Company: VSAT
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0000950170-25-016993
Chunk: 118

Company: VIASAT INC
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 2
Chunk 118
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 assets 

We amortize our acquired intangible assets from prior acquisitions over their estimated useful lives, which range from two to 20 years. The $25.9 million decrease in amortization of acquired intangible assets in the third quarter of fiscal year 2025 compared to the prior year period was primarily related 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 $3.2 million decrease in interest income for the three months ended December 31, 2024 compared to the prior year period was primarily due to lower interest earned as a result of a lower average invested balance in combination with lower interest rates.

Interest expense 

The $39.1 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