Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 09, 2020 | Jun. 28, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | LORAL SPACE & COMMUNICATIONS INC. | ||
Entity Central Index Key | 0001006269 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 439,112,289 | ||
Voting Common Stock [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 21,427,078 | ||
Non-Voting Common Stock [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 9,505,673 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 259,067 | $ 256,947 |
Income tax refund receivable | 576 | 3,903 |
Other current assets | 1,322 | 3,232 |
Total current assets | 260,965 | 264,082 |
Right-of-use asset | 988 | |
Income tax refund receivable, non-current | 387 | 774 |
Investments in affiliates | 90,184 | 24,574 |
Deferred tax assets | 37,945 | 40,520 |
Other assets | 341 | 350 |
Total assets | 390,810 | 330,300 |
Current liabilities: | ||
Accrued employment costs | 2,611 | 2,573 |
Other current liabilities | 2,883 | 1,495 |
Total current liabilities | 5,494 | 4,068 |
Pension and other postretirement liabilities | 17,447 | 15,167 |
Other liabilities | 17,842 | 13,499 |
Total liabilities | 40,783 | 32,734 |
Commitments and contingencies | ||
Shareholders' Equity: | ||
Preferred stock, 0.01 par value; 10,000,000 shares authorized, no shares issued and outstanding | ||
Common Stock: | ||
Paid-in capital | 1,019,988 | 1,019,988 |
Accumulated deficit | (605,766) | (695,521) |
Accumulated other comprehensive loss | (54,914) | (17,620) |
Total shareholders' equity | 350,027 | 297,566 |
Total liabilities and shareholders' equity | 390,810 | 330,300 |
Voting Common Stock [Member] | ||
Common Stock: | ||
Common stock, 0.01 par value | 216 | 216 |
Treasury stock (at cost), 154,494 shares of voting common stock | (9,592) | (9,592) |
Non-Voting Common Stock [Member] | ||
Common Stock: | ||
Common stock, 0.01 par value | $ 95 | $ 95 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Voting Common Stock [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 21,581,572 | 21,581,572 |
Treasury stock, shares | 154,494 | 154,494 |
Non-Voting Common Stock [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 9,505,673 | 9,505,673 |
Shares issued and outstanding | 9,505,673 | 9,505,673 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statements of Operations [Abstract] | ||
General and administrative expenses | $ (6,612) | $ (6,534) |
Operating income (loss) | (6,612) | (6,534) |
Interest and investment income | 5,727 | 4,746 |
Interest expense | (24) | (26) |
Other expense | (4,586) | (3,445) |
Income (loss) from continuing operations before income taxes and equity in net income (loss) of affiliates | (5,495) | (5,259) |
Income tax (provision) benefit | (6,153) | 39,348 |
Income (loss) from continuing operations before equity in net income (loss) of affiliates | (11,648) | 34,089 |
Equity in net income (loss) of affiliates | 101,403 | (24,412) |
Income (loss) from continuing operations | 89,755 | 9,677 |
Income (loss) from discontinued operations, net of tax | (63) | |
Net income (loss) | $ 89,755 | $ 9,614 |
Basic | ||
Income (loss) from continuing operations | $ 2.90 | $ 0.31 |
Income (loss) from discontinued operations, net of tax | ||
Net income (loss) per share | 2.90 | 0.31 |
Diluted | ||
Income (loss) from continuing operations | 2.88 | 0.31 |
Income (loss) from discontinued operations, net of tax | ||
Net income (loss) per share | $ 2.88 | $ 0.31 |
Weighted average common shares outstanding: | ||
Basic | 30,933 | 30,933 |
Diluted | 31,008 | 31,008 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ||
Net income (loss) | $ 89,755 | $ 9,614 |
Pension and other post-retirement benefits | (1,511) | 1,798 |
Proportionate share of Telesat other comprehensive income (loss) | (35,783) | 22,033 |
Other comprehensive income (loss), Net-of-tax Amount | (37,294) | 23,831 |
Comprehensive income (loss) | $ 52,461 | $ 33,445 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Voting Common Stock [Member]Common Stock [Member] | Non-Voting Common Stock [Member]Common Stock [Member] | Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
Balance at Dec. 31, 2017 | $ 216 | $ 95 | $ 1,019,988 | $ (9,592) | $ (682,831) | $ (37,278) | $ 290,598 |
Balance, shares at Dec. 31, 2017 | 21,582 | 9,506 | 154 | ||||
Net income (loss) | 9,614 | 9,614 | |||||
Other comprehensive income (loss) | 23,831 | 23,831 | |||||
Comprehensive income (loss) | 33,445 | ||||||
Tax Cuts and Jobs Act, reclassification tax effect | 4,173 | (4,173) | |||||
Cumulative effect adjustment attributable to investment in Telesat | (26,477) | (26,477) | |||||
Balance at Dec. 31, 2018 | $ 216 | $ 95 | 1,019,988 | $ (9,592) | (695,521) | (17,620) | 297,566 |
Balance, shares at Dec. 31, 2018 | 21,582 | 9,506 | 154 | ||||
Net income (loss) | 89,755 | 89,755 | |||||
Other comprehensive income (loss) | (37,294) | (37,294) | |||||
Comprehensive income (loss) | 52,461 | ||||||
Balance at Dec. 31, 2019 | $ 216 | $ 95 | $ 1,019,988 | $ (9,592) | $ (605,766) | $ (54,914) | $ 350,027 |
Balance, shares at Dec. 31, 2019 | 21,582 | 9,506 | 154 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities: | ||
Net income (loss) | $ 89,755 | $ 9,614 |
Loss from discontinued operations, net of tax | 63 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Non-cash operating items (Note 2) | (97,384) | 34,539 |
Changes in operating assets and liabilities: | ||
Other current assets | 98 | (133) |
Accrued employment costs and other current liabilities | 93 | 184 |
Income tax refund receivable | 4,387 | 7,978 |
Pension and other postretirement liabilities | (633) | (2,411) |
Other liabilities | 3,998 | (47,976) |
Net cash provided by (used in) operating activities – continuing operations | 314 | 1,858 |
Net cash provided by (used in) operating activities – discontinued operations | 1,812 | (46) |
Net cash provided by (used in) operating activities | 2,126 | 1,812 |
Investing activities: | ||
Capital expenditures | (6) | (4) |
Net cash (used in) provided by investing activities - continuing operations | (6) | (4) |
Net cash provided by (used in) investing activities – discontinued operations | ||
Net cash (used in) provided by investing activities | (6) | (4) |
Cash, cash equivalents and restricted cash - period increase (decrease) | 2,120 | 1,808 |
Cash, cash equivalents and restricted cash - beginning of year | 257,251 | 255,443 |
Cash, cash equivalents and restricted cash - end of year | $ 259,371 | $ 257,251 |
Organization and Principal Busi
Organization and Principal Business | 12 Months Ended |
Dec. 31, 2019 | |
Organization and Principal Business [Abstract] | |
Organization and Principal Business | 1. Organization and Principal Business Loral Space & Communications Inc., together with its subsidiaries (“Loral,” the “Company,” “we,” “our” and “us”) is a leading satellite communications company engaged, through our ownership interests in affiliates, in satellite-based communications services. Description of Business Loral has one operating segment consisting of satellite-based communications services. Loral participates in satellite services operations primarily through its ownership interest in Telesat Canada (“Telesat”), a leading global satellite operator. Loral holds a 62.7% economic interest and a 32.6% voting interest in Telesat. We use the equity method of accounting for our ownership interest in Telesat (see Note 5). Telesat owns and leases a satellite fleet that operates in geostationary earth orbit approximately 22,000 miles above the equator. In this orbit, satellites remain in a fixed position relative to points on the earth’s surface and provide reliable, high-bandwidth services anywhere in their coverage areas, serving as the backbone for many forms of telecommunications. Telesat is also developing a global constellation of low earth orbit (“LEO”) satellites. LEO satellites operate in a circular orbit around the earth with an altitude typically between 500 and 870 miles. Unlike geostationary orbit satellites that operate in a fixed orbital location above the equator, LEO satellites travel around the earth at high velocities requiring antennas on the ground to track their movement. LEO satellite systems have the potential to offer a number of advantages over geostationary orbit satellites to meet growing requirements for broadband services, both consumer and commercial, by providing increased data speeds and capacity, global coverage, and latency on par with, or potentially better than, terrestrial services. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 2. Basis of Presentation The consolidated financial statements include the results of Loral and its subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany transactions have been eliminated. Investments in Affiliates Our ownership interest in Telesat is accounted for using the equity method of accounting under U.S. GAAP. Telesat’s financial statements are prepared in accordance with international financial reporting standards (“IFRS”). To allow our reporting of our investment in Telesat under U.S. GAAP, Telesat provides us with a reconciliation of its financial statements from IFRS to U.S. GAAP . Income and losses of Telesat are recorded based on our economic interest. The contribution of Loral Skynet, a wholly owned subsidiary of Loral prior to its contribution to Telesat in 2007, was recorded by Loral at the historical book value of our retained interest combined with the gain recognized on the contribution. However, the contribution was recorded by Telesat at fair value. Accordingly, the amortization of Telesat fair value adjustments applicable to the Loral Skynet assets and liabilities acquired by Telesat in 2007 is proportionately eliminated in determining our share of the net income of Telesat. Our equity in net income or loss of Telesat also reflects amortization of profits eliminated, to the extent of our economic interest in Telesat, on satellites we constructed for Telesat while we owned Space Systems/Loral, LLC (formerly known as Space Systems/Loral, Inc.) (“SSL”) and on Loral’s sale to Telesat in April 2011 of its portion of the payload on the ViaSat-1 satellite and related assets. Non-refundable cash distributions received from Telesat in excess of our initial investment and our share of cumulative equity in comprehensive income of Telesat, net of cash distributions received in prior periods, are recorded as equity in net income of Telesat (“Excess Cash Distribution”) since we have no obligation to provide future financial support to Telesat. After receiving an Excess Cash Distribution, we do not record additional equity in net income of Telesat until our share of Telesat’s future net income exceeds the Excess Cash Distribution. Equity in losses of affiliates is not recognized after the carrying value of an investment, including advances and loans, has been reduced to zero, unless guarantees or other funding obligations exist. We had no guarantees or other funding obligations for our equity method investments as of December 31, 2019 and 2018. We use the nature of distribution approach to classify distributions from equity method investments on the statements of cash flows. The Company monitors its equity method investments for factors indicating other-than-temporary impairment. An impairment loss is recognized when there has been a loss in value of the affiliate that is other‑than-temporary. Use of Estimates in Preparation of Financial Statements The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amount of income (loss) reported for the period. Actual results could materially differ from estimates. Significant estimates also included the allowances for doubtful accounts, income taxes, including the valuation of deferred tax assets, the fair value of liabilities indemnified, the dilutive effect of Telesat stock options (see Note 10) and our pension liabilities. Cash, Cash Equivalents and Restricted Cash As of December 31, 2019, the Company had $259.1 million of cash and cash equivalents. Cash and cash equivalents include liquid investments, primarily money market funds, with maturities of less than 90 days at the time of purchase. Management determines the appropriate classification of its investments at the time of purchase and at each balance sheet date. As of December 31, 2019 and December 31, 2018, the Company had restricted cash of $0.3 million, representing the amount pledged as collateral to the issuer of a standby letter of credit (the “LC”). The LC, which expires in August 2021, has been provided as a guaranty to the lessor of our corporate offices. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the consolidated statement of cash flows (in thousands): December 31, 2019 2018 Cash and cash equivalents $ 259,067 $ 256,947 Restricted cash included in other assets 304 304 Cash, cash equivalents and restricted cash shown in the statement of cash flows $ 259,371 $ 257,251 Concentration of Credit Risk Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents and receivables. Our cash and cash equivalents are maintained with high-credit-quality financial institutions. As of December 31, 2019 and December 31, 2018, our cash and cash equivalents were invested primarily in several liquid Prime and Government AAA money market funds. Such funds are not insured by the Federal Deposit Insurance Corporation. The dispersion across funds reduces the exposure of a default at any one fund. As a result, management believes that its potential credit risks are minimal. Fair Value Measurements U.S. GAAP defines fair value as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants. U.S. GAAP also establishes a fair value hierarchy that gives the highest priority to observable inputs and the lowest priority to unobservable inputs. The three levels of the fair value hierarchy are described below: Level 1: Inputs represent a fair value that is derived from unadjusted quoted prices for identical assets or liabilities traded in active markets at the measurement date. Level 2: Inputs represent a fair value that is derived from quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities, and pricing inputs, other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3: Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. Assets and Liabilities Measured at Fair Value The following table presents our assets and liabilities measured at fair value on a recurring or non-recurring basis (in thousands): December 31, 2019 December 31, 2018, Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Cash and cash equivalents: Money market funds $ 256,915 $ — $ — $ 254,552 $ — $ — Other current assets: Indemnification - Sale of SSL $ — $ — $ 598 $ — $ — $ 2,410 Liabilities Long term liabilities Indemnification - Globalstar do Brasil S.A. $ — $ — $ 145 $ — $ — $ 184 The carrying amount of cash equivalents approximates fair value as of each reporting date because of the short maturity of those instruments. The Company did not have any non-financial assets or non-financial liabilities that were recognized or disclosed at fair value as of December 31, 2019 and December 31, 2018. Assets and Liabilities Measured at Fair Value on a Non-recurring Basis We review the carrying values of our equity method investments when events and circumstances warrant and consider all available evidence in evaluating when declines in fair value are other-than-temporary. The fair values of our investments are determined based on valuation techniques using the best information available and may include quoted market prices, market comparables and discounted cash flow projections. An impairment charge is recorded when the carrying amount of the investment exceeds its current fair value and is determined to be other-than-temporary. The asset resulting from the indemnification of SSL is for certain pre-closing taxes and reflects the excess of payments since inception over refunds and the estimated remaining liability, which was originally determined using the fair value objective approach. The estimated liability for indemnifications relating to Globalstar do Brasil S.A. (“GdB”), originally determined using expected value analysis, is net of payments since inception. Contingencies Contingencies by their nature relate to uncertainties that require management to exercise judgment both in assessing the likelihood that a liability has been incurred as well as in estimating the amount of potential loss, if any. We accrue for costs relating to litigation, claims and other contingent matters when such liabilities become probable and reasonably estimable. Such estimates may be based on advice from third parties or on management’s judgment, as appropriate. Actual amounts paid may differ from amounts estimated, and such differences will be charged to operations in the period in which the final determination of the liability is made. Income Taxes Loral and its subsidiaries are subject to U.S. federal, state and local income taxation on their worldwide income and foreign taxation on certain income from sources outside the United States. Telesat is subject to tax in Canada and other jurisdictions, and Loral will provide in each period any additional U.S. current and deferred tax required on actual or deemed distributions from Telesat, including Global Intangible Low Taxed Income (“GILTI”). Deferred income taxes reflect the future tax effect of temporary differences between the carrying amount of assets and liabilities for financial and income tax reporting and are measured by applying anticipated statutory tax rates in effect for the year during which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent it is more likely than not that the deferred tax assets will not be realized. The tax benefit of an uncertain tax position (“UTP”) taken or expected to be taken in income tax returns is recognized only if it is “more likely than not” to be sustained on examination by the taxing authorities, based on its technical merits as of the reporting date. The tax benefit recognized in the financial statements from such a position is measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties related to income taxes in income tax expense on a quarterly basis. The unrecognized tax benefit of a UTP is recognized in the period when the UTP is effectively settled. Previously recognized tax positions are derecognized in the first period in which it is no longer more likely than not that the tax position would be sustained upon examination. Earnings per Share Basic earnings per share are computed based upon the weighted average number of shares of voting and non-voting common stock outstanding during each period. Shares of non-voting common stock are in all respects identical to and treated equally with shares of voting common stock except for the absence of voting rights (other than as provided in Loral’s Amended and Restated Certificate of Incorporation which was ratified by Loral’s stockholders on May 19, 2009). Diluted earnings per share are based on the weighted average number of shares of voting and non-voting common stock outstanding during each period, adjusted for the effect of unvested or unconverted restricted stock units. For diluted earnings per share, earnings are adjusted for the dilutive effect of Telesat stock options and restricted share units. Additional Cash Flow Information The following represents non-cash activities and supplemental information to the consolidated statements of cash flows (in thousands): Year Ended December 31, 2019 2018 Non-cash operating items Equity in net (income) loss of affiliates $ (101,403) $ 24,412 Deferred taxes 2,987 9,030 Depreciation 15 26 Right-of-use asset, net of lease liability 9 — Amortization of prior service credit and actuarial loss 1,008 1,071 Net non-cash operating items – continuing operations $ (97,384) $ 34,539 Supplemental information: Interest paid – continuing operations $ 24 $ 26 Income tax refunds $ 5,547 $ 8,619 Income tax payments $ 288 $ 264 Recent Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans. The amendments in ASU No. 2018-14 remove certain disclosures that are no longer considered cost beneficial, clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant to improve effectiveness of disclosures related to employer sponsored defined benefit or other postretirement plans. The new guidance is effective for the Company on January 1, 2021, with earlier application permitted in any interim or annual period. The amendments in this ASU are applied on a retrospective basis to all periods presented. The Company early adopted the new guidance in the fourth quarter of 2018 by providing the required additional disclosures for all periods presented (see Note 11). In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. ASU No. 2018-13 eliminates, amends, and adds disclosure requirements to improve the effectiveness of fair value measurement disclosures. While certain amendments are to be applied prospectively, all other amendments are to be applied retrospectively to all periods presented. The new guidance is effective for the Company on January 1, 2020, with earlier application permitted. We will adopt the new guidance in the first quarter of 2020. While we continue to assess the potential impact of the new guidance, we do not expect it to have a material effect on our consolidated financial statements. In February 2016, the FASB amended the Accounting Standards Codification (“ASC”) by creating ASC Topic 842, Leases (“ASC 842”). ASC Topic 842 requires a lessee to record a right-of-use asset and a lease liability for all leases with a lease term greater than 12 months. The main difference between previous U.S. GAAP and ASC Topic 842 is the recognition under ASC 842 of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. The new guidance was effective for the Company on January 1, 2019. We adopted ASC 842 in the first quarter of 2019 utilizing the modified retrospective method with a practical expedient through a cumulative-effect adjustment at the beginning of the first quarter of 2019. As a result, on January 1, 2019, we recognized a right-of-use asset and lease liability for an operating lease of approximately $0.3 million on our consolidated balance sheet. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | 3. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of tax, are as follows (in thousands): Equity in Pension and Telesat-related Accumulated Other Other Other Post-retirement Comprehensive Comprehensive Benefits Loss Loss Balance, January 1, 2018 $ (16,454) $ (20,824) $ (37,278) Other comprehensive income before reclassification 953 22,033 22,986 Amounts reclassified from accumulated other comprehensive loss 845 — 845 Net current-period other comprehensive income 1,798 22,033 23,831 Tax Cuts and Jobs Act, reclassification of tax effect from accumulated other comprehensive loss to accumulated deficit — (4,173) (4,173) Balance, December 31, 2018 (14,656) (2,964) (17,620) Other comprehensive loss before reclassification: Prior periods (see Note 5) — (22,050) (22,050) Current period (2,307) (13,733) (16,040) Other comprehensive loss before reclassification (2,307) (35,783) (38,090) Amounts reclassified from accumulated other comprehensive loss 796 — 796 Net current-period other comprehensive loss (1,511) (35,783) (37,294) Balance, December 31, 2019 $ (16,167) $ (38,747) $ (54,914) The components of other comprehensive (loss) income and related tax effects are as follows (in thousands): Before-Tax Tax Net-of-Tax Year ended December 31, 2019 Pension and other post-retirement benefits: Net actuarial loss and prior service credits $ (2,921) $ 614 $ (2,307) Amortization of prior service credits and net actuarial loss 1,008 ( a ) (212) 796 Pension and other post-retirement benefits: (1,913) 402 (1,511) Equity in Telesat-related other comprehensive loss: Prior periods (See Note 5) (22,056) 6 (22,050) Current period (13,737) 4 (13,733) Equity in Telesat-related other comprehensive loss (35,793) 10 (b) (35,783) Other comprehensive loss $ (37,706) $ 412 $ (37,294) Year ended December 31, 2018 Pension and other post-retirement benefits: Net actuarial gain and prior service credits $ 1,208 $ (255) $ 953 Amortization of prior service credits and net actuarial loss 1,071 (a) (226) 845 Pension and other post-retirement benefits: 2,279 (481) 1,798 Equity in Telesat-related other comprehensive income 22,033 — (b) 22,033 Other comprehensive income $ 24,312 $ (481) $ 23,831 (a) Reclassifications are included in other expenses. (b) See Note 7, Income Taxes |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2019 | |
Other Current Assets [Abstract] | |
Other Current Assets | 4. Other Current Assets Other current assets consist of (in thousands): December 31, 2019 2018 Indemnification receivable from SSL for pre-closing taxes (see Note 13) $ 598 $ 2,410 Due from affiliates 186 161 Prepaid expenses 164 151 Other 374 510 $ 1,322 $ 3,232 |
Investments in Affiliates
Investments in Affiliates | 12 Months Ended |
Dec. 31, 2019 | |
Investments in Affiliates [Abstract] | |
Investments in Affiliates | 5. Investments in Affiliates Investments in affiliates consist of (in thousands): December 31, 2019 2018 Telesat $ 90,184 $ 24,574 Equity in net income (loss) of affiliates consists of (in thousands): Year Ended December 31, 2019 2018 Telesat $ 101,403 $ (24,412) Telesat As of December 31, 2019, we held a 62.7% economic interest and a 32.6% voting interest in Telesat. We use the equity method of accounting for our majority economic interest in Telesat because we own 32.6% of the voting stock and do not exercise control by other means to satisfy the U.S. GAAP requirement for treatment as a consolidated subsidiary. We have also concluded that Telesat is not a variable interest entity for which we are the primary beneficiary. Loral’s equity in net income or loss of Telesat is based on our proportionate share of Telesat’s results in accordance with U.S. GAAP and in U.S. dollars. Our proportionate share of Telesat’s net income or loss is based on our economic interest as our holdings consist of common stock and non-voting participating preferred shares that have all the rights of common stock with respect to dividends, return of capital and surplus distributions, but have no voting rights. In addition to recording our share of equity in net income (loss) of Telesat, we also recorded our share of equity in other comprehensive (loss) income of Telesat of $(35.8) million and $22.0 million for the years ended December 31, 2019 and 2018, respectively. In the third quarter of 2019, we recorded an out-of-period correction to decrease our investment in Telesat and increase other comprehensive loss by $22.1 million. This non-cash adjustment was made to record the cumulative translation adjustment on our investment in Telesat from November 2007, when we first acquired our ownership interest in Telesat, to December 31, 2018. The adjustment resulted from translating our share of Telesat’s equity from Canadian dollars to U.S. dollars at historical foreign exchange rates in accordance with ASC 830, Foreign Currency Matters, as required by ASC 323, Investments – Equity Method and Joint Ventures . Previously, we translated our share of Telesat’s equity from Canadian dollars to U.S. dollars at current foreign exchange rates at each balance sheet date. This adjustment had no effect on our equity in net income (loss) of Telesat for any current or prior reporting period. The Company has not revised its financial statements for prior periods for this adjustment based on its belief that the effect of such adjustment is not material to the financial statements taken as a whole. On January 1, 2019, Telesat adopted ASC 842, Leases, for its U.S. GAAP reporting which we use to record our equity income in Telesat. Telesat adopted the new guidance using the modified retrospective approach with the cumulative effect of initially applying the standard being recorded on the balance sheet. As a result, on January 1, 2019, Telesat recognized a right-of-use asset of $19.6 million and lease liability of $20.0 million on its consolidated balance sheet. Comparative summary financial information of Telesat presented below has not been restated and continues to be reported under the accounting standards in effect for those periods presented. On January 1, 2018, Telesat adopted ASC 606, Revenue from Contracts with Customers, for its U.S. GAAP reporting which we use to record our equity income in Telesat. Telesat adopted the new standard using the modified retrospective approach with a cumulative effect adjustment to reduce Telesat’s retained earnings by $42.2 million. As a result, we recorded our share of the cumulative effect adjustment by reducing our investment in Telesat by $26.5 million and increasing our accumulated deficit by $26.5 million. On January 1, 2018, Telesat adopted ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Costs, for its U.S. GAAP reporting. Adoption of the new guidance did not affect Telesat’s previously reported financial position or net income. On October 11, 2019, Telesat issued $550.0 million of 6.5% senior notes maturing in October 2027. The 6.5% senior notes are effectively subordinated to Telesat’s secured indebtedness, including the obligations under its senior secured credit facilities and its 4.875% senior secured notes. On October 11, 2019, Telesat used the net proceeds from the 6.5% senior notes offering together with available cash on hand to redeem its $500 million 8.875% senior notes due November 15, 2024 by repaying all outstanding amounts, including principal, redemption premium and discounted interest to November 15, 2019. On December 6, 2019, Telesat entered into amended senior secured credit facilities which provide for term loan borrowings of $1,908.5 million which mature in December 2026 and revolving credit facilities of up to $200 million (or Canadian dollar equivalent) which mature in December 2024. Telesat also issued, through a private placement, $400 million of 4.875% senior secured notes which mature in June 2027. On December 6, 2019, Telesat repaid all outstanding amounts, including related fees and expenses, under its former senior secured credit facilities. In March 2018, Telesat made a $50 million voluntary payment on the U.S. TLB Facility. In April 2018, Telesat amended the former senior secured credit facilities, resulting in a reduction of the margin on the U.S. TLB Facility to 2.5% from 3.0%. The ability of Telesat to pay dividends or certain other restricted payments in cash to Loral is governed by applicable covenants in Telesat’s debt and shareholder agreements. Telesat’s credit agreement governing its senior secured credit facilities limits, among other items, Telesat’s ability to incur debt and make dividend payments if the total leverage ratio (“Total Leverage Ratio”) is above 4.50:1.00, with certain exceptions. As of December 31, 2019, Telesat’s Total Leverage Ratio was 4.63:1.00. Telesat is, however, permitted to pay annual consulting fees of $5 million to Loral in cash (see Note 14). The contribution of Loral Skynet, a wholly owned subsidiary of Loral prior to its contribution to Telesat in 2007, was recorded by Loral at the historical book value of our retained interest combined with the gain recognized on the contribution. However, the contribution was recorded by Telesat at fair value. Accordingly, the amortization of Telesat fair value adjustments applicable to the Loral Skynet assets and liabilities is proportionately eliminated in determining our share of the net income or losses of Telesat. Our equity in net income or loss of Telesat also reflects amortization of profits eliminated, to the extent of our economic interest in Telesat, on satellites we constructed for Telesat while we owned SSL and on Loral’s sale to Telesat in April 2011 of its portion of the payload on the ViaSat‑1 satellite and related assets. The following table presents summary financial data for Telesat in accordance with U.S. GAAP, for the years ended December 31, 2019 and 2018 and as of December 31, 2019 and 2018 (in thousands): Year Ended December 31, 2019 2018 Statement of Operations Data: Revenues $ 687,868 $ 699,596 Operating expenses (129,770) (137,400) Depreciation, amortization and stock-based compensation (212,282) (205,451) Other operating (expense) income (649) 576 Operating income 345,167 357,321 Interest expense (186,394) (176,873) Loss on refinancing (86,166) — Foreign exchange gain (loss) 122,002 (203,005) (Loss) gain on financial instruments (42,039) 15,795 Other income 16,360 11,335 Income tax provision (12,741) (45,423) Net income (loss) $ 156,189 $ (40,850) December 31, 2019 2018 Balance Sheet Data: Current assets $ 877,294 $ 628,125 Total assets 4,130,337 3,942,847 Current liabilities 124,217 139,401 Long-term debt, including current portion 2,836,700 2,764,599 Total liabilities 3,504,594 3,474,504 Shareholders’ equity 625,743 468,343 Other We own 56% of XTAR, a joint venture between us and Hisdesat Servicios Estrategicos, S.A. (“Hisdesat”) of Spain. We account for our ownership interest in XTAR under the equity method of accounting because we do not control certain of its significant operating decisions. We have also concluded that XTAR is not a variable interest entity for which we are the primary beneficiary. As of December 31, 2019 and 2018, the carrying value of our investment in XTAR was zero. Beginning January 1, 2016, we discontinued providing for our allocated share of XTAR’s net losses as our investment was reduced to zero and we have no commitment to provide further financial support to XTAR. XTAR owns and operates an X-band satellite, XTAR-EUR, located at 29° E.L., which is designed to provide X-band communications services exclusively to United States, Spanish and allied government users throughout the satellite’s coverage area, including Europe, the Middle East and Asia. XTAR also leases 7.2 72MHz X-band transponders on the Spainsat satellite located at 30° W.L., owned by Hisdesat. These transponders, designated as XTAR-LANT, provide capacity to XTAR for additional X-band services and greater coverage and flexibility. As of December 31, 2019 and 2018, the Company also held an indirect ownership interest in a foreign company that currently serves as the exclusive service provider for Globalstar service in Mexico. The Company accounts for this ownership interest using the equity method of accounting. As of December 31, 2019 and 2018, the carrying value of this investment was zero. Loral has written-off its investment in this company and has no future funding requirements relating to this investment. Accordingly, there is no requirement for us to provide for our allocated share of this company’s net losses. This company is currently in the process of dissolution and liquidation in Mexico, and Loral believes that it will not have any liability associated with this company upon completion of this process. |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Current Liabilities [Abstract] | |
Other Current Liabilities | 6. Other Current Liabilities Other current liabilities consists of (in thousands): December 31, 2019 2018 Operating lease liability 652 — Due to affiliate $ 5 $ 164 Accrued professional fees 1,419 1,206 Pension and other post-retirement liabilities 77 69 Income taxes payable 673 — Accrued liabilities 57 56 $ 2,883 $ 1,495 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | 7. Income Taxes The following summarizes our income tax (provision) benefit (in thousands): Year Ended December 31, 2019 2018 Current: U.S. federal $ (2,918) $ 47,761 State and local 2 867 Foreign (250) (250) Total current (3,166) 48,378 Deferred: U.S. federal (2,990) (9,036) State and local 3 6 Total deferred (2,987) (9,030) Total income tax (provision) benefit $ (6,153) $ 39,348 Our current income tax (provision) benefit includes an (increase) decrease to our liability for UTPs for (in thousands): Year Ended December 31, 2019 2018 Unrecognized tax benefits $ (2,467) $ 41,115 Interest expense (1,570) 6,752 Total $ (4,037) $ 47,867 The deferred income tax provision for each period includes the impact of equity in net income (loss) of affiliates in our consolidated statement of operations and the periodic effect of our accounting for GILTI. After utilization of our net operating loss (“NOL”) carryforward and allowable tax credits, there was no federal income tax on GILTI from Telesat. For 2018, the statute of limitations for the assessment of additional tax expired with regard to certain of our federal UTPs. As a result, the reduction to our liability for UTPs provided a current tax benefit including the reversal of previously recognized interest, partially offset by an additional provision for the potential payment of interest on our remaining UTPs. Public Law 117-97, known as the “Tax Cuts and Jobs,” Act made broad and complex changes to the U.S tax code first effective in 2018 including, but not limited to, (1) eliminating U.S federal income taxes on dividends from certain foreign investments, such as Telesat; (2) requiring a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations, including Telesat, as part of GILTI; (3) limiting the use of foreign tax credits (“FTCs”) to reduce U.S. federal tax liability; (4) creating the base erosion anti-abuse tax, a new minimum tax; (5) creating a new limit on deductible interest expense; and (6) changing the rules related to the use of NOL carryforwards created in tax years beginning after December 31, 2017. During 2018, in accordance with SAB 118, we recognized the income tax effects of additional regulatory guidance issued by the U.S. Treasury and Internal Revenue Service on various provisions of the Tax Cuts and Jobs Act. Based upon our interpretation of this guidance, we determined that, after the utilization of allowable tax credits, federal income tax imposed on the future recognition of GILTI from Telesat will be zero. Since we anticipate that our deferred tax assets related to the investment in Telesat will be realized from the future recognition of GILTI, the federal portion of these deferred tax assets are valued at zero. Therefore, as of December 31, 2018, we reduced deferred tax assets by $1.5 million with a corresponding increase to our deferred income tax provision. In addition to the income tax (provision) benefit presented above, we also recorded the following items (in thousands): Year Ended December 31, 2019 2018 Tax benefit on loss from discontinued operations $ — $ 16 Deferred tax benefit (provision) for adjustments in other comprehensive loss (see Note 3) 412 (481) The (provision) benefit for income taxes differs from the amount computed by applying the statutory U.S. federal income tax rate on the loss from continuing operations before income taxes and equity in net income (loss) of affiliates because of the effect of the following items (dollars in thousands): Year Ended December 31, 2019 2018 U.S. Statutory Federal Corporate Income Tax Rate 21% 21% Tax benefit $ 1,154 $ 1,104 Permanent adjustments which change