Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | ||
Mar. 31, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | |
Voting Common Stock [Member] | Nonvoting Common Stock [Member] | ||
Entity Information [Line Items] | ' | ' | ' |
Document Type | '10-Q | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Mar-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q1 | ' | ' |
Trading Symbol | 'lorl | ' | ' |
Entity Registrant Name | 'LORAL SPACE & COMMUNICATIONS INC. | ' | ' |
Entity Central Index Key | '0001006269 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 21,414,212 | 9,505,673 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $73,624 | $5,926 |
Notes receivable | 33,667 | 67,333 |
Income taxes receivable | 13,130 | 13,234 |
Deferred tax assets | ' | 3,784 |
Other current assets | 6,546 | 568 |
Total current assets | 126,967 | 90,845 |
Long-term receivables | ' | 33,667 |
Investments in affiliates | 110,814 | 116,820 |
Long-term deferred tax assets | 84,816 | 83,708 |
Other assets | 80 | 2,700 |
Total assets | 322,677 | 327,740 |
Current liabilities: | ' | ' |
Accrued employment costs | 1,291 | 960 |
Other current liabilities | 16,109 | 8,750 |
Total current liabilities | 17,400 | 9,710 |
Pension and other postretirement liabilities | 16,253 | 17,003 |
Long-term liabilities | 95,176 | 93,117 |
Total liabilities | 128,829 | 119,830 |
Commitments and contingencies | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock, 0.01 par value; 10,000,000 shares authorized, no shares issued and outstanding | ' | ' |
Common Stock: | ' | ' |
Paid-in capital | 1,015,656 | 1,015,656 |
Treasury stock (at cost), 154,494 shares of voting common stock | -9,592 | -9,592 |
Accumulated deficit | -792,374 | -777,549 |
Accumulated other comprehensive loss | -20,153 | -20,916 |
Total shareholders' equity | 193,848 | 207,910 |
Total liabilities and equity | 322,677 | 327,740 |
Voting Common Stock [Member] | ' | ' |
Common Stock: | ' | ' |
Common stock, 0.01 par value | 216 | 216 |
Nonvoting Common Stock [Member] | ' | ' |
Common Stock: | ' | ' |
Common stock, 0.01 par value | $95 | $95 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, shares | 154,494 | 154,494 |
Voting Common Stock [Member] | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 21,568,706 | 21,568,706 |
Nonvoting Common Stock [Member] | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 9,505,673 | 9,505,673 |
Common stock, shares outstanding | 9,505,673 | 9,505,673 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Condensed Consolidated Statements of Operations and Comprehensive Income [Abstract] | ' | ' |
General and administrative expenses | ($1,340) | ($3,747) |
Operating income (loss) | -1,340 | -3,747 |
Interest and investment income | 291 | 289 |
Interest expense | -3 | -3 |
Other income (expense) | -925 | -30 |
Income (loss) from continuing operations before income taxes and equity in net income (loss) of affiliates | -1,977 | -3,491 |
Income tax (provision) benefit | -10,672 | -2,815 |
Income (loss) from continuing operations before equity in net income (loss) of affiliates | -12,649 | -6,306 |
Equity in net income (loss) of affiliates | -2,169 | -7,281 |
Income (loss) from continuing operations | -14,818 | -13,587 |
Income (loss) from discontinued operations, net of tax provision | -7 | 123 |
Net income (loss) | -14,825 | -13,464 |
Other comprehensive income (loss), net of tax | 763 | 1,372 |
Comprehensive income (loss) | ($14,062) | ($12,092) |
Basic | ' | ' |
Income (loss) from continuing operations | ($0.48) | ($0.44) |
Income (loss) from discontinued operations, net of tax | ' | ' |
Net income (loss) | ($0.48) | ($0.44) |
Diluted | ' | ' |
Income (loss) from continuing operations | ($0.48) | ($0.44) |
Income (loss) from discontinued operations, net of tax | ' | ' |
Net income (loss) | ($0.48) | ($0.44) |
Weighted average common shares outstanding: | ' | ' |
Basic | 30,920 | 30,768 |
Diluted | 30,920 | 30,768 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Equity (USD $) | Voting Common Stock [Member] | Nonvoting Common Stock [Member] | Paid-In Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Shareholders' Equity [Member] | Total |
In Thousands | Common Stock [Member] | Common Stock [Member] | ||||||
Balance at Dec. 31, 2012 | $214 | $95 | $1,027,266 | ($9,592) | ($794,128) | ($37,394) | $186,461 | ' |
Balance, shares at Dec. 31, 2012 | 21,417 | 9,506 | ' | 154 | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | 16,579 | ' | ' | ' |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | 16,478 | ' | ' |
Comprehensive income (loss) | ' | ' | ' | ' | ' | ' | 33,057 | ' |
Exercise of restricted stock units | 2 | ' | -2 | ' | ' | ' | ' | ' |
Exercise of restricted stock units, shares | 175 | ' | ' | ' | ' | ' | ' | ' |
Equitable adjustment to restricted stock units for dividends and distributions | 1 | ' | -1 | ' | ' | ' | ' | ' |
Equitable adjustment to restricted stock units for dividends and distributions, shares | 120 | ' | ' | ' | ' | ' | ' | ' |
Shares surrendered to fund withholding taxes | -1 | ' | -8,896 | ' | ' | ' | -8,897 | ' |
Shares surrendered to fund withholding taxes, shares | -143 | ' | ' | ' | ' | ' | ' | ' |
Adjustment to tax benefit associated with stock based compensation | ' | ' | -3,128 | ' | ' | ' | -3,128 | ' |
Stock based compensation | ' | ' | 417 | ' | ' | ' | 417 | ' |
Balance at Dec. 31, 2013 | 216 | 95 | 1,015,656 | -9,592 | -777,549 | -20,916 | 207,910 | ' |
Balance, shares at Dec. 31, 2013 | 21,569 | 9,506 | ' | 154 | ' | ' | ' | ' |
Total equity at Dec. 31, 2013 | ' | ' | ' | ' | ' | ' | ' | 207,910 |
Net income (loss) | ' | ' | ' | ' | -14,825 | ' | ' | -14,825 |
Other comprehensive income (loss) | ' | ' | ' | ' | ' | 763 | ' | 763 |
Comprehensive income (loss) | ' | ' | ' | ' | ' | ' | -14,062 | -14,062 |
Total equity at Mar. 31, 2014 | ' | ' | ' | ' | ' | ' | ' | 193,848 |
Balance at Mar. 31, 2014 | $216 | $95 | $1,015,656 | ($9,592) | ($792,374) | ($20,153) | $193,848 | ' |
Balance, shares at Mar. 31, 2014 | 21,569 | 9,506 | ' | 154 | ' | ' | ' | ' |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating activities: | ' | ' |
Net income (loss) | ($14,825) | ($13,464) |
(Income) loss from discontinued operations, net of tax provision | 7 | -123 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' |
Non-cash operating items | 11,686 | 11,026 |
Changes in operating assets and liabilities: | ' | ' |
Other current assets and other assets | -541 | -1,856 |
Accrued expenses and other current liabilities | 130 | -1,325 |
Income taxes receivable and payable | 896 | 306 |
Pension and other postretirement liabilities | -749 | -976 |
Long-term liabilities | 291 | -68 |
Net cash provided by (used in) operating activities - continuing operations | -3,105 | -6,480 |
Net cash provided by (used in) operating activities - discontinued operations | 3,472 | -36,921 |
Net cash provided by (used in) operating activities | 367 | -43,401 |
Investing activities: | ' | ' |
Capital expenditures | -2 | -3 |
Net cash provided by (used in) investing activities - continuing operations | -2 | -3 |
Receipt of principal, Land Note | 67,333 | ' |
Net cash provided by (used in) investing activities | 67,331 | -3 |
Increase (decrease) in cash and cash equivalents | 67,698 | -43,404 |
Cash and cash equivalents - beginning of period | 5,926 | 87,370 |
Cash and cash equivalents - end of period | $73,624 | $43,966 |
Organization_and_Principal_Bus
Organization and Principal Business | 3 Months Ended |
Mar. 31, 2014 | |
Organization and Principal Business [Abstract] | ' |
Organization and Principal Business | ' |
1. Organization and Principal Business | |
Loral Space & Communications Inc., together with its subsidiaries (“Loral,” the “Company,” “we,” “our” and “us”) is a leading satellite communications company engaged, through our ownership interests in affiliates, in satellite-based communications services. | |
Description of Business | |
Loral has one operating segment consisting of satellite-based communications services. Loral participates in satellite services operations through its ownership interest in Telesat Holdings Inc. (“Telesat Holdco”) which owns Telesat Canada (“Telesat”), a global satellite services operator. Telesat owns and leases a satellite fleet that operates in geosynchronous earth orbit approximately 22,000 miles above the equator. In this orbit, satellites remain in a fixed position relative to points on the earth’s surface and provide reliable, high-bandwidth services anywhere in their coverage areas, serving as the backbone for many forms of telecommunications. | |
Loral holds a 62.8% economic interest and a 32.7% voting interest in Telesat Holdco (see Note 5). We use the equity method of accounting for our ownership interest in Telesat Holdco. | |
Loral, a Delaware corporation, was formed on June 24, 2005, to succeed to the business conducted by its predecessor registrant, Loral Space & Communications Ltd. (“Old Loral”), which emerged from chapter 11 of the federal bankruptcy laws on November 21, 2005 (the “Effective Date”) pursuant to the terms of the fourth amended joint plan of reorganization, as modified. | |
Sale of SS/L | |
On November 2, 2012, Loral completed the sale (the “Sale”) of its wholly-owned subsidiary, Space Systems/Loral, LLC (formerly known as Space Systems/Loral, Inc. (“SS/L”)), to MDA Communications Holdings, Inc. (“MDA Holdings”), a subsidiary of MacDonald, Dettwiler and Associates Ltd. (“MDA”). Pursuant to the purchase agreement (the “Purchase Agreement”), dated as of June 26, 2012, as amended on October 30, 2012 and March 28, 2013, by and among Loral, SS/L, MDA and MDA Holdings, Loral received total cash payments of $967.9 million plus, for the sale of certain real estate used in connection with SS/L’s business, a three-year promissory note in the principal amount of $101 million (the “Land Note”). Transaction costs related to the Sale were $35.2 million. Subsequent to the closing of the Sale and pursuant to the Purchase Agreement, Loral, in December 2012, paid MDA $6.5 million as a result of the resolution of a contingency. | |
Under the terms of the Purchase Agreement, Loral has retained control and assumed the defense of the lawsuit (the “ViaSat Suit”) brought in 2012 by ViaSat, Inc. (“ViaSat”) against SS/L and is obligated to indemnify SS/L for damages in that lawsuit, after a final non-appealable judgment has been entered. In April 2014, the jury in the trial of the ViaSat Suit found that SS/L was liable for patent infringement and breach of contract and awarded ViaSat damages against SS/L of $283 million. Under the terms of the Purchase Agreement, following a change of control of Loral, the indemnification liability of Loral for damages in the ViaSat Suit is subject to a $200 million cap. In addition, Loral is obligated to indemnify SS/L from liabilities with respect to certain pre-closing taxes. | |
The Land Note, originally issued at closing, provided for interest at the rate of 1% per annum with amortization in three equal annual installments on each March 31, commencing March 31, 2013. The Land Note was amended as described below and is backed by a letter of guarantee from Royal Bank of Canada. | |
On March 28, 2013, Loral and MDA amended the Purchase Agreement to modify SS/L’s capped cost sharing obligations related to Loral’s indemnification of litigation costs and litigation damages in the ViaSat Suit and also amended the Land Note to defer to March 31, 2014 the due date of the principal payment from MDA to Loral of $33.7 million due originally on March 31, 2013 with an increase in the interest rate applicable to this tranche of the Land Note from 1.0% to 1.5% effective as of April 1, 2013. Loral received the principal payment of $67.3 million from MDA on March 31, 2014 under the amended Land Note. | |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Basis of Presentation [Abstract] | ' | |||||||||||||||||
Basis of Presentation | ' | |||||||||||||||||
2. Basis of Presentation | ||||||||||||||||||
The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules of the Securities and Exchange Commission (“SEC”) and, in our opinion, include all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of results of operations, financial position and cash flows as of the balance sheet dates presented and for the periods presented. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to SEC rules. We believe that the disclosures made are adequate to keep the information presented from being misleading. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results to be expected for the full year. | ||||||||||||||||||
The December 31, 2013 balance sheet has been derived from the audited consolidated financial statements at that date. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our latest Annual Report on Form 10-K filed with the SEC. | ||||||||||||||||||
Investments in Affiliates | ||||||||||||||||||
Ownership interests in Telesat and XTAR, LLC (“XTAR”) are accounted for using the equity method of accounting. Income and losses of affiliates are recorded based on our beneficial interest. Our equity in net income or loss also reflects amortization of profits eliminated, to the extent of our economic interest in Telesat and XTAR, on satellites we constructed for them while we owned SS/L and on Loral’s sale to Telesat in April 2011 of its portion of the payload on the ViaSat-1 satellite and related assets. Equity in losses of affiliates is not recognized after the carrying value of an investment, including advances and loans, has been reduced to zero, unless guarantees or other funding obligations exist. The Company monitors its equity method investments for factors indicating other-than-temporary impairment. An impairment loss would be recognized when there has been a loss in value of the affiliate that is other-than-temporary. | ||||||||||||||||||
Use of Estimates in Preparation of Financial Statements | ||||||||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amount of income (loss) reported for the period. Actual results could differ from estimates. | ||||||||||||||||||
Significant estimates also included the allowances for doubtful accounts, the realization of deferred tax assets, uncertain tax positions, the fair value of liabilities indemnified and our pension liabilities. | ||||||||||||||||||
Concentration of Credit Risk | ||||||||||||||||||
Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents and receivables. Our cash and cash equivalents are maintained with high-credit-quality financial institutions. The Land Note is guaranteed by Royal Bank of Canada. As a result, management believes that its potential credit risks are minimal. | ||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||
