Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 09, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-33963 | ||
Entity Registrant Name | Iridium Communications Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-1344998 | ||
Entity Address, Address Line One | 1750 Tysons Boulevard, Suite 1400 | ||
Entity Address, City or Town | McLean | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 22102 | ||
City Area Code | 703 | ||
Local Phone Number | 287-7400 | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Trading Symbol | IRDM | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5,078.9 | ||
Entity Common Stock, Shares Outstanding | 122,446,386 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for its 2024 annual meeting of stockholders to be filed pursuant to Regulation 14A with the Securities and Exchange Commission not later than 120 days after the registrant’s fiscal year end of December 31, 2023, are incorporated by reference into Part III of this Form 10-K. | ||
Entity Central Index Key | 0001418819 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Financial Statement Error Correction [Flag] | false | ||
NASDAQ/NGS (GLOBAL SELECT MARKET) | |||
Document Information [Line Items] | |||
Security Exchange Name | NASDAQ |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor [Line Items] | |
Auditor Name | KPMG LLP |
Auditor Firm ID | 185 |
Auditor Location | McLean, Virginia |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 71,870 | $ 168,770 |
Accounts receivable, net | 91,715 | 82,273 |
Inventory | 91,135 | 39,776 |
Prepaid expenses and other current assets | 16,364 | 15,385 |
Total current assets | 271,084 | 306,204 |
Total property and equipment, net of accumulated depreciation | 2,195,758 | 2,433,305 |
Equity Method Investments | 67,130 | 49,853 |
Other assets | 86,708 | 122,072 |
Intangible assets, net | 41,095 | 42,577 |
Total assets | 2,661,775 | 2,954,011 |
Current liabilities: | ||
Short-Term Debt | 15,000 | 16,500 |
Accounts payable | 28,671 | 21,372 |
Accrued expenses and other current liabilities | 54,826 | 67,963 |
Deferred revenue | 33,057 | 35,742 |
Total current liabilities | 131,554 | 141,577 |
Total Long Term Debt, Net | 1,467,490 | 1,470,685 |
Deferred income tax liabilities, net | 114,642 | 151,569 |
Deferred revenue, net of current portion | 43,965 | 45,265 |
Other long-term liabilities | 16,025 | 16,360 |
Total liabilities | 1,773,676 | 1,825,456 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Additional paid-in capital | 1,089,466 | 1,124,610 |
Accumulated deficit | (235,397) | (47,744) |
Accumulated other comprehensive income, net of tax | 33,907 | 51,563 |
Total stockholders’ equity | 888,099 | 1,128,555 |
Total liabilities and stockholders’ equity | 2,661,775 | 2,954,011 |
Common Stock, Shares [Member] | ||
Stockholders' equity: | ||
Common stock, $0.001 par value, 300,000 shares authorized, 122,776 and 125,902 shares issued and outstanding at December 31, 2023 and 2022, respectively | $ 123 | $ 126 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 122,775,823 | 125,901,784 |
Common Stock, Shares, Outstanding | 122,775,823 | 125,901,784 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | |
Preferred Stock, Shares Outstanding | 0 | 0 |
Series B Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | 500,000 | 500,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue: | |||
Total Revenue | $ 790,723,000 | $ 721,034,000 | $ 614,500,000 |
Operating expenses: | |||
Research and development | 20,269,000 | 16,218,000 | 11,885,000 |
Selling, general and administrative | 143,706,000 | 123,504,000 | 100,474,000 |
Depreciation and amortization | 320,000,000 | 303,484,000 | 305,431,000 |
Total operating expenses | 709,095,000 | 644,355,000 | 568,186,000 |
Operating income | 81,628,000 | 76,679,000 | 46,314,000 |
Other income (expense): | |||
Interest expense, net | (90,387,000) | (65,089,000) | (73,906,000) |
Gain (Loss) on Extinguishment of Debt | 0 | (1,187,000) | (879,000) |
Other income (expense), net | 4,012,000 | 107,000 | (417,000) |
Total other expense | (86,375,000) | (66,169,000) | (75,202,000) |
Income (loss) before income taxes and equity in net earnings of affiliates | (4,747,000) | 10,510,000 | (28,888,000) |
Income tax benefit (expense) | (26,251,000) | 292,000 | (19,569,000) |
Loss on equity method investments | (6,089,000) | (1,496,000) | 0 |
Net Income (Loss) Attributable to Parent, Total | $ 15,415,000 | $ 8,722,000 | $ (9,319,000) |
Weighted average shares outstanding - basic | 125,598 | 128,255 | 133,530 |
Weighted Average Number of Shares Outstanding, Diluted | 127,215 | 130,134 | 133,530 |
Earnings Per Share, Basic and Diluted | $ 0.12 | $ 0.07 | $ (0.07) |
Comprehensive income (loss): | |||
Net income (loss) | $ 15,415,000 | $ 8,722,000 | $ (9,319,000) |
Foreign currency translation adjustments | (58,000) | (53,000) | (280,000) |
Unrealized gain (loss) on cash flow hedges, net of tax | (17,598,000) | 58,668,000 | 10,408,000 |
Comprehensive income (loss) | (2,241,000) | 67,337,000 | 809,000 |
Services | |||
Revenue: | |||
Total Revenue | 584,454,000 | 534,721,000 | 491,991,000 |
Operating expenses: | |||
Cost of Goods and Services Sold | 158,710,000 | 115,137,000 | 97,020,000 |
Subscriber equipment | |||
Revenue: | |||
Total Revenue | 105,136,000 | 134,714,000 | 92,071,000 |
Operating expenses: | |||
Cost of Goods and Services Sold | 66,410,000 | 86,012,000 | 53,376,000 |
Engineering and support services | |||
Revenue: | |||
Total Revenue | $ 101,133,000 | $ 51,599,000 | $ 30,438,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock, Shares [Member] | Common Stock, Amount | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Common Stock, Shares, Outstanding | 134,056,000 | |||||
Total stockholders’ equity | $ 1,419,439 | $ 134 | $ 1,160,570 | $ (17,180) | $ 275,915 | |
Stock-based compensation | 29,616 | 29,616 | ||||
Shares Issued, Value, Share-based Payment Arrangement, before Forfeiture | 7,443 | 1 | 7,442 | |||
Stock options exercised and awards vested (in shares) | 1,769,000 | |||||
Adjustments To Additional Paid In Capital Stock Withheld To Cover Employee Taxes | (5,918) | (5,918) | ||||
Stock withheld to cover employee taxes (in shares) | 144,000 | |||||
Repurchases and retirements of common stock | (163,442) | (4) | (37,652) | (125,786) | ||
Stock Repurchased and Retired During Period, Shares | (4,339,000) | |||||
Net income (loss) | (9,319) | (9,319) | ||||
Foreign currency translation adjustments | (280) | (280) | ||||
Unrealized gain (loss) on cash flow hedges, net of tax | 10,408 | 10,408 | ||||
Common Stock, Shares, Outstanding | 131,342,000 | |||||
Total stockholders’ equity | 1,287,947 | 131 | 1,154,058 | (7,052) | 140,810 | |
Stock-based compensation | 48,367 | 48,367 | ||||
Shares Issued, Value, Share-based Payment Arrangement, before Forfeiture | 3,872 | 2 | 3,870 | |||
Stock options exercised and awards vested (in shares) | 1,484,000 | |||||
Adjustments To Additional Paid In Capital Stock Withheld To Cover Employee Taxes | (5,293) | (5,293) | ||||
Stock withheld to cover employee taxes (in shares) | 130,000 | |||||
Repurchases and retirements of common stock | (257,059) | (7) | (59,776) | (197,276) | ||
Stock Repurchased and Retired During Period, Shares | (6,794,000) | |||||
Net income (loss) | 8,722 | 8,722 | ||||
Dividends | (16,616) | (16,616) | ||||
Foreign currency translation adjustments | (53) | (53) | ||||
Unrealized gain (loss) on cash flow hedges, net of tax | $ 58,668 | 58,668 | ||||
Common Stock, Shares, Outstanding | 125,901,784 | 125,902,000 | ||||
Total stockholders’ equity | $ 1,128,555 | 126 | 1,124,610 | 51,563 | (47,744) | |
Stock-based compensation | 64,139 | 64,139 | ||||
Shares Issued, Value, Share-based Payment Arrangement, before Forfeiture | 3,958 | 2 | 3,956 | |||
Stock options exercised and awards vested (in shares) | 1,788,000 | |||||
Adjustments To Additional Paid In Capital Stock Withheld To Cover Employee Taxes | (9,680) | (9,680) | ||||
Stock withheld to cover employee taxes (in shares) | 162,000 | |||||
Repurchases and retirements of common stock | (247,019) | (5) | (43,946) | (203,068) | ||
Stock Repurchased and Retired During Period, Shares | (4,752,000) | |||||
Net income (loss) | 15,415 | 15,415 | ||||
Dividends | (49,613) | (49,613) | ||||
Foreign currency translation adjustments | (58) | (58) | ||||
Unrealized gain (loss) on cash flow hedges, net of tax | $ (17,598) | (17,598) | ||||
Common Stock, Shares, Outstanding | 122,775,823 | 122,776,000 | ||||
Total stockholders’ equity | $ 888,099 | $ 123 | $ 1,089,466 | $ 33,907 | $ (235,397) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 15,415,000 | $ 8,722,000 | $ (9,319,000) |
Deferred income taxes | (31,828,000) | (1,189,000) | (21,314,000) |
Depreciation and amortization | 320,000,000 | 303,484,000 | 305,431,000 |
Loss on extinguishment of debt | 0 | 1,187,000 | 879,000 |
Stock-based compensation (net of amounts capitalized) | 57,455,000 | 43,732,000 | 26,782,000 |
Amortization of deferred financing fees | 3,739,000 | 4,602,000 | 4,201,000 |
Loss on equity method investments | 6,089,000 | 1,496,000 | 0 |
All other items, net | 732,000 | 638,000 | (160,000) |
Accounts receivable | (9,538,000) | (18,712,000) | (1,823,000) |
Inventory | (50,958,000) | (10,183,000) | 3,592,000 |
Prepaid expenses and other current assets | (1,153,000) | (4,227,000) | (1,696,000) |
Other assets | 3,019,000 | 3,441,000 | 3,911,000 |
Accounts payable | 2,759,000 | 4,730,000 | (2,166,000) |
Accrued expenses and other current liabilities | 4,899,000 | 5,929,000 | 7,170,000 |
Deferred revenue | (2,961,000) | 4,871,000 | (7,531,000) |
Other long-term liabilities | (2,756,000) | (3,792,000) | (5,083,000) |
Net cash provided by operating activities | 314,913,000 | 344,729,000 | 302,874,000 |
Cash flows from investing activities: | |||
Capital expenditures | (73,487,000) | (71,267,000) | (42,147,000) |
Investment in related parties | 10,000,000 | 50,000,000 | |
Investment in related parties | 0 | 0 | (1,635,000) |
Sales and maturities of marketable securities | 0 | 0 | 7,400,000 |
Net cash used in investing activities | (83,487,000) | (121,267,000) | (36,382,000) |
Cash flows from financing activities: | |||
Borrowings under the Term Loan | 63,940,000 | 0 | 179,285,000 |
Payments on the Term Loan | (72,315,000) | (116,500,000) | (195,785,000) |
Repurchases of common stock | (247,019,000) | (257,059,000) | (163,442,000) |
Payment of deferred financing fees | (1,162,000) | 0 | (4,052,000) |
Proceeds from exercise of stock options | 3,958,000 | 3,872,000 | 7,443,000 |
Tax payments upon settlement of stock awards | (9,680,000) | (5,293,000) | (5,918,000) |
Payment of common stock dividends | (64,774,000) | 0 | 0 |
Net cash used in financing activities | (327,052,000) | (374,980,000) | (182,469,000) |
Effect of exchange rate changes on cash and cash equivalents | (1,274,000) | (625,000) | (288,000) |
Net increase (decrease) in cash and cash equivalents and restricted cash | (96,900,000) | (152,143,000) | 83,735,000 |
Cash, cash equivalents and restricted cash, beginning of period | 168,770,000 | 320,913,000 | 237,178,000 |
Cash, cash equivalents and restricted cash, end of period | 71,870,000 | 168,770,000 | 320,913,000 |
Supplemental cash flow information: | |||
Interest paid, net of amounts capitalized | 91,936,000 | 63,880,000 | 72,195,000 |
Income taxes paid, net | 4,225,000 | 2,224,000 | 1,784,000 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Property and equipment received but not paid for yet | 7,070,000 | 5,697,000 | 8,225,000 |
Capitalized stock-based compensation | 6,684,000 | 4,635,000 | 2,834,000 |
Dividends accrued on common stock | $ 1,315,000 | $ 16,616,000 | $ 0 |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Organization and Business Iridium Communications Inc. (the “Company”), a Delaware corporation, offers voice and data communications services and products to businesses, U.S. and international government agencies and other customers on a global basis. The Company is a provider of mobile voice and data communications services via a constellation of low earth orbiting satellites. The Company holds various licenses and authorizations from the U.S. Federal Communications Commission (the “FCC”) and from foreign regulatory bodies that permit the Company to conduct its business, including the operation of its satellite constellation. The Company’s operations are conducted through, and its operating assets are owned by, its principal operating subsidiary, Iridium Satellite LLC (“Iridium Satellite”), Iridium Satellite’s immediate parent, Iridium Holdings LLC, and their subsidiaries. As a result, there are no material differences between the information presented in these consolidated financial statements of the Company and the financial information of Iridium Holdings, Iridium Satellite and their subsidiaries, on a consolidated basis, other than as a result of tax provisions as a result of Iridium Holdings, Iridium Satellite and their subsidiaries being classified as flow-through entities for U.S. federal income tax purposes. |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Basis of Presentation | Significant Accounting Policies and Basis of Presentation Principles of Consolidation and Basis of Presentation The Company has prepared the consolidated financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The accompanying 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. The Company has reclassified certain items in the consolidated financial statements for the prior periods to be comparable with the classification for the year ended December 31, 2023. These reclassifications had no effect on previously reported net income (loss). Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates and assumptions, including those related to revenue recognition, the useful lives and recoverability of long-lived and intangible assets, income taxes, stock-based compensation, the incremental borrowing rate for its leases, and contingencies, among others. The Company bases these estimates on historical and anticipated results, trends, and various other assumptions that it believes are reasonable, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities and recorded revenues and expenses. Actual results could differ materially from those estimates. Recent Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). This guidance improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The Company intends to apply the new guidance effective for the year ending December 31, 2024, as required. The Company is assessing the potential effects of the standard but has not yet completed its review of the impact of this guidance. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). The amendments in ASU 2023-09 address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The Company intends to apply the new guidance effective for the year ending December 31, 2025, as required. The Company is currently evaluating the effect ASU 2023-09 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. 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 values of the following financial instruments approximated their fair values as of December 31, 2023 and 2022: 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. In determining fair value of Level 2 assets, the Company uses a market approach utilizing valuation models that incorporate observable inputs such as interest rates, bond yields and quoted prices for similar assets. Leases For new leases, the Company determines 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 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 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. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and receivables. The majority of cash is invested into a money market fund with U.S. treasuries, agency mortgage backed securities and/or U.S. government guaranteed debt. While the Company maintains its cash and cash equivalents with financial institutions with high credit ratings, it often maintains those deposits in federally insured financial institutions in excess of federally insured limits. The Company performs credit evaluations of its customers’ financial condition and records reserves to provide for estimated credit losses. Accounts receivable are due from both domestic and international customers. 