Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jun. 30, 2014 | Feb. 13, 2015 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | lorl | ||
Entity Registrant Name | LORAL SPACE & COMMUNICATIONS INC. | ||
Entity Central Index Key | 1006269 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $953,396,516 | ||
Voting Common Stock [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 21,414,212 | ||
Nonvoting Common Stock [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 9,505,673 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $51,433 | $5,926 |
Notes receivable | 33,667 | 67,333 |
Income taxes receivable | 11 | 13,234 |
Other current assets | 1,775 | 4,352 |
Total current assets | 86,886 | 90,845 |
Long-term receivables | 33,667 | |
Investments in affiliates | 104,792 | 116,820 |
Long-term deferred tax assets | 112,898 | 83,708 |
Other assets | 50 | 2,700 |
Total assets | 304,626 | 327,740 |
Current liabilities: | ||
Accrued employment costs | 2,300 | 960 |
Other current liabilities | 13,424 | 8,750 |
Total current liabilities | 15,724 | 9,710 |
Pension and other postretirement liabilities | 20,793 | 17,003 |
Long-term liabilities | 92,469 | 93,117 |
Total liabilities | 128,986 | 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 | 1,017,520 | 1,015,656 |
Treasury stock (at cost), 154,494 shares of voting common stock | -9,592 | -9,592 |
Accumulated deficit | -803,378 | -777,549 |
Accumulated other comprehensive loss | -29,221 | -20,916 |
Total equity | 175,640 | 207,910 |
Total liabilities and equity | 304,626 | 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 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 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 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Consolidated Statements of Operations [Abstract] | ||||
General and administrative expenses | ($5,330) | ($16,038) | ($28,774) | |
Operating income (loss) | -5,330 | -16,038 | -28,774 | |
Interest and investment income | 581 | 1,238 | 1,928 | |
Interest expense | -15 | -17 | -106 | |
Other income (expense) | -3,266 | -713 | -261 | |
Income (loss) from continuing operations before income taxes and equity in net income (loss) of affiliates | -8,030 | -15,530 | -27,213 | |
Income tax (provision) benefit | 8,105 | -1,841 | 93,315 | |
Income (loss) from continuing operations before equity in net income (loss) of affiliates | 75 | -17,371 | 66,102 | |
Equity in net income (loss) of affiliates | -1,502 | 38,827 | 34,340 | |
Income (loss) from continuing operations | -1,427 | 21,456 | 100,442 | |
Income (loss) from discontinued operations, net of tax provision | -24,402 | -4,877 | 320,649 | [1] |
Net income (loss) | -25,829 | 16,579 | 421,091 | |
Net (income) loss attributable to noncontrolling interest | 231 | |||
Net income (loss) attributable to Loral common shareholders | ($25,829) | $16,579 | $421,322 | |
Basic | ||||
Income (loss) from continuing operations | ($0.05) | $0.70 | $3.27 | |
Income (loss) from discontinued operations, net of tax | ($0.79) | ($0.16) | $10.45 | |
Net income (loss) | ($0.84) | $0.54 | $13.72 | |
Diluted | ||||
Income (loss) from continuing operations | ($0.05) | $0.67 | $3.22 | |
Income (loss) from discontinued operations, net of tax | ($0.79) | ($0.16) | $10.35 | |
Net income (loss) | ($0.84) | $0.51 | $13.57 | |
Weighted average common shares outstanding: | ||||
Basic | 30,920 | 30,850 | 30,703 | |
Diluted | 30,920 | 30,999 | 30,991 | |
[1] | Reference to the year ended December 31, 2012 in the table above is for the period January 1, 2012 to November 2, 2012, the date of the Sale. |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | ($25,829) | $16,579 | $421,091 |
Unrealized gain (loss) on derivatives | 1,306 | ||
Unrealized gain (loss) on investments | -580 | ||
Post-retirement benefits | -4,811 | 8,482 | 115,042 |
Proportionate share of Telesat other comprehensive income (loss) | -3,494 | 7,996 | 1,313 |
Other comprehensive income (loss), Net-of-Tax Amount | -8,305 | 16,478 | 117,081 |
Comprehensive income | -34,134 | 33,057 | 538,172 |
Comprehensive loss attributable to noncontrolling interest | 231 | ||
Comprehensive income (loss) attributable to Loral common shareholders | ($34,134) | $33,057 | $538,403 |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Voting Common Stock [Member] | Nonvoting Common Stock [Member] | Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Shareholders' Equity Attributable to Loral [Member] | Noncontrolling Interest [Member] | Total |
In Thousands, except Share data | Common Stock [Member] | Common Stock [Member] | |||||||
Balance at Dec. 31, 2011 | $212 | $95 | $1,014,724 | ($8,400) | $94,303 | ($154,475) | $946,459 | $1,126 | $947,585 |
Balance, shares at Dec. 31, 2011 | 21,230,000 | 9,506,000 | 136,000 | ||||||
Net income (loss) | 421,322 | -231 | 421,091 | ||||||
Other comprehensive income (loss) | 117,081 | 117,081 | |||||||
Comprehensive income (loss) | 538,403 | 538,403 | |||||||