U.S. GAAP defines fair value as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants. U.S. GAAP also establishes a fair value hierarchy that gives the highest priority to observable inputs and the lowest priority to unobservable inputs. The three levels of the fair value hierarchy are described below: | ||||||||||||||||||
Level 1: Inputs represent a fair value that is derived from unadjusted quoted prices for identical assets or liabilities traded in active markets at the measurement date. | ||||||||||||||||||
Level 2: Inputs represent a fair value that is derived from quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities, and pricing inputs, other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. | ||||||||||||||||||
Level 3: Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. | ||||||||||||||||||
Assets and Liabilities Measured at Fair Value | ||||||||||||||||||
The following table presents our assets and liabilities measured at fair value at March 31, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||||
Cash equivalents: | ||||||||||||||||||
Money market funds | $ | 3,417 | $ | — | $ | — | $ | 3,216 | $ | — | $ | — | ||||||
Note receivable: | ||||||||||||||||||
Land Note | $ | — | $ | — | $ | 33,667 | $ | — | $ | — | $ | 101,000 | ||||||
Liabilities | ||||||||||||||||||
Indemnifications: | ||||||||||||||||||
Sale of SS/L | $ | — | $ | — | $ | 14,368 | $ | — | $ | — | $ | 10,897 | ||||||
Globalstar do Brasil S.A. | $ | — | $ | — | $ | 1,294 | $ | — | $ | — | $ | 1,320 | ||||||
The carrying amount of cash equivalents approximates fair value because of the short maturity of those instruments. The carrying amount of the Land Note approximates fair value because the stated interest rate is consistent with current market rates. The fair value of indemnifications related to the sale of SS/L was originally estimated using Monte Carlo simulation based on the potential probability weighted cash flows that would be a guarantor’s responsibility in an arm’s length transaction. The increase in the liability from December 31, 2013 to March 31, 2014 represents receipt of the final payment from SS/L for its share of litigation costs related to the ViaSat Suit, partially offset by litigation costs paid. The fair value of indemnifications related to Globalstar do Brasil S.A. (“GdB”) was estimated using expected value analysis. The Company does not have any non-financial assets or non-financial liabilities that are recognized or disclosed at fair value as of March 31, 2014. | ||||||||||||||||||
We review the carrying values of our equity method investments when events and circumstances warrant and consider all available evidence in evaluating when declines in fair value are other than temporary. The fair values of our investments are determined based on valuation techniques using the best information available and may include quoted market prices, market comparables and discounted cash flow projections. An impairment charge is recorded when the carrying amount of the investment exceeds its current fair value and is determined to be other than temporary. | ||||||||||||||||||
Discontinued Operations | ||||||||||||||||||
Adjustments to amounts previously reported in discontinued operations that are directly related to the Sale are classified as discontinued operations in the statements of operations for the three months ended March 31, 2014 and 2013. | ||||||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU No. 2014-08 changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, only those disposals that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results will be reported as discontinued operations in the consolidated financial statements. Also, disposal of an equity method investment that meets the definition of a discontinued operation is to be reported in discontinued operations under the new guidance. The guidance, effective for the Company on January 1, 2015, is not expected to have a material impact on our consolidated financial statements. | ||||||||||||||||||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This new standard requires the netting of unrecognized tax benefits (“UTBs”) against available deferred tax assets for losses and other carryforward benefits that would be available to offset the liability for uncertain tax positions rather than presenting the UTB on a gross basis. The guidance, effective for the Company on January 1, 2014, did not have a material effect on our condensed consolidated financial statements as the Company had already adopted this methodology. | ||||||||||||||||||
In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830) - Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. ASU No. 2013-05 clarifies that the cumulative translation adjustment should be released into net income only when a reporting entity ceases to have a controlling financial interest in a subsidiary or a business within a foreign entity. Further, for an equity method investment that is a foreign entity, a pro rata portion of the cumulative translation adjustment should be released into net income upon a partial sale of such an equity method investment. The guidance, effective for the Company on January 1, 2014, did not have a material impact on our condensed consolidated financial statements. | ||||||||||||||||||
In February 2013, the FASB issued ASU No. 2013-04, Liabilities (Topic 405) – Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date. ASU No. 2013-04 provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements. The guidance requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date, as the sum of: (a) the amount the reporting entity agreed to pay on the basis of its arrangement with its co-obligors, and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance, effective for the Company on January 1, 2014, did not have a material impact on our condensed consolidated financial statements. | ||||||||||||||||||
Additional Cash Flow Information | ||||||||||||||||||
The following represents non-cash activities and supplemental information to the condensed consolidated statements of cash flows (in thousands): | ||||||||||||||||||
Three Months | ||||||||||||||||||
Ended March 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Non-cash operating items: | ||||||||||||||||||
Equity in net loss of affiliates | $ | 2,169 | $ | 7,281 | ||||||||||||||
Deferred taxes | 9,404 | 1,977 | ||||||||||||||||
Depreciation and amortization | 10 | 4 | ||||||||||||||||
Stock-based compensation | — | 263 | ||||||||||||||||
Amortization of prior service credit and actuarial loss | 103 | 1,501 | ||||||||||||||||
Net non-cash operating items – continuing operations | $ | 11,686 | $ | 11,026 | ||||||||||||||
Supplemental information: | ||||||||||||||||||
Interest paid – continuing operations | $ | 3 | $ | 3 | ||||||||||||||
Tax payments, net of refunds – continuing operations | $ | 55 | $ | 86 | ||||||||||||||
Tax payments – discontinued operations | $ | — | $ | 35,118 | ||||||||||||||
0 | ||||||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | ' | ||||||||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||||||||
3. Accumulated Other Comprehensive Loss | |||||||||||||||||||
The components of accumulated other comprehensive loss, net of tax, are as follows (in thousands): | |||||||||||||||||||
Proportionate | |||||||||||||||||||
Share of | Accumulated | ||||||||||||||||||
Telesat Other | Other | ||||||||||||||||||
Postretirement | Comprehensive | Comprehensive | |||||||||||||||||
Benefits | Loss | Loss | |||||||||||||||||
Balance at January 1, 2013 | $ | -17,653 | $ | -19,741 | $ | -37,394 | |||||||||||||
Other comprehensive income before reclassification | 3,102 | 7,996 | 11,098 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 5,380 | — | 5,380 | ||||||||||||||||
Net current-period other comprehensive income | 8,482 | 7,996 | 16,478 | ||||||||||||||||
Balance at December 31, 2013 | -9,171 | -11,745 | -20,916 | ||||||||||||||||
Other comprehensive income before reclassification | — | 699 | 699 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 64 | — | 64 | ||||||||||||||||
Net current-period other comprehensive income | 64 | 699 | 763 | ||||||||||||||||
Balance at March 31, 2014 | $ | -9,107 | $ | -11,046 | $ | -20,153 | |||||||||||||
The components of other comprehensive income and related tax effects are as follows (in thousands): | |||||||||||||||||||
Three Months | |||||||||||||||||||
Ended March 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Before-Tax | Tax | Net-of-Tax | Before-Tax | Tax | Net-of-Tax | ||||||||||||||
Amount | Provision | Amount | Amount | Provision | Amount | ||||||||||||||
Amortization of prior service credits and | $ | 103 | (a) | $ | -39 | $ | 64 | $ | 1,501 | (a) | $ | -573 | $ | 928 | |||||
net actuarial loss | |||||||||||||||||||
Proportionate share of Telesat Holdco | 1,126 | -427 | 699 | 718 | -274 | 444 | |||||||||||||
other comprehensive gain (loss) | |||||||||||||||||||
Other comprehensive income (loss) | $ | 1,229 | $ | -466 | $ | 763 | $ | 2,219 | $ | -847 | $ | 1,372 | |||||||
(a) Reclassifications are included in general and administrative expenses. | |||||||||||||||||||
Receivables
Receivables | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Receivables [Abstract] | ' | |||||
Receivables | ' | |||||
4. Receivables | ||||||
The receivables balance related to the Land Note (see Note 1) as of March 31, 2014 and December 31, 2013 is presented below (in thousands): | ||||||
March 31, | December 31, | |||||
2014 | 2013 | |||||
Land Note receivable | $ | 33,667 | $ | 101,000 | ||
Less: current portion | -33,667 | -67,333 | ||||
Long-term receivable | $ | — | $ | 33,667 | ||
The principal amount under the Land Note of $33.7 million as of March 31, 2014 is scheduled to be received on March 31, 2015. Interest on this principal amount is one percent per annum and is payable quarterly. | ||||||
Investments_in_Affiliates
Investments in Affiliates | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Investments in Affiliates [Abstract] | ' | |||||
Investments in Affiliates | ' | |||||
5. Investments in Affiliates | ||||||
Investments in affiliates consist of (in thousands): | ||||||
March 31, | December 31, | |||||
2014 | 2013 | |||||
Telesat Holdings Inc. | $ | 55,636 | $ | 60,157 | ||
XTAR, LLC | 55,178 | 56,663 | ||||
$ | 110,814 | $ | 116,820 | |||
Equity in net loss of affiliates consists of (in thousands): | ||||||
Three Months | ||||||
Ended March 31, | ||||||
2014 | 2013 | |||||
Telesat Holdings Inc. | $ | -684 | $ | -718 | ||
XTAR, LLC | -1,485 | -1,763 | ||||
Other | — | -4,800 | ||||
$ | -2,169 | $ | -7,281 | |||
Telesat | ||||||
As of December 31, 2013 and March 31, 2014, we held a 62.8% economic interest and a 32.7% voting interest in Telesat. We use the equity method of accounting for our majority economic interest in Telesat because we own 32.7% of the voting stock and do not exercise control by other means to satisfy the U.S. GAAP requirement for treatment as a consolidated subsidiary. We have also concluded that Telesat is not a variable interest entity for which we are the primary beneficiary. Loral’s equity in net income or loss of Telesat is based on our proportionate share of Telesat’s results in accordance with U.S. GAAP and in U.S. dollars. Our proportionate share of Telesat’s net income or loss is based on our economic interest as our holdings consist of common stock and non-voting participating preferred shares that have all the rights of common stock with respect to dividends, return of capital and surplus distributions, but have no voting rights. | ||||||
The ability of Telesat to pay dividends or certain other restricted payments as well as consulting fees in cash to Loral is governed by applicable covenants in Telesat’s debt and shareholder agreements. Under Telesat’s credit agreement and the indenture for Telesat’s 6% senior notes, dividends or certain other restricted payments may be paid only if there is a sufficient capacity under a restricted payment basket, which is based on a formula of cumulative consolidated EBITDA less 1.4 times cumulative consolidated interest expense. Under the 6% senior note indenture and credit agreement, Telesat is generally permitted to pay consulting fees to Loral in cash. Our general and administrative expenses are net of income related to the Consulting Agreement of $1.25 million for each of the three months ended March 31, 2014 and 2013. For the three months ended March 31, 2014 and 2013, Loral received payments in cash from Telesat of $1.2 million, net of withholding tax, and nil, respectively, and payments in promissory notes of nil and $1.27 million, respectively, for consulting fees and interest. The payments received by Loral from Telesat for the three months ended March 31, 2013 were not allowed to be paid in cash because Telesat did not meet the leverage ratio required for cash payment under the indenture for its 12.5% senior subordinated notes due November 1, 2017. These notes were redeemed in May 2013 (see Note 15). | ||||||
The contribution of Loral Skynet, a wholly owned subsidiary of Loral prior to its contribution to Telesat in 2007, was recorded by Loral at the historical book value of our retained interest combined with the gain recognized on the contribution. However, the contribution was recorded by Telesat at fair value. Accordingly, the amortization of Telesat fair value adjustments applicable to the Loral Skynet assets and liabilities is proportionately eliminated in determining our share of the net income or losses of Telesat. Our equity in net income or loss of Telesat also reflects amortization of profits eliminated, to the extent of our economic interest in Telesat, on satellites we constructed for Telesat while we owned SS/L and on Loral’s sale to Telesat in April 2011 of its portion of the payload on the ViaSat-1 satellite and related assets. | ||||||
In connection with the acquisition of our ownership interest in Telesat in 2007, Loral retained the benefit of tax recoveries related to transferred assets and indemnified Telesat (“Telesat Indemnification”) for certain liabilities including Loral Skynet’s tax liabilities arising prior to January 1, 2007. During the three months ended March 31, 2014, Loral and Telesat settled several of the Telesat Indemnification tax disputes (see Note 15) resulting in a net tax recovery of $5.4 million which is included in other current assets on our balance sheet as of March 31, 2014. Our investment in Telesat was reduced by $5.0 million as a result of this recovery. | ||||||
