Document And Entity Information
Document And Entity Information - $ / shares | 3 Months Ended | ||
Mar. 31, 2020 | Apr. 22, 2020 | Dec. 31, 2019 | |
Document Information [Line Items] | |||
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 | ||
Entity Current Reporting Status | Yes | ||
Document Quarterly Report | true | ||
Document Type | 10-Q | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Document Period End Date | Mar. 31, 2020 | ||
Document Fiscal Period Focus | Q1 | ||
Document Fiscal Year Focus | 2020 | ||
Entity Address, Address Line One | 1750 Tysons Boulevard | ||
Entity Address, City or Town | McLean | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 22102 | ||
Document Transition Report | false | ||
Entity Tax Identification Number | 26-1344998 | ||
City Area Code | 703 | ||
Local Phone Number | 703-287-7400 | ||
Entity File Number | 001-33963 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |
Entity Common Stock, Shares Outstanding (in shares) | 132,228,020 | ||
NASDAQ/NGS (GLOBAL SELECT MARKET) [Member] | |||
Document Information [Line Items] | |||
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 67,289 | $ 223,561 |
Accounts receivable, net | 64,485 | 68,697 |
Inventory | 37,695 | 39,938 |
Prepaid expenses and other current assets | 10,793 | 10,739 |
Total current assets | 180,262 | 342,935 |
Property and equipment, net | 3,110,867 | 3,180,799 |
Intangible assets, net | 46,591 | 46,977 |
Other assets | 53,346 | 52,846 |
Total assets | 3,391,066 | 3,623,557 |
Current liabilities: | ||
Short-term secured debt | 16,500 | 10,875 |
Accounts payable | 8,913 | 6,713 |
Accrued expenses and other current liabilities | 26,819 | 49,293 |
Interest payable | 247 | 7,790 |
Deferred revenue | 36,848 | 39,080 |
Total current liabilities | 89,327 | 113,751 |
Long-term secured debt, net | 1,606,881 | 1,412,501 |
Long-term senior unsecured notes, net | 0 | 352,994 |
Deferred income tax liabilities, net | 175,672 | 188,653 |
Deferred revenue, net of current portion | 61,649 | 67,092 |
Other long-term liabilities | 43,744 | 29,284 |
Total liabilities | 1,977,273 | 2,164,275 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.001 par value, 300,000 shares authorized; 132,217 and 131,632 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 132 | 132 |
Additional paid-in capital | 1,136,135 | 1,134,048 |
Retained earnings | 300,267 | 331,969 |
Accumulated other comprehensive loss, net of tax | (22,741) | (6,867) |
Total stockholders' equity | 1,413,793 | 1,459,282 |
Total liabilities and stockholders' equity | $ 3,391,066 | $ 3,623,557 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | |
Preferred stock, shares authorized (in shares) | 2,000,000 | |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 132,227,000 | 131,632,000 |
Common stock, shares outstanding (in shares) | 132,227,000 | 131,632,000 |
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) | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue: | ||
Total revenue | $ 145,287 | $ 133,685 |
Operating expenses: | ||
Research and development | 2,444 | 3,611 |
Selling, general and administrative | 20,825 | 23,841 |
Depreciation and amortization | 75,944 | 72,914 |
Total operating expenses | 133,465 | 135,318 |
Operating income (loss) | 11,822 | (1,633) |
Other expense, net: | ||
Interest expense, net | (26,444) | (25,597) |
Loss on Extinguishment of Debt | (30,209) | (207) |
Other expense, net | 447 | (326) |
Total other expense, net | (56,206) | (26,130) |
Loss before income taxes | (44,384) | (27,763) |
Income tax benefit | 12,682 | 9,739 |
Net loss | (31,702) | (18,024) |
Net loss attributable to common stockholders | $ (31,702) | $ (20,121) |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 132,645 | 113,038 |
Earnings Per Share, Basic and Diluted | $ (0.24) | $ (0.18) |
Comprehensive loss: | ||
Net loss | $ (31,702) | $ (18,024) |
Foreign currency translation adjustments, net of tax | (3,986) | 726 |
Unrealized gain (loss) on marketable securities, net of tax | (11,888) | 0 |
Comprehensive loss | (47,576) | (17,298) |
Series B Preferred Stock | ||
Other expense, net: | ||
Preferred Stock Dividends, Income Statement Impact | 0 | 2,097 |
Services | ||
Revenue: | ||
Total revenue | 115,975 | 106,951 |
Operating expenses: | ||
Cost of Goods and Services Sold | 21,978 | 22,521 |
Subscriber equipment | ||
Revenue: | ||
Total revenue | 22,263 | 21,008 |
Operating expenses: | ||
Cost of Goods and Services Sold | 12,274 | 12,431 |
Engineering and support services | ||
Revenue: | ||
Total revenue | $ 7,049 | $ 5,726 |
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] | AOCI Attributable to Parent [Member] |
Stockholders' Equity Attributable to Parent | $ 1,601,577 | $ 112 | $ 1,108,550 | $ 501,712 | $ (8,797) |
Shares Issued, Value, Share-based Payment Arrangement, before Forfeiture | 1 | 2,126 | |||
Adjustments To Additional Paid In Capital Stock Withheld To Cover Employee Taxes | (3,486) | ||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 3,780 | ||||
Net Income (Loss) Attributable to Parent | (18,024) | (18,024) | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | 726 | 725 | |||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | 0 | ||||
Stockholders' Equity Attributable to Parent | 1,586,699 | 113 | 1,110,970 | 483,688 | (8,072) |
Stockholders' Equity Attributable to Parent | 1,459,282 | 132 | 1,134,048 | 331,969 | (6,867) |
Shares Issued, Value, Share-based Payment Arrangement, before Forfeiture | 0 | 1,171 | |||
Adjustments To Additional Paid In Capital Stock Withheld To Cover Employee Taxes | (3,184) | ||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 4,100 | ||||
Net Income (Loss) Attributable to Parent | (31,702) | (31,702) | |||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent | (3,986) | ||||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | (11,888) | ||||
Stockholders' Equity Attributable to Parent | $ 1,413,793 | $ 132 | $ 1,136,135 | $ 300,267 | $ (22,741) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net Income (Loss) Attributable to Parent | $ (31,702) | $ (18,024) |
Cash flows from operating activities: | ||
Deferred Income Tax Expense (Benefit) | (17,150) | (9,873) |
Depreciation and amortization | 75,944 | 72,914 |
Loss on extinguishment of debt | 30,209 | 207 |
Share-based Payment Arrangement, Noncash Expense | 3,698 | 3,327 |
Amortization of Debt Issuance Costs | 890 | 4,836 |
Other Operating Activities, Cash Flow Statement | (64) | 36 |