Comprehensive income (loss) including portion attributable to noncontrolling interest | 538,172 | ||||||||
Elimination of noncontrolling interest resulting from the Sale | -895 | -895 | |||||||
Common dividends declared ($13.60 per share) | -417,606 | -417,606 | -417,606 | ||||||
Special distribution declared ($29.00 per share) | -892,147 | -892,147 | -892,147 | ||||||
Exercise of stock options | 2 | 1,633 | 1,635 | 1,635 | |||||
Exercise of stock options, shares | 169,000 | ||||||||
Shares surrendered to fund withholding taxes | -6,992 | -6,992 | -6,992 | ||||||
Shares surrendered to fund withholding taxes, shares | 18,000 | ||||||||
Adjustment to tax benefit associated with stock-based compensation | 16,919 | 16,919 | 16,919 | ||||||
Stock-based compensation | 1,151 | 1,151 | 1,151 | ||||||
Cash settlement of restricted stock units | -169 | -169 | -169 | ||||||
Voting common stock repurchased | -1,192 | -1,192 | -1,192 | ||||||
Voting common stock repurchased, shares | 18,000 | ||||||||
Balance at Dec. 31, 2012 | 214 | 95 | 1,027,266 | -9,592 | -794,128 | -37,394 | 186,461 | 186,461 | |
Balance, shares at Dec. 31, 2012 | 21,417,000 | 9,506,000 | 154,000 | ||||||
Net income (loss) | 16,579 | 16,579 | |||||||
Other comprehensive income (loss) | 16,478 | 16,478 | |||||||
Comprehensive income (loss) | 33,057 | 33,057 | |||||||
Comprehensive income (loss) including portion attributable to noncontrolling interest | 33,057 | ||||||||
Exercise of restricted stock units | 2 | -2 | |||||||
Exercise of restricted stock units, shares | 175,000 | ||||||||
Equitable adjustment to restricted stock units for dividends and distributions | 1 | -1 | |||||||
Equitable adjustment to restricted stock units for dividends and distributions, shares | 120,000 | ||||||||
Shares surrendered to fund withholding taxes | -1 | -8,896 | -8,897 | -8,897 | |||||
Shares surrendered to fund withholding taxes, shares | -143,000 | ||||||||
Adjustment to tax benefit associated with stock-based compensation | -3,128 | -3,128 | -3,128 | ||||||
Stock-based compensation | 417 | 417 | 417 | ||||||
Balance at Dec. 31, 2013 | 216 | 95 | 1,015,656 | -9,592 | -777,549 | -20,916 | 207,910 | 207,910 | |
Balance, shares at Dec. 31, 2013 | 21,569,000 | 9,506,000 | 154,000 | ||||||
Net income (loss) | -25,829 | -25,829 | |||||||
Other comprehensive income (loss) | -8,305 | -8,305 | |||||||
Comprehensive income (loss) | -34,134 | -34,134 | |||||||
Comprehensive income (loss) including portion attributable to noncontrolling interest | -34,134 | ||||||||
Adjustment to tax benefit associated with stock-based compensation | 1,864 | 1,864 | 1,864 | ||||||
Balance at Dec. 31, 2014 | $216 | $95 | $1,017,520 | ($9,592) | ($803,378) | ($29,221) | $175,640 | $175,640 | |
Balance, shares at Dec. 31, 2014 | 21,569,000 | 9,506,000 | 154,000 |
Consolidated_Statements_of_Equ1
Consolidated Statements of Equity (Parenthetical) (USD $) | 12 Months Ended |
Dec. 31, 2012 | |
Consolidated Statements of Equity [Abstract] | |
Common dividends declared per share | $13.60 |
Special distribution declared per share | $29 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | |||
Net income (loss) | ($25,829) | $16,579 | $421,091 |
(Income) loss from discontinued operations, net of tax provision | 24,402 | 4,877 | -320,649 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Non-cash operating items (Note 2) | -8,276 | -1,521 | -21,053 |
Changes in operating assets and liabilities: | |||
Long-term receivables | 20,700 | ||
Other current assets and other assets | -125 | 2,012 | -1,992 |
Accrued expenses and other current liabilities | 1,152 | -8,442 | -5,447 |
Income taxes receivable and payable | 13,128 | -12,112 | -22,043 |
Pension and other postretirement liabilities | -3,930 | -21,183 | 6,169 |
Long-term liabilities | -2,903 | -1,750 | -110,663 |
Net cash provided by (used in) operating activities - continuing operations | -2,381 | -21,540 | -33,887 |
Net cash provided by (used in) operating activities - discontinued operations | -26,743 | -48,965 | -66,605 |
Net cash provided by (used in) operating activities | -29,124 | -70,505 | -100,492 |
Investing activities: | |||
Tax indemnification recovery from affiliate | 5,438 | ||
Distributions received from affiliate | 420,199 | ||
Proceeds from sale of investments, net | 1,150 | 1,694 | |
Capital expenditures | -4 | -64 | -4 |
Net cash provided by (used in) investing activities - continuing operations | 5,434 | 1,086 | 421,889 |
Net cash provided by (used in) investing activities - discontinued operations | -107,778 | ||
Cash proceeds from the Sale, net of transaction costs of $35,219 | 932,661 | ||
Receipt of principal, Land Note - discontinued operations | 67,333 | ||
Net cash provided by (used in) investing activities | 72,767 | 1,086 | 1,246,772 |
Financing activities: | |||
Special cash distribution paid | -892,147 | ||
Cash dividend paid | -417,606 | ||
Voting common stock repurchased | -1,664 | ||
Proceeds from the exercise of stock options | 1,635 | ||
Cash settlement of restricted stock units | -169 | ||