The following table presents summary financial data for Telesat in accordance with U.S. GAAP, as of March 31, 2014 and December 31, 2013 and for the three months ended March 31, 2014 and 2013 (in thousands): | ||||||
Three Months | ||||||
Ended March 31, | ||||||
2014 | 2013 | |||||
Statement of Operations Data: | ||||||
Revenues | $ | 220,599 | $ | 217,468 | ||
Operating expenses | -40,330 | -50,158 | ||||
Depreciation, amortization and stock-based compensation | -58,481 | -57,818 | ||||
(Loss) gain on disposition of long lived asset | -59 | 468 | ||||
Operating income | 121,729 | 109,960 | ||||
Interest expense | -47,515 | -59,695 | ||||
Expense of refinancing | — | -19,964 | ||||
Foreign exchange losses | -101,749 | -70,340 | ||||
Gains on financial instruments | 47,350 | 36,853 | ||||
Other income | 739 | 383 | ||||
Income tax provision | -21,149 | -7,842 | ||||
Net loss | $ | -595 | $ | -10,645 | ||
March 31, | December 31, | |||||
2014 | 2013 | |||||
Balance Sheet Data: | ||||||
Current assets | $ | 416,245 | $ | 366,814 | ||
Total assets | 4,756,122 | 4,929,838 | ||||
Current liabilities | 288,867 | 360,744 | ||||
Long-term debt, including current portion | 3,176,815 | 3,215,831 | ||||
Total liabilities | 4,129,276 | 4,280,902 | ||||
Shareholders’ equity | 626,846 | 648,936 | ||||
Telesat had capital expenditures of $11.4 million and $30.7 million for the three months ended March 31, 2014 and 2013, respectively. | ||||||
XTAR | ||||||
We own 56% of XTAR, a joint venture between us and Hisdesat Servicios Estrategicos, S.A. (“Hisdesat”) of Spain. We account for our ownership interest in XTAR under the equity method of accounting because we do not control certain of its significant operating decisions. | ||||||
XTAR owns and operates an X-band satellite, XTAR-EUR, located at 29° E.L., which is designed to provide X-band communications services exclusively to United States, Spanish and allied government users throughout the satellite’s coverage area, including Europe, the Middle East and Asia. XTAR also leases 7.2 72MHz X-band transponders on the Spainsat satellite located at 30° W.L., owned by Hisdesat. These transponders, designated as XTAR-LANT, provide capacity to XTAR for additional X-band services and greater coverage and flexibility. | ||||||
We regularly evaluate our investment in XTAR to determine whether there has been a decline in fair value that is other-than-temporary. We performed an impairment test for our investment in XTAR as of March 31, 2014, using XTAR’s most recent forecast, and concluded that our investment in XTAR was not impaired. | ||||||
XTAR’s lease obligation to Hisdesat for the XTAR-LANT transponders requires payments by XTAR of $25 million in 2014, with increases thereafter to a maximum of $28 million per year through the end of the useful life of the satellite which is estimated to be in 2022. Under this lease agreement, Hisdesat may also be entitled under certain circumstances to a share of the revenues generated on the XTAR-LANT transponders. In March 2009, XTAR entered into an agreement with Hisdesat pursuant to which the past due balance on XTAR-LANT transponders of $32.3 million as of December 31, 2008, together with a deferral of $6.7 million in payments due in 2009, will be payable to Hisdesat over 12 years through annual payments of $5 million (the “Catch Up Payments”). XTAR has a right to prepay, at any time, all unpaid Catch Up Payments discounted at 9%. Cumulative amounts paid to Hisdesat for Catch-Up Payments through March 31, 2014 were $25.4 million. XTAR has also agreed that XTAR’s excess cash balance (as defined) will be applied towards making limited payments on future lease obligations, as well as payments of other amounts owed to Hisdesat, Telesat and Loral for services provided by them to XTAR (see Note 15). The ability of XTAR to pay dividends and management fees in cash to Loral is governed by XTAR’s operating agreement. | ||||||
The following table presents summary financial data for XTAR as of March 31, 2014 and December 31, 2013 and for the three months ended March 31, 2014 and 2013 (in thousands): | ||||||
Three Months | ||||||
Ended March 31, | ||||||
2014 | 2013 | |||||
Statement of Operations Data: | ||||||
Revenues | $ | 8,046 | $ | 8,125 | ||
Operating expenses | -7,807 | -8,369 | ||||
Depreciation and amortization | -2,315 | -2,310 | ||||
Operating loss | -2,076 | -2,554 | ||||
Net loss | -2,762 | -3,259 | ||||
March 31, | December 31, | |||||
2014 | 2013 | |||||
Balance Sheet Data: | ||||||
Current assets | $ | 5,929 | $ | 6,970 | ||
Total assets | 61,388 | 64,745 | ||||
Current liabilities | 22,737 | 22,443 | ||||
Total liabilities | 56,277 | 56,872 | ||||
Members’ equity | 5,111 | 7,873 | ||||
Other | ||||||
In connection with the sale in 2008 by Loral and certain of its subsidiaries and DASA Globalstar LLC to Globalstar Inc. of their respective interests in GdB, the Globalstar Brazilian service provider, Loral agreed to indemnify Globalstar Inc. and GdB for certain GdB pre-closing liabilities, primarily related to Brazilian taxes. As a result of an April 2013 adverse court decision in Brazil relating to a potential tax liability, an adverse outcome for which was previously believed to be remote, Loral recorded a loss contingency of $4.8 million in the first quarter of 2013. A payment of $3.7 million related to this loss contingency was made in the second quarter of 2013, and, in the third quarter of 2013, this loss was adjusted to $3.7 million, primarily due to a favorable court decision. | ||||||
As of March 31, 2014 and December 31, 2013, the Company held various indirect ownership interests in two foreign companies that currently serve as exclusive service providers for Globalstar service in Mexico and Russia. The Company accounts for these ownership interests using the equity method of accounting. Loral has written-off its investments in these companies, and, because we have no future funding requirements relating to these investments, there is no requirement for us to provide for our allocated share of these companies’ net losses. | ||||||
Other_Current_Liabilities
Other Current Liabilities | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Other Current Liabilities [Abstract] | ' | |||||
Other Current Liabilities | ' | |||||
6. Other Current Liabilities | ||||||
Other current liabilities consists of (in thousands): | ||||||
March 31, | December 31, | |||||
2014 | 2013 | |||||
Pension and other postretirement liabilities | $ | 129 | $ | 128 | ||
Indemnification liabilities (see Note 2) | 4,162 | 6,138 | ||||
Income taxes payable | 647 | — | ||||
Deferred tax liability | 8,874 | — | ||||
Other | 2,297 | 2,484 | ||||
$ | 16,109 | $ | 8,750 | |||
Income_Taxes
Income Taxes | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Income Taxes [Abstract] | ' | |||||
Income Taxes | ' | |||||
7. Income Taxes | ||||||
The following summarizes our income tax provision on the loss from continuing operations (in thousands): | ||||||
Three Months Ended | ||||||
March 31, | ||||||
2014 | 2013 | |||||
Total current income tax provision | $ | -1,268 | $ | -838 | ||
Total deferred income tax provision | -9,404 | -1,977 | ||||
Income tax provision | $ | -10,672 | $ | -2,815 | ||
At March 31, 2014, income taxes receivable on our condensed consolidated balance sheet includes an anticipated benefit of $12.6 million from the carryback of our tax loss from 2013 against taxes previously paid for 2012. We expect to receive this benefit in 2014. | ||||||
Subsequent to the Sale, to the extent that profitability from operations is not sufficient to realize the benefit from our remaining net deferred tax assets, we would generate sufficient taxable income from the appreciated value of our Telesat investment, which currently has a nominal tax basis, in order to prevent federal net operating losses from expiring and realize the benefit of all remaining deferred tax assets. | ||||||
The following summarizes amounts for uncertain tax positions (“UTPs”) included in our income tax provision (in thousands): | ||||||
Three Months Ended | ||||||
March 31, | ||||||
2014 | 2013 | |||||
Current provision for UTPs | $ | -319 | $ | -447 | ||
Deferred benefit for UTPs | 101 | 139 | ||||
Tax provision for UTPs | $ | -218 | $ | -308 | ||
As of March 31, 2014, we had unrecognized tax benefits relating to UTPs of $80 million. Pursuant to the Purchase Agreement for the Sale, we are obligated to indemnify SS/L for taxes related to periods prior to the closing of the transaction. The Company recognizes potential accrued interest and penalties related to UTPs in income tax expense on a quarterly basis. As of March 31, 2014, we have accrued approximately $4.6 million and $9.0 million for the payment of potential tax-related interest and penalties, respectively. | ||||||
With few exceptions, the Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities for years prior to 2007. Earlier years related to certain foreign jurisdictions remain subject to examination. Various federal, state and foreign income tax returns are currently under examination. However, to the extent allowed by law, the tax authorities may have the right to examine prior periods where net operating losses were generated and carried forward, and make adjustments up to the amount of the net operating loss carryforward. While we intend to contest any future tax assessments for uncertain tax positions, no assurance can be provided that we would ultimately prevail. During the next twelve months, the statute of limitations for assessment of additional tax will expire with regard to certain UTPs related to our federal income tax return filed for 2010 and state income tax returns filed for 2007 and 2009 potentially resulting in a $2.7 million reduction to our unrecognized tax benefits. | ||||||
The following summarizes the changes to our liabilities for UTPs included in long-term liabilities in the condensed consolidated balance sheets (in thousands): | ||||||
Three Months Ended | ||||||
March 31, | ||||||
2014 | 2013 | |||||
Liabilities for UTPs: | ||||||
Opening balance — January 1 | $ | 79,688 | $ | 80,732 | ||
Current (benefit) provision for: | ||||||
Unrecognized tax benefits | -38 | 581 | ||||
Potential additional interest | 611 | 405 | ||||
Potential penalty adjustment | -36 | 27 | ||||
Statute expirations | -219 | -566 | ||||
Ending balance | $ | 80,006 | $ | 81,179 | ||
As of March 31, 2014, if our positions are sustained by the taxing authorities, the Company’s income tax provision from continuing operations would be reduced by approximately $37.1 million. Other than as described above, there were no significant changes to our uncertain tax positions during the three months ended March 31, 2014 and 2013, and we do not anticipate any other significant changes to our unrecognized tax benefits during the next twelve months. | ||||||
Long_Term_Liabilities
Long Term Liabilities | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Long Term Liabilities [Abstract] | ' | |||||
Long Term Liabilities | ' | |||||
8. Long Term Liabilities | ||||||
Long term liabilities consists of (in thousands): | ||||||
March 31, | December 31, | |||||
2014 | 2013 | |||||
Indemnification liabilities (see Note 2) | $ | 11,500 | $ | 6,079 | ||
Deferred tax liability | 3,365 | 4,907 | ||||
Liabilities for uncertain tax positions | 80,006 | 79,688 | ||||
Other | 305 | 2,443 | ||||
$ | 95,176 | $ | 93,117 | |||
Shareholders_Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2014 | |
Shareholders' Equity [Abstract] | ' |
Shareholders' Equity | ' |
9. Shareholders’ Equity | |
Treasury Stock | |
In November 2011, our Board of Directors authorized the purchase of up to 800,000 shares of our voting common stock. These purchases may be made from time to time in the open market or private transactions, as conditions may warrant. We intend to hold repurchased shares of our voting common stock in treasury. We account for the treasury shares using the cost method. During 2011 and 2012, Loral repurchased 154,494 shares of its voting common stock at an average price of $62.04 per share for an aggregate amount of $9.6 million under the November 2011 share purchase program. | |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2014 | |
Stock-Based Compensation [Abstract] | ' |
Stock-Based Compensation | ' |
10. Stock-Based Compensation | |
Stock Plans | |
The Loral amended and restated 2005 stock incentive plan (the “Stock Incentive Plan”) allows for the grant of several forms of stock-based compensation awards including stock options, stock appreciation rights, restricted stock, restricted stock units, stock bonuses and other stock-based awards (collectively, the “Awards”). The total number of shares of voting common stock reserved and available for issuance under the Stock Incentive Plan is 1,403,746 shares of which 1,319,533 were available for future grant at March 31, 2014. This number of shares of voting common stock available for issuance would be reduced if restricted stock units are settled in voting common stock. In addition, shares of common stock that are issuable under awards that expire, are forfeited or canceled, or withheld in payment of the exercise price or taxes relating to an Award, will again be available for Awards under the Stock Incentive Plan. | |
In June 2009, the Company introduced a performance based long-term incentive compensation program consisting of SS/L phantom stock appreciation rights (“SS/L Phantom SARs”). Because SS/L common stock was not freely tradable on the open market and thus did not have a readily ascertainable market value, SS/L equity value under the program was derived from an income-based calculation. Each SS/L Phantom SAR provided the recipient with the right to receive an amount equal to the increase in SS/L’s notional stock price over the base price multiplied by the number of SS/L Phantom SARs vested on the applicable vesting date, subject to adjustment. The SS/L notional stock price was frozen as of December 31, 2011 in connection with the Sale. SS/L Phantom SARs were paid out in cash on each vesting date. | |
As of March 31, 2014, there were no SS/L Phantom SARs remaining. During each of the three month periods ended March 31, 2014 and 2013, cash payments of $0.5 million were made related to SS/L Phantom SARs. | |
Total stock-based compensation included in loss from continuing operations was nil and $0.3 million for the three months ended March 31, 2014 and 2013, respectively. | |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Earnings Per Share [Abstract] | ' | |||||
Earnings Per Share | ' | |||||
11. Earnings Per Share | ||||||
