Company: VSAT
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0000950170-25-016993
Chunk: 193

Company: VIASAT INC
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 8
Chunk 193
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 any ongoing or future audits or reviews and adjustments and if future adjustments exceed the Company’s estimates, its profitability would be adversely affected. The Company had $11.4 million and $16.6 million as of December 31, 2024 and March 31, 2024, respectively, in contract-related reserves for its estimate of potential refunds to customers for potential cost adjustments on several multi-year U.S. Government cost reimbursable contracts. This reserve is classified as either an element of accrued liabilities or as a reduction of unbilled accounts receivable based on the status of the related contracts.

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VIASAT, INC.NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)(UNAUDITED) 

In September 2023, the Company settled certain pending litigation. Under the terms of the settlement and licensing agreement, the Company receives certain payments, which may vary based on sales of licensed products. In the first quarter of fiscal year 2025, the Company received a payment of approximately $41.7 million, which was recognized as product revenue in the Company’s defense and advanced technologies segment for the nine months ended December 31, 2024. In the second quarter of fiscal year 2024, the Company received a payment, of which $99.9 million was recognized as product revenue in the Company’s defense and advanced technologies segment and $7.2 million as interest income for the nine months ended December 31, 2023. The Company may from time to time receive additional licensing and royalty payments under the settlement and licensing agreement.

Note 10 — Income TaxesFor the three and nine months ended December 31, 2024, the Company recorded income tax benefits of $11.8 million and $4.7 million, respectively, resulting in effective tax rates of 7% and 2%, respectively. The effective tax rates for the periods differed from the U.S. statutory rate primarily due to a U.S. valuation allowance, foreign tax rate differences, and decreases in the Company's unrecognized tax benefits.For the three and nine months ended December 31, 2023, the Company recorded income tax benefits of $34.5 million and $128.1 million, respectively, resulting in effective tax rates of 22% and 12%, respectively. The effective tax rate for the three months ended December 31, 2023 did not differ significantly from the U.S. statutory rate despite a valuation allowance recorded against the Company's U.S. net deferred