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, regular interest bearing depository accounts and non-interest bearing depository accounts, are classified as cash and cash equivalents on the accompanying consolidated balance sheets. Investments Investments where the Company has the ability to exercise significant influence, but does not control, are accounted for under the equity method of accounting and are included in Equity Method Investments on the Company’s consolidated balance sheets. Significant influence typically exists if the Company’s has a 20% to 50% ownership interest in the investee. Under this method of accounting, the Company’s share of the net earnings (losses) of the investee is included in loss on equity method investments on the consolidated statement of operations and comprehensive income (loss). Investments where the Company has less than 20% ownership interest in the investee and lacks the ability to exercise significant influence are accounted for under ASC 321-10-35, Investments - Equity Securities. Under this topic, the Company’s investment equals its cost, less impairment, if any. For investments without a readily determinable fair value, the Company performs a qualitative assessment to determine if any impairment indicator is present. If an indicator is present, the Company determines whether fair value was less than the investment’s carrying value. If the fair value is less than its carrying value or if there is an observable price change through a similar security from the same issuer, the Company would record an impairment charge. Accounts Receivable Trade accounts receivable are recorded at the invoiced amount and are subject to late fee penalties. Management develops its estimate of an allowance for uncollectible receivables based on the Company’s experience with specific customers, aging of outstanding invoices, its understanding of customers’ current economic circumstances and its own judgment as to the likelihood that the Company will ultimately receive payment. The Company writes off its accounts receivable when balances ultimately are deemed uncollectible. The allowance for doubtful accounts was not material as of December 31, 2023 and 2022. Foreign Currencies Generally, the functional currency of the Company’s foreign consolidated subsidiaries is the local currency. Assets and liabilities of its foreign subsidiaries are translated to U.S. dollars based on exchange rates at the end of the reporting period. Income and expense items are translated at the weighted-average exchange rates prevailing during the reporting period. Translation adjustments are accumulated in a separate component of stockholders’ equity. Transaction gains or losses are classified as other income (expense), net in the accompanying consolidated statements of operations and comprehensive income (loss). In instances where the financial statements of a foreign entity in a highly inflationary economy are material, they are remeasured as if the functional currency were the reporting currency. In these instances, the financial statements of those entities are remeasured into the reporting currency. A highly inflationary economy is one that has cumulative inflation of approximately 100% or more over a three-year period. Deferred Financing Costs Direct and incremental costs incurred in connection with securing debt financing are deferred and are amortized as additional interest expense using the effective interest method over the term of the related debt. Capitalized Interest During the development and construction periods of a project, such as the financing of the Company’s current satellite constellation, the Company capitalizes interest. Capitalization ceases when the asset is ready for its intended use or when these activities are substantially suspended. If some portions of a project are substantially complete and ready for use and other portions have not yet reached that stage, the Company ceases capitalizing costs on the completed portion of the project but continues to capitalize for the incomplete portion of the project. Inventory Inventory consists primarily of finished goods, although the Company also maintains an inventory of raw materials from third-party manufacturers. The Company outsources manufacturing of subscriber equipment to a third-party manufacturer and purchases accessories from third-party suppliers. The Company’s cost of inventory includes an allocation of overhead, including payroll and payroll-related costs of employees directly involved in bringing inventory to its existing condition, and freight. Inventories are valued using the average cost method and are carried at the lower of cost or net realizable value. The Company’s expense for excess and obsolete inventory was not material during the years ended December 31, 2023, 2022 or 2021. The Company has a manufacturing agreement with Benchmark Electronics Inc. (“Benchmark”) to manufacture most of its subscriber equipment. Pursuant to the agreement, the Company may be required to purchase excess materials at cost plus a contractual markup if the materials are not used in production within the periods specified in the agreement. Benchmark will then repurchase such materials from the Company at the same price paid by the Company, as required for the production of the subscriber equipment. The following table summarizes the Company’s inventory balance: December 31, 2023 2022 (In thousands) Finished goods $ 48,698 $ 17,964 Raw materials 43,599 23,014 Inventory valuation reserve (1,162) (1,202) Total $ 91,135 $ 39,776 The Company’s raw materials balance includes $32.2 million and $9.0 million at December 31, 2023 and December 31, 2022, respectively, of inventory held on consignment at third-party manufacturers. Stock-Based Compensation The Company accounts for stock-based compensation at estimated fair value. The fair value of stock options is determined at the grant date using the Black-Scholes-Merton option pricing model. The fair value of restricted stock units (“RSUs”) is equal to the closing price of the underlying common stock on the grant date. The fair value of an award that is ultimately expected to vest is recognized on a straight-line basis over the requisite service or performance period and is classified in the consolidated statements of operations and comprehensive income (loss) in a manner consistent with the classification of the recipient’s compensation. The expected vesting of the Company’s performance-based RSUs is based upon the probability that the Company achieves the defined performance goals. The level of achievement of performance goals, if any, is determined by the Compensation Committee. Stock-based awards to non-employee consultants are expensed at their grant-date fair value as services are provided according to the terms of their agreements and are classified in selling, general and administrative expenses in the accompanying consolidated statements of operations and comprehensive income (loss). The following table presents the classification of stock-based compensation by line item on the balance sheet and statement of operations: As of and For Year Ended December 31, 2023 2022 (In thousands) Property and equipment, net $ 5,963 $ 4,018 Inventory 721 617 Cost of subscriber equipment 60 69 Cost of services (exclusive of depreciation and amortization) 16,128 12,337 Research and development 1,282 648 Selling, general and administrative 39,985 30,678 Total stock-based compensation $ 64,139 $ 48,367 Property and Equipment Property and equipment is carried at cost less accumulated depreciation. The Company calculates depreciation expense using the straight-line method over the useful lives of each asset. The Company applies judgment in determining the useful lives based on factors such as engineering data, long-term strategy for using the assets, the manufacturer’s estimated design life for the assets, laws and regulations that could impact the useful lives of the assets and other economic factors. The Company assesses the current estimated operational life of the satellites, including the potential impact of environmental factors on the satellites, ongoing operational enhancements and software upgrades when evaluating the useful lives of its satellites. Additionally, the Company reviews engineering data relating to the operation and performance of its satellite network. During the fourth quarter of 2023, the Company updated its estimate of the satellites’ remaining useful lives based on the health of the constellation and related engineering data. As a result, the estimated useful lives of the satellites were extended by five years, from 12.5 years to 17.5 years. The impact of this change for the year ended December 31, 2023 was a decrease in depreciation expense of approximately $27.8 million and a decrease in hosted payload and other service revenue of approximately $2.3 million. For the year ended December 31, 2023, the impact of the change in useful lives of the satellites resulted in an increase in basic and diluted net income per share of $0.21 and $0.20, respectively. During the quarter ended June 30, 2023, the Company launched five of its remaining six ground spare satellites. Following completion of successful on-orbit testing of the five launched satellites, the Company has no plans to use, develop or launch the remaining ground spare. As the Company believed the construction-in-progress associated with the remaining ground spare satellite would no longer be used, the Company wrote off the full amount remaining in construction-in-progress for that satellite by recording accelerated depreciation expense of $37.5 million, which more than offset the decrease in depreciation expense related to the increase in estimated useful lives of the satellites described above. Repairs and maintenance costs are expensed as incurred. Derivative Financial Instruments The Company uses derivatives (interest rate swap, swaption, cap) to manage its exposure to fluctuating interest rate risk on variable rate debt. Its derivatives are measured at fair value and are recorded on the consolidated balance sheets within assets and other current liabilities. When the Company’s derivatives are designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives are recorded in accumulated other comprehensive income (loss) within the Company’s consolidated balance sheets and subsequently recognized in earnings when the hedged items impact earnings. Any ineffective portion of a derivative’s change in fair value will be recognized in earnings in the same period in which the hedged interest payments affect earnings. Within the consolidated statements of operations and comprehensive income (loss), 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 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 item being hedged. See Note 8 for further information. Long-Lived Assets The Company assesses its long-lived assets for impairment when indicators of impairment exist. Recoverability of assets is measured by comparing the carrying amounts of the assets to the future undiscounted cash flows expected to be generated by the assets. Any impairment loss would be measured as the excess of the assets’ carrying amount over their fair value. Intangible Assets The Company’s intangible assets with finite lives are amortized over their useful lives and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If any indicators were present, the Company would test for recoverability by comparing the carrying amount of the asset to the net undiscounted cash flows expected to be generated from the asset. If those net undiscounted cash flows do not exceed the carrying amount (i.e., the asset is not recoverable), the Company would perform the next step, which is to determine the fair value of the asset and record an impairment loss, if any. The Company evaluates the useful lives for these intangible assets each reporting period to determine whether events and circumstances warrant a revision in their remaining useful lives. The Company’s intangible assets with indefinite lives are not amortized but are tested for impairment annually, or more frequently if events or changes in circumstances indicate the asset may be impaired. The Company’s trade names, spectrum and licenses are expected to generate cash flows indefinitely. Revenue Recognition The Company derives its revenue primarily as a wholesaler of satellite communications products and services. The primary types of revenue include (i) service revenue (access and usage-based airtime fees), (ii) subscriber equipment revenue, and (iii) revenue generated by providing engineering and support services to commercial and government customers. In addition to the discussion immediately below, see Note 11 for further discussion of the Company’s revenue recognition. Wholesaler of satellite communications products and services Pursuant to wholesale agreements, the Company sells its products and services to service providers and recognizes revenue as it fulfills its performance obligations to the service providers, based an amount that reflects the consideration to which it expects to be entitled to in exchange for those products and services. The service providers, in turn, sell the products and services to other distributors or directly to the end users. The Company recognizes revenue when an arrangement exists, services or equipment are transferred, the transaction price is determined, the arrangement has commercial substance, and collection of consideration is probable. Contracts with multiple performance obligations At times, the Company sells services and equipment through arrangements that bundle equipment, airtime and other services. For these revenue arrangements, when the Company sells services and equipment in bundled arrangements and determines that it has separate distinct performance obligations, the Company allocates the bundled contract price among the various performance obligations based on each deliverable’s stand-alone selling price. If the stand-alone selling price is not directly observable, the Company estimates the amount to be allocated for each performance obligation based on observable market transactions or the residual approach. When the Company determines the performance obligations are not distinct, the Company recognizes revenue on a combined basis. To the extent the Company’s contracts include variable consideration, the transaction price includes both fixed and variable consideration. The variable consideration contained within the Company’s contracts with customers may include discounts, credits and other similar items. When a contract includes variable consideration, the Company evaluates the estimate of the variable consideration to determine whether the estimate needs to be constrained; therefore, the Company includes the variable consideration in the transaction price only to the extent that it is probable that a significant reversal of the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Variable consideration estimates are updated at the end of each quarter. Service revenue sold on a stand-alone basis Service revenue is generated from the Company’s service providers through usage of its satellite system and through fixed monthly access fees per user charged to service providers. Revenue for usage is recognized when usage occurs and is billed in arrears with payments generally submitted within 30 days. Revenue for fixed-per-user access fees is billed monthly in advance and generally recognized over the month, or related usage period, in which the services are provided to the end user. The Company sells prepaid services in the form of e-vouchers and prepaid cards. A liability is established equal to the cash paid upon purchase for the e-voucher or prepaid card. The Company recognizes revenue from (i) the prepaid services upon the use of the e-voucher or prepaid card by the customer and (ii) the estimated pattern of use. The Company does not offer refunds for unused prepaid services. Services sold to the U.S. government The Company provides airtime and airtime support to U.S. government and other authorized customers pursuant to the Enhanced Mobile Satellite Services (“EMSS”) contract managed by the U.S. Space Force. Under the terms of this agreement, authorized customers continue to utilize airtime services, provided through the U.S. government’s dedicated gateway. These services include unlimited global standard and secure voice, low and high-speed data, paging, broadcast and Distributed Tactical Communications Services (“DTCS”) services for an unlimited number of Department of Defense (“DoD”) and other federal subscribers. Under this contract, revenue is based on the annual fee for the fixed-price contract with unlimited subscribers and is recognized on a straight-line basis over each contractual year, with equal payments submitted monthly. The U.S. government purchases its subscriber equipment from third-party distributors and not directly from the Company. Subscriber equipment sold on a stand-alone basis The Company recognizes subscriber equipment sales and the related costs when title to the equipment (and the risks and rewards of ownership) passes to the customer, typically upon shipment. Customers are billed when inventory is shipped, and payment is generally due within 30 days. Customers do not have rights of return without prior consent from the Company. Government engineering and support services The Company provides maintenance services to the U.S. government’s dedicated gateway. This revenue is recognized ratably over the periods in which the services are provided; the related costs are expensed as incurred. Other government and commercial engineering and support services The Company also provides engineering services to assist customers in developing new technologies for use on the Company’s satellite system. Fees to customers under these agreements are generally based on milestones, and payments are submitted as milestones are achieved. The revenue associated with fixed-fee contracts is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying its performance obligation. The Company does not include purchases of goods from a third party in its evaluation of costs incurred. Incurred costs represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. The revenue associated with cost-plus-fixed-fee contracts is recognized to the extent of estimated costs incurred plus the applicable fees earned. The Company considers fixed fees under cost-plus-fixed-fee contracts to be earned in proportion to the allowable costs incurred in performance of the contract. Research and Development Research and development costs are charged to expense in the period in which they are incurred. Advertising Costs Costs associated with advertising and promotions are expensed as incurred. Advertising expenses were $1.4 million, $1.7 million and $1.9 million for the years ended December 31, 2023, 2022 and 2021, respectively. Income Taxes The Company accounts for income taxes using the asset and liability approach, which requires the recognition of tax benefits or expenses for temporary differences between the financial reporting and tax bases of assets and liabilities. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company also recognizes a tax benefit from uncertain tax positions only if it is “more likely than not” that the position is sustainable based on its technical merits. The Company’s policy is to recognize interest and penalties on uncertain tax positions as a component of income tax expense. 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 potentially dilutive common shares when the effect is dilutive. The effect of potentially dilutive common shares, including common stock issuable upon exercise of outstanding stock options, is computed using the treasury stock method. The effect of potentially dilutive common shares from the conversion of outstanding convertible preferred securities was computed using the as-if converted method at the stated conversion rate. The Company’s unvested RSUs awarded to the board of directors contain non-forfeitable rights to dividends and therefore are considered to be participating securities in periods of net income. The calculation of basic and diluted net income (loss) per share excludes net income attributable to these unvested RSUs from the numerator and excludes the impact of these unvested RSUs from the denominator. |
Cash and Cash Equivalents and M
