Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 18, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Iridium Communications Inc. | |
Entity Central Index Key | 0001418819 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | IRDM | |
Document Type | 10-Q | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 | |
Entity Common Stock, Shares Outstanding (in shares) | 113,241,666 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 275,659 | $ 273,352 |
Accounts receivable, net | 68,460 | 71,210 |
Inventory | 35,179 | 27,538 |
Prepaid expenses and other current assets | 17,590 | 18,284 |
Total current assets | 396,888 | 390,384 |
Property and equipment, net | 3,336,961 | 3,370,855 |
Restricted cash and cash equivalents | 193,026 | 191,935 |
Intangible assets, net | 48,114 | 48,540 |
Other assets | 51,320 | 12,557 |
Total assets | 4,026,309 | 4,014,271 |
Current liabilities: | ||
Short-term credit facility | 225,000 | 126,000 |
Accounts payable | 17,564 | 12,869 |
Accrued expenses and other current liabilities | 35,088 | 56,990 |
Interest payable | 58,992 | 29,431 |
Deferred revenue | 39,798 | 37,429 |
Total current liabilities | 376,442 | 262,719 |
Long-term credit facility, net | 1,385,585 | 1,478,739 |
Long-term senior unsecured notes, net | 351,477 | 350,998 |
Deferred income tax liabilities, net | 231,549 | 241,422 |
Deferred revenue, net of current portion | 64,430 | 74,656 |
Other long-term liabilities | 30,126 | 4,160 |
Total liabilities | 2,439,609 | 2,412,694 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.001 par value, 300,000 shares authorized; 113,240 and 112,200 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 113 | 112 |
Additional paid-in capital | 1,110,970 | 1,108,550 |
Retained earnings | 483,688 | 501,712 |
Accumulated other comprehensive loss, net of tax | (8,072) | (8,797) |
Total stockholders' equity | 1,586,699 | 1,601,577 |
Total liabilities and stockholders' equity | 4,026,308 | 4,014,271 |
Series B Preferred Stock | ||
Stockholders' equity: | ||
Preferred stock, value | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | |
Preferred stock, shares authorized (in shares) | 2,000,000 | |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 113,240,000 | 112,200,000 |
Common stock, shares outstanding (in shares) | 113,240,000 | 112,200,000 |
Series A Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Series B Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Preferred stock, shares issued (in shares) | 500,000 | 500,000 |
Preferred stock, shares outstanding (in shares) | 497,000 | 497,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue: | ||
Total revenue | $ 133,685 | $ 119,148 |
Operating expenses: | ||
Research and development | 3,611 | 4,583 |
Selling, general and administrative | 23,841 | 22,495 |
Depreciation and amortization | 72,914 | 38,465 |
Total operating expenses | 135,318 | 99,709 |
Operating income (loss) | (1,633) | 19,439 |
Other expense, net: | ||
Interest expense, net | (25,804) | (4,165) |
Other income (expense), net | (326) | 37 |
Total other expense, net | (26,130) | (4,128) |
Income (loss) before income taxes | (27,763) | 15,311 |
Income tax benefit (expense) | 9,739 | (3,839) |
Net income (loss) | (18,024) | 11,472 |
Net income (loss) attributable to common stockholders | $ (20,121) | $ 7,613 |
Weighted average shares outstanding - basic, excluding Series A preferred stockholders through the conversion date of March 20, 2018 (in shares) | 113,038 | 100,686 |
Weighted average shares outstanding - diluted (in shares) | 113,038 | 104,345 |
Net income attributable to common stockholders per share - basic (in dollars per share) | $ (0.18) | $ 0.08 |
Net income attributable to common stockholders per share - diluted (in dollars per share) | $ (0.18) | $ 0.07 |
Comprehensive income (loss): | ||
Net income (loss) | $ (18,024) | $ 11,472 |
Foreign currency translation adjustments, net of tax | 726 | 92 |
Unrealized loss on marketable securities, net of tax | 0 | (13) |
Comprehensive income (loss) | (17,298) | 11,551 |
Series A Preferred Stock | ||
Other expense, net: | ||
Preferred stock dividends, excluding cumulative dividends | 0 | 1,750 |
Series B Preferred Stock | ||
Other expense, net: | ||
Preferred stock dividends, excluding cumulative dividends | 0 | 2,109 |
Preferred stock dividends, undeclared | 2,097 | 0 |
Services | ||
Revenue: | ||
Total revenue | 106,951 | 89,742 |
Operating expenses: | ||
Cost of Goods and Services Sold | 22,521 | 18,952 |
Subscriber equipment | ||
Revenue: | ||
Total revenue | 21,008 | 25,782 |
Operating expenses: | ||
Cost of Goods and Services Sold | 12,431 | 15,214 |
Engineering and support services | ||
Revenue: | ||
Total revenue | $ 5,726 | $ 3,624 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity Statement - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member]Series A Preferred Stock | Retained Earnings [Member]Series B Preferred Stock | AOCI Attributable to Parent [Member] |
Stockholders' Equity Attributable to Parent | $ 1,596,469 | $ 98 | $ 1,081,373 | $ 518,794 | $ (3,796) | ||
Stock Issued During Period, Value, Share-based Compensation, Gross | 2 | 769 | |||||
Adjustments To Additional Paid In Capital Stock Withheld To Cover Employee Taxes | (1) | (1,405) | |||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 11 | ||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 4,520 | ||||||
Net Income (Loss) Attributable to Parent | 11,472 | 11,472 | |||||
Dividends, Preferred Stock | $ (7,000) | $ (8,436) | |||||
Cumulative Effect of New Accounting Pronouncement - ASU 2014-09 | 11,738 | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | 92 | 92 | |||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | (13) | (13) | |||||
Preferred Stock, Dividends Per Share, Declared | $ 7 | $ 16.85 | |||||
Stockholders' Equity Attributable to Parent | 1,608,218 | 110 | 1,085,257 | 526,568 | (3,717) | ||
Stockholders' Equity Attributable to Parent | 1,601,577 | 112 | 1,108,550 | 501,712 | (8,797) | ||
Stock Issued During Period, Value, Share-based Compensation, Gross | 1 | 2,126 | |||||
Adjustments To Additional Paid In Capital Stock Withheld To Cover Employee Taxes | 0 | (3,486) | |||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 0 | ||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 3,780 | ||||||
Net Income (Loss) Attributable to Parent | (18,024) | (18,024) | |||||
Dividends, Preferred Stock | $ 0 | $ 0 | |||||
Cumulative Effect of New Accounting Pronouncement - ASU 2014-09 | 0 | ||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | 726 | 725 | |||||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | 0 | 0 | |||||
Preferred Stock, Dividends Per Share, Declared | $ 0 | ||||||
Stockholders' Equity Attributable to Parent | $ 1,586,699 | $ 113 | $ 1,110,970 | $ 483,688 | $ (8,072) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net Income (Loss) Attributable to Parent | $ (18,024) | $ 11,472 |
Cash flows from operating activities: | ||
Deferred Income Tax Expense (Benefit) | (9,873) | 3,672 |
Depreciation and amortization | 72,914 | 38,465 |
Gain (Loss) on Extinguishment of Debt | 0 | 3,981 |
Share-based Compensation | 3,327 | 4,286 |
Amortization of Debt Issuance Costs | 4,836 | 0 |
Other Expenses | 36 | 45 |
Increase (Decrease) in Accounts Receivable | 2,627 | (7,092) |
Increase (Decrease) in Inventories | (7,649) | (276) |
Increase (Decrease) in Prepaid Expense and Other Assets | 821 | (1,410) |
Increase (Decrease) in Other Noncurrent Assets | 671 | (937) |
Increase (Decrease) in Accounts Payable | 3,863 | 3,943 |
Increase (Decrease) in Accrued Liabilities and Other Operating Liabilities | 3,412 | (1,447) |
Increase (Decrease) in Deferred Revenue | (8,012) | 3,569 |
Increase (Decrease) in Other Noncurrent Liabilities | (829) | 6 |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 48,120 | 58,277 |
Cash flows from investing activities: | ||
Capital expenditures | (34,643) | (82,961) |
Payments to Purchase Other Investments | (10,000) | |
Payments to Acquire Other Investments | 0 | |
Purchases of marketable securities | 0 | (17,007) |
Sales and maturities of marketable securities | 0 | 8,723 |
Net cash used in investing activities | (44,643) | (91,245) |
Cash flows from financing activities: | ||
Borrowings under the senior unsecured notes | 0 | 360,000 |
Extinguishment of the Thales Alenia Space bills of exchange | 0 | (59,936) |
Payment of deferred financing fees | 0 | (19,445) |
Proceeds from exercise of stock options | 2,126 | 769 |
Tax payment upon settlement of stock awards | (3,486) | (1,405) |
Net cash (used in) provided by financing activities | (1,360) | 264,556 |
Effect of exchange rate changes on cash and cash equivalents | 1,281 | 58 |
Net increase in cash and cash equivalents | 3,398 | 231,646 |
Cash, cash equivalents, and restricted cash, beginning of period | 465,287 | 388,257 |
Cash, cash equivalents, and restricted cash, end of period | 468,685 | 619,903 |
Supplemental cash flow information: | ||
Interest paid | 419 | 787 |
Income taxes paid, net | 280 | 253 |
Supplemental disclosure of non-cash investing activities: | ||
Property and equipment received but not yet paid for | 2,642 | 42,254 |
Interest capitalized but not yet paid | 6,084 | 37,608 |
Capitalized amortization of deferred financing costs | 1,489 | 6,549 |
Capitalized stock-based compensation | 452 | 233 |
Series A Preferred Stock | ||
Cash flows from financing activities: | ||
Payment of preferred stock dividends | 0 | (7,000) |
Series B Preferred Stock | ||
Cash flows from financing activities: | ||
