<SEC-DOCUMENT>0001193125-25-024360.txt : 20250324
<SEC-HEADER>0001193125-25-024360.hdr.sgml : 20250324
<ACCEPTANCE-DATETIME>20250211164849
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-25-024360
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20250211

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			VIASAT INC
		CENTRAL INDEX KEY:			0000797721
		STANDARD INDUSTRIAL CLASSIFICATION:	RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663]
		ORGANIZATION NAME:           	04 Manufacturing
		EIN:				330174996
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		6155 EL CAMINO REAL
		CITY:			CARLSBAD
		STATE:			CA
		ZIP:			92009
		BUSINESS PHONE:		760-476-2200

	MAIL ADDRESS:	
		STREET 1:		6155 EL CAMINO REAL
		CITY:			CARLSBAD
		STATE:			CA
		ZIP:			92009
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<TITLE>CORRESP</TITLE>
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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">February&nbsp;11, 2025 </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">U.S. Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation
Finance </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Office of Manufacturing </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100 F Street, NE </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, D.C. 20549 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Attention: Mr.&nbsp;Andrew Blume </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:7%; font-size:10pt; font-family:Times New Roman">Mr.&nbsp;Kevin Woody </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">Re:</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Viasat, Inc. </P></TD></TR></TABLE>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Form <FONT STYLE="white-space:nowrap">10-K</FONT> for the period ended March&nbsp;31, 2024 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Form <FONT STYLE="white-space:nowrap">8-K</FONT> furnished November&nbsp;6, 2024 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">File <FONT STYLE="white-space:nowrap">No.&nbsp;000-21767</FONT> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ladies and Gentlemen: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">This letter is in response to the
comments of the Staff of the Division of Corporation Finance (the &#147;Staff&#148;) of the U.S. Securities and Exchange Commission with respect to the above-referenced filings of Viasat, Inc. (&#147;Viasat&#148;) set forth in your letter dated
January&nbsp;28, 2025. In order to facilitate your review of our response, we have restated the Staff&#146;s comments in this letter. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Form <FONT
STYLE="white-space:nowrap">10-K</FONT> for the period ended March&nbsp;31, 2024 </U></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Notes to the Consolidated Financial Statements </U></B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Note 8 &#150; Senior Notes and Other Long-Term Debt, page <FONT STYLE="white-space:nowrap">F-36</FONT> </U></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">1. <B><I>Staff&#146;s comment</I></B>: <I>We note your disclosures within this footnote and on page 38 regarding the covenants in your various debt agreements
that restrict the ability of you and your subsidiaries to, among other items, pay dividends and make certain other restricted payments. Please address the following related comments to the extent applicable:</I> </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>Provide all disclosures required by Rule <FONT STYLE="white-space:nowrap">4-08(e)(1)</FONT> and
(3)</I><I></I><I>&nbsp;of Regulation <FONT STYLE="white-space:nowrap">S-X.</FONT></I> </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>Quantify for us the amount of restricted net assets of consolidated subsidiaries as of the end of fiscal 2024.
If the restricted net assets, as calculated under Rule <FONT STYLE="white-space:nowrap">1-</FONT> 02(dd) of Regulation <FONT STYLE="white-space:nowrap">S-X,</FONT> exceed 25</I><I></I><I>&nbsp;percent of your consolidated net assets, provide
Schedule I parent company financial statements prescribed by Rules <FONT STYLE="white-space:nowrap">5-04</FONT> and <FONT STYLE="white-space:nowrap">12-04</FONT> of Regulation <FONT STYLE="white-space:nowrap">S-X.</FONT></I> </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I>Response</I></B>: We respectfully acknowledge the Staff&#146;s comment and advise the Staff that we considered the applicability of Rule <FONT
STYLE="white-space:nowrap">4-08(e)(1)</FONT> and (3)&nbsp;of Regulation <FONT STYLE="white-space:nowrap">S-X</FONT> as well as the restricted net assets of our consolidated subsidiaries as of fiscal 2024 year end as follows: </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Rule <FONT STYLE="white-space:nowrap">4-08(e)(1)</FONT> of Regulation <FONT STYLE="white-space:nowrap">S-X</FONT> </I></P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We confirm that Viasat&#146;s term loan and revolving credit facilities and the indentures governing
Viasat&#146;s senior notes and senior secured notes (collectively, the &#147;Viasat Debt Agreements&#148;) contain covenants that limit the ability of Viasat to pay dividends to its stockholders. The secured credit facilities and the indenture
governing the senior secured notes (collectively, the &#147;Inmarsat Debt Agreements&#148;) of Connect Finco SARL and Connect U.S. Finco LLC, which are indirect wholly-owned subsidiaries of Viasat (collectively, with Connect Bidco Ltd. and its