Funding of withholding taxes for stock-based compensation | -8,897 | -6,992 | |
Excess tax benefit associated with stock-based compensation | 1,864 | -3,128 | 16,919 |
Net cash provided by (used in) financing activities - continuing operations | 1,864 | -12,025 | -1,300,024 |
Net cash provided by (used in) financing activities - discontinued operations | 44,000 | ||
Net cash provided by (used in) financing activities | 1,864 | -12,025 | -1,256,024 |
Increase (decrease) in cash and cash equivalents | 45,507 | -81,444 | -109,744 |
Cash and cash equivalents - beginning of period | 5,926 | 87,370 | 197,114 |
Cash and cash equivalents - end of period | $51,433 | $5,926 | $87,370 |
Organization_and_Principal_Bus
Organization and Principal Business | 12 Months Ended |
Dec. 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. Prior to completion of the sale of our wholly-owned subsidiary, Space Systems/Loral, LLC (formerly known as Space Systems/Loral, Inc. (“SS/L”)) in 2012, we were also engaged in the satellite manufacturing business. | |
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 6). 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. Also, in April 2013, pursuant to the Purchase Agreement, we completed the final allocation of qualified pension plan assets between Loral and SS/L (see Note 13). | |
The transaction was taxable, and, for tax purposes, treated as a sale of assets. | |
Under the terms of the Purchase Agreement, Loral agreed to indemnify SS/L from certain damages in a lawsuit (the “ViaSat Suit”) brought in 2012 by ViaSat, Inc. (“ViaSat”) against Loral and SS/L. In September 2014, Loral, SS/L and ViaSat entered into a settlement agreement (the “Settlement Agreement”) pursuant to which the ViaSat Suit and an additional patent infringement and breach of contract lawsuit brought by ViaSat against SS/L in September 2013 were settled. Loral was also released by MDA, MDA Holdings and SS/L from indemnification claims relating to the ViaSat lawsuits under the Purchase Agreement. The terms of the Settlement Agreement provide, among other things, for payment by Loral and SS/L to ViaSat on a joint and several basis of $100 million, $40 million of which was paid in September 2014 in connection with entering into the Settlement Agreement, with the remaining $60 million payable with interest in ten equal quarterly installments of $6.9 million from October 15, 2014 through January 15, 2017. As of December 31, 2014, the total principal and accrued interest amount payable by Loral and SS/L to ViaSat, on a joint and several basis, was $55.2 million. | |
Following a mediation session held on December 1, 2014, Loral and MDA entered into an agreement titled “MDA/Loral Dispute Resolution” dated December 1, 2014 (the “Allocation Agreement”), pursuant to which Loral and MDA agreed that Loral will be responsible for $45 million, and MDA and SS/L will be responsible for $55 million, of the $100 million litigation settlement with ViaSat. | |
As of December 31, 2014, Loral has paid $20.8 million toward the ViaSat settlement. Pursuant to the Allocation Agreement, Loral paid ViaSat $2.8 million in January 2015 and is obligated to make eight additional equal quarterly payments to ViaSat through January 2017 totaling $22.5 million inclusive of interest at 3.25% per year (see Note 15). | |
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 November 7, 2012, in connection with the receipt of the proceeds from the Sale, our Board of Directors declared a special distribution of $29.00 per share for an aggregate distribution of $892.1 million. The special distribution was paid on December 4, 2012 to holders of record of Loral voting and non-voting common stock as of November 19, 2012. In accordance with Loral’s stock incentive plan, an equitable adjustment was made to outstanding stock-based awards to reflect the special distribution. | |
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 SS/L for 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 a principal payment of $67.3 million on March 31, 2014 and is due to receive the remaining principal of $33.7 million on March 31, 2015. | |
Basis_of_Presentation
Basis of Presentation | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Basis of Presentation [Abstract] | ||||||||||||||||||
Basis of Presentation | 2. Basis of Presentation | |||||||||||||||||
The consolidated financial statements include the results of Loral and its subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany transactions have been eliminated. | ||||||||||||||||||
Investments in Affiliates | ||||||||||||||||||
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 is recognized when there has been a loss in value of the affiliate that is other-than-temporary. | ||||||||||||||||||
Use of Estimates in Preparation of Financial Statements | ||||||||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amount of income (loss) reported for the period. Actual results could 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. | ||||||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||||