Payment of preferred stock dividends | $ 0 | $ (8,427) |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation Iridium Communications Inc. (the “Company”) has prepared its condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The accompanying condensed consolidated financial statements include the accounts of (i) the Company, (ii) its wholly owned subsidiaries, and (iii) all less than wholly owned subsidiaries that the Company controls. All material intercompany transactions and balances have been eliminated. In the opinion of management, the condensed consolidated financial statements reflect all normal recurring adjustments that the Company considers necessary for the fair presentation of its results of operations and cash flows for the interim periods covered, and of the financial position of the Company at the date of the interim condensed consolidated balance sheet. The operating results for interim periods are not necessarily indicative of the operating results for the entire year. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to instructions, rules and regulations prescribed by the U.S. Securities and Exchange Commission (“SEC”). These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10‑K for the year ended December 31, 2018 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Adopted Accounting Pronouncements Effective January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (“ASU 2016-02”) using the required modified retrospective approach. ASU 2016-02 requires lessees to record most leases on their balance sheets but recognize expenses on their income statements in a manner similar to current accounting. See discussion below under the caption “Leases” in this Note 2 and in Note 5 for more detail on the Company's accounting policy with respect to lease accounting. Effective January 1, 2019, the Company adopted ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”), which aligns accounting for share-based payments issued to nonemployees to that of employees under the existing guidance of Topic 718, with certain exceptions. This update supersedes previous guidance for equity-based payments to nonemployees under Subtopic 505-50, Equity - Equity-Based Payments to Non-Employees. The adoption of ASU 2018-07 did not have a material impact on the Company’s condensed consolidated financial statements. Fair Value Measurements The Company evaluates assets and liabilities subject to fair value measurements on a recurring and non-recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgments to be made by management of the Company. The instruments identified as subject to fair value measurements on a recurring basis are cash and cash equivalents, marketable securities, prepaid expenses and other current assets, accounts receivable, accounts payable and accrued expenses and other current liabilities. Fair value is the price that would be received from the sale of an asset or paid to transfer a liability assuming an orderly transaction in the most advantageous market at the measurement date. U.S. GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of observability of inputs used in measuring fair value. The fair value hierarchy consists of the following tiers: • Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; • Level 2, defined as observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The carrying values of short-term financial instruments (primarily cash and cash equivalents, prepaid expenses and other current assets, accounts receivable, accounts payable, and accrued expenses and other current liabilities) approximate their fair values because of their short-term nature. The fair value of the Company’s investments in money market funds approximates its carrying value; such instruments are classified as Level 2 and are included in cash and cash equivalents on the accompanying condensed consolidated balance sheets. The fair value of the Company’s investments in commercial paper and short-term U.S. agency securities with original maturities of less than ninety days approximates their carrying value; such instruments are classified as Level 2 and are included in cash and cash equivalents on the accompanying condensed consolidated balance sheets. The fair value of the Company’s investments in fixed-income debt securities and commercial paper with original maturities of greater than ninety days are obtained using similar investments traded on active securities exchanges and are classified as Level 2. For fixed income securities that do not have quoted prices in active markets, the Company uses third-party vendors to price its debt securities resulting in classification as Level 2. All fixed-income securities are included in marketable securities on the accompanying condensed consolidated balance sheets. Leases Upon transition under ASU 2016-02, the Company elected the suite of practical expedients as a package applied to all of its leases, including (i) not reassessing whether any expired or existing contracts are or contain leases, (ii) not reassessing the lease classification for any expired or existing leases, and (iii) not reassessing initial direct costs for any existing leases. For new leases, the Company will determine if an arrangement is or contains a lease at inception. Leases are included as right-of-use (“ROU”) assets within other assets and ROU liabilities within accrued expenses and other liabilities and within other long-term liabilities on the Company’s condensed consolidated balance sheets. ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company’s leases do not provide an implicit rate. The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For certain leases, such as teleport network (“TPN”) facilities, the Company elected the practical expedient to combine lease and non-lease components as a single lease component. Adoption of ASU 2016-02 had an impact of approximately $27.1 million and $30.1 million |
Cash and Cash Equivalents, Rest
Cash and Cash Equivalents, Restricted Cash and Marketable Securities | 3 Months Ended |
Mar. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents, Restricted Cash and Marketable Securities | Cash and Cash Equivalents and Restricted Cash and Cash Equivalents Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of ninety days or less to be cash equivalents. These investments, along with cash deposited in institutional money market funds and regular interest bearing and non-interest bearing depository accounts, are classified as cash and cash equivalents in the accompanying condensed consolidated balance sheets. The following table summarizes the Company’s cash and cash equivalents: March 31, 2019 December 31, 2018 Recurring Fair Value Measurement (in thousands) Cash and cash equivalents: Cash $ 10,649 $ 20,879 Money market funds 265,010 252,473 Level 2 Total cash and cash equivalents $ 275,659 $ 273,352 Restricted Cash and Cash Equivalents The Company is required to maintain a minimum cash reserve within a debt service reserve account (“DSRA”) for debt service related to its credit facility with Bpifrance Assurance Export S.A.S. (“BPIAE”) (as amended to date, the “Credit Facility”) (see Note 6 ). As of March 31, 2019 and December 31, 2018 , the Company’s restricted cash and cash equivalents balances, which included a minimum cash reserve for debt service and the interest earned on these amounts, were $193.0 million and $191.9 million |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Thales Alenia Space In June 2010, the Company executed a primarily fixed-price full scale development contract (“FSD”) with Thales Alenia Space for the design and build of its new, next-generation satellite constellation. The total price under the FSD is $2.3 billion . As of March 31, 2019, the Company has paid substantially all of its obligations under the FSD and is expected to make final payments to Thales Alenia Space in the amount of approximately $29.5 million during the second quarter of 2019. Approximately $1.5 billion in aggregate payments made to Thales Alenia Space were financed from borrowings under the Credit Facility and were capitalized as construction in progress within property and equipment, net in the accompanying condensed consolidated balance sheets. On March 9, 2018, the Company and Thales Alenia Space entered into an amendment to the FSD, pursuant to which the Company and Thales Alenia Space unwound prior changes that allowed for the deferral of certain milestone payments totaling $100.0 million through the issuance of bills of exchange. The March 2018 amendment to the FSD became effective on March 21, 2018 upon the Company's receipt of proceeds from a senior unsecured notes offering (see Note 6 ). The Company utilized a portion of the proceeds from the senior unsecured notes to prepay in full the $59.9 million of amounts due under outstanding bills of exchange, replenish the DSRA under the Credit Facility to $189.0 million , and to pay approximately $44.4 million in Thales Alenia Space milestones previously expected to be satisfied by the issuance of additional bills of exchange. In connection with the prepayment of the Thales Alenia Space bills of exchange, for the three months ended March 31, 2018, the Company recorded a $4.0 million loss on extinguishment of debt, included within interest expense, representing premiums paid and the write-off of unamortized debt issuance costs. The Company had no such loss on extinguishment of debt recorded for the three months ended March 31, 2019. SpaceX In March 2010, the Company entered into an agreement with Space Exploration Technologies Corp. (“SpaceX”) to secure SpaceX as the primary launch services provider for its next-generation satellite constellation (as amended to date, the “SpaceX Agreement”). The total price under the SpaceX Agreement for seven launches of ten satellites each and a reflight option in the event of a launch failure was $448.9 million . All seven of these launches have been completed. In November 2016, the Company entered into an agreement for an eighth launch with SpaceX to launch five additional satellites and share the launch with GFZ German Research Centre for Geosciences (“GFZ”). This launch took place in May 2018. The total price