Telesat has awarded employee stock options, which, if exercised, would result in dilution of Loral’s ownership interest in Telesat to approximately 62.0%. Telesat stock options are excluded from the calculation of diluted loss per share for the three months ended March 31, 2014 and 2013, as the effect would be antidilutive. | ||||||
For the three months ended March 31, 2014 and 2013, the following unvested restricted stock units are excluded from the calculation of diluted loss per share as the effect would have been antidilutive (in thousands): | ||||||
Three Months | ||||||
Ended March 31, | ||||||
2014 | 2013 | |||||
Unvested restricted stock units | 84 | 254 | ||||
Pensions_and_Other_Employee_Be
Pensions and Other Employee Benefit Plans | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Pensions and Other Employee Benefit Plans [Abstract] | ' | |||||||||||
Pensions and Other Employee Benefit Plans | ' | |||||||||||
12. Pensions and Other Employee Benefit Plans | ||||||||||||
The following table provides the components of net periodic cost included in loss from continuing operations for our qualified and supplemental retirement plans (the “Pension Benefits”) and health care and life insurance benefits for retired employees and dependents (the “Other Benefits”) for the three months ended March 31, 2014 and 2013 (in thousands): | ||||||||||||
Pension Benefits | Other Benefits | |||||||||||
Three Months | Three Months | |||||||||||
Ended March 31, | Ended March 31, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Service cost | $ | 41 | $ | 147 | $ | 1 | $ | 2 | ||||
Interest cost | 469 | 463 | 17 | 10 | ||||||||
Expected return on plan assets | -474 | -427 | — | — | ||||||||
Amortization of net actuarial loss | 93 | 1,503 | 8 | 4 | ||||||||
Amortization of prior service credits | — | — | 2 | -6 | ||||||||
Net periodic cost | $ | 129 | $ | 1,686 | $ | 28 | $ | 10 | ||||
Amortization of net actuarial loss related to Pension Benefits for the three months ended March 31, 2013 includes accelerated amortization as a result of the termination of our supplemental executive retirement plan. Final lump sum payments under this plan were made in December 2013. | ||||||||||||
Financial_Instruments_Derivati
Financial Instruments, Derivative Instruments and Hedging | 3 Months Ended |
Mar. 31, 2014 | |
Financial Instruments, Derivative Instruments and Hedging [Abstract] | ' |
Financial Instruments, Derivative Instruments and Hedging | ' |
13.Financial Instruments, Derivative Instruments and Hedging | |
Financial Instruments | |
The carrying amount of cash equivalents approximates fair value because of the short maturity of those instruments. The carrying amount of the Land Note approximates fair value because the stated interest rate is consistent with current market rates. | |
Foreign Currency | |
We are subject to the risks associated with fluctuations in foreign currency exchange rates. To limit this foreign exchange rate exposure, we attempt to denominate all contracts in U.S. dollars. Where appropriate, derivatives are used to minimize the risk of foreign exchange rate fluctuations to operating results and cash flows. We do not use derivative instruments for trading or speculative purposes. | |
Derivatives and Hedging Transactions | |
There were no derivative instruments as of March 31, 2014 and December 31, 2013. | |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies [Abstract] | ' |
Commitments and Contingencies | ' |
14. Commitments and Contingencies | |
Financial Matters | |
In the fourth quarter of 2012, we sold our former subsidiary, SS/L, to MDA pursuant to the Purchase Agreement. Under the terms of the Purchase Agreement, we are obligated to indemnify MDA from (1) liabilities with respect to certain pre-closing taxes; and (2) certain litigation costs and litigation damages relating to the ViaSat Suit, subject to a $200 million cap in the event of a change of control of Loral. Other than with respect to the ViaSat Suit (see Legal Proceedings, below), MDA has submitted one unresolved claim for indemnification which relates to pre-closing taxes. The amount of this claim has not yet been determined. We intend vigorously to contest the underlying tax assessment, but there can be no assurance that we will be successful. Although no assurance can be provided, we do not believe that this tax-related matter will have a material adverse effect on our financial position or results of operations. See Note 2 for the amount of liabilities recorded related to indemnifications. | |
In connection with the sale in 2008 by Loral and certain of its subsidiaries and DASA Globalstar LLC to Globalstar Inc. of their respective interests in GdB, the Globalstar Brazilian service provider, Loral agreed to indemnify Globalstar Inc. and GdB for certain GdB pre-closing liabilities, primarily related to Brazilian taxes. As a result of an April 2013 adverse court decision in Brazil relating to a potential tax liability, an adverse outcome for which was previously believed to be remote, Loral recorded a loss contingency of $4.8 million in the first quarter of 2013. A payment of $3.7 million related to this loss contingency was made in the second quarter of 2013, and, in the third quarter of 2013, this loss was adjusted to $3.7 million, primarily due to a favorable court decision. Our condensed consolidated balance sheets include liabilities of $1.3 million as of March 31, 2014 and December 31, 2013, representing the estimated fair value of all potential indemnification liabilities relating to the sale of GdB. | |
We are, with the agreement of our Canadian co-owner, Public Sector Pension Investment Board (“PSP”), engaged in a process to explore potential strategic transactions involving the possible monetization of Loral’s interest in Telesat which, as currently contemplated, would be accomplished through a disposition of Loral itself. In connection with that process, we have agreed to reimburse Telesat and PSP for certain presently unquantified transaction-related expenses under certain circumstances. | |
See Note 15— Related Party Transactions — Transactions with Affiliates — Telesat for commitments and contingencies relating to our agreement to indemnify Telesat for certain liabilities and our arrangements with ViaSat and Telesat. | |
Legal Proceedings | |
ViaSat | |
In 2012, ViaSat sued SS/L and Loral in the United States District Court for the Southern District of California alleging various patent infringement and breach of contract claims. On April 24, 2014, the jury in the trial of the ViaSat Suit returned a verdict against SS/L. The jury found that SS/L directly infringed the patents asserted by ViaSat in the case in connection with the manufacture of a satellite by SS/L for a customer other than ViaSat and also that SS/L breached certain agreements with ViaSat. Damages of $283 million were awarded against SS/L. The jury also found that Loral was not liable for either patent infringement or breach of contract. SS/L elected not to pursue its patent infringement counterclaim against ViaSat at the trial. | |
Under the terms of the Purchase Agreement, Loral has retained control and assumed the defense of the ViaSat Suit (the “Assumption of the Defense”) and is obligated to indemnify SS/L for damages in the ViaSat Suit, after a final non-appealable judgment has been entered. Under the terms of the Purchase Agreement, following a change of control of Loral, the indemnification liability of Loral for damages in the ViaSat Suit is subject to a $200 million cap. | |
Loral, by virtue of the Assumption of the Defense, intends to file post-trial motions in the trial court on behalf of SS/L seeking judgment as a matter of law, or in the alternative, a new trial. A hearing on post-trial motions is currently scheduled for July 22, 2014. In the event that the post-trial motions are denied and judgment is ultimately entered by the trial court, Loral, by virtue of the Assumption of the Defense, intends to appeal the judgment on behalf of SS/L. As a result of the uncertain outcome of post-trial motions and appeal, if necessary, we have not determined that a loss is probable and thus have not recorded a liability as of March 31, 2014 related to the jury verdict in the ViaSat Suit. There can be no assurance that any post-trial motions or appeals will be successful with respect to reversing the verdict, reducing all or a portion of the damages awarded against SS/L or obtaining a new trial. | |
We expect that the damage award against SS/L in the ViaSat Suit will not have a significant effect on Loral’s liquidity during the next 12 months. Loral is obligated to indemnify SS/L for damages in the ViaSat Suit only after a final non-appealable judgment has been entered. If all or a portion of the damage award against SS/L is ultimately upheld on appeal, we currently intend to fund our indemnification obligation through one or a combination of the following: cash on hand, proceeds from a strategic transaction (if any), a rights offering or other equity financing and debt financing. | |
In September 2013, ViaSat filed an additional complaint against SS/L in the United States District Court for the Southern District of California alleging, among other things, that SS/L directly infringed, and induced and encouraged infringement of, certain newly issued ViaSat patents not asserted in the 2012 ViaSat Suit in connection with the manufacture of satellites by SS/L for customers other than ViaSat. ViaSat’s additional complaint seeks, among other things, damages (including treble damages) in amounts to be determined at trial and to enjoin SS/L from further infringement of the ViaSat patents. The complaint did not name Loral as a defendant. MDA has asserted that Loral is obligated to defend and indemnify SS/L with respect to the additional litigation under the Purchase Agreement on the same terms and conditions as Loral’s defense and indemnification of SS/L in the 2012 ViaSat Suit. Loral has rejected MDA’s assertion that it is obligated to defend and indemnify SS/L on the basis that the additional lawsuit does not fall within its defense and indemnification obligations under the Purchase Agreement. SS/L is defending the additional lawsuit. The parties have agreed, however, to defer determination of whether Loral is obligated to defend and indemnify SS/L for the additional lawsuit until the earlier of 30 days following judgment or settlement of either of the ViaSat actions and October 25, 2016. There can be no assurance that a dispute will not arise as to whether Loral is obligated to defend and indemnify SS/L for the additional ViaSat lawsuit or if such a dispute were to arise that Loral would prevail. If a dispute arose and MDA prevailed, Loral’s indemnification liability for damages in the additional lawsuit would arise only after entry of a final non-appealable judgment and, following a change of control of Loral, would be subject to the $200 million cap referred to above, such that Loral’s total indemnification liability following a change of control for both the 2012 ViaSat Suit and the additional lawsuit could not exceed $200 million. | |
Other Litigation | |
Other than the litigation with ViaSat discussed above, we are not currently subject to any other legal proceedings that, if decided adversely, could have a material adverse effect on our financial position or results of operations. In the future, however, we may become subject to other legal proceedings and claims, either asserted or unasserted, that may arise in the ordinary course of business. | |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
15. Related Party Transactions | |
MHR Fund Management LLC | |
Mark H. Rachesky, managing principal of MHR Fund Management LLC (“MHR”), and Hal Goldstein, a former managing principal of MHR, are members of Loral’s board of directors. | |
Various funds affiliated with MHR and Dr. Rachesky held, as of March 31, 2014 and December 31, 2013, approximately 38.0% of the outstanding voting common stock and as of March 31, 2014 and December 31, 2013 had a combined ownership of outstanding voting and non-voting common stock of Loral of 57.1%. | |
Transactions with Affiliates | |
Telesat | |
As described in Note 5, we own 62.8% of Telesat and account for our ownership interest under the equity method of accounting. | |
In connection with the acquisition of our ownership interest in Telesat (which we refer to as the Telesat transaction), Loral and certain of its subsidiaries, our Canadian co-owner, PSP and one of its subsidiaries, Telesat Holdco and certain of its subsidiaries, including Telesat, and MHR entered into a Shareholders Agreement (the “Shareholders Agreement”). The Shareholders Agreement provides for, among other things, the manner in which the affairs of Telesat Holdco and its subsidiaries will be conducted and the relationships among the parties thereto and future shareholders of Telesat Holdco. The Shareholders Agreement also contains an agreement by Loral not to engage in a competing satellite communications business and agreements by the parties to the Shareholders Agreement not to solicit employees of Telesat Holdco or any of its subsidiaries. Additionally, the Shareholders Agreement details the matters requiring the approval of the shareholders of Telesat Holdco (including veto rights for Loral over certain extraordinary actions) and provides for preemptive rights for certain shareholders upon the issuance of certain capital shares of Telesat Holdco. The Shareholders Agreement also (i) restricts the ability of holders of certain shares of Telesat Holdco to transfer such shares unless certain conditions are met or approval of the transfer is granted by the directors of Telesat Holdco, (ii) provides for a right of first offer to certain Telesat Holdco shareholders if a holder of equity shares of Telesat Holdco wishes to sell any such shares to a third party and (iii) provides for, in certain circumstances, tag-along rights in favor of shareholders that are not affiliated with Loral if Loral sells equity shares and drag-along rights in favor of Loral in case Loral or its affiliate enters into an agreement to sell all of its Telesat Holdco equity securities. In addition, the Shareholders Agreement provides for either PSP or Loral to initiate the process of conducting an initial public offering of the equity shares of Telesat Holdco. There can be no assurance as to whether, when or on what terms an initial public offering of Telesat Holdco equity may occur. | |