subsidiaries, &#147;Inmarsat&#148;), do not limit the ability of Viasat to pay dividends to its stockholders. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Under Viasat&#146;s term loan and revolving
credit facilities, Viasat is permitted to pay dividends to its stockholders in an unlimited amount so long as specified senior secured net leverage ratios, total net leverage ratios and liquidity requirements are met and no event of default has
occurred and is continuing, in addition to making dividends pursuant to other restricted payment baskets based on cumulative consolidated net income and LTM adjusted EBITDA. Under the indentures governing Viasat&#146;s senior notes and senior
secured notes, so long as no default or event of default is continuing (as applicable), Viasat is similarly permitted to pay dividends to its stockholders pursuant to various restricted payment baskets calculated based on cumulative consolidated net
income and total assets or LTM adjusted EBITDA. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">These baskets collectively permitted Viasat to pay dividends to stockholders in excess of its total
retained earnings as of March&nbsp;31, 2024. Accordingly, we determined that the restrictions in the Viasat Debt Agreements on the ability of Viasat to pay dividends to its stockholders were not significant, and that the notes to the financial
statements required by Rule <FONT STYLE="white-space:nowrap">4-08(e)(1)</FONT> were therefore not applicable. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Rule
<FONT STYLE="white-space:nowrap">4-08(e)(3)</FONT> of Regulation <FONT STYLE="white-space:nowrap">S-X</FONT> </I></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We have also reviewed the applicability
and requirements of Rule <FONT STYLE="white-space:nowrap">4-08</FONT> (e)(3) with respect to restrictions on the ability of our subsidiaries to transfer funds to Viasat in the form of cash dividends, loans or advances. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Viasat Debt Agreements do not limit the ability of our subsidiaries to transfer funds to Viasat in the form of loans, advances or cash dividends, as each
contains covenants that permit unlimited payments and distributions to be made from subsidiaries to Viasat. Moreover, certain of the Viasat Debt Agreements prohibit Viasat from entering into arrangements that would prohibit Viasat&#146;s
subsidiaries from paying dividends or making loans to Viasat (subject to exceptions). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Conversely, the Inmarsat Debt Agreements do contain covenants that
limit the ability of Inmarsat to transfer funds or other assets to Viasat in the form of loans, advances or cash dividends. Under the Inmarsat Debt Agreements, as of March&nbsp;31, 2024, Inmarsat was permitted to pay cash dividends and to make loans
and advances to Viasat pursuant to the following baskets so long as (in most instances) no payment or bankruptcy event of default is continuing: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Loans, advances and dividends in an unlimited amount so long as Inmarsat&#146;s senior secured first lien net
leverage ratio is below specified levels. </P></TD></TR></TABLE>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Loans, advances and dividends up to the greater of $100&nbsp;million and a specified percentage of Inmarsat LTM
adjusted EBITDA. </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Loans, advances and dividends up to the sum of (i)&nbsp;the greater of $300&nbsp;million and a specified
percentage of Inmarsat&#146;s LTM adjusted EBITDA, plus (ii)&nbsp;a specified percentage of Inmarsat&#146;s consolidated net income for a specified period through the end of the most recently ended fiscal quarter for which financial statements have
been delivered (but not less than $0), plus (iii)&nbsp;certain other builder amounts. </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Loans or advances in an amount equal to the greater of $300&nbsp;million and a specified percentage of
Inmarsat&#146;s LTM adjusted EBITDA. </P></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Based on the aggregate amount that Inmarsat was permitted to transfer to Viasat in the form of
loans, advances or cash dividends under the Inmarsat Debt Agreements as of March&nbsp;31, 2024, we determined that the restrictions on the transfer of funds to Viasat under the Inmarsat Debt Agreements were not material, and that therefore the notes
to the financial statements required by Rule <FONT STYLE="white-space:nowrap">4-08(e)(3)</FONT> were not applicable. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We also considered the existence of
other restrictions on the ability of our subsidiaries to transfer funds to Viasat in the form of cash dividends, loans or advances as of March&nbsp;31, 2024, and determined that none were material. With respect to unconsolidated subsidiaries, we
have less than 1%, or an immaterial amount of consolidated net assets in investments in unconsolidated subsidiaries. Accordingly, we determined that the notes to the financial statements required by Rule
<FONT STYLE="white-space:nowrap">4-08(e)(3)</FONT> were not applicable. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Restricted Net Assets </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">&#147;Restricted net assets&#148; is defined under Rule <FONT STYLE="white-space:nowrap">1-02(dd)</FONT> of&nbsp;Regulation