Cash and Cash Equivalents and Marketable Securities | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents and Marketable Securities | Cash and Cash Equivalents Cash and Cash Equivalents The following table summarizes the Company’s cash and cash equivalents: December 31, Recurring Fair 2023 2022 (In thousands) Cash and cash equivalents: Cash $ 32,526 $ 16,247 Money market funds 39,344 152,523 Level 2 Total cash and cash equivalents $ 71,870 $ 168,770 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment The following table presents the composition of property and equipment: December 31, Useful Life 2023 2022 (In thousands) Satellite system 17.5 years $ 3,242,829 $ 3,197,460 Ground system 5-7 years 70,497 73,890 Equipment 3-5 years 51,788 49,423 Internally developed software and purchased software 3-7 years 332,824 297,538 Building and leasehold improvements 5-39 years 33,433 32,695 Total depreciable property and equipment 3,731,371 3,651,006 Less: accumulated depreciation (1,804,884) (1,538,535) Total depreciable property and equipment, net of accumulated depreciation 1,926,487 2,112,471 Land 8,037 8,037 Construction-in-process: Spare satellites 181,557 225,254 Other construction-in-process 79,677 87,543 Total property and equipment, net of accumulated depreciation $ 2,195,758 $ 2,433,305 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The following table presents identifiable intangible assets: December 31, 2023 Useful Gross Accumulated Net (In thousands) Indefinite life intangible assets: Trade names Indefinite $ 21,195 $ — $ 21,195 Spectrum and licenses Indefinite 14,030 — 14,030 Total 35,225 — 35,225 Definite life intangible assets: Intellectual property 20 years 16,439 (10,987) 5,452 Assembled workforce 7 years 5,678 (5,678) — Patents 14 - 20 years 587 (169) 418 Total 22,704 (16,834) 5,870 Total intangible assets $ 57,929 $ (16,834) $ 41,095 December 31, 2022 Useful Gross Accumulated Net (In thousands) Indefinite life intangible assets: Trade names Indefinite $ 21,195 $ — $ 21,195 Spectrum and licenses Indefinite 14,030 — 14,030 Total 35,225 — 35,225 Definite life intangible assets: Intellectual property 20 years 16,439 (10,347) 6,092 Assembled workforce 7 years 5,678 (4,867) 811 Patents 14 - 20 years 576 (127) 449 Total 22,693 (15,341) 7,352 Total intangible assets $ 57,918 $ (15,341) $ 42,577 Amortization expense was $1.5 million, $1.6 million and $1.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. The following table presents future amortization expense with respect to intangible assets existing at December 31, 2023, by year and in the aggregate: Year ending December 31, Amount (In thousands) 2024 $ 473 2025 473 2026 473 2027 473 2028 473 Thereafter 3,505 Total estimated future amortization expense $ 5,870 |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lessor, Operating Leases | 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 teleport network facilities. Some of the Company’s leases include options to extend the leases for up to 10 years. The Company does not include term extension options as part of its present value calculation of lease liabilities unless it is reasonably certain to exercise those options. As of December 31, 2023, the Company’s weighted-average remaining lease term relating to its operating leases was 4.7 years, and the weighted-average discount rate used to calculate the operating lease liability payment was 6.7%. The following table summarizes the Company’s lease-related assets and liabilities: Leases Classification December 31, 2023 December 31, 2022 (In thousands) Operating lease assets Noncurrent Other assets $ 16,133 $ 16,925 Total lease assets $ 16,133 $ 16,925 Operating lease liabilities Current Accrued expenses and other current liabilities $ 4,327 $ 3,784 Noncurrent Other long-term liabilities $ 14,087 15,801 Total lease liabilities $ 18,414 $ 19,585 During the years ended December 31, 2023, 2022 and 2021, the Company incurred lease expense of $5.2 million, $5.2 million and $5.6 million, respectively. A portion of lease expense during these comparable periods was derived from leases that were not included within the ROU asset and liability balances shown above as they had terms shorter than twelve months and were therefore excluded from balance sheet recognition under ASU 2016-02. The following table presents future payment obligations with respect to the Company’s operating leases in which it was the lessee at December 31, 2023, by year and in the aggregate: Year Ending December 31, Amount (In thousands) 2024 $ 5,548 2025 5,646 2026 3,792 2027 2,226 2028 1,982 Thereafter 2,592 Total lease payments $ 21,786 Lessor Arrangements Operating leases in which the Company is a lessor consist primarily of hosting agreements with Aireon LLC (“Aireon”) (see Note 14 ) and L3Harris Technologies, Inc. (“L3Harris”) for space on the Company’s satellites. These agreements provide for a fee that will be recognized over the estimated useful lives of the satellites, which is now approximately 17.5 years, prospectively from the change in estimated useful lives of the satellites that occurred in the fourth quarter of 2023. Lease income related to these agreements was $19.2 million for the year ended December 31, 2023 and $21.4 million for each of the years ended December 31, 2022 and 2021. The decrease for 2023 as compared to 2022 was solely the result of the change in estimated useful life of the satellites. Lease income is recorded as hosted payload and other data service revenue within service revenue on the Company’s consolidated statements of operations and comprehensive income (loss). The following table presents future income, after giving effect to the extension of estimated useful lives of the satellites, with respect to the Company’s operating leases in which it was the lessor at December 31, 2023, by year and in the aggregate: Year Ending December 31, Amount (In thousands) 2024 $ 12,391 2025 12,391 2026 12,391 2027 12,391 2028 12,391 Thereafter 82,106 Total lease income $ 144,061 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Term Loan and Revolving Facility In September 2023, pursuant to an amended and restated credit agreement (the “Credit Agreement”), the Company refinanced its previously existing term loan resulting in total borrowing of $1,500.0 million (as so amended and restated, the “Term Loan”) in aggregate principal amount with various lenders administered by Deutsche Bank AG and an accompanying $100.0 million revolving loan (the “Revolving Facility”). The Term Loan was issued at a price equal to 99.75% of its face value and bears interest at an annual rate equal to the Secured Overnight Financing Rate (“SOFR”) plus 2.50%, with a 0.75% SOFR floor. The maturity of the Term Loan is in September 2030. The Company typically selects a one-month interest period, with the result that interest is calculated using one-month SOFR. Interest is paid monthly on the last business day of the month. Principal payments, payable quarterly beginning with the quarter ending March 31, 2024, equal $15.0 million per annum (one percent of the full principal amount of the Term Loan), with the remaining principal due upon maturity. The Revolving Facility bears interest at the same rate (but without a SOFR floor) if and as drawn, with no original issue discount, a commitment fee of 0.5% per year on the undrawn amount, which will be reduced to 0.375% if the Company has a consolidated first lien net leverage ratio (as defined in the Credit Agreement) of less than 3.5 to 1, and a maturity date in September 2028. The Company paid $3.8 million of issuance costs to refinance the Term Loan in September 2023, which were deferred and will be amortized through the term of the loan. Lenders making up approximately $16.8 million of the Term Loan did not participate in the refinancing. Those portions of the Term Loan were replaced by new or existing lenders. This resulted in an immaterial loss on extinguishment of debt, as the Company wrote off the unamortized debt issuance costs related to the lenders who were fully repaid in an exchange of principal. The Company deferred an additional $1.2 million of third-party fees associated with the refinancing of the Term Loan and the Revolving Facility. In the fourth quarter of 2022, the Company elected to prepay $100.0 million of principal on the Term Loan. This resulted in a $1.2 million loss on extinguishment of debt, as the Company wrote off the unamortized debt issuance costs related to this prepayment. In the third quarter of 2021, the Company repriced the Term Loan and incurred a $0.9 million loss on extinguishment of debt, as the Company wrote off the unamortized debt issuance costs related to the lenders who were fully repaid in an exchange of principal. As of December 31, 2023 and 2022, the Company reported an aggregate of $1,500.0 million and $1,504.6 million in borrowings under the Term Loan, respectively. These amounts do not include $17.5 million and $17.4 million of net unamortized deferred financing costs as of December 31, 2023 and 2022, respectively. The net principal balance in borrowings in the accompanying consolidated balance sheets as of December 31, 2023 and 2022 amounted to $1,482.5 million and $1,487.2 million, respectively. As of December 31, 2023 and 2022, based upon over-the-counter bid levels (Level 2 - market approach), the fair value of the borrowings under the Term Loan was $1,506.6 million and $1,494.3 million, respectively. The Company had not borrowed under the Revolving Facility as of December 31, 2023 or 2022. 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. The Credit Agreement provides for specified exceptions, including 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, based on achievement and maintenance of specified leverage ratios. The Credit Agreement also contains an annual mandatory prepayment sweep mechanism with respect to a portion of the Company’s excess cash flow (as defined in the Credit Agreement) in the event the Company’s net leverage ratio rises above 3.5 to 1. As of December 31, 2023, the Company was below the specified leverage ratio and therefore no mandatory prepayment sweep was not required. The Credit Agreement permits repayment, prepayment and repricing transactions, subject, in the case of the Term Loan, to a 1% penalty in the event the Term Loan is prepaid or repriced within the first six months from the refinancing date. 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. The Company was in compliance with all covenants as of December 31, 2023. Interest on Debt Total interest incurred includes amortization of deferred financing fees and capitalized interest. The Company incurred third-party financing costs of $15.9 million in connection with the refinancing of the Term Loan in September 2023, of which $14.7 million was expensed. All third-party financing costs incurred during the years ended December 31, 2022 and 2021 were expensed. All amounts expensed are included within interest expense on the consolidated statements of operations and comprehensive income (loss). The following table presents the interest and amortization of deferred financing fees related to the Term Loan: Year Ended December 31, 2023 2022 2021 (In thousands) Total interest incurred $ 102,321 $ 72,090 $ 72,816 Amortization of deferred financing fees $ 3,958 $ 4,760 $ 4,316 Capitalized interest $ 5,086 $ 2,590 $ 2,146 As of December 31, 2023 and 2022, accrued interest under the Term Loan was $1.0 million and $0.3 million, respectively. Total Debt The following table presents future minimum principal repayments with respect to the Term Loan existing at December 31, 2023, by year and in the aggregate: Year ending December 31, Amount (In thousands) 2024 $ 15,000 2025 15,000 2026 15,000 2027 15,000 2028 15,000 Thereafter 1,425,000 Total debt commitments 1,500,000 Less: Original issuance discount 17,510 Less: Total short-term debt 15,000 Total long-term debt, net $ 1,467,490 |
Derivative Instruments (Notes)
Derivative Instruments (Notes) | 3 Months Ended |
Dec. 31, 2023 | |
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 rate by entering into offsetting positions through the use of interest rate hedges. This will reduce the negative impact of increases in the variable rate over the term of the derivative contracts. These contracts 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 the current interest rate cap agreement (the “Cap”) 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, is exercised, no longer qualifies for hedge accounting, is designated, or is no longer probable, hedge accounting is discontinued prospectively. Interest Rate Cap In July 2021, the Company entered into the Cap, which had an effective date of December 2021 upon the expiration of the Company’s long-term interest rate swap (the “Swap”). The Cap manages the Company’s exposure to interest rate movements on a portion of the Term Loan through November 2026. In December 2022, the Company modified the Cap to replace the previous LIBOR base rate with SOFR and received a credit risk adjustment of 0.064%. The modified Cap provides the Company the right to receive payment from the counterparty if one-month SOFR exceeds 1.436%. Prior to the modification, the Company received payment under the terms of the Cap if one-month LIBOR exceeded 1.5%. The Company pays a fixed monthly premium based on an annual rate of 0.31% for the Cap. The Cap carried a notional amount of $1.0 billion as of December 31, 2023 and 2022. The Cap, which was not affected by the refinancing of the Term Loan in September 2023, is designed to mirror the terms of the Term Loan and to offset the cash flows being hedged. The Company designated the Cap as a cash flow hedge of the variability of the SOFR-based rate interest payments on the Term Loan. The effective portion of the Cap’s change in fair value will be recorded in accumulated other comprehensive income (loss). Any ineffective portion of the Cap’s change in fair value will be recorded in current earnings as interest expense. Interest Rate Swaps In November 2019, the Company entered into the Swap which had a term through November 2021 and was intended to mitigate variability in forecasted interest payments on a portion of the Term Loan. On the last business day of each month, the Company received variable interest payments based on one-month LIBOR from the counterparty. The Company paid a fixed rate of 1.565% per annum on the notional amount of $1.0 billion on the Swap until its expiration in November 2021. The Company also entered into an interest rate swaption agreement (“Swaption”), for which the Company paid a fixed annual rate of 0.50% of the notional amount. At inception, the Swap and Swaption (collectively, the “swap contracts”) were designated as cash flow hedges for hedge accounting. The unrealized changes in market value were recorded in accumulated other comprehensive income (loss) and any remaining balance was reclassified into earnings during the period in which the hedged transaction affected earnings. Due to the changes made to the Term Loan as a result of the July 2021 repricing, at that time the Company elected to de-designate the Swap as a cash flow hedge. Accordingly, as the related interest payments were still probable, the accumulated balance within other comprehensive income (loss) as of the de-designation date was amortized into earnings through the November 2021 expiration date. Fair Value of Derivative Instruments As of December 31, 2023 and 2022, the Company had an asset balance of $66.5 million and $92.3 million, respectively, for the fair value of the Cap, and a liability balance of $8.4 million and $11.0 million, respectively, for the fair value of the Cap premium. Both the Cap and the Cap premium are recorded within other assets on the consolidated balance sheet. During the years ended December 31, 2023, 2022, and 2021 the Company collectively incurred $3.3 million, $3.3 million, and $8.5 million, respectively, in net interest expense for the Cap and Swap contracts. Interest expense was reduced by $36.2 million and $7.2 million for the years ended December 31, 2023 and 2022, respectively, for payments received related to the Cap. There were no such interest payments received for the year ended December 31, 2021. Gains and losses resulting from fair value adjustments to the Cap are recorded within accumulated other comprehensive income within the Company’s consolidated balance sheet and reclassified to interest expense on the dates that interest payments become due. Cash flows related to the derivative contracts are included in cash flows from operating activities on the consolidated statements of cash flows. Over the next 12 months, the Company expects any gains or losses for cash flow hedges amortized from accumulated other comprehensive income (loss) into earnings to have an immaterial impact on the Company’s consolidated financial statements. The following table presents the amount of unrealized gain or loss and related tax impact associated with the derivative instruments that the Company recorded in its consolidated statements of operations and comprehensive income (loss): Year Ended December 31, 2023 2022 2021 (In thousands) Unrealized gain (loss), net of tax $ (17,598) $ 58,668 $ 10,408 Tax benefit (expense) $ 5,379 $ (17,834) $ (3,316) |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 9. Stock-Based Compensation In May 2023, 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”). As of December 31, 2023, the remaining aggregate number of shares of the Company’s common stock available for future grants under the Amended 2015 Plan was 12,917,165. 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 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 referred to 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 estimated fair value. Restricted Stock Units Each RSU represents the right to receive one share of common stock at a future date. Historically, RSUs granted to employees for service generally vested 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. Beginning with grants made in 2024, RSUs granted to employees for service will generally vest over three years, with 34% vesting on the first anniversary of the grant date and the remainder vesting ratably on a quarterly basis thereafter, subject to continued employment. Some RSUs granted to employees for performance vest upon the completion of defined performance goals, subject to continued employment. The RSUs granted to non-employee directors generally vest in full on the first anniversary of the grant date. The RSUs granted to non-employee consultants generally vest 50% on the first anniversary of the grant date, with the remaining 50% vesting quarterly thereafter through the second anniversary of the grant date. The Company’s RSUs are classified as equity awards because the RSUs will be settled in the Company’s common stock upon vesting. The fair value of RSUs is determined at the grant date based on the closing price of the Company’s common stock on the date of grant. The related compensation expense is recognized over the service period, or shorter periods based on the retirement eligibility of certain grantees, 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. RSUs do not carry voting rights until the RSUs are vested, but certain unvested RSUs are entitled to accrue dividends, and shares are issued upon settlement in accordance with the terms of the award. RSU Summary The following table summarizes the Company’s RSU activity: RSUs Weighted- (In thousands) Outstanding at December 31, 2020 2,664 $ 18.96 Granted 913 $ 41.55 Forfeited (115) $ 29.49 Released (912) $ 21.12 Outstanding at December 31, 2021 2,550 $ 25.80 Granted 1,562 $ 40.21 Forfeited (152) $ 32.80 Released (990) $ 30.05 Outstanding at December 31, 2022 2,970 $ 31.60 Granted 1,184 $ 57.85 Forfeited (76) $ 46.02 Released (1,283) $ 36.02 Outstanding at December 31, 2023 2,795 $ 40.24 Vested and unreleased at December 31, 2023 (1) 713 (1) These RSUs were granted to the Company’s board of directors as a part of their compensation for board and committee service and had vested but had not yet settled, meaning that the underlying shares of common stock had not been issued and released. As of December 31, 2023, the total unrecognized cost related to non-vested RSUs was approximately $42.6 million. This cost is expected to be recognized over a weighted-average period of 1.4 years. The Company recognized $57.5 million, $43.2 million and $26.0 million of stock-based compensation expense related to RSUs in the years ended December 31, 2023, 2022 and 2021, respectively. Service-Based RSU Awards The majority of the annual compensation the Company provides to non-employee members of its board of directors is paid in the form of RSUs. In addition, some members of the Company’s board of directors elect to receive their cash retainers, or a portion thereof, in the form of RSUs. An aggregate amount of approximately 55,000, 57,000 and 39,000 service-based RSUs were granted to the Company’s non-employee directors as a result of these payments and elections during the years ended December 31, 2023, 2022 and 2021, respectively, with an estimated grant date fair value of $2.9 million, $2.2 million and $1.6 million, respectively. During the years ended December 31, 2023, 2022 and 2021, the Company granted approximately 746,000, 1,082,000 and 531,000 service-based RSUs, respectively, to its employees, with an estimated aggregate grant date fair value of $43.0 million, $44.2 million and $22.0 million, respectively. During the years ended December 31, 2023, 2022 and 2021, the Company granted approximately 1,000, 7,000 and 2,000 service-based RSUs, respectively, to non-employee consultants, with an estimated grant date fair value of $0.1 million, $0.3 million and $0.1 million, respectively. Performance-Based RSU Awards In March 2023, 2022 and 2021, the Company awarded approximately 193,000, 248,000 and 228,000 performance-based RSUs, respectively, to the Company’s executives and employees (the “Bonus RSUs”), with an estimated grant date fair value of $11.9 million, $9.7 million and $9.5 million, respectively. Vesting of the Bonus RSUs is and was dependent upon the Company’s achievement of defined performance goals for the respective fiscal year in which the Bonus RSUs were granted. 