under the SpaceX Agreement for the eighth launch was $61.9 million . GFZ paid the Company $29.8 million to include in the launch NASA’s two Gravity Recovery and Climate Experiment Follow-On satellites. As of March 31, 2019 , the Company had made aggregate payments of $504.1 million to SpaceX, which were capitalized as construction in progress within property and equipment, net in the accompanying condensed consolidated balance sheets. The Company paid the final amounts due to SpaceX in April 2019. In-Orbit Insurance The Company was required, pursuant to its Credit Facility, to obtain insurance covering the launch and first 12 months of operation of its upgraded constellation. The launch and in-orbit insurance the Company obtained contains elements, consistent with the terms of the Credit Facility, of self-insurance and deductibles, providing reimbursement only after a specified number of satellite failures. As a result, a failure of one or more of the Company's new satellites, or the occurrence of equipment failures and other related problems, could constitute an uninsured loss or require the payment of additional premiums and could harm the Company’s financial condition. Furthermore, launch and in-orbit insurance does not cover lost revenue. The total premium for the Company’s current launch and in-orbit insurance was $120.7 million , which was paid in full as of December 31, 2018. Contingencies |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases [Text Block] | Leases The Company has operating leases for land, office space, satellite network operations center (“SNOC”) facilities, system gateway facilities, a warehouse and a distribution center. The Company also has operations and maintenance (“O&M”) agreements that include leases associated with two TPN facilities. The Company's leases have remaining lease terms of 5 months to 11 years , some of which include options to extend the leases for up to 10 years and some include options to terminate the lease within 1 year. The Company’s weighted-average remaining lease term relating to its operating leases is 8.28 years , with a weighted-average discount rate of 6.67% . The table below summarizes the Company’s lease-related assets and liabilities: March 31, 2019 Leases Classification (in thousands) Operating lease assets Noncurrent Other assets $ 28,908 Total leased assets 28,908 Operating lease liabilities Current Accrued expenses and other current liabilities 3,155 Noncurrent Other long-term liabilities 28,788 Total lease liabilities $ 31,943 The Company incurred lease expense of $1.2 million for each of the three months ended March 31, 2019 and 2018. Future payment obligations with respect to the Company's operating leases, exclusive of $1.2 million paid during the three months ended March 31, 2019, which were existing at March 31, 2019, by year and in the aggregate, are as follows: Year Ending December 31, Amount (in thousands) 2019 $ 3,837 2020 5,189 2021 5,321 2022 4,837 2023 4,808 Thereafter 17,723 Total lease payments $ 41,715 Lessor Arrangements Operating leases in which the Company is a lessor consist primarily of hosting agreements with Aireon (see Note 11 ) and Harris Corporation for space on the Company’s upgraded satellites. These agreements provide for a fee that will be recognized over the life of the satellites, currently expected to be approximately 12.5 years . Lease income related to these agreements was $5.5 million and $0.5 million for the three months ended March 31, 2019 and 2018, respectively, and is recorded within hosted payload and other data service revenue within service revenue on the Company’s condensed consolidated statements of operations and comprehensive income. Both Aireon and Harris have made payments for their hosting agreements and will continue to do so. Future income with respect to the Company's operating leases in which it is the lessor existing at March 31, 2019, exclusive of the $5.5 million recognized during the three months ended March 31, 2019, by year and in the aggregate, is as follows: Year Ending December 31, Amount (in thousands) 2019 $ 16,084 2020 21,445 2021 21,445 2022 21,445 2023 21,445 Thereafter 141,797 Total lease income $ 243,661 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Credit Facility In October 2010, the Company entered into its $1.8 billion Credit Facility with a syndicate of bank lenders, which was amended and restated on March 9, 2018, and further amended on December 21, 2018. As of March 31, 2019 , the Company reported an aggregate total of $1,684.9 million in borrowings, including $74.3 million of deferred financing costs, for a net balance of $1,610.6 million in borrowings from the Credit Facility in the accompanying condensed consolidated balance sheet. Ninety-five percent of the Company's obligations under the Credit Facility are insured by BPIAE. Scheduled semi-annual principal repayments began on April 3, 2018, and are scheduled to be paid each March 30 and September 30. Interest is paid on the same date as the principal repayments. As amended and restated, the Credit Facility (i) allowed the Company to issue $360.0 million in senior unsecured notes (the “Notes”), (ii) delayed a portion of the principal repayments scheduled under the Credit Facility for 2018, 2019 and 2020 into 2023 and 2024 pursuant to an amended repayment installment schedule, (iii) allows the Company access to up to $87.0 million from the DSRA in the future if its projected cash level falls below $75.0 million , and (iv) adjusted the Company’s financial covenants, including eliminating covenants that required the Company to receive cash flows from hosted payloads and adding a covenant that requires the Company to receive $200.0 million in hosting fees from Aireon, the Company's primary hosted payload customer, by December 2023. In the event that (a) the Company's cash balance exceeds $140.0 million after September 30, 2019 (subject to specified exceptions) or (b) the Company receives hosting fees from Aireon, the Company would be required pursuant to the Credit Facility to use 50% of such excess cash and up to $200.0 million of hosting fees to prepay the Credit Facility. Pursuant to this provision, the Company has used the $43.1 million in hosting fees received from Aireon to date to prepay the Credit Facility. In addition, if any of the Company's senior unsecured notes remain outstanding on October 15, 2022, which is six months prior to the scheduled maturity thereof, the maturity of all amounts remaining outstanding under the Credit Facility would be accelerated from September 30, 2024 to October 15, 2022. Lender fees incurred related to the amended and restated Credit Facility were $10.3 million , which were capitalized as deferred financing costs and are being amortized over the remaining term. Under the terms of the Credit Facility, as of March 31, 2019 , the Company is required to maintain a minimum cash reserve within the DSRA of $189.0 million , which is classified as restricted cash and cash equivalents on the accompanying condensed consolidated balance sheet. The Credit Facility is scheduled to mature in September 2024, subject to acceleration as described above. The Company was in compliance with all Credit Facility covenants as of March 31, 2019 . Senior Unsecured Notes On March 21, 2018, the Company issued the Notes, which bear interest at 10.25% per annum and mature on April 15, 2023. Interest is payable semi-annually on April 15 and October 15, beginning on October 15, 2018, and principal is repaid in full upon maturity. The proceeds of the Notes were used to prepay the outstanding Thales Alenia Space bills of exchange, including premiums paid, of approximately $59.9 million issued pursuant to the FSD, replenish the DSRA under the Credit Facility to $189.0 million , and to pay approximately $44.4 million in Thales Alenia Space milestones previously expected to be satisfied by the issuance of bills of exchange. The proceeds of the Notes also provided the Company with sufficient cash to meet its liquidity needs, including principal and interest payments under the Credit Facility. As of March 31, 2019 , the Company reported an aggregate total of $360.0 million in borrowings under the Notes, including $8.5 million of deferred financing costs, for a net balance of $351.5 million in borrowings in the accompanying condensed consolidated balance sheet. As of March 31, 2019, based upon recent trading prices (Level 2 - market approach), the fair value of the Company's $360.0 million in borrowings under the Notes due in 2023 was $396.1 million . The Notes contain covenant requirements that apply to certain permitted financing actions, and are no more restrictive than the covenants in the Credit Facility. The Company was in compliance with all covenant requirements of the Notes as of March 31, 2019 and 2018. Total Debt Total interest incurred during the three months ended March 31, 2019 and 2018 was $36.4 million and $29.1 million , respectively. Interest incurred includes amortization of deferred financing fees of $6.4 million and $6.5 million for the three months ended March 31, 2019 and 2018, respectively. Interest capitalized during the three months ended March 31, 2019 and 2018 was $7.6 million and $28.0 million |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation In May 2017, the Company’s stockholders approved the amendment and restatement of the Company's 2015 Equity Incentive Plan (as so amended and restated, the “Amended 2015 Plan”), primarily to increase the number of shares available under the plan. The Company registered with the SEC an additional 5,199,239 shares of common stock made available for issuance pursuant to the Amended 2015 Plan, bringing the total to 28,402,248 shares registered. On March 31, 2019 , the remaining aggregate number of shares of the Company's common stock available for future grants under the