What changed in this filing

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Item 9A. Controls and Procedures

2026-05-29 compared with 2025-05-27 · 423 added, 414 removed, 1358 unchanged (38% of the section changed)

17 unchanged sentences

OTHER INFORMATION

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.

On February 10, 2026 , John Stenbit , a member of our Board of Directors , adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) for the sale of up to 5,000 shares of our common stock if certain price thresholds are met from June 3, 2026 until September 1, 2026 .

On February 25, 2026 , Garrett Chase , our Chief Financial Officer , adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) for the sale of up to 88,000 shares of our common stock if certain price thresholds are met from June 3, 2026 until February 25, 2028 .

On March 9, 2026 , Theresa Wise , a member of our Board of Directors , adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) for the sale of up to 2,500 shares of our common stock (to be acquired upon the exercise of options if certain price thresholds are met) from June 8, 2026 until August 4, 2026 .

On March 9, 2026 , Mark Dankberg , our Chairman of the Board of Directors and Chief Executive Officer , adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) for the sale of up to 400,000 shares of our common stock if certain price thresholds are met from June 8, 2026 until March 6, 2027 .

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

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We intend to disclose future amendments to certain provisions of our code of ethics, or waivers of such provisions granted to executive officers and directors, on our website within four business days following the date of such amendment or waiver.

We have adopted a policy on insider trading applicable to our directors, officers, employees, and other covered persons, and have implemented processes for the Company, that we believe are reasonably designed to promote compliance with insider trading laws, rules and regulations, and Nasdaq listing standards.

It is our policy to comply with U.S.

insider trading laws and regulations, including with respect to transactions in our own securities.

Our Insider Trading Compliance Policies and Procedures are filed as Exhibit 19 to this Annual Report on Form 10-K.

EXECUTI VE COMPENSATION

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Description of Registered Securities

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.

and each of its directors and officers

Employee Stock Purchase Plan (As Amended and Restated Effective September 7, 2023)

Employee Stock Purchase Plan of Viasat, Inc.

(As Amended and Restated Effective September 4, 2025)

1996 Equity Participation Plan of Viasat, Inc.

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

1996 Equity Participation Plan Performance Cash Award Agreement — Free Cash Flow and Relative TSR

1996 Equity Participation Plan Performance-based Restricted Stock Unit Award Agreement — Adjusted EBITDA and TSR

2024 Employment Inducement Incentive Award Plan of Viasat, Inc.

15 unchanged sentences

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

Performance Award, dated as of December 16, 2025, by and between Viasat, Inc.

and Robert Blair

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

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

Second Amendment Agreement, dated as of March 23, 2016, 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

Third Amendment Agreement, dated as of October 11, 2016, 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

Fourth Amendment to Credit Agreement, dated as of July 17, 2018, 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

Fifth Amendment Agreement, dated as of February 28, 2019, 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

Sixth Amendment to Credit Agreement, dated as of August 3, 2022, among Viasat Technologies Limited, Viasat, Inc., JP Morgan Chase Bank, National Association, and the Export-Import Bank of the United States

Seventh Amendment to Credit Agreement, dated as of April 14, 2023, among Viasat Technologies Limited, Viasat, Inc., JP Morgan Chase Bank, National Association, and the Export-Import Bank of the United States

Eighth Amendment to Credit Agreement, dated as of September 27, 2023, among Viasat Technologies Limited, Viasat, Inc., JP Morgan Chase Bank, National Association, and the Export-Import Bank of the United States

Credit Agreement, dated as of March 4, 2022, by and among Viasat, Inc., Bank of America, N.A.

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Finco LLC, the subsidiary loan parties party thereto, Barclays Bank PLC, as existing administrative agent and collateral agent, Bank of America, N.A., as successor administrative agent and collateral agent, and the lenders party thereto

Credit Agreement, dated as of January 21, 2026, by and among ViaSat Technologies Limited, Viasat, Inc., J.P.

Morgan Securities LLC (as Ex-Im Facility Agent) and the Export-Import Bank of the United States

Cooperation Agreement, dated as of May 6, 2026, by and among Viasat, Inc., Carronade Capital Management, LP and the other persons and entities listed on Schedule A thereto

Insider Trading Compliance Policies and Procedures

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/s/ MARK DANKBERG

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, 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.

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, Garrett Chase and Camellia E.

FitzGerald, 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.

/s/ MARK DANKBERG

Chairman of the Board and Chief Executive Officer

Chairman of the Board and

Chief Executive Officer

Mark Dankberg

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/s/ GARRETT CHASE

Senior Vice President and Chief Financial Officer

Senior Vice President and

Chief Financial Officer

Garrett Chase

(Principal Financial Officer)

/s/ SHAWN DUFFY

Senior Vice President and Chief Accounting Officer

/s/ CAMELLIA E.

Chief Accounting Officer

(Principal Accounting Officer)

1 unchanged sentence

Richard Baldridge

/s/ BARBARA FRENKEL

Barbara Frenkel

/s/ WILLIAM LAPLANTE

William LaPlante

/s/ MICHAEL PAULL

Michael Paull

5 unchanged sentences

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

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”).

and its subsidiaries (the "Company") as of March 31, 2026 and 2025, 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, 2026, including the related notes and financial statement schedule listed in the 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, 2026, 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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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.

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 matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Revenue Recognition – Communication Services Segment

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Operating lease right-of-use assets

Other acquired intangible assets, net

Acquired intangible assets, net

LIABILITIES AND EQUITY

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

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

136,557,695 and 130,210,407 shares outstanding

at March 31, 2026 and 2025, respectively

Paid-in capital

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noncontrolling interest, net of tax

Comprehensive income (loss) attributable to

Comprehensive income (loss) attributable to Viasat, Inc.

See accompanying notes to the consolidated financial statements.

1 unchanged sentence

Fiscal Years Ended

Cash Flows from Continuing and Discontinued Operations

(In thousands)

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Stock-based compensation expense

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

Disposition of fixed assets losses, ground network (FY25)

and satellite (FY24) impairment, net

Gain on sale of equity interest in unconsolidated affiliate

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 acquisition:

Increase (decrease) in cash resulting from changes in

operating assets and liabilities, net of effect of acquisition:

Accounts receivable

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Proceeds from insurance claims on satellites

Proceeds from sale of businesses

Proceeds from sale of equity interest in unconsolidated affiliate

Payment related to acquisition of business, net of cash acquired

1 unchanged sentence

Payments to acquire short-term investments

Other investing activities

Net cash provided by (used in) investing activities

Cash flows from financing activities:

Proceeds from debt borrowings

Payments on debt borrowings

Proceeds from debt borrowings

Payments of debt issuance costs

Proceeds from issuance of common stock under equity plans

Distributions to minority shareholders

Purchase of common stock in treasury (immediately retired)

related to tax withholdings for stock-based compensation

Repurchase of shares by majority-owned subsidiary

Proceeds from issuance of common stock under equity plans

Other financing activities

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Cash and cash equivalents and restricted cash at beginning of fiscal year

Cash and cash equivalents and restricted cash at end of fiscal year

Cash and cash equivalents at end of fiscal year

Supplemental information:

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Balance at March 31, 2023

Issuance of stock under

Employee Stock Purchase Plan

Exercise of stock options

Issuance of stock under Employee Stock Purchase Plan

Stock-based compensation

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 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),

Other comprehensive income (loss), net of tax

Balance at March 31, 2024

Exercise of stock options

Issuance of stock under

Employee Stock Purchase Plan

Issuance of stock under Employee Stock Purchase Plan

Stock-based compensation

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

Shares issued in settlement of certain accrued employee compensation liabilities

RSU awards vesting, net of shares withheld for taxes which have been retired

Other noncontrolling interest activity

Net income (loss)

Other comprehensive income (loss),

Other comprehensive income (loss), net of tax

Balance at March 31, 2025

Issuance of stock under

Employee Stock Purchase Plan

Exercise of stock options

Issuance of stock under Employee Stock Purchase Plan

Stock-based compensation

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 settlement of certain accrued employee compensation liabilities

RSU and PSU awards vesting, net of shares withheld for taxes which have been retired

Distributions declared to minority shareholders

Other noncontrolling interest activity

Net income (loss)

Other comprehensive income (loss),

Other comprehensive income (loss), net of tax

Balance at March 31, 2026

8 unchanged sentences

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.

In December 202 5, the Company entered into an agreement to sell all of its interests in its equity method investment, Navarino UK, to Sogra Bidco Limited, a subsidiary of ICG.