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 2023 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 2023 Bonus RSUs will vest, subject to continued employment, in March 2024. Substantially all of the Bonus RSUs awarded in 2022 and 2021 vested in March 2023 and March 2022, respectively, upon the determination of the level of achievement of the respective performance goals. Additionally, during 2023, 2022 and 2021, the Company awarded approximately 134,000, 167,000 and 110,000 performance-based RSUs, respectively, to the Company’s executives (the “Executive RSUs”). The estimated aggregate grant date fair value of the Executive RSUs for the 2023, 2022 and 2021 grants was $8.2 million, $6.5 million and $4.6 million, respectively. Vesting of the Executive RSUs is and was dependent upon the Company’s achievement of defined performance goals over a two-year period (the year of grant and the following year). 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 for the Executive RSUs at the end of the two-year performance period, 50% of the number of Executive RSUs earned based on performance will then vest on the second anniversary of the grant date, and the remaining 50% will then vest on the third anniversary of the grant date, in each case subject to the executive’s continued service as of the vesting date. In March 2023, the Company awarded approximately 55,000 additional shares related to performance-based RSUs granted to the Company’s executives for over-achievement of performance targets for the Executive RSUs with a performance period that ended December 31, 2022. In March 2022, the Company cancelled approximately 50,000 shares related to performance-based RSUs granted to the Company’s executives in 2020 for under-achievement of performance targets for the performance period that ended December 31, 2021. In March 2021, the Company awarded approximately 3,000 additional shares related to performance-based RSUs granted to the Company’s executives in 2019 for over-achievement of performance targets for the performance period that ended December 31, 2020. Stock Option Awards The Company last granted stock options in 2019. The stock option awards granted to employees generally (i) have a term of ten years, (ii) vest over four The following table summarizes the Company’s stock option award activity: Shares Weighted- Weighted- Aggregate (In thousands, except years and per share data) Options outstanding at December 31, 2020 2,554 $ 9.10 3.94 $ 77,182 Cancelled or expired (3) 10.67 Exercised (857) 8.51 $ 31,544 Forfeited (13) 16.07 Options outstanding at December 31, 2021 1,681 $ 9.35 3.28 $ 53,698 Cancelled or expired (1) 8.28 Exercised (494) 7.83 $ 18,992 Forfeited (1) 18.35 Options outstanding at December 31, 2022 1,185 $ 9.97 2.64 $ 49,094 Cancelled or expired (4) 10.25 Exercised (505) 7.84 $ 26,928 Options outstanding and exercisable at December 31, 2023 676 $ 11.55 2.39 $ 20,036 |
Equity Transactions
Equity Transactions | 12 Months Ended |
Dec. 31, 2023 | |
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 previously issued 1.5 million shares of preferred stock. The remaining 0.5 million authorized shares of preferred stock remain undesignated and unissued as of December 31, 2023 and 2022. As of December 31, 2023 and 2022, there were no outstanding shares of preferred stock, as all previously designated and issued preferred stock was converted into common stock in prior periods. Dividends Stockholders are entitled to receive, when and if declared by the Company’s Board of Directors from time to time, such dividends and other distributions in cash, stock or property from the Company’s assets or funds legally and contractually available for such purposes. In each of December 2022, May 2023, September 2023 and December 2023, the Company’s Board of Directors approved a dividend of $0.13 per share of common stock. The dividends, which were paid on March 30, June 30, September 29 and December 29, 2023 to stockholders of record as of March 15, June 15, September 15 and December 15, 2023, respectively, resulted in total payments of $64.8 million during 2023. The Company’s liability related to dividends on common stock was $1.3 million and $16.6 million as of December 31, 2023 and 2022, respectively. Share Repurchase Program Since February 2021, the Company’s Board of Directors has authorized the repurchase of up to $1,000.0 million of the Company’s common stock through December 31, 2025. This time frame can be extended or shortened by the Board of Directors. Repurchases may be made from time to time on the open market at prevailing prices or in negotiated transactions off the market. The Company records share repurchases at cost, which includes broker commissions and related excise taxes. All shares are immediately retired upon repurchase in accordance with the board-approved policy. When treasury shares are retired, the Company’s policy is to allocate the excess of the repurchase price over the par value of shares acquired first, to additional paid-in capital, and then to retained earnings/accumulated deficit. The portion to be allocated to additional paid-in capital is calculated by applying a percentage, determined by dividing the number of shares to be retired by the number of shares outstanding, to the balance of additional paid-in capital as of the date of retirement. |
Revenue (Notes)
Revenue (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue The following table summarizes the Company’s services revenue: Year Ended December 31, 2023 2022 2021 (In thousands) Commercial services: Voice and data $ 219,242 $ 193,112 $ 175,584 IoT data 141,036 125,015 110,919 Broadband 57,878 51,143 42,990 Hosted payload and other data 60,298 59,451 58,611 Total commercial services 478,454 428,721 388,104 Government services 106,000 106,000 103,887 Total services $ 584,454 $ 534,721 $ 491,991 The following table summarizes the Company’s engineering and support services revenue: Year Ended December 31, 2023 2022 2021 (In thousands) Commercial $ 11,050 $ 7,833 $ 4,613 Government 90,083 43,766 25,825 Total $ 101,133 $ 51,599 $ 30,438 The Company’s contracts with customers generally do not contain performance obligations with terms in excess of one year. As such, the Company does not disclose details related to the value of performance obligations that are unsatisfied as of the end of the reporting period. The total value of any performance obligations that extend beyond a year is immaterial to the financial statements. 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 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 unbilled 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 $31.4 million, $26.3 million and $43.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. 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 consolidated balance sheets. The commissions are recognized over the estimated usage period. The following table presents contract assets not separately disclosed: Year Ended December 31, 2023 2022 (In thousands) Contract Assets: Commissions $ 1,114 $ 1,258 Other contract costs $ 1,970 $ 2,255 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents U.S. and foreign components of income (loss) before income taxes: Year Ended December 31, 2023 2022 2021 (In thousands) U.S. income (loss) $ (10,596) $ 10,179 $ (31,352) Foreign income 5,849 331 2,464 Total income (loss) before income taxes $ (4,747) $ 10,510 $ (28,888) The following table summarizes the components of the Company’s income tax provision: Year Ended December 31, 2023 2022 2021 (In thousands) Current taxes: Federal tax benefit $ — $ — $ (537) State tax expense 1,032 272 42 Foreign tax expense 4,545 1,209 2,240 Total current tax (benefit) expense 5,577 1,481 1,745 Deferred taxes: Federal tax benefit (31,311) (3,354) (14,109) State tax expense (benefit) (226) 1,794 (6,686) Foreign tax expense (benefit) (291) 371 (519) Total deferred tax benefit (31,828) (1,189) (21,314) Total income tax expense (benefit) $ (26,251) $ 292 $ (19,569) The following table presents a reconciliation of the U.S. federal statutory income tax expense to the Company’s effective income tax provision. Any amounts that do not have a meaningful impact on this reconciliation are not separately disclosed. Year Ended December 31, 2023 2022 2021 (In thousands) Expected tax expense (benefit) at U.S. federal statutory tax rate $ (997) $ 1,893 $ (6,067) State taxes, net of federal benefit 927 1,260 (9,094) State tax valuation allowance (338) 748 711 Deferred impact of state tax law changes and elections — — 1,200 Equity-based compensation (10,234) (6,184) (9,597) Limitation on executive compensation deduction 4,011 2,905 3,140 Other nondeductible items 114 33 65 Tax credits (21,817) (949) (1,278) Foreign taxes 3,570 386 1,100 Other adjustments (1,487) 200 251 Total income tax expense (benefit) $ (26,251) $ 292 $ (19,569) The following table presents the components of deferred tax assets and liabilities: December 31, 2023 2022 (In thousands) Deferred tax assets Long-term contracts $ 51,226 $ 52,553 Federal, state and foreign net operating losses, other carryforwards and tax credits 351,094 374,767 Other 26,676 24,553 Total deferred tax assets 428,996 451,873 Valuation allowance (33,420) (34,643) Net deferred tax assets 395,576 417,230 Deferred tax liabilities Fixed assets, intangibles and research and development expenditures (425,980) (490,384) Investment in joint venture (63,108) (48,754) Other (19,336) (27,976) Total deferred tax liabilities (508,424) (567,114) Net deferred income tax liabilities $ (112,848) $ (149,884) Pursuant to ASC 740, the Company nets deferred tax assets and liabilities within the same jurisdiction. As of December 31, 2023, the Company had a net deferred tax asset of $1.8 million that is included in other assets on the balance sheet and a net deferred tax liability of $114.6 million. The Company recognizes valuation allowances to reduce deferred tax assets to the amount that is more likely than not to be realized. In assessing the likelihood of realization, management considers: (i) future reversals of existing taxable temporary differences; (ii) future taxable income exclusive of reversing temporary differences and carryforwards; (iii) taxable income in prior carryback year(s) if carryback is permitted under applicable tax law; and (iv) tax planning strategies. The Company had deferred tax assets related to cumulative U.S. federal net operating loss carryforwards and interest expense carryforwards of approximately $257.4 million and $296.4 million as of December 31, 2023 and 2022, respectively. The 2017 U.S. federal net operating loss carryforward, if not utilized, will expire in 2037. The Company believes that the 2017 U.S. federal net operating losses will be utilized before the expiration date and, as such, no valuation allowance has been established for this deferred tax asset. U.S. federal net operating loss carryforwards for 2018 and thereafter and interest expense carryforwards do not expire. The Company had deferred tax assets related to the state net operating loss carryforwards of approximately $59.2 million and $60.0 million as of December 31, 2023 and 2022, respectively, some of which expire as early as 2025. The Company does not expect to fully utilize all of its state net operating losses within the respective carryforward periods and as such reflects a partial valuation allowance of $33.0 million and $33.3 million as of December 31, 2023 and 2022, respectively, against these deferred tax assets on its consolidated balance sheets. The Company had deferred tax assets related to the foreign net operating loss carryforwards of approximately $0.5 million and $0.7 million, as of December 31, 2023 and 2022, respectively, that do not expire. The Company does not expect to fully utilize all of its foreign net operating losses within the carryforward periods. As such, the Company had recorded a partial valuation allowance of $0.2 million and $0.4 million as of December 31, 2023 and 2022, respectively, against these deferred tax assets on its consolidated balance sheets. The timing and manner in which the Company will utilize the net operating loss carryforwards in any year, or in total, may be limited in the future as a result of changes in the Company’s ownership and any limitations imposed by the jurisdictions in which the Company operates. The Company had approximately $32.3 million and $12.1 million of deferred tax assets related to research and development tax credits as of December 31, 2023 and 2022, respectively, that expire in various amounts from 2029 through 2043. As of December 31, 2023, the Company established a reserve of approximately $2.4 million on its estimate of R&D credits. The Company had approximately $8.7 million and $5.2 million of deferred tax assets related to foreign tax credits as of December 31, 2023 and 2022, respectively, that expire in various amounts through 2033. Previously, the Company did not expect to utilize all of its foreign tax credits, resulting in the Company recording a partial valuation allowance of $0.5 million as of December 31, 2022. There is no valuation allowance on foreign tax credits as of December 31, 2023. The Company has provided for U.S. income taxes on all undistributed earnings of its significant foreign subsidiaries since the Company does not indefinitely reinvest these undistributed earnings. The Company measures deferred tax assets and liabilities using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company recognizes the effect on deferred tax assets and liabilities of a change in tax rates in income in the period that includes the enactment date. Uncertain Income Tax Positions The Company is subject to income taxes in the U.S. and various state and foreign jurisdictions. Significant judgment is required in evaluating tax positions and determining the provision for income taxes. The Company establishes liabilities for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes may be due. These liabilities are established when the Company believes that certain positions might be challenged despite its belief that its tax return positions are fully supportable. The Company adjusts these liabilities in light of changing facts and circumstances, such as the outcome of a tax audit. The provision for income taxes includes the impact of changes to these liabilities. The Company had unrecognized tax benefits of approximately $2.4 million as of December 31, 2023 primarily due to additional U.S. tax credits from prior periods. There were no unrecognized tax benefits as of December 31, 2022. Any changes in the next twelve months are not anticipated to have a significant impact on the results of operations, financial position or cash flows of the Company. The Company has elected an accounting policy to classify interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2023 and 2022, there were no interest and penalties on unrecognized tax benefits. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits which includes related interest and penalties: Year Ended December 31, 2023 2022 (In thousands) Balance at January 1, $ — $ — Change attributable to tax positions taken in a prior period 2,162 — Change attributable to tax positions taken in the current period 236 — Balance at December 31, $ 2,398 $ — The Company is subject to tax audits in all jurisdictions for which it files tax returns. Tax audits by their very nature are often complex and can require several years to complete. Currently, there are no U.S. federal, state or foreign jurisdiction tax audits pending. The Company’s corporate U.S. federal and state tax returns from 2011 to 2022 remain subject to examination by tax authorities and the Company’s foreign tax returns from 2017 to 2022 remain subject to examination by tax authorities. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The Company calculates basic net income (loss) per common share by dividing net income (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 potentially dilutive common shares when the effect is dilutive. Potentially dilutive common shares include (i) shares of common stock issuable upon exercise of outstanding stock options and (ii) shares underlying RSUs that are contingently issuable upon achievement of certain service and performance requirements. The effect of potentially dilutive common shares is computed using the treasury stock method. The following table summarizes the computations of basic and diluted net loss per common share: Year Ended December 31, 2023 2022 2021 (In thousands, except per share data) Numerator: Net income (loss) attributable to common stockholders - basic and diluted $ 15,415 $ 8,722 $ (9,319) Denominator: Weighted average common shares - basic 125,598 128,255 133,530 Weighted average common shares - diluted 127,215 130,134 133,530 Net income (loss) attributable to common stockholders per share - basic and diluted $ 0.12 $ 0.07 $ (0.07) For the year ended December 31, 2022, 0.2 million unvested service-based RSUs were excluded from the computation of basic net income per share and not included in the computation of diluted net income per share, as the effect would be anti-dilutive, and 0.2 million unvested performance-based RSUs were not included in the computation of basic and diluted net income per share, as certain performance criteria have not been satisfied. There were no such shares for the year ended December 31, 2023. Due to the Company’s net loss position for the year ended December 31, 2021 all potential common stock equivalents were anti-dilutive and therefore excluded from the calculation of diluted net loss per share. The following table presents the incremental number of shares underlying stock options and RSUs outstanding with anti-dilutive effects: Year Ended December 31, 2023 2022 2021 (In thousands) Performance-based RSUs — 210 183 Service-based RSUs — — 536 Stock options — — 1,189 |