Amended 2015 plan was 6,816,778 . The Amended 2015 Plan provides for the grant of stock-based awards, including nonqualified stock options, incentive stock options, restricted stock, restricted stock units (“RSUs”), stock appreciation rights and other equity securities as incentives and rewards for employees, consultants and non-employee directors of the Company and its affiliated entities. The number of shares of common stock available for issuance under the Amended 2015 Plan is reduced by (i) one share for each share of common stock issued pursuant to an appreciation award, such as a stock option or stock appreciation right with an exercise or strike price of at least 100% of the fair market value of the underlying common stock on the date of grant, and (ii) 1.8 shares for each share of common stock issued pursuant to any stock award that is not an appreciation award, also known as a “full value award.” The Amended 2015 Plan allows the Company to utilize a broad array of equity incentives and performance cash incentives in order to secure and retain the services of its employees, directors and consultants, and to provide long-term incentives that align the interests of its employees, directors and consultants with the interests of the Company’s stockholders. The Company accounts for stock-based compensation at fair value. Stock Option Awards The fair value of stock options is determined at the grant date using the Black-Scholes option pricing model. The stock option awards granted to employees generally (i) have a term of ten years , (ii) vest over four years with 25% vesting after the first year of service and the remainder vesting ratably on a quarterly basis thereafter, (iii) are contingent upon employment on the vesting date, and (iv) have an exercise price equal to the fair value of the underlying shares at the date of grant. During the three months ended March 31, 2019 and 2018, the Company granted approximately 139,000 and 161,000 stock options, respectively, to its employees, with an estimated aggregate grant date fair value of $1.3 million and $0.8 million , respectively. Restricted Stock Units The RSUs granted to employees for service generally vest over four years , with 25% vesting on the first anniversary of the grant date and the remainder vesting ratably on a quarterly basis thereafter, subject to continued employment. The RSUs granted to non-employee directors generally vest in full on the first anniversary of the grant date. Some RSUs granted to employees for performance vest upon the completion of defined performance goals, subject to continued employment. The Company’s RSUs are generally classified as equity awards because the RSUs will be paid in the Company's common stock upon vesting. The related compensation expense is recognized over the service period and is based on the grant date fair value of the Company's common stock and the number of shares expected to vest. The fair value of the awards is not remeasured at the end of each reporting period. The awards do not carry voting rights until they are vested and released in accordance with the terms of the award. Service-Based RSUs The majority of the annual compensation the Company provides to members of its board of directors is paid in the form of RSUs. In addition, certain members of the Company's board of directors elect to receive the remainder of their annual compensation, or a portion thereof, in the form of RSUs. An aggregate amount of approximately 76,000 and 110,000 service-based RSUs were granted to its directors as a result of these payments and elections during the three months ended March 31, 2019 and 2018 , respectively, with an estimated grant date fair value of $1.4 million and $1.3 million , respectively. During the three months ended March 31, 2019 and 2018, the Company granted approximately 629,000 and 900,000 service-based RSUs, respectively, to its employees, with an estimated aggregate grant date fair value of $14.6 million and $10.7 million , respectively. In January 2019, the Company granted approximately 7,000 service-based RSUs to non-employee consultants. The RSUs are generally subject to service-based vesting. The RSUs will vest 50% in January 2020, and the remaining 50% will vest quarterly thereafter through January 2021. The estimated aggregate grant date fair value of the RSUs granted to non-employee consultants during the three months ended March 31, 2019 was $0.1 million. No RSUs were granted to non-employee consultants during the comparable period in 2018. Performance-Based RSUs In March 2019 and 2018, the Company granted approximately 125,000 and 474,000 annual incentive, performance-based RSUs, respectively, to the Company’s executives and employees (the “Bonus RSUs”), with an estimated grant date fair value of $2.9 million and $5.6 million , respectively. Vesting of the Bonus RSUs is and was dependent upon the Company’s achievement of pre-established performance goals over one year (fiscal year 2019 for the 2019 Bonus RSUs and fiscal year 2018 for the 2018 Bonus RSUs), and individual performance. The Company records stock-based compensation expense related to performance-based RSUs when it is considered probable that the performance conditions will be met. Management believes it is probable that substantially all of the 2019 Bonus RSUs will vest. The level of achievement, if any, of performance goals will be determined by the compensation committee of the Company’s board of directors and, if such goals are achieved, the 2019 Bonus RSUs will vest, subject to continued employment, in March 2020. Substantially all of the 2018 Bonus RSUs vested in March 2019 upon the determination of the level of achievement of the performance goals. Additionally, in March 2019 and 2018, the Company granted approximately 96,000 and 134,000 long-term, performance-based RSUs, respectively, to the Company’s executives (the “Executive RSUs”). The estimated aggregate grant date fair value of the Executive RSUs was $2.2 million for the 2019 grants and $1.6 million for the 2018 grants. Vesting of the Executive RSUs is dependent upon the Company’s achievement of specified performance goals over two years (fiscal years 2019 and 2020 for the Executive RSUs granted in 2019 and fiscal years 2018 and 2019 for the Executive RSUs granted in 2018) and further subject to additional time-based vesting. Management believes it is probable that the Executive RSUs will vest at least in part. The vesting of Executive RSUs will ultimately range from 0 % to 150% of the number of shares underlying the Executive RSUs granted based on the level of achievement of the performance goals. If the Company achieves the performance goals, 50% of the Executive RSUs will vest on the second anniversary of the grant date, and the remaining 50% |
Equity Transactions
Equity Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Equity Transactions | Equity Transactions Preferred Stock The Company is authorized to issue 2.0 million shares of preferred stock with a par value of $0.0001 per share. As described below, the Company issued 1.0 million shares of preferred stock in the fourth quarter of 2012 and 0.5 million shares of preferred stock in the second quarter of 2014. The remaining 0.5 million authorized shares of preferred stock remain undesignated and unissued as of March 31, 2019 . Series A Cumulative Perpetual Convertible Preferred Stock In the fourth quarter of 2012, the Company issued 1.0 million shares of its 7.00% Series A Cumulative Perpetual Convertible Preferred Stock (the “Series A Preferred Stock”) in a private offering. During the three months ended March 31, 2018, the Company's daily volume-weighted average stock price remained at or above $12.26 per share for a period of 20 out of 30 trading days, thereby allowing for the conversion of the Series A Preferred Stock at the election of the Company. On March 20, 2018, the Company converted all outstanding shares of its Series A Preferred Stock into shares of common stock, resulting in the issuance of 10,599,974 shares of common stock. The Company declared and paid all current and cumulative dividends to holders of record of Series A Preferred Stock as of March 8, 2018. As such, the Company paid cash dividends of $7.0 million to the holders of the Series A Preferred Stock during the three months ended March 31, 2018. The Company no longer withholds undeclared dividends within this class of preferred stock, as all outstanding shares have been converted into common stock. Series B Cumulative Perpetual Convertible Preferred Stock In May 2014, the Company issued 500,000 shares of its 6.75% Series B Cumulative Perpetual Convertible Preferred Stock (the “Series B Preferred Stock”) in an underwritten public offering at a price to the public of $250 per share. The purchase price received by the Company, equal to $242.50 per share, reflected an underwriting discount of $7.50 per share. The Company received proceeds of $120.8 million from the sale of the Series B Preferred Stock, net of the $3.8 million underwriter discount and $0.4 million of offering costs. As of March 31, 2019 , there were 497,000 shares of Series B Preferred Stock outstanding. Holders of Series B Preferred Stock are entitled to receive cumulative cash dividends at a rate of 6.75% per annum of the $250 liquidation preference per share (equivalent to an annual rate of $16.875 per share). Dividends are payable quarterly in arrears on each March 15, June 15, September 15 and December 15. The Series B Preferred Stock does not have a stated maturity date and is not subject to any sinking fund or mandatory redemption provisions. The Series B Preferred Stock ranks senior to the Company’s common stock with respect to dividend rights and rights upon the Company’s voluntary or involuntary liquidation, dissolution or winding-up. Holders of Series B Preferred Stock generally have no voting