<FONT STYLE="white-space:nowrap">S-X</FONT> by reference to the amount of the registrant&#146;s proportionate share of net assets of consolidated subsidiaries as of fiscal year end which &#147;may not be transferred to the parent company by
subsidiaries in the form of loans, advances, or cash dividends without the consent of a third party (i.e. lender, regulatory agency, foreign government, etc.).&#148; As of March&nbsp;31, 2024, taking into account the restrictions on the transfer of
funds to Viasat in the form of loans, advances or cash dividends under the Inmarsat Debt Agreements described above, restricted net assets were less than 5% of Viasat&#146;s consolidated net assets, and accordingly, we determined that no additional
disclosure prescribed by Rules <FONT STYLE="white-space:nowrap">5-04</FONT> and <FONT STYLE="white-space:nowrap">12-04</FONT> of Regulation <FONT STYLE="white-space:nowrap">S-X</FONT> was necessary. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We will continue to review the disclosure requirements as part of our future filings and include disclosures as required. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Note 15 &#150; Contingencies, page <FONT STYLE="white-space:nowrap">F-50</FONT> </U></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">2. <B><I>Staff&#146;s comment</I></B>: <I>We note that you recognized payments within product revenues of $55.8</I><I></I><I>&nbsp;million and
$99.9</I><I></I><I>&nbsp;million during fiscal years 2023 and 2024, respectively, related to the resolution of certain legal matters with Cisco Systems, Inc. Please tell us the nature and specific facts and circumstances of these payments and, if
applicable, the specific authoritative GAAP guidance that </I><I>supports revenue classification. In doing so, clarify how you assessed the payments for revenue and nonrevenue elements</I>. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I>Response</I></B>: We respectfully acknowledge the Staff&#146;s comment and provide the additional
information regarding our evaluation of revenue classification of the aforementioned payments from Cisco in relation to resolution of certain legal matters with Cisco in fiscal years 2023 and 2024. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>General Background </I></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Acacia Communications, Inc.
(&#147;Acacia&#148;) was an entity that designed, manufactured, and sold a complete portfolio of high-speed optical interconnect technologies addressing a range of applications across datacenter, metro, regional, long-haul, and undersea networks.
Acacia was acquired by Cisco Systems, Inc. (&#147;Cisco&#148;) on March&nbsp;1, 2021. Viasat licensed certain technologies of its soft decision forward error correction (SDFEC) technology to Acacia in a prior contractual agreement that required
Acacia to pay royalties for its use of any of Viasat&#146;s encoding and decoding methods (the &#147;Acacia Contract&#148;). During the term of the Acacia Contract, Acacia ceased paying royalties required related to the licensed technology for
certain of its product generations. Viasat became aware that certain of Acacia&#146;s products continued to use Viasat&#146;s technology, but Acacia had stopped reporting use of the technology and paying the related royalties required under the
terms of the Acacia Contract. In January 2016, Viasat commenced legal proceedings seeking recovery of such amounts, and in fiscal year 2023 was awarded $62.2&nbsp;million in payments from Cisco (the &#147;Fiscal 2023 Payment&#148;) with respect to
royalties previously earned and not paid. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In November 2019, Viasat filed a second lawsuit against Acacia in the California Superior Court for San Diego
County (&#147;SDSC&#148;), claiming that Acacia had continued to breach the Acacia Contract. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On April&nbsp;25, 2023, the SDSC issued its ruling in favor
of Viasat and awarded Viasat $97.5&nbsp;million in contractual remedies based on Acacia&#146;s continued sales of products using Viasat&#146;s technology. On May&nbsp;31, 2023, Cisco filed an appeal, but continued to pay Viasat related royalties
earned after the April&nbsp;25, 2023 ruling. On September&nbsp;29, 2023, Cisco agreed to stop its appeal and that the preceding payments were due and payable to Viasat, bringing the total amount paid by Cisco in fiscal year 2024 relating to the
contractual royalties to $107.1&nbsp;million (collectively, the &#147;Fiscal 2024 Payment&#148; and, together with the Fiscal 2023 Payment, the &#148;Acacia Payments&#148;). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Given the Acacia Payments were in settlement of breach of contract claims relating to the Acacia Contract, we assessed the payments under ASC Topic 606,
Revenue from Contracts with Customers (&#147;ASC 606&#148;) in addition to consideration of other potential <FONT STYLE="white-space:nowrap">non-revenue</FONT> elements as discussed in the December 2007, Speech by the SEC regarding Accounting for
Litigation settlements <I>(Speech by SEC Staff: Remarks before the 2007 AICPA National Conference on Current SEC and PCAOB Developments)</I> and the following with respect to considerations related to litigation settlements as set forth within PwC
Revenue Recognition Guide Section&nbsp;9.7.4, which states: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:9%; font-size:10pt; font-family:Times New Roman"><I>To determine the accounting for settlement proceeds, management will need