As of December 31, 2014, the Company had $51.4 million of cash and cash equivalents. Cash and cash equivalents include liquid investments, primarily money market funds, with maturities of less than 90 days at the time of purchase and no redemption limitations. Management determines the appropriate classification of its investments at the time of purchase and at each balance sheet date. | ||||||||||||||||||
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 December 31, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||||
Cash equivalents: | ||||||||||||||||||
Money market funds | $ | 42,432 | $ | — | $ | — | $ | 3,216 | $ | — | $ | — | ||||||
Note receivable: | ||||||||||||||||||
Land Note | $ | — | $ | — | $ | 33,667 | $ | — | $ | — | $ | 101,000 | ||||||
Liabilities | ||||||||||||||||||
Indemnifications: | ||||||||||||||||||
Sale of SS/L | $ | — | $ | — | $ | -428 | $ | — | $ | — | $ | 10,897 | ||||||
Globalstar do Brasil S.A. | $ | — | $ | — | $ | 972 | $ | — | $ | — | $ | 1,320 | ||||||
The carrying amount of cash equivalents approximates fair value as of each reporting date because of the short maturity of those instruments. The carrying amount of the Land Note approximates fair value as of each reporting date 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. As of December 31, 2014, the indemnification liability related to the ViaSat Suit has been excluded from the fair value table as a result of the Settlement Agreement and the Allocation Agreement, which provided for fixed payments (see Note 15). The estimated liability for the indemnification of SS/L for pre-closing taxes, originally determined using fair value objective approach, is net of payments since inception. The estimated liability for indemnifications relating to Globalstar do Brasil S.A. (“GdB”), originally determined using expected value analysis, is net of payments since inception. The fair values of indemnification liabilities are not remeasured on a recurring basis. The Company does not have any non-financial assets or non-financial liabilities that are recognized or disclosed at fair value as of December 31, 2014. | ||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | ||||||||||||||||||
We review the carrying values of our equity method investments when events and circumstances warrant and consider all available evidence in evaluating when declines in fair value are other than temporary. The fair values of our investments are determined based on valuation techniques using the best information available and may include quoted market prices, market comparables and discounted cash flow projections. An impairment charge is recorded when the carrying amount of the investment exceeds its current fair value and is determined to be other than temporary. | ||||||||||||||||||
Contingencies | ||||||||||||||||||
Contingencies by their nature relate to uncertainties that require management to exercise judgment both in assessing the likelihood that a liability has been incurred as well as in estimating the amount of potential loss, if any. We accrue for costs relating to litigation, claims and other contingent matters when such liabilities become probable and reasonably estimable. Such estimates may be based on advice from third parties or on management’s judgment, as appropriate. Actual amounts paid may differ from amounts estimated, and such differences will be charged to operations in the period in which the final determination of the liability is made. | ||||||||||||||||||
Derivative Instruments | ||||||||||||||||||
Derivative instruments are recorded at fair value. Changes in the fair value of derivatives that have been designated as cash flow hedging instruments are included in “Unrealized gain on derivatives” as a component of other comprehensive loss in the accompanying consolidated statements of comprehensive income to the extent of the effectiveness of such hedging instruments and reclassified to income in the same period or periods in which the hedge transaction impacts income. Any ineffective portion of the change in fair value of the designated hedging instruments is included in the consolidated statements of operations. Changes in fair value of derivatives that are not designated as hedging instruments are included in the consolidated statements of operations (see Note 14). | ||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||
Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period. In addition, share-based payment transactions with nonemployees are measured at the fair value of the equity instrument issued. We use the Black-Scholes-Merton option-pricing model and other models as applicable to estimate the fair value of these stock-based awards. These models require us to make significant judgments regarding the assumptions used within the models, the most significant of which are the stock price volatility assumption, the expected life of the option award, the risk-free rate of return and dividends during the expected term. | ||||||||||||||||||