rights except for limited voting rights if the Company fails to pay dividends for six or more quarterly periods (whether or not consecutive) and in other specified circumstances. Holders of Series B Preferred Stock may convert some or all of their outstanding Series B Preferred Stock at an initial conversion rate of 33.456 shares of common stock per $250 liquidation preference, which is equivalent to an initial conversion price of approximately $7.47 per share of common stock (subject to adjustment in certain events). In connection with the conversion of the Series A Preferred Stock described above, the Company declared and paid all current and cumulative dividends to holders of record of Series B Preferred Stock as of March 8, 2018. The Company paid cash dividends of zero and $8.4 million to holders of the Series B Preferred Stock during the three months ended March 31, 2019 and 2018, respectively. In compliance with the Credit Facility, subsequent to the $8.4 million dividend payment in March 2018, the Company began the planned suspension of dividends to holders of the Series B Preferred Stock for five quarters, beginning with the dividend payment that otherwise would have been payable on June 15, 2018. On or after May 15, 2019, the Company may, at its option, convert some or all of the Series B Preferred Stock into the number of shares of common stock that are issuable at the then-applicable conversion rate, subject to specified conditions, including (i) a daily volume-weighted average stock price of at least $11.21 per share over a period of 20 trading days in a 30 -day period and (ii) the payment of cumulative dividends. In the event of certain specified fundamental changes, holders of the Series B Preferred Stock will have the right to convert some or all of their shares of Series B Preferred Stock into the greater of (i) a number of shares of the Company’s common stock as subject to adjustment plus the make-whole premium, if any, and (ii) a number of shares of the Company’s common stock equal to the lesser of (a) the liquidation preference divided by the market value of the Company’s common stock on the effective date of such fundamental change and (b) 81.9672 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following table summarizes the Company’s services revenue: Three Months Ended March 31, 2019 2018 (in thousands) Commercial voice and data services $ 48,595 $ 43,730 Commercial IoT data services 22,491 19,783 Hosted payload and other data services 13,865 4,229 Government services 22,000 22,000 Total services $ 106,951 $ 89,742 The following table summarizes the Company’s engineering and support services revenue: Three Months Ended March 31, 2019 2018 (in thousands) Commercial $ 225 $ 81 Government 5,501 3,543 Total $ 5,726 $ 3,624 The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and deferred revenue (contract liabilities) on the condensed consolidated balance sheets. The Company bills amounts under its agreed-upon contractual terms at periodic intervals (for services), upon shipment (for equipment), or upon achievement of contractual milestones or as work progresses (for engineering and support services). Billing may occur subsequent to revenue recognition, resulting in accounts receivable (contract assets). The Company may also receive payments from customers before revenue is recognized, resulting in deferred revenue (contract liabilities). The Company recognized revenue that was previously recorded as deferred revenue in the amounts of $14.5 million and $6.4 million for the three months ended March 31, 2019 and 2018. The Company has also recorded costs of obtaining contracts expected to be recovered in prepaid expenses and other current assets (contract assets or commissions), that are not separately disclosed on the condensed consolidated balance sheets. The commissions are recognized over the estimated prepaid usage period. The contract assets not separately disclosed are as follows: March 31, 2019 December 31, 2018 (in thousands) Contract Assets: Commissions $ 938 $ 1,010 Other contract costs $ 3,740 $ 3,631 The primary impact of adopting the new revenue recognition standard as of January 1, 2018 related to the Company’s prepaid service revenue and associated breakage. Under the new standard, the Company now estimates the expected revenue that will expire unused on an ongoing basis and recognizes this revenue in a manner consistent with the usage period. Upon adoption, the contract liability (deferred revenue associated with prepaid service revenue) was reduced by approximately $15.7 million |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The Company calculates basic net income (loss) per share by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share takes into account the effect of potential dilutive common shares when the effect is dilutive. The effect of potential dilutive common shares, including common stock issuable upon exercise of outstanding stock options, is computed using the treasury stock method. The effect of potential dilutive common shares from the conversion of outstanding convertible preferred securities is computed using the as-if converted method at the stated conversion rate. As noted above, the Series A Preferred Stock was converted into shares of common stock on March 20, 2018. The RSUs granted to members of the Company’s board of directors contain non-forfeitable rights to dividends and therefore are considered to be participating securities in periods of net income. As a result, the calculation of basic and diluted net income (loss) per share excludes net income attributable to the unvested RSUs granted to the Company’s board of directors from the numerator and excludes the impact of the unvested RSUs granted to the Company’s board of directors from the denominator. The computations of basic and diluted net income (loss) per share are as follows: Three Months Ended March 31, 2019 2018 (in thousands, except per share data) Numerator: Net income (loss) attributable to common stockholders $ (20,121 ) $ 7,613 Net income allocated to participating securities — (8 ) Numerator for basic net income (loss) per share (20,121 ) 7,605 Numerator for diluted net income (loss) per share (20,121 ) 7,605 Denominator: Denominator for basic net income (loss) per share - weighted average outstanding common shares 113,038 100,686 Dilutive effect of stock options — 2,172 Dilutive effect of contingently issuable shares — 1,487 Denominator for diluted net income (loss) per share 113,038 104,345 Net income (loss) per share attributable to common stockholders - basic $ (0.18 ) $ 0.08 Net income (loss) per share attributable to common stockholders - diluted $ (0.18 ) $ 0.07 Due to the Company’s net loss for the three months ended March 31, 2019, all potential common stock equivalents were anti-dilutive. For the three months ended March 31, 2019 , 0.3 million unvested performance-based RSUs were not included in the computation of basic and diluted net loss per share as certain performance criteria had not been satisfied, and options to purchase 0.3 million shares of common stock were not included in the computation of diluted net loss per share, as the effect would be anti-dilutive. For the three months ended March 31, 2019 , 16.6 million as-if converted shares of the Series B Preferred Stock were not included in the computation of diluted net loss per share, as the effect would be anti-dilutive. For the three months ended March 31, 2018 , options to purchase 0.3 million shares of common stock were not included in the computation of diluted net income per share, as the effect would be anti-dilutive, and 0.3 million unvested performance-based RSUs were not included in the computation of basic and diluted net income per share, as certain performance criteria had not been satisfied. For the three months ended March 31, 2018, 9.2 million and 16.7 million as-if converted shares of the Series A Preferred Stock and Series B Preferred Stock, respectively, were not included in the computation of diluted net income per share, as the effect would be anti-dilutive. For the three months ended March 31, 2019, $2.1 million unpaid dividends to holders of the Series B Preferred Stock were not declared or accrued as a result of all cash dividends being suspended, but such amounts were deducted to arrive at net loss attributable to common stockholders. For the three months ended March 31, 2018, there were |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure | Related Party Transactions Aireon LLC and Aireon Holdings LLC The Company's satellite constellation hosts the Aireon SM system, which provides a global air traffic surveillance service through a series of automatic dependent surveillance-broadcast (“ADS-B”) receivers. The Company formed Aireon in 2011, with subsequent investments from the air navigation service providers (“ANSPs”) of Canada, Italy, Denmark, Ireland and the United Kingdom, to develop and market this service. Aireon has contracted to pay the Company a fee to host the ADS-B receivers on its constellation, as well as data service fees for the delivery of the air traffic surveillance data. Pursuant to agreements with Aireon, Aireon will pay the Company fees of $200.0 million to host the ADS-B receivers and additional power fees of approximately $2.8 million per year (the “Hosting Agreement”), as well as data services fees of up to approximately $19.8 million per year for the delivery of the air traffic surveillance data (the “Data Services Agreement”). The Aireon ADS-B receivers were activated on an individual basis as the satellite on which the receiver is hosted began carrying traffic. Pursuant to ASU 2016-02, the Company considers the agreement with Aireon related to the hosting as an operating lease. The Company had previously determined there was not sufficient support that Aireon would be able to make the