Company: VSAT
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0000950170-25-016993
Chunk: 123

Company: VIASAT INC
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 2
Chunk 123
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&D expenses was mainly due to an increase of $8.8 million in our defense and advanced technologies segment (primarily related to tactical terrestrial networking and other advanced technologies), partially offset by a $4.3 million decrease in our communication services segment (primarily related to next-generation consumer broadband integrated networking technologies).

Amortization of acquired intangible assets

We amortize our acquired intangible assets from prior acquisitions over their estimated useful lives, which range from two to 20 years. The $2.8 million decrease in amortization of acquired intangible assets in the first nine months of fiscal year 2025 compared to the prior year period was primarily due to the final valuation of certain acquired intangible assets completed in the first quarter of fiscal year 2025, within one year of the closing of the Inmarsat 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.

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