Company: VSAT
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0000950170-25-016993
Chunk: 218

Company: VIASAT INC
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 8
Chunk 218
---
marsat Acquisition as additional information was obtained.

Interest income

The $8.2 million decrease in interest income for the nine months ended December 31, 2024 compared to the prior year period was primarily due to lower interest earned as a result of lower average invested balance in combination with lower interest rates, in addition to interest income received from a litigation settlement in the prior year period (see Note 9 — Commitments and Contingencies to our condensed consolidated financial statements for more information).

Interest expense

The $40.0 million increase in interest expense for the nine months ended December 31, 2024 compared to the prior year period was primarily the result of the effects of increased interest expense arising from our increased level of indebtedness following the closing of the Inmarsat Acquisition in May 2023 and the refinancing of certain debt at a higher interest rate.

Income taxes

For the nine months ended December 31, 2024, we recorded an income tax benefit of $4.7 million, resulting in an effective tax rate of 2%. The effective tax rate for the period differed from the U.S. statutory rate primarily due to a U.S. valuation allowance, foreign tax rate differences, and decreases in our unrecognized tax benefits. For the nine months ended December 31, 2023, we recorded an income tax benefit of $128.1 million, resulting in an effective tax rate of 12%. The effective tax rate for the period differed from the U.S. statutory rate primarily due to a valuation allowance recorded against our U.S. net deferred tax assets.

54

Segment Results for the Nine Months Ended December 31, 2024 vs. Nine Months Ended December 31, 2023

Communication services segment

Revenues 

    Nine Months Ended

    Dollar

    Percentage

    (In millions, except percentages)
     
    December 31,2024

    December 31,2023

    Increase(Decrease)

    Increase(Decrease)

    Segment service revenues
     
    $
    2,273.5

    $
    2,036.9

    $
    236.6

    12
    %

    Segment product revenues

    200.0

    244.8

    (44.7
    )

    (18
    )%

    Total segment revenues
     
    $
    2,473.5

    $
    2,281.7

    $
    191.