statutory amounts: State and local income taxes, net of federal income tax 107 666 Equity in net income (loss) of affiliates (5,055) (6,241) Federal (provision) benefit for unrecognized tax benefits (1,226) 46,534 Nondeductible expenses (695) (957) Change in valuation allowance (118) (4,329) Income tax credits — 4,554 Foreign income taxes (250) (250) Effect of U.S. tax law changes — (1,542) Other, net (70) (191) Total income tax (provision) benefit $ (6,153) $ 39,348 The following table summarizes the activity related to our unrecognized tax benefits (in thousands): Year Ended December 31, 2019 2018 Balance at January 1 $ 43,055 $ 70,410 Decreases as a result of statute expirations (18) (27,355) Balance at December 31 $ 43,037 $ 43,055 With few exceptions, the Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities for years prior to 2014. Earlier years related to certain foreign jurisdictions remain subject to examination. To the extent allowed by law, the tax authorities may have the right to examine prior periods where NOLs were generated and carried forward, and make adjustments up to the amount of the NOL carryforward. While we intend to contest any future tax assessments for uncertain tax positions, no assurance can be provided that we would ultimately prevail. Our liability for UTPs increased from $13.3 million at December 31, 2018 to $17.4 million at December 31, 2019 and is included in long-term liabilities in the consolidated balance sheets. At December 31, 2019, we have accrued $2.0 million for the potential payment of tax-related interest. If our positions are sustained by the taxing authorities, approximately $7.3 million of the tax benefits will reduce the Company’s income tax provision from continuing operations. Other than as described above, there were no significant changes to our unrecognized tax benefits during the year ended December 31, 2019, and we do not anticipate any other significant increases or decreases to our unrecognized tax benefits during the next twelve months. At December 31, 2019, we had federal FTC carryforwards of $109.6 million, federal NOL carryforwards of $95.3 million and New York NOL carryforwards of $1.5 million which expire from 2022 to 2034. The reorganization of the Company pursuant to emergence from Chapter 11 of the federal bankruptcy laws during 2005 constituted an ownership change under section 382 of the Internal Revenue Code. Accordingly, use of our tax attributes, such as NOLs and tax credits generated prior to the ownership change, are subject to an annual limitation of approximately $32.6 million, subject to increase or decrease based on certain factors. We assess the recoverability of our FTCs, NOLs and other deferred tax assets and based upon this analysis, record a valuation allowance to the extent recoverability does not satisfy the “more likely than not” recognition criteria. We continue to maintain our valuation allowance until sufficient positive evidence exists to support full or partial reversal. As of December 31, 2019, we had a valuation allowance totaling $128.5 million against our deferred tax assets for certain tax credits, primarily FTC carryovers from 2017, and loss carryovers due to the limited carryforward periods. During 2019, the valuation allowance increased by $0.1 million, which was recorded as a provision to continuing operations in our statement of operations. To the extent that profitability from operations is not sufficient to realize the benefit from our remaining net deferred tax assets, we would generate sufficient taxable income from the appreciated value of our Telesat investment in order to prevent federal net operating losses from expiring and realize the benefit of all remaining deferred tax assets. During 2018, the valuation allowance increased by $4.3 million, which was recorded as a provision to continuing operations in our statement of operations. The significant components of the net deferred income tax assets are (in thousands): December 31, 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 34,294 $ 36,875 Foreign tax credit carryforwards 126,007 126,007 Compensation and benefits 961 953 Indemnification liabilities 66 216 Other, net 305 219 Federal benefit of uncertain tax positions 428 98 Pension costs 3,375 3,157 Investments in and advances to affiliates 992 1,360 Total deferred tax assets before valuation allowance 166,428 168,885 Less valuation allowance (128,483) (128,365) Deferred tax assets $ 37,945 $ 40,520 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities [Abstract] | |
Other Liabilities | 8. Other Liabilities Other liabilities consists of (in thousands): December 31, 2019 2018 Operating lease liability $ 345 $ — Indemnification liabilities - other (see Note 13) 145 184 Liabilities for uncertain tax positions 17,352 13,315 $ 17,842 $ 13,499 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 9. Stock-Based Compensation Stock Plans The Loral amended and restated 2005 stock incentive plan (the “Stock Incentive Plan”) which allowed for the grant of several forms of stock-based compensation awards including stock options, stock appreciation rights, restricted stock, restricted stock units, stock bonuses and other stock-based awards, had a ten-year term and has expired. The Company granted 75,262 restricted stock units under the Stock Incentive Plan that do not expire and remained unconverted as of December 31, 2019 and December 31, 2018. As of December 31, 2019, there is no unrecognized compensation cost related to non-vested awards. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 10. Earnings Per Share Telesat has awarded employee stock options, which, if exercised, would result in dilution of Loral’s ownership interest in Telesat to approximately 62.3%. The following table presents the dilutive impact of Telesat stock options on Loral’s reported income from continuing operations for the purpose of computing diluted earnings per share (in thousands): Year Ended December 31, 2019 2018 Income from continuing operations — basic $ 89,755 $ 9,677 Less: Adjustment for dilutive effect of Telesat stock options (528) — Income from continuing operations — diluted $ 89,227 $ 9,677 Telesat stock options are excluded from the calculation of diluted loss per share for the year ended December 31, 2018 as the effect would be antidilutive. Basic earnings per share is computed based upon the weighted average number of shares of voting and non-voting common stock outstanding. The following is the computation of common shares outstanding for diluted earnings per share (in thousands): Year Ended December 31, 2019 2018 Weighted average common shares outstanding 30,933 30,933 Unconverted restricted stock units 75 75 Common shares outstanding for diluted earnings per share 31,008 31,008 |
Pensions and Other Employee Ben
Pensions and Other Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Pensions and Other Employee Benefit Plans [Abstract] | |
Pensions and Other Employee Benefit Plans | 11. Pensions and Other Employee Benefit Plans Pensions We maintain a qualified defined benefit pension plan to which members may contribute in order to receive enhanced pension benefits. Employees hired after June 30, 2006 do not participate in the defined benefit pension plan, but participate in our defined contribution savings plan with an additional Company contribution. Benefits are based primarily on members’ compensation and/or years of service. Our funding policy is to fund the qualified pension plan in accordance with the Internal Revenue Code and regulations thereon. Plan assets are generally invested in equity, fixed income and real asset investments. Pension plan assets are managed primarily by Russell Investment Corp. (“Russell”), which allocates the assets into funds as we direct. Other Benefits In addition to providing pension benefits, we provide certain health care and life insurance benefits for retired employees and dependents. For the years ended December 31, 2019 and 2018 certain of these benefits were provided through plans sponsored or managed by Telesat. Participants are eligible for these benefits generally when they retire from active service and meet the eligibility requirements for our pension plan. These benefits are funded primarily on a pay-as-you-go basis, with the retiree generally paying a portion of the cost through contributions, deductibles and coinsurance provisions. Medical coverage for retired employees and dependents ends when the retiree reaches age 65. Funded Status The following tables provide a reconciliation of the changes in the plans’ benefit obligations and fair value of assets for 2019 and 2018, and a statement of the funded status as of December 31, 2019 and 2018. We use a December 31 measurement date for the pension plan and other post-retirement benefits (in thousands). Pension Benefits Other Benefits Year Ended December 31, Year Ended December 31, 2019 2018 2019 2018 Reconciliation of benefit obligation: Obligation at beginning of period $ 49,020 $ 53,976 $ 479 $ 519 Service cost 722 715 — 1 Interest cost 2,018 1,855 21 18 Participant contributions 25 27 — 15 Actuarial loss (gain) 5,256 (5,725) 30 (36) Benefit payments (1,882) (1,828) (19) (38) Obligation at December 31, 55,159 49,020 511 479 Reconciliation of fair value of plan assets: Fair value of plan assets at beginning of period 34,263 35,640 — — Actual return on plan assets 4,798 (1,925) — — Employer contributions 942 2,349 19 23 Participant contributions 25 27 — 15 Benefit payments (1,882) (1,828) (19) (38) Fair value of plan assets at December 31, 38,146 34,263 — — Funded status at end of period $ (17,013) $ (14,757) $ (511) $ (479) The benefit obligations for pensions and other employee benefits exceeded the fair value of plan assets by $17.5 million at December 31, 2019 (the “unfunded benefit obligations”). The unfunded benefit obligations were measured using a discount rate of 3.25% and 4.25% at December 31, 2019 and 2018, respectively. For the year ended December 31, 2019, the actuarial loss component of the change in benefit obligation of $5.3 million for the pension plan comprises $6.7 million attributable to the change in the discount rate partially offset by $1.4 million attributable to other factors. For the year ended December 31, 2018, the actuarial gain component of the change in benefit obligation of $5.7 million for the pension plan comprises $5.1 million attributable to the change in the discount rate and $0.6 million attributable to other factors. Lowering the discount rate by 0.5% would have increased the unfunded benefit obligations for pension and other post-retirement benefits by approximately $3.7 million and $3.4 million as of December 31, 2019 and 2018, respectively. Market conditions and interest rates will significantly affect future assets and liabilities of Loral’s pension plan and other post-retirement benefits. The pre-tax amounts recognized in accumulated other comprehensive loss as of December 31, 2019 and 2018 consist of (in thousands): Pension Benefits Other Benefits December 31, December 31, 2019 2018 2019 2018 Actuarial loss $ (18,613) $ (16,728) $ (32) $ (4) The amounts recognized in other comprehensive (loss) income during the years ended December 31, 2019 and 2018 consist of (in thousands): Year Ended December 31, 2019 2018 Pension Other Pension Other Actuarial (loss) gain during the period $ (2,891) $ (30) $ 1,172 $ 36 Amortization of actuarial loss 1,006 2 1,041 8 Amortization of prior service cost — — — 22 Total recognized in other comprehensive (loss) income $ (1,885) $ (28) $ 2,213 $ 66 Amounts recognized in the balance sheet consist of (in thousands): Pension Benefits Other Benefits December 31, December 31, 2019 2018 2019 2018 Current Liabilities $ — $ — $ 77 $ 69 Long-Term Liabilities 17,013 14,757 434 410 $ 17,013 $ 14,757 $ 511 $ 479 The accumulated pension benefit obligation was $54.2 million and $48.2 million at December 31, 2019 and 2018, respectively. During 2019, we contributed $0.9 million to the qualified pension plan and our contributions for the other employee post-retirement benefits were not significant. During 2020, based on current estimates, we expect our contributions to the qualified pension plan will be approximately $2.7 million. We expect that our funding of other employee post-retirement benefits during 2020 will not be significant. The following table provides the components of net periodic cost included in income from continuing operations for the plans for the years ended December 31, 2019 and 2018 (in thousands): Pension Benefits Other Benefits Year Ended December 31, Year Ended December 31, 2019 2018 2019 2018 Service cost (1) $ 722 $ 715 $ — $ 1 Interest cost (2) 2,018 1,855 21 18 Expected return on plan assets (2) (2,432) (2,628) — — Amortization of prior service cost (2) — — — 22 Amortization of net actuarial loss (2) 1,006 1,041 2 8 Net periodic cost $ 1,314 $ 983 $ 23 $ 49 (1) Included in general and administrative expenses. (2) Included in other expense. Assumptions Assumptions used to determine net periodic cost: Year Ended December 31, 2019 2018 Discount rate Expected return on plan assets Rate of compensation increase Assumptions used to determine the benefit obligation: December 31, 2019 2018 Discount rate Rate of compensation increase The expected long-term rate of return on pension plan assets is selected by taking into account the expected duration of the projected benefit obligation for the plans, the asset mix of the plans and the fact that the plan assets are actively managed to mitigate risk. Our expected long-term rate of return on plan assets for 2020 is 7.00%. As of December 31, 2019 and 2018, the Company contributions remaining for other benefits were primarily for fixed amounts. Therefore, future health care cost trend rates will not affect Company costs and accumulated post-retirement benefit obligation. Plan Assets The Company has established the pension plan as a retirement vehicle for participants and as a funding vehicle to secure promised benefits. The investment goal is to provide a total return that over time will earn a rate of return to satisfy the benefit obligations given investment risk levels, contribution amounts and expenses. The pension plan invests in compliance with the Employee Retirement Income Security Act 1974, as amended (“ERISA”), and any subsequent applicable regulations and laws. The Company has adopted an investment policy for the management and oversight of the pension plan. It sets forth the objectives for the pension plan, the strategies to achieve these objectives, procedures for monitoring and control and the delegation of responsibilities for the oversight and management of pension plan assets. The Company’s Board of Directors has delegated primary fiduciary responsibility for pension assets to an investment committee. In carrying out its responsibilities, the investment committee establishes investment policy, makes asset allocation decisions, determines asset class strategies and retains investment managers to implement asset allocation and asset class strategy decisions. It is responsible for the investment policy and may amend such policy from time to time. Pension plan assets are invested in various asset classes in what we believe is a prudent manner for the exclusive purpose of providing benefits to participants. U.S. equities are held for their long-term expected return premium over fixed income investments and inflation. Non-U.S. equities are held for their expected return premium (along with U.S. equities), as well as diversification relative to U.S. equities and other asset classes. Fixed income investments are held for diversification relative to equities. Real assets are held for diversification relative to equities and fixed income. Alternative investments are held for both diversification and higher returns than those typically available in traditional asset classes. Asset allocation policy is the principal method for achieving the pension plan’s investment objectives stated above. Asset allocation policy is reviewed regularly by the investment committee. The pension plan’s actual and targeted asset allocations, are as follows: December 31, 2019 Target Allocation Actual Allocation Target Target Range Liquid return-seeking investments 45-65% Alternative investments 0-20% Fixed income investments 20-40% The target allocation within the liquid return-seeking portfolio is 75% global equities, 15% marketable real assets and 10% fixed income. Allocations may vary by up to 5% from these targets. The pension plan’s assets are actively managed using a multi-asset, multi-style, multi-manager investment approach. Portfolio risk is controlled through this diversification process and monitoring of money managers. Consideration of such factors as differing rates of return, volatility and correlation are utilized in the asset and manager selection process. Diversification reduces the impact of losses in single investments. Performance results and fund accounting are provided to the Company by Russell on a monthly basis. Periodic reviews of the portfolio are performed by the investment committee with Russell. These reviews typically consist of a market and economic review, a performance review, an allocation review and a strategy review. Performance is judged by investment type against market indexes. Allocation adjustments or fund changes may occur after these reviews. Performance is reported to the Company’s Board of Directors at quarterly board meetings. Fair Value Measurements The values of the fund trusts are calculated using systems and procedures widely used across the investment industry. Generally, investments are valued based on information in financial publications of general circulation, statistical and valuation services, discounted cash flow methodology, records of security exchanges, appraisal by qualified persons, transactions and bona fide offers. The table below provides the fair values of the Company’s pension plan assets, by asset category, at December 31, 2019 and 2018. The Company’s pension plan assets are mainly held in commingled employee benefit fund trusts. Fair Value Measurements Assets Measured Asset Category Total Percentage Level 1 Level 2 Level 3 at NAV (1) (Dollars in thousands) At December 31, 2019 Liquid return-seeking: Multi-asset fund (2) $ 23,127 $ 23,127 Fixed income securities: Commingled funds (3) 11,463 11,463 Alternative investments: Equity long/short fund (4) 1,349 $ 1,349 Private equity fund (5) 48 48 Distressed opportunity limited partnership (6) 463 463 Multi-strategy limited partnership (7) 1,696 1,696 3,556 — — 3,556 — $ 38,146 — — $ 3,556 $ 34,590 At December 31, 2018 Liquid return-seeking: Multi-asset fund (2) $ 20,251 $ 20,251 Fixed income securities: Commingled funds (3) 10,869 10,869 Alternative investments: Equity long/short fund (4) 1,002 $ 1,002 Private equity fund (5) 76 76 Distressed opportunity limited partnership (6) 463 463 Multi-strategy limited partnership (7) 1,602 1,602 3,143 — — 3,143 — $ 34,263 — — $ 3,143 $ 31,120 (1) Assets measured using the net asset value (“NAV”) practical expedient have not been classified in the fair value hierarchy. The NAV practical expedient is based on the fair value of the underlying assets of the common/collective trust (“CCT”) minus its liabilities, and then divided by the number of units outstanding. The NAV practical expedient of a CCT is calculated based on a compilation of primarily observable market information. (2) A single fund that invests in global