Related Party Transaction Discl
Related Party Transaction Disclosure Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
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. The Aireon system was developed by Aireon LLC, which the Company formed in 2011 and which received subsequent investments from several air navigation service providers (“ANSPs”) to provide a global air traffic surveillance service through a series of automatic dependent surveillance-broadcast (“ADS-B”) receivers on the Company’s satellites. Aireon has contracted to offer this service to ANSPs, which use the service to provide improved air traffic control services over the oceans, as well as polar and remote regions. Aireon also markets its data and services to airlines and other commercial users. The Company and the other Aireon investors hold their interests in Aireon Holdings LLC (“Aireon Holdings”) through an amended and restated LLC agreement (the “Aireon Holdings LLC Agreement”). Aireon Holdings holds 100% of the membership interests in Aireon, which is the operating entity. In June 2022, the Company entered into a subscription agreement with Aireon Holdings and invested $50.0 million in exchange for an approximate 6% preferred membership interest. The Company’s investment in Aireon Holdings is accounted for as an equity method investment. The carrying value of the Company’s investment in Aireon Holdings was $44.6 million and $48.8 million as of December 31, 2023 and 2022, respectively. The investments by the Company prior to June 2022 had previously been written down to a carrying value of zero. At each of December 31, 2023 and 2022, the Company’s fully diluted ownership stake in Aireon Holdings was approximately 39.5%, which is subject to partial future redemption under provisions contained in the Aireon Holdings LLC Agreement. Under the agreements with Aireon, Aireon will pay the Company fees of $200.0 million to host the ADS-B receivers, of which $94.5 million had been paid as of December 31, 2023. These fees are recognized over the estimated useful lives of the satellites, which is expected to result in revenue of approximately $9.3 million, following the change in estimate of the useful lives of the satellites that occurred in the fourth quarter of 2023. The Company recognized $14.4 million of hosting fee revenue under the Hosting Agreement for the year ended December 31, 2023 and $16.1 million of hosting fee revenue for the years ended December 31, 2022 and 2021. There were no receivables due under the Hosting Agreement as of December 31, 2023 and 2022. Additionally, Aireon pays power and data services fees of approximately $23.5 million per year, in the aggregate for the delivery of the air traffic surveillance data over the Iridium system. The Company recorded $23.5 million of power and data service fee revenue from Aireon for each of the years ended December 31, 2023, 2022 and 2021. During the year ended December 31, 2023, the Company recorded other income of $3.5 million related to a contractual settlement with Aireon. This is a one-time payment that is not expected to recur. Under two services agreements, the Company also provides Aireon with administrative services and support services, the fees for which are paid monthly. Aireon receivables due to the Company under these two agreements totaled $2.2 million at each of December 31, 2023 and 2022. The Company and the other Aireon investors have agreed to participate pro rata, based on their respective fully diluted ownership stakes, in funding an investor bridge loan to Aireon. The Company’s maximum commitment under the investor bridge loan is $11.9 million. No bridge loan amounts were outstanding as of December 31, 2023 or 2022. Satelles |
Segments, Significant Customers
Segments, Significant Customers, Supplier and Service Providers and Geographic Information | 12 Months Ended |
Dec. 31, 2023 | |
Segments, Geographical Areas [Abstract] | |
Segments, significant customers, supplier and service providers and geographic information | Segments, Significant Customers, Supplier and Service Providers and Geographic Information The Company operates in one business segment, providing global satellite communications services and products. The Company derived approximately 25%, 21% and 21% of its total revenue in the years ended December 31, 2023, 2022 and 2021, respectively, from prime contracts or subcontracts with agencies of the U.S. government. For the years ended December 31, 2023, 2022 and 2021, no single commercial customer accounted for more than 10% of the Company’s total revenue. Approximately 46% and 25% of the Company’s accounts receivable balance at December 31, 2023 and 2022, respectively, was due from prime contracts or subcontracts with agencies of the U.S. government. As of December 31, 2023 and 2022, no single commercial customer accounted for more than 10% of the Company’s total accounts receivable balance. The Company contracts for the manufacture of its subscriber equipment primarily from a limited number of manufacturers and utilizes other sole source suppliers for certain component parts of its devices. Should events or circumstances prevent the manufacturer or the suppliers from producing the equipment or component parts, the Company’s business could be adversely affected until the Company is able to move production to other facilities of the manufacturer or secure a replacement manufacturer or an alternative supplier for such component parts. The following table summarizes net property and equipment by geographic area: December 31, 2023 2022 (In thousands) United States $ 412,002 $ 461,820 Satellites in orbit 1,782,000 1,968,999 All others 1,756 2,486 Total $ 2,195,758 $ 2,433,305 The following table summarizes revenue by geographic area: Year Ended December 31, 2023 2022 2021 (In thousands) United States $ 431,476 $ 374,687 $ 330,948 Other countries (1) 359,247 346,347 283,552 Total $ 790,723 $ 721,034 $ 614,500 (1) No single country in this group represented more than 10% of revenue. Revenue is attributed to geographic area based on the billing address of the distributor. Service location and the billing address are often not the same. The Company’s distributors sell services directly or indirectly to end users, who may be located or use the Company’s products and services elsewhere. The Company does not know the geographical distribution of end users because it does not contract directly with them. The Company is exposed to foreign currency exchange fluctuations from sales made and costs incurred in foreign currencies. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company sponsors a defined-contribution 401(k) retirement plan (the “Plan”) that covers all employees. Employees are eligible to participate in the Plan on the first day of the month following the date of hire, and participants are 100% vested from the date of eligibility. The Company matches employees’ contributions equal to 100% of the salary deferral contributions up to 5% of the employees’ eligible compensation each pay period. The Company’s matching contributions to the Plan were $4.3 million, $3.5 million and $3.5 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Subsequent Events
Subsequent Events | 2 Months Ended |
Feb. 15, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Event On February 2, 2024, the Company’s Board of Directors approved a dividend of $0.13 per share payable on March 29, 2024, to stockholders of record as of March 15, 2024. |
Significant Accounting Policies
Significant Accounting Policies and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The Company has prepared the consolidated financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The accompanying 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. The Company has reclassified certain items in the consolidated financial statements for the prior periods to be comparable with the classification for the year ended December 31, 2023. These reclassifications had no effect on previously reported net income (loss). |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates and assumptions, including those related to revenue recognition, the useful lives and recoverability of long-lived and intangible assets, income taxes, stock-based compensation, the incremental borrowing rate for its leases, and contingencies, among others. The Company bases these estimates on historical and anticipated results, trends, and various other assumptions that it believes are reasonable, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities and recorded revenues and expenses. Actual results could differ materially from those estimates. |
Adopted Accounting Pronouncements | Recent Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). This guidance improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The Company intends to apply the new guidance effective for the year ending December 31, 2024, as required. The Company is assessing the potential effects of the standard but has not yet completed its review of the impact of this guidance. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). The amendments in ASU 2023-09 address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The Company intends to apply the new guidance effective for the year ending December 31, 2025, as required. The Company is currently evaluating the effect ASU 2023-09 may have on its consolidated financial statements and related disclosures. |
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. 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 values of the following financial instruments approximated their fair values as of December 31, 2023 and 2022: 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. In determining fair value of Level 2 assets, the Company uses a market approach utilizing valuation models that incorporate observable inputs such as interest rates, bond yields and quoted prices for similar assets. |
Lessee, Leases [Policy Text Block] | Leases For new leases, the Company determines 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 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 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. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and receivables. The majority of cash is invested into a money market fund with U.S. treasuries, agency mortgage backed securities and/or U.S. government guaranteed debt. While the Company maintains its cash and cash equivalents with financial institutions with high credit ratings, it often maintains those deposits in federally insured financial institutions in excess of federally insured limits. The Company performs credit evaluations of its customers’ financial condition and records reserves to provide for estimated credit losses. Accounts receivable are due from both domestic and international customers. |
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, regular interest bearing depository accounts and non-interest bearing depository accounts, are classified as cash and cash equivalents on the accompanying consolidated balance sheets. |
Investment, Policy | Investments Investments where the Company has the ability to exercise significant influence, but does not control, are accounted for under the equity method of accounting and are included in Equity Method Investments on the Company’s consolidated balance sheets. Significant influence typically exists if the Company’s has a 20% to 50% ownership interest in the investee. Under this method of accounting, the Company’s share of the net earnings (losses) of the investee is included in loss on equity method investments on the consolidated statement of operations and comprehensive income (loss). Investments where the Company has less than 20% ownership interest in the investee and lacks the ability to exercise significant influence are accounted for under ASC 321-10-35, Investments - Equity Securities. Under this topic, the Company’s investment equals its cost, less impairment, if any. For investments without a readily determinable fair value, the Company performs a qualitative assessment to determine if any impairment indicator is present. If an indicator is present, the Company determines whether fair value was less than the investment’s carrying value. If the fair value is less than its carrying value or if there is an observable price change through a similar security from the same issuer, the Company would record an impairment charge. |
Accounts Receivable | Accounts Receivable |
Foreign Currencies | Foreign Currencies |
Deferred Financing Costs | Deferred Financing Costs |
Capitalized Interest | Capitalized Interest |
Inventory | Inventory Inventory consists primarily of finished goods, although the Company also maintains an inventory of raw materials from third-party manufacturers. The Company outsources manufacturing of subscriber equipment to a third-party manufacturer and purchases accessories from third-party suppliers. The Company’s cost of inventory includes an allocation of overhead, including payroll and payroll-related costs of employees directly involved in bringing inventory to its existing condition, and freight. Inventories are valued using the average cost method and are carried at the lower of cost or net realizable value. The Company’s expense for excess and obsolete inventory was not material during the years ended December 31, 2023, 2022 or 2021. The Company has a manufacturing agreement with Benchmark Electronics Inc. (“Benchmark”) to manufacture most of its subscriber equipment. Pursuant to the agreement, the Company may be required to purchase excess materials at cost plus a contractual markup if the materials are not used in production within the periods specified in the agreement. Benchmark will then repurchase such materials from the Company at the same price paid by the Company, as required for the production of the subscriber equipment. The following table summarizes the Company’s inventory balance: December 31, 2023 2022 (In thousands) Finished goods $ 48,698 $ 17,964 Raw materials 43,599 23,014 Inventory valuation reserve (1,162) (1,202) Total $ 91,135 $ 39,776 The Company’s raw materials balance includes $32.2 million and $9.0 million at December 31, 2023 and December 31, 2022, respectively, of inventory held on consignment at third-party manufacturers. |
Stock-Based Compensation | Stock-Based Compensation |
Property and Equipment | Property and Equipment Property and equipment is carried at cost less accumulated depreciation. The Company calculates depreciation expense using the straight-line method over the useful lives of each asset. The Company applies judgment in determining the useful lives based on factors such as engineering data, long-term strategy for using the assets, the manufacturer’s estimated design life for the assets, laws and regulations that could impact the useful lives of the assets and other economic factors. The Company assesses the current estimated operational life of the satellites, including the potential impact of environmental factors on the satellites, ongoing operational enhancements and software upgrades when evaluating the useful lives of its satellites. Additionally, the Company reviews engineering data relating to the operation and performance of its satellite network. During the fourth quarter of 2023, the Company updated its estimate of the satellites’ remaining useful lives based on the health of the constellation and related engineering data. As a result, the estimated useful lives of the satellites were extended by five years, from 12.5 years to 17.5 years. The impact of this change for the year ended December 31, 2023 was a decrease in depreciation expense of approximately $27.8 million and a decrease in hosted payload and other service revenue of approximately $2.3 million. For the year ended December 31, 2023, the impact of the change in useful lives of the satellites resulted in an increase in basic and diluted net income per share of $0.21 and $0.20, respectively. During the quarter ended June 30, 2023, the Company launched five of its remaining six ground spare satellites. Following completion of successful on-orbit testing of the five launched satellites, the Company has no plans to use, develop or launch the remaining ground spare. As the Company believed the construction-in-progress associated with the remaining ground spare satellite would no longer be used, the Company wrote off the full amount remaining in construction-in-progress for that satellite by recording accelerated depreciation expense of $37.5 million, which more than offset the decrease in depreciation expense related to the increase in estimated useful lives of the satellites described above. Repairs and maintenance costs are expensed as incurred. |
Derivatives and Fair Value | Derivative Financial Instruments The Company uses derivatives (interest rate swap, swaption, cap) to manage its exposure to fluctuating interest rate risk on variable rate debt. Its derivatives are measured at fair value and are recorded on the consolidated balance sheets within assets and other current liabilities. When the Company’s derivatives are designated as cash flow hedges, the effective portion of the changes in fair value of the derivatives are recorded in accumulated other comprehensive income (loss) within the Company’s consolidated balance sheets and subsequently recognized in earnings when the hedged items impact earnings. Any ineffective portion of a derivative’s change in fair value will be recognized in earnings in the same period in which the hedged interest payments affect earnings. Within the consolidated statements of operations and comprehensive income (loss), 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 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 item being hedged. See Note 8 for further information. |