Under the Shareholders Agreement, in the event that, except in certain limited circumstances, either (i) ownership or control, directly or indirectly, by Dr. Rachesky of Loral’s voting stock falls below certain levels other than in connection with certain specified circumstances, including an acquisition by a Strategic Competitor (as defined in the Shareholders Agreement) or (ii) there is a change in the composition of a majority of the members of the Loral Board of Directors over a consecutive two-year period without the approval of the incumbent directors, Loral will lose its veto rights relating to certain extraordinary actions by Telesat Holdco and its subsidiaries. In addition, after either of these events, PSP will have certain rights to enable it to exit from its investment in Telesat Holdco, including a right to cause Telesat Holdco to conduct an initial public offering in which PSP’s shares would be the first shares offered or, if no such offering has occurred within one year due to a lack of cooperation from Loral or Telesat Holdco, to cause the sale of Telesat Holdco and to drag along the other shareholders in such sale, subject to Loral’s right to call PSP’s shares at fair market value. | |
The Shareholders Agreement provides for a board of directors of each of Telesat Holdco and certain of its subsidiaries, including Telesat, consisting of 10 directors, three nominated by Loral, three nominated by PSP and four independent directors to be selected by a nominating committee comprised of one PSP nominee, one nominee of Loral and one of the independent directors then in office. Each party to the Shareholders Agreement is obligated to vote all of its Telesat Holdco shares for the election of the directors nominated by the nominating committee. Pursuant to action by the board of directors taken on October 31, 2007, Dr. Rachesky, who is non-executive Chairman of the Board of Directors of Loral, was appointed non-executive Chairman of the Board of Directors of Telesat Holdco and certain of its subsidiaries, including Telesat. In addition, Michael B. Targoff, Loral’s Vice Chairman, serves on the board of directors of Telesat Holdco and certain of its subsidiaries, including Telesat. | |
On October 31, 2007, Loral and Telesat entered into a consulting services agreement (the “Consulting Agreement”). Pursuant to the terms of the Consulting Agreement, Loral provides to Telesat certain non-exclusive consulting services in relation to the business of Loral Skynet which was transferred to Telesat as part of the Telesat transaction as well as with respect to certain aspects of the satellite communications business of Telesat. The Consulting Agreement has a term of seven years with an automatic renewal for an additional seven year term if Loral is not then in material default under the Shareholders Agreement. Upon expiration of the initial term in October 2014, we expect the Consulting Agreement to be automatically renewed for the additional seven year term. In exchange for Loral’s services under the Consulting Agreement, Telesat pays Loral an annual fee of $5.0 million, payable quarterly in arrears on the last day of March, June, September and December of each year during the term of the Consulting Agreement. If the terms of Telesat’s bank or bridge facilities or certain other debt obligations prevent Telesat from paying such fees in cash, Telesat may issue junior subordinated promissory notes to Loral in the amount of such payment, with interest on such promissory notes payable at the rate of 7% per annum, compounded quarterly, from the date of issue of such promissory note to the date of payment thereof. Our general and administrative expenses, for each of the three months ended March 31, 2014 and 2013, are net of income of $1.25 million related to the Consulting Agreement. For the three months ended March 31, 2014 and 2013, Loral received payments in cash from Telesat of $1.2 million, net of withholding tax, and nil, respectively, for consulting fees and interest and payments in promissory notes of nil and $1.27 million, respectively, for consulting fees and interest. We had no notes receivable from Telesat as of March 31, 2014 and December 31, 2013 related to the Consulting Agreement. | |
The Telesat Indemnification includes certain tax disputes currently under review in various jurisdictions including Brazil. The Brazilian tax authorities challenged Loral Skynet’s historical characterization of its revenue generated in Brazil for the years 2003 to 2006. Telesat received and challenged, on Loral Skynet’s behalf, tax assessments from Brazil totaling approximately $7 million. The Company believes that Loral Skynet’s filing position will ultimately be sustained requiring no payment under the Telesat Indemnification. In addition, the tax authority in Hong Kong had previously challenged Loral Skynet’s and Telesat’s offshore claim for exempt income for the years 1999 to 2009, issuing assessments which required Loral Skynet to deposit approximately $6.5 million of taxes in 2006 and 2007 in order to retain its right to appeal. During the three months ended March 31, 2014, Loral’s portion of this tax liability in Hong Kong and various other claims under the Telesat Indemnification were settled for approximately $1.1 million resulting in a tax recovery of $5.4 million which was received from Telesat in April 2014. As of March 31, 2014 and December 31, 2013, we had recognized a net receivable from Telesat of $5.4 million and $0.5 million, respectively, representing our estimate of the probable outcome of all tax matters under the Telesat Indemnification. The receivable is included in the condensed consolidated balance sheets as other current assets as of March 31, 2014 and other assets of $2.6 million and long-term liabilities of $2.1 million as of December 31, 2013. There can be no assurance, however, that future claims under the Telesat Indemnification will be ultimately settled for the net amount recorded. | |
Loral, along with Telesat Holdco, Telesat, PSP and 4440480 Canada Inc., an indirect wholly-owned subsidiary of Loral (the “Special Purchaser”), entered into grant agreements (the “Grant Agreements”) with certain executives of Telesat (each, a “Participant” and collectively, the “Participants”). Each of the Participants was, at the time, an executive of Telesat. | |
The Grant Agreements confirm grants of Telesat Holdco stock options (including tandem SAR rights) to the Participants and provide for certain rights, obligations and restrictions related to such stock options, which include, among other things: (w) the possible obligation of the Special Purchaser to purchase the shares in the place of Telesat Holdco should Telesat Holdco be prohibited by applicable law or under the terms of any credit agreement applicable to Telesat Holdco from purchasing such shares, or otherwise default on such purchase obligation, pursuant to the terms of the Grant Agreements; and (x) the obligation of the Special Purchaser to purchase shares upon exercise by Telesat Holdco of its call right under Telesat Holdco's Management Stock Incentive Plan in the event of a Participant’s termination of employment; and, in the case of certain executives, (y) the right of each such Participant to require the Special Purchaser or Loral to purchase a portion of the shares in Telesat Holdco owned by him in the event of exercise after termination of employment to cover taxes that are greater than the minimum withholding amount; and (z) the right of each such Participant to require Telesat Holdco to cause the Special Purchaser or Loral to purchase a portion of the shares in Telesat Holdco owned by him, or that are issuable to him under Telesat Holdco's Management Stock Incentive Plan at the relevant time, in the event that more than 90% of Loral's common stock is acquired by an unaffiliated third party that does not also purchase all of PSP's and its affiliates' interest in Telesat Holdco. | |
The Grant Agreements further provide that, in the event the Special Purchaser is required to purchase shares, such shares, together with the obligation to pay for such shares, shall be transferred to a subsidiary of the Special Purchaser, which subsidiary shall be wound up into Telesat Holdco, with Telesat Holdco agreeing to the acquisition of such subsidiary by Telesat Holdco from the Special Purchaser for nominal consideration and with the purchase price for the shares being paid by Telesat Holdco within ten (10) business days after completion of the winding-up of such subsidiary into Telesat Holdco. | |
ViaSat/Telesat | |
In connection with an agreement entered into between SS/L and ViaSat for the construction by SS/L for ViaSat of a high capacity broadband satellite called ViaSat-1, on January 11, 2008, we entered into certain agreements, pursuant to which we invested in the Canadian coverage portion of the ViaSat-1 satellite. Until his resignation in February 2012, Michael B. Targoff served, and another Loral director currently serves, as a member of the ViaSat Board of Directors. | |
On April 11, 2011, Loral assigned to Telesat and Telesat assumed from Loral all of Loral’s rights and obligations with respect to the ViaSat-1 satellite payload providing coverage into Canada and all related agreements. Loral also assigned to Telesat and Telesat assumed Loral’s 15-year contract with Xplornet Communications, Inc. (“Xplornet”) (formerly known as Barrett Xplore Inc.) for delivery of high throughput satellite Ka-band capacity and gateway services for broadband services in Canada. In connection with the assignments, Loral is entitled to receive one-half of any net revenue earned by Telesat in connection with the leasing of certain supplemental capacity on the payload to its customers during the first four years after the commencement of service using the supplemental capacity. For the three months ended March 31, 2014 and 2013, we earned approximately $0.2 million and $0.5 million, respectively, under this arrangement. We had a receivable from Telesat of $0.3 million as of March 31, 2014 and December 31, 2013 related to this arrangement. | |
Other | |
As described in Note 5, we own 56% of XTAR, a joint venture between Loral and Hisdesat and account for our investment in XTAR under the equity method of accounting. SS/L constructed XTAR’s satellite, which was successfully launched in February 2005. XTAR and Loral have entered into a management agreement whereby Loral provides general and specific services of a technical, financial and administrative nature to XTAR. For the services provided by Loral, XTAR, until December 31, 2013, was charged a quarterly management fee equal to 3.7% of XTAR’s quarterly gross revenues. Amounts due to Loral primarily due to the management agreement as of March 31, 2014 and December 31, 2013 were $6.7 million and $6.9 million, respectively. Beginning in 2008, Loral and XTAR agreed to defer amounts owed to Loral under this agreement, and XTAR has agreed that its excess cash balance (as defined), will be applied at least quarterly towards repayment of receivables owed to Loral, as well as to Hisdesat and Telesat. No cash was received under this agreement for the three months ended March 31, 2014 and 2013, and we had a full allowance against these receivables as of March 31, 2014 and 2013. Loral and Hisdesat have agreed to waive future management fees for an indefinite period starting January 1, 2014. | |
Consulting Agreement | |
On December 14, 2012, Loral entered into a consulting agreement with Michael B. Targoff, Vice Chairman of the Company and former Chief Executive Officer and President. Pursuant to this agreement, Mr. Targoff is engaged as a part-time consultant to the Board to assist the Board with respect to the oversight of strategic matters relating to Telesat and XTAR and the ViaSat Suit. Under the agreement, Mr. Targoff receives consulting fees of $120,000 per month before deduction of certain expenses of $17,000 per month for which he reimburses the Company. For each of the three months ended March 31, 2014 and 2013, Mr. Targoff earned $360,000 (before his expense reimbursement to Loral of $51,000). | |
Basis_of_Presentation_Policy
Basis of Presentation (Policy) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Basis of Presentation [Abstract] | ' | |||||||||||||||||
Investments in Affiliates | ' | |||||||||||||||||
Investments in Affiliates | ||||||||||||||||||
Ownership interests in Telesat and XTAR, LLC (“XTAR”) are accounted for using the equity method of accounting. Income and losses of affiliates are recorded based on our beneficial interest. Our equity in net income or loss also reflects amortization of profits eliminated, to the extent of our economic interest in Telesat and XTAR, on satellites we constructed for them while we owned SS/L and on Loral’s sale to Telesat in April 2011 of its portion of the payload on the ViaSat-1 satellite and related assets. Equity in losses of affiliates is not recognized after the carrying value of an investment, including advances and loans, has been reduced to zero, unless guarantees or other funding obligations exist. The Company monitors its equity method investments for factors indicating other-than-temporary impairment. An impairment loss would be recognized when there has been a loss in value of the affiliate that is other-than-temporary. | ||||||||||||||||||
Use of Estimates in Preparation of Financial Statements | ' | |||||||||||||||||
Use of Estimates in Preparation of Financial Statements | ||||||||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amount of income (loss) reported for the period. Actual results could differ from estimates. | ||||||||||||||||||
Significant estimates also included the allowances for doubtful accounts, the realization of deferred tax assets, uncertain tax positions, the fair value of liabilities indemnified and our pension liabilities. | ||||||||||||||||||
Concentration of Credit Risk | ' | |||||||||||||||||
Concentration of Credit Risk | ||||||||||||||||||
Financial instruments which potentially subject us to concentrations of credit risk consist principally of cash and cash equivalents and receivables. Our cash and cash equivalents are maintained with high-credit-quality financial institutions. The Land Note is guaranteed by Royal Bank of Canada. As a result, management believes that its potential credit risks are minimal. | ||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||
Fair Value Measurements | ||||||||||||||||||
U.S. GAAP defines fair value as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants. U.S. GAAP also establishes a fair value hierarchy that gives the highest priority to observable inputs and the lowest priority to unobservable inputs. The three levels of the fair value hierarchy are described below: | ||||||||||||||||||