In March 2026, the sale was completed and the Company received sale proceeds of $ 203.0 million and recognized a gain on disposal of equity method investment of $ 168.1 million in the fourth quarter of fiscal year 2026 in other income (expense), net in the consolidated statements of operations and comprehensive income (loss).

All significant intercompany amounts have been eliminated.

3 unchanged sentences

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 year ended March 31, 2023.

(L3Harris) in exchange for approximately $ 1.96 billion in cash (the Link-16 TDL Sale) .

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

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Concentration of risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, derivative financial instruments and accounts receivable which are generally not collateralized.

The Company limits its exposure to credit loss by placing its cash equivalents and derivative financial instruments with high credit quality financial institutions and investing in high quality short-term debt instruments.

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents and accounts receivable which are generally not collateralized.

The Company limits its exposure to credit loss by placing its cash equivalents with high credit quality financial institutions and investing in high quality short-term debt instruments.

The Company establishes customer credit policies related to its accounts receivable based on historical collection experiences within the various markets in which the Company operates, historical past due amounts and any specific information that the Company becomes aware of such as bankruptcy or liquidity issues of customers.

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Billed accounts receivable to the U.S.

Government as of March 31, 2025 and 2024 were approximately 11 % and 13 %, respectively, of total billed receivables.

Government as of March 31, 2026 and 2025 were approximately 14 % and 11 %, respectively, of total billed receiv ables.

In addition, none of the Company’s commercial customers comprised 10% or more of total revenues for fiscal years 2026, 2025 and 2024.

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When assets are sold or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the accounts and any resulting gain or loss is recognized in operations, which for the periods presented, primarily related to losses incurred for unreturned customer premise equipment (CPE).

The Company computes depreciation using the straight-line method over the estimated useful lives of the assets ranging from two to 38 years.

The Company computes depreciation using the straight-line method over the estimated useful lives of the assets ranging fr om two to 38 years.

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 .

Capitalized costs for internal-use software are included in property, equipment and satellites, net in the Company’s consolidated balance sheets.

1 unchanged sentence

With respect to the construction of satellites, gateway and networking equipment and other assets under construction, the Company capitalized $ 240.7 million, $ 215.4 million and $ 227.5 million of interest expense during fiscal years 2026, 2025 and 2024, 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.

As of March 31, 2026, the Company's complementary fleet of 23 in service or operational satellites spanned 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 supported the European Aviation Network to provide IFC services to commercial airlines in Europe, and a hybrid Ka-/L-band satellite.

The second ViaSat-3 class satellite, ViaSat-3 F2, was launched into orbit in November 2025.

Furthermore, as of March 31, 2026, the Company had eight additional geostationary earth orbit (GEO) satellites under construction or in preparation for launch:

a high-capacity Ka-band GEO satellite (ViaSat-3 F3), three adaptive Ka-band GEO satellites (GX7, GX8 and GX9) and four Inmarsat-8 L-band GEO safety service satellites.

Subsequent to fiscal year 2026, in April 2026, the Company launched the third ViaSat-3 class satellite, ViaSat-3 F3, into orbit with commercial service expected to commence by late summer 2026.

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

2 unchanged sentences

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

The total cost and accumulated depreciation of CPE units included in property, equipment and satellites, net, as of March 31, 2025 were $ 526.0 million and $ 328.0 million, respectively.

The total cost and accumulated depreciation of CPE units included in property, equipment and satellites, net, as of March 31, 2026 were $ 522.9 million and $ 349.4 million, r espectively.

The total cost and accumulated depreciation of CPE units included in property, equipment and satellites, net, as of March 31, 2025 were $ 526.0 million and $ 328.0 million, respectively.

1 unchanged sentence

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.

On July 12, 2023, the Company reported a reflector deployment issue that materially impacted the performance of the ViaSat-3 F1 satellite.

The Company and the reflector provider conducted a rigorous review of the development and deployment of the affected reflector to determine its impact and potential remedial measures.

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.

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.

The Company and Airbus, the satellite's manufacturer, performed a root cause analysis of the anomaly and concluded the satellite would not operate as intended.

The Company determined that the full carrying value of the I-6 F2 satellite is not recoverable.

The I-6 F2 anomaly does not impact ongoing customer services.

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

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.

During fiscal year 2024, the Company reported a reflector deployment issue with the ViaSat-3 F1 satellite that resulted in the Company recovering less than 10 % of the throughput on the ViaSat-3 F1 satellite, and reported a power subsystem anomaly suffered by the Inmarsat-6 F2 satellite during its orbit raising phase that caused the full carrying value of the Inmarsat-6 F2 satellite to not be recoverable.

As a result of the anomalies experienced in the two satellites and integration impact related to the Inmarsat Acquisition (whereby 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) , the Company recorded a reduction to the carrying value of satellites under construction (including capitalized interest), of approximately $ 1.67 billion in fiscal year 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 Inmarsat-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.

During fiscal years 2026, 2025 and 2024, the Company received approximately $ 10.0 million, $ 251.5 million and $ 508.6 million, respectively, in insurance recovery proceeds related to such claims, resulting in the full collection of all related insurance claims.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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

3 unchanged sentences

Costs incurred for these arrangements are capitalized for application development activities, if material, and immediately expensed for preliminary project activities and postimplementation activities.

The Company amortizes the capitalized development costs straight-line over the fixed, non-cancellable term of the associated hosting arrangement plus any reasonably certain renewal periods.

The Company amortizes the capitalized implementation costs straight-line over the fixed, non-cancellable term of the associated hosting arrangement plus any reasonably certain renewal periods.

The capitalized costs are included in other current assets within the prepaid expenses and other current assets caption, and other assets (long-term) on the Company's consolidated balance sheets.

2 unchanged sentences

As of March 31, 2026 and 2025 , the related accumulated amortization was $ 29.0 million and $ 18.4 million, respectively.

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.

The Company recognized amortization of capitalized implementation costs of $ 10.5 million, $ 8.8 million and $ 4.2 million during fiscal years 2026, 2025 and 2024 , respectively.

Lessee accounting

4 unchanged sentences

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.

10 unchanged sentences

For both operating and finance leases, lease payments are allocated between a reduction of the lease liability and interest expense.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Lessor accounting

3 unchanged sentences

The Company is also a lessor for certain insignificant communications equipment.

These leases meet the criteria for operating lease classification.

These leases meet the criteria for operating l ease classification.

Lease income associated with these leases is not material.

13 unchanged sentences

In addition, all goodwill must be assigned to reporting units for purposes of impairment testing.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Patents, orbital slots and other licenses

The Company capitalizes the costs of obtaining or acquiring patents, orbital slots and other licenses.

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.

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

Total capitalized costs related to patents, orbital slots and other licenses of $ 144.5 million and $ 129.4 million were included in other assets as of March 31, 2026 and 2025 , respectively.

5 unchanged sentences

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

The Company capitaliz ed $ 5.1 million, $ 35.6 million and $ 53.9 million of debt issuance costs during fiscal years 2026, 2025 and 2024 , 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).

3 unchanged sentences

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 ASC 835-30.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Software development

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

As of March 31, 2026 and 2025, the Company ha d $ 871.1 million and $ 780.3 million, respectively, of capitalized costs related to software developed for resale.

Accumulated amortization related to these assets was $ 554.2 million and $ 515.8 million as of March 31, 2026 and 2025 , respectively.

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Amortization expense for capitalized software development costs was $ 41.1 million, $ 54.5 million and $ 59.1 million during fiscal years 2026, 2025 and 2024 , respectively.

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)

The estimated aggregate amortization expense related to these assets for each of the next five fiscal years is $ 58.8 million for fiscal year 2027 , $ 74.0 million for fiscal year 2028 , $ 63.1 million for fiscal year 2029 , $ 45.1 million for fiscal year 2030 and $ 27.4 million for fiscal year 2031 .

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 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.

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 and the impairment related to certain of the Company's satellites under construction and satellite programs in the second and third quarters of fiscal year 2024 (as discussed in Note 1 — The Company and a Summary of Its Significant Accounting Policies — Property, equipment and satellites above), no other material impairments were recorded by the Company for fiscal years 2026, 2025 and 2024.

The Company accounts for its goodwill under ASC 350.

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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.

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 .

Based on the Company’s qualitative assessment performed during the fourth quarter of fiscal year 2026, 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, 2026 , and therefore, determined it was not necessary to perform a quantitative impairment analysis.

No impairments were recorded by the Company related to goodwill and other intangible assets for fiscal years 2026, 2025 and 2024 .

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Fair value of financial instruments

The carrying amounts of the Company’s financial instruments, including cash equivalents, receivables, accounts payable and accrued liabilities, approximate their fair values due to their short-term maturities.