to identify all of the components of the litigation settlement. In addition to a prospective license to IP, the settlement may include other components, such as royalties related to past sales, recovery of legal fees, or damages (punitive or
otherwise). If the settlement includes both components in the scope of the revenue standard and components in the scope of other standards, the reporting entity should generally allocate consideration received to the various components on a relative
standalone selling price basis. </I></P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Accordingly, we reviewed the Acacia Payments and related court rulings to identify all of the components of
the litigation settlements, noting: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">that each party was responsible for each party&#146;s respective legal expenses, thus concluded that the
settlement payments did not constitute compensation for Viasat&#146;s legal expenses incurred, </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">that final settlement amounts were calculated and based on the underlying terms of the agreements for prior
periods and related royalties earned under the Acacia Contract, and </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">there was no additional court based punitive damage component. </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Thus, we concluded that the entirety of the Acacia Payments were within the scope of ASC 606 as they were compensation under the terms of the Acacia Contract
and were in exchange for goods or sevices that were the output of Viasat&#146;s ongoing central operations. We further considered whether a significant financing component exists and whether a portion of the payment represents interest income, given
the length of time between when the royalty revenues were incurred and when the Acacia Payments were made. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">ASC <FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap">606-10-32</FONT></FONT> requires consideration of a financing component as a part of determining the transaction price when the timing of payments provides a significant benefit of financing to the customer.<I> </I>While
the Acacia Payments did not have an explicit financing component, the time between when consideration was paid and when the contractual benefits under the Acacia Contract were received from Viasat (i.e. royaties were incurred during 2019 and
forward) provided Acacia with a significant benefit of financing. As such, we determined that a portion of the Acacia Payments related to contractual consideration for prior years should be adjusted to reflect the time value of money (interest).
</P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">ASC <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">606-10-32-19</FONT></FONT></FONT> provides the
following guidance regarding calculating interest related to a significant financing component: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman"><I>To meet the objective in paragraph <FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">606-10-32-16</FONT></FONT></FONT> when adjusting the promised amount of consideration for a significant financing component, an entity shall use the
discount rate that would be reflected in a separate financing transaction between the entity and its customer at contract inception. That rate would reflect the credit characteristics of the party receiving financing in the contract, as well as any
collateral or security provided by the customer or the entity, including assets transferred in the contract. An entity may be able to determine that rate by identifying the rate that discounts the nominal amount of the promised consideration to the
price that the customer would pay in cash for the goods or services when (or as) they transfer to the customer. After contract inception, an entity shall not update the discount rate for changes in interest rates or other circumstances (such as a
change in the assessment of the customer&#146;s credit risk). </I></P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Based on our review of Acacia&#146;s public filings, Acacia did not have any outstanding interest-bearing
debt and did not disclose an interest rate that would be applicable to determining a financing rate between Viasat and Acacia reflective of Acacia&#146;s creditworthiness at contract inception. As such, we also performed a review of Cisco&#146;s
capital structure and related borrowing rates given Cisco acquired Acacia in the years preceeding the Acacia Payments, and calculated approximately $6.4&nbsp;million, and $7.2&nbsp;million, of allocable interest income with respect to the Acacia
Payments and classified such amounts accordingly in our statement of operations for periods ended March&nbsp;31, 2023 and March&nbsp;31, 2024, respectively. Thus remaining payment amounts were recorded in accordance with ASC 606 as revenue earned
under terms of the customer contract to revenue of $55.8&nbsp;million and $99.9&nbsp;million during fiscal years 2023 and 2024, respectively. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Form <FONT
STYLE="white-space:nowrap">8-K</FONT> Furnished November&nbsp;6, 2024 </U></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Exhibit 99.2 </U></B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Balance Sheet, Cash Flows and Liquidity, page 5 </U></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">3.