The Company estimates expected forfeitures of stock-based awards at the grant date and recognizes compensation cost only for those awards expected to vest. The forfeiture assumption is ultimately adjusted to the actual forfeiture rate. Therefore, changes in the forfeiture assumptions may impact the timing of the total amount of expense recognized over the vesting period. We base our estimate of the average life of a stock-based award using the midpoint between the vesting and expiration dates. Our risk-free rate of return assumption for awards is based on term-matching, nominal, monthly U.S. Treasury constant maturity rates as of the date of grant. We assume no dividends during the expected term. | ||||||||||||||||||
SS/L phantom stock appreciation rights were classified as liabilities in our consolidated balance sheets. | ||||||||||||||||||
Income Taxes | ||||||||||||||||||
Loral and its subsidiaries are subject to U.S. federal, state and local income taxation on their worldwide income and foreign taxation on certain income from sources outside the United States. Telesat is subject to tax in Canada and other jurisdictions, and Loral will provide in operating earnings any additional U.S. current and deferred tax required on distributions received or deemed to be received from Telesat. Deferred income taxes reflect the future tax effect of temporary differences between the carrying amount of assets and liabilities for financial and income tax reporting and are measured by applying anticipated statutory tax rates in effect for the year during which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent it is more likely than not that the deferred tax assets will not be realized. | ||||||||||||||||||
The tax benefit of an uncertain tax position (“UTP”) taken or expected to be taken in income tax returns is recognized only if it is “more likely than not” to be sustained on examination by the taxing authorities, based on its technical merits as of the reporting date. The tax benefit recognized in the financial statements from such a position is measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company recognizes potential accrued interest and penalties related to its liability for UTPs in income tax expense on a quarterly basis. | ||||||||||||||||||
The unrecognized tax benefit of a UTP is recognized in the period when the UTP is effectively settled. Previously recognized tax positions are derecognized in the first period in which it is no longer more likely than not that the tax position would be sustained upon examination. | ||||||||||||||||||
Earnings per Share | ||||||||||||||||||
Basic earnings per share are computed based upon the weighted average number of shares of voting and non-voting common stock outstanding during each period. Shares of non-voting common stock are in all respects identical to and treated equally with shares of voting common stock except for the absence of voting rights (other than as provided in Loral’s Amended and Restated Certificate of Incorporation which was ratified by Loral’s stockholders on May 19, 2009). Diluted earnings per share are based on the weighted average number of shares of voting and non-voting common stock outstanding during each period, adjusted for the effect of outstanding stock options and unvested or unconverted restricted stock units, restricted stock and SS/L phantom stock appreciation rights. | ||||||||||||||||||
Discontinued Operations | ||||||||||||||||||
For 2012, the operations of SS/L and gain on sale of SS/L are reported as discontinued operations in our statements of operations and cash flows. 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 and cash flows for the years ended December 31, 2014 and 2013 (see Note 3). | ||||||||||||||||||
Additional Cash Flow Information | ||||||||||||||||||
The following represents non-cash activities and supplemental information to the consolidated statements of cash flows (in thousands): | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Non-cash operating items: | ||||||||||||||||||
Equity in net loss (income) of affiliates | $ | 1,502 | $ | -38,827 | $ | -34,340 | ||||||||||||
Deferred taxes | -10,276 | 28,184 | 22,003 | |||||||||||||||
Depreciation and amortization | 42 | 18 | 62 | |||||||||||||||
Stock-based compensation | — | 417 | 1,072 | |||||||||||||||
Amortization of prior service credit and actuarial loss | 456 | 8,687 | -8,224 | |||||||||||||||
Unrealized gain on nonqualified pension plan assets | — | — | -108 | |||||||||||||||
Gain on disposition of available-for-sale securities | — | — | -202 | |||||||||||||||
Gain on foreign currency transactions and contracts | — | — | -1,316 | |||||||||||||||
Net non-cash operating items – continuing operations | $ | -8,276 | $ | -1,521 | $ | -21,053 | ||||||||||||
Non-cash operating items – discontinued operations | $ | — | $ | — | $ | -346,377 | ||||||||||||
Non-cash investing activities: | ||||||||||||||||||