equities, marketable real assets and fixed income securities. The fund has no limitation on redemptions. (3) Investments in bonds representing many sectors of the broad bond market with both short-term and intermediate-term maturities. The fund has no limitation on redemptions. (4) Investments primarily in long and short positions in equity securities of U.S. and non-U.S. companies. The fund generally has semi-annual tender offer redemption periods on June 30 and December 31 and is reported on a one month lag. (5) Fund invests in portfolios of secondary interest in established venture capital, buyout, mezzanine and special situation funds on a global basis. Fund is valued on a quarterly lag with adjustment for subsequent cash activity. The fund terminates on July 12, 2020, subject to extension for up to two one-year periods. Earlier redemptions are not permitted. (6) Investments mainly in discounted debt securities, bank loans, trade claims and other debt and equity securities of financially troubled companies. This partnership has semi-annual withdrawal rights on June 30 and December 31 with notice of 90 days and is reported on a one month lag. (7) Investments in a partnership that has a multi-strategy investment program and does not rely on a single investment model. This partnership has quarterly redemption rights with notice of 65 days and is reported on a one month lag. Additional information pertaining to the changes in the fair value of the pension plan assets classified as Level 3 for the years ended December 31, 2019 and 2018 is presented below: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Private Equity Distressed Partnership Multi Total (In thousands) Balance, January 1, 2018 $ 83 $ 1,067 $ 504 $ 1,572 $ 3,226 Unrealized gain 10 (65) (41) 30 (66) Sales (17) — — — (17) Balance, December 31, 2018 76 1,002 463 1,602 3,143 Unrealized gain (loss) (23) 347 — 94 418 Sales (5) — — — (5) Balance, December 31, 2019 $ 48 $ 1,349 $ 463 $ 1,696 $ 3,556 Both the Equity Long/Short Fund and the Distressed Opportunity Limited Partnership are valued at each month-end based upon quoted market prices by the investment managers. The Multi-Strategy Fund invests in various underlying securities. The fund’s net asset value is calculated by the fund manager and is not publicly available. The fund manager accumulates all the underlying security values and uses them in determining the fund’s net asset value. The private equity fund and limited partnership valuations are primarily based on cost/price of recent investments, earnings/performance multiples, net assets, discounted cash flows, comparable transactions and industry benchmarks. The annual audited financial statements of all funds are reviewed by the Company. Benefit Payments The following benefit payments, which reflect future services, as appropriate, are expected to be paid (in thousands): Pension Other 2020 $ 2,103 $ 78 2021 2,267 68 2022 2,368 58 2023 2,527 50 2024 2,770 41 2025 to 2029 14,831 128 Employee Savings (401k) Plan We have an employee savings (401k) plan, to which the Company provides contributions which match up to 6% of a participant’s base salary at a rate of 66⅔%. The Company also makes retirement contributions to the savings (401k) plan, which provide added retirement benefits to employees hired on or after July 1, 2006, as they are not eligible to participate in our defined benefit pension plan. Retirement contributions are provided regardless of an employee’s contribution to the savings (401k) plan. Matching contributions and retirement contributions are collectively known as Company contributions. Company contributions are made in cash and placed in each participant’s age appropriate “life cycle” fund. For each of the years ended December 31, 2019 and 2018, Company contributions were $0.1 million. Participants of the savings (401k) plan are able to redirect Company contributions to any available fund within the plan. Participants are also able to direct their contributions to any available fund. |
Financial Instruments, Derivati
Financial Instruments, Derivative Instruments and Hedging | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments, Derivative Instruments and Hedging [Abstract] | |
Financial Instruments, Derivative Instruments and Hedging | 12. Financial Instruments, Derivative Instruments and Hedging Financial Instruments The carrying amount of cash equivalents approximates fair value because of the short maturity of those instruments. Foreign Currency We are subject to the risks associated with fluctuations in foreign currency exchange rates. To limit this foreign exchange rate exposure, we attempt to denominate all contracts in U.S. dollars. Where appropriate, derivatives are used to minimize the risk of foreign exchange rate fluctuations to operating results and cash flows. We do not use derivative instruments for trading or speculative purposes. Derivatives and Hedging Transactions There were no derivative instruments as of December 31, 2019 and 2018. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies Financial Matters In 2012, we sold our former subsidiary, SSL, to MDA Communications Holdings, Inc., a subsidiary of Maxar Technologies Inc. (formerly known as MacDonald, Dettwiler and Associates Ltd.) (“MDA”) pursuant to the Purchase Agreement. Under the terms of the Purchase Agreement, we are obligated to indemnify MDA and its affiliates from liabilities with respect to certain pre-closing taxes. Our consolidated balance sheets include an indemnification refund receivable of $0.6 million and $2.4 million as of December 31, 2019 and 2018, respectively. Certain tax assessments against SSL for 2007 to 2010 have been settled, resulting in our having received during the second and third quarters of 2019 refunds of prior indemnification payments totaling $1.8 million. The remaining receivable as of December 31, 2019 represents payments to date over the estimated fair value of the remaining liability for our indemnification of SSL pre-closing taxes where the final amounts have not yet been determined. Where appropriate, we intend vigorously to contest the underlying tax assessments, but there can be no assurance that we will be successful. Although no assurance can be provided, we do not believe that these tax-related matters will have a material adverse effect on our financial position or results of operations. In connection with the sale in 2008 by Loral and certain of its subsidiaries and DASA Globalstar LLC to Globalstar Inc. of their respective interests in GdB, the Globalstar Brazilian service provider, Loral agreed to indemnify Globalstar Inc. and GdB for certain GdB pre-closing liabilities, primarily related to Brazilian taxes. Our consolidated balance sheets include liabilities of $0.1 million and $0.2 million as of December 31, 2019 and 2018, respectively, for indemnification liabilities relating to the sale of GdB. See Note 14 — Related Party Transactions — Transactions with Affiliates — Telesat for commitments and contingencies relating to our agreement to indemnify Telesat for certain liabilities. Lease Arrangements We lease a facility and certain equipment under agreements expiring at various dates. We may renew, extend or modify a lease covering facilities as needed. We have no sublease income in any of the periods presented. We changed our method of accounting for leases in the first quarter of 2019 due to the adoption of ASC 842. We adopted ASC 842 as of January 1, 2019 using the modified retrospective transition method and elected to apply the transition as of the beginning of the period of adoption. Accordingly, financial information as of and for the year ended December 31, 2019 is presented under ASC 842, whereas the financial information as of and for the year ended December 31, 2018 is presented under ASC 840, Leases. Upon adoption of ASC 842, we recognized a right-of-use asset and lease liability of $0.3 million for an operating lease on our consolidated balance sheet as of January 1, 2019. In March 2019, the operating lease was modified by extending the lease termination date from June 30, 2019 to June 30, 2020 and increasing the rent for the extension period. In December 2019, the operating lease was further modified by extending the lease termination date to June 30, 2021. As a result, the right-of-use asset increased to $1.0 million as of December 31, 2019. The right-of-use asset is being amortized over the life of the lease. Lease costs expensed for the years ended December 31, 2019 and 2018 were as follows (in thousands): Lease Expense Year ended December 31, 2019 $ 677 Year ended December 31, 2018 680 Lease payments for the year ended December 31, 2019 were $0.7 million. The remaining lease term as of December 31, 2019 is 18 months, and we used a discount rate of 7.5% to compute the lease liability at inception and at each modification date. The following is a reconciliation of the future operating lease payments to operating lease liability as of December 31, 2019 (in thousands): 2020 $ 701 2021 350 Total operating lease payments 1,051 Less: Interest (54) Operating lease liability $ 997 Amounts recognized in Balance Sheet Other current liabilities $ 652 Other liabilities 345 $ 997 Legal Proceedings We are not currently subject to any legal proceedings that, if decided adversely, could have a material adverse effect on our financial position or results of operations. In the future, however, we may become subject to legal proceedings and claims, either asserted or unasserted, that may arise in the ordinary course of business or otherwise. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 14. Related Party Transactions MHR Fund Management LLC Mark H. Rachesky, President of MHR Fund Management LLC (“MHR”), and Janet T. Yeung, a principal and the General Counsel of MHR, are members of Loral’s board of directors. Various funds affiliated with MHR and Dr. Rachesky held, as of December 31, 2019 and December 31, 2018, approximately 39.9% of the outstanding voting common stock and 58.4% of the combined outstanding voting and non-voting common stock of Loral. Transactions with Affiliates Telesat As described in Note 5, we own 62.7% of Telesat and account for our ownership interest under the equity method of accounting. In connection with the acquisition of our ownership interest in Telesat (which we refer to as the Telesat transaction), Loral and certain of its subsidiaries, our Canadian co-owner, Public Sector Pension Investment Board (“PSP”) and one of its subsidiaries, Telesat and MHR entered into a Shareholders Agreement (the “Shareholders Agreement”). The Shareholders Agreement provides for, among other things, the manner in which the affairs of Telesat and its subsidiaries will be conducted and the relationships among the parties thereto and future shareholders of Telesat. The Shareholders Agreement also contains an agreement by Loral not to engage in a competing satellite communications business and agreements by the parties to the Shareholders Agreement not to solicit employees of Telesat or any of its subsidiaries. Additionally, the Shareholders Agreement details the matters requiring the approval of the shareholders of Telesat (including veto rights for Loral over certain extraordinary actions) and provides for preemptive rights for certain shareholders upon the issuance of certain capital shares of Telesat. The Shareholders Agreement also (i) restricts the ability of holders of certain shares of Telesat to transfer such shares unless certain conditions are met or approval of the transfer is granted by the directors of Telesat, (ii) provides for a right of first offer to certain Telesat shareholders if a holder of equity shares of Telesat wishes to sell any such shares to a third party and (iii) provides for, in certain circumstances, tag-along rights in favor of shareholders that are not affiliated with Loral if Loral sells equity shares and drag-along rights in favor of Loral in case Loral or its affiliate enters into an agreement to sell all of its Telesat equity securities. In addition, the Shareholders Agreement provides for either PSP or Loral to initiate the process of conducting an initial public offering of the equity shares of Telesat (a “Telesat IPO”). In connection with our exploration of strategic initiatives to alter the status quo in our ownership of Telesat, in July 2015, we exercised our right under the Shareholders Agreement to require Telesat to conduct a Telesat IPO. Specifically, we requested that Telesat issue not more than 25 million newly issued shares of Telesat voting common stock. We also requested the termination of the Shareholders Agreement and the elimination of certain provisions in Telesat’s Articles of Incorporation, both of which we believe are important for a successful public offering. If those provisions are eliminated, an impediment to the conversion of our non-voting Telesat shares to voting shares would be eliminated. Termination or modification of the Shareholders Agreement and conversion of our non-voting shares to voting shares would enable us, after a Telesat IPO and subject to the receipt of any necessary regulatory approvals, to obtain majority voting control of Telesat. To date, we and PSP have not reached agreement on governance matters following a Telesat IPO. In the event a strategic transaction to combine Loral and Telesat into one public company that we are pursuing is not likely to be achievable in a timely manner or on satisfactory terms, we may further pursue our right to a Telesat IPO. There can be no assurance as to whether, when or on what terms a Telesat IPO, termination or modification of the Shareholders Agreement or any requested changes to Telesat’s Articles of Incorporation may occur or that any particular economic, tax, structural or other objectives or benefits with respect to a Telesat IPO will be achieved. If a Telesat IPO is expected to proceed under unfavorable terms or at an unfavorable price, we may withdraw our demand for a Telesat IPO. Depending upon the outcome of discussions with PSP relating to Telesat strategic matters, we may assert certain claims against PSP for actions we believe violated our rights relating to the affairs of Telesat under the Telesat Shareholders Agreement and otherwise. In response to our claims, PSP has informed us that it believes that it may have claims against us, although we are not aware of the legal or factual basis for any such claims. We and PSP have agreed that, pending the outcome of our discussions, it would be beneficial to delay the commencement of any action relating to either party’s claims and have entered into an agreement (the “Tolling Agreement”) which preserves the parties’ rights to assert against one another legal claims relating to Telesat. We also included Telesat as a party to the Tolling Agreement because, as a technical matter of Canadian law and for purposes of potentially seeking equitable relief, Telesat may be a necessary party. There can be no assurance that if the Tolling Agreement lapses that we and PSP will not pursue legal claims against one another relating to Telesat. If we pursue claims against PSP, there can be no assurance that our claims will be successful or that the relief we seek will be granted. If PSP pursues claims against us, there can be no assurance that PSP will not prevail on its claims. Under the Shareholders Agreement, in the event that, except in certain limited circumstances, either (i) ownership or control, directly or indirectly, by Dr. Rachesky of Loral’s voting stock falls below certain levels other than in connection with certain specified circumstances, including an acquisition by a Strategic Competitor (as defined in the Shareholders Agreement) or (ii) there is a change in the composition of a majority of the members of the Loral Board of Directors over a consecutive two-year period without the approval of the incumbent directors, Loral will lose its veto rights relating to certain extraordinary actions by Telesat and its subsidiaries. In addition, after either of these events, PSP will have certain rights to enable it to exit from its investment in Telesat, including a right to cause Telesat to conduct an initial public offering in which PSP’s shares would be the first shares offered or, if no such offering has occurred within one year due to a lack of cooperation from Loral or Telesat, to cause the sale of Telesat and to drag along the other shareholders in such sale, subject to Loral’s right to call PSP’s shares at fair market value. The Shareholders Agreement provides for a board of directors of Telesat consisting of 10 directors, three nominated by Loral, three nominated by PSP and four independent directors to be selected by a nominating committee comprised of one PSP nominee, one nominee of Loral and one of the independent directors then in office. Each party to the Shareholders Agreement is obligated to vote all of its Telesat shares for the election of the directors nominated by the nominating committee. Pursuant to action by the board of directors taken on October 31, 2007, Dr. Rachesky, who is non-executive Chairman of the Board of Directors of Loral, was appointed non-executive Chairman of the Board of Directors of Telesat. In addition, Michael B. Targoff, Loral’s Vice Chairman, serves on the board of directors of Telesat. On October 31, 2007, Loral and Telesat entered into a consulting services agreement (the “Consulting Agreement”). Pursuant to the terms of the Consulting Agreement, Loral provides to Telesat certain non-exclusive consulting services in relation to the business of Loral Skynet which was transferred to Telesat as part of the Telesat transaction as well as with respect to certain aspects of the satellite communications business of Telesat. The Consulting Agreement has a term of seven-years with an automatic renewal for an additional seven-year term if Loral is not then in material default under the Shareholders Agreement. Upon expiration of the initial term on October 31, 2014, the Consulting Agreement was automatically renewed for the additional seven-year term. In exchange for Loral’s services under the Consulting Agreement, Telesat pays Loral an annual fee of $5.0 million, payable quarterly in arrears on the last day of March, June, September and December of each year during the term of the Consulting Agreement. Our general and administrative expenses for each of the years ended December 31, 2019 and 2018, are net of income of $5.0 million related to the Consulting Agreement. Loral received payments in cash from Telesat, net of withholding taxes, of $4.8 million for each of the years ended December 31, 2019 and 2018. In connection with the acquisition of our ownership interest in Telesat in 2007, Loral retained the benefit of tax recoveries related to the transferred assets and indemnified Telesat (“Telesat Indemnification”) for certain liabilities, including Loral Skynet’s tax liabilities arising prior to January 1, 2007. The Telesat Indemnification includes certain tax disputes currently under review in various jurisdictions including Brazil. The Brazilian tax authorities challenged Loral Skynet’s historical characterization of its revenue generated in Brazil for the years 2003 to 2006. Telesat received and challenged, on Loral Skynet’s behalf, tax assessments from Brazil totaling approximately $0.9 million. The Company believes that Loral Skynet’s filing position will ultimately be sustained requiring no payment under the Telesat Indemnification. There