| Composition of Certain Balance Sheet Accounts |
6. Composition of Certain Balance Sheet Accounts
Inventories as of December 31, 2013 and 2012, all of which
were included within the BA segment, were as follows (in
thousands):
|
|
|
|
|
|
|
|
|
| |
|
December 31, |
|
| |
|
2013 |
|
|
2012 |
|
|
Work-in-process component parts
|
|
$ |
10,146 |
|
|
$ |
9,997 |
|
|
Finished goods
|
|
|
3,500 |
|
|
|
2,152 |
|
|
|
|
|
|
|
|
|
|
|
Total inventory
|
|
$ |
13,646 |
|
|
$ |
12,149 |
|
|
|
|
|
|
|
|
|
|
Prepaid expenses and other current assets as of December 31,
2013 and 2012 were as follows (in thousands):
|
|
|
|
|
|
|
|
|
| |
|
December 31, |
|
| |
|
2013 |
|
|
2012 |
|
|
Deposits on satellite services
|
|
$ |
4,774 |
|
|
$ |
— |
|
|
Airfone acquisition related other current assets (1)
|
|
|
2,847 |
|
|
|
— |
|
|
Restricted cash
|
|
|
1,006 |
|
|
|
214 |
|
|
Other
|
|
|
7,660 |
|
|
|
6,153 |
|
|
|
|
|
|
|
|
|
|
|
Total prepaid expenses and other current assets
|
|
$ |
16,287 |
|
|
$ |
6,367 |
|
|
|
|
|
|
|
|
|
|
| (1) |
See Note 7, “Airfone
Acquisition” for further information. |
Property and equipment as of December 31, 2013 and 2012 were
as follows (in thousands):
|
|
|
|
|
|
|
|
|
| |
|
December 31, |
|
| |
|
2013 |
|
|
2012 |
|
|
Office equipment, furniture, and fixtures
|
|
$ |
19,695 |
|
|
$ |
15,895 |
|
|
Leasehold improvements
|
|
|
7,747 |
|
|
|
7,152 |
|
|
Airborne equipment
|
|
|
227,866 |
|
|
|
163,896 |
|
|
Network equipment
|
|
|
135,072 |
|
|
|
96,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
390,380 |
|
|
|
282,943 |
|
|
Accumulated depreciation
|
|
|
(124,746 |
) |
|
|
(85,269 |
) |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
$ |
265,634 |
|
|
$ |
197,674 |
|
|
|
|
|
|
|
|
|
|
Other non-current assets as of December 31, 2013 and 2012 were
as follows (in
thousands):
|
|
|
|
|
|
|
|
|
| |
|
December 31, |
|
| |
|
2013 |
|
|
2012 |
|
|
Canadian ATG license payments (1)
|
|
$ |
2,749 |
|
|
$ |
3,080 |
|
|
Deposits on satellite and other airborne equipment
|
|
|
5,629 |
|
|
|
5,747 |
|
|
Other
|
|
|
1,168 |
|
|
|
2,036 |
|
|
|
|
|
|
|
|
|
|
|
Total other non-current assets
|
|
$ |
9,546 |
|
|
$ |
10,863 |
|
|
|
|
|
|
|
|
|
|
| (1) |
See Note 18, “Canadian ATG
Spectrum License” for further information. |
Accrued liabilities as of December 31, 2013 and 2012 consist
of the following (in thousands):
|
|
|
|
|
|
|
|
|
| |
|
December 31, |
|
| |
|
2013 |
|
|
2012 |
|
|
Employee benefits
|
|
$ |
17,320 |
|
|
$ |
11,212 |
|
|
Airborne equipment and installation costs
|
|
|
4,981 |
|
|
|
12,209 |
|
|
Airfone acquisition related liabilities (1)
|
|
|
4,791 |
|
|
|
— |
|
|
Other
|
|
|
22,054 |
|
|
|
16,270 |
|
|
|
|
|
|
|
|
|
|
|
Total accrued liabilities
|
|
$ |
49,146 |
|
|
$ |
39,691 |
|
|
|
|
|
|
|
|
|
|
| (1) |
See Note 7, “Airfone
Acquisition” for further information. |
Other non-current liabilities as of December 31, 2013 and 2012
consist of the following (in thousands):
|
|
|
|
|
|
|
|
|
| |
|
December 31, |
|
| |
|
2013 |
|
|
2012 |
|
|
Asset retirement obligations
|
|
$ |
4,382 |
|
|
$ |
2,637 |
|
|
Deferred rent
|
|
|
3,982 |
|
|
|
4,020 |
|
|
Capital leases
|
|
|
3,011 |
|
|
|
229 |
|
|
Deferred revenue
|
|
|
1,878 |
|
|
|
249 |
|
|
Other
|
|
|
1,183 |
|
|
|
623 |
|
|
|
|
|
|
|
|
|
|
|
Total other non-current liabilities
|
|
$ |
14,436 |
|
|
$ |
7,758 |
|
|
|
|
|
|
|
|
|
|
Changes in our warranty reserve for the years ended
December 31, 2013 and 2012 consist of the following (in
thousands):
|
|
|
|
|
| |
|
Warranty
Reserve |
|
|
Balance—January 1, 2011
|
|
$ |
415 |
|
|
Accruals for warranties issued
|
|
|
1,254 |
|
|
Settlements of warranties
|
|
|
(997 |
) |
|
|
|
|
|
|
Balance—December 31, 2011
|
|
|
672 |
|
|
Accruals for warranties issued
|
|
|
480 |
|
|
Settlements of warranties
|
|
|
(282 |
) |
|
|
|
|
|
|
Balance—December 31, 2012
|
|
|
870 |
|
|
Accruals for warranties issued
|
|
|
622 |
|
|
Settlements of warranties
|
|
|
(612 |
) |
|
|
|
|
|
|
Balance—December 31, 2013
|
|
$ |
880 |
|
|
|
|
|
|
Changes in our non-current asset retirement obligations for the
years ended December 31, 2013 and 2012 consist of the
following (in thousands):
|
|
|
|
|
| |
|
Asset
Retirement
Obligation |
|
|
Balance—January 1, 2012
|
|
$ |
2,112 |
|
|
Liabilities incurred
|
|
|
293 |
|
|
Liabilities settled
|
|
|
(39 |
) |
|
Accretion expense
|
|
|
271 |
|
|
|
|
|
|
|
Balance—December 31, 2012
|
|
|
2,637 |
|
|
Liabilities incurred (1)
|
|
|
1,454 |
|
|
Liabilities settled
|
|
|
(72 |
) |
|
Accretion expense
|
|
|
363 |
|
|
|
|
|
|
|
Balance—December 31, 2013
|
|
$ |
4,382 |
|
|
|
|
|
|
| (1) |
Includes $1.0 million related to a
change in estimate in the expected cash flows for our estimated
liabilities. |
The changes in our non-current asset retirement obligations exclude
asset retirement obligations acquired as part of the Airfone
acquisition as we expect to wind down the business and related
assets within a year and have thus classified such obligations as
current liabilities as of December 31, 2013.
|