Note received from land sale | $ | — | $ | — | $ | 101,000 | ||||||||||||
Supplemental information: | ||||||||||||||||||
Interest paid – continuing operations | $ | 15 | $ | 17 | $ | 106 | ||||||||||||
Interest paid – discontinued operations | $ | 227 | $ | — | $ | 1,841 | ||||||||||||
Tax (refunds) payments, net - continuing operations | $ | -10,265 | $ | -10,061 | $ | 122 | ||||||||||||
Tax payments, net of refunds – discontinued operations | $ | — | $ | 35,074 | $ | — | ||||||||||||
Recent Accounting Pronouncements | ||||||||||||||||||
In January 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-01, Income Statement – Extraordinary and Unusual Items. ASU 2015-01 simplifies income statement classification by removing the concept of extraordinary items from U.S. GAAP. Under the existing guidance, an entity is required to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is of unusual nature and occurs infrequently. This separate, net-of-tax presentation (and corresponding earnings per share impact) will no longer be allowed. The existing requirement to separately present items that are of unusual nature or occur infrequently on a pre-tax basis within income from continuing operations has been retained. The new guidance also requires similar separate presentation of items that are both unusual and infrequent. The guidance, effective for the Company on January 1, 2016, with earlier application permitted as of the beginning of the fiscal year of adoption, is not expected to have a material impact on our consolidated financial statements. | ||||||||||||||||||
In August 2014, the FASB issued a new standard – ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern - that will explicitly require management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. According to the new standard, substantial doubt about an entity’s ability to continue as a going concern exists if it is probable that the entity will be unable to meet its obligations as they become due within one year after the date the entity’s financial statements are issued. In order to determine the specific disclosures, if any, that would be required, management will need to assess if substantial doubt exists, and, if so, whether its plans will alleviate such substantial doubt. The new standard requires assessment each annual and interim period and will be effective for the Company on December 31, 2016 with earlier application permitted. | ||||||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09 that creates a new Topic 606, Revenue from Contracts with Customers, and supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Companies can elect to use either a full or modified retrospective approach when adopting this update which is effective for the Company on January 1, 2017. The Company is currently evaluating the impact of ASU 2014-09 on its consolidated financial statements. | ||||||||||||||||||
In April 2014, the FASB issued 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. | ||||||||||||||||||
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||
Dec. 31, 2014 | |||
Discontinued Operations [Abstract] | |||
Discontinued Operations | 3. Discontinued Operations | ||
As a result of the Sale (see Note 1), we reflected SS/L’s operations and gain on Sale as discontinued operations in our consolidated financial statements for the year ended December 31, 2012. | |||
For the year ended December 31, 2014, loss from discontinued operations of $24.4 million, net of income tax benefit of $14.5 million, primarily comprises an increase to our indemnification liability of $38.8 million pursuant to the ViaSat Suit Settlement Agreement and the Allocation Agreement (see Note 15). | |||
The following is a summary of SS/L’s financial information included in income from discontinued operations for the year ended December 31, 2012 (in thousands): | |||
Year Ended | |||
December 31, 2012 (1) | |||
Revenues | $ | 940,347 | |
Operating income | $ | 3,441 | |
Income before income taxes | $ | 22,167 | |
Income tax provision | -10,157 | ||
Net income | 12,010 | ||
Gain on Sale | 576,090 | ||
Income tax provision on Sale | -267,451 | ||
Gain on Sale, net of tax | 308,639 | ||
Income from discontinued operations, net of tax | $ | 320,649 | |
(1)Reference to the year ended December 31, 2012 in the table above is for the period January 1, 2012 to November 2, 2012, the date of the Sale. | |||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | |||||||||||||||
Accumulated Other Comprehensive Loss | 4. 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 | ||||||||||||||
Available-for- | Postretirement | Comprehensive | Comprehensive | ||||||||||||
Derivatives | Sale Securities | Benefits | Loss | Loss | |||||||||||
Balance at January 1, 2012 | $ | -1,306 | $ | 580 | $ | -132,695 | $ | -21,054 | $ | -154,475 | |||||
Other comprehensive income before reclassification | -415 | -120 | 1,668 | 1,313 | 2,446 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | 1,721 | -460 | 113,374 | — | 114,635 | ||||||||||