can be no assurance that there will be no future claims under the Telesat Indemnification related to tax disputes. Loral’s employees and retirees participate in certain welfare plans sponsored or managed by Telesat. Loral pays Telesat an annual administrative fee of $0.1 million and reimburses Telesat for the plan costs attributable to Loral participants. Loral, along with Telesat, PSP and 4440480 Canada Inc., an indirect wholly-owned subsidiary of Loral (the “Special Purchaser”), entered into stock option grant agreements (the “Stock Option Grant Agreements”) and a restricted stock unit grant agreement (the “RSU Grant Agreement,” and, together with the Stock Option Grant Agreements, the “Grant Agreements”) with respect to shares in Telesat with certain executives of Telesat (each, a “Participant” and collectively, the “Participants”). Each of the Participants is or was, at the time, an executive of Telesat. The Stock Option Grant Agreements document grants to the Participants of Telesat stock options (including tandem SAR rights) and provide for certain rights, obligations and restrictions related to such stock options, which include, among other things: (w) the possible obligation of the Special Purchaser to purchase the shares in the place of Telesat should Telesat be prohibited by applicable law or under the terms of any credit agreement applicable to Telesat from purchasing such shares, or otherwise default on such purchase obligation, pursuant to the terms of the Stock Option Grant Agreements; and (x) the obligation of the Special Purchaser to purchase shares upon exercise by Telesat of its call right under Telesat’s Management Stock Incentive Plan in the event of a Participant’s termination of employment; and, in the case of certain executives, (y) the right of each such Participant to require the Special Purchaser or Loral to purchase a portion of the shares in Telesat owned by him in the event of exercise after termination of employment to cover taxes that are greater than the minimum withholding amount; and (z) the right of each such Participant to require Telesat to cause the Special Purchaser or Loral to purchase a portion of the shares in Telesat owned by him, or that are issuable to him under Telesat’s Management Stock Incentive Plan at the relevant time, in the event that more than 90% of Loral’s common stock is acquired by an unaffiliated third party that does not also purchase all of PSP’s and its affiliates’ interest in Telesat. The RSU Grant Agreement documents a grant to the Participant of restricted stock units with respect to shares in Telesat and provides for certain rights, obligations and restrictions related to such restricted stock units, which include, among other things: (x) the possible obligation of the Special Purchaser to purchase the shares in the place of Telesat should Telesat be prohibited by applicable law or under the terms of any credit agreement applicable to Telesat from purchasing such shares, or otherwise default on such purchase obligation, pursuant to the terms of the RSU Grant Agreement; and (y) the obligation of the Special Purchaser to purchase shares upon exercise by Telesat of its call right under Telesat's Management Stock Incentive Plan in the event of the termination of the Participant’s employment. The Grant Agreements further provide that, in the event the Special Purchaser is required to purchase shares, such shares, together with the obligation to pay for such shares, shall be transferred to a subsidiary of the Special Purchaser, which subsidiary shall be wound up into Telesat, with Telesat agreeing to the acquisition of such subsidiary by Telesat from the Special Purchaser for nominal consideration and with the purchase price for the shares being paid by Telesat within ten (10) business days after completion of the winding-up of such subsidiary into Telesat. In 2017, Loral received a $242.7 million cash distribution from Telesat (see Note 5). Other As described in Note 5, we own 56% of XTAR, a joint venture between Loral and Hisdesat and account for our investment in XTAR under the equity method of accounting. SSL constructed XTAR’s satellite, which was successfully launched in February 2005. XTAR and Loral have entered into a management agreement whereby Loral provides general and specific services of a technical, financial and administrative nature to XTAR. For the services provided by Loral, XTAR, until December 31, 2013, was charged a quarterly management fee equal to 3.7% of XTAR’s quarterly gross revenues. Amounts due to Loral primarily due to the management agreement were $6.7 million as of December 31, 2019 and 2018. Beginning in 2008, Loral and XTAR agreed to defer amounts owed to Loral under this agreement, and XTAR has agreed that its excess cash balance (as defined), will be applied at least quarterly towards repayment of receivables owed to Loral, as well as to Hisdesat and Telesat. No cash was received under this agreement for the years ended December 31, 2019 and 2018, and we had an allowance of $6.6 million against these receivables as of December 31, 2019 and 2018. Loral and Hisdesat have agreed to waive future management fees for an indefinite period starting January 1, 2014. Consulting Agreement On December 14, 2012, Loral entered into a consulting agreement with Michael B. Targoff, Vice Chairman of the Company and former Chief Executive Officer and President. Pursuant to this agreement, Mr. Targoff is engaged as a part-time consultant to the Board to assist the Board with respect to the oversight of strategic matters relating to Telesat and XTAR. Under the agreement, Mr. Targoff receives consulting fees of $120,000 per month and reimburses the Company for certain expenses. For each of the years ended December 31, 2019 and 2018, Mr. Targoff earned $1,440,000 in consulting fees and reimbursed Loral net expenses of $45,000. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | VALUATION AND QUALIFYING ACCOUNTS For the Year Ended December 31, 2019 and 2018 (In thousands) Additions Balance at Charged to Charged to Balance at Beginning Costs and Other End of Description of Period Expenses Accounts Period Year ended December 31, 2018 Allowance for affiliate receivables $ 6,692 $ — $ — $ 6,692 Deferred tax valuation allowance $ 124,036 $ 4,329 $ — $ 128,365 Year ended December 31, 2019 Allowance for affiliate receivables $ 6,692 $ — $ — $ 6,692 Deferred tax valuation allowance $ 128,365 $ 118 $ — $ 128,483 |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 12 Months Ended |
Dec. 31, 2019 | |
Basis of Presentation [Abstract] | |
Investments in Affiliates | Investments in Affiliates Our ownership interest in Telesat is accounted for using the equity method of accounting under U.S. GAAP. Telesat’s financial statements are prepared in accordance with international financial reporting standards (“IFRS”). To allow our reporting of our investment in Telesat under U.S. GAAP, Telesat provides us with a reconciliation of its financial statements from IFRS to U.S. GAAP . Income and losses of Telesat are recorded based on our economic interest. The contribution of Loral Skynet, a wholly owned subsidiary of Loral prior to its contribution to Telesat in 2007, was recorded by Loral at the historical book value of our retained interest combined with the gain recognized on the contribution. However, the contribution was recorded by Telesat at fair value. Accordingly, the amortization of Telesat fair value adjustments applicable to the Loral Skynet assets and liabilities acquired by Telesat in 2007 is proportionately eliminated in determining our share of the net income of Telesat. Our equity in net income or loss of Telesat also reflects amortization of profits eliminated, to the extent of our economic interest in Telesat, on satellites we constructed for Telesat while we owned Space Systems/Loral, LLC (formerly known as Space Systems/Loral, Inc.) (“SSL”) and on Loral’s sale to Telesat in April 2011 of its portion of the payload on the ViaSat-1 satellite and related assets. Non-refundable cash distributions received from Telesat in excess of our initial investment and our share of cumulative equity in comprehensive income of Telesat, net of cash distributions received in prior periods, are recorded as equity in net income of Telesat (“Excess Cash Distribution”) since we have no obligation to provide future financial support to Telesat. After receiving an Excess Cash Distribution, we do not record additional equity in net income of Telesat until our share of Telesat’s future net income exceeds the Excess Cash Distribution. Equity in losses of affiliates is not recognized after the carrying value of an investment, including advances and loans, has been reduced to zero, unless guarantees or other funding obligations exist. We had no guarantees or other funding obligations for our equity method investments as of December 31, 2019 and 2018. We use the nature of distribution approach to classify distributions from equity method investments on the statements of cash flows. The Company monitors its equity method investments for factors indicating other-than-temporary impairment. An impairment loss is recognized when there has been a loss in value of the affiliate that is other‑than-temporary. |
Use of Estimates in Preparation of Financial Statements | Use of Estimates in Preparation of Financial Statements The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amount of income (loss) reported for the period. Actual results could materially differ from estimates. Significant estimates also included the allowances for doubtful accounts, income taxes, including the valuation of deferred tax assets, the fair value of liabilities indemnified, the dilutive effect of Telesat stock options (see Note 10) and our pension liabilities. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash As of December 31, 2019, the Company had $259.1 million of cash and cash equivalents. Cash and cash equivalents include liquid investments, primarily money market funds, with maturities of less than 90 days at the time of purchase. Management determines the appropriate classification of its investments at the time of purchase and at each balance sheet date. As of December 31, 2019 and December 31, 2018, the Company had restricted cash of $0.3 million, representing the amount pledged as collateral to the issuer of a standby letter of credit (the “LC”). The LC, which expires in August 2021, has been provided as a guaranty to the lessor of our corporate offices. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the consolidated statement of cash flows (in thousands): December 31, 2019 2018 Cash and cash equivalents $ 259,067 $ 256,947 Restricted cash included in other assets 304 304 Cash, cash equivalents and restricted cash shown in the statement of cash flows $ 259,371 $ 257,251 |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents and receivables. Our cash and cash equivalents are maintained with high-credit-quality financial institutions. As of December 31, 2019 and December 31, 2018, our cash and cash equivalents were invested primarily in several liquid Prime and Government AAA money market funds. Such funds are not insured by the Federal Deposit Insurance Corporation. The dispersion across funds reduces the exposure of a default at any one fund. As a result, management believes that its potential credit risks are minimal. |
Fair Value Measurements | Fair Value Measurements U.S. GAAP defines fair value as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants. U.S. GAAP also establishes a fair value hierarchy that gives the highest priority to observable inputs and the lowest priority to unobservable inputs. The three levels of the fair value hierarchy are described below: Level 1: Inputs represent a fair value that is derived from unadjusted quoted prices for identical assets or liabilities traded in active markets at the measurement date. Level 2: Inputs represent a fair value that is derived from quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities, and pricing inputs, other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3: Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. Assets and Liabilities Measured at Fair Value The following table presents our assets and liabilities measured at fair value on a recurring or non-recurring basis (in thousands): December 31, 2019 December 31, 2018, Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Cash and cash equivalents: Money market funds $ 256,915 $ — $ — $ 254,552 $ — $ — Other current assets: Indemnification - Sale of SSL $ — $ — $ 598 $ — $ — $ 2,410 Liabilities Long term liabilities Indemnification - Globalstar do Brasil S.A. $ — $ — $ 145 $ — $ — $ 184 The carrying amount of cash equivalents approximates fair value as of each reporting date because of the short maturity of those instruments. The Company did not have any non-financial assets or non-financial liabilities that were recognized or disclosed at fair value as of December 31, 2019 and December 31, 2018. Assets and Liabilities Measured at Fair Value on a Non-recurring Basis We review the carrying values of our equity method investments when events and circumstances warrant and consider all available evidence in evaluating when declines in fair value are other-than-temporary. The fair values of our investments are determined based on valuation techniques using the best information available and may include quoted market prices, market comparables and discounted cash flow projections. An impairment charge is recorded when the carrying amount of the investment exceeds its current fair value and is determined to be other-than-temporary. The asset resulting from the indemnification of SSL is for certain pre-closing taxes and reflects the excess of payments since inception over refunds and the estimated remaining liability, which was originally determined using the fair value objective approach. The estimated liability for indemnifications relating to Globalstar do Brasil S.A. (“GdB”), originally determined using expected value analysis, is net of payments since inception. |
Contingencies | Contingencies Contingencies by their nature relate to uncertainties that require management to exercise judgment both in assessing the likelihood that a liability has been incurred as well as in estimating the amount of potential loss, if any. We accrue for costs relating to litigation, claims and other contingent matters when such liabilities become probable and reasonably estimable. Such estimates may be based on advice from third parties or on management’s judgment, as appropriate. Actual amounts paid may differ from amounts estimated, and such differences will be charged to operations in the period in which the final determination of the liability is made. |
Income Taxes | Income Taxes Loral and its subsidiaries are subject to U.S. federal, state and local income taxation on their worldwide income and foreign taxation on certain income from sources outside the United States. Telesat is subject to tax in Canada and other jurisdictions, and Loral will provide in each period any additional U.S. current and deferred tax required on actual or deemed distributions from Telesat, including Global Intangible Low Taxed Income (“GILTI”). Deferred income taxes reflect the future tax effect of temporary differences between the carrying amount of assets and liabilities for financial and income tax reporting and are measured by applying anticipated statutory tax rates in effect for the year during which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent it is more likely than not that the deferred tax assets will not be realized. The tax benefit of an uncertain tax position (“UTP”) taken or expected to be taken in income tax returns is recognized only if it is “more likely than not” to be sustained on examination by the taxing authorities, based on its technical merits as of the reporting date. The tax benefit recognized in the financial statements from such a position is measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties related to income taxes in income tax expense on a quarterly basis. The unrecognized tax benefit of a UTP is recognized in the period when the UTP is effectively settled. Previously recognized tax positions are derecognized in the first period in which it is no longer more likely than not that the tax position would be sustained upon examination. |
Earnings Per Share | Earnings per Share Basic earnings per share are computed based upon the weighted average number of shares of voting and non-voting common stock outstanding during each period. Shares of non-voting common stock are in all respects identical to and treated equally with shares of voting common stock except for the absence of voting rights (other than as provided in Loral’s Amended and Restated Certificate of Incorporation which was ratified by Loral’s stockholders on May 19, 2009). Diluted earnings per share are based on the weighted average number of shares of voting and non-voting common stock outstanding during each period, adjusted for the effect of unvested or unconverted restricted stock units. For diluted earnings per share, earnings are adjusted for the dilutive effect of Telesat stock options and restricted share units. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Basis of Presentation [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheet to the consolidated statement of cash flows (in thousands): December 31, 2019 2018 Cash and cash equivalents $ 259,067 $ 256,947 Restricted cash included in other assets 304 304 Cash, cash equivalents and restricted cash shown in the statement of cash flows $ 259,371 $ 257,251 |
Assets and Liabilities Measured at Fair Value on Recurring and Non-Recurring basis | The following table presents our assets and liabilities measured at fair value on a recurring or non-recurring basis (in thousands): December 31, 2019 December 31, 2018, Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Cash and cash equivalents: Money market funds $ 256,915 $ — $ — $ 254,552 $ — $ — Other current assets: Indemnification - Sale of SSL $ — $ — $ 598 $ — $ — $ 2,410 Liabilities Long term liabilities Indemnification - Globalstar do Brasil S.A. $ — $ — $ 145 $ — $ — $ 184 |
Additional Cash Flow Information | The following represents non-cash activities and supplemental information to the consolidated statements of cash flows (in thousands): Year Ended December 31, 2019 2018 Non-cash operating items Equity in net (income) loss of affiliates $ (101,403) $ 24,412 Deferred taxes 2,987 9,030 Depreciation 15 26 Right-of-use asset, net of lease liability 9 — Amortization of prior service credit and actuarial loss 1,008 1,071 Net non-cash operating items – continuing operations $ (97,384) $ 34,539 Supplemental information: Interest paid – continuing operations $ 24 $ 26 Income tax refunds $ 5,547 $ 8,619 Income tax payments $ 288 $ 264 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss, net of tax, are as follows (in thousands): Equity in Pension and Telesat-related Accumulated Other Other Other Post-retirement Comprehensive Comprehensive Benefits Loss Loss Balance, January 1, 2018 $ (16,454) $ (20,824) $ (37,278) Other comprehensive income before reclassification 953 22,033 22,986 Amounts reclassified from accumulated other comprehensive loss 845 — 845 Net current-period other comprehensive income 1,798 22,033 23,831 Tax Cuts and Jobs Act, reclassification of tax effect from accumulated other comprehensive loss to accumulated deficit — (4,173) (4,173) Balance, December 31, 2018 (14,656) (2,964) (17,620) Other comprehensive loss before reclassification: Prior periods (see Note 5) — (22,050) (22,050) Current period (2,307) (13,733) (16,040) Other comprehensive loss before reclassification (2,307) (35,783) (38,090) Amounts reclassified from accumulated other comprehensive loss 796 — 796 Net current-period other comprehensive loss (1,511) (35,783) (37,294) Balance, December 31, 2019 $ (16,167) $ (38,747) $ (54,914) |
