Company: VSAT
Filing Date: 2025-02-11
Form Type: CORRESP
Source: 0001193125-25-024360
Chunk: 3

Company: VIASAT INC
Filing Date: 2025-02-11
Form: CORRESP
Chunk 3
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)(3)were not applicable. Restricted Net Assets “Restricted net assets” is defined under Rule 1-02(dd)of Regulation S-Xby reference to the amount of the registrant’s proportionate share of net assets of consolidated subsidiaries as of fiscal year end which “may not be transferred to the parent company by subsidiaries in the form of loans, advances, or cash dividends without the consent of a third party (i.e. lender, regulatory agency, foreign government, etc.).” As of March 31, 2024, taking into account the restrictions on the transfer of funds to Viasat in the form of loans, advances or cash dividends under the Inmarsat Debt Agreements described above, restricted net assets were less than 5% of Viasat’s consolidated net assets, and accordingly, we determined that no additional disclosure prescribed by Rules 5-04and 12-04of Regulation S-Xwas necessary. We will continue to review the disclosure requirements as part of our future filings and include disclosures as required. Note 15 – Contingencies, page F-50 2. Staff’s comment: We note that you recognized payments within product revenues of $55.8 million and $99.9 million during fiscal years 2023 and 2024, respectively, related to the resolution of certain legal matters with Cisco Systems, Inc. Please tell us the nature and specific facts and circumstances of these payments and, if applicable, the specific authoritative GAAP guidance that supports revenue classification. In doing so, clarify how you assessed the payments for revenue and nonrevenue elements.

Response: We respectfully acknowledge the Staff’s comment and provide the additional
information regarding our evaluation of revenue classification of the aforementioned payments from Cisco in relation to resolution of certain legal matters with Cisco in fiscal years 2023 and 2024.

General Background

Acacia Communications, Inc.
(“Acacia”) was an entity that designed, manufactured, and sold a complete portfolio of high-speed optical interconnect technologies addressing a range of applications across datacenter, metro, regional, long-haul, and undersea networks.
Acacia was acquired by Cisco Systems, Inc. (“Cisco”) on March 1, 2021. Viasat licensed certain technologies of its soft decision forward error correction (SDFEC) technology to Acacia in a prior contractual agreement that required
Acacia to pay royalties for its use of any of Viasat’s encoding and decoding methods (the “Acacia Contract”). During the term of the Acacia