Net current-period other comprehensive income | 1,306 | -580 | 115,042 | 1,313 | 117,081 | ||||||||||
Balance at December 31, 2012 | — | — | -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 loss before reclassification | — | — | -5,147 | -3,494 | -8,641 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | 336 | — | 336 | ||||||||||
Net current-period other comprehensive loss | — | — | -4,811 | -3,494 | -8,305 | ||||||||||
Balance at December 31, 2014 | — | — | $ | -13,982 | $ | -15,239 | $ | -29,221 | |||||||
The components of other comprehensive (loss) income and related tax effects are as follows (in thousands): | |||||||||||||||
Before-Tax | Tax | Net-of-Tax | |||||||||||||
Amount | (Provision) Benefit | Amount | |||||||||||||
Year ended December 31, 2014 | |||||||||||||||
Postretirement Benefits: | |||||||||||||||
Net actuarial loss and prior service credits | $ | -8,117 | $ | 2,970 | $ | -5,147 | |||||||||
Amortization of prior service credits and net actuarial loss | 456 | (a) | -120 | 336 | |||||||||||
Postretirement benefits | -7,661 | 2,850 | -4,811 | ||||||||||||
Proportionate share of Telesat Holdco other comprehensive loss | -5,563 | 2,069 | -3,494 | ||||||||||||
Other comprehensive loss | $ | -13,224 | $ | 4,919 | $ | -8,305 | |||||||||
Year ended December 31, 2013 | |||||||||||||||
Postretirement Benefits: | |||||||||||||||
Net actuarial loss and prior service credits | $ | 5,012 | $ | -1,910 | $ | 3,102 | |||||||||
Amortization of prior service credits and net actuarial loss | 8,687 | (a) | -3,307 | 5,380 | |||||||||||
Postretirement benefits | 13,699 | -5,217 | 8,482 | ||||||||||||
Proportionate share of Telesat Holdco other comprehensive (loss) gain | 12,906 | -4,910 | 7,996 | ||||||||||||
Other comprehensive income | $ | 26,605 | $ | -10,127 | $ | 16,478 | |||||||||
Year ended December 31, 2012 | |||||||||||||||
Postretirement Benefits: | |||||||||||||||
Net actuarial loss and prior service credits | $ | 2,962 | $ | -1,294 | $ | 1,668 | |||||||||
Amortization of prior service credits and net actuarial loss | 5,120 | (a) | -2,067 | 3,053 | |||||||||||
Amount reclassifed to statement of operations upon disposition of SS/L | 123,377 | (b) | -13,056 | 110,321 | |||||||||||
Postretirement benefits | 131,459 | -16,417 | 115,042 | ||||||||||||
Proportionate share of Telesat Holdco other comprehensive (loss) income | 2,141 | -828 | 1,313 | ||||||||||||
Derivatives: | |||||||||||||||
Unrealized loss on foreign currency hedges | -693 | 278 | -415 | ||||||||||||
Less: reclassification adjustment for loss included in net income from discontinued operations | 6,502 | (b) | -2,611 | 3,891 | |||||||||||
Amount reclassified to statement of operations upon disposition of SS/L | 638 | (b) | -2,808 | -2,170 | |||||||||||
Net unrealized gain on derivatives | 6,447 | -5,141 | 1,306 | ||||||||||||
Available-for-sale securities: | |||||||||||||||
Unrealized loss on available-for-sale securities | -78 | -42 | -120 | ||||||||||||
Less: reclassification adjustment for gain included in net income | -276 | (c) | -184 | -460 | |||||||||||
Net unrealized loss on securities | -354 | -226 | -580 | ||||||||||||
Other comprehensive income | $ | 139,693 | $ | -22,612 | $ | 117,081 | |||||||||
(a) Reclassifications are included in general and administrative expenses. | |||||||||||||||
(b) Reclassifications are included in discontinued operations. | |||||||||||||||
(c) Reclassifications are included in interest and investment income. | |||||||||||||||
Receivables
Receivables | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Receivables [Abstract] | ||||||
Receivables | 5. Receivables | |||||
The receivables balance related to the Land Note (see Note 1) as of December 31, 2014 and 2013 is presented below (in thousands): | ||||||
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 December 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 | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Investments in Affiliates [Abstract] | |||||||||
Investments in Affiliates | 6. Investments in Affiliates | ||||||||
Investments in affiliates consist of (in thousands): | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Telesat Holdings Inc. | $ | 74,329 | $ | 60,157 | |||||
XTAR, LLC | 30,463 | 56,663 | |||||||
$ | 104,792 | $ | 116,820 | ||||||
Equity in net (loss) income of affiliates consists of (in thousands): | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Telesat Holdings Inc. | $ | 24,698 | $ | 47,251 | $ | 40,814 | |||
XTAR, LLC | -26,200 | -5,854 | -6,474 | ||||||
Other | — | -2,570 | — | ||||||
$ | -1,502 | $ | 38,827 | $ | 34,340 | ||||
Equity in net (loss) income of affiliates for the year ended December 31, 2012 included $4.6 million of profits previously eliminated on satellite sales from SS/L to affiliates that should have been recognized in prior periods as the satellites were depreciated. The Company has not revised previously reported amounts based on its belief that the effect of such adjustments is not material to the financial statements taken as a whole. | |||||||||