payments due under the Hosting Agreement. Beginning in the second quarter of 2018, the Company began receiving payments due under the Hosting Agreement, and recognizing the related revenue. For the three months ended March 31, 2019, the Company recorded $3.9 million related to this agreement. In December 2018, in connection with Aireon's entry into a debt facility, we and the other Aireon investors contributed our interests in Aireon into a new holding company, Aireon Holdings LLC, and entered into an Amended and Restated Aireon Holdings LLC Agreement. Aireon Holdings holds 100% of the membership interests in Aireon, which remains the operating entity. At March 31, 2019 , the Company had a fully diluted ownership stake in Aireon Holdings of approximately 35.7% , subject to certain redemption provisions contained in the Amended and Restated Limited Liability Company Agreement (the “Aireon Holdings LLC Agreement”). Under the Data Services Agreement, Aireon pays the Company monthly data service payments on a per satellite basis. The Company recorded data service revenue from Aireon of $3.1 million and $1.5 million for the three months ended March 31, 2019 and 2018, respectively. Under two services agreements, the Company also provides administrative services and support services, including services relating to Aireon's hosted payload operations center to Aireon, which are paid monthly. Aireon receivables due to the Company under all agreements totaled $1.4 million and $1.0 million at March 31, 2019 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Adopted Accounting Pronouncements and Accounting Pronouncements Not Yet Adopted | Adopted Accounting Pronouncements Effective January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (“ASU 2016-02”) using the required modified retrospective approach. ASU 2016-02 requires lessees to record most leases on their balance sheets but recognize expenses on their income statements in a manner similar to current accounting. See discussion below under the caption “Leases” in this Note 2 and in Note 5 for more detail on the Company's accounting policy with respect to lease accounting. Effective January 1, 2019, the Company adopted ASU No. 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”), which aligns accounting for share-based payments issued to nonemployees to that of employees under the existing guidance of Topic 718, with certain exceptions. This update supersedes previous guidance for equity-based payments to nonemployees under Subtopic 505-50, Equity - Equity-Based Payments to Non-Employees. The adoption of ASU 2018-07 did not have a material impact on the Company’s condensed consolidated financial statements. |
Fair Value Measurements | Fair Value Measurements The Company evaluates assets and liabilities subject to fair value measurements on a recurring and non-recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgments to be made by management of the Company. The instruments identified as subject to fair value measurements on a recurring basis are cash and cash equivalents, marketable securities, prepaid expenses and other current assets, accounts receivable, accounts payable and accrued expenses and other current liabilities. Fair value is the price that would be received from the sale of an asset or paid to transfer a liability assuming an orderly transaction in the most advantageous market at the measurement date. U.S. GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of observability of inputs used in measuring fair value. The fair value hierarchy consists of the following tiers: • Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; • Level 2, defined as observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The carrying values of short-term financial instruments (primarily cash and cash equivalents, prepaid expenses and other current assets, accounts receivable, accounts payable, and accrued expenses and other current liabilities) approximate their fair values because of their short-term nature. The fair value of the Company’s investments in money market funds approximates its carrying value; such instruments are classified as Level 2 and are included in cash and cash equivalents on the accompanying condensed consolidated balance sheets. |
Revenue Recognition | The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and deferred revenue (contract liabilities) on the condensed consolidated balance sheets. The Company bills amounts under its agreed-upon contractual terms at periodic intervals (for services), upon shipment (for equipment), or upon achievement of contractual milestones or as work progresses (for engineering and support services). Billing may occur subsequent to revenue recognition, resulting in accounts receivable (contract assets). The Company may also receive payments from customers before revenue is recognized, resulting in deferred revenue (contract liabilities). The Company recognized revenue that was previously recorded as deferred revenue in the amounts of $14.5 million and $6.4 million |
Leases of Lessee Disclosure [Text Block] | Leases Upon transition under ASU 2016-02, the Company elected the suite of practical expedients as a package applied to all of its leases, including (i) not reassessing whether any expired or existing contracts are or contain leases, (ii) not reassessing the lease classification for any expired or existing leases, and (iii) not reassessing initial direct costs for any existing leases. For new leases, the Company will determine if an arrangement is or contains a lease at inception. Leases are included as right-of-use (“ROU”) assets within other assets and ROU liabilities within accrued expenses and other liabilities and within other long-term liabilities on the Company’s condensed consolidated balance sheets. ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company’s leases do not provide an implicit rate. The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The ROU asset also includes any lease payments made and excludes lease incentives. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. For certain leases, such as teleport network (“TPN”) facilities, the Company elected the practical expedient to combine lease and non-lease components as a single lease component. Adoption of ASU 2016-02 had an impact of approximately $27.1 million and $30.1 million |
Cash and Cash Equivalents, Re_2
Cash and Cash Equivalents, Restricted Cash and Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Company's Cash and Cash Equivalents | The following table summarizes the Company’s cash and cash equivalents: March 31, 2019 December 31, 2018 Recurring Fair Value Measurement (in thousands) Cash and cash equivalents: Cash $ 10,649 $ 20,879 Money market funds 265,010 252,473 Level 2 Total cash and cash equivalents $ 275,659 $ 273,352 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lessor, Operating Lease, Payments to be Received, Maturity [Table Text Block] | Both Aireon and Harris have made payments for their hosting agreements and will continue to do so. Future income with respect to the Company's operating leases in which it is the lessor existing at March 31, 2019, exclusive of the $5.5 million recognized during the three months ended March 31, 2019, by year and in the aggregate, is as follows: Year Ending December 31, Amount (in thousands) 2019 $ 16,084 2020 21,445 2021 21,445 2022 21,445 2023 21,445 Thereafter 141,797 Total lease income $ 243,661 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Future payment obligations with respect to the Company's operating leases, exclusive of $1.2 million paid during the three months ended March 31, 2019, which were existing at March 31, 2019, by year and in the aggregate, are as follows: Year Ending December 31, Amount (in thousands) 2019 $ 3,837 2020 5,189 2021 5,321 2022 4,837 2023 4,808 Thereafter 17,723 Total lease payments $ 41,715 |
Operating Leases, Right of Use Assets and Liabilities [Table Text Block] | The table below summarizes the Company’s lease-related assets and liabilities: March 31, 2019 Leases Classification (in thousands) Operating lease assets Noncurrent Other assets $ 28,908 Total leased assets 28,908 Operating lease liabilities Current Accrued expenses and other current liabilities 3,155 Noncurrent Other long-term liabilities 28,788 Total lease liabilities $ 31,943 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Company's service revenue | The following table summarizes the Company’s services revenue: Three Months Ended March 31, 2019 2018 (in thousands) Commercial voice and data services $ 48,595 $ 43,730 Commercial IoT data services 22,491 19,783 Hosted payload and other data services 13,865 4,229 Government services 22,000 22,000 Total services $ 106,951 $ 89,742 |
Schedule of recognized contract costs | The contract assets not separately disclosed are as follows: March 31, 2019 December 31, 2018 (in thousands) Contract Assets: Commissions $ 938 $ 1,010 Other contract costs $ 3,740 $ 3,631 |
Summary of Company's Engineering and Support Services Revenue [Table Text Block] | The following table summarizes the Company’s engineering and support services revenue: Three Months Ended March 31, 2019 2018 (in thousands) Commercial $ 225 $ 81 Government 5,501 3,543 Total $ 5,726 $ 3,624 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computations of Basic and Diluted Net Income Per Share | The computations of basic and diluted net income (loss) per share are as follows: Three Months Ended March 31, 2019 2018 (in thousands, except per share data) Numerator: Net income (loss) attributable to common stockholders $ (20,121 ) $ 7,613 Net income allocated to participating securities — (8 ) Numerator for basic net income (loss) per share (20,121 ) 7,605 Numerator for diluted net income (loss) per share (20,121 ) 7,605 Denominator: Denominator for basic net income (loss) per share - weighted average outstanding common shares 113,038 100,686 Dilutive effect of stock options — 2,172 Dilutive effect of contingently issuable shares — 1,487 Denominator for diluted net income (loss) per share 113,038 104,345 Net income (loss) per share attributable to common stockholders - basic $ (0.18 ) $ 0.08 Net income (loss) per share attributable to common stockholders - diluted $ (0.18 ) $ 0.07 |
