VIASAT, INC. 401(k) PROFIT SHARING PLAN
NOTES TO THE FINANCIAL STATEMENTS
FOR THE
FISCAL YEAR ENDED MARCH 31, 2024
Additionally, the Plan allows for discretionary profit-sharing contributions and qualified non-elective contributions (QNEC) by the Company. For the fiscal year ended March 31, 2024, there were no discretionary profit-sharing contributions or QNEC contributions made.
Rollover contributions meeting certain guidelines detailed in the Plan document may be made to the Plan.
Participant Accounts
Separate accounts are
maintained for each participant. Participants direct the investment of their Plan accounts among a variety of investment options. Participants may change their elections, including investments in the Company common stock, on a daily basis. Plan
earnings (losses) from investments are allocated to the participant account balances on a daily basis using a weighted average of participant account balances.
Vesting
Participants are immediately vested
in their voluntary contributions, plus actual earnings thereon. Participants are vested in Company matching and profit-sharing contributions as follows:
|
|
|
|
|
Years of Vesting Service |
|
Vested Percentage |
|
Less than 1 year |
|
|
0 |
% |
1 but less than 2 years |
|
|
34 |
% |
2 but less than 3 years |
|
|
67 |
% |
3 or more years |
|
|
100 |
% |
Additionally, participants become 100% vested in Company contributions upon death, disability, or upon reaching the early
or normal retirement ages as defined in the Plan document.
Forfeitures
Amounts forfeited by terminated employees are used to pay expenses of the Plan and/or reduce Company matching contributions. As of March 31, 2024
and 2023, forfeitures of $638,755 and $567,466, respectively, were available to reduce future employer contributions. During fiscal years 2024 and 2023, forfeitures of $250,000 and $200,000 were utilized to reduce the employer contributions
receivable, respectively.
Payment of Benefits
Prior to termination of employment, a participant may make the following in-service withdrawals: (a) all or
any portion of their rollover balance at any time, (b) all or a portion of their vested Plan accounts upon attaining age 591/2, (c)
qualified reservist withdrawals from deferrals, (d) deemed severance of employment withdrawals if on active military duty and (e) hardship withdrawals. Upon retirement or other termination of employment, participants or their beneficiaries
are entitled to receive their vested balances in a lump sum distribution or installment payments. Involuntary cash-out distributions of amounts greater than $1,000 but not more than $5,000 (effective March
2024 not more than $7,000) are distributed in the form of a direct rollover to an individual retirement account designated by the Plan administrator. If the distribution is less than $1,000, a check for the vested balance is sent to the employee,
less applicable tax withholding. Furthermore, post severance partial payments are allowed under the Plan effective June 15, 2022.
Hardship
Withdrawals
Upon certain conditions, participants, while still employed by the Company, are permitted to withdraw, in a single sum, a portion of
their vested account as a result of an immediate and heavy financial need. These conditions include unreimbursed medical expenses, the purchase of the participants principal residence, the payment of post-secondary education tuition, the
payment of burial or funeral costs of immediate family members, the payment of natural disaster clean-up on the participants principal residence or to prevent eviction or foreclosure from the
participants principal residence.
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