Composition of Certain Balance Sheet Accounts

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Composition of Certain Balance Sheet Accounts

Inventories consist primarily of telecommunications systems and parts and are recorded at the lower of average cost or net realizable value. We evaluate the need for write-downs associated with obsolete, slow-moving and nonsalable inventory by reviewing net realizable inventory values on a periodic basis.

Inventories as of June 30, 2024 and December 31, 2023 were as follows (in thousands):


	June 30,		December 31,
	2024		2023
Work-in-process component parts	$	34,107	$	34,692
Finished goods		34,951		28,495
Total inventory(1)	$	69,058	$	63,187

(1) See Note 4, “Government Assistance,” for additional information.

Prepaid expenses and other current assets as of June 30, 2024 and December 31, 2023 were as follows (in thousands):


	June 30,		December 31,
	2024		2023
Interest rate caps and receivable	$	18,920	$	23,227
FCC reimbursement receivable(1)		17,471		18,274
Contract assets(1)		6,205		6,939
Prepaid inventories		2,704		2,606
Other		15,376		13,092
Total prepaid expenses and other current assets	$	60,676	$	64,138

(1) See Note 4, “Government Assistance,” for additional information.

Property and equipment as of June 30, 2024 and December 31, 2023 were as follows (in thousands):


	June 30,			December 31,
	2024			2023
Office equipment, furniture, fixtures and other	$	20,058		$	19,153
Leasehold improvements		16,174			16,132
Network equipment(1)		186,394			184,176
		222,626			219,461
Accumulated depreciation		(127,940	)		(121,332	)
Total property and equipment, net	$	94,686		$	98,129

(1) See Note 4, “Government Assistance,” for additional information.

Other non-current assets as of June 30, 2024 and December 31, 2023 were as follows (in thousands):


	June 30,		December 31,
	2024		2023
Interest rate caps	$	8,440	$	10,295
Contract assets, net of allowances of $664 and $591, respectively(1)		9,501		9,625
Revolving credit facility deferred financing costs		795		1,011
Other		4,811		5,048
Total other non-current assets	$	23,547	$	25,979

(1) See Note 4, “Government Assistance,” for additional information.

Accrued liabilities as of June 30, 2024 and December 31, 2023 were as follows (in thousands):


	June 30,		December 31,
	2024		2023
Operating leases	$	10,560	$	10,284
Employee compensation and benefits		10,025		10,386
Customer credit reserve		6,731		6,027
Network equipment		5,412		4,533
Warranty reserve		3,380		3,420
Gogo Galileo development costs		6,749		2,432
Taxes		2,571		2,170
Accrued interest		466		469
Other		7,088		7,928
Total accrued liabilities	$	52,982	$	47,649