Level 1: Inputs represent a fair value that is derived from unadjusted quoted prices for identical assets or liabilities traded in active markets at the measurement date. | ||||||||||||||||||
Level 2: Inputs represent a fair value that is derived from quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities, and pricing inputs, other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. | ||||||||||||||||||
Level 3: Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. | ||||||||||||||||||
Assets and Liabilities Measured at Fair Value | ||||||||||||||||||
The following table presents our assets and liabilities measured at fair value at March 31, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||||
Cash equivalents: | ||||||||||||||||||
Money market funds | $ | 3,417 | $ | — | $ | — | $ | 3,216 | $ | — | $ | — | ||||||
Note receivable: | ||||||||||||||||||
Land Note | $ | — | $ | — | $ | 33,667 | $ | — | $ | — | $ | 101,000 | ||||||
Liabilities | ||||||||||||||||||
Indemnifications: | ||||||||||||||||||
Sale of SS/L | $ | — | $ | — | $ | 14,368 | $ | — | $ | — | $ | 10,897 | ||||||
Globalstar do Brasil S.A. | $ | — | $ | — | $ | 1,294 | $ | — | $ | — | $ | 1,320 | ||||||
The carrying amount of cash equivalents approximates fair value because of the short maturity of those instruments. The carrying amount of the Land Note approximates fair value because the stated interest rate is consistent with current market rates. The fair value of indemnifications related to the sale of SS/L was originally estimated using Monte Carlo simulation based on the potential probability weighted cash flows that would be a guarantor’s responsibility in an arm’s length transaction. The increase in the liability from December 31, 2013 to March 31, 2014 represents receipt of the final payment from SS/L for its share of litigation costs related to the ViaSat Suit, partially offset by litigation costs paid. The fair value of indemnifications related to Globalstar do Brasil S.A. (“GdB”) was estimated using expected value analysis. The Company does not have any non-financial assets or non-financial liabilities that are recognized or disclosed at fair value as of March 31, 2014. | ||||||||||||||||||
We review the carrying values of our equity method investments when events and circumstances warrant and consider all available evidence in evaluating when declines in fair value are other than temporary. The fair values of our investments are determined based on valuation techniques using the best information available and may include quoted market prices, market comparables and discounted cash flow projections. An impairment charge is recorded when the carrying amount of the investment exceeds its current fair value and is determined to be other than temporary. | ||||||||||||||||||
Discontinued Operations | ' | |||||||||||||||||
Discontinued Operations | ||||||||||||||||||
Adjustments to amounts previously reported in discontinued operations that are directly related to the Sale are classified as discontinued operations in the statements of operations for the three months ended March 31, 2014 and 2013. | ||||||||||||||||||
Recent Accounting Pronouncements | ' | |||||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||||||
In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU No. 2014-08 changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, only those disposals that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results will be reported as discontinued operations in the consolidated financial statements. Also, disposal of an equity method investment that meets the definition of a discontinued operation is to be reported in discontinued operations under the new guidance. The guidance, effective for the Company on January 1, 2015, is not expected to have a material impact on our consolidated financial statements. | ||||||||||||||||||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This new standard requires the netting of unrecognized tax benefits (“UTBs”) against available deferred tax assets for losses and other carryforward benefits that would be available to offset the liability for uncertain tax positions rather than presenting the UTB on a gross basis. The guidance, effective for the Company on January 1, 2014, did not have a material effect on our condensed consolidated financial statements as the Company had already adopted this methodology. | ||||||||||||||||||
In March 2013, the FASB issued ASU No. 2013-05, Foreign Currency Matters (Topic 830) - Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. ASU No. 2013-05 clarifies that the cumulative translation adjustment should be released into net income only when a reporting entity ceases to have a controlling financial interest in a subsidiary or a business within a foreign entity. Further, for an equity method investment that is a foreign entity, a pro rata portion of the cumulative translation adjustment should be released into net income upon a partial sale of such an equity method investment. The guidance, effective for the Company on January 1, 2014, did not have a material impact on our condensed consolidated financial statements. | ||||||||||||||||||
In February 2013, the FASB issued ASU No. 2013-04, Liabilities (Topic 405) – Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date. ASU No. 2013-04 provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements. The guidance requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date, as the sum of: (a) the amount the reporting entity agreed to pay on the basis of its arrangement with its co-obligors, and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance, effective for the Company on January 1, 2014, did not have a material impact on our condensed consolidated financial statements. | ||||||||||||||||||
Additional Cash Flow Information | ' | |||||||||||||||||
Additional Cash Flow Information | ||||||||||||||||||
The following represents non-cash activities and supplemental information to the condensed consolidated statements of cash flows (in thousands): | ||||||||||||||||||
Three Months | ||||||||||||||||||
Ended March 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Non-cash operating items: | ||||||||||||||||||
Equity in net loss of affiliates | $ | 2,169 | $ | 7,281 | ||||||||||||||
Deferred taxes | 9,404 | 1,977 | ||||||||||||||||
Depreciation and amortization | 10 | 4 | ||||||||||||||||
Stock-based compensation | — | 263 | ||||||||||||||||
Amortization of prior service credit and actuarial loss | 103 | 1,501 | ||||||||||||||||
Net non-cash operating items – continuing operations | $ | 11,686 | $ | 11,026 | ||||||||||||||
Supplemental information: | ||||||||||||||||||
Interest paid – continuing operations | $ | 3 | $ | 3 | ||||||||||||||
Tax payments, net of refunds – continuing operations | $ | 55 | $ | 86 | ||||||||||||||
Tax payments – discontinued operations | $ | — | $ | 35,118 | ||||||||||||||
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
Basis of Presentation [Abstract] | ' | |||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ' | |||||||||||||||||
The following table presents our assets and liabilities measured at fair value at March 31, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||||
31-Mar-14 | 31-Dec-13 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||||
Cash equivalents: | ||||||||||||||||||
Money market funds | $ | 3,417 | $ | — | $ | — | $ | 3,216 | $ | — | $ | — | ||||||
Note receivable: | ||||||||||||||||||
Land Note | $ | — | $ | — | $ | 33,667 | $ | — | $ | — | $ | 101,000 | ||||||
Liabilities | ||||||||||||||||||
Indemnifications: | ||||||||||||||||||
Sale of SS/L | $ | — | $ | — | $ | 14,368 | $ | — | $ | — | $ | 10,897 | ||||||
Globalstar do Brasil S.A. | $ | — | $ | — | $ | 1,294 | $ | — | $ | — | $ | 1,320 | ||||||
Additional Cash Flow Information | ' | |||||||||||||||||
The following represents non-cash activities and supplemental information to the condensed consolidated statements of cash flows (in thousands): | ||||||||||||||||||
Three Months | ||||||||||||||||||
Ended March 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Non-cash operating items: | ||||||||||||||||||
Equity in net loss of affiliates | $ | 2,169 | $ | 7,281 | ||||||||||||||
Deferred taxes | 9,404 | 1,977 | ||||||||||||||||
Depreciation and amortization | 10 | 4 | ||||||||||||||||
Stock-based compensation | — | 263 | ||||||||||||||||
Amortization of prior service credit and actuarial loss | 103 | 1,501 | ||||||||||||||||
Net non-cash operating items – continuing operations | $ | 11,686 | $ | 11,026 | ||||||||||||||
Supplemental information: | ||||||||||||||||||
Interest paid – continuing operations | $ | 3 | $ | 3 | ||||||||||||||
Tax payments, net of refunds – continuing operations | $ | 55 | $ | 86 | ||||||||||||||
Tax payments – discontinued operations | $ | — | $ | 35,118 | ||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | ' | ||||||||||||||||||
Components of Accumulated Other Comprehensive Loss | ' | ||||||||||||||||||
The components of accumulated other comprehensive loss, net of tax, are as follows (in thousands): | |||||||||||||||||||
Proportionate | |||||||||||||||||||
Share of | Accumulated | ||||||||||||||||||
Telesat Other | Other | ||||||||||||||||||
Postretirement | Comprehensive | Comprehensive | |||||||||||||||||
Benefits | Loss | Loss | |||||||||||||||||
Balance at January 1, 2013 | $ | -17,653 | $ | -19,741 | $ | -37,394 | |||||||||||||
Other comprehensive income before reclassification | 3,102 | 7,996 | 11,098 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 5,380 | — | 5,380 | ||||||||||||||||
Net current-period other comprehensive income | 8,482 | 7,996 | 16,478 | ||||||||||||||||
Balance at December 31, 2013 | -9,171 | -11,745 | -20,916 | ||||||||||||||||
Other comprehensive income before reclassification | — | 699 | 699 | ||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 64 | — | 64 | ||||||||||||||||
Net current-period other comprehensive income | 64 | 699 | 763 | ||||||||||||||||
Balance at March 31, 2014 | $ | -9,107 | $ | -11,046 | $ | -20,153 | |||||||||||||
Schedule of Other Comprehensive Income (Loss) and Related Income Tax Effects | ' | ||||||||||||||||||
The components of other comprehensive income and related tax effects are as follows (in thousands): | |||||||||||||||||||
Three Months | |||||||||||||||||||
Ended March 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Before-Tax | Tax | Net-of-Tax | Before-Tax | Tax | Net-of-Tax | ||||||||||||||
Amount | Provision | Amount | Amount | Provision | Amount | ||||||||||||||
Amortization of prior service credits and | $ | 103 | (a) | $ | -39 | $ | 64 | $ | 1,501 | (a) | $ | -573 | $ | 928 | |||||
net actuarial loss | |||||||||||||||||||
Proportionate share of Telesat Holdco | 1,126 | -427 | 699 | 718 | -274 | 444 | |||||||||||||
other comprehensive gain (loss) | |||||||||||||||||||
Other comprehensive income (loss) | $ | 1,229 | $ | -466 | $ | 763 | $ | 2,219 | $ | -847 | $ | 1,372 | |||||||
(a) Reclassifications are included in general and administrative expenses. | |||||||||||||||||||
Receivables_Tables
Receivables (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Receivables [Abstract] | ' | |||||
Receivable Balances Related to Land Note Receivable | ' | |||||
The receivables balance related to the Land Note (see Note 1) as of March 31, 2014 and December 31, 2013 is presented below (in thousands): | ||||||
March 31, | December 31, | |||||
2014 | 2013 | |||||
Land Note receivable | $ | 33,667 | $ | 101,000 | ||
Less: current portion | -33,667 | -67,333 | ||||
Long-term receivable | $ | — | $ | 33,667 | ||
Investments_In_Affiliates_Tabl
Investments In Affiliates (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Investments in and Advances to Affiliates [Line Items] | ' | |||||
Investments in Affiliates | ' | |||||
Investments in affiliates consist of (in thousands): | ||||||
March 31, | December 31, | |||||
2014 | 2013 | |||||
Telesat Holdings Inc. | $ | 55,636 | $ | 60,157 | ||
XTAR, LLC | 55,178 | 56,663 | ||||
$ | 110,814 | $ | 116,820 | |||
Equity in Net (Loss) Income of Affiliates | ' | |||||
Equity in net loss of affiliates consists of (in thousands): | ||||||
Three Months | ||||||
Ended March 31, | ||||||
2014 | 2013 | |||||
Telesat Holdings Inc. | $ | -684 | $ | -718 | ||
XTAR, LLC | -1,485 | -1,763 | ||||
Other | — | -4,800 | ||||
$ | -2,169 | $ | -7,281 | |||
Telesat Holdings Inc [Member] | ' | |||||
Investments in and Advances to Affiliates [Line Items] | ' | |||||
Summary Financial Data, Equity Method Investment | ' | |||||
The following table presents summary financial data for Telesat in accordance with U.S. GAAP, as of March 31, 2014 and December 31, 2013 and for the three months ended March 31, 2014 and 2013 (in thousands): | ||||||
Three Months | ||||||
Ended March 31, | ||||||
2014 | 2013 | |||||
Statement of Operations Data: | ||||||
Revenues | $ | 220,599 | $ | 217,468 | ||
Operating expenses | -40,330 | -50,158 | ||||
Depreciation, amortization and stock-based compensation | -58,481 | -57,818 | ||||
(Loss) gain on disposition of long lived asset | -59 | 468 | ||||
Operating income | 121,729 | 109,960 | ||||
Interest expense | -47,515 | -59,695 | ||||
Expense of refinancing | — | -19,964 | ||||
Foreign exchange losses | -101,749 | -70,340 | ||||
Gains on financial instruments | 47,350 | 36,853 | ||||
Other income | 739 | 383 | ||||
Income tax provision | -21,149 | -7,842 | ||||
Net loss | $ | -595 | $ | -10,645 | ||
March 31, | December 31, | |||||
2014 | 2013 | |||||
Balance Sheet Data: | ||||||
Current assets | $ | 416,245 | $ | 366,814 | ||
Total assets | 4,756,122 | 4,929,838 | ||||
Current liabilities | 288,867 | 360,744 | ||||
Long-term debt, including current portion | 3,176,815 | 3,215,831 | ||||
Total liabilities | 4,129,276 | 4,280,902 | ||||
Shareholders’ equity | 626,846 | 648,936 | ||||
XTAR, LLC [Member] | ' | |||||
Investments in and Advances to Affiliates [Line Items] | ' | |||||
Summary Financial Data, Equity Method Investment | ' | |||||
The following table presents summary financial data for XTAR as of March 31, 2014 and December 31, 2013 and for the three months ended March 31, 2014 and 2013 (in thousands): | ||||||
Three Months | ||||||
Ended March 31, | ||||||
2014 | 2013 | |||||
Statement of Operations Data: | ||||||
Revenues | $ | 8,046 | $ | 8,125 | ||
Operating expenses | -7,807 | -8,369 | ||||
Depreciation and amortization | -2,315 | -2,310 | ||||
Operating loss | -2,076 | -2,554 | ||||
Net loss | -2,762 | -3,259 | ||||
March 31, | December 31, | |||||
2014 | 2013 | |||||
Balance Sheet Data: | ||||||