Long-Lived Assets | Long-Lived Assets |
Intangible Assets | Intangible Assets The Company’s intangible assets with finite lives are amortized over their useful lives and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If any indicators were present, the Company would test for recoverability by comparing the carrying amount of the asset to the net undiscounted cash flows expected to be generated from the asset. If those net undiscounted cash flows do not exceed the carrying amount (i.e., the asset is not recoverable), the Company would perform the next step, which is to determine the fair value of the asset and record an impairment loss, if any. The Company evaluates the useful lives for these intangible assets each reporting period to determine whether events and circumstances warrant a revision in their remaining useful lives. The Company’s intangible assets with indefinite lives are not amortized but are tested for impairment annually, or more frequently if events or changes in circumstances indicate the asset may be impaired. The Company’s trade names, spectrum and licenses are expected to generate cash flows indefinitely. |
Revenue Recognition | Revenue Recognition The Company derives its revenue primarily as a wholesaler of satellite communications products and services. The primary types of revenue include (i) service revenue (access and usage-based airtime fees), (ii) subscriber equipment revenue, and (iii) revenue generated by providing engineering and support services to commercial and government customers. In addition to the discussion immediately below, see Note 11 for further discussion of the Company’s revenue recognition. Wholesaler of satellite communications products and services Pursuant to wholesale agreements, the Company sells its products and services to service providers and recognizes revenue as it fulfills its performance obligations to the service providers, based an amount that reflects the consideration to which it expects to be entitled to in exchange for those products and services. The service providers, in turn, sell the products and services to other distributors or directly to the end users. The Company recognizes revenue when an arrangement exists, services or equipment are transferred, the transaction price is determined, the arrangement has commercial substance, and collection of consideration is probable. Contracts with multiple performance obligations At times, the Company sells services and equipment through arrangements that bundle equipment, airtime and other services. For these revenue arrangements, when the Company sells services and equipment in bundled arrangements and determines that it has separate distinct performance obligations, the Company allocates the bundled contract price among the various performance obligations based on each deliverable’s stand-alone selling price. If the stand-alone selling price is not directly observable, the Company estimates the amount to be allocated for each performance obligation based on observable market transactions or the residual approach. When the Company determines the performance obligations are not distinct, the Company recognizes revenue on a combined basis. To the extent the Company’s contracts include variable consideration, the transaction price includes both fixed and variable consideration. The variable consideration contained within the Company’s contracts with customers may include discounts, credits and other similar items. When a contract includes variable consideration, the Company evaluates the estimate of the variable consideration to determine whether the estimate needs to be constrained; therefore, the Company includes the variable consideration in the transaction price only to the extent that it is probable that a significant reversal of the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Variable consideration estimates are updated at the end of each quarter. Service revenue sold on a stand-alone basis Service revenue is generated from the Company’s service providers through usage of its satellite system and through fixed monthly access fees per user charged to service providers. Revenue for usage is recognized when usage occurs and is billed in arrears with payments generally submitted within 30 days. Revenue for fixed-per-user access fees is billed monthly in advance and generally recognized over the month, or related usage period, in which the services are provided to the end user. The Company sells prepaid services in the form of e-vouchers and prepaid cards. A liability is established equal to the cash paid upon purchase for the e-voucher or prepaid card. The Company recognizes revenue from (i) the prepaid services upon the use of the e-voucher or prepaid card by the customer and (ii) the estimated pattern of use. The Company does not offer refunds for unused prepaid services. Services sold to the U.S. government The Company provides airtime and airtime support to U.S. government and other authorized customers pursuant to the Enhanced Mobile Satellite Services (“EMSS”) contract managed by the U.S. Space Force. Under the terms of this agreement, authorized customers continue to utilize airtime services, provided through the U.S. government’s dedicated gateway. These services include unlimited global standard and secure voice, low and high-speed data, paging, broadcast and Distributed Tactical Communications Services (“DTCS”) services for an unlimited number of Department of Defense (“DoD”) and other federal subscribers. Under this contract, revenue is based on the annual fee for the fixed-price contract with unlimited subscribers and is recognized on a straight-line basis over each contractual year, with equal payments submitted monthly. The U.S. government purchases its subscriber equipment from third-party distributors and not directly from the Company. Subscriber equipment sold on a stand-alone basis The Company recognizes subscriber equipment sales and the related costs when title to the equipment (and the risks and rewards of ownership) passes to the customer, typically upon shipment. Customers are billed when inventory is shipped, and payment is generally due within 30 days. Customers do not have rights of return without prior consent from the Company. Government engineering and support services The Company provides maintenance services to the U.S. government’s dedicated gateway. This revenue is recognized ratably over the periods in which the services are provided; the related costs are expensed as incurred. Other government and commercial engineering and support services |
Research and Development | Research and Development Research and development costs are charged to expense in the period in which they are incurred. |
Advertising Costs | Advertising Costs |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability approach, which requires the recognition of tax benefits or expenses for temporary differences between the financial reporting and tax bases of assets and liabilities. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company also recognizes a tax benefit from uncertain tax positions only if it is “more likely than not” that the position is sustainable based on its technical merits. The Company’s policy is to recognize interest and penalties on uncertain tax positions as a component of income tax expense. |
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 potentially dilutive common shares when the effect is dilutive. The effect of potentially dilutive common shares, including common stock issuable upon exercise of outstanding stock options, is computed using the treasury stock method. The effect of potentially dilutive common shares from the conversion of outstanding convertible preferred securities was computed using the as-if converted method at the stated conversion rate. The Company’s unvested RSUs awarded to the board of directors contain non-forfeitable rights to dividends and therefore are considered to be participating securities in periods of net income. The calculation of basic and diluted net income (loss) per share excludes net income attributable to these unvested RSUs from the numerator and excludes the impact of these unvested RSUs from the denominator. |
Significant Accounting Polici_2
Significant Accounting Policies and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Inventory, Current | The following table summarizes the Company’s inventory balance: December 31, 2023 2022 (In thousands) Finished goods $ 48,698 $ 17,964 Raw materials 43,599 23,014 Inventory valuation reserve (1,162) (1,202) Total $ 91,135 $ 39,776 |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount | The following table presents the classification of stock-based compensation by line item on the balance sheet and statement of operations: As of and For Year Ended December 31, 2023 2022 (In thousands) Property and equipment, net $ 5,963 $ 4,018 Inventory 721 617 Cost of subscriber equipment 60 69 Cost of services (exclusive of depreciation and amortization) 16,128 12,337 Research and development 1,282 648 Selling, general and administrative 39,985 30,678 Total stock-based compensation $ 64,139 $ 48,367 |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Company's Cash and Cash Equivalents | The following table summarizes the Company’s cash and cash equivalents: December 31, Recurring Fair 2023 2022 (In thousands) Cash and cash equivalents: Cash $ 32,526 $ 16,247 Money market funds 39,344 152,523 Level 2 Total cash and cash equivalents $ 71,870 $ 168,770 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | The following table presents the composition of property and equipment: December 31, Useful Life 2023 2022 (In thousands) Satellite system 17.5 years $ 3,242,829 $ 3,197,460 Ground system 5-7 years 70,497 73,890 Equipment 3-5 years 51,788 49,423 Internally developed software and purchased software 3-7 years 332,824 297,538 Building and leasehold improvements 5-39 years 33,433 32,695 Total depreciable property and equipment 3,731,371 3,651,006 Less: accumulated depreciation (1,804,884) (1,538,535) Total depreciable property and equipment, net of accumulated depreciation 1,926,487 2,112,471 Land 8,037 8,037 Construction-in-process: Spare satellites 181,557 225,254 Other construction-in-process 79,677 87,543 Total property and equipment, net of accumulated depreciation $ 2,195,758 $ 2,433,305 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of identifiable intangible assets | The following table presents identifiable intangible assets: December 31, 2023 Useful Gross Accumulated Net (In thousands) Indefinite life intangible assets: Trade names Indefinite $ 21,195 $ — $ 21,195 Spectrum and licenses Indefinite 14,030 — 14,030 Total 35,225 — 35,225 Definite life intangible assets: Intellectual property 20 years 16,439 (10,987) 5,452 Assembled workforce 7 years 5,678 (5,678) — Patents 14 - 20 years 587 (169) 418 Total 22,704 (16,834) 5,870 Total intangible assets $ 57,929 $ (16,834) $ 41,095 December 31, 2022 Useful Gross Accumulated Net (In thousands) Indefinite life intangible assets: Trade names Indefinite $ 21,195 $ — $ 21,195 Spectrum and licenses Indefinite 14,030 — 14,030 Total 35,225 — 35,225 Definite life intangible assets: Intellectual property 20 years 16,439 (10,347) 6,092 Assembled workforce 7 years 5,678 (4,867) 811 Patents 14 - 20 years 576 (127) 449 Total 22,693 (15,341) 7,352 Total intangible assets $ 57,918 $ (15,341) $ 42,577 |
Schedule of finite-lived intangible assets, future amortization expense | The following table presents future amortization expense with respect to intangible assets existing at December 31, 2023, by year and in the aggregate: Year ending December 31, Amount (In thousands) 2024 $ 473 2025 473 2026 473 2027 473 2028 473 Thereafter 3,505 Total estimated future amortization expense $ 5,870 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Operating Leases, Right of Use Assets and Liabilities [Table Text Block] | The following table summarizes the Company’s lease-related assets and liabilities: Leases Classification December 31, 2023 December 31, 2022 (In thousands) Operating lease assets Noncurrent Other assets $ 16,133 $ 16,925 Total lease assets $ 16,133 $ 16,925 Operating lease liabilities Current Accrued expenses and other current liabilities $ 4,327 $ 3,784 Noncurrent Other long-term liabilities $ 14,087 15,801 Total lease liabilities $ 18,414 $ 19,585 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table presents future payment obligations with respect to the Company’s operating leases in which it was the lessee at December 31, 2023, by year and in the aggregate: Year Ending December 31, Amount (In thousands) 2024 $ 5,548 2025 5,646 2026 3,792 2027 2,226 2028 1,982 Thereafter 2,592 Total lease payments $ 21,786 |
Lessor, Operating Lease, Payments to be Received, Maturity [Table Text Block] | The following table presents future income, after giving effect to the extension of estimated useful lives of the satellites, with respect to the Company’s operating leases in which it was the lessor at December 31, 2023, by year and in the aggregate: Year Ending December 31, Amount (In thousands) 2024 $ 12,391 2025 12,391 2026 12,391 2027 12,391 2028 12,391 Thereafter 82,106 Total lease income $ 144,061 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Interest Expense Disclosure | The following table presents the interest and amortization of deferred financing fees related to the Term Loan: Year Ended December 31, 2023 2022 2021 (In thousands) Total interest incurred $ 102,321 $ 72,090 $ 72,816 Amortization of deferred financing fees $ 3,958 $ 4,760 $ 4,316 Capitalized interest $ 5,086 $ 2,590 $ 2,146 |
Schedule of future payments of credit facility | The following table presents future minimum principal repayments with respect to the Term Loan existing at December 31, 2023, by year and in the aggregate: Year ending December 31, Amount (In thousands) 2024 $ 15,000 2025 15,000 2026 15,000 2027 15,000 2028 15,000 Thereafter 1,425,000 Total debt commitments 1,500,000 Less: Original issuance discount 17,510 Less: Total short-term debt 15,000 Total long-term debt, net $ 1,467,490 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table presents the amount of unrealized gain or loss and related tax impact associated with the derivative instruments that the Company recorded in its consolidated statements of operations and comprehensive income (loss): Year Ended December 31, 2023 2022 2021 (In thousands) Unrealized gain (loss), net of tax $ (17,598) $ 58,668 $ 10,408 Tax benefit (expense) $ 5,379 $ (17,834) $ (3,316) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of share-based compensation, restricted stock units award activity | The following table summarizes the Company’s RSU activity: RSUs Weighted- (In thousands) Outstanding at December 31, 2020 2,664 $ 18.96 Granted 913 $ 41.55 Forfeited (115) $ 29.49 Released (912) $ 21.12 Outstanding at December 31, 2021 2,550 $ 25.80 Granted 1,562 $ 40.21 Forfeited (152) $ 32.80 Released (990) $ 30.05 Outstanding at December 31, 2022 2,970 $ 31.60 Granted 1,184 $ 57.85 Forfeited (76) $ 46.02 Released (1,283) $ 36.02 Outstanding at December 31, 2023 2,795 $ 40.24 Vested and unreleased at December 31, 2023 (1) 713 |
Schedule of Share-based compensation, stock options, activity | The following table summarizes the Company’s stock option award activity: Shares Weighted- Weighted- Aggregate (In thousands, except years and per share data) Options outstanding at December 31, 2020 2,554 $ 9.10 3.94 $ 77,182 Cancelled or expired (3) 10.67 Exercised (857) 8.51 $ 31,544 Forfeited (13) 16.07 Options outstanding at December 31, 2021 1,681 $ 9.35 3.28 $ 53,698 Cancelled or expired (1) 8.28 Exercised (494) 7.83 $ 18,992 Forfeited (1) 18.35 Options outstanding at December 31, 2022 1,185 $ 9.97 2.64 $ 49,094 Cancelled or expired (4) 10.25 Exercised (505) 7.84 $ 26,928 Options outstanding and exercisable at December 31, 2023 676 $ 11.55 2.39 $ 20,036 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table summarizes the Company’s services revenue: Year Ended December 31, 2023 2022 2021 (In thousands) Commercial services: Voice and data $ 219,242 $ 193,112 $ 175,584 IoT data 141,036 125,015 110,919 Broadband 57,878 51,143 42,990 Hosted payload and other data 60,298 59,451 58,611 Total commercial services 478,454 428,721 388,104 Government services 106,000 106,000 103,887 Total services $ 584,454 $ 534,721 $ 491,991 |
Summary of Company's Engineering and Support Service Revenue [Table Text Block] | The following table summarizes the Company’s engineering and support services revenue: Year Ended December 31, 2023 2022 2021 (In thousands) Commercial $ 11,050 $ 7,833 $ 4,613 Government 90,083 43,766 25,825 Total $ 101,133 $ 51,599 $ 30,438 |
Contract with Customer, Asset and Liability [Table Text Block] | The following table presents contract assets not separately disclosed: Year Ended December 31, 2023 2022 (In thousands) Contract Assets: Commissions $ 1,114 $ 1,258 Other contract costs $ 1,970 $ 2,255 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income tax, domestic and foreign | The following table presents U.S. and foreign components of income (loss) before income taxes: Year Ended December 31, 2023 2022 2021 (In thousands) U.S. income (loss) $ (10,596) $ 10,179 $ (31,352) Foreign income 5,849 331 2,464 Total income (loss) before income taxes $ (4,747) $ 10,510 $ (28,888) |
Schedule of components of income tax expense (benefit) | The following table summarizes the components of the Company’s income tax provision: Year Ended December 31, 2023 2022 2021 (In thousands) Current taxes: Federal tax benefit $ — $ — $ (537) State tax expense 1,032 272 42 Foreign tax expense 4,545 1,209 2,240 Total current tax (benefit) expense 5,577 1,481 1,745 Deferred taxes: Federal tax benefit (31,311) (3,354) (14,109) State tax expense (benefit) (226) 1,794 (6,686) Foreign tax expense (benefit) (291) 371 (519) Total deferred tax benefit (31,828) (1,189) (21,314) Total income tax expense (benefit) $ (26,251) $ 292 $ (19,569) |
Schedule of effective income tax rate reconciliation | The following table presents a reconciliation of the U.S. federal statutory income tax expense to the Company’s effective income tax provision. Any amounts that do not have a meaningful impact on this reconciliation are not separately disclosed. Year Ended December 31, 2023 2022 2021 (In thousands) Expected tax expense (benefit) at U.S. federal statutory tax rate $ (997) $ 1,893 $ (6,067) State taxes, net of federal benefit 927 1,260 (9,094) State tax valuation allowance (338) 748 711 Deferred impact of state tax law changes and elections — — 1,200 Equity-based compensation (10,234) (6,184) (9,597) Limitation on executive compensation deduction 4,011 2,905 3,140 Other nondeductible items 114 33 65 Tax credits (21,817) (949) (1,278) Foreign taxes 3,570 386 1,100 Other adjustments (1,487) 200 251 Total income tax expense (benefit) $ (26,251) $ 292 $ (19,569) |
Schedule of deferred tax assets and liabilities | The following table presents the components of deferred tax assets and liabilities: December 31, 2023 2022 (In thousands) Deferred tax assets Long-term contracts $ 51,226 $ 52,553 Federal, state and foreign net operating losses, other carryforwards and tax credits 351,094 374,767 Other 26,676 24,553 Total deferred tax assets 428,996 451,873 Valuation allowance (33,420) (34,643) Net deferred tax assets 395,576 417,230 Deferred tax liabilities Fixed assets, intangibles and research and development expenditures (425,980) (490,384) Investment in joint venture (63,108) (48,754) Other (19,336) (27,976) Total deferred tax liabilities (508,424) (567,114) Net deferred income tax liabilities $ (112,848) $ (149,884) |
Summary of income tax contingencies | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits which includes related interest and penalties: Year Ended December 31, 2023 2022 (In thousands) Balance at January 1, $ — $ — Change attributable to tax positions taken in a prior period 2,162 — Change attributable to tax positions taken in the current period 236 — Balance at December 31, $ 2,398 $ — |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Computations of basic and diluted net income per share | The following table summarizes the computations of basic and diluted net loss per common share: Year Ended December 31, 2023 2022 2021 (In thousands, except per share data) Numerator: Net income (loss) attributable to common stockholders - basic and diluted $ 15,415 $ 8,722 $ (9,319) Denominator: Weighted average common shares - basic 125,598 128,255 133,530 Weighted average common shares - diluted 127,215 130,134 133,530 Net income (loss) attributable to common stockholders per share - basic and diluted $ 0.12 $ 0.07 $ (0.07) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table presents the incremental number of shares underlying stock options and RSUs outstanding with anti-dilutive effects: Year Ended December 31, 2023 2022 2021 (In thousands) Performance-based RSUs — 210 183 Service-based RSUs — — 536 Stock options — — 1,189 |
Segments, Significant Custome_2
Segments, Significant Customers, Supplier and Service Providers and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segments, Geographical Areas [Abstract] | |
Schedule of long lived assets by geographical areas | The following table summarizes net property and equipment by geographic area: December 31, 2023 2022 (In thousands) United States $ 412,002 $ 461,820 Satellites in orbit 1,782,000 1,968,999 All others 1,756 2,486 Total $ 2,195,758 $ 2,433,305 |
Revenue from external customers by geographic areas | The following table summarizes revenue by geographic area: Year Ended December 31, 2023 2022 2021 (In thousands) United States $ 431,476 $ 374,687 $ 330,948 Other countries (1) 359,247 346,347 283,552 Total $ 790,723 $ 721,034 $ 614,500 |
Significant Accounting Polici_3
Significant Accounting Policies and Basis of Presentation - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory, Net [Abstract] | ||
Finished goods | $ 48,698 | $ 17,964 |
Raw materials | 43,599 | 23,014 |
Inventory valuation reserve | (1,162) | (1,202) |
Inventory | $ 91,135 | $ 39,776 |
Significant Accounting Polici_4
Significant Accounting Policies and Basis of Presentation - Classification of Stock-based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation | $ 64,139 | $ 48,367 |
Significant Accounting Polici_5
Significant Accounting Policies and Basis of Presentation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Allowance for doubtful accounts | The allowance for doubtful accounts was not material as of December 31, 2023 and 2022. | ||
Definition: Three Year Cumulative Inflation Rate - Highly Inflationary Economy | 100% | ||
Inventory Impairment, Policy | The Company’s expense for excess and obsolete inventory was not material during the years ended December 31, 2023, 2022 or 2021. | ||
Basic Earnings Per Share Adjustment, Pro Forma | $ 0.21 | ||
Earnings Per Share, Diluted, Pro Forma Adjustment | $ 0.20 | ||
Advertising expense | $ 1.4 | $ 1.7 | $ 1.9 |
Other Inventory, Materials, Supplies and Merchandise under Consignment, Gross | $ 32.2 | $ 9 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents | ||
Cash and cash equivalents | $ 71,870 | $ 168,770 |
Cash | ||
Cash and Cash Equivalents | ||
Cash | 32,526 | 16,247 |
Fair Value, Inputs, Level 2 | Money Market Funds | ||
Cash and Cash Equivalents | ||
Money market funds | $ 39,344 | $ 152,523 |
Property and Equipment - Summar
Property and Equipment - Summary of Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Satellite system | $ 3,242,829 | $ 3,197,460 |
Ground system | 70,497 | 73,890 |
Equipment | 51,788 | 49,423 |
Internally developed software and purchased software | 332,824 | 297,538 |
Building and leasehold improvements | 33,433 | 32,695 |
Total depreciable property and equipment | 3,731,371 | 3,651,006 |
Less: accumulated depreciation | (1,804,884) | (1,538,535) |
Total depreciable property and equipment, net of accumulated depreciation | 1,926,487 | 2,112,471 |
Land | 8,037 | 8,037 |
Spare satellites | 181,557 | 225,254 |
Other construction-in-process | 79,677 | 87,543 |
Total property and equipment, net of accumulated depreciation | $ 2,195,758 | $ 2,433,305 |
Satellite System | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 17 years 6 months | 12 years 6 months |
Satellite System | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 17 years 6 months | |
Satellite System | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 17 years 6 months | |
Ground System [Member] | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 7 years | |
Ground System [Member] | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Computer Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Computer Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Internally developed software and purchased software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 7 years | |
Internally developed software and purchased software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Building and leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 39 years | |
Building and leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Depreciation [Abstract] | |||
Depreciation | $ 318.5 | $ 301.9 | $ 303.8 |
Intangible Assets - Indentifiab
Intangible Assets - Indentifiable Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 35,225 | $ 35,225 |
Finite-Lived Intangible Assets, Gross | 22,704 | 22,693 |
Gross Carrying Value | 57,929 | 57,918 |
Amortization of intangible assets | 16,834 | 15,341 |
Net Carrying Value | 5,870 | 7,352 |
Intangible assets, net | 41,095 | 42,577 |
Intellectual Property | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 16,439 | 16,439 |
Amortization of intangible assets | 10,987 | 10,347 |
Net Carrying Value | $ 5,452 | $ 6,092 |
Definite-lived intangible asset | 20 years | 20 years |
Assembled workforce | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 5,678 | $ 5,678 |
Amortization of intangible assets | 5,678 | 4,867 |
Net Carrying Value | $ 0 | $ 811 |
Definite-lived intangible asset | 7 years | 7 years |
Patents | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 587 | $ 576 |
Amortization of intangible assets | 169 | 127 |
Net Carrying Value | $ 418 | $ 449 |
Patents | Minimum | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Definite-lived intangible asset | 14 years | 14 years |
Patents | Maximum | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Definite-lived intangible asset | 20 years | 20 years |
Trade names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 21,195 | $ 21,195 |
Spectrum and licensing | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 14,030 | $ 14,030 |
Intangible Assets - Future Amor
Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 473 | |
2025 | 473 | |
2026 | 473 | |
2027 | 473 | |
2028 | 473 | |
Thereafter | 3,505 | |
Finite-Lived Intangible Assets, Net | $ 5,870 | $ 7,352 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 1.5 | $ 1.6 | $ 1.6 |
Lease Account Summary (Details)
Lease Account Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets and Liabilities, Lessee [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 16,133 | $ 16,925 |
Operating Lease, Liability, Current | 4,327 | 3,784 |
Operating Lease, Liability, Noncurrent | 14,087 | 15,801 |
Total Operating Lease Liabilities | $ 18,414 | $ 19,585 |
Lease Future Payment Obligation
Lease Future Payment Obligations (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Operating Leases, Future Minimum Payments Due, Rolling Maturity [Abstract] | |
2024 | $ 5,548 |
2025 | 5,646 |
2026 | 3,792 |
2027 | 2,226 |
2028 | 1,982 |
Thereafter | 2,592 |
Total lease payments | $ 21,786 |
Lessor Payments to be Received
Lessor Payments to be Received (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Lessor, Operating Lease, Payment to be Received, Rolling Maturity [Abstract] | |
2024 | $ 12,391 |
2025 | 12,391 |
2026 | 12,391 |
2027 | 12,391 |
2028 | 12,391 |
Thereafter | 82,106 |
Total Operating Lease Payments to be Received | $ 144,061 |
Leases Narrative (Details)
Leases Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Lessee, Operating Lease, Renewal Term | 10 years | ||
Operating Lease, Weighted Average Remaining Lease Term | 4 years 8 months 12 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 6.70% | ||
Operating Lease, Expense | $ 5.2 | $ 5.2 | $ 5.6 |
Lessor, Operating Lease, Term of Contract | 17 years 6 months | ||
Operating Lease, Lease Income | $ 19.2 | $ 21.4 |
Debt- Narrative (Details)
Debt- Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Sep. 20, 2023 USD ($) | Dec. 31, 2023 USD ($) Rate | Dec. 31, 2023 USD ($) Rate | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Feb. 07, 2020 USD ($) | Nov. 04, 2019 USD ($) Rate | |
Debt [Line Items] | |||||||
Long-term Debt, Gross | $ 1,500,000 | $ 1,500,000 | |||||
Debt Instrument, Annual Principal Payment | 15,000 | 15,000 | |||||
Payment for Debt Extinguishment or Debt Prepayment Cost | 100,000 | ||||||
Loss on extinguishment of debt | 1,200 | 0 | $ 1,187 | $ 879 | |||
Total Long Term Debt, Net | 1,467,490 | 1,467,490 | 1,470,685 | ||||
Ratio of Indebtedness to Net Capital | 6.25 | ||||||
Payments of Financing Costs | 15,900 | ||||||
Interest Expense | 14,700 | ||||||
Interest payable | $ 1,000 | $ 1,000 | 300 | ||||
Revolving Credit Facility [Member] | |||||||
Debt [Line Items] | |||||||
Long-term Debt, Gross | $ 100,000 | ||||||
Debt Instrument, Fee | 0.5 | ||||||
Debt Issuance Costs, Gross | $ 1,200 | ||||||
Credit Facility Drawdown Floor for Application of First Lien Net Leverage Ratio | Rate | 35% | ||||||
Revolving Credit Facility [Member] | Minimum | |||||||
Debt [Line Items] | |||||||
Debt Instrument, Fee | 0.375 | ||||||
Revolving Credit Facility [Member] | Interest Rate Floor [Member] | |||||||
Debt [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 0% | ||||||
Term Loan B (Additional) [Member] | |||||||
Debt [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 2.50% | ||||||
Term Loan B (Additional) [Member] | Interest Rate Floor [Member] | |||||||
Debt [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | Rate | 75% | ||||||
Term Loan B | |||||||
Debt [Line Items] | |||||||
Long-term Debt, Gross | $ 1,500,000 | ||||||
Debt Issuance Costs, Gross | 3,800 | ||||||
Extinguishment of Debt, Amount | $ 16,800 | ||||||
Debt Instrument, Face Amount | 1,504,600 | ||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 17,500 | $ 17,500 | 17,400 | ||||
Total Long Term Debt, Net | 1,482,500 | 1,482,500 | 1,487,200 | ||||
Long-term Debt, Fair Value | $ 1,506,600 | $ 1,506,600 | $ 1,494,300 |
Debt - Interest Incurred (Detai
Debt - Interest Incurred (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |||
Total interest incurred | $ 102,321 | $ 72,090 | $ 72,816 |
Amortization of deferred financing fees | 3,958 | 4,760 | 4,316 |
Capitalized interest | $ 5,086 | $ 2,590 | $ 2,146 |
Debt Future Payments (Details)
Debt Future Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Senior Unsecured Notes [Line Items] | ||
2024 | $ 15,000 | |
2025 | 15,000 | |
2026 | 15,000 | |
2027 | 15,000 | |
2028 | 15,000 | |
Thereafter | 1,425,000 | |
Long-term Debt, Gross | 1,500,000 | |
Less: Original issuance discount | 17,510 | |
Less: Total short-term debt | 15,000 | |
Total Long Term Debt, Net | $ 1,467,490 | $ 1,470,685 |
Derivative Instruments - Summar
Derivative Instruments - Summary of Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Unrealized gain (loss) on cash flow hedges, net of tax | $ (17,598) | $ 58,668 | $ 10,408 |
Tax benefit (expense) | $ 5,379 | $ (17,834) | $ (3,316) |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest Rate Swaps [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ 3,300,000 | $ 3,300,000 | $ 8,500,000 |
Derivative, Gain on Derivative | 36,200,000 | $ 7,200,000 | |
Interest Rate Swaption [Member] | |||
Interest Rate Swaps [Line Items] | |||
Derivative, Fixed Interest Rate | 0.50% | ||
Interest Rate Swap [Member] | |||
Interest Rate Swaps [Line Items] | |||
Derivative, Fixed Interest Rate | 1.565% | ||
Derivative, Notional Amount | $ 1 | ||
Interest Rate Cap | |||
Interest Rate Swaps [Line Items] | |||
Derivative, Fixed Interest Rate | 0.31% | ||
Derivative, Notional Amount | $ 1,000,000,000 | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | 66,500,000 | $ 92,300,000 | |
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 8,400,000 | $ 11,000,000 | |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Interest Rate Swaps [Line Items] | |||
Cap Credit Risk Adjustment [Line Items] | (0.064%) | ||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Interest Rate Cap | |||
Interest Rate Swaps [Line Items] | |||
Derivative, Cap Interest Rate | 1.436% |
Stock-Based Compensation Outsta
Stock-Based Compensation Outstanding RSUs (Details) - Restricted stock units (RSUs) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
RSUs | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 2,795 | 2,970 | 2,550 | 2,664 |
Granted - restricted stock units | 1,184 | 1,562 | 913 | |
Forfeited - restricted stock units | (76) | (152) | (115) | |
Released - restricted stock units | (1,283) | (990) | (912) | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Option, Nonvested, Weighted Average Exercise Price | $ 40.24 | $ 31.60 | $ 25.80 | $ 18.96 |
Vested - restricted stock units | 713 | |||
Weighted-Average Exercise Price | ||||
Granted - weighted average grant date fair value per RSU | $ 57.85 | 40.21 | 41.55 | |
Forfeited - weighted average grant date fair value per RSU | 46.02 | 32.80 | 29.49 | |
Released - weighted average grant date fair value per RSU | $ 36.02 | $ 30.05 | $ 21.12 |
Stock-Based Compensation Activi
Stock-Based Compensation Activity Of Company's Stock Options (Details) - Employee stock option - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding | ||||
Options outstanding, beginning of period (in shares) | 1,185 | 1,681 | 2,554 | |
Options Cancelled or expired - Shares | (4) | (1) | (3) | |
Options Exercised - Shares | (505) | (494) | (857) | |
Options Forfeited - Shares | (1) | (13) | ||
Options outstanding, end of period (in shares) | 676 | 1,185 | 1,681 | 2,554 |
Weighted-Average Exercise Price | ||||
Options outstanding, beginning of period - weighted average exercise price per share | $ 9.97 | $ 9.35 | $ 9.10 | |
Options cancelled or expired - weighted average exercise price per share | 10.25 | 8.28 | 10.67 | |
Options exercised - weighted average exercise price per share | 7.84 | 7.83 | 8.51 | |
Options forfeited - weighted average exercise price per share | 18.35 | 16.07 | ||
Options outstanding, end of period - weighted average exercise price per share | $ 11.55 | $ 9.97 | $ 9.35 | $ 9.10 |
Options outstanding, end of period - weighted average remaining contractual term (years) | 2 years 4 months 20 days | 2 years 7 months 20 days | 3 years 3 months 10 days | 3 years 11 months 8 days |
Aggregate Intrinsic Value | ||||
Options outstanding, end of period - aggregate intrinsic value | $ 20,036 | $ 49,094 | $ 53,698 | $ 77,182 |
Aggregate Intrinsic Value of Stock Options Exercised | $ 26,928 | $ 18,992 | $ 31,544 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 676 | 1,185 | 1,681 | 2,554 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 11.55 | $ 9.97 | $ 9.35 | $ 9.10 |
Options outstanding, end of period - weighted average remaining contractual term (years) | 2 years 4 months 20 days | 2 years 7 months 20 days | 3 years 3 months 10 days | 3 years 11 months 8 days |
Options outstanding, end of period - aggregate intrinsic value | $ 20,036 | $ 49,094 | $ 53,698 | $ 77,182 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 4 | 1 | 3 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 505 | 494 | 857 | |
Options exercised - weighted average exercise price per share | $ 7.84 | $ 7.83 | $ 8.51 | |
Aggregate Intrinsic Value of Stock Options Exercised | $ 26,928 | $ 18,992 | $ 31,544 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 1 | 13 | ||
Options forfeited - weighted average exercise price per share | $ 18.35 | $ 16.07 |
Stock-Based Compensation Narrat
Stock-Based Compensation Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for future grant | 12,917,165 | ||
Share-Base Compensation Award, Reduction In Shares Available For Issuance By Shares Issued Pursuant To Any Appreciation Award | 1 | ||
Equity Plan - Purchase Price of Common Stock, Percent | 100% | ||
Share-Based Compensation Award, Reduction in Shares Available for Issuance by Shares Issued Pursuant to Any Stock Award that is not an Appreciation Award | 1.8 | ||
Employee stock option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation vesting period | 4 years | 4 years | 4 years |
Stock Option Contractual Term | 10 years | 10 years | 10 years |
Fair value of options vested | $ 600 | $ 2,300 | |
Employee stock option | Vesting on first anniversary of grant date | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights percentage | 25% | 25% | 25% |
Employee stock option | Vesting on the last day of each calendar quarter | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights percentage | 6.25% | 6.25% | 6.25% |
Restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonvested awards, compensation cost not yet recognized, total | $ 42,600 | ||
Nonvested awards, compensation cost not yet recognized, period for recognition | 1 year 4 months 24 days | ||
Granted - restricted stock units | 1,184,000 | 1,562,000 | 913,000 |
RSUs Granted - Grant Date Fair Value | $ 100 | $ 300 | $ 100 |
Restricted stock units (RSUs) | Vesting on the last day of each calendar quarter | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights percentage | 150% | 150% | 150% |
Restricted stock units (RSUs) | Employee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation vesting period | 4 years | 4 years | 4 years |