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)

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

Self-insurance and post-retirement medical benefit liabilities

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The Company utilizes actuarial methods as well as other historical information for the purpose of estimating ultimate costs for a particular plan year.

Based on these actuarial methods, along with currently available information and insurance industry statistics, the Company has recorded self-insurance liability for its plans of $ 5.9 million and $ 6.5 million as of March 31, 2025 and 2024, respectively.

Based on these actuarial methods, along with currently available information and insurance industry statistics, the Company recorded self-insurance liability for its plans of $ 5.6 million and $ 5.9 million as of March 31, 2026 and 2025, respectively.

The Company’s estimate, which is subject to inherent variability, is based on average claims experience in the Company’s industry and its own experience in terms of frequency and severity of claims, including asserted and unasserted claims incurred but not reported, with no explicit provision for adverse fluctuation from year to year.

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Revenues, expenses, gains, losses, net income (loss) and other comprehensive income (loss) are reported in the consolidated financial statements at the consolidated amounts, which include the amounts attributable to both the controlling and noncontrolling interest.

On August 15, 2022, TrellisWare, a majority-owned subsidiary of the Company, completed the repurchase of shares of its common stock from participating stockholders for a total purchase price of approximately $ 30.0 million.

The Company did not elect to participate in the share repurchase, and accordingly, the Company's ownership percentage of TrellisWare increased to slightly over 60 % as a result of the share repurchase.

The following table summarizes the effect of the change in the Company's percentage ownership interest in TrellisWare on the Company's equity for the fiscal years ended March 31, 2025, 2024 and 2023:

Fiscal Years Ended

March 31, 2025

March 31, 2024

March 31, 2023

(In thousands)

Net income (loss) attributable to Viasat, Inc.

Transfers to noncontrolling interest

Change from net income (loss) attributable to Viasat, Inc.

and transfers from (to) noncontrolling interest

In June 2025, TrellisWare declared a cash dividend for a total of $ 155.7 million.

The Company's share of this dividend was $ 96.0 million.

The remaining $ 59.7 million was recorded as a reduction to noncontrolling interest in subsidiary and was paid to minority shareholders during fiscal year 2026.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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As of March 31, 2026 and 2025 , 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.

During fiscal years 2026, 2025 and 2024, the Company issued 2,499,417 shares, 1,575,356 shares and 1,547,027 shares of common stock, respectively, based on the vesting terms of certain restricted stock unit (RSU) and performance-based RSU (PSU) agreements.

In order for employees to satisfy minimum statutory employee tax withholding requirements related to the issuance of common stock underlying these RSU and PSU agreements, the Company repurchased 932,878 shares, 553,495 shares and 531,091 shares of common stock at cost and with a total value of $ 18.3 million, $ 5.5 million and $ 11.7 million during fiscal years 2026, 2025 and 2024, respectively.

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 (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.

As a result of the Inmarsat Acquisition, 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 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.

Upon amendment of Inmarsat's senior secured term loan facilities in March 2024 (see Note 7 — 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 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.

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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 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.

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 and comprehensive income (loss) 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 an insignificant amount (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 an insignificant amount), 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 were included in operating cash flows in the consolidated statements of cash flows.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Foreign currency

In general, the functional currency of a foreign operation is deemed to be the local country’s currency.

Consequently, assets and liabilities of operations outside the United States are generally translated into U.S.

dollars, and the effects of foreign currency translation adjustments are included as a component of accumulated other comprehensive income (loss) within Viasat, Inc.

stockholders’ equity.

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.

The Company operates internationally through various subsidiaries whose functional currencies are generally the local country’s currency, with few exceptions of subsidiaries using a functional currency that is different than their local currency.

The assets and liabilities of these foreign subsidiaries are translated into U.S.

dollars using exchange rates at the end of the reporting period.

Revenue and other expenses are recorded using average exchange rates for the period.

Resulting foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in the consolidated financial statements.

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

during fiscal years 2026, 2025 and 2024 was a gain of $ 22.3 million (net of an insignificant amount of tax), a loss of $ 9.3 million (net of an insignificant amount of tax), and a gain of $ 3.0 million (net of an insignificant amount of tax), respectively.

Revenue recognition

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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.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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

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For product revenues, control generally passes to the customer upon delivery of goods to the customer.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The Company’s contracts with the U.S.

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As of March 31, 2026, 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 DCAA is currently auditing the Company's fiscal year 2025 recurring incurred cost submission.

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

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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 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.

Remaining performance obligations associated with the Company’s subscribers for residential and enterprise fixed 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 .

As of March 31, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 4.1 billion, of which the Company expects to recognize a little less than half over the next 12 months, with the balanc e recognized thereafter .

Disaggregation of revenue

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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.

Government were attributable to each of the Company's two segments, with higher revenues from the U.S.

Government reported within the Company's communication services segment for fiscal year 2026, and approximately half of such revenues reported within each of the Company's two segments for each of fiscal years 2025 and 2024.

Almost all of the Company's revenues are derived from fixed-price contracts (which require the Company to provide products and services under a contract at a specified price), which are reported in both of the Company's segments.

The remainder of the Company's revenues is 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 are mainly reported within the Company's defense and advanced technologies segment.

A portion of the Company’s revenues is derived from customer contracts that include the development of products.

Revenues for the Company’s funded development from its customer contracts were approximately 11 % , 11 % and 12 % of its total revenues for fiscal years 2026, 2025 and 2024, respectively, mainly reported within the Company's defense and advanced technologies segment.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Contract balances

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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.

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Deferred revenues, long-term portion

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.

Unbilled accounts receivable increased by $ 47.0 million during fiscal year 2026, driven by revenue recognized in excess of billings related to the Company's IFC business and for certain larger development projects.

Collections in excess of revenues and deferred revenues decreased by an insignificant amount during fiscal year 2026, primarily driven by revenue recognized in excess of advances on goods or services received.

During fiscal year 2026, the Company recognized revenue of $ 270.8 million that was previously included in the Company’s collections in excess of revenues and deferred revenu es at March 31, 2025.

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 .

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For contracts with an estimated amortization period of less than one year, the Company elected the practical expedient and expenses incremental costs immediately.

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, $ 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 .

The Company’s deferred customer contr act acquisition costs and costs to fulfill contract balances were $ 8.2 million and $ 72.9 million, respectively, as of March 31, 2026 .

Of the Company’s total deferred customer contract acquisition costs and costs to fulfill contracts, $ 25.0 million was included in other current assets within the prepaid expenses and other current assets caption on the Co mpany’s consolidated balance sheets a nd $ 56.1 million was included in other assets on the Company’s consolidated balance sheets as of March 31, 2026.

The Comp any’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 .

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 $ 23.7 million, $ 33.1 million and $ 40.4 million for fiscal years 2026, 2025 and 2024 , 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 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.

Advertising expenses for fiscal years 2026, 2025 and 2024 wer e $ 20.7 million, $ 19.2 million and $ 26.4 million, respectively.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Stock-based compensation

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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.

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

Expense for 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.

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.

The Company also has an insignificant amount of long-term cash awards, or liability awards, which are remeasured at fair value each reporting period until the awards are settled.

Independent research and development

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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)

Potential common stock includes options granted (including PSOs), 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.

Segment reporting

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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.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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.

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Recent authoritative guidance

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.

ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered in measuring the security's fair value.

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

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 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:

In October 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-06, Disclosure Improvements:

Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative.

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

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

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

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):

Improvements to Income Tax Disclosures.

ASU 2023-09 enhances income tax disclosures by requiring disclosure of specific categories in the income tax rate reconciliation table and disaggregation of income taxes paid.

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

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.

ASU 2023-09 enhances annual income tax disclosures by requiring disclosure of specific categories in the income tax rate reconciliation table and disaggregation of income taxes paid.

Beginning with the annual reporting of fiscal year 2026, the Company adopted the new guidance on a prospective basis and applied its provisions to the Company's income tax disclosures.

See Note 10 — Income Taxes for additional information.

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

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The amendments in this update are not intended to result in significant accounting changes for most entities.

The amendments in this update are effective for the Company beginning in fiscal year 2026.

Early adoption is permitted.

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The Company adopted the new guidance on a prospective basis in the first quarter of fiscal year 2026 and the guidance did not have an impact on its consolidated financial statements and disclosures.

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

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

In May 2025, the FASB issued ASU 2025-04, Compensation – Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606):

Clarifications to Share-Based Consideration Payable to a Customer.

The purpose of this ASU is to reduce diversity in practice and improve the decision usefulness and operability of the guidance for share-based consideration payable to a customer in conjunction with selling goods or services.

