Quarterly report pursuant to Section 13 or 15(d)

Revenue (Tables)

v3.8.0.1
Revenue (Tables)
 3 Months Ended
Mar. 31, 2018
Revenue from Contract with Customer [Abstract]  
Schedule of Impact of New Accounting Pronouncements
The following table presents the effect of the adoption of ASU 2014-09 on our consolidated balance sheet as of March 31, 2018 (in thousands):

 
March 31, 2018
 
Without ASC 606 Adoption
 
Effect of change Increase/ (Decrease)
 
As Reported
 
 
 
 
 
 
 Cash and cash equivalents
168,931

 
 
 
168,931

 Restricted cash
3,388

 
 
 
3,388

 Accounts receivable, net
104,440

 
(2,176
)
 
102,264

 Inventories
32,593

 
 
 
32,593

 Prepaid expenses
13,888

 
 
 
13,888

 Other current assets
14,431

 
 
 
14,431

 TOTAL CURRENT ASSETS
337,671

 
(2,176
)
 
335,495

 Content library
9,523

 


 
9,523

 Property, plant and equipment
189,970

 
 
 
189,970

 Goodwill
159,654

 
 
 
159,654

 Intangible assets, net
112,019

 
 
 
112,019

 Equity method investments
138,495

 
 
 
138,495

 Other non-current assets
8,712

 
1,103

 
9,815

 TOTAL ASSETS
956,044

 
(1,073
)
 
954,971

 
 
 
 
 
 
 Accounts payable and accrued liabilities
198,798

 
(1,831
)
 
196,967

 Deferred revenue
8,736

 
(134
)
 
8,602

 Current portion of long-term debt
16,656

 
 
 
16,656

 Other current liabilities
7,996

 
 
 
7,996

 TOTAL CURRENT LIABILITIES
232,186

 
(1,965
)
 
230,221

 Deferred revenue, non-current
1,081

 
 
 
1,081

 Long-term debt
719,427

 
 
 
719,427

 Deferred tax liabilities
9,028

 
 
 
9,028

 Other non-current liabilities
30,256

 
 
 
30,256

 TOTAL LIABILITIES
991,978

 
(1,965
)
 
990,013

 
 
 
 
 
 
 Preferred stock
—

 
 
 
—

 Common stock
10

 
 
 
10

 Treasury stock
(30,659
)
 
 
 
(30,659
)
 Additional paid-in capital
807,355

 
 
 
807,355

 Subscriptions receivable
(584
)
 
 
 
(584
)
Prior year accumulated deficit
(773,791
)
 
933

 
(772,858
)
Current year retained deficit
(38,243
)
 
(41
)
 
(38,284
)
 Accumulated other comprehensive loss
(22
)
 
 
 
(22
)
 TOTAL STOCKHOLDERS' DEFICIT
(35,934
)
 
892

 
(35,042
)
 TOTAL LIABILTIES & STOCKHOLDERS' DEFICIT
956,044

 
(1,073
)
 
954,971



The following table presents the effect of the adoption of ASU 2014-09 on our condensed consolidated statements of operations for the three months ended March 31, 2018 (in thousands, except per share amounts):

 
March 31, 2018
 
Without ASC 606 Adoption
 
Effect of change Increase/ (Decrease)
 
As Reported
Revenue:
 
 
 
 
 
Licensing and services
147,182

 
(656
)
 
146,526

Equipment
9,971

 
—

 
9,971

Total revenue
157,153

 
(656
)
 
156,497

Cost of Sales
 
 
 
 
 
Cost of sales:
 
 
 
 
 
Licensing and services
112,856

 
(442
)
 
112,414

Equipment
6,060

 
22

 
6,082

Total cost of sales
118,916

 
(420
)
 
118,496

Gross Margin
38,237

 
(236
)
 
38,001

Operating expenses:
 
 
 
 
 
Sales and marketing
9,676

 
(22
)
 
9,654

Product development
8,531

 
(173
)
 
8,358

General and administrative
38,285

 
—

 
38,285

Provision for legal settlements
516

 
—

 
516

Amortization of intangible assets
10,747

 
—

 
10,747

Total operating expenses
67,755

 
(195
)
 
67,560

Loss from operations
(29,518
)
 
(41
)
 
(29,559
)
Other income (expense):
 
 
—

 
 
Interest expense, net
(15,597
)
 
—

 
(15,597
)
Income from equity method investments
1,161

 
—

 
1,161

Change in fair value of derivatives
564

 
—

 
564

Other expense, net
438

 
—

 
438

Loss before income taxes
(42,952
)
 
(41
)
 
(42,993
)
Income tax benefit
(4,709
)
 
—

 
(4,709
)
Net loss
(38,243
)
 
(41
)
 
(38,284
)
 
 
 
 
 
 
Net loss per share – basic and diluted
(0.42
)
 
 
 
(0.42
)
Weighted average shares outstanding – basic and diluted
90,792

 
 
 
90,792

Schedule of Disaggregation of Revenue
The following table represents a disaggregation of our revenue from contracts with customers for the three months ended March 31, 2018 and 2017 (in thousands):

 
Three Months Ended March 31,
 
2018
 
2017
Revenue:
 
 
 
Media & Content
 
 
 
Licensing & Services
$
74,915

 
$
76,380

Total Media & Content
74,915

 
76,380

 
 
 
 
Connectivity
 
 
 
Aviation Services
29,325

 
28,195

Aviation Equipment
7,598

 
6,563

Maritime & Land Services
$
42,286

 
39,068

Maritime & Land Equipment
2,373

 
2,386

Total Connectivity
81,582

 
76,212

 
 
 
 
Total revenue
$
156,497

 
$
152,592

Schedule of Contract Liabilities
The following table summarizes the significant changes in the contract liabilities balances during the period to March 31, 2018 (in thousands);

 
 
 
 
Contract Liabilities
Balance as of December 31, 2017
 
7,587

Adjustments as a result of cumulative catch-up adjustment
 
(190
)
Revenue recognized that was included in the contract liability balance at the beginning of the period
 
(2,544
)
Increase due to cash received, excluding amounts recognized as revenue during the period
 
4,830

Balance as of March 31, 2018
 
9,683

 
 
 
Deferred revenue, current
 
8,602

Deferred revenue, non-current
 
1,081

 
 
$
9,683

Schedule of Accounts Receivable and Bad Debts
Accounts receivable consist of the following (in thousands):

 
March 31,
 
December 31,
 
2018
 
2017
Accounts receivable, gross
$
108,188

 
$
122,225

Less: Allowance for doubtful accounts
(5,924
)
 
(8,680
)
Accounts receivable, net
$
102,264

 
$
113,545


Movements in the balance for bad debt reserve and sales allowance for the three months ended March 31, 2018 and 2017 are as follows (in thousands):
 
March 31,
 
2018
 
2017
Beginning balance
$
8,680

 
10,091

(Recovery) additions charged to statements of operations
(326
)
 
595

Less: Bad debt write offs
(2,430
)
 
(426
)
Ending balance
$
5,924

 
$
10,260

Schedule of Capitalized Contract Cost Activity
The following table summarizes the significant changes in the contract assets balances during the period to March 31, 2018 (in thousands);

 
Contract Assets
 
Costs to Obtain
 
Costs to Fulfill
 
Total
Balance as of December 31, 2017
—

 
—

 
—

Increases as a result of cumulative catch-up adjustment
120

 
810

 
930

Capitalization during period
30

 
173

 
203

Amortization
(7
)
 
(22
)
 
(29
)
Balance as of March 31, 2018
142

 
961

 
1,103