Significant Accounting Polici_3
Significant Accounting Policies ASU 2016-02 Adoption - Leases (Details) $ in Millions | Jan. 01, 2019USD ($) |
Accounting Policies [Abstract] | |
Right of Use Asset - Cumulative Effect of New Accounting Pronouncement, ASU 2016-02 | $ 27.1 |
Right of Use Liability - Cumulative Effect of New Accounting Pronouncement, ASU 2016-02 | $ 30.1 |
Cash and Cash Equivalents, Re_3
Cash and Cash Equivalents, Restricted Cash and Marketable Securities - Summary of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents: | ||
Cash | $ 10,649 | $ 20,879 |
Total cash and cash equivalents | 275,659 | 273,352 |
Level 2 | ||
Cash and cash equivalents: | ||
Money market funds | $ 265,010 | $ 252,473 |
Cash and Cash Equivalents, Re_4
Cash and Cash Equivalents, Restricted Cash and Marketable Securities - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Abstract] | ||
Restricted cash | $ 193 | $ 191.9 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | Mar. 21, 2018USD ($) | Nov. 30, 2016USD ($)Satellite | Jun. 30, 2010USD ($) | Mar. 31, 2010USD ($)LaunchSatellite | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||
Extinguishment of the Thales bills of exchange | $ 0 | $ 59,936,000 | ||||
Loss on extinguishment of debt | $ 0 | (3,981,000) | ||||
Document Period End Date | Mar. 31, 2019 | |||||
GFZ German Research Centre for Geosciences | Gravity Recovery and Climate Experiment Follow-On Satellites | ||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||
Number of satellites to launch | Satellite | 2 | |||||
Thales Alenia Space France | ||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||
Commitments, price for design and build of satellites | $ 2,300,000,000 | |||||
Purchase Commitment, Remaining Minimum Amount Committed | $ 29,500,000 | |||||
Borrowings under credit facility | 1,500,000,000 | |||||
Thales Alenia Space France | Bills of Exchange | ||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||
Debt instrument face amount | $ 100,000,000 | |||||
Extinguishment of the Thales bills of exchange | $ 59,900,000 | |||||
Loss on extinguishment of debt | 4,000,000 | $ 0 | ||||
Space Exploration Technologies Corp | ||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||
Contract aggregate payments | 504,100,000 | |||||
Space Exploration Technologies Corp | One to Seven Launch with SpaceX | ||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||
Maximum commitment amount | $ 448,900,000 | |||||
Number of satellites carried to orbit for each of initial seven launches | Satellite | 10,000,000 | |||||
Number of launches for agreement | Launch | 7 | |||||
Space Exploration Technologies Corp | GFZ German Research Centre for Geosciences | Eighth Launch with SpaceX | ||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||
Number of additional satellites to launch | Satellite | 5,000,000 | |||||
Commitments price for launching of additional satellites | $ 61,900,000 | |||||
Due from joint venture for Rideshare Project | $ 29,800,000 | |||||
Next Launch And Inorbit Insurers | ||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||
Insurance policy premium | $ 120,700,000 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Leases [Abstract] | ||
Operating Leases, Future Minimum Payments Due | $ 3,837 | |
Operating Lease, Right-of-Use Asset | $ 28,908 | |
Property, Plant and Equipment, Useful Life | 12 years 6 months | |
Operating Lease, Expense | $ 1,200 | $ 1,200 |
Remaining Lease Term - Minimum | 5 months | |
Remaining Lease Term - Maximum | 11 years | |
Lessee, Operating Lease, Renewal Term | 10 years | |
Operating Lease, Weighted Average Remaining Lease Term | 8 years 3 months 10 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 6.67% | |
Operating Lease, Lease Income | $ 5,500 | $ 500 |
Operating Lease, Liability, Current | 3,155 | |
Operating Lease, Liability, Noncurrent | 28,788 | |
Operating Lease, Liability | 31,943 | |
Operating Leases, Future Minimum Payments Receivable, in Two Years | 5,189 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 5,321 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 4,837 | |
Operating Leases, Future Minimum Payments, Due in Five Years | 4,808 | |
Operating Leases, Future Minimum Payments, Due Thereafter | 17,723 | |
Operating Leases, Future Minimum Paymens Due - Total | $ 41,715 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Mar. 21, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Oct. 31, 2010 |
Line of Credit Facility [Line Items] | |||||
Total Debt - Amortization of Deferred Financing Costs | $ 6,400,000 | $ 6,500,000 | |||
Document Period End Date | Mar. 31, 2019 | ||||
Interest Costs Capitalized | $ 7,600,000 | 28,000,000 | |||
Extinguishment of the Thales bills of exchange | 0 | 59,936,000 | |||
Long-term senior unsecured notes, net | 351,477,000 | $ 350,998,000 | |||
Interest Costs Incurred | 36,400,000 | $ 29,100,000 | |||
Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility carrying amount | 1,684,900,000 | $ 1,800,000,000 | |||
Deferred financing costs | 74,300,000 | ||||
Credit facility, net | $ 1,610,600,000 | ||||
Percentage of company's obligations insured | 95.00% | ||||
Minimum required cash reserve balance for credit facility | $ 189,000,000 | $ 189,000,000 | |||
Credit facility delays DSRA contributions | 87,000,000 | ||||
Restricted cash | $ 75,000,000 | ||||
Line of Credit Facility, Periodic Payment, Principal | $ 43,100,000 | ||||
Debt instrument, period of credit facility maturity acceleration | 6 months | ||||
Debt issuance costs, net | $ 10,300,000 | ||||
Line of Credit | Aireon LLC | |||||
Line of Credit Facility [Line Items] | |||||
Cash and cash equivalents balance required for company for repayment of credit facility with hosting fees received | $ 140,000,000 | ||||
Percent of hosting fees required to be used for repayment of credit facility if certain terms are met | 50.00% | ||||
Hosting fees required to be used for repayment of credit facility if certain terms are met | $ 200,000,000 | ||||
Unsecured Notes | |||||
Line of Credit Facility [Line Items] | |||||
Debt issuance costs, net | 8,500,000 | ||||
Debt instrument face amount | $ 360,000,000 | 360,000,000 | |||
Debt instrument interest rate | 10.25% | ||||
Long-term senior unsecured notes, net | 351,500,000 | ||||
Senior Unsecured Notes - Fair Market Value | $ 396,100,000 | ||||
Bills of Exchange | Thales Alenia Space France | |||||
Line of Credit Facility [Line Items] | |||||
Previously expected to be satisfied by Bills of Exchange | $ 44,400,000 | ||||
Debt instrument face amount | 100,000,000 | ||||
Extinguishment of the Thales bills of exchange | $ 59,900,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
May 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, number of additional shares authorized (in shares) | 5,199,239 | ||
Share-based compensation, number of shares authorized (in shares) | 28,402,248 | ||
Share-based compensation, number of shares available for grant (in shares) | 6,816,778 | ||
Share-based compensation, reduction in shares available for issuance by shares issued pursuant to any appreciation award (in shares) | 1 | ||
Share-based compensation, strike price as a percentage of the fair market value of the underlying stock on the date of grant | 100.00% | ||
Share-based compensation, reduction in shares available for issuance by shares issued pursuant to any stock award that is not an appreciation award (in shares) | 1.8 | ||
Employee Stock Option | Employee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, term of award | 10 years | 10 years | |
Share-based compensation, vesting period | 4 years | 4 years | |
Share-based compensation, options granted (in shares) | 139,000 | 161,000 | |
Share-based compensation, grant date fair value of stock options | $ 1.3 | $ 0.8 | |
Employee Stock Option | Employee | Vesting on first anniversary of grant date | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting percentage | 25.00% | 25.00% | |
Employee Stock Option | Employee | Vesting on the last day of each calendar quarter | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting percentage | 6.25% | 6.25% | |
Service Based RSU | Employee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting period | 4 years | 4 years | |
Share-based compensation, restricted stock units granted (in shares) | 629,000 | 900,000 | |
Share-based compensation, fair value of restricted stock units | $ 14.6 | $ 10.7 | |
Service Based RSU | Employee | Vesting on first anniversary of grant date | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting percentage | 25.00% | ||
Share based compensation, percentage of shares that ratably vest after first anniversary of grant date | 25.00% | ||
Service Based RSU | Employee | Vesting on the last day of each calendar quarter | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting percentage | 6.25% | 6.25% | |
Service Based RSU | Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation, percentage of shares that ratably vest after first anniversary of grant date | 100.00% | 100.00% | |
Share-based compensation, restricted stock units granted (in shares) | 76,000 | 110,000 | |
Share-based compensation, fair value of restricted stock units | $ 1.4 | $ 1.3 | |
Service Based RSU | Non Employee Consultants | Vesting on first anniversary of grant date | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting percentage | 50.00% | ||
Service Based RSU | Non Employee Consultants | Vesting on the last day of each calendar quarter | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting percentage | 12.50% | ||