The new standard will become effective for the Company's interim and annual disclosures beginning in fiscal year 2028.

Early adoption is permitted and the new guidance should be applied either on a modified retrospective or a retrospective basis.

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

In July 2025, the FASB issued ASU 2025-05, Financial Instruments – Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets.

The purpose of this ASU is to allow entities to apply a practical expedient when estimating expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under Topic 606.

The new standard will become effective for the Company's interim and annual disclosures beginning in fiscal year 2027.

Early adoption is permitted and the new guidance should be applied prospectively.

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

In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software.

The purpose of this ASU is to modernize the accounting guidance for the costs to develop software for internal use by removing all references to prescriptive and sequential software development project stages and providing further guidance on when an entity is required to start capitalizing eligible costs.

The new standard will become effective for the Company's interim and annual disclosures beginning in fiscal year 2029.

Early adoption is permitted and the new guidance should be applied either on a prospective transition, a modified transition or a retrospective transition approach.

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

In September 2025, the FASB issued ASU 2025-07, Derivative and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606):

Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract.

This ASU expands the scope exception in Topic 815 and clarifies the guidance on share-based noncash consideration from a customer in Topic 606.

The new standard will become effective for the Company's interim and annual disclosures beginning in fiscal year 2028.

Early adoption is permitted and the new guidance should be applied either on a prospective or a modified retrospective basis.

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

In November 2025, the FASB issued ASU 2025-08, Financial Instruments - Credit Losses (Topic 326):

Purchased Loans.

This ASU expands the population of acquired financial assets subject to the gross-up approach to include purchased seasoned loans.

The new standard will become effective for the Company's interim and annual disclosures beginning in fiscal year 2028.

Early adoption is permitted and the new guidance should be applied prospectively.

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

In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815):

Hedge Accounting Improvements.

This ASU includes five targeted amendments intended to more closely align hedge accounting with the underlying economics of entities' risk management activities.

The new standard will become effective for the Company's interim and annual disclosures beginning in fiscal year 2028.

Early adoption is permitted and the new guidance should be applied prospectively.

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

In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832):

Accounting for Government Grants Received by Business Entities.

The purpose of this ASU is to reduce diversity in practice by establishing accounting guidance for recognition, measurement and presentation of a government grant received by a business entity.

The new standard will become effective for the Company's interim and annual disclosures beginning in fiscal year 2030.

Early adoption is permitted and the new guidance should be applied either on a modified prospective, a modified retrospective or a full retrospective basis.

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

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270):

Narrow-Scope Improvements.

This ASU provides a comprehensive list of interim disclosures that are required by GAAP and clarifies the applicability of Topic 270, as well as a requirement to disclose events since the end of the last annual reporting period that have a material impact on the entity.

The new standard will become effective for the Company's interim disclosures beginning in fiscal year 2029.

Early adoption is permitted and the new guidance should be applied prospectively or retrospectively to any or all prior 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)

In December 2025, the FASB issued ASU 2025-12, Codification Improvements.

This ASU includes amendments to the FASB Accounting Standards Codification for a broad range of topics arising from technical corrections, unintended application of the Codification, clarifications, and other minor improvements.

These amendments are not expected to have a significant effect on current accounting practice for most entities.

The new standard will become effective for the Company's interim and annual reporting periods beginning in fiscal year 2028.

Early adoption is permitted on an issue-by-issue basis and the new guidance should be applied prospectively or retrospectively on an issue-by-issue basis.

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

Note 2 — Composition of Certain Balance Sheet Captions

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Prepaid expenses and other current assets:

Insurance receivable

Prepaid expenses

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Accrued employee compensation

Accrued vacation

Operating lease 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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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, 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 — As of March 31, 2026, the Company’s long-term debt (including current portion) was comprised of (1) $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 Inmarsat Term Loan Facility and borrowings under Viasat’s direct loan facility (the Ex-Im Credit Facility) with the Export-Import Bank of the United States (Ex-Im Bank), 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, 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.

The estimated fair value of Viasat's former direct loan facility (the Former Ex-Im Credit Facility) with Ex-Im Bank, which was fully repaid at maturity in October 2025, was Level 2 and $ 19.2 million as of March 31, 2025.

The estimated fair value of the Company's long-term debt related to the Ex-Im Credit Facili ty was Level 2 and was $ 186.2 million as of March 31, 2026.

As of March 31, 2026 and 2025, the esti mated fair value of the Company’s outstanding long-term debt related to each series of Notes was Level 2 and was $ 597.8 million and $ 575.0 million, respectively, for the 2027 Notes, $ 395.0 million and $ 350.0 million, respectively, for the 2028 Notes, $ 2.07 billion and $ 1.82 billion for the Inmarsat 2029 Notes, and $ 724.9 million and $ 552.8 million, respectively, for the 2031 Notes.

During the first quarter of fiscal year 2026, Viasat's 5.625 % Senior Notes due 2025 (the 2025 Notes) were redeemed in full, and as of March 31, 2025, their estimated fair value was Level 2 and $ 438.6 million.

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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The fair value of the Company’s outstanding satellite performance incentive obligations is estimated to approximate their carrying value based on current rates (Level 2).

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.

As of March 31, 2026 and 2025, the Company’s estimated satellite performance incentive obligations relating to certain satellites in commercial service, including accrued interest, were $ 6.1 million a nd $ 11.4 million, respectively.

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)

For each applicable 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 fiscal year 2024, the change in fair value of the contingent consideration was immaterial.

Note 4 — Acquisition

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and foreign income tax purposes.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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 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 connection with the Inmarsat Acquisition, the Company recorded acquisition-related transaction costs of $ 31.3 million during fiscal year 2024, included in selling, general and administrative expenses.

(In thousands)

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Total consideration transferred

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.

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:

Current liabilities and other long-term liabilities included 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.

Weighted Average Useful Life

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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.

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.

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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).

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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.

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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

March 31, 2024

Fiscal Year Ended

March 31, 2024

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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 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 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.

The following table presents key components of “Net income (loss) from discontinued operations, net of tax” for the fiscal years ended March 31, 2024 and 2023:

Fiscal Years Ended

March 31, 2024

Note 5 — Goodwill and Acquired Intangible Assets

During fiscal years 2026 and 2025, the Company’s goodwill remained flat.

Goodwill by segment as of March 31, 2026 and 2025 was as follows:

March 31, 2026

(In thousands)

Operating expenses:

Cost of revenues

Other operating expenses

Net income (loss) from discontinued operations before income taxes

Gain (loss) on disposal of discontinued operations before income taxes, net of costs to sell

(Provision for) benefit from income taxes

Net income (loss) from discontinued operations, net of tax

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 year ended March 31, 2023:

Fiscal Year Ended

March 31, 2025

(In thousands)

Amortization of intangible assets

Capital expenditures

Note 6 — Goodwill and Acquired Intangible Assets

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 $ 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:

Communication services

Defense and advanced technologies

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

Amortization expense related to acquired intangible assets was $ 260.7 million, $ 263.9 million and $ 227.2 million for fiscal years 2026, 2025 and 2024, respectively.

Acquired intangible assets and the related accumulated amortization as of March 31, 2026 and 2025 were as follows:

As of March 31, 2026

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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.

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 acqu ired.

Expected amortization expense for acquired intangible assets for each of the following periods is as follows:

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Expected for fiscal year 2031

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 6 — Leases

The Company’s operating leases consist primarily of leases for office space, data centers and satellite ground facilities and have remaining terms that typically range from less than one year to 16 years , some of which include renewal options, and some of which include options to terminate the leases within one year.

Certain earth station leases have renewal terms that have been deemed to be reasonably certain to be exercised and as such have been recognized as part of the Company’s right-of-use assets and lease liabilities.

Cer tain earth station leases have renewal terms that have been deemed to be reasonably certain to be exercised and as such have been recognized as part of the Company’s right-of-use assets and lease liabilities.

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

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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, in the consolidated balance sheets.

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 .

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, in the consolidated balance sheets.

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 in both of the Company's segments.

The Company’s finance leases consist primar ily of satellite lifetime Ka-band capacity leases and have remaining terms from less than one year to 14 years .

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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Total future lease payments required

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 .

As of March 31, 2026, the Company h ad additional operating and finance leases that have not yet commenced, with total lease obligations of approximately $ 92.7 million.

These operating and finance leases will commence between fiscal year 2027 and fiscal year 2030 with lease terms of three to 16 years .

