Company: VSAT
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0000950170-25-016993
Chunk: 213

Company: VIASAT INC
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 8
Chunk 213
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1 million decrease in interest expense for the three months ended December 31, 2024 compared to the prior year period was primarily attributable to an increase in the amount of interest capitalized in the current year period.

Income taxes

For the three months ended December 31, 2024, we recorded an income tax benefit of $11.8 million, resulting in an effective tax rate of 7%. 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 three months ended December 31, 2023, we recorded an income tax benefit of $34.5 million, resulting in an effective tax rate of 22%. The effective tax rate for the period did not differ significantly from the U.S. statutory rate despite a valuation allowance recorded against our U.S. net deferred tax assets primarily due to the impacts of purchase price allocation adjustments with respect to the Inmarsat Acquisition recorded in the quarter.

51

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

Communication services segment

Revenues 

    Three Months Ended

    Dollar

    Percentage

    (In millions, except percentages)
     
    December 31,2024

    December 31,2023

    Increase(Decrease)

    Increase(Decrease)

    Segment service revenues
     
    $
    759.0

    $
    772.4

    $
    (13.4
    )

    (2
    )%

    Segment product revenues

    61.4

    102.5

    (41.1
    )

    (40
    )%

    Total segment revenues
     
    $
    820.3

    $
    874.9

    $
    (54.5
    )

    (6
    )%

Our communication services segment revenues decreased by $54.5 million due to a $41.1 million decrease in product revenues and a $13.4 million decrease in service revenues. The decrease in segment product revenues was primarily due to decreases of $27.4 million in aviation products due to accelerated IFC terminal deliveries in the prior year period, $11.4 million in government satcom products and $3.1 million in fixed services and other products, mainly driven by enterprise and energy. The decrease in segment service revenues