Bonus RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting period | 1 year | 1 year | |
Share-based compensation, restricted stock units granted (in shares) | 125,000 | 474,000 | |
Share-based compensation, fair value of restricted stock units | $ 2.9 | $ 5.6 | |
Performance Based RSU | Executives | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting period | 2 years | 2 years | |
Share-based compensation, restricted stock units granted (in shares) | 96,000 | 134,000 | |
Share-based compensation, fair value of restricted stock units | $ 2.2 | $ 1.6 | |
Performance Based RSU | Executives | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, percentage of award that will vest based on achievement of performance goals | 0.00% | 0.00% | |
Performance Based RSU | Executives | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, percentage of award that will vest based on achievement of performance goals | 150.00% | 150.00% | |
Performance Based RSU | Executives | Vesting on the second anniversary of the grant date | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting percentage | 50.00% | 50.00% | |
Performance Based RSU | Executives | Vesting on the third anniversary of the grant date | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting percentage | 50.00% | 50.00% | |
Scenario, Forecast | Service Based RSU | Non Employee Consultants | Vesting on the last day of each calendar quarter | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, vesting percentage | 12.50% |
Equity Transactions (Details)
Equity Transactions (Details) - USD ($) $ / shares in Units, $ in Millions | May 15, 2019 | May 31, 2014 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2012 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||||||
Preferred stock, shares authorized (in shares) | 2,000,000 | |||||
Preferred stock, par value (in dollars per share) | $ 0.0001 | |||||
Preferred stock, shares issued (in shares) | 500,000 | 1,000,000 | ||||
Shares of preferred stock, undesignated and unissued (in shares) | 500,000 | |||||
Series A Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | ||||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||||
Preferred stock, shares issued (in shares) | 1,000,000 | 1,000,000 | ||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | ||||
Series A Preferred Stock | Private Offering | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares issued (in shares) | 1,000,000 | |||||
Dividend rate on preferred stock | 7.00% | |||||
Annual rate of preferred stock, per share (in dollars per share) | $ 12.26 | |||||
Preferred stock, number of consecutive trading days required for stock conversion | 20 days | |||||
Preferred stock, total number of trading days in stock conversion agreement | 30 days | |||||
Common Stock Issued During Period, Shares, Conversion of Convertible Preferred Stock | 10,599,974 | |||||
Preferred stock dividends, total declared and paid | $ 7 | |||||
Series B Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 | ||||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||||
Preferred stock, shares issued (in shares) | 500,000 | 500,000 | ||||
Preferred stock, shares outstanding (in shares) | 497,000 | 497,000 | ||||
Dividend payment terms, minimum period of unpaid dividends resulting in loss of preferred stock voting rights | 18 months | |||||
Temporary suspension of dividend payments, term | 15 months | |||||
Series B Preferred Stock | Scenario, Forecast | ||||||
Class of Stock [Line Items] | ||||||
Shares of common stock converted at initial conversion (in shares) | 81.9672 | |||||
Series B Preferred Stock | Private Offering | Scenario, Forecast | ||||||
Class of Stock [Line Items] | ||||||
Annual rate of preferred stock, per share (in dollars per share) | $ 11.21 | |||||
Preferred stock, number of consecutive trading days required for stock conversion | 20 days | |||||
Preferred stock, total number of trading days in stock conversion agreement | 30 days | |||||
Series B Preferred Stock | Public Offering | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares issued (in shares) | 500,000 | |||||
Dividend rate on preferred stock | 6.75% | 6.75% | ||||
Annual rate of preferred stock, per share (in dollars per share) | $ 16.875 | |||||
Preferred stock dividends, total declared and paid | $ 0 | $ 8.4 | ||||
Preferred stock, price per share (in dollars per share) | $ 250 | |||||
Preferred stock, purchase price per share (in dollars per share) | 242.50 | |||||
Underwriting discount price per share (in dollars per share) | $ 7.50 | |||||
Proceeds from sale of preferred stock | $ 120.8 | |||||
Payment of underwriter discount | 3.8 | |||||
Aggregate discount and offering costs | $ 0.4 | |||||
Preferred stock, shares outstanding (in shares) | 497,000 | |||||
Preferred stock, liquidation preference per share (in dollars per share) | $ 250 | |||||
Shares of common stock converted at initial conversion (in shares) | 33.456 | |||||
Initial conversion price of common stock (in dollars per share) | $ 7.47 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Jan. 01, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Liability, revenue recognized | $ 14,500 | $ 6,400 | ||
Deferred revenue | $ 39,798 | $ 37,429 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Deferred revenue | $ 15,700 |
Revenue - Summary of Service Re
Revenue - Summary of Service Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 133,685 | $ 119,148 |
Commercial voice and data services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 48,595 | 43,730 |
Commercial IoT data services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 22,491 | 19,783 |
Hosted payload and other data services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 13,865 | 4,229 |
Government services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 22,000 | 22,000 |
Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 106,951 | 89,742 |
Engineering and support services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 5,726 | 3,624 |
Engineering and support services | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 225 | 81 |
Engineering and support services | Government | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 5,501 | $ 3,543 |
Revenue - Summary of Contract C
Revenue - Summary of Contract Costs (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Commissions | ||
Capitalized Contract Cost [Line Items] | ||
Contract Assets | $ 938 | $ 1,010 |
Other contract costs | ||
Capitalized Contract Cost [Line Items] | ||
Contract Assets | $ 3,740 | $ 3,631 |
Revenue - Summary of Impact of
Revenue - Summary of Impact of the Implementation of New Revenue Standard (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Jan. 01, 2018 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Prepaid expenses and other current assets | $ 17,590 | $ 18,284 | ||
Deferred revenue | 39,798 | 37,429 | ||
Deferred revenue, net of current portion | 64,430 | 74,656 | ||
Other long-term liabilities | 30,126 | 4,160 | ||
Retained earnings | 483,688 | $ 501,712 | ||
Income Statement Related Disclosures [Abstract] | ||||
Revenue | 133,685 | $ 119,148 | ||
Income (loss) before income taxes | (27,763) | 15,311 | ||
Income tax benefit (expense) | 9,739 | (3,839) | ||
Net income (loss) | (18,024) | 11,472 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
Balance Sheet Related Disclosures [Abstract] | ||||
Deferred revenue | $ 15,700 | |||
Services | ||||
Income Statement Related Disclosures [Abstract] | ||||
Revenue | 106,951 | 89,742 | ||
Cost of Goods and Services Sold | $ 22,521 | $ 18,952 |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net income (loss) attributable to common stockholders | $ (20,121) | $ 7,613 |
Net income allocated to participating securities | 0 | (8) |
Numerator for basic net income (loss) per share | (20,121) | 7,605 |
Numerator for diluted net income (loss) per share | $ (20,121) | $ 7,605 |
Denominator: | ||
Denominator for basic net income (loss) per share - weighted average outstanding common shares (in shares) | 113,038 | 100,686 |
Dilutive effect of contingently issuable shares (in shares) | 0 | 1,487 |
Denominator for diluted net income per share (in shares) | 113,038 | 104,345 |
Net income (loss) per share attributable to common stockholders - basic (in dollars per share) | $ (0.18) | $ 0.08 |
Net income (loss) per share attributable to common stockholders - diluted (in dollars per share) | $ (0.18) | $ 0.07 |
Equity Option | ||
Denominator: | ||
Dilutive effect of stock options (in shares) | 0 | 2,172 |
Series A Preferred Stock | ||
Denominator: | ||
Antidilutive securities excluded from computation of diluted earnings per share | 9,200 | |
Series B Preferred Stock | ||
Denominator: | ||
Antidilutive securities excluded from computation of diluted earnings per share | 16,700 | |
Preferred Stock Dividends, Anti-Dilutive, Excluded | $ 16,600 | |
Employee Stock Option | ||
Denominator: | ||
Antidilutive securities excluded from computation of diluted earnings per share | 300 | 300 |
Unvested Performance Based Restricted Stock Units | ||
Denominator: | ||
Antidilutive securities excluded from computation of diluted earnings per share | 300 | 300 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Ownership stake | 35.70% | ||
Equity Method Investee | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 1.4 | $ 1 | |
Equity Method Investee | Data Services Agreement | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 3.1 | $ 1.5 | |
Equity Method Investee | Amended Hosting Agreement | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 3.9 | ||
Scenario, Forecast | Equity Method Investee | Hosting Agreement | |||
Related Party Transaction [Line Items] | |||
Hosting fees | 200 | ||
Additional power fees | 2.8 | ||
Data service fees | $ 19.8 |