long-lived assets located in the United Kingdom of $ 1.3 billion (primarily related to the Inmarsat Acquisition) and an insignificant amount as of March 31, 2024 and March 31, 2023 , respectively.

The net book value of long-lived assets located outside the United States was approximately $ 1.7 billion at March 31, 2025 and approximately $ 2.0 billion at March 31, 2024 , including a net book value of long-lived assets located in the United Kingdom of $ 1.2 billion and $ 1.3 billion (primarily related to the Inmarsat Acquisition) as of March 31, 2025 and March 31, 2024 , respectively.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Note 17 — Subsequent Event

As of March 31, 2024, the Company managed and reported its operating results through three reportable segments:

satellite services, commercial networks and government systems.

In May 2024, certain organizational changes were made that are expected to impact the Company’s future internal reporting and reportable segments.

The new segment reporting structure is expected to better reflect the Company's strategy following the Inmarsat Acquisition, diverse global end markets, and certain organizational and leadership changes that allow the Company's chief operating decision maker to better assess the operational performance of and allocate resources to its multiple product lines.

The Company's service-based businesses are expected to be reported together as a single reportable segment (referred to as the communication services segment), given that these businesses share significant resources including satellites, ground networks, business platforms and infrastructure.

The Company's remaining product-lines that do not utilize the shared infrastructure or intellectual property and the portion of the Company's government businesses that do not rely on the shared infrastructure platforms and other related costs shared by the Company's satellite communications segment, are expected to be aggregated into a single reportable segment (referred to as the defense and advanced technologies segment).

The Company expects that the change to its reportable segments will be effective commencing with the first quarter of fiscal year 2025.

On May 2, 2025, subsequent to fiscal year 2025, the Company repurchased all of the outstanding 2025 Notes at a redemption price of 100 % of the principal amount so redeemed plus accrued and unpaid interest thereon to the redemption date, and the indenture governing the 2025 Notes was satisfied and discharged in accordance with its terms.

As a result of the redemption of the 2025 Notes, the Company is expected to recognize a loss of an insignificant amount on extinguishment of debt during the first quarter of fiscal year 2026.

VALUATION AND QUALIFYING ACCOUNTS

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Charged to costs and expenses

Charged to goodwill*

Balance, March 31, 2023

Charged to costs and expenses

Charged to goodwill*

Balance, March 31, 2024

Charged to costs and expenses

Charged to goodwill**

Balance, March 31, 2025

* Related to the acquisitions of RigNet and EBI

* Related to the acquisition of Inmarsat

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 9A. Controls and Procedures