Current assets | $ | 5,929 | $ | 6,970 | ||
Total assets | 61,388 | 64,745 | ||||
Current liabilities | 22,737 | 22,443 | ||||
Total liabilities | 56,277 | 56,872 | ||||
Members’ equity | 5,111 | 7,873 | ||||
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Other Current Liabilities [Abstract] | ' | |||||
Schedule of Other Current Liabilities | ' | |||||
Other current liabilities consists of (in thousands): | ||||||
March 31, | December 31, | |||||
2014 | 2013 | |||||
Pension and other postretirement liabilities | $ | 129 | $ | 128 | ||
Indemnification liabilities (see Note 2) | 4,162 | 6,138 | ||||
Income taxes payable | 647 | — | ||||
Deferred tax liability | 8,874 | — | ||||
Other | 2,297 | 2,484 | ||||
$ | 16,109 | $ | 8,750 | |||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Income Taxes [Abstract] | ' | |||||
Summary of Income Tax Benefit (Provision) | ' | |||||
The following summarizes our income tax provision on the loss from continuing operations (in thousands): | ||||||
Three Months Ended | ||||||
March 31, | ||||||
2014 | 2013 | |||||
Total current income tax provision | $ | -1,268 | $ | -838 | ||
Total deferred income tax provision | -9,404 | -1,977 | ||||
Income tax provision | $ | -10,672 | $ | -2,815 | ||
Summary of Uncertain Tax Positions Included in Income Tax Provision | ' | |||||
The following summarizes amounts for uncertain tax positions (“UTPs”) included in our income tax provision (in thousands): | ||||||
Three Months Ended | ||||||
March 31, | ||||||
2014 | 2013 | |||||
Current provision for UTPs | $ | -319 | $ | -447 | ||
Deferred benefit for UTPs | 101 | 139 | ||||
Tax provision for UTPs | $ | -218 | $ | -308 | ||
Summary of Changes to Company's Liabilities for UTPs | ' | |||||
The following summarizes the changes to our liabilities for UTPs included in long-term liabilities in the condensed consolidated balance sheets (in thousands): | ||||||
Three Months Ended | ||||||
March 31, | ||||||
2014 | 2013 | |||||
Liabilities for UTPs: | ||||||
Opening balance — January 1 | $ | 79,688 | $ | 80,732 | ||
Current (benefit) provision for: | ||||||
Unrecognized tax benefits | -38 | 581 | ||||
Potential additional interest | 611 | 405 | ||||
Potential penalty adjustment | -36 | 27 | ||||
Statute expirations | -219 | -566 | ||||
Ending balance | $ | 80,006 | $ | 81,179 | ||
Long_Term_Liabilities_Tables
Long Term Liabilities (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Long Term Liabilities [Abstract] | ' | |||||
Schedule of Long Term Liabilities | ' | |||||
Long term liabilities consists of (in thousands): | ||||||
March 31, | December 31, | |||||
2014 | 2013 | |||||
Indemnification liabilities (see Note 2) | $ | 11,500 | $ | 6,079 | ||
Deferred tax liability | 3,365 | 4,907 | ||||
Liabilities for uncertain tax positions | 80,006 | 79,688 | ||||
Other | 305 | 2,443 | ||||
$ | 95,176 | $ | 93,117 | |||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Earnings Per Share [Abstract] | ' | |||||
Summary of Unvested Restricted Stock Units Excluded From the Calculation of Diluted Loss Per Share | ' | |||||
For the three months ended March 31, 2014 and 2013, the following unvested restricted stock units are excluded from the calculation of diluted loss per share as the effect would have been antidilutive (in thousands): | ||||||
Three Months | ||||||
Ended March 31, | ||||||
2014 | 2013 | |||||
Unvested restricted stock units | 84 | 254 | ||||
Pensions_and_Other_Employee_Be1
Pensions and Other Employee Benefit Plans (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
Pensions and Other Employee Benefit Plans [Abstract] | ' | |||||||||||
Components of Net Periodic Cost | ' | |||||||||||
The following table provides the components of net periodic cost included in loss from continuing operations for our qualified and supplemental retirement plans (the “Pension Benefits”) and health care and life insurance benefits for retired employees and dependents (the “Other Benefits”) for the three months ended March 31, 2014 and 2013 (in thousands): | ||||||||||||
Pension Benefits | Other Benefits | |||||||||||
Three Months | Three Months | |||||||||||
Ended March 31, | Ended March 31, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Service cost | $ | 41 | $ | 147 | $ | 1 | $ | 2 | ||||
Interest cost | 469 | 463 | 17 | 10 | ||||||||
Expected return on plan assets | -474 | -427 | — | — | ||||||||
Amortization of net actuarial loss | 93 | 1,503 | 8 | 4 | ||||||||
Amortization of prior service credits | — | — | 2 | -6 | ||||||||
Net periodic cost | $ | 129 | $ | 1,686 | $ | 28 | $ | 10 | ||||
Organization_and_Principal_Bus1
Organization and Principal Business (Narrative) (Details) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | ||||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Nov. 02, 2012 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Telesat Holdco [Member] | Sale of SS/L [Member] | Sale of SS/L [Member] | Sale of SS/L [Member] | ViaSat Lawsuit [Member] | Loral Change of Control [Member] | |||
Sale of SS/L [Member] | ViaSat Lawsuit [Member] | |||||||
Indemnification Agreement [Member] | Sale of SS/L [Member] | |||||||
Indemnification Agreement [Member] | ||||||||
Organization And Principal Business [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Economic interest in affiliates | ' | ' | 62.80% | ' | ' | ' | ' | ' |
Voting interest in affiliate | ' | ' | 32.70% | ' | ' | ' | ' | ' |
Cash proceeds from sale of SS/L | ' | ' | ' | $967,900,000 | ' | ' | ' | ' |
Amortization period of Land Note | ' | ' | ' | '3 years | ' | ' | ' | ' |
Date purchase agreement entered into | ' | ' | ' | 26-Jun-12 | ' | ' | ' | ' |
Date of first modification of purchase agreement | ' | ' | ' | 30-Oct-12 | ' | ' | ' | ' |
Date of second modification of purchase agreement | ' | ' | ' | ' | ' | 28-Mar-13 | ' | ' |
Promissory note for sale of real estate of disposal group | 33,667,000 | 101,000,000 | ' | 101,000,000 | ' | ' | ' | ' |
Transaction costs related to sale of SS/L | ' | ' | ' | 35,200,000 | ' | ' | ' | ' |
Original due date of first installment of promissory note | ' | ' | ' | ' | ' | 31-Mar-13 | ' | ' |
Revised due date of first installment of promissory note | ' | ' | ' | ' | ' | 31-Mar-14 | ' | ' |
Principal amount of first installment of promissory note | ' | ' | ' | ' | ' | 33,700,000 | ' | ' |
Original interest rate of first installment of promissory note | ' | ' | ' | ' | ' | 1.00% | ' | ' |
Revised interest rate of first installment of promissory note | ' | ' | ' | ' | ' | 1.50% | ' | ' |
Land promissory note interest rate | ' | ' | ' | 1.00% | ' | ' | ' | ' |
Disposal segment, sale date | ' | ' | ' | 2-Nov-12 | ' | ' | ' | ' |
Payment towards contingency pursuant to purchase agreement | ' | ' | ' | ' | 6,500,000 | ' | ' | ' |
Loss Contingency, Damages Awarded, Value | ' | ' | ' | ' | ' | ' | 283,000,000 | ' |
Loss Contingency, Range of Possible Loss, Maximum | ' | ' | ' | ' | ' | ' | ' | 200,000,000 |
Promissory note amortization period and frequency | ' | ' | ' | 'three equal annual installments | ' | ' | ' | ' |
Promissory note amortization period commencement date | ' | ' | ' | 31-Mar-13 | ' | ' | ' | ' |
Receipt of principal, Land Note | $67,333,000 | ' | ' | ' | ' | ' | ' | ' |
Date of incorporation | 24-Jun-05 | ' | ' | ' | ' | ' | ' | ' |
Date of emergence from bankruptcy proceedings | 21-Nov-05 | ' | ' | ' | ' | ' | ' | ' |
Basis_of_Presentation_Assets_a
Basis of Presentation (Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Level 2 [Member] | ' | ' |
Assets and Liabilities | ' | ' |
Note receivable, Land Note | ' | ' |
Level 3 [Member] | ' | ' |
Assets and Liabilities | ' | ' |
Note receivable, Land Note | 33,667 | 101,000 |
Money Market Funds [Member] | Level 1 [Member] | ' | ' |
Assets and Liabilities | ' | ' |
Cash equivalents | 3,417 | 3,216 |
Money Market Funds [Member] | Level 2 [Member] | ' | ' |
Assets and Liabilities | ' | ' |
Cash equivalents | ' | ' |
Sale of SS/L [Member] | Level 2 [Member] | ' | ' |
Assets and Liabilities | ' | ' |
Indemnifications liabilities | ' | ' |
Sale of SS/L [Member] | Level 3 [Member] | ' | ' |
Assets and Liabilities | ' | ' |
Indemnifications liabilities | 14,368 | 10,897 |
Globalstar do Brasil S.A. [Member] | Level 2 [Member] | ' | ' |
Assets and Liabilities | ' | ' |
Indemnifications liabilities | ' | ' |
Globalstar do Brasil S.A. [Member] | Level 3 [Member] | ' | ' |
Assets and Liabilities | ' | ' |
Indemnifications liabilities | $1,294 | $1,320 |
Basis_of_Presentation_Addition
Basis of Presentation (Additional Cash Flow Information) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Non-cash operating items: | ' | ' |
Equity in net (income) loss of affiliates | $2,169 | $7,281 |
Deferred taxes | 9,404 | 1,977 |
Depreciation and amortization | 10 | 4 |
Stock-based compensation | ' | 263 |
Amortization of prior service credit and actuarial (gain) loss | 103 | 1,501 |
Net non-cash operating items | 11,686 | 11,026 |
Continuing Operations [Member] | ' | ' |
Supplemental information: | ' | ' |
Interest paid | 3 | 3 |
Tax payments (refunds) | 55 | 86 |
Discontinued Operations [Member] | ' | ' |
Supplemental information: | ' | ' |
Tax payments (refunds) | ' | $35,118 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Components of Accumulated Other Comprehensive Loss) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Postretirement Benefits [Member] | Postretirement Benefits [Member] | Proportionate Share of Telesat Other Comprehensive Loss [Member] | Proportionate Share of Telesat Other Comprehensive Loss [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Other Comprehensive Loss [Member] | |||
Accumulated other comprehensive income (loss), beginning balance | ($20,916) | ' | ($9,171) | ($17,653) | ($11,745) | ($19,741) | ($20,916) | ($37,394) |
Other comprehensive income (loss) before reclassification | ' | ' | ' | 3,102 | 699 | 7,996 | 699 | 11,098 |
Amounts reclassified from accumulated other comprehensive income (loss) | ' | ' | 64 | 5,380 | ' | ' | 64 | 5,380 |
Net current-period other comprehensive income (loss) | 763 | 1,372 | 64 | 8,482 | 699 | 7,996 | 763 | 16,478 |
Accumulated other comprehensive income (loss), ending balance | ($20,153) | ' | ($9,107) | ($9,171) | ($11,046) | ($11,745) | ($20,153) | ($20,916) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (Components of Other Comprehensive Income and Related Tax Effects) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Accumulated Other Comprehensive Loss [Abstract] | ' | ' | ||
Net actuarial gain (loss) and prior service credits, Before-Tax Amount | $103 | [1] | $1,501 | [1] |
Proportionate share of Telesat Holdco other comprehensive income (loss), Before-Tax Amount | 1,126 | 718 | ||
Other comprehensive income (loss), Before-Tax Amount | 1,229 | 2,219 | ||
Net actuarial gain (loss) and prior service credits, Tax (Expense) Benefit | -39 | -573 | ||
Proportionate share of Telesat Holdco other comprehensive income (loss), Tax (Expense) Benefit | -427 | -274 | ||
Other comprehensive income, Tax (Expense) Benefit | -466 | -847 | ||
Net actuarial gain (loss) and prior service credits, Net-of Tax Amount | 64 | 928 | ||
Proportionate share of Telesat Holdco other comprehensive income (loss) | 699 | 444 | ||
Other comprehensive income (loss), Net-of Tax Amount | $763 | $1,372 | ||
[1] | Reclassifications are included in general and administrative expenses. |
Receivables_Narrative_Details
Receivables (Narrative) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | Land Note [Member] | Land Note [Member] | ||
Maturity Date, March 31, 2015 [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Notes receivable | $33,667 | $67,333 | ' | $33,667 |
Interest rate on Land Note | ' | ' | 1.00% | ' |
Land Note, interest payment terms | ' | ' | 'quarterly | ' |
Receivables_Receivable_Balance
Receivables (Receivable Balances Related to Land Note Receivable) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable Recorded Investment [Line Items] | ' | ' |
Land Note receivable | $33,667 | $101,000 |
Less: current portion | -33,667 | -67,333 |
Long-term receivables | ' | $33,667 |
Investments_in_Affiliates_Narr
Investments in Affiliates (Narrative) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2009 | Dec. 31, 2013 | Dec. 31, 2009 | Dec. 31, 2008 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2013 |
Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | XTAR, LLC [Member] | XTAR, LLC [Member] | XTAR, LLC [Member] | XTAR, LLC [Member] | XTAR, LLC [Member] | 12.5% Senior Subordinated Notes Due November 2017 [Member] | 6% Senior Notes Due May 2017 [Member] | Transaction, Consulting Agreement [Member] | Transaction, Consulting Agreement [Member] | Transaction, Tax Indemnification [Member] | Globalstar do Brasil S.A. [Member] | Globalstar do Brasil S.A. [Member] | Globalstar do Brasil S.A. [Member] | |||
Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | ||||||||||||||
item | ||||||||||||||||||
Investments in and Advances to Affiliates [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments in affiliates | $110,814,000 | $116,820,000 | $55,636,000 | ' | $60,157,000 | $55,178,000 | ' | $56,663,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Economic interest in affiliates | ' | ' | 62.80% | ' | 62.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Voting interest in affiliate | ' | ' | 32.70% | ' | 32.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital Expenditures | ' | ' | 11,400,000 | 30,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity method investment senior subordinated notes interest rate stated percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.50% | ' | ' | ' | ' | ' | ' | ' |
Indenture maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Nov-17 | ' | ' | ' | ' | ' | ' | ' |
Redemeption date of debt instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2013-05 | ' | ' | ' | ' | ' | ' | ' |
Transaction income during the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,250,000 | 1,250,000 | ' | ' | ' | ' |
Interest on notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' |
Interest expense multiplier to determine EBITDA available for dividend distribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.4 | ' | ' | ' | ' | ' | ' |
Transaction payments received during the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | 0 | ' | ' | ' | ' |
Transaction payment in promissory notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 1,270,000 | ' | ' | ' | ' |
Tax indemnification current, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,400,000 | ' | ' | ' |
Equity Method Investment Reduction Carrying Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' |