Schedule of Other Comprehensive Income (Loss) and Related Income Tax Effects | The components of other comprehensive (loss) income and related tax effects are as follows (in thousands): Before-Tax Tax Net-of-Tax Year ended December 31, 2019 Pension and other post-retirement benefits: Net actuarial loss and prior service credits $ (2,921) $ 614 $ (2,307) Amortization of prior service credits and net actuarial loss 1,008 ( a ) (212) 796 Pension and other post-retirement benefits: (1,913) 402 (1,511) Equity in Telesat-related other comprehensive loss: Prior periods (See Note 5) (22,056) 6 (22,050) Current period (13,737) 4 (13,733) Equity in Telesat-related other comprehensive loss (35,793) 10 (b) (35,783) Other comprehensive loss $ (37,706) $ 412 $ (37,294) Year ended December 31, 2018 Pension and other post-retirement benefits: Net actuarial gain and prior service credits $ 1,208 $ (255) $ 953 Amortization of prior service credits and net actuarial loss 1,071 (a) (226) 845 Pension and other post-retirement benefits: 2,279 (481) 1,798 Equity in Telesat-related other comprehensive income 22,033 — (b) 22,033 Other comprehensive income $ 24,312 $ (481) $ 23,831 (a) Reclassifications are included in other expenses. (b) See Note 7, Income Taxes |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Current Assets [Abstract] | |
Schedule of Other Current Assets | Other current assets consist of (in thousands): December 31, 2019 2018 Indemnification receivable from SSL for pre-closing taxes (see Note 13) $ 598 $ 2,410 Due from affiliates 186 161 Prepaid expenses 164 151 Other 374 510 $ 1,322 $ 3,232 |
Investments in Affiliates (Tabl
Investments in Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments in and Advances to Affiliates [Line Items] | |
Investments in Affiliates | Investments in affiliates consist of (in thousands): December 31, 2019 2018 Telesat $ 90,184 $ 24,574 |
Equity in Net (Loss) Income of Affiliates | Equity in net income (loss) of affiliates consists of (in thousands): Year Ended December 31, 2019 2018 Telesat $ 101,403 $ (24,412) |
Telesat Canada [Member] | |
Investments in and Advances to Affiliates [Line Items] | |
Summary Financial Data, Equity Method Investment | The following table presents summary financial data for Telesat in accordance with U.S. GAAP, for the years ended December 31, 2019 and 2018 and as of December 31, 2019 and 2018 (in thousands): Year Ended December 31, 2019 2018 Statement of Operations Data: Revenues $ 687,868 $ 699,596 Operating expenses (129,770) (137,400) Depreciation, amortization and stock-based compensation (212,282) (205,451) Other operating (expense) income (649) 576 Operating income 345,167 357,321 Interest expense (186,394) (176,873) Loss on refinancing (86,166) — Foreign exchange gain (loss) 122,002 (203,005) (Loss) gain on financial instruments (42,039) 15,795 Other income 16,360 11,335 Income tax provision (12,741) (45,423) Net income (loss) $ 156,189 $ (40,850) December 31, 2019 2018 Balance Sheet Data: Current assets $ 877,294 $ 628,125 Total assets 4,130,337 3,942,847 Current liabilities 124,217 139,401 Long-term debt, including current portion 2,836,700 2,764,599 Total liabilities 3,504,594 3,474,504 Shareholders’ equity 625,743 468,343 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Current Liabilities [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consists of (in thousands): December 31, 2019 2018 Operating lease liability 652 — Due to affiliate $ 5 $ 164 Accrued professional fees 1,419 1,206 Pension and other post-retirement liabilities 77 69 Income taxes payable 673 — Accrued liabilities 57 56 $ 2,883 $ 1,495 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Summary of Income Tax Benefit (Provision) | The following summarizes our income tax (provision) benefit (in thousands): Year Ended December 31, 2019 2018 Current: U.S. federal $ (2,918) $ 47,761 State and local 2 867 Foreign (250) (250) Total current (3,166) 48,378 Deferred: U.S. federal (2,990) (9,036) State and local 3 6 Total deferred (2,987) (9,030) Total income tax (provision) benefit $ (6,153) $ 39,348 |
Summary of Uncertain Tax Positions Included in Income Tax Provision | Our current income tax (provision) benefit includes an (increase) decrease to our liability for UTPs for (in thousands): Year Ended December 31, 2019 2018 Unrecognized tax benefits $ (2,467) $ 41,115 Interest expense (1,570) 6,752 Total $ (4,037) $ 47,867 |
Summary of Additional Income Tax Disclosures | In addition to the income tax (provision) benefit presented above, we also recorded the following items (in thousands): Year Ended December 31, 2019 2018 Tax benefit on loss from discontinued operations $ — $ 16 Deferred tax benefit (provision) for adjustments in other comprehensive loss (see Note 3) 412 (481) |
Schedule of Effective Income Tax Rate Reconciliation | The (provision) benefit for income taxes differs from the amount computed by applying the statutory U.S. federal income tax rate on the loss from continuing operations before income taxes and equity in net income (loss) of affiliates because of the effect of the following items (dollars in thousands): Year Ended December 31, 2019 2018 U.S. Statutory Federal Corporate Income Tax Rate 21% 21% Tax benefit $ 1,154 $ 1,104 Permanent adjustments which change statutory amounts: State and local income taxes, net of federal income tax 107 666 Equity in net income (loss) of affiliates (5,055) (6,241) Federal (provision) benefit for unrecognized tax benefits (1,226) 46,534 Nondeductible expenses (695) (957) Change in valuation allowance (118) (4,329) Income tax credits — 4,554 Foreign income taxes (250) (250) Effect of U.S. tax law changes — (1,542) Other, net (70) (191) Total income tax (provision) benefit $ (6,153) $ 39,348 |
Unrecognized Tax Benefits | The following table summarizes the activity related to our unrecognized tax benefits (in thousands): Year Ended December 31, 2019 2018 Balance at January 1 $ 43,055 $ 70,410 Decreases as a result of statute expirations (18) (27,355) Balance at December 31 $ 43,037 $ 43,055 |
Schedule of Net Deferred Tax Assets | The significant components of the net deferred income tax assets are (in thousands): December 31, 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 34,294 $ 36,875 Foreign tax credit carryforwards 126,007 126,007 Compensation and benefits 961 953 Indemnification liabilities 66 216 Other, net 305 219 Federal benefit of uncertain tax positions 428 98 Pension costs 3,375 3,157 Investments in and advances to affiliates 992 1,360 Total deferred tax assets before valuation allowance 166,428 168,885 Less valuation allowance (128,483) (128,365) Deferred tax assets $ 37,945 $ 40,520 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities [Abstract] | |
Schedule of Long Term Liabilities | Other liabilities consists of (in thousands): December 31, 2019 2018 Operating lease liability $ 345 $ — Indemnification liabilities - other (see Note 13) 145 184 Liabilities for uncertain tax positions 17,352 13,315 $ 17,842 $ 13,499 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Dilutive Impact of Equity Method Investee Stock Options | The following table presents the dilutive impact of Telesat stock options on Loral’s reported income from continuing operations for the purpose of computing diluted earnings per share (in thousands): Year Ended December 31, 2019 2018 Income from continuing operations — basic $ 89,755 $ 9,677 Less: Adjustment for dilutive effect of Telesat stock options (528) — Income from continuing operations — diluted $ 89,227 $ 9,677 |
Schedule of Weighted Average Number of Shares for Calculating Diluted Earnings per Share | The following is the computation of common shares outstanding for diluted earnings per share (in thousands): Year Ended December 31, 2019 2018 Weighted average common shares outstanding 30,933 30,933 Unconverted restricted stock units 75 75 Common shares outstanding for diluted earnings per share 31,008 31,008 |
Pensions and Other Employee B_2
Pensions and Other Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Pensions and Other Employee Benefit Plans [Abstract] | |
Reconciliation of Changes in Plans' Benefit Obligations and Fair Value of Assets | The following tables provide a reconciliation of the changes in the plans’ benefit obligations and fair value of assets for 2019 and 2018, and a statement of the funded status as of December 31, 2019 and 2018. We use a December 31 measurement date for the pension plan and other post-retirement benefits (in thousands). Pension Benefits Other Benefits Year Ended December 31, Year Ended December 31, 2019 2018 2019 2018 Reconciliation of benefit obligation: Obligation at beginning of period $ 49,020 $ 53,976 $ 479 $ 519 Service cost 722 715 — 1 Interest cost 2,018 1,855 21 18 Participant contributions 25 27 — 15 Actuarial loss (gain) 5,256 (5,725) 30 (36) Benefit payments (1,882) (1,828) (19) (38) Obligation at December 31, 55,159 49,020 511 479 Reconciliation of fair value of plan assets: Fair value of plan assets at beginning of period 34,263 35,640 — — Actual return on plan assets 4,798 (1,925) — — Employer contributions 942 2,349 19 23 Participant contributions 25 27 — 15 Benefit payments (1,882) (1,828) (19) (38) Fair value of plan assets at December 31, 38,146 34,263 — — Funded status at end of period $ (17,013) $ (14,757) $ (511) $ (479) |
Pre-Tax Amounts Recognized in Accumulated Other Comprehensive Loss | The pre-tax amounts recognized in accumulated other comprehensive loss as of December 31, 2019 and 2018 consist of (in thousands): Pension Benefits Other Benefits December 31, December 31, 2019 2018 2019 2018 Actuarial loss $ (18,613) $ (16,728) $ (32) $ (4) |
Amounts Recognized in Other Comprehensive Loss | The amounts recognized in other comprehensive (loss) income during the years ended December 31, 2019 and 2018 consist of (in thousands): Year Ended December 31, 2019 2018 Pension Other Pension Other Actuarial (loss) gain during the period $ (2,891) $ (30) $ 1,172 $ 36 Amortization of actuarial loss 1,006 2 1,041 8 Amortization of prior service cost — — — 22 Total recognized in other comprehensive (loss) income $ (1,885) $ (28) $ 2,213 $ 66 |
Amounts Recognized in the Balance Sheets | Amounts recognized in the balance sheet consist of (in thousands): Pension Benefits Other Benefits December 31, December 31, 2019 2018 2019 2018 Current Liabilities $ — $ — $ 77 $ 69 Long-Term Liabilities 17,013 14,757 434 410 $ 17,013 $ 14,757 $ 511 $ 479 |
Components of Net Periodic Cost | The following table provides the components of net periodic cost included in income from continuing operations for the plans for the years ended December 31, 2019 and 2018 (in thousands): Pension Benefits Other Benefits Year Ended December 31, Year Ended December 31, 2019 2018 2019 2018 Service cost (1) $ 722 $ 715 $ — $ 1 Interest cost (2) 2,018 1,855 21 18 Expected return on plan assets (2) (2,432) (2,628) — — Amortization of prior service cost (2) — — — 22 Amortization of net actuarial loss (2) 1,006 1,041 2 8 Net periodic cost $ 1,314 $ 983 $ 23 $ 49 (1) Included in general and administrative expenses. (2) Included in other expense. |
Assumptions Used to Determine Net Periodic Cost | Assumptions used to determine net periodic cost: Year Ended December 31, 2019 2018 Discount rate Expected return on plan assets Rate of compensation increase |
Assumptions Used to Determine Benefit Obligation | Assumptions used to determine the benefit obligation: December 31, 2019 2018 Discount rate Rate of compensation increase |
Pension Plans' Actual and Targeted Asset Allocations | The pension plan’s actual and targeted asset allocations, are as follows: December 31, 2019 Target Allocation Actual Allocation Target Target Range Liquid return-seeking investments 45-65% Alternative investments 0-20% Fixed income investments 20-40% |
Fair Values of Pension Plan Assets | The table below provides the fair values of the Company’s pension plan assets, by asset category, at December 31, 2019 and 2018. The Company’s pension plan assets are mainly held in commingled employee benefit fund trusts. Fair Value Measurements Assets Measured Asset Category Total Percentage Level 1 Level 2 Level 3 at NAV (1) (Dollars in thousands) At December 31, 2019 Liquid return-seeking: Multi-asset fund (2) $ 23,127 $ 23,127 Fixed income securities: Commingled funds (3) 11,463 11,463 Alternative investments: Equity long/short fund (4) 1,349 $ 1,349 Private equity fund (5) 48 48 Distressed opportunity limited partnership (6) 463 463 Multi-strategy limited partnership (7) 1,696 1,696 3,556 — — 3,556 — $ 38,146 — — $ 3,556 $ 34,590 At December 31, 2018 Liquid return-seeking: Multi-asset fund (2) $ 20,251 $ 20,251 Fixed income securities: Commingled funds (3) 10,869 10,869 Alternative investments: Equity long/short fund (4) 1,002 $ 1,002 Private equity fund (5) 76 76 Distressed opportunity limited partnership (6) 463 463 Multi-strategy limited partnership (7) 1,602 1,602 3,143 — — 3,143 — $ 34,263 — — $ 3,143 $ 31,120 (1) Assets measured using the net asset value (“NAV”) practical expedient have not been classified in the fair value hierarchy. The NAV practical expedient is based on the fair value of the underlying assets of the common/collective trust (“CCT”) minus its liabilities, and then divided by the number of units outstanding. The NAV practical expedient of a CCT is calculated based on a compilation of primarily observable market information. (2) A single fund that invests in global equities, marketable real assets and fixed income securities. The fund has no limitation on redemptions. (3) Investments in bonds representing many sectors of the broad bond market with both short-term and intermediate-term maturities. The fund has no limitation on redemptions. (4) Investments primarily in long and short positions in equity securities of U.S. and non-U.S. companies. The fund generally has semi-annual tender offer redemption periods on June 30 and December 31 and is reported on a one month lag. (5) Fund invests in portfolios of secondary interest in established venture capital, buyout, mezzanine and special situation funds on a global basis. Fund is valued on a quarterly lag with adjustment for subsequent cash activity. The fund terminates on July 12, 2020, subject to extension for up to two one-year periods. Earlier redemptions are not permitted. (6) Investments mainly in discounted debt securities, bank loans, trade claims and other debt and equity securities of financially troubled companies. This partnership has semi-annual withdrawal rights on June 30 and December 31 with notice of 90 days and is reported on a one month lag. (7) Investments in a partnership that has a multi-strategy investment program and does not rely on a single investment model. This partnership has quarterly redemption rights with notice of 65 days and is reported on a one month lag. |
Changes in Fair Value of Pension Plan Assets | Additional information pertaining to the changes in the fair value of the pension plan assets classified as Level 3 for the years ended December 31, 2019 and 2018 is presented below: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Private Equity Distressed Partnership Multi Total (In thousands) Balance, January 1, 2018 $ 83 $ 1,067 $ 504 $ 1,572 $ 3,226 Unrealized gain 10 (65) (41) 30 (66) Sales (17) — — — (17) Balance, December 31, 2018 76 1,002 463 1,602 3,143 Unrealized gain (loss) (23) 347 — 94 418 Sales (5) — — — (5) Balance, December 31, 2019 $ 48 $ 1,349 $ 463 $ 1,696 $ 3,556 |
Benefit Payments Expected to be Paid | The following benefit payments, which reflect future services, as appropriate, are expected to be paid (in thousands): Pension Other 2020 $ 2,103 $ 78 2021 2,267 68 2022 2,368 58 2023 2,527 50 2024 2,770 41 2025 to 2029 14,831 128 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies [Abstract] | |
Operating Leases Expense Net of Sublease Income | Lease costs expensed for the years ended December 31, 2019 and 2018 were as follows (in thousands): Lease Expense Year ended December 31, 2019 $ 677 Year ended December 31, 2018 680 |
Reconciliation of the Lease Liability to Future Lease Payments | Lease payments for the year ended December 31, 2019 were $0.7 million. The remaining lease term as of December 31, 2019 is 18 months, and we used a discount rate of 7.5% to compute the lease liability at inception and at each modification date. The following is a reconciliation of the future operating lease payments to operating lease liability as of December 31, 2019 (in thousands): 2020 $ 701 2021 350 Total operating lease payments 1,051 Less: Interest (54) Operating lease liability $ 997 Amounts recognized in Balance Sheet Other current liabilities $ 652 Other liabilities 345 $ 997 |
Organization and Principal Bu_2
Organization and Principal Business (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Organization And Principal Business [Line Items] | |
Number of operating segment | 1 |
Telesat Canada [Member] | |
Organization And Principal Business [Line Items] | |
Economic interest in affiliate | 62.70% |
Voting interest in affiliate | 32.60% |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Basis of Presentation [Line Items] | |||
Cash and cash equivalents | $ 259,067 | $ 256,947 | |
Restricted cash | 304 | 304 | |
Investments in affiliates, guarantee or other funding obligations | 0 | $ 0 | |
Operating lease liability | 997 | $ 300 | |
Right-of-use asset | $ 988 | 300 | |
Accounting Standards Update 2016-02 [Member] | |||
Basis of Presentation [Line Items] | |||
Operating lease liability | 300 | ||
Right-of-use asset | $ 300 |
Basis of Presentation (Reconcil
Basis of Presentation (Reconciliation of Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |||
Cash and cash equivalents | $ 259,067 | $ 256,947 | |
Restricted cash | 304 | 304 | |
Cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 259,371 | $ 257,251 | $ 255,443 |
Basis of Presentation (Assets a
Basis of Presentation (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Money Market Funds [Member] | Level 1 [Member] | ||
Assets, Fair Value | ||
Cash and cash equivalents | $ 256,915 | $ 254,552 |
Sale of SSL, Nov. 02, 2012 [Member] | Level 3 [Member] | Fair Value, Nonrecurring [Member] | ||
Assets, Fair Value | ||
Indemnification - sale of SSL | 598 | 2,410 |
Globalstar do Brasil S.A. [Member] | Level 3 [Member] | ||
Liabilities, Fair Value | ||
Indemnification - Globalstar do Brasil S.A. | $ 145 | $ 184 |
Basis of Presentation (Addition
Basis of Presentation (Additional Cash Flow Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Non-cash operating items: | ||
Equity in net (income) loss of affiliates | $ (101,403) | $ 24,412 |
Deferred taxes | 2,987 | 9,030 |
Depreciation and amortization | 15 | 26 |
Right-of-use asset, net of lease liability | 9 | |
Amortization of prior service credit and actuarial (gain) loss | 1,008 | 1,071 |
Net non-cash operating items – continuing operations | (97,384) | 34,539 |
Continuing Operations [Member] | ||
Supplemental information: | ||