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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Ex-Im Credit Facility

Former Ex-Im Credit Facility

Inmarsat Revolving Credit Facility

Viasat Revolving Credit Facility

2025 Notes (1)

Inmarsat 2029 Notes

Finance lease obligations (see Note 6)

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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

In March 2022, the Company entered into the $ 700.0 million 2022 Term Loan Facility, which was fully drawn at closing and matures on March 4, 2029 .

In March 2022, the Company entered into the $ 700.0 million 2022 Term Loan Facility, w hich was fully drawn at closing and matures on March 4, 2029 .

At March 31, 2026, the Company had $ 673.8 million in principal amount of outstanding borrowings under the 2022 Term Loan Facility.

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The 2022 Term Loan Facility contains covenants that restrict, among other things, the ability of Company and its restricted subsidiaries to incur additional debt, grant liens, sell assets, make investments, pay dividends and make certain other restricted payments .

The Company was in compliance with its financial covenants under the 2022 Term Loan Facility as of March 31, 2025.

The Comp any was in compliance with its covenants under the 2022 Term Loan Facility as of March 31, 2026.

Borrowings under the 2022 Term Loan 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.

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2023 Term Loan Facility

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, 2026, the Company had $ 601.3 million in principal amount of outstanding borrowings under the 2023 Term Loan Facility.

Borrowings under the 2023 Term Loan Facility are required to be repaid in quarterly installments of $ 1.5 million each, which commenced on December 31, 2023 , followed by a final installment of $ 576.6 million at maturity.

Borrowings under the 2023 Term Loan Facility are required to b e repaid in quarterly installments of $ 1.5 million each, which commenced on December 31, 2023 , followed by a final installment of $ 576.6 million at maturity.

Borrowings under the 2023 Term Loan Facility bear interest, at the Company's option, at either (1) a base rate equal to the greater of the administrative agent’s prime rate as announced from time to time, the federal funds effective rate plus 0.50%, and the forward-looking term SOFR rate administered by CME for a one-month interest period plus 1.00%, subject to a floor of 1.50% for the initial term loans, plus an applicable margin of 3.50%, or (2) the forward-looking term SOFR rate administered by CME for the applicable interest period, subject to a floor of 0.50% for the initial term loans, plus an applicable margin of 4.50%, plus a credit spread adjustment ranging from 0.11% to 0.43%.

As of March 31, 2025, the effective interest rate on the Company’s outstanding borrowings under the 2023 Term Loan Facility was 9.93 % .

As of Ma rch 31, 2026, the effective interest rate on the Company’s outstanding borrowings under the 2023 Term Loan Facility was 9.29 % .

The 2023 Term Loan Facility is required to be guaranteed by certain significant domestic subsidiaries of the Company ( as defined in the 2023 Term Loan Facility) and secured by substantially all of the Company’s assets and any such subsidiaries' assets.

As of March 31, 2026, none of the Company’s subsidiaries guaranteed the 2023 Term Loan Facility.

The 2023 Term Loan Facility contains covenants that restrict, among other things, the ability of Company and its restricted subsidiaries to incur additional debt, grant liens, sell assets, make investments, pay dividends and make certain other restricted payments.

The Company was in compliance with its financial covenants under the 2023 Term Loan Facility as of March 31, 2025.

The 2023 Term Loan Facility contains covenants that restrict, among other things, the ability of Company and its restricted subsidiaries to incur additional debt, grant liens, sell assets, make in vestments, pay dividends and make certain other restricted payments.

The Company was in compliance with its covenants under the 2023 Term Loan Facility as of March 31, 2026.

Borrowings under the 2023 Term Loan 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.

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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 .

(1) establish the $ 1.3 billion 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 Inmarsat Term Loan Facility, the Inmarsat Secured Credit Facilities).

In November 2025, th e Company repaid early all of the $ 300.0 million in principal amount of outstanding borrowings under the Original Inmarsat Term Loan Facility plus accrued and unpaid interest thereon.

As a result of the repayment of the Original Inmarsat Term Loan Facility, during fiscal year 2026, the Company recorded a loss of $ 11.6 million in loss ( gain) on extinguishment of debt, net in the consolidated statement of operations and comprehensive income (loss) related to an unamortized fair value adjustment made in purchase accounting.

Borrowings under the Original Inmarsat Term Loan Facility were recorded 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 as of March 31, 2025.

The maturity date for the Inmarsat Term Loan Facility is September 28, 2029 and for the Inmarsat Revolving Credit Facility is March 28, 2027 .

As of March 31, 2026, Inmarsat had $ 1.3 billion in principal amount of outstanding borrowings under the Inmarsat Term Loan Facility, 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 of $ 550.0 million.

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

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, at Inmarsat's option, at either (i) the highest of (x) 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 Inmarsat Term Loan Facility, a floor of 0.50% per annum and, in the case of the Inmarsat Revolving Credit Facility, a floor of 0.00% 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 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.

As of March 31, 2026, the effective interest rate on the Company's outstanding borrowings under the Inmarsat Term Loan Facility was 9.11 % .

The I nmarsat 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.

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

The borrowers under the Inmarsat Secured Credit Facilities were in compliance with the covenants under the Inmarsat Secured Credit Facilities as of March 31, 2026 .

Borrowings under the Inmarsat Term Loan Facility 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 Inmarsat Term Loan Facility was issued with an original issue discount of 2.00 %.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Former Ex-Im Credit Facility

The Former Ex-Im Credit Facility provided a $ 362.4 million senior secured direct loan facility, $ 321.2 million of which 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, with the remaining $ 41.2 million used to finance the total exposure fees incurred under the Former Ex-Im Credit Facility.

Borrowings under the Former Ex-Im Credit Facility bore interest at a fixed rate of 2.38 %, payable semi-annually in arrears.

The effective interest rate on the Company’s outstanding borrowings under the Former Ex-Im Credit Facility, which took into account timing and amount of borrowings and payments, exposure fees, debt issuance costs and other fees, was 4.54 %.

The Former Ex-Im Credit Facility was fully repaid and discharged at maturity on October 15, 2025 .

Borrowings under the Former Ex-Im Credit Facility were recorded as current portion of long-term debt, net of unamortized discount and debt issuance costs, in the Company’s consolidated financial statements as of March 31, 2025.

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 Former Ex-Im Credit Facility were amortized to interest expense on an effective interest rate basis over the weighted average term of the Former Ex-Im Credit Facility and in accordance with the related payment obligations.

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 exposure fees).

The Ex-Im Credit Facility provided a $ 188.7 million senior secured direct loan facility, which was fully drawn.

Of the $ 188.7 million in principal amount of borrowings made under the Ex-Im Credit Facility, $ 175.8 million was used to finance up to 85 % of the costs of launch and insurance of the ViaSat-3 F1 satellite and related goods and services, with the remainder used to finance the total exposure fees incurred under the Ex-Im Credit Facility of $ 12.9 million.

As of March 31, 2026, the Company had $ 188.7 million in principal amount of outstanding borrowings under the Ex-Im Credit Facility.

Borrowings under the Ex-Im Credit Facility bear interest at a fixed rate of 2.38 %, payable semi-annually in arrears.

The effective interest rate on the Company’s outstanding borrowings under the Ex-Im Credit Facility, which takes into account timing and amount of borrowings and payments, exposure fees, debt issuance costs and other fees, is 4.54 %.

Borrowings under the Ex-Im Credit Facility are required to be repaid in 16 semi-annual principal installments, which commenced on April 15, 2018 , with a maturity date of October 15, 2025 .

Borrowings under the Ex-Im Credit Facility bear interest at a fixed rate equal to 4.78 % per annum, payable semi-annually in arrears.

The effective interest rate on the Company’s outstanding borrowings under the Ex-Im Credit Facility, which takes into account exposure fees and debt issuance costs, is 7.52 %.

Borrowings under the Ex-Im Credit Facility are required to be repaid in 16 semi-annual principal installments, which commenced in May 2026 , with a maturity date of November 25, 2033 .

The Ex-Im Credit Facility is guaranteed by Viasat and is secured by first-priority liens on the ViaSat-2 satellite and related assets, as well as a pledge of the capital stock of the borrower under the facility.

The Ex-Im Credit Facility contains financial covenants regarding Viasat’s maximum total leverage ratio and minimum interest coverage ratio.

In addition, the Ex-Im Credit Facility contains covenants that restrict, among other things, the Company’s ability to sell assets, make investments and acquisitions, make capital expenditures, grant liens, pay dividends and make certain other restricted payments.

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, 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.

The Ex-Im Credit Facility contains covenants regarding Viasat’s maximum total leverage ratio and minimum interest coverage ratio.

The Company was in compliance with its covenants under the Ex-Im Credit Facility as of March 31, 2026.

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.