Percentage of ownership interest | ' | ' | ' | ' | ' | 56.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease obligation | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum annual lease obligation | ' | ' | ' | ' | ' | 28,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease agreement, past due | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Lease agreement, deferred amount | ' | ' | ' | ' | ' | ' | ' | ' | 6,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred lease obligation, annual payment | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment term past due and deferred lease obligation, years | ' | ' | ' | ' | ' | ' | '12 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rate for prepayment of restructured past due and deferred lease obligation | ' | ' | ' | ' | ' | ' | 9.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative payments of restructured past due and deferred lease obligation | ' | ' | ' | ' | ' | 25,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Estimate of Possible Loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,800,000 |
Loss Contingency Accrual, Period Increase (Decrease) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,700,000 | ' |
Loss Contingency Accrual, Payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,700,000 | ' | ' |
Investments_in_Affiliates_Inve
Investments in Affiliates (Investments in Affiliates) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Equity Method Investments [Line Items] | ' | ' |
Investments in affiliates | $110,814 | $116,820 |
Telesat Holdings Inc [Member] | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Investments in affiliates | 55,636 | 60,157 |
XTAR, LLC [Member] | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Investments in affiliates | $55,178 | $56,663 |
Investments_in_Affiliates_Equi
Investments in Affiliates (Equity in Net Income (Losses) of Affiliates) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Equity in net income (loss) of affiliates | ($2,169) | ($7,281) |
Telesat Holdings Inc [Member] | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Equity in net income (loss) of affiliates | -684 | -718 |
XTAR, LLC [Member] | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Equity in net income (loss) of affiliates | -1,485 | -1,763 |
Other Affiliates [Member] | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Equity in net income (loss) of affiliates | ' | ($4,800) |
Investments_in_Affiliates_Equi1
Investments in Affiliates (Equity Method Investment, Summarized Financial Data) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
XTAR, LLC [Member] | ' | ' | ' |
Statement of Operations Data: | ' | ' | ' |
Revenues | $8,046 | $8,125 | ' |
Operating expenses | -7,807 | -8,369 | ' |
Depreciation, amortization and stock-based compensation | -2,315 | -2,310 | ' |
Operating income (loss) | -2,076 | -2,554 | ' |
Net income (loss) | -2,762 | -3,259 | ' |
Current assets | 5,929 | ' | 6,970 |
Total assets | 61,388 | ' | 64,745 |
Current liabilities | 22,737 | ' | 22,443 |
Total liabilities | 56,277 | ' | 56,872 |
Shareholder' equity/Members' equity | 5,111 | ' | 7,873 |
Telesat Holdings Inc [Member] | ' | ' | ' |
Statement of Operations Data: | ' | ' | ' |
Revenues | 220,599 | 217,468 | ' |
Operating expenses | -40,330 | -50,158 | ' |
Depreciation, amortization and stock-based compensation | -58,481 | -57,818 | ' |
Gain (loss) on disposition of long lived asset | -59 | 468 | ' |
Operating income (loss) | 121,729 | 109,960 | ' |
Interest expense | -47,515 | -59,695 | ' |
Expense of refinancing | ' | -19,964 | ' |
Foreign exchange gains (losses) | -101,749 | -70,340 | ' |
Gains (losses) on financial instruments | 47,350 | 36,853 | ' |
Other income (expense) | 739 | 383 | ' |
Income tax expense | -21,149 | -7,842 | ' |
Net income (loss) | -595 | -10,645 | ' |
Current assets | 416,245 | ' | 366,814 |
Total assets | 4,756,122 | ' | 4,929,838 |
Current liabilities | 288,867 | ' | 360,744 |
Long-term debt, including current portion | 3,176,815 | ' | 3,215,831 |
Total liabilities | 4,129,276 | ' | 4,280,902 |
Shareholder' equity/Members' equity | $626,846 | ' | $648,936 |
Other_Current_Liabilities_Sche
Other Current Liabilities (Schedule of Other Current Liabilities) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Current Liabilities [Abstract] | ' | ' |
Pension and other post retirement liabilities | $129 | $128 |
Indemnification liabilities | 4,162 | 6,138 |
Income taxes payable | 647 | ' |
Deferred tax liability | 8,874 | ' |
Other | 2,297 | 2,484 |
Other current liabilities, total | $16,109 | $8,750 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Income Tax Contingency [Line Items] | ' |
Unrecognized tax benefits relating to UTPs | 80 |
Unrecognized tax benefits, interest on income taxes accrued | 4.6 |
Unrecognized tax benefits, income tax penalties accrued | 9 |
Potential change in unrecognized tax benefits during next twelve months | 2.7 |
Unrecognized tax benefits that would reduce the income tax provision | 37.1 |
Internal Revenue Service (IRS) [Member] | ' |
Income Tax Contingency [Line Items] | ' |
Statute of limitations to expire during next twelve months | '2010 |
State and Local Jurisdiction [Member] | ' |
Income Tax Contingency [Line Items] | ' |
Statute of limitations to expire during next twelve months | '2007 & 2009 |
Loss Carry Back 2013 [Member] | ' |
Income Tax Contingency [Line Items] | ' |
Income taxes receivable | 12.6 |
Income_Taxes_Summary_of_Income
Income Taxes (Summary of Income Tax Benefit (Provision)) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Taxes [Abstract] | ' | ' |
Total current income tax (provision) benefit | ($1,268) | ($838) |
Total deferred income tax (provision) benefit | -9,404 | -1,977 |
Income tax (provision) benefit | ($10,672) | ($2,815) |
Income_Taxes_Summary_of_Uncert
Income Taxes (Summary of Uncertain Tax Positions Included in Income Tax Provision) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Taxes [Abstract] | ' | ' |
Current provision for UTPs | ($319) | ($447) |
Deferred benefit for UTPs | 101 | 139 |
Tax provision for UTPs | ($218) | ($308) |
Income_Taxes_Summary_of_Change
Income Taxes (Summary of Changes to Company's Liabilities For UTPs) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Taxes [Abstract] | ' | ' |
Opening balance - January 1 | $79,688 | $80,732 |
Unrecognized tax benefits | -38 | 581 |
Potential additional interest | 611 | 405 |
Potential penalty adjustment | -36 | 27 |
Decreases as a result of statute expirations | -219 | -566 |
Ending balance | $80,006 | $81,179 |
Long_Term_Liabilities_Schedule
Long Term Liabilities (Schedule of Long Term Liabilities) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Long Term Liabilities [Abstract] | ' | ' | ' | ' |
Indemnification liabilities | $11,500 | $6,079 | ' | ' |
Deferred tax liability | 3,365 | 4,907 | ' | ' |
Liabilities for uncertain tax positions | 80,006 | 79,688 | 81,179 | 80,732 |
Other | 305 | 2,443 | ' | ' |
Long term liabilities | $95,176 | $93,117 | ' | ' |
Shareholders_Equity_Narrative_
Shareholders' Equity (Narrative) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | Program Date November 2011 [Member] | ||
Voting common stock repurchased, authorized shares | ' | ' | 800,000 |
Treasury stock, shares | 154,494 | 154,494 | 154,494 |
Treasury stock | $9,592 | $9,592 | ' |
Average cost per share | ' | ' | $62.04 |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Stock-Based Compensation [Abstract] | ' | ' |
Maximum number of shares authorized for issuance under stock incentive plan | 1,403,746 | ' |
Common stock available for future grant | 1,319,533 | ' |
Total stock-based compensation included in income (loss) from continuing operations | $0 | $0.30 |
Stock compensation, cash payments | $0.50 | $0.50 |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) (Telesat Holdings Inc [Member]) | 3 Months Ended |
Mar. 31, 2014 | |
Telesat Holdings Inc [Member] | ' |
Percentage of economic interest as result of dilution upon exercise of stock options | 62.00% |
Earnings_Per_Share_Summary_of_
Earnings Per Share (Summary of Unvested Restricted Stock Units Excluded from the Calculation of Diluted Loss Per Share) (Details) (Unvested Restricted Stock Units [Member]) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Unvested Restricted Stock Units [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Anti-dilutive securities excluded from the calculation of diluted loss per share | 84 | 254 |
Pensions_and_Other_Employee_Be2
Pensions and Other Employee Benefits Plans (Components of Net Periodic Cost) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Pension Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Service cost | $41 | $147 |
Interest cost | 469 | 463 |
Expected return on plan assets | -474 | -427 |
Amortization of net actuarial loss | 93 | 1,503 |
Net periodic cost | 129 | 1,686 |
Other Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Service cost | 1 | 2 |
Interest cost | 17 | 10 |
Amortization of net actuarial loss | 8 | 4 |
Amortization of prior service credits | 2 | -6 |
Net periodic cost | $28 | $10 |
Commitments_and_Contingencies_
Commitments and Contingencies (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 |
ViaSat Lawsuit [Member] | Globalstar do Brasil S.A. [Member] | Globalstar do Brasil S.A. [Member] | Globalstar do Brasil S.A. [Member] | Globalstar do Brasil S.A. [Member] | Globalstar do Brasil S.A. [Member] | Loral Change of Control [Member] | |
Indemnification Agreement [Member] | ViaSat Lawsuit [Member] | ||||||
Sale of SS/L [Member] | Indemnification Agreement [Member] | ||||||
Sale of SS/L [Member] | |||||||
Contingencies And Commitments [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency, Range of Possible Loss, Maximum | ' | ' | ' | ' | ' | ' | $200 |
Loss Contingency, Estimate of Possible Loss | ' | ' | ' | ' | ' | 4.8 | ' |
Loss Contingency Accrual | ' | ' | ' | 1.3 | 1.3 | ' | ' |
Loss contingency cash payment | ' | 3.7 | ' | ' | ' | ' | ' |
Loss Contingency Accrual, Period Increase (Decrease) | ' | ' | 3.7 | ' | ' | ' | ' |
Loss Contingency, Damages Awarded, Value | $283 | ' | ' | ' | ' | ' | ' |
Related_Party_Transactions_Nar
Related Party Transactions (Narrative) (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | Apr. 11, 2011 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Telesat Holdings Inc [Member] | Viasat and Telesat [Member] | Xtar [Member] | MHR Funds [Member] | MHR Funds [Member] | Transaction, Consulting Agreement [Member] | Transaction, Consulting Agreement [Member] | Transaction, Consulting Agreement [Member] | Transaction, Consulting Agreement [Member] | Transaction, Tax Indemnification [Member] | Transaction, Tax Indemnification [Member] | Transaction, Supplemental Capacity Revenue Share [Member] | Transaction, Supplemental Capacity Revenue Share [Member] | Transaction, Supplemental Capacity Revenue Share [Member] | Transaction, Management Agreement [Member] | Transaction, Management Agreement [Member] | Annual Fee [Member] | Monthly Fee [Member] | Years 2003 to 2006 [Member] | Years 1999 to 2009 [Member] | |
Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | Director [Member] | Director [Member] | Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | Viasat and Telesat [Member] | Viasat and Telesat [Member] | Viasat and Telesat [Member] | Xtar [Member] | Xtar [Member] | Transaction, Consulting Agreement [Member] | Transaction, Consulting Agreement [Member] | Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | ||||||
Telesat Holdings Inc [Member] | Director [Member] | Brazil [Member] | Hong Kong [Member] | |||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding voting common stock | ' | ' | ' | 38.00% | 38.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Economic interest in affiliates | 62.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership interest | ' | ' | 56.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related party transaction, date | ' | ' | ' | ' | ' | 31-Oct-07 | ' | 14-Dec-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transaction term | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' |
Consulting agreement, renewal term | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transaction fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,000,000 | $120,000 | ' | ' |
Expenses deductible from transaction fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,000 | ' | ' |
Related party annual transaction rate | ' | ' | ' | ' | ' | 7.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transaction income during the period | ' | ' | ' | ' | ' | 1,250,000 | 1,250,000 | 51,000 | 51,000 | ' | ' | 200,000 | 500,000 | ' | ' | ' | ' | ' | ' | ' |
Transaction payments received during the period | ' | ' | ' | ' | ' | 1,200,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transaction payment in promissory notes | ' | ' | ' | ' | ' | 0 | 1,270,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts due under the transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | 300,000 | ' | ' | ' | ' | ' | ' |
Tax assessment imposed audit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' |
Amount deposited with taxing authority | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,500,000 |
Tax Indemnification Settlement Liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax Indemnification Settlement Refund | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax indemnification current, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax indemnification, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts due under the transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,600,000 | ' | ' | ' | 6,700,000 | 6,900,000 | ' | ' | ' | ' |
Tax indemnification, recorded liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, percentage acquired by an unaffiliated third party | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Duration for shares to be paid, days | '10 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of entity's entitlement to net revenue of related party | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Duration of contract assigned to Telesat | ' | '15 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expenses on transactions with related party | ' | ' | ' | ' | ' | ' | ' | $360,000 | $360,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management fee charged as a percentage of revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.70% | ' | ' | ' | ' | ' |
Percentage of combined ownership of voting and non-voting common stock | ' | ' | ' | 57.10% | 57.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |