Company: VSAT
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0000950170-25-016993
Chunk: 159

Company: VIASAT INC
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 8
Chunk 159
---
 reached until the product is available for general release to customers are capitalized and reported at the lower of unamortized cost or net realizable value. Once the product is available for general release, the software development costs are amortized based on the ratio of current to future revenue for each product with an annual minimum equal to straight-line amortization over the remaining estimated economic life of the product, generally within five years. As of December 31, 2024 and March 31, 2024, the Company had $758.0 million and $723.9 million, respectively, of capitalized costs related to software developed for resale. Accumulated amortization related to these assets was $504.2 million and $483.3 million as of December 31, 2024 and March 31, 2024, respectively. The Company capitalized $18.3 million and $56.1 million of costs related to software developed for resale for the three and nine months ended December 31, 2024, respectively, and $25.1 million and $56.1 million for the three and nine months ended December 31, 2023, respectively. Amortization expense for capitalized software development costs was $13.5 million and $42.9 million for the three and nine months ended December 31, 2024, respectively, and $14.7 million and $43.2 million for the three and nine months ended December 31, 2023, respectively.Self-insurance and post-retirement medical benefit liabilities The Company has self-insurance plans to retain a portion of the exposure for losses related to employee medical benefits and workers’ compensation. The self-insurance plans include policies which provide for both specific and aggregate stop-loss limits. The Company utilizes actuarial methods as well as other historical information for the purpose of estimating ultimate costs for a particular plan year. Based on these actuarial methods, along with currently available information and insurance industry statistics, the Company has recorded self-insurance liability for its plans of $5.9 million and $6.5 million as of December 31, 2024 and March 31, 2024, respectively. The Company’s estimate, which is subject to inherent variability, is based on average claims experience in the Company’s industry and its own experience in terms of frequency and severity of claims, including asserted and unasserted claims incurred but not reported, with no explicit provision for adverse fluctuation from year to year. This variability may lead to ultimate payments