The discount of $ 12.9 million (comprised of the exposure fees) and deferred financing cost associated with the issuance of the borrowings under the Ex-Im Credit Facility are amortized to interest expense on a straight-line basis over the term of the Ex-Im Credit Facility, the results of which are not materially different from the effective interest rate basis.

Viasat Revolving Credit Facility

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.

As of March 31, 2026 , 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 fo r borrowed money of Viasat and its subsidiaries to the extent certain conditions have not been satisfied as of such date).

At March 31, 2026, the Viasat Revolving Credit Facility was undrawn and there was $ 49.3 million outstanding under standby letters of credit, leaving borrowing availability under the Viasat Revolving Credit Facility of $ 598.2 million.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Borrowings under the Viasat Revolving Credit Facility bear interest, at the Company’s option, at either (1) the highest of the federal funds rate plus 0.50%, forward-looking term SOFR (as defined in the definitive credit agreement governing the Viasat Revolving Credit Facility) for an interest period of one month plus 1.00%, or the administrative agent’s prime rate as announced from time to time, or (2) forward-looking term SOFR (not to be less than 0.00% per annum), plus, in the case of each of (1) and (2), an applicable margin that is based on the Company’s total leverage ratio.

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As of March 31, 2026, none of the Company’s subsidiaries guaranteed the Viasat Revolving Credit Facility.

The Viasat Revolving Credit Facility contains financial covenants regarding a maximum total leverage ratio and a minimum interest coverage ratio.

The Viasat Revolving Credit Facility contains covenants regarding a maximum total leverage ratio and a minimum interest coverage ratio.

In addition, the Viasat Revolving Credit Facility contains covenants that restrict, among other things, the Company’s ability to incur additional debt, grant liens, sell assets, make investments and acquisitions, make capital expenditures, pay dividends and make certain other restricted payments.

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The Company was in compliance with its covenants under the Viasat Revolving Credit Facility as of March 31, 2026 .

Senior Notes due 2025;

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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.

During fiscal year 2025, the Company repurchased $ 257.5 million in aggregate principal amount of 2025 Notes in open market transactions, and during fiscal year 2026, 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, the Company recorded an insignificant amount in loss (gain) on extinguishment of debt, net in the consolidated statement of operations and comprehensive income (loss) during fiscal years 2026 and 2025.

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, in the Company's consolidated financial statements as of March 31, 2025.

Inmarsat Senior Secured Notes due 2026;

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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.

During fiscal year 2025, Inmarsat repurchased $ 101.7 million in aggregate principal amount of Inmarsat 2026 Notes in open market transactions and subsequently, 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, the Company recorded a loss of $ 100.3 million in fiscal year 2025 in (loss) gain on extinguishment of debt, net in the consolidated statement of operations and comprehensive income (loss), 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.

Senior Secured Notes due 2027

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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.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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 senior to all of the Company’s existing and future unsecured debt (including 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 2029 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.

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.

The 2028 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 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).

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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.

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Senior Notes due 2031

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.

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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)

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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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.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The indenture governing the 2031 Notes limits, among other things, the Company’s and its restricted subsidiaries’ ability to:

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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 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.

Following the approval of the amended Equity Participation Plan at the 2025 Annual Meeting of Stockholders, the number of shares available for issuance under the amended Equity Participation Plan is (i) 6,410,000 shares, plus (ii) the number of shares, if any, subject to awards outstanding under the former Equity Participation Plan on July 1, 2025 or granted under the amended Equity Participation Plan after such date that again become available for issuance in accordance with the share counting provisions of the amended Equity Participation Plan, based on the deduction from the share reserve originally taken with respect to such awards.

The Company believes that such awards align the interests of its executive officers, employees, consultants and non-employee directors with those of its stockholders.

Shares of the Company’s common stock granted under the Equity Participation Plan in the form of stock options or stock appreciation right are counted against the Equity Participation Plan share reserve on a one for one basis and performance-based stock options are calculated assuming “maximum” performance.

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.

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.

Shares of the Company’s common stock granted under the Equity Participation Plan in the form of stock options or stock appreciation right 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 on a one-for-one basis, and PSOs and PSUs are calculated assuming “maximum” performance.

In Septe mber 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 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.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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

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The Employee Stock Purchase Plan is intended to qualify under Section 423 of the Internal Revenue Code.

From November 1996 to September 2023, through various amendments of the Employee Stock Purchase Plan, the Company increased the maximum number of shares reserved for issuance under the Employee Stock Purchase Plan to 11,950,000 shares.

To facilitate participation for employees located outside of the United States in light of non-U.S.

The number of shares reserved for issuance under the Employee Stock Purchase Plan is 16,950,000 shares.

To fa cilitate participation for employees located outside of the United States in light of non-U.S.

law and other considerations, the amended Employee Stock Purchase Plan also provides for the grant of purchase rights that are not intended to be tax-qualified.

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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.

The compensation cost that has been charged against income for the Equity Participation Plan and Inducement Plan under ASC 718 w as $ 73.5 million, $ 72.9 million and $ 75.6 million, and for the Employee Stock Purchase Plan was $ 7.5 million, $ 7.5 milli on and $ 8.0 million, for fiscal years 2026, 2025 and 2024, respectively.

The Company capitaliz ed $ 9.6 million, $ 8.1 million and $ 10.7 million of stock-based compensation expense as a part of property, equipment and satellites, net for fiscal years 2026, 2025 and 2024, respectively.

During fiscal years 2026 and 2025, the Company modified certain RSUs, PSUs and PSOs in connection with termination of executives, resulting in an insignificant amount of incremental compensation expense for each of the periods.

As of March 31, 2026, total unrecognized compensation cost related to unvested stock-based compensation arrangements granted under the Equity Participation Plan and Inducement Plan (including stock options, PSOs, RSUs and PSUs) and the Employee Stock Purchase Plan was $ 159.2 million and $ 2.5 million, respe ctively.

These costs are expected to be recognized over a weighted average period of 2.1 years, 0.5 years, 1.8 years and 1.5 years, for stock options, PSOs, 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)

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

The Company’s stock options typically have a simple four-year vesting schedule (except for one - and three-year vesting schedules for options granted to the members of the Company’s Board of Directors) and a six-year contractual term.

The Company’s stock options (primarily granted to the members of the Company's Board of Directors) typically have a simple one - or three-year vesting schedule and a six-year contractual term.

The Company grants total shareholder return (TSR) performance stock options to executive officers under the Equity Participation Plan.

The number of shares of TSR performance stock options that will become eligible to vest based on the time-based vesting schedule described below is based on a comparison over a four-year performance period of the Company’s TSR to the TSR of the companies included in the S&P Mid Cap 400 Index.

The number of options that may become vested and exercisable will range from 0% to 175% of the target number of options based on the Company’s relative TSR ranking for the performance period.

The Company’s TSR performance stock options have a four-year time-based vesting schedule and a six-year contractual term.

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.

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.

The number of options that may become vested and exercisable will range from 0% to 250% of the target number of options granted provided that depending on whether the forty-five calendar day trailing average market closing price of the Company's common stock ending on and including such date equals or exceeds certain levels.

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 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 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 number of shares of TSR PSOs that will become vested and exercisable will range from 0% to 175% of the target number of options based on the time-based vesting schedule described below and is based on a comparison over the performance period of the Company’s TSR to the TSR of the companies included in an index.

The Company’s TSR PSOs have a four-year time-based vesting schedule and a six-year contractual term.

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

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

The price hurdle PSOs must be vested under both a three-year time-based vesting schedule and a market-based vesting condition in order to become exercisable and have a six-year contractual term.

The number of options that may become vested and exercisable will range from 0% to 250% of the target number of options granted depending on whether the forty-five calendar day trailing average market closing price of the Company's common stock ending on and including such date equals or exceeds certain levels.

The Company estimates the fair value of the TSR PSOs and the price hurdle PSOs (collectively, the PSOs) at the grant date using a Monte Carlo simulation.

Expense for vested PSOs 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 PSOs granted during fiscal years 2026 and 2025.

The estimated weighted average fair value of PSOs granted during fiscal year 2024 was $ 16.01 using a Monte Carlo simulation.

The weighted average estimated fair value of stock options granted and shares issued under the Employee Stock Purchase Plan during fiscal year 2026 wa s $ 5.79 and $ 9.31 per share, respectively, during fiscal year 2025 was $ 9.87 and $ 5.22 per share, respectively, and during fiscal year 2024 was $ 15.73 and $ 8.79 per share, respectively, using a Black-Scholes model.