Interest paid - continuing operations | 24 | 26 |
Income tax refunds | 5,547 | 8,619 |
Income tax payments | $ 288 | $ 264 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), beginning balance | $ (17,620) | |
Other comprehensive income (loss), Net-of-tax Amount | (37,294) | $ 23,831 |
Accumulated other comprehensive income (loss), ending balance | (54,914) | (17,620) |
Pension and Other Postretirement Benefits [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), beginning balance | (14,656) | (16,454) |
Other comprehensive income (loss) before reclassification | (2,307) | 953 |
Amounts reclassified from accumulated other comprehensive income (loss) | 796 | 845 |
Other comprehensive income (loss), Net-of-tax Amount | (1,511) | 1,798 |
Accumulated other comprehensive income (loss), ending balance | (16,167) | (14,656) |
Pension and Other Postretirement Benefits [Member] | Current Period [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) before reclassification | (2,307) | |
Proportionate Share of Telesat Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), beginning balance | (2,964) | (20,824) |
Other comprehensive income (loss) before reclassification | (35,783) | 22,033 |
Other comprehensive income (loss), Net-of-tax Amount | (35,783) | 22,033 |
Tax Cuts and Jobs Act, reclassification of tax effect from accumulated other comprehensive loss to accumulated deficit | (4,173) | |
Accumulated other comprehensive income (loss), ending balance | (38,747) | (2,964) |
Proportionate Share of Telesat Other Comprehensive Loss [Member] | Prior Periods [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) before reclassification | (22,050) | |
Proportionate Share of Telesat Other Comprehensive Loss [Member] | Current Period [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) before reclassification | (13,733) | |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income (loss), beginning balance | (17,620) | (37,278) |
Other comprehensive income (loss) before reclassification | (38,090) | 22,986 |
Amounts reclassified from accumulated other comprehensive income (loss) | 796 | 845 |
Other comprehensive income (loss), Net-of-tax Amount | (37,294) | 23,831 |
Tax Cuts and Jobs Act, reclassification of tax effect from accumulated other comprehensive loss to accumulated deficit | (4,173) | |
Accumulated other comprehensive income (loss), ending balance | (54,914) | $ (17,620) |
Accumulated Other Comprehensive Loss [Member] | Prior Periods [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) before reclassification | (22,050) | |
Accumulated Other Comprehensive Loss [Member] | Current Period [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) before reclassification | $ (16,040) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Components of Other Comprehensive Income and Related Tax Effects) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Net actuarial gain (loss) and prior service credits, Before-Tax Amount | $ (2,921) | $ 1,208 | |
Amortization of prior service credits and net actuarial loss, Before-Tax Amount | [1] | 1,008 | 1,071 |
Pension amd other postretirement benefits, Before-Tax Amount | (1,913) | 2,279 | |
Proportionate share of Telesat Holdco other comprehensive income (loss), Before-Tax Amount | (35,793) | 22,033 | |
Other comprehensive income (loss), Before-Tax Amount | (37,706) | 24,312 | |
Net actuarial gain (loss) and prior service credits, Tax (Provision) Benefit | 614 | (255) | |
Amortization of prior service credits and net actuarial loss, Tax (Provision) Benefit | (212) | (226) | |
Pension amd other post retirement benefits, Tax (Provision) Benefit | 402 | (481) | |
Proportionate share of Telesat Holdco other comprehensive income (loss), Tax (Provision) Benefit | [2] | 10 | |
Other comprehensive income, Tax (Provision) Benefit | 412 | (481) | |
Net actuarial gain (loss) and prior service credits, Net-of-Tax Amount | (2,307) | 953 | |
Amortization of prior service credits and net actuarial gain (loss), Net-of-Tax Amount | 796 | 845 | |
Pension amd other postretirement benefits, Net-of-Tax Amount | (1,511) | 1,798 | |
Proportionate share of Telesat Holdco other comprehensive income (loss), Net-of-Tax Amount | (35,783) | 22,033 | |
Other comprehensive income (loss), Net-of-tax Amount | (37,294) | $ 23,831 | |
Prior Periods [Member] | |||
Proportionate share of Telesat Holdco other comprehensive income (loss), Before-Tax Amount | (22,056) | ||
Proportionate share of Telesat Holdco other comprehensive income (loss), Tax (Provision) Benefit | 6 | ||
Proportionate share of Telesat Holdco other comprehensive income (loss), Net-of-Tax Amount | (22,050) | ||
Current Period [Member] | |||
Proportionate share of Telesat Holdco other comprehensive income (loss), Before-Tax Amount | (13,737) | ||
Proportionate share of Telesat Holdco other comprehensive income (loss), Tax (Provision) Benefit | 4 | ||
Proportionate share of Telesat Holdco other comprehensive income (loss), Net-of-Tax Amount | $ (13,733) | ||
[1] | Reclassifications are included in other expenses. | ||
[2] | See Note 7, Income Taxes |
Other Current Assets (Schedule
Other Current Assets (Schedule of Other Current Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Current Assets [Abstract] | ||
Indemnification receivable from SSL for pre-closing taxes (see note 13) | $ 598 | $ 2,410 |
Due from affiliates | 186 | 161 |
Prepaid expenses | 164 | 151 |
Other | 374 | 510 |
Total other current assets | $ 1,322 | $ 3,232 |
Investments in Affiliates (Narr
Investments in Affiliates (Narrative) (Details) - USD ($) $ in Thousands | Dec. 06, 2019 | Oct. 11, 2019 | Jan. 01, 2019 | Apr. 30, 2018 | Mar. 31, 2018 | Feb. 28, 2017 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Investments in and Advances to Affiliates [Line Items] | |||||||||
Investments in affiliates | $ 90,184 | $ 24,574 | |||||||
Accumulated other comprehensive loss | (54,914) | (17,620) | |||||||
Proportionate share of Telesat Holdco other comprehensive income (loss), Before-Tax Amount | $ (35,793) | 22,033 | |||||||
Cumulative effect adjustment attributable to investment in Telesat, net of tax | (26,477) | ||||||||
Telesat Canada [Member] | |||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||
Economic interest in affiliate | 62.70% | ||||||||
Voting interest in affiliate | 32.60% | ||||||||
Investments in affiliates | $ 90,184 | 24,574 | |||||||
Operating lease right of use asset | $ 19,600 | ||||||||
Operating lease liability | $ 20,000 | ||||||||
Proportionate share of Telesat Holdco other comprehensive income (loss), Before-Tax Amount | (35,800) | 22,000 | |||||||
Consulting fees payable in cash | 5,000 | ||||||||
Telesat Canada [Member] | Adjustments for New Accounting Pronouncement [Member] | |||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||
Investments in affiliates | (26,500) | ||||||||
Equity method investment, cumulative effect adjustment on retained earnings | (42,200) | ||||||||
Cumulative effect adjustment attributable to investment in Telesat, net of tax | (26,500) | ||||||||
XTAR, LLC [Member] | |||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||
Investments in affiliates | 0 | $ 0 | |||||||
Financial support to affiliates | $ 0 | ||||||||
Percentage of ownership interest | 56.00% | ||||||||
Senior Notes 8.875% [Member] | Telesat Canada [Member] | |||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||
Interest on notes | 8.875% | ||||||||
Extinguishment of debt, amount | $ 500,000 | ||||||||
Debt instrument, repurchase date | Oct. 11, 2019 | ||||||||
Indenture maturity date | Nov. 15, 2024 | ||||||||
Senior Notes 6.500% [Member] | Telesat Canada [Member] | |||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||
Interest on notes | 6.50% | ||||||||
Debt instrument, issuance date | Oct. 11, 2019 | ||||||||
Indenture maturity date | Oct. 1, 2027 | ||||||||
Senior notes issued and outstanding | $ 550,000 | ||||||||
Senior secured notes 4.875% [Member] | Telesat Canada [Member] | |||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||
Interest on notes | 4.875% | ||||||||
Indenture maturity date | Jun. 1, 2027 | ||||||||
Senior notes issued and outstanding | $ 400,000 | ||||||||
Equity Method Investment Revolving Credit [Member] | Telesat Canada [Member] | |||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||
Revolving credit borrowings | $ 200,000 | ||||||||
Indenture maturity date | Dec. 1, 2024 | ||||||||
Equity Method Investment Senior Secured Credit Facility [Member] | Telesat Canada [Member] | |||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||
Minimum total leverage ratio | 4.50 | ||||||||
Minimum total leverage ratio to incur debt and make payments | 4.63 | ||||||||
Term Loan B - U.S. Facility [Member] | Telesat Canada [Member] | |||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||
Term loan borrowings | $ 1,908,500 | ||||||||
Debt instrument, issuance date | Dec. 6, 2019 | ||||||||
Indenture maturity date | Dec. 1, 2026 | ||||||||
Former Term Loan B - U.S. Facility [Member] | Telesat Canada [Member] | |||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||
Equity method investment, debt repayment | $ 50,000 | ||||||||
Equity method investment, applicable margin on senior credit facility | 2.50% | 3.00% | |||||||
Term loan borrowings | $ 0 | ||||||||
Debt instrument, repurchase date | Dec. 6, 2019 | ||||||||
Restatement Adjustment [Member] | Telesat Canada [Member] | |||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||
Immaterial error correction | In the third quarter of 2019, we recorded an out-of-period correction to decrease our investment in Telesat and increase other comprehensive loss by $22.1 million. This non-cash adjustment was made to record the cumulative translation adjustment on our investment in Telesat from November 2007 | ||||||||
Proportionate share of Telesat Holdco other comprehensive income (loss), Before-Tax Amount | $ (22,100) |
Investments in Affiliates (Inve
Investments in Affiliates (Investments in Affiliates) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Equity Method Investments [Line Items] | ||
Investments in affiliates | $ 90,184 | $ 24,574 |
Telesat Canada [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in affiliates | $ 90,184 | $ 24,574 |
Investments in Affiliates (Equi
Investments in Affiliates (Equity in Net Income (Losses) of Affiliates) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||
Equity in net income (loss) of affiliates | $ 101,403 | $ (24,412) |
Telesat Canada [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity in net income (loss) of affiliates | $ 101,403 | $ (24,412) |
Investments in Affiliates (Eq_2
Investments in Affiliates (Equity Method Investment, Summarized Financial Data) (Details) - Telesat Canada [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Summary Financial Data: | ||
Revenues | $ 687,868 | $ 699,596 |
Operating expenses | (129,770) | (137,400) |
Depreciation, amortization and stock-based compensation | (212,282) | (205,451) |
Other operating income (expense) | (649) | 576 |
Operating income | 345,167 | 357,321 |
Interest expense | (186,394) | (176,873) |
Loss on refinancing | (86,166) | |
Foreign exchange (loss) gain | 122,002 | (203,005) |
Gain (loss) on financial instruments | (42,039) | 15,795 |
Other income (expense) | 16,360 | 11,335 |
Income tax provision | (12,741) | (45,423) |
Net (loss) income | 156,189 | (40,850) |
Current assets | 877,294 | 628,125 |
Total assets | 4,130,337 | 3,942,847 |
Current liabilities | 124,217 | 139,401 |
Long-term debt, including current portion | 2,836,700 | 2,764,599 |
Total liabilities | 3,504,594 | 3,474,504 |
Shareholders' equity | $ 625,743 | $ 468,343 |
Other Current Liabilities (Sche
Other Current Liabilities (Schedule of Other Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Current Liabilities [Abstract] | ||
Operating lease liability, current | $ 652 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other current liabilities, total | |
Due to affiliate | $ 5 | $ 164 |
Accrued professional fees | 1,419 | 1,206 |
Pension and other postretirement liabilities | 77 | 69 |
Income taxes payable | 673 | |
Accrued liabilities | 57 | 56 |
Other current liabilities, total | $ 2,883 | $ 1,495 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | ||
Tax Cuts and Jobs Act, Measurement Period Adjustment, Income Tax Expense (Benefit) | $ 1,500 | |
Fed Tax On GILTI | $ 0 | |
Foreign tax credit carryforwards | 109,600 | |
Liabilities for uncertain tax positions | 17,352 | 13,315 |
Unrecognized tax benefits, interest on income taxes accrued | 2,000 | |
Unrecognized tax benefits that would reduce the income tax provision | 7,300 | |
Valuation allowance | 128,483 | 128,365 |
Changes in valuation allowance | $ 100 | $ 4,300 |
Internal Revenue Service (IRS) [Member] | ||
Income Tax Contingency [Line Items] | ||
Statute of limitations to expire during next twelve months | 2014 | |
Operating loss carryforwards | $ 95,300 | |
Operating loss carryforwards, limitations on use | $ 32,600 | |
Federal Income Taxes and State Income Taxes [Member] | ||
Income Tax Contingency [Line Items] | ||
Net operating loss carryforwards, expiration period | 2022 to 2034 | |
New York [Member] | ||
Income Tax Contingency [Line Items] | ||
Operating loss carryforwards | $ 1,500 |
Income Taxes (Summary of Income
Income Taxes (Summary of Income Tax Benefit (Provision)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | ||
U.S. Federal | $ (2,918) | $ 47,761 |
State and local | 2 | 867 |
Foreign | (250) | (250) |
Total current | (3,166) | 48,378 |
Deferred: | ||
U.S. Federal | (2,990) | (9,036) |
State and local | 3 | 6 |
Total deferred | (2,987) | (9,030) |
Income tax benefit (provision) | $ (6,153) | $ 39,348 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Abstract] | ||
Unrecognized tax benefits | $ (2,467) | $ 41,115 |
Interest income (expense) | (1,570) | 6,752 |
Total | $ (4,037) | $ 47,867 |
Income Taxes (Summary of Additi
Income Taxes (Summary of Additional Income Tax Disclosures) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Abstract] | ||
Tax benefit (provision) on (loss) income from discontinued operations | $ 16 | |
Deferred tax (provision) benefit for adjustments in other comprehensive income (loss) (See Note 3) | $ 412 | $ (481) |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Abstract] | ||
U.S. statutory rate | 21.00% | 21.00% |
Tax (provision) benefit | $ 1,154 | $ 1,104 |
State and local income taxes, net of federal income tax | 107 | 666 |
Equity in net income of affiliates | (5,055) | (6,241) |
Federal (provision) benefit for unrecognized tax benefits | (1,226) | 46,534 |
Nondeductible expenses | (695) | (957) |
Change in valuation allowance | (118) | (4,329) |
Income tax credits | 4,554 | |
Foreign income taxes | (250) | (250) |
Effect of U.S. tax law changes | (1,542) | |
Other, net | (70) | (191) |
Income tax benefit (provision) | $ (6,153) | $ 39,348 |
Income Taxes (Unrecognized Ta_2
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Abstract] | ||
Balance at January 1 | $ 43,055 | $ 70,410 |
Decreases as a result of statute expirations | (18) | (27,355) |
Balance at December 31 | $ 43,037 | $ 43,055 |
Income Taxes (Schedule of Net D
Income Taxes (Schedule of Net Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Taxes [Abstract] | ||
Net operating loss carryforwards | $ 34,294 | $ 36,875 |
Foreign tax credit carryforwards | 126,007 | 126,007 |
Compensation and benefits | 961 | 953 |
Indemnification liabilities | 66 | 216 |
Other, net | 305 | 219 |
Federal benefit of uncertain tax positions | 428 | 98 |
Pension costs | 3,375 | 3,157 |
Investments in and advances to affiliates | 992 | 1,360 |
Total deferred tax assets before valuation allowance | 166,428 | 168,885 |
Less valuation allowance | (128,483) | (128,365) |
Deferred tax assets | $ 37,945 | $ 40,520 |
Other Liabilities (Schedule of
Other Liabilities (Schedule of Long Term Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Liabilities [Abstract] | ||
Operating lease liability, noncurrent | $ 345 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List | us-gaap:OtherLiabilitiesNoncurrent | |
Indemnification liabilities (see Note 13) | $ 145 | $ 184 |
Liabilities for uncertain tax positions | 17,352 | 13,315 |
Long-term liabilities | $ 17,842 | $ 13,499 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Stock-Based Compensation [Abstract] | ||
Unconverted restricted stock units | 75,262 | 75,262 |
Stock based compensation, expiration period | 10 years | |
Total unrecognized compensation costs related to non-vested awards | $ 0 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - Telesat Canada [Member] | 12 Months Ended |
Dec. 31, 2019 | |
Economic interest in affiliate | 62.70% |
Percentage of economic interest as result of dilution upon exercise of stock options | 62.30% |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Dilutive Impact of Equity Method Investee Stock Options) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Income from continuing operations — basic | $ 89,755 | $ 9,677 |
Less: Adjustment for dilutive effect of Telesat stock options | (528) | |
Income from continuing operations — diluted | $ 89,227 | $ 9,677 |
Earnings Per Share (Schedule _2
Earnings Per Share (Schedule of Weighted Average Number of Shares for Calculating Diluted Earnings Per Share) (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Weighted average common shares outstanding | 30,933 | 30,933 |
Unconverted restricted stock units | 75 | 75 |
Common shares outstanding for diluted earnings per share | 31,008 | 31,008 |
Pensions and Other Employee B_3
Pensions and Other Employee Benefits Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Unfunded status at end of period | $ (17,500) | |
Unfunded benefit obligations, discount rate | 3.25% | 4.25% |
Unfunded benefit obligations, decrease in discount rate | 0.50% | 0.50% |
Change in unfunded benefit obligation as a result of decrease in half percentage point assumed discount rate | $ 3,700 | $ 3,400 |
Accumulated pension benefit obligation | $ 54,200 | 48,200 |
Expected long-term rate of return on plan assets | 7.00% | |
Defined benefit plan, target allocation percentage | The target allocation within the liquid return-seeking portfolio is 75% global equities, 15% marketable real assets and 10% fixed income. Allocations may vary by up to 5% from these targets | |
Employee Savings (401K) Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions to employee savings (401K) plan, maximum | 6.00% | |
Participant's base salary rate | 66.70% | |
Employer contributions | $ 100 | 100 |
Liquid Return Seeking [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target allocation variance percentage | 5.00% | |
Liquid Return Seeking [Member] | Global Equities[Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target allocation percentage | 75% | |
Liquid Return Seeking [Member] | Marketable Real Assets[Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target allocation percentage | 15% | |
Liquid Return Seeking [Member] | Fixed Income Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, target allocation percentage | 10% | |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial loss (gain) component of benefit obligation | $ (5,256) | 5,725 |
Contribution to qualified pension plan | 942 | 2,349 |
Estimated employer contribution next fiscal year | 2,700 | |
Pension Benefits [Member] | Change in Discount Rate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial loss (gain) component of benefit obligation | (6,700) | 5,100 |