Restricted stock units (RSUs) | Employee | Vesting on first anniversary of grant date | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights percentage | 25% | 25% | 25% |
Restricted stock units (RSUs) | Employee | Vesting on the last day of each calendar quarter | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights percentage | 6.25% | 6.25% | 6.25% |
Restricted stock units (RSUs) | Nonemployee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted - restricted stock units | 1,000 | 7,000 | 2,000 |
Restricted stock units (RSUs) | Nonemployee | Vesting on first anniversary of grant date | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights percentage | 50% | 50% | 50% |
Restricted stock units (RSUs) | Nonemployee | Vesting on the last day of each calendar quarter | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights percentage | 12.50% | 12.50% | 12.50% |
Restricted stock units (RSUs) | Director | Vesting on first anniversary of grant date | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights percentage | 100% | 100% | 100% |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation vesting period | 1 year | 1 year | 1 year |
Granted - restricted stock units | 193,000 | 248,000 | 228,000 |
RSUs Granted - Grant Date Fair Value | $ 11,900 | $ 9,700 | $ 9,500 |
Performance Shares | Executive Officer | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation vesting period | 3 years | 3 years | 3 years |
Award Performance Period | 2 years | 2 years | 2 years |
Granted - restricted stock units | 134,000 | 167,000 | 110,000 |
RSUs Granted - Grant Date Fair Value | $ 8,200 | $ 6,500 | $ 4,600 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Other Share Increase (Decrease) | 55,000 | 50,000 | 3,000 |
Performance Shares | Executive Officer | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights percentage | 0% | 0% | 0% |
Performance Shares | Executive Officer | Vesting on first anniversary of grant date | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights percentage | 50% | 50% | 50% |
Performance Shares | Executive Officer | Vesting on the last day of each calendar quarter | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting rights percentage | 50% | 50% | 50% |
Service based R S U | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted - restricted stock units | 746,000 | 1,082,000 | 531,000 |
RSUs Granted - Grant Date Fair Value | $ 43,000 | $ 44,200 | $ 22,000 |
Service based R S U | Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted - restricted stock units | 55,000 | 57,000 | 39,000 |
RSUs Granted - Grant Date Fair Value | $ 2,900 | $ 2,200 | $ 1,600 |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock or Unit Expense | $ 57,500 | $ 43,200 | $ 26,000 |
Equity Transactions Narrative (
Equity Transactions Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 05, 2021 | Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | ||||||
Preferred stock, shares authorized | 2,000,000 | 2,000,000 | ||||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | ||||
Preferred stock, shares issued | 1,500,000 | |||||
Shares of preferred stock, undesignated and unissued | 500,000 | 500,000 | 500,000 | |||
Preferred Stock, Shares Outstanding | 0 | 0 | 0 | |||
Common Stock, Dividends, Per Share, Declared | $ 0.13 | |||||
Payment of common stock dividends | $ (64,774) | $ 0 | $ 0 | |||
Dividends accrued on common stock | $ 1,315 | $ 1,315 | $ 16,616 | $ 0 | ||
Stock Repurchase Program, Authorized Amount | $ 1,000,000 | |||||
Treasury Stock, Shares, Retired | 4,800,000 | 6,800,000 | 4,300,000 | |||
Treasury Stock, Retired, Cost Method, Amount | $ 244,600 | $ 257,000 | $ 163,400 | |||
Treasury Stock, Value, tax | 1,400 | |||||
Treasury Stock, Shares, Acquired | 26,000 | |||||
Treasury Stock, Value | $ 1,000 | 1,000 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 334,000 | $ 334,000 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Contract with Customer, Liability, Revenue Recognized | $ 31,400 | $ 26,300 | $ 43,000 |
Disaggregation of Revenue [Line Items] | |||
Total Revenue | 790,723 | 721,034 | 614,500 |
Engineering and support services | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenue | 101,133 | 51,599 | 30,438 |
Commercial | Engineering and support services | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenue | 11,050 | 7,833 | 4,613 |
Government | Engineering and support services | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenue | $ 90,083 | $ 43,766 | $ 25,825 |
Revenue - Summary of Service Re
Revenue - Summary of Service Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 790,723 | $ 721,034 | $ 614,500 |
Voice and data | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 219,242 | 193,112 | 175,584 |
IoT data | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 141,036 | 125,015 | 110,919 |
Broadband | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 57,878 | 51,143 | 42,990 |
Hosted payload and other data | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 60,298 | 59,451 | 58,611 |
Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 584,454 | 534,721 | 491,991 |
Services | Commercial | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 478,454 | 428,721 | 388,104 |
Services | Government | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 106,000 | 106,000 | 103,887 |
Engineering and support services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 101,133 | 51,599 | 30,438 |
Engineering and support services | Commercial | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 11,050 | 7,833 | 4,613 |
Engineering and support services | Government | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 90,083 | $ 43,766 | $ 25,825 |
Revenue - Summary of Contract C
Revenue - Summary of Contract Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Commissions | ||
Capitalized Contract Cost [Line Items] | ||
Contract Assets | $ 1,114 | $ 1,258 |
Other Contract Assets | ||
Capitalized Contract Cost [Line Items] | ||
Contract Assets | $ 1,970 | $ 2,255 |
Income (loss) before Taxes Tabl
Income (loss) before Taxes Table (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. income (loss) | $ (10,596) | $ 10,179 | $ (31,352) |
Foreign income | 5,849 | 331 | 2,464 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ (4,747) | $ 10,510 | $ (28,888) |
Income Tax Expense (Benefit) (D
Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal tax benefit | $ 0 | $ 0 | $ (537) |
State tax expense | 1,032 | 272 | 42 |
Foreign tax expense | 4,545 | 1,209 | 2,240 |
Total current tax (benefit) expense | 5,577 | 1,481 | 1,745 |
Federal tax benefit | (31,311) | (3,354) | (14,109) |
State tax expense (benefit) | (226) | 1,794 | (6,686) |
Foreign tax expense (benefit) | (291) | 371 | (519) |
Deferred income taxes | (31,828) | (1,189) | (21,314) |
Income Tax Expense (Benefit) | (26,251) | 292 | (19,569) |
Expected tax expense (benefit) at U.S. federal statutory tax rate | (997) | 1,893 | (6,067) |
State taxes, net of federal benefit | 927 | 1,260 | (9,094) |
State tax valuation allowance | (338) | 748 | 711 |
Deferred impact of state tax law changes and elections | 0 | 0 | 1,200 |
Equity-based compensation | (10,234) | (6,184) | (9,597) |
Limitation on executive compensation deduction | 4,011 | 2,905 | 3,140 |
Other nondeductible items | 114 | 33 | 65 |
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | (21,817) | (949) | (1,278) |
Foreign tax expense | 3,570 | 386 | 1,100 |
Other adjustments | $ (1,487) | $ 200 | $ 251 |
Income Tax Rate Reconciliation
Income Tax Rate Reconciliation Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Expected tax expense (benefit) at U.S. federal statutory tax rate | $ (997) | $ 1,893 | $ (6,067) |
State taxes, net of federal benefit | 927 | 1,260 | (9,094) |
State tax valuation allowance | (338) | 748 | 711 |
Deferred impact of state tax law changes and elections | 0 | 0 | 1,200 |
Equity-based compensation | (10,234) | (6,184) | (9,597) |
Limitation on executive compensation deduction | 4,011 | 2,905 | 3,140 |
Other nondeductible items | 114 | 33 | 65 |
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | (21,817) | (949) | (1,278) |
Foreign tax expense | 3,570 | 386 | 1,100 |
Other adjustments | (1,487) | 200 | 251 |
Income Tax Expense (Benefit) | $ (26,251) | $ 292 | $ (19,569) |
Deferred Tax Assets (Liabilitie
Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Long-term contracts | $ 51,226 | $ 52,553 |
Federal, state and foreign net operating losses, other carryforwards and tax credits | 351,094 | 374,767 |
Other | 26,676 | 24,553 |
Deferred Tax Assets, Gross | 428,996 | 451,873 |
Deferred Tax Assets, Valuation Allowance | (33,420) | (34,643) |
Deferred Tax Assets, Net of Valuation Allowance | 395,576 | 417,230 |
Deferred Tax Liabilities Fixed Assets And Intangibles | (425,980) | (490,384) |
Investment in joint venture | (63,108) | (48,754) |
Deferred Tax Liabilities, Other | (19,336) | (27,976) |
Deferred Tax Liabilities, Gross | (508,424) | (567,114) |
Deferred Tax Liabilities, Net | $ (112,848) | $ (149,884) |
Unrecognized Tax Benefits (Deta
Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Unrecognized Tax Benefits | $ 2,400 | $ 0 | |
Internal Revenue Service (IRS) [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Unrecognized Tax Benefits | 2,398 | 0 | $ 0 |
Internal Revenue Service (IRS) [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 2,162 | 0 | |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | $ 236 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Deferred income tax assets, net | $ 1,800 | |
Deferred Income Tax Liabilities, Net | 114,642 | $ 151,569 |
Operating loss carryforwards | 59,200 | 60,000 |
Deferred Tax Assets, Valuation Allowance | 33,420 | 34,643 |
Deferred tax assets, in process research and development | 32,300 | 12,100 |
Deferred tax assets, tax credit carryforwards, foreign | 8,700 | 5,200 |
Foreign tax credit carry forward valuation allowance increase | 500 | |
Unrecognized Tax Benefits | $ 2,400 | 0 |
Document Period End Date | Dec. 31, 2023 | |
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 59,200 | 60,000 |
Deferred Tax Assets, Valuation Allowance | 33,420 | 34,643 |
Research Tax Credit Carryforward | ||
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Valuation Allowance | 2,400 | |
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | 2,400 | |
Domestic tax authority | ||
Income Tax Disclosure [Abstract] | ||
Operating loss carryforwards | 257,400 | 296,400 |
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 257,400 | 296,400 |
Foreign tax authority | ||
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Valuation Allowance | 200 | 400 |
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | 200 | 400 |
Foreign tax authority | Tax Year 2022 and Later | ||
Income Tax Disclosure [Abstract] | ||
Operating loss carryforwards | 500 | 700 |
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 500 | 700 |
State and Local Jurisdiction | Valuation Allowance, Operating Loss Carryforwards | ||
Income Tax Disclosure [Abstract] | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 33,000 | 33,300 |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance, deferred tax asset, increase (decrease), amount | $ (33,000) | $ (33,300) |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Denominator: | |||
Weighted average shares outstanding - basic | 125,598 | 128,255 | 133,530 |
Weighted Average Number of Shares Outstanding, Diluted | 127,215 | 130,134 | 133,530 |
Earnings Per Share, Basic and Diluted | $ 0.12 | $ 0.07 | $ (0.07) |
Net income (loss) | $ 15,415 | $ 8,722 | $ (9,319) |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Anti-Dilutive Shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Performance Shares | |||
Antidilutive Securities [Line Items] | |||
Antidilutive securities excluded from computation of diluted earnings per share | 0 | 210 | 183 |
Employee stock option | |||
Antidilutive Securities [Line Items] | |||
Antidilutive securities excluded from computation of diluted earnings per share | 0 | 0 | 1,189 |
Restricted Stock | |||
Antidilutive Securities [Line Items] | |||
Antidilutive securities excluded from computation of diluted earnings per share | 0 | 0 | 536 |
Net Income Per Share (Details)
Net Income Per Share (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2023 shares | |
Antidilutive Securities [Line Items] | |
Incremental Common Shares Attributable to Dilutive Effect of Contingently Issuable Shares | 200 |
Restricted stock units (RSUs) | |
Antidilutive Securities [Line Items] | |
Antidilutive securities excluded from computation of diluted earnings per share | 200 |
Antidilutive securities excluded from computation of diluted earnings per share | 200 |
Related Party Transaction Dis_2
Related Party Transaction Disclosure (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ 3,500 | ||
Revenues | 790,723 | $ 721,034 | $ 614,500 |
Equity Method Investee [Member] | Hosting Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Revenues | 14,400 | 16,100 | |
Equity Method Investee [Member] | Service Agreements | |||
Related Party Transaction [Line Items] | |||
Revenues | 23,500 | ||
Aireon | |||
Related Party Transaction [Line Items] | |||
Investor Bridge Loan Commitment | 11,900 | ||
Aireon | Equity Method Investee [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts Receivable, after Allowance for Credit Loss | 2,200 | ||
Aireon | Equity Method Investee [Member] | Redeemable Preferred Stock | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ 50,000 | ||
Equity Method Investment, Ownership Percentage | 6% | ||
Equity Method Investments, Fair Value Disclosure | $ 44,600 | $ 48,800 | |
Aireon | Equity Method Investee [Member] | Hosting Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 94,500 | ||
Aireon | Equity Method Investee [Member] | Hosting Agreement [Member] | Forecast [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ 200,000 | ||
Aireon | Nonconsolidated Investees, Other | |||
Related Party Transaction [Line Items] | |||
Equity Method Investment, Ownership Percentage | 39.50% | ||
Satelles Equity Investment | |||
Related Party Transaction [Line Items] | |||
Equity Method Investments, Fair Value Disclosure | $ 21,800 | ||
Satelles Equity Investment | Equity Method Investee [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ 10,000 | ||
Nonconsolidated Investees, Other | Satelles Equity Investment | |||
Related Party Transaction [Line Items] | |||
Equity Method Investment, Ownership Percentage | 19.50% |
Segments, Significant Custome_3
Segments, Significant Customers, Supplier and Service Providers and Geographic Information Net Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 2,195,758 | $ 2,433,305 |
United states | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 412,002 | 461,820 |
Satellites in orbit | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 1,782,000 | 1,968,999 |
All others | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 1,756 | $ 2,486 |
Segments, Significant Custome_4
Segments, Significant Customers, Supplier and Service Providers and Geographic Information Revenue By Geographic (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 790,723 | $ 721,034 | $ 614,500 |
United States | |||
Segment Reporting Information [Line Items] | |||
Revenues | 431,476 | 374,687 | 330,948 |
Other countries | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 359,247 | $ 346,347 | $ 283,552 |
Segments, Significant Custome_5
Segments, Significant Customers, Supplier and Service Providers and Geographic Information Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2023 Rate | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
No Single Customer Over 10% Total Revenue - Commercial | 10% | 10% | |
No Single Customer Over 10% Total AR - Government | 10% | 10% | |
No Single Customer Over 10% Total Revenue - Government | 10% | 10% | |
No Single Country Greater than Stated Percentage - PP&E | 10% | 10% | |
No Single Country or Region Representing More Than Stated Percentage of Total Revenue | 10% | ||
Sales revenue, net | Customer Concentration Risk | Prime contracts with U.S. government | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 25% | 21% | 21% |
Accounts receivable | Customer Concentration Risk | Prime contracts with U.S. government | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 46% | 25% |
Employee Benefit Plan Narrative
Employee Benefit Plan Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Defined-contribution plan matching employees’ contributions vested percentage | 100% | 100% | |
Maximum employee contribution percentage | 100% | 100% | |
Maximum deferral contribution percentage | 5% | 5% | |
Defined-contribution plan employer-matching contributions amount | $ 4.3 | $ 3.5 | $ 3.5 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | 2 Months Ended |
Feb. 15, 2024 $ / shares | |
Subsequent Event [Line Items] | |
Dividends Payable, Date Declared | Feb. 02, 2024 |
Dividends Payable, Amount Per Share | $ 0.13 |
Dividends Payable, Date to be Paid | Mar. 29, 2024 |
Dividends Payable, Date of Record | Mar. 15, 2024 |
Uncategorized Items - irdm-2023
Label | Element | Value |
Share-Based Compensation, Selling, General and Administrative Expense | irdm_ShareBasedCompensationSellingGeneralandAdministrativeExpense | $ 39,985,000 |
Share-Based Compensation, Selling, General and Administrative Expense | irdm_ShareBasedCompensationSellingGeneralandAdministrativeExpense | 30,678,000 |
Share-Based Compensation, Cost of Services | irdm_ShareBasedCompensationCostofServices | 12,337,000 |
Share-Based Compensation, Cost of Services | irdm_ShareBasedCompensationCostofServices | 16,128,000 |
Share-Based Compensation, Property and Equipment, Net | irdm_ShareBasedCompensationPropertyandEquipmentNet | 4,018,000 |
Share-Based Compensation, Property and Equipment, Net | irdm_ShareBasedCompensationPropertyandEquipmentNet | 5,963,000 |
Share-Based Compensation, Research and Development | irdm_ShareBasedCompensationResearchandDevelopment | 1,282,000 |
Share-Based Compensation, Research and Development | irdm_ShareBasedCompensationResearchandDevelopment | 648,000 |
Share-Based Compensation, Equipment Expense | irdm_ShareBasedCompensationEquipmentExpense | 69,000 |
Share-Based Compensation, Equipment Expense | irdm_ShareBasedCompensationEquipmentExpense | 60,000 |
Share-Based Compensation, Inventory, Net | irdm_ShareBasedCompensationInventoryNet | 721,000 |
Share-Based Compensation, Inventory, Net | irdm_ShareBasedCompensationInventoryNet | 617,000 |
Hosted Payload and Other Data Services [Member] | ||
Revenue, increase (decrease) due to change in estimate | irdm_RevenueIncreaseDecreaseDueToChangeInEstimate | 2,300,000 |
Satellite System, Gross | ||
Impairment of Long-Lived Assets to be Disposed of | us-gaap_ImpairmentOfLongLivedAssetsToBeDisposedOf | 37,500,000 |
Depreciation expense, Increase (decrease) due change in estimated useful life | irdm_DepreciationExpenseIncreaseDecreaseDueChangeInEstimatedUsefulLife | $ 27,800,000 |