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

Stock Options

Market-based Performance Stock Options

Employee Stock Purchase Plan

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The Company’s expected volatility is a measure of the amount by which its stock price is expected to fluctuate over the expected term of the stock-based award.

The estimated volatilities for stock options and market-based performance options are based on the historical volatility calculated using the daily stock price of the Company’s stock over a recent historical period equal to the expected term.

The estimated volatilities for stock options and PSOs are based on the historical volatility calculated using the daily stock price of the Company’s stock over a recent historical period equal to the expected term.

The risk-free interest rate that the Company uses in determining the fair value of its stock-based awards is based on the implied yield on U.S.

Treasury zero-coupon issues with remaining terms equivalent to the expected term of its stock-based awards.

The expected terms or lives of stock options and market-based performance stock options represent the expected period of time from the date of grant to the estimated date that the stock options under the Company’s Equity Participation Plan would be fully exercised.

The expected terms or lives of stock options and PSOs represent the expected period of time from the date of grant to the estimated date that the options under the Company’s Equity Participation Plan would be fully exercised.

The expected term assumption is estimated based primarily on the options’ vesting terms and remaining contractual life and employees’ expected exercise and post-vesting employment termination behavior.

The total intrinsic value of stock options exercised during fiscal years 2026, 2025 and 2024 was an insignificant amount, zero and an insignificant amount, respectively.

The total intrinsic value of PSOs exercised during fiscal year 2026 was $ 3.7 million.

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 .

For all options exercised, the Company recorded no tax benefits during fiscal years 2026, 2025 and 2024.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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Outstanding at March 31, 2025

Options granted

Options expired

Options exercised

Outstanding at March 31, 2026

Vested and exercisable at March 31, 2026

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.

The Company recorded no excess tax benefits during fiscal years 2025, 2024 and 2023.

A summary of market-based performance stock option activity for fiscal year 2025 is presented below:

A summary of PSO activity for fiscal year 2026 is presented below:

Exercise Price

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Outstanding at March 31, 2025

Market-based performance options granted

Market-based performance options canceled

Market-based performance options exercised

Performance adjustment

Outstanding at March 31, 2026

Vested and exercisable at March 31, 2026

(1) Number of shares is based on the target number of options under each market-based performance stock option.

(1) Number of PSOs granted is presented based on the target number of PSOs granted.

Outstanding shares are adjusted when the final market condition has been achieved.

Restricted stock units.

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

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).

RSUs generally vest over three or four years (except for a one -year vesting schedule for 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.

For fiscal years 2026, 2025 and 2024, the Company recogniz ed $ 67.0 million, $ 56.6 million and $ 57.4 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 2026, 2025 and 2024 was $ 27.49 , $ 15.77 and $ 29.21 , respectively.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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.

The total fair value of shares vested related to RSUs during the fiscal years 2026, 2025 and 2024 wa s $ 47.3 million, $ 15.3 million and $ 34.1 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.

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

The Company’s PSUs have a one - or three-year performance-based vesting period and generally time-vest over approximately three years .

The number of shares of PSUs that will become eligible to vest is somewhere in the range of 0 % to 200 % of the target number of PSUs based on either the comparison over the performan ce period of the Company’s TSR to the TSR of the companies included in an index and/or 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.

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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 .

During fiscal years 2026 and 2025, the Company recogniz ed $ 3.9 million and $ 5.1 million, respectively, in stock-based compensation expense related to PSUs .

The per unit weighted average grant date fair value of PSUs granted during fiscal years 2026 and 2025 was $ 33.04 and $ 18.13 , respectively.

A summary of PSU activity for fiscal year 2026 is presented below:

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Outstanding at March 31, 2025

Performance adjustment

Outstanding at March 31, 2026

(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.

(1) Number of shares awarded is presented based on the target number of PSUs granted .

Outstanding shares are adjusted when the final performance and/or market condition has been achieved.

The total fair value of shares vested related to PSUs during the fiscal year 2026 was an insignificant amount.

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

Market Condition PSUs

Fiscal Year 2026

Fiscal Year 2025

Risk-free interest rate

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common stockholders was the same for fiscal years 2026, 2025 and 2024, 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.

Potentially dilutive weighted average shares excluded from the calculation for fiscal years 2026, 2025 and 2024 consisted o f 111,663 shares, 220,095 shares and 242,973 shares, respectively, related to stock options, 1,930,376 shares, zero shares, and zero shares, respectively, related to PSOs and mark et condition PSUs, 2,699,376 shares, 5,539,871 shares and 2,066,973 shares, respectively, related to RSU s, 175,721 shares, 165,498 shares, and zero shares, respectively, related to performance condition PSUs, and 1,226,647 shares, 1,950,692 shares and 1,127,606 shares related to certain terms of the Viasat 401(k) Profit Sharing Plan and Employee Stock Purchase Plan.

Note 10 — Income Taxes

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Net deferred tax assets (liabilities)

A reconciliation of the benefit from (provision for) income taxes to the amount computed by applying the statutory federal income tax rate to income (loss) before income taxes is as follows:

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

A reconciliation of the benefit from (provision for) income taxes to the amount computed by applying the statutory federal income tax rate to income (loss) before income taxes for the fiscal year ended March 31, 2026 is as follows:

Fiscal Year Ended

March 31, 2026

(In thousands)

federal statutory tax rate

State and local income taxes, net of federal income tax effect (1)

Foreign tax effects

United Kingdom

Statutory tax rate difference between United Kingdom and United States

Interest on overpaid taxes, net of income tax effect

Statutory tax rate difference between Canada and United States

Local provincial income taxes

Capital gain partial exemption on sale of Navarino UK

Tax audit adjustments

Withholding taxes

Other foreign jurisdictions

Effect of changes in tax laws or rates enacted in the current period

Effect of cross-border tax laws

Global intangible low-taxed income (GILTI)

Subpart F income

Inclusion of foreign disregarded entities

Research and development tax credits

Changes in valuation allowances

Nontaxable or nondeductible Items

Non-deductible compensation

Changes in prior period worldwide unrecognized tax benefits

Other adjustments

Unremitted subsidiary gains

(1) State taxes in Virginia and Maryland made up the majority (greater than 50 percent) of the tax effect in this category.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Fiscal Years Ended

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As of March 31, 2026 , the Company had federal and state net operating loss carryforwards of $ 1,296.2 million and $ 673.0 million, respectively, which begin to expire in fiscal year 2029 and fiscal year 2027 , respectively.

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)

However, the majority of the federal net operating loss carryforwards do not expire.

As of March 31, 2026 , the Company's deferred tax assets for net operating loss carryforwards included $ 64.2 million of UK capital loss carryforwards, which can only be offset against future UK capital gains.

A full valuation allowance has been established against the capital loss carryforwards, as no capital gains are expected.

With limited exceptions, the Company's foreign net operating loss and interest carryforwards do not expire.

However, certain transactions or material changes to the Company's global financing arrangements could limit the Company's right to use its foreign deferred tax assets and make netting against deferred tax liabilities inappropriate, resulting in an increase to the valuation allowance and income tax expense.

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.

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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 $ 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.

A valuation allowance of $ 435.0 million at March 31, 2026 and $ 430.5 million at March 31, 2025 has been established relating to carryforwards of federal, state and foreign net operating losses, federal and state R&D tax credits, and foreign tax credits, and to 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.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

In July 2025, the One Big Beautiful Bill Act (OBBBA) was enacted in the U.S.

The OBBBA includes a broad range of material business tax reforms, such as 100% bonus depreciation, expensing of U.S.-based research and development, modification of the interest expense limitation, and modification of various U.S.

international tax provisions.

For fiscal year 2026, the tax law changes resulted in approximately $ 10.7 million of incremental non-cash tax expense to increase the Company’s U.S.

valuation allowance due to material changes in the Company’s mix of gross deferred tax assets and liabilities.

Additionally, the tax law changes decreased cash paid for income taxes in fiscal year 2026 associated with the Company's majority-owned subsidiary primarily due to the accelerated amortization of research and development expenses that were previously capitalized for tax purposes.

During the fourth quarter of fiscal year 2025, the Company released $ 10.3 million of valuation allowance previously recorded against U.S.

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deferred tax assets.

In evaluating the Company's ability to realize the deferred tax asset for California R&D tax credits, the Company considered all available positive and negative evidence, including operating results and forecasted ranges of future taxable income, and determined it is more likely than not that a majority of its California R&D tax credits will not be realized due to reduced taxable income apportioned to California in connection with the Link-16 TDL Sale.

During the second quarter of fiscal year 2023, the Company determined it is more likely than not that a majority of its California R&D tax credits will not be realized due to reduced taxable income apportioned to California in connection with the Link-16 TDL Sale.