Pension Benefits [Member] | Other Factors [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial loss (gain) component of benefit obligation | 1,400 | 600 |
Other Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial loss (gain) component of benefit obligation | (30) | 36 |
Contribution to qualified pension plan | $ 19 | $ 23 |
Pensions and Other Employee B_4
Pensions and Other Employee Benefits Plans (Reconciliation of Changes in Plans' Benefit Obligations and Fair Value of Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Reconciliation of fair value of plan assets: | |||
Fair value of plan assets at beginning of period | $ 34,263 | ||
Fair value of plan assets at December 31, | 38,146 | $ 34,263 | |
Pension Benefits [Member] | |||
Reconciliation of benefit obligation: | |||
Obligation at beginning of period | 49,020 | 53,976 | |
Service cost | [1] | 722 | 715 |
Interest cost | [2] | 2,018 | 1,855 |
Participant contributions | 25 | 27 | |
Actuarial loss (gain) | 5,256 | (5,725) | |
Benefit payments | (1,882) | (1,828) | |
Obligation at December 31 | 55,159 | 49,020 | |
Reconciliation of fair value of plan assets: | |||
Fair value of plan assets at beginning of period | 34,263 | 35,640 | |
Actual return on plan assets | 4,798 | (1,925) | |
Employer contributions | 942 | 2,349 | |
Participant contributions | 25 | 27 | |
Benefit payments | (1,882) | (1,828) | |
Fair value of plan assets at December 31, | 38,146 | 34,263 | |
Funded status at end of period | (17,013) | (14,757) | |
Other Benefits [Member] | |||
Reconciliation of benefit obligation: | |||
Obligation at beginning of period | 479 | 519 | |
Service cost | [1] | 1 | |
Interest cost | [2] | 21 | 18 |
Participant contributions | 15 | ||
Actuarial loss (gain) | 30 | (36) | |
Benefit payments | (19) | (38) | |
Obligation at December 31 | 511 | 479 | |
Reconciliation of fair value of plan assets: | |||
Employer contributions | 19 | 23 | |
Participant contributions | 15 | ||
Benefit payments | (19) | (38) | |
Funded status at end of period | $ (511) | $ (479) | |
[1] | Included in general and administrative expenses. | ||
[2] | Included in other expense. |
Pensions and Other Employee B_5
Pensions and Other Employee Benefits Plans (Pre-Tax Amounts Recognized in Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial loss | $ (18,613) | $ (16,728) |
Other Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial loss | $ (32) | $ (4) |
Pensions and Other Employee B_6
Pensions and Other Employee Benefits Plans (Amounts Recognized in Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Total recognized in other comprehensive income (loss) | $ 1,913 | $ (2,279) |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial gain (loss) during the period | (2,891) | 1,172 |
Amortization of actuarial loss (gain) | 1,006 | 1,041 |
Total recognized in other comprehensive income (loss) | (1,885) | 2,213 |
Other Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial gain (loss) during the period | (30) | 36 |
Amortization of actuarial loss (gain) | 2 | 8 |
Amortization of prior service cost (credit) | 22 | |
Total recognized in other comprehensive income (loss) | $ (28) | $ 66 |
Pensions and Other Employee B_7
Pensions and Other Employee Benefits Plans (Amounts Recognized in the Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Long-Term Liabilities | $ 17,013 | $ 14,757 |
Amounts recognized in the balance sheet | 17,013 | 14,757 |
Other Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current Liabilities | 77 | 69 |
Long-Term Liabilities | 434 | 410 |
Amounts recognized in the balance sheet | $ 511 | $ 479 |
Pensions and Other Employee B_8
Pensions and Other Employee Benefits Plans (Components of Net Periodic Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | [1] | $ 722 | $ 715 |
Interest cost | [2] | 2,018 | 1,855 |
Expected return on plan assets | [2] | (2,432) | (2,628) |
Amortization of net actuarial loss (gain) | [2] | 1,006 | 1,041 |
Net periodic cost | 1,314 | 983 | |
Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | [1] | 1 | |
Interest cost | [2] | 21 | 18 |
Amortization of net actuarial loss (gain) | [2] | 2 | 8 |
Amortization of prior service cost (credit) | [2] | 22 | |
Net periodic cost | $ 23 | $ 49 | |
[1] | Included in general and administrative expenses. | ||
[2] | Included in other expense. |
Pensions and Other Employee B_9
Pensions and Other Employee Benefits Plans (Assumptions Used to Determine Net Periodic Cost) (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pensions and Other Employee Benefit Plans [Abstract] | ||
Discount rate | 4.25% | 3.50% |
Expected return on plan assets | 7.25% | 7.25% |
Rate of compensation increase | 4.25% | 4.25% |
Pensions and Other Employee _10
Pensions and Other Employee Benefits Plans (Assumptions Used to Determine Benefit Obligation) (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Pensions and Other Employee Benefit Plans [Abstract] | ||
Discount rate | 3.25% | 4.25% |
Rate of compensation increase | 4.25% | 4.25% |
Pensions and Other Employee _11
Pensions and Other Employee Benefits Plans (Pension Plans' Actual and Targeted Asset Allocations) (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 100.00% | 100.00% |
Target Allocation | 100.00% | |
Liquid Return Seeking [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 61.00% | |
Target Allocation | 56.50% | |
Liquid Return Seeking [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 45.00% | |
Liquid Return Seeking [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 65.00% | |
Alternative Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 9.00% | 9.00% |
Target Allocation | 14.50% | |
Alternative Investments [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 0.00% | |
Alternative Investments [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 20.00% | |
Fixed Income Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 30.00% | |
Target Allocation | 29.00% | |
Fixed Income Investments [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 20.00% | |
Fixed Income Investments [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 40.00% |
Pensions and Other Employee _12
Pensions and Other Employee Benefits Plans (Fair Values of Pension Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | $ 38,146 | $ 34,263 | ||
Pension plans' actual assets allocation | 100.00% | 100.00% | ||
Liquid Return Seeking [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension plans' actual assets allocation | 61.00% | |||
Liquid Return Seeking - Multi Asset Fund [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [1] | $ 23,127 | $ 20,251 | |
Pension plans' actual assets allocation | [1] | 61.00% | 59.00% | |
Fixed Income Investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension plans' actual assets allocation | 30.00% | |||
Fixed Income Securities - Commingled Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [2] | $ 11,463 | $ 10,869 | |
Pension plans' actual assets allocation | [2] | 30.00% | 32.00% | |
Alternative Investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | $ 3,556 | $ 3,143 | ||
Pension plans' actual assets allocation | 9.00% | 9.00% | ||
Alternative investments - Equity Long/Short Fund [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [3] | $ 1,349 | $ 1,002 | |
Pension plans' actual assets allocation | [3] | 4.00% | 3.00% | |
Alternative investments - Private Equity Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [4] | $ 48 | $ 76 | |
Pension plans' actual assets allocation | [4] | 0.00% | 0.00% | |
Alternative investments - Distressed Opportunity Ltd. Partnership [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [5] | $ 463 | $ 463 | |
Pension plans' actual assets allocation | [5] | 1.00% | 1.00% | |
Alternative investments - Multi-Strategy Limited Partnerships [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [6] | $ 1,696 | $ 1,602 | |
Pension plans' actual assets allocation | [6] | 4.00% | 5.00% | |
Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | $ 3,556 | $ 3,143 | $ 3,226 | |
Level 3 [Member] | Alternative Investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 3,556 | 3,143 | ||
Level 3 [Member] | Alternative investments - Equity Long/Short Fund [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [3] | 1,349 | 1,002 | |
Level 3 [Member] | Alternative investments - Private Equity Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [4] | 48 | 76 | |
Level 3 [Member] | Alternative investments - Distressed Opportunity Ltd. Partnership [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [5] | 463 | 463 | |
Level 3 [Member] | Alternative investments - Multi-Strategy Limited Partnerships [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [6] | 1,696 | 1,602 | |
Assets Measured at Net Asset Value (NAV) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [7] | 34,590 | 31,120 | |
Assets Measured at Net Asset Value (NAV) [Member] | Liquid Return Seeking - Multi Asset Fund [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [1],[7] | 23,127 | 20,251 | |
Assets Measured at Net Asset Value (NAV) [Member] | Fixed Income Securities - Commingled Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [2],[7] | $ 11,463 | $ 10,869 | |
[1] | A single fund that invests in global equities, marketable real assets and fixed income securities. The fund has no limitation on redemptions. | |||
[2] | Investments in bonds representing many sectors of the broad bond market with both short-term and intermediate-term maturities. The fund has no limitation on redemptions. | |||
[3] | Investments primarily in long and short positions in equity securities of U.S. and non-U.S. companies. The fund generally has semi-annual tender offer redemption periods on June 30 and December 31 and is reported on a one month lag. | |||
[4] | Fund invests in portfolios of secondary interest in established venture capital, buyout, mezzanine and special situation funds on a global basis. Fund is valued on a quarterly lag with adjustment for subsequent cash activity. The fund terminates on July 12, 2020, subject to extension for up to two one-year periods. Earlier redemptions are not permitted. | |||
[5] | Investments mainly in discounted debt securities, bank loans, trade claims and other debt and equity securities of financially troubled companies. This partnership has semi-annual withdrawal rights on June 30 and December 31 with notice of 90 days and is reported on a one month lag. | |||
[6] | Investments in a partnership that has a multi-strategy investment program and does not rely on a single investment model. This partnership has quarterly redemption rights with notice of 65 days and is reported on a one month lag. | |||
[7] | Assets measured using the net asset value (“NAV”) practical expedient have not been classified in the fair value hierarchy. The NAV practical expedient is based on the fair value of the underlying assets of the common/collective trust (“CCT”) minus its liabilities, and then divided by the number of units outstanding. The NAV practical expedient of a CCT is calculated based on a compilation of primarily observable market information. |
Pensions and Other Employee _13
Pensions and Other Employee Benefits Plans (Changes in Fair Value of Pension Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of plan assets at beginning of period | $ 34,263 | |
Fair value of plan assets at December 31, | 38,146 | $ 34,263 |
Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of plan assets at beginning of period | 3,143 | 3,226 |
Fair value of plan assets at December 31, | 3,556 | 3,143 |
Level 3 [Member] | Alternative investments - Private Equity Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of plan assets at beginning of period | 76 | 83 |
Fair value of plan assets at December 31, | 48 | 76 |
Level 3 [Member] | Alternative investments - Equity Long/Short Fund [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of plan assets at beginning of period | 1,002 | 1,067 |
Fair value of plan assets at December 31, | 1,349 | 1,002 |
Level 3 [Member] | Alternative investments - Distressed Opportunity Ltd. Partnership [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of plan assets at beginning of period | 463 | 504 |
Fair value of plan assets at December 31, | 463 | 463 |
Level 3 [Member] | Alternative investments - Multi-Strategy Limited Partnerships [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of plan assets at beginning of period | 1,602 | 1,572 |
Fair value of plan assets at December 31, | 1,696 | 1,602 |
Unrealized Gain/(Loss) [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Realized and unrealized gain/(loss) | 418 | (66) |
Unrealized Gain/(Loss) [Member] | Level 3 [Member] | Alternative investments - Private Equity Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Realized and unrealized gain/(loss) | (23) | 10 |
Unrealized Gain/(Loss) [Member] | Level 3 [Member] | Alternative investments - Equity Long/Short Fund [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Realized and unrealized gain/(loss) | 347 | (65) |
Unrealized Gain/(Loss) [Member] | Level 3 [Member] | Alternative investments - Distressed Opportunity Ltd. Partnership [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Realized and unrealized gain/(loss) | (41) | |
Unrealized Gain/(Loss) [Member] | Level 3 [Member] | Alternative investments - Multi-Strategy Limited Partnerships [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Realized and unrealized gain/(loss) | 94 | 30 |
Sales [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases and sales | (5) | (17) |
Sales [Member] | Level 3 [Member] | Alternative investments - Private Equity Funds [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases and sales | $ (5) | (17) |
Sales [Member] | Level 3 [Member] | Alternative investments - Equity Long/Short Fund [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases and sales | ||
Sales [Member] | Level 3 [Member] | Alternative investments - Distressed Opportunity Ltd. Partnership [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases and sales | ||
Sales [Member] | Level 3 [Member] | Alternative investments - Multi-Strategy Limited Partnerships [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases and sales |
Pensions and Other Employee _14
Pensions and Other Employee Benefits Plans (Benefit Payments Expected to be Paid) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 2,103 |
2021 | 2,267 |
2022 | 2,368 |
2023 | 2,527 |
2024 | 2,770 |
2025 to 2029 | 14,831 |
Gross Benefit Payments [Member] | Other Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 78 |
2021 | 68 |
2022 | 58 |
2023 | 50 |
2024 | 41 |
2025 to 2029 | $ 128 |
Financial Instruments, Deriva_2
Financial Instruments, Derivative Instruments and Hedging (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments, Derivative Instruments and Hedging [Abstract] | ||
Derivative instruments | $ 0 | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
Contingencies And Commitments [Line Items] | |||
Operating lease liability | $ 997 | $ 300 | |
Right-of-use asset | 988 | $ 300 | |
Sublease income | 0 | $ 0 | |
Operating lease payments | $ 700 | ||
Operating lease, term of contract | 18 months | ||
Operating lease, discount rate | 7.50% | ||
Sale of SSL, Nov. 02, 2012 [Member] | Pre Closing Taxes Indemnification [Member] | |||
Contingencies And Commitments [Line Items] | |||
Indemnification refund receivable | $ 600 | 2,400 | |
Indemnification refund received | 1,800 | ||
Globalstar do Brasil S.A. [Member] | |||
Contingencies And Commitments [Line Items] | |||
Loss contingency accrual | $ 100 | $ 200 |
Commitments and Contingencies_3
Commitments and Contingencies (Operating Leases Expense Net of Sublease Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commitments and Contingencies [Abstract] | ||
Rent expense | $ 677 | $ 680 |
Commitments and Contingencies_4
Commitments and Contingencies (Schedule of Future Minimum Payments) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Stock-Based Compensation [Abstract] | ||
Operating lease payments, 2020 | $ 701 | |
Operating lease payments, 2021 | 350 | |
Future operating lease payments, Total | 1,051 | |
Less: interest | (54) | |
Operating Lease, Liability, Total | 997 | $ 300 |
Operating lease liability, current | $ 652 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities Current | |
Operating lease liability, noncurrent | $ 345 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List | us-gaap:OtherLiabilitiesNoncurrent |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | ||||
Amounts due under the transaction | $ 186,000 | $ 161,000 | ||
Transaction, Consulting Agreement [Member] | Director [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction, date | Dec. 14, 2012 | |||
Transaction income during the period | $ 45,000 | 45,000 | ||
Expenses on transactions with related party | 1,440,000 | 1,440,000 | ||
Monthly Fee [Member] | Transaction, Consulting Agreement [Member] | Director [Member] | ||||
Related Party Transaction [Line Items] | ||||
Transaction fee | $ 120,000 | |||
Telesat Canada [Member] | ||||
Related Party Transaction [Line Items] | ||||
Economic interest in affiliate | 62.70% | |||
Common stock, percentage acquired by an unaffiliated third party | 90.00% | |||
Duration for shares to be paid, days | 10 days | |||
Distribution received from affiliate | $ 242,700,000 | |||
Telesat Canada [Member] | Transaction, Consulting Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction, date | Oct. 31, 2007 | |||
Consulting agreement term | seven-years with an automatic renewal for an additional seven-year term | |||
Transaction income during the period | $ 5,000,000 | 5,000,000 | ||
Transaction payments received during the period | 4,800,000 | 4,800,000 | ||
Telesat Canada [Member] | Annual Fee [Member] | Transaction, Consulting Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Transaction fee | 5,000,000 | |||
Telesat Canada [Member] | Annual Fee [Member] | Transaction Participation In Welfare Plans Administrative Fee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Transaction fee | $ 100,000 | 100,000 | ||
Telesat Canada [Member] | Years 2003 to 2006 [Member] | Brazil [Member] | ||||
Related Party Transaction [Line Items] | ||||
Tax assessment imposed audit | $ 900,000 | |||
XTAR, LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Percentage of ownership interest | 56.00% | |||
XTAR, LLC [Member] | Transaction, Management Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Transaction payments received during the period | $ 0 | 0 | ||
Amounts due under the transaction | 6,700,000 | 6,700,000 | ||
Allowance for doubtful accounts receivable | $ 6,600,000 | $ 6,600,000 | ||
Management fee charged as a percentage of revenue | 3.70% | |||
MHR Funds [Member] | ||||
Related Party Transaction [Line Items] | ||||
Percentage of outstanding voting common stock | 39.90% | 39.90% | ||
Percentage of combined ownership of voting and non-voting common stock | 58.40% | 58.40% |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for Affiliate Receivables [Member] | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning of Period | $ 6,692 | $ 6,692 |
Charged to Costs and Expenses | ||
Charged to Other Accounts | ||
Balance at End of Period | 6,692 | 6,692 |
Deferred Tax Valuation Allowance [Member] | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning of Period | 128,365 | 124,036 |
Charged to Costs and Expenses | 118 | 4,329 |
Charged to Other Accounts | ||
Balance at End of Period | $ 128,483 | $ 128,365 |