Increase (Decrease) in Accounts Receivable | 3,600 | 2,627 |
Increase (Decrease) in Inventories | 2,300 | (7,649) |
Increase (Decrease) in Prepaid Expense and Other Assets | (688) | 821 |
Increase (Decrease) in Other Noncurrent Assets | 2,769 | 671 |
Increase (Decrease) in Accounts Payable | 2,320 | 3,863 |
Increase (Decrease) in Accrued Liabilities and Other Operating Liabilities | (20,117) | (20,195) |
Increase (Decrease) in Interest Payable, Net | (7,071) | 23,400 |
Increase (Decrease) in Deferred Revenue | (6,607) | (8,012) |
Increase (Decrease) in Other Noncurrent Liabilities | 2,482 | (829) |
Net Cash Provided by (Used in) Operating Activities | 40,813 | 48,120 |
Cash flows from investing activities: | ||
Capital expenditures | (9,487) | (34,643) |
Payments to Acquire Other Investments | 0 | (10,000) |
Net cash used in investing activities | (9,487) | (44,643) |
Cash flows from financing activities: | ||
Proceeds from Issuance of Long-term Debt | 202,000 | 0 |
Repayments on the senior unsecured notes, including extinguishment costs | (383,451) | 0 |
Payment of deferred financing fees | (2,562) | 0 |
Proceeds from exercise of stock options | 1,172 | 2,126 |
Tax payment upon settlement of stock awards | (3,184) | (3,486) |
Net cash (used in) provided by financing activities | (186,025) | (1,360) |
Effect of exchange rate changes on cash and cash equivalents | (1,573) | 1,281 |
Net increase in cash and cash equivalents | (156,272) | 3,398 |
Cash, cash equivalents, and restricted cash, beginning of period | 223,561 | 465,287 |
Cash, cash equivalents, and restricted cash, end of period | 67,289 | 468,685 |
Supplemental cash flow information: | ||
Interest paid | 33,366 | 419 |
Interest Paid, Excluding Capitalized Interest, Operating Activities | ||
Income taxes paid, net | 254 | 280 |
Supplemental disclosure of non-cash investing activities: | ||
Property and equipment received but not yet paid for | 2,285 | 2,642 |
Interest capitalized but not yet paid | 0 | 6,084 |
Capitalized amortization of deferred financing costs | 21 | 1,489 |
Capitalized stock-based compensation | $ 402 | $ 452 |
Basis of Presentation and Princ
Basis of Presentation and Principles of Consolidation | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019 , as filed with the SEC on February 25, 2020. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Adopted Accounting Pronouncements Effective January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This guidance introduces a revised approach to the recognition and measurement of credit losses, emphasizing an updated model based on expected losses rather than incurred losses. Adoption of ASU 2016-13 did not have a material impact on the Company's consolidated financial statements and related disclosures and no cumulative adjustment was recorded. Recent Accounting Developments Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This guidance amends certain aspects of the accounting for income taxes. The Company intends to apply the new guidance effective January 1, 2021, as required. The Company is currently evaluating the effect ASU 2019-12 may have on its consolidated financial statements and related disclosures. 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. 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 fair value estimates are based upon certain market assumptions and information available to the Company. The carrying value of the following financial instruments approximated their fair values as of March 31, 2020 and 2019: cash and cash equivalents, prepaid expenses and other current assets, accounts receivable, accounts payable, and accrued expenses and other current liabilities. Fair values approximate their carrying values because of their short-term nature. The Level 2 cash equivalents include money market funds, commercial paper and short-term U.S. agency securities. The Company also classifies its derivative financial instruments as Level 2. 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. Certain leases contain variable contractual obligations as a result of future base rate escalations which are estimated based on observed trends and included within the measurement of present value. 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. Taxes assessed on leases in which the Company is either a lessor or lessee are excluded from contract consideration and variable payments when measuring new lease contracts or remeasuring existing lease contracts. Derivative Financial Instruments The Company uses interest rate swap agreements to manage its exposures to fluctuating interest rate risk on variable rate debt. Derivatives are measured at fair value and are recorded on the balance sheet within other assets and other long-term liabilities. The Company’s derivatives are designated as cash flow hedges, with the effective portion of the changes in fair value of the derivatives recorded in accumulated other comprehensive loss within the Company’s consolidated balance sheets and subsequently recognized in earnings when the hedged items impact earnings. Any ineffective portion of cash flow hedges would be recorded in current earnings. Within the consolidated statement of operations and comprehensive income, the gains and losses related to cash flow hedges are recognized within interest income (expense), net, as this is the same financial statement line item used for any gains or losses associated with the hedged items. Cash flows from hedging activities are included in operating activities within the company’s consolidated statements of cash flows, which is the same category as the items being hedged. See Note 6 for further information. |
Cash and Cash Equivalents, Rest
Cash and Cash Equivalents, Restricted Cash and Marketable Securities | 3 Months Ended |
Mar. 31, 2020 | |
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 following table summarizes the Company’s cash and cash equivalents: March 31, 2020 December 31, 2019 Recurring Fair Value Measurement (in thousands) Cash and cash equivalents: Cash $ 11,247 $ 13,943 Money market funds 56,042 209,618 Level 2 Total cash and cash equivalents $ 67,289 $ 223,561 |
Leases Leases
Leases Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lessor, Operating Leases [Text Block] | Lessor Arrangements Operating leases in which the Company is a lessor consist primarily of hosting agreements with Aireon LLC (see Note 11 ) and L3Harris Technologies, Inc. (“L3Harris”) 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 $5.4 million and $5.5 million during the three months ended March 31, 2020 and 2019, respectively. Lease income is recorded as hosted payload and other data service revenue within service revenue on the Company’s condensed consolidated statements of operations and comprehensive income (loss). Both Aireon and L3Harris have made payments pursuant to 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, 2020 , exclusive of the $5.4 million recognized during the three months ended March 31, 2020 , by year and in the aggregate, is as follows: Year Ending December 31, Amount (in thousands) 2020 16,084 2021 21,445 2022 21,445 2023 21,445 2024 21,445 Thereafter 120,352 Total lease income $ 222,216 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Term Loan and Revolving Facility On November 4, 2019, pursuant to a new loan agreement (the “Credit Agreement”), the Company entered into a $1,450.0 million term loan with various lenders and Deutsche Bank AG New York Branch as the Administrative Agent and the Collateral Agent (the “Term Loan”) and an accompanying $100.0 million revolving loan (the “Revolving Facility”). The Company used the proceeds of the Term Loan, along with its debt service reserve account and cash on hand, to prepay all of the indebtedness outstanding under the loan facility with Bpifrance Assurance Export S.A.S. as well as related expenses. The Term Loan was issued at a price equal to 99.5% of its face value and bears interest at an annual rate of LIBOR plus 3.75% , with a 1.0% LIBOR floor and has a seven-year maturity. Interest is paid monthly on the last business day of the month. Principal is paid quarterly, beginning with the quarter ending June 30, 2020, at a rate of one percent per annum, with the remaining principal due upon maturity. The Revolving Facility bears interest at the same rate (but without a LIBOR floor) if and as drawn, with no original issue discount, a commitment fee of 0.5% per year on the undrawn amount, and a five-year maturity. On February 7, 2020, the Company closed on an additional $200.0 million under its Term Loan. On February 13, 2020, the Company used these proceeds, together with cash on hand, to prepay all of the indebtedness outstanding under the senior unsecured notes (the “Notes”), including premiums for early prepayment. The additional amount is fungible with the original $1,450.0 million , having the same maturity date, interest rate and other terms, but was issued at a 1.0% premium to face value. To prepay the Notes, the Company paid a call price equal to the present value at the redemption rate of (i) 105.125% of the $360.0 million principal amount of the Notes plus (ii) all interest due through the first call date in April 2020, representing a total call premium of $23.5 million , plus all accrued and unpaid interest to the redemption date. As of March 31, 2020, the Company reported an aggregate of $1,650.0 million in borrowings under the Term Loan, before $26.6 million of net unamortized deferred financing costs, for a net principal balance of $1,623.4 million in borrowings in the accompanying condensed consolidated balance sheet. As of March 31, 2020, based upon over-the-counter bid levels (Level 2 - market approach), the fair value of the Company's $1,650.0 million in borrowings under the Term Loan due in 2026 was $1,551.0 million . The Company had not borrowed under the Revolving Facility as of March 31, 2020. The Credit Agreement restricts the Company's ability to incur liens, engage in mergers or asset sales, pay dividends, repay subordinated indebtedness, incur indebtedness, make investments and loans, and engage in other transactions as specified in the Credit Agreement, and also contains a mandatory prepayment mechanism with respect to a portion of the Company's excess cash flow (as defined in the Credit Agreement). The Credit Agreement provides for specified exceptions, baskets measured as a percentage of trailing twelve months of earnings before interest, taxes, depreciation and amortization (“EBITDA”), and unlimited exceptions in the case of incurring indebtedness and liens and making investments, dividend payments, and payments of subordinated indebtedness, as well as a phase-out of the mandatory excess cash flow prepayments, based on achievement and maintenance of specified leverage ratios. The Credit Agreement permits repayment, prepayment, and repricing transactions, subject to a 1% penalty in the event the facility is prepaid or repriced within the first six months. The Credit Agreement contains no financial maintenance covenants with respect to the Term Loan. With respect to the Revolving Facility, the Credit Agreement requires the Company to maintain a consolidated first lien net leverage ratio (as defined in the Credit Agreement) of no greater than 6.25 to 1 if more than 35% of the Revolving Facility has been drawn. The Credit Agreement contains other customary representations and warranties, affirmative and negative covenants, and events of default. Senior Unsecured Notes As of March 31, 2020, the Company had fully paid down the total gross outstanding principal balance of the Notes, as discussed above. As of December 31, 2019, the Company reported an aggregate of $360.0 million in borrowings under the Notes, before $7.0 million of net unamortized deferred financing costs, for a net principal balance of $353.0 million in borrowings in the accompanying condensed consolidated balance sheet. Interest on Debt Total interest incurred during the three months ended March 31, 2020 and 2019 was $27.9 million and $36.4 million , respectively. Interest incurred includes amortization of deferred financing fees of $0.9 million and $6.4 million for the three months ended March 31, 2020 and 2019, respectively. Interest capitalized during the three months ended March 31, 2020 and 2019, was $0.7 million and $7.6 million , respectively. Accrued interest as of March 31, 2020 and December 31, 2019 was $0.2 million and $7.8 million , respectively. |
Derivatives Derivatives
Derivatives Derivatives | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Financial Instruments The Company is exposed to interest rate fluctuations related to its Term Loan. The Company has reduced its exposure to fluctuations in the cash flows associated with changes in the variable interest rates by entering into offsetting positions through the use of interest rate swap contracts which result in recognizing a fixed interest rate for the portion of the Company’s variable rate debt to be hedged. This will reduce the negative impact of increases in the variable rates over the term of the contracts. These financial instruments are not used for trading or other speculative purposes. Historically, the Company has not incurred, and does not expect to incur in the future, any losses as a result of counterparty default. Hedge effectiveness of interest rate swap contracts is based on a long-haul hypothetical derivative methodology and includes all changes in value. The Company formally assesses, both at the hedge’s inception and on an ongoing quarterly basis, whether the designated derivative instruments are highly effective in offsetting changes in the cash flows of the hedged items. When the hedging instrument is sold, expires, is terminated or is exercised, or no longer qualifies for hedge accounting, or is no longer probable, hedge accounting is discontinued prospectively. Interest Rate Swaps On November 27, 2019, the Company executed a long-term interest rate swap (“Swap”) effective through November 2021 to mitigate variability in forecasted interest payments on a portion of the Company’s borrowings under its Term Loan. On the last business day of each month, the Company receives variable interest payments based on one-month LIBOR from the counterparty. The Company also entered into an interest rate swaption agreement (“Swaption”) that, if executed on November 22, 2021, would extend the Company's Swap through November 2026. The Company pays a fixed annual rate of 0.50% for the Swaption and a fixed rate of 1.565% on the Swap. Both the Swap and the Swaption derivative instruments carry a notional amount of $1,000.0 million as of March 31, 2020. The Company designated both the Swap and Swaption as qualifying hedging instruments and accounted for these derivatives as cash flow hedges. At inception, the Swap and Swaption were designated as cash flow hedges for hedge accounting. The unrealized changes in market value are recorded in accumulated other comprehensive income (loss) and reclassified into earnings during the period in which the hedged transaction affects earnings. Over the next 12 months, the Company expects any gains or losses for cash flow hedges reclassified from accumulated other comprehensive income (loss) into earnings to have an immaterial impact on the Company’s condensed consolidated financial statements. Fair Value of Derivative Instruments As of March 31, 2020, the Company had a long-term liability balance for the fair value of the Swap in the amount of $9.3 million , recorded in other long-term liabilities. As of December 31, 2019, the Company had a long-term asset balance for the fair value of the Swap in the amount of $0.8 million , recorded in other long-term assets. As of March 31, 2020 and December 31, 2019, the Company had a long-term liability balance for the fair value of the Swaption in the amount of $6.9 million and $0.9 million , respectively, recorded in other long-term liabilities. During the three months ended March 31, 2020, the Company incurred $1.0 million in net interest expense for both the Swap and the Swaption. The Company did not hold any cash flow hedges during the comparable prior year period. Gains and losses resulting from fair value adjustments to the Swap and Swaption are recorded within accumulated other comprehensive loss within the Company's condensed consolidated balance sheets and reclassified to interest expense on the dates that interest payments become due. Cash flows related to the interest rate swaps are included in cash flows from operating activities on the condensed consolidated statements of cash flows. The amount of unrealized loss, net of a $4.2 million tax impact, recognized in accumulated other comprehensive loss in the condensed consolidated balance sheets related to the Company’s derivative financial instruments was $11.9 million during the three months ended March 31, 2020. There were no gains or losses related to derivative financial instruments during the comparable prior year period. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 7. Stock-Based Compensation In May 2019, 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 2,542,664 shares of common stock made available for issuance pursuant to the Amended 2015 Plan, bringing the total to 30,944,912 shares registered. As of March 31, 2020 , the remaining aggregate number of shares of the Company's common stock available for future grants under the Amended 2015 plan was 11,834,074 . 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 to 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 market value of the underlying shares at the date of grant. The Company did not grant any stock options during the three-month period ended March 31, 2020 . During the three months ended March 31, 2019, the Company granted approximately 139,000 stock options to its employees, with an estimated aggregate grant date fair value of $1.3 million . 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 58,000 and 76,000 service-based RSUs were granted to the Company's directors as a result of these payments and elections during the first quarter of 2020 and 2019 , respectively, with an estimated grant date fair value of $1.4 million , for each period. During the three months ended March 31, 2020 and 2019 , the Company granted approximately 632,000 and 629,000 service-based RSUs, respectively, to its employees, with an estimated aggregate grant date fair value of $17.1 million and $14.6 million , respectively. During the three months ended March 31, 2019 , the Company granted approximately 7,000 RSUs to non-employee consultants that are generally subject to service-based vesting. The RSUs will vest 50% on the first anniversary of the grant date, and the remaining 50% will vest quarterly thereafter through the second anniversary of the grant date. 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 grants have been made to non-employee consultants in 2020. Performance-Based RSUs In March 2020 and 2019, the Company granted approximately 115,000 and 125,000 annual incentive, performance-based RSUs, respectively, to the Company’s executives and employees (the “Bonus RSUs”), with an estimated grant date fair value of $3.1 million and $2.9 million , respectively. Vesting of the Bonus RSUs is and was dependent upon the Company’s achievement of defined performance goals over the respective fiscal year. 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 2020 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 2020 Bonus RSUs will vest, subject to continued employment, in March 2021. Substantially all of the 2019 Bonus RSUs vested in March 2020 upon the determination of the level of achievement of the performance goals. Additionally, in March 2020 and 2019, the Company granted approximately 144,000 and 96,000 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 $3.9 million for the 2020 grants and $2.2 million for the 2019 grants. Vesting of the Executive RSUs is dependent upon the Company’s achievement of specified performance goals over a two-year period (fiscal years 2020 and 2021 for the Executive RSUs granted in 2020 and fiscal years 2019 and 2020 for the Executive RSUs granted in 2019) 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 number of Executive RSUs earned based on performance will vest on the second anniversary of the grant date, and the remaining 50% will vest on the third anniversary of the grant date, in each case, subject to the executive's continued service as of the vesting date. During the three months ended March 31, 2020, the Company awarded approximately 20,000 additional shares underlying performance-based RSUs to the Company's executives for over-achievement of performance goal targets during 2018 and 2019 related to the Executive RSUs granted in 2018. |
Equity Transactions
Equity Transactions | 3 Months Ended |
Mar. 31, 2020 | |
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. 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, 2020 . Series B Cumulative Perpetual Convertible Preferred Stock In May 2014, the Company issued 0.5 million shares of its 6.75% Series B Cumulative Perpetual Convertible Preferred Stock (the “Series B Preferred Stock”) in an underwritten public offering. Holders of Series B Preferred Stock were 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 were payable quarterly in arrears on each March 15, June 15, September 15 and December 15. During the three months ended June 30, 2019, the Company's daily volume-weighted average stock price remained at or above $11.21 per share for a period of 20 out of 30 trading days, allowing for the conversion of the Series B Preferred Stock at the election of the Company. On May 15, 2019, the Company converted all outstanding shares of its Series B Preferred Stock into shares of common stock, resulting in the issuance of 16,627,632 shares of common stock. To convert the stock, the Company declared and paid all current and cumulative dividends to holders of record of Series B Preferred Stock as of May 8, 2019, resulting in a dividend payment of $8.4 million |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following table summarizes the Company’s services revenue: Three Months Ended March 31, 2020 2019 (in thousands) Commercial voice and data services $ 42,240 $ 41,781 Commercial broadband 8,700 6,814 Commercial IoT data services 23,766 22,491 Hosted payload and other data services 16,269 13,865 Government services 25,000 22,000 Total services $ 115,975 $ 106,951 The following table summarizes the Company’s engineering and support services revenue: Three Months Ended March 31, 2020 2019 (in thousands) Commercial $ 997 $ 225 Government 6,052 5,501 Total $ 7,049 $ 5,726 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 $12.4 million and $14.5 million during the three months ended March 31, 2020 and 2019. 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, 2020 December 31, 2019 (in thousands) Contract Assets: Commissions $ 785 $ 1,116 Other contract costs $ 3,156 $ 3,231 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Loss Per Share The Company calculates basic net loss per share by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. In periods of net income, diluted net income per share takes into account the effect of potential dilutive common shares when the effect is dilutive. Potentially dilutive common shares include (i) common stock issuable upon exercise of outstanding stock options, and (ii) contingently issuable RSUs that are convertible into shares of common stock upon achievement of certain service and performance requirements. The effect of potentially dilutive common shares is computed using the treasury stock method. The computations of basic and diluted net loss per share for the three months ended March 31, 2020 and 2019 are as follows: Three Months Ended March 31, 2020 2019 (in thousands, except per share data) Numerator: Net loss attributable to common stockholders - basic and diluted $ (31,702 ) $ (20,121 ) Denominator: Weighted average outstanding common shares - basic and diluted 132,645 113,038 Net loss per share attributable to common stockholders - basic and diluted $ (0.24 ) $ (0.18 ) Due to the Company’s net loss position for the three months ended March 31, 2020 and 2019, all potential common stock equivalents were anti-dilutive and therefore excluded from the calculation of diluted net loss per share. For the three months ended March 31, 2020 , 0.2 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 0.1 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 , 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, and 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. 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 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. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
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 ® 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. In December 2018, in connection with Aireon's entry into a debt facility, the Company and the other Aireon investors contributed their respective interests in Aireon into a new holding company, Aireon Holdings LLC, and entered into an Amended and Restated Aireon Holdings LLC Agreement (the “Aireon Holdings LLC Agreement”). Aireon Holdings LLC holds 100% of the membership interests in Aireon LLC, which remains the operating entity. At March 31, 2020 , the Company had a fully diluted ownership stake in Aireon Holdings LLC of approximately 35.7% , subject to certain redemption provisions contained in the Aireon Holdings LLC Agreement. Aireon has contracted to pay the Company a fee to host the ADS-B receivers on its constellation, as well as fees for power and data services in connection with the delivery of the air traffic surveillance data. Pursuant to an agreement with Aireon (“the Hosting Agreement”), Aireon will pay the Company fees of $200.0 million to host the ADS-B receivers, of which $54.1 million had been paid as of March 31, 2020 , as well as power fees of approximately $3.7 million per year. Pursuant to a separate data transmission services agreement (the “Data Services Agreement”), Aireon also pays the Company monthly data service fees on a per-satellite basis totaling $19.8 million per year for the delivery of the air traffic surveillance data through the Iridium network, as well as specified services relating to Aireon's hosted payload operations center. 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 Hosting Agreement as an operating lease. During the three months ended March 31, 2020 and 2019, the Company recorded $4.0 million and $3.9 million related to this agreement, respectively. For power and data service fees, the Company recorded revenue from Aireon of $6.3 million and $3.1 million for the three months ended March 31, 2020 and 2019, respectively. Under two services agreements, the Company also provides administrative services and support services, which are paid monthly. Aireon receivables due to the Company under all agreements totaled $2.1 million and $1.4 million at March 31, 2020 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Adopted Accounting Pronouncements Effective January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This guidance introduces a revised approach to the recognition and measurement of credit losses, emphasizing an updated model based on expected losses rather than incurred losses. Adoption of ASU 2016-13 did not have a material impact on the Company's consolidated financial statements and related disclosures and no cumulative adjustment was recorded. Recent Accounting Developments Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”). This guidance amends certain aspects of the accounting for income taxes. The Company intends to apply the new guidance effective January 1, 2021, as required. The Company is currently evaluating the effect ASU 2019-12 may have on its consolidated financial statements and related disclosures. |
Fair Value Measurement, Policy [Policy Text Block] | 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. 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 fair value estimates are based upon certain market assumptions and information available to the Company. The carrying value of the following financial instruments approximated their fair values as of March 31, 2020 and 2019: cash and cash equivalents, prepaid expenses and other current assets, accounts receivable, accounts payable, and accrued expenses and other current liabilities. Fair values approximate their carrying values because of their short-term nature. The Level 2 cash equivalents include money market funds, commercial paper and short-term U.S. agency securities. The Company also classifies its derivative financial instruments as Level 2. |
Lessee, Leases [Policy Text Block] | 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. Certain leases contain variable contractual obligations as a result of future base rate escalations which are estimated based on observed trends and included within the measurement of present value. 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. Taxes assessed on leases in which the Company is either a lessor or lessee are excluded from contract consideration and variable payments when measuring new lease contracts or remeasuring existing lease contracts. |
Derivatives, Policy [Policy Text Block] | Derivative Financial Instruments The Company uses interest rate swap agreements to manage its exposures to fluctuating interest rate risk on variable rate debt. Derivatives are measured at fair value and are recorded on the balance sheet within other assets and other long-term liabilities. The Company’s derivatives are designated as cash flow hedges, with the effective portion of the changes in fair value of the derivatives recorded in accumulated other comprehensive loss within the Company’s consolidated balance sheets and subsequently recognized in earnings when the hedged items impact earnings. Any ineffective portion of cash flow hedges would be recorded in current earnings. Within the consolidated statement of operations and comprehensive income, the gains and losses related to cash flow hedges are recognized within interest income (expense), net, as this is the same financial statement line item used for any gains or losses associated with the hedged items. Cash flows from hedging activities are included in operating activities within the company’s consolidated statements of cash flows, which is the same category as the items being hedged. See Note 6 for further information. |
Revenue Revenue (Policies)
Revenue Revenue (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue [Abstract] | |
Revenue [Policy Text Block] | 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 $12.4 million and $14.5 million during the three months ended March 31, 2020 |
Cash and Cash Equivalents, Re_2
Cash and Cash Equivalents, Restricted Cash and Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 December 31, 2019 Recurring Fair Value Measurement (in thousands) Cash and cash equivalents: Cash $ 11,247 $ 13,943 Money market funds 56,042 209,618 Level 2 Total cash and cash equivalents $ 67,289 $ 223,561 |
Leases Leases (Tables)
Leases Leases (Tables) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Leases [Abstract] | |
Operating Lease, Lease Income [Table Text Block] | Future income with respect to the Company's operating leases in which it is the lessor existing at March 31, 2020 , exclusive of the $5.4 million recognized during the three months ended March 31, 2020 , by year and in the aggregate, is as follows: Year Ending December 31, Amount (in thousands) 2020 16,084 2021 21,445 2022 21,445 2023 21,445 2024 21,445 Thereafter 120,352 Total lease income $ 222,216 |
Lessor, Operating Lease, Payment to be Received, Remainder of Fiscal Year | $ 16,084 |
Lessor, Operating Lease, Payment to be Received, Year Two | 21,445 |
Lessor, Operating Lease, Payment to be Received, Year Three | 21,445 |
Lessor, Operating Lease, Payment to be Received, Year Four | 21,445 |
Lessor, Operating Lease, Payment to be Received, Year Five | 21,445 |
Lessor, Operating Lease, Payment to be Received, after Year Five | 120,352 |
Lessor, Operating Lease, Payments to be Received | $ 222,216 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 (in thousands) Commercial voice and data services $ 42,240 $ 41,781 Commercial broadband 8,700 6,814 Commercial IoT data services 23,766 22,491 Hosted payload and other data services 16,269 13,865 Government services 25,000 22,000 Total services $ 115,975 $ 106,951 |
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, 2020 2019 (in thousands) Commercial $ 997 $ 225 Government 6,052 5,501 Total $ 7,049 $ 5,726 |
Schedule of recognized contract costs | The contract assets not separately disclosed are as follows: March 31, 2020 December 31, 2019 (in thousands) Contract Assets: Commissions $ 785 $ 1,116 Other contract costs $ 3,156 $ 3,231 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computations of Basic and Diluted Net Income Per Share | The computations of basic and diluted net loss per share for the three months ended March 31, 2020 and 2019 are as follows: Three Months Ended March 31, 2020 2019 (in thousands, except per share data) Numerator: Net loss attributable to common stockholders - basic and diluted $ (31,702 ) $ (20,121 ) Denominator: Weighted average outstanding common shares - basic and diluted 132,645 113,038 Net loss per share attributable to common stockholders - basic and diluted $ (0.24 ) $ (0.18 ) |
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, 2020 | Dec. 31, 2019 |
Cash and cash equivalents: | ||
Cash | $ 11,247 | $ 13,943 |
Total cash and cash equivalents | 67,289 | 223,561 |
Level 2 | ||
Cash and cash equivalents: | ||
Money market funds | $ 56,042 | $ 209,618 |
Leases Leases (Details)
Leases Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Lessor, Lease, Description [Line Items] | ||
Property, Plant and Equipment, Useful Life | 12 years 6 months | |
Operating Lease, Lease Income | $ 5.4 | $ 5.5 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 3 Months Ended | ||||
Mar. 31, 2020USD ($)Rate | Mar. 31, 2019USD ($) | Feb. 07, 2020USD ($) | Dec. 31, 2019USD ($) | Nov. 04, 2019USD ($) | |
Line of Credit Facility [Line Items] | |||||
Debt instrument face amount | $ 0.010 | $ 0.995 | |||
Debt Instrument, Redemption Price, Percentage | Rate | 105.125% | ||||
Redemption Premium | $ 23,500,000 | ||||
Penalty Rate on Prepayment During First Six Months | Rate | 1.00% | ||||
First Lien Net Leverage Ratio | 6.25 | ||||
Interest Costs Incurred | $ 27,900,000 | $ 36,400,000 | |||
Amortization of Debt Issuance Costs and Discounts | 900,000 | 6,400,000 | |||
Interest Costs Capitalized | 700,000 | $ 7,600,000 | |||
Interest Payable | $ 200,000 | $ 7,800,000 | |||
Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Term | 5 years | ||||
Secured Debt [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Long-term Debt, Gross | $ 1,650,000,000 | $ 200,000,000 | $ 1,450,000,000 | ||
Debt instrument face amount | 1,650,000,000 | $ 1,450,000,000 | |||
Long-term Debt, Fair Value | $ 1,551,000,000 | ||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 3.75% | ||||
Unamortized Deferred Financing Costs | $ 26,600,000 | ||||
Credit Facility Carrying Amount | 1,623,400,000 | ||||
Unsecured Debt [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Long-term Debt, Gross | 360,000,000 | ||||
Extinguishment of Debt, Amount | 360,000,000 | ||||
Unamortized Deferred Financing Costs | 7,000,000 | ||||
Credit Facility Carrying Amount | $ 353,000,000 | ||||
Line of Credit [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Commitment Fee on Revolving Facility | $ 0.005 | ||||
Credit Facility Drawdown Floor for Application of First Lien Net Leverage Ratio | Rate | 35.00% | ||||
Debt Instrument, Name [Domain] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Term | 7 years | ||||
Interest Rate Floor [Member] | Secured Debt [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 1.00% |
Derivatives Derivatives (Detail
Derivatives Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 1,000 | |
Derivative, Gain (Loss) on Derivative, Net | 1 | |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 4.2 | |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ 11.9 | |
Interest Rate Swaption [Member] | ||
Derivative [Line Items] | ||
Derivative, Fixed Interest Rate | 0.50% | |
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 6.9 | $ 0.9 |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, Fixed Interest Rate | 1.565% | |
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 9.3 | |
Interest Rate Cash Flow Hedge Asset at Fair Value | $ 0.8 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
May 31, 2019 | Mar. 31, 2020 | 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) | 2,542,664 | |||
Share-based compensation, number of shares authorized (in shares) | 30,944,912 | |||
Share-based compensation, number of shares available for grant (in shares) | 11,834,074 | |||
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 | Share-based Payment Arrangement, Employee [Member] | ||||
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) | 0 | 139,000 | ||
Share-based compensation, grant date fair value of stock options | $ 0 | $ 1,300,000 | ||
Employee Stock Option | Share-based Payment Arrangement, Employee [Member] | Vesting on first anniversary of grant date | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, vesting percentage, year one | 25.00% | 25.00% | ||
Employee Stock Option | Share-based Payment Arrangement, Employee [Member] | 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, year one | 6.25% | 6.25% | ||
Restricted Stock Units (RSUs) [Member] | Vesting on the last day of each calendar quarter | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, vesting percentage, year one | 150.00% | 150.00% | ||
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Nonemployee [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, grant date fair value of stock options | $ 0 | $ 100,000 | ||
Share-based compensation, restricted stock units granted (in shares) | 0 | 7,000 | ||
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Nonemployee [Member] | Vesting on first anniversary of grant date | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, vesting percentage, year one | 50.00% | 50.00% | ||
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Nonemployee [Member] | 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, year one | 12.50% | 12.50% | ||
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Employee [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, vesting period | 4 years | 4 years | ||
Share-based compensation, grant date fair value of stock options | $ 17,100,000 | $ 14,600,000 | ||
Share-based compensation, restricted stock units granted (in shares) | 632,000 | 629,000 | ||
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Employee [Member] | Vesting on first anniversary of grant date | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, vesting percentage, year one | 25.00% | 25.00% | ||
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Employee [Member] | 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, year one | 6.25% | 6.25% | ||
Restricted Stock Units (RSUs) [Member] | Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, grant date fair value of stock options | $ 1,400,000 | $ 1,400,000 | ||
Share-based compensation, restricted stock units granted (in shares) | 58,000 | 76,000 | ||
Share Based Compensation Arrangement By Share Based Payment Award Ratably Vest After | 100.00% | 100.00% | ||
Performance Based RSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, vesting period | 1 year | 1 year | ||
Share-based compensation, grant date fair value of stock options | $ 3,100,000 | $ 2,900,000 | ||
Performance Based RSU | Share-based Payment Arrangement, Employee [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, restricted stock units granted (in shares) | 115,000 | 125,000 | ||
Performance Based RSU | Executives | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, vesting period | 3 years | 3 years | ||
Share-based compensation, grant date fair value of stock options | $ 3,900,000 | $ 2,200,000 | ||
Share-based compensation, restricted stock units granted (in shares) | 144,000 | 96,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Accelerated Vesting, Number | 20,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Performance Period | 2 years | 2 years | ||
Performance Based RSU | Executives | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, vesting percentage, year one | 0.00% | 0.00% | ||
Performance Based RSU | Executives | Vesting on first anniversary of grant date | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation, vesting percentage, year one | 50.00% | 50.00% | ||
Performance Based RSU | Executives | 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, year one | 50.00% | 50.00% |
Equity Transactions (Details)
Equity Transactions (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
May 31, 2014 | Jun. 30, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2012 | |
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 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 | |||
Series B Preferred Stock | Private Offering | |||||
Class of Stock [Line Items] | |||||
Preferred stock, shares issued (in shares) | 500,000 | ||||
Dividend rate on preferred stock | 6.75% | ||||
Preferred Stock, Liquidation Preference Per Share | $ 250 | ||||
Daily average rate of preferred stock, per share (in dollars per share) | $ 16.875 | ||||
Preferred Stock Redemption Premium | $ 11.21 | ||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 16,627,632 | ||||
Preferred Stock Dividends Declared And Paid Income Statement Impact | $ 8,400,000 | ||||
Series B Preferred Stock | Private Offering | Minimum [Member] | |||||
Class of Stock [Line Items] | |||||
Convertible Preferred Stock, Terms of Conversion | P20D | ||||
Series B Preferred Stock | Private Offering | Maximum [Member] | |||||
Class of Stock [Line Items] | |||||
Convertible Preferred Stock, Terms of Conversion | P30D |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Liability, revenue recognized | $ 12.4 | $ 14.5 |
Revenue - Summary of Service Re
Revenue - Summary of Service Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 145,287 | $ 133,685 |
Commercial voice and data services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 42,240 | 41,781 |
Commercial Broadband Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 8,700 | 6,814 |
Commercial IoT data services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 23,766 | 22,491 |
Hosted payload and other data services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 16,269 | 13,865 |
Government services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 25,000 | 22,000 |
Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 115,975 | 106,951 |
Engineering and support services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 7,049 | 5,726 |
Engineering and support services | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 997 | 225 |
Engineering and support services | US Government [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 6,052 | $ 5,501 |
Revenue - Summary of Contract C
Revenue - Summary of Contract Costs (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Commissions | ||
Capitalized Contract Cost [Line Items] | ||
Contract Assets | $ 785 | $ 1,116 |
Other contract costs | ||
Capitalized Contract Cost [Line Items] | ||
Contract Assets | $ 3,156 | $ 3,231 |
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, 2020 | Mar. 31, 2019 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net loss attributable to common stockholders - basic and diluted | $ (31,702) | $ (20,121) |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 132,645 | 113,038 |
Earnings Per Share, Basic and Diluted | $ (0.24) | $ (0.18) |
Series B Preferred Stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 16,600 | |
Preferred Stock Dividends, Income Statement Impact | $ 0 | $ 2,097 |
Performance Based RSU | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 200 | 300 |
Employee Stock Option | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Antidilutive securities excluded from computation of diluted earnings per share | 100 | 300 |
Related Party Transactions Rela
Related Party Transactions Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Ownership stake | 35.70% | ||
Equity Method Investee | Hosting Agreement | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 4 | $ 3.9 | |
Equity Method Investee | Service Agreements [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 6.3 | $ 3.1 | |
Equity Method Investee | Service, Other [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 2.1 | $ 1.4 | |
Maximum [Member] | Equity Method Investee | Hosting Agreement | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 200 | ||
Maximum [Member] | Equity Method Investee | Power Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 3.7 | ||
Maximum [Member] | Equity Method Investee | Service Agreements [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 19.8 | ||
Minimum [Member] | Equity Method Investee | Hosting Agreement | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 54.1 |