As a result, during the second quarter of fiscal year 2023, the Company recorded a valuation allowance of $ 69.0 million.

The Company will continue to monitor its business strategies, weighing positive and negative evidence in assessing its realization of this asset in the future.

In the event there is a need to release the valuation allowance, a tax benefit will be recorded.

The following table summarizes the activity related to the Company’s unrecognized tax benefits:

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Of the total unrecognized tax benefits at March 31, 2026 , $ 13.6 million would reduce the Company’s annual effective tax rate if recognized, based on the Company's valuation allowance position at March 31, 2026.

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 and penalties related to income tax matters as a component of income tax expense.

As of March 31, 2026 and 2025 , the Company had accrued interest expense and penalties of approximately $ 9.0 million and $ 14.4 million, respectively.

The Company recognized a tax benefit of $ 5.5 million for fiscal year 2026 and an insignificant amount for each of fiscal years 2025 and 2024 for reductions of interest expense and penalties in income tax expense.

In addition, as of March 31, 2026 and 2025 , the Company had accrued interest income of approximately $ 7.1 million and an insignificant amount, respectively.

The Company recognized a tax benefit of $ 4.6 million for fiscal year 2026 and an insignificant amount for each of fiscal years 2025 and 2024 for interest income in income tax expense.

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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Additionally, net operating loss and R&D tax credit carryovers that were generated in prior years may also be subject to examination.

With few exceptions, fiscal years 2021 and thereafter remain open to examination by foreign tax authorities.

Calendar years 2007, 2018 and thereafter remain open in the U.K.

for certain entities currently under enquiry.

Calendar years 2014 and thereafter remain open in Norway for certain entities currently under enquiry.

The Company believes that it has appropriate support for the income tax positions taken on its tax returns and its accruals for tax liabilities are adequate for all open years based on an assessment of many factors, including past experience and interpretations.

The Company’s U.S.

federal income tax return for fiscal year 2024 is currently under examination by the Internal Revenue Service.

Calendar years 2014 and thereafter remain open in Norway for certain entities currently under examination.

Calendar years 2018 and thereafter remain open in Canada for certain entities currently under examination.

With few exceptions, fiscal years 2022 and thereafter remain open by statute to examination by other foreign tax authorities.

The Company believes that it has appropriate support for the income tax positions taken on its tax returns and its accruals for tax liabilities are adequate based on an assessment of many factors, including experience and interpretations.

The income taxes paid, net of refunds received, for the fiscal year ended March 31, 2026 was as follows:

Fiscal Year Ended

March 31, 2026

(In thousands)

United Kingdom

Other foreign jurisdictions

Total cash paid for income taxes, net

Note 11 — Employee Benefits

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Based on the closing price of the Company’s common stock on March 31, 2026 , the Company would issue approximately 622,271 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.

Discretionary contributions accrued by the Company as of March 31, 2026 and 2025 amounted to $ 28.5 million an d $ 27.5 million, respectively.

Note 12 — Related-Party Transactions

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 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.

In March 2026, the Company sold all of its interests in Navarino UK (see Note 1 — The Company and a Summary of Its Significant Accounting Policies — Principles of consolidation for more information).

The Company recognized revenue from Navarino UK and JSAT Mobile in the amounts of $ 63.6 million, $ 65.7 million and $ 64.4 million during fiscal years 2026, 2025 and 2024 , respectively.

The Company received cash of $ 63.6 million, $ 68.8 million and $ 61.1 million from Navarino UK and JSAT Mobile during fiscal years 2026, 2025 and 2024, respectively.

As of March 31, 2026, accounts recei vable from JSAT Mobile was $ 2.5 million.

As of March 31, 2025 , accounts receivable from Navarino UK and JSAT Mobile was $ 8.5 million.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

Note 13 — Commitments

From time to time, the Company enters into satellite construction agreements as well as various other satellite-related purchase commitments, including with respect to the provision of launch services, operation of its satellites and satellite insurance.

From time to time, the Company enters into satellite constructi on agreements as well as various other satellite-related purchase commitments, including with respect to the provision of launch services, operation of its satellites and satellite insurance.

As of March 31, 2026, future minimum payments under the Company’s satellite construction contracts and other satellite-related purchase commitments for the next five fiscal years and thereafter were as follows:

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(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.

The Company records the net present value of these expected future payments as a liability and as a component of the cost of the satellites.

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 $ 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.

As of March 31, 2026, the Company’s estimated satellite performance incentive obligations and accrued interest for the applicable satellites were approximately $ 6.1 million, of which $ 5.2 million and an insignificant amount 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 $ 6.1 million in total costs for satellite performance incentive obligations and related interest earned with potential future minimum payme nts of $ 4.7 million and an insignificant amount in fiscal years 2027 and 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, 2026 were approximately $ 103.1 million, $ 73.5 million, $ 182.1 million, $ 147.1 million and $ 4.0 million in fiscal years 2027, 2028, 2029, 2030 and 2031 , respectively, and an insignificant amount of further minimum payments thereafter.

Note 14 — Contingencies

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Although claims, suits, investigations and proceedings are inherently uncertain and their results cannot be predicted with certainty, the Company believes that the resolution of its current pending matters will not have a material adverse effect on its business, financial condition, results of operations or liquidity.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

The Company has contracts with various U.S.

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As of March 31, 2026, 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 DCAA is currently auditing the Company's fiscal year 2025 recurring incurred cost submission.

The Company's cost accounting practices are examined for compliance with the applicable CAS.

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Certain matters resolved during fiscal years 2026 and 2024

In June 2025, Inmarsat agreed to a binding term sheet with Liga do Networks (Ligado) and AST & Science, LLC to settle Inmarsat's opposition to Ligado’s planned restructuring.

Under the conditions set forth in the term sheet, the Company expected to receive an aggregate of $ 568 million from Ligado in fiscal year 2026, consisting of (i) a $ 420 million lump sum payment which was received in October 2025, (ii) a $ 100 million lump sum payment that was due in March 2026 that remains outstanding pending resolution of certain matters, and (iii) a resumption of quarterly payments of approximately $ 16 million, which started on September 30, 2025, with an annual escalator of 3 % for the life of the contract (through 2107).

Upon resolution of certain conditions, in the first nine months of fiscal year 2026, related to the $ 420.0 million lump sum payment, the Company allocated and recognized $ 267.5 million as deferred revenue and allocated and recognized $ 152.5 million as interest income on the deferral of Ligado's previous quarterly fees, which were received as part of the lump sum payment.

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.

The Company received payments and recognized $ 30.8 million, $ 41.7 million and $ 99.9 million as product revenues within the Company's defense and advanced technologies segment during fiscal years 2026, 2025 and 2024, respectively, and recognized $ 7.2 million as interest income during fiscal year 2024.

Note 15 — Discontinued Operations

In October 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 January 2023, the Company completed the Link-16 TDL Sale, and accordingly the Company classified the results of the Link-16 TDL Business as discontinued operations in its consolidated statements of operations for periods prior to the closing of the Link-16 TDL Sale in fiscal year 2023.

For the fiscal year ended March 31, 2024, net income (loss) from discontinued operations, net of tax, was a loss of $ 10.4 million, which resulted from an adjustment.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

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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.

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.

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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.

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 defense and advanced technologies segment revenues are primarily derived from products and services in the Company’s information security and cyber defense, space and mission systems, tactical networking, and advanced technologies and other business lines, 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 .

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(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.

(1) Including amortization of capitalized cloud computing implementation costs.

(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.

(3) For fiscal years 2026, 2025, and 2024, IR&D expense and related activities, including allocable depreciation, stock-based compensation and other expense s were $ 93.1 million, $ 83.4 million and $ 105.0 million, respectively, for the communication services segment, and $ 71.8 million, $ 59.0 million and $ 45.7 million, respectively, for the defense and advanced technologies segment.

The CODM is not regularly provided assets on a segment basis, therefore, such information is not presented.

The Company distinguishes revenues from external customers by geographic area based on customer location.

Revenues by geographic area for the fiscal years ended March 31, 2026, 2025 and 2024 were as follows:

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Total revenues

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 $ 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

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.

As of both March 31, 2026 and March 31, 2025, the net book value of long-lived assets located outside the United States was approxim ately $ 1.7 billion , including a net book value of long-lived assets located in the United Kingdom of $ 1.2 billion .

VALUATION AND QUALIFYING ACCOUNTS

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Charged to costs and expenses

Charged to goodwill*

Balance, March 31, 2024

Charged to costs and expenses

Charged to goodwill*

Balance, March 31, 2025

3 unchanged sentences

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