<B><I>Staff&#146;s comment</I></B>: <I>We note that you present, for the five most recent quarterly periods, net debt and a net leverage ratio calculated using the last twelve months of Adjusted EBITDA. Please reconcile net debt and the Adjusted
EBITDA measure used in each calculation to the appropriate GAAP figure. In addition, ensure that you present for each applicable period a ratio calculated using the most directly comparable GAAP measures. See Item 10(e)(1)(i)(A) and
(B)</I><I></I><I>&nbsp;of Regulation <FONT STYLE="white-space:nowrap">S-K</FONT> and Question 102.10(a) of the Compliance and Disclosure Interpretations on <FONT STYLE="white-space:nowrap">Non-GAAP</FONT> Financial Measures</I>. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I>Response</I></B>: We respectfully acknowledge the Staff&#146;s comment and confirm that in future filings we will (and did in the Form <FONT
STYLE="white-space:nowrap">8-K</FONT> announcing our third quarter results furnished on February&nbsp;6, 2025) include all <FONT STYLE="white-space:nowrap">non-GAAP</FONT> measures in our definitions of
<FONT STYLE="white-space:nowrap">non-GAAP</FONT> measures and include reconciliations for each <FONT STYLE="white-space:nowrap">non-GAAP</FONT> measure (including net debt and Adjusted EBITDA) for each period to the most directly comparable measure
calculated and presented in accordance with GAAP. To the extent we include net leverage ratio in future filings, we will include a ratio calculated using the most directly comparable GAAP measure. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>Use of <FONT STYLE="white-space:nowrap">Non-GAAP</FONT> Financial Information, page 10 </U></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">4. <B><I>Staff&#146;s comment</I></B>: <I>We note that you provide unaudited supplemental adjusted combined financial information that shows, for illustrative
purposes only, certain financial information that reflects your historical results of operations with the <FONT STYLE="white-space:nowrap">pre-acquisition</FONT> results of operations of Inmarsat and that such presentation &#147;does not include pro
forma adjustments&#148; and &#147;do not reflect <FONT STYLE="white-space:nowrap">non-recurring</FONT> charges...other than to the extent already reflected in actual historical results.&#148; To the extent you intend to include combined information
in future filings, please ensure the combined information is prepared and presented in compliance with the pro forma financial statement requirements of Article 11 of Regulation <FONT STYLE="white-space:nowrap">S-X.</FONT> Otherwise, please remove
the combined financial information from future filings. In addition, considering Inmarsat was included in your results for </I><I>the entire three month period ended September</I><I></I><I>&nbsp;30, 2023, please clarify the differences between the
combined revenue and Adjusted EBITDA amounts on page 16 with the corresponding equivalents on pages 13 and 15</I>. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I>Response</I></B>: We respectfully acknowledge the Staff&#146;s comment and confirm that, if combined
information is included in future filings, it will be prepared and presented in compliance with the pro forma financial statement requirements of Article 11 of Regulation <FONT STYLE="white-space:nowrap">S-X.</FONT> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">With respect to the supplemental adjusted combined revenue and Adjusted EBITDA amounts for the three months ended September&nbsp;30, 2023 on page 16, we
confirm that these results included the results of Inmarsat for the entire three month period, and that the only difference between the adjusted revenue and Adjusted EBITDA amounts on page 16 and the corresponding equivalents on pages 13 and 15
related to the $95&nbsp;million in revenue and $86&nbsp;million in Adjusted EBITDA ($95&nbsp;million in revenue less approximately $9&nbsp;million of related Acacia legal expenses in the period<I>) </I>associated with our resolution of legal matters
with Acacia discussed above, as disclosed in the footnote on page 16. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">*&#8195;*&#8195;*&#8195;*&#8195;* </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Please contact the undersigned at (760) <FONT STYLE="white-space:nowrap">476-2244</FONT> if you have any further questions or require any further information.
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<TD VALIGN="top">Very truly yours,</TD></TR>
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<TD HEIGHT="16"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Shawn Duffy</P></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Shawn Duffy</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Senior Vice President and Chief Accounting Officer</TD></TR>
</TABLE></DIV> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">cc: Gary Chase, Senior Vice President and Chief Financial Officer </P>
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