Composition of Certain Balance Sheet Accounts (Tables)

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Property and equipment as of March 31, 2018 and December 31, 2017 were as follows (in thousands):


	March 31,			December 31,
	2018			2017
Office equipment, furniture, fixtures and other	$	47,849		$	46,445
Leasehold improvements		43,417			42,522
Airborne equipment (1) (2)		591,297			765,652
Network equipment		200,140			199,304

		882,703			1,053,923
Accumulated depreciation (1)		(352,016	)		(397,885	)

Property and equipment, net	$	530,687		$	656,038

(1)

Changes between March 31, 2018 and December 31, 2017 relate to the accounting impact of the transition of one of our airline partner agreements to the airline-directed model (see Note 1, “Basis of Presentation,” for additional information) and the adoption of ASC 606 (see Note 2, “New Accounting Pronouncements,” for additional information).

(2)

Changes between March 31, 2018 and December 31, 2017 also relates to the allocation of uninstalled airborne equipment to inventory (see Note 5, “Inventories,” for additional information).

Schedule of Other Non-Current Assets

Other non-current assets as of March 31, 2018 and December 31, 2017 were as follows (in thousands):


	March 31,		December 31,
	2018		2017
Contract Assets (1)	$	21,502	$	—
Deferred STC costs (1)		8,411		—
Deferred cost of equipment revenue (1)		—		40,986
Restricted cash		6,635		6,873
Other		19,579		19,248

Total other non-current assets	$	56,127	$	67,107

(1)

Changes between March 31, 2018 and December 31, 2017 are primarily due to the adoption of ASC 606. See Note 2, “New Accounting Pronouncements,” for additional information.

Accrued Liabilities

Accrued liabilities as of March 31, 2018 and December 31, 2017 were as follows (in thousands):


	March 31,		December 31,
	2018		2017
Employee compensation and benefits	$	16,865	$	25,621
Airborne equipment and installation costs		24,551		44,059
Airline related accrued liabilities		17,146		13,566
Accrued interest		22,694		47,649
Accrued revenue share		12,768		17,339
Other		69,497		53,581

Total accrued liabilities	$	163,521	$	201,815

Other Non-Current Liabilities

Other non-current liabilities as of March 31, 2018 and December 31, 2017 were as follows (in thousands):


	March 31,		December 31,
	2018		2017
Deferred revenue (1)	$	30,293	$	73,192
Deferred rent		37,152		37,354
Asset retirement obligations		9,869		9,668
Deferred tax liabilities		2,120		5,983
Other		8,112		8,458

Total other non-current liabilities	$	87,546	$	134,655

(1)

Changes between March 31, 2018 and December 31, 2017 are primarily due to the adoption of ASC 606. See Note 2, “New Accounting Pronouncements,” for additional information.