Income from discontinued operations in our consolidated statements of operations reflects the effects of the following amounts related to SS/L’s transactions with our affiliates (in thousands): | |||||||||
Year Ended | |||||||||
31-Dec-12 | |||||||||
Revenues | $ | 57,571 | |||||||
Elimination of Loral’s proportionate share of profits relating to affiliate transactions | -16,912 | ||||||||
Profits related to affiliate transactions not eliminated | 9,513 | ||||||||
Telesat | |||||||||
As of December 31, 2014 and 2013, 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 (See Note 16). | |||||||||
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 year ended December 31, 2014, Loral and Telesat settled several of the Telesat Indemnification tax disputes (see Note 16) resulting in a net cash recovery of $5.4 million which was received from Telesat in April 2014. Our investment in Telesat was reduced by $5.0 million as a result of this recovery. | |||||||||
On April 2, 2013, Telesat re-priced and amended the Telesat Credit Agreement. The amendment converted CAD 34 million from Canadian to U.S. dollars and decreased the interest rates on Telesat’s Canadian and U.S. term loan B facilities by 0.50%. The amendment also decreased the interest rate floors on the debt to 1.00% and 0.75% for the Canadian term loan B facility and U.S. term loan B facility, respectively. The permitted leverage ratio to incur first lien debt is now 4.25:1.00 which represents a change from the prior 4.00:1.00 senior secured leverage ratio in the credit agreement. | |||||||||
On May 1, 2013, Telesat redeemed its 12.5% senior subordinated notes due November 1, 2017 at a price of 106.25% of the principal amount of the senior subordinated notes. Expense of refinancing for the year ended December 31, 2013 primarily represents the premium paid and the write-off of deferred financing costs related to this note redemption. | |||||||||
On March 28, 2012, Telesat entered into a new credit agreement (the ‘‘Telesat Credit Agreement’’) with a syndicate of banks which provided for the extension of credit under the senior credit facilities in the principal amount of up to approximately $2.55 billion, increasing Telesat’s debt by $490 million from the previous credit facilities. Simultaneously with entering into the Telesat Credit Agreement, Telesat terminated and paid all outstanding amounts under its previous credit facilities and recorded an expense of refinancing of $22 million related to deferred financing costs on the previous credit facilities. | |||||||||
In connection with the closing of the Telesat Credit Agreement in March 2012, the Board of Directors of Telesat approved special cash distributions to Telesat’s shareholders of CAD 656.5 million, including a distribution of CAD 420 million to Loral. The special distributions by Telesat to its shareholders were authorized to be paid in two tranches; the first tranche was paid by Telesat on March 28, 2012, with Loral receiving CAD 375 million ($376 million), and the second tranche was paid by Telesat on July 5, 2012, with Loral receiving CAD 45 million ($44 million). | |||||||||
As of December 31, 2012, the special cash distributions received from Telesat exceeded our recorded cumulative equity in net income of Telesat and our initial investment by $7.4 million. In following the equity method of accounting, our investment balance in Telesat was reduced to zero as of December 31, 2012. For the year ended December 31, 2013, we reduced our equity in net income of Telesat by the excess special cash distribution of $7.4 million. | |||||||||
In connection with the cash distribution to Telesat’s shareholders, on March 28, 2012 the Board of Directors of Telesat authorized cash payments of CAD 48.6 million to certain employees of Telesat. | |||||||||
In March 2012, Telesat completed the refinancing of all of its issued and outstanding senior preferred shares, through issuance of a promissory note of CAD 146 million, which was equal to the outstanding liquidation value and accrued dividends on the senior preferred shares. The promissory note was redeemed in full by Telesat in October 2012 | |||||||||
On May 14, 2012, Telesat issued, through a private placement, $700 million of 6% senior notes which mature on May 15, 2017. The 6% senior notes are subordinated to Telesat’s existing and future secured indebtedness, including obligations under its senior credit facilities, and are governed under the 6% senior notes indenture. The net proceeds of the offering, along with available cash on hand, were used to fund redemption or repurchase of all of Telesat’s 11% senior notes due November 1, 2015 issued under an indenture dated as of June 30, 2008 and to pay certain financing costs and redemption premiums. | |||||||||
On October 29, 2012, Telesat issued, through a private placement, an additional $200 million of 6% senior notes due 2017. Telesat has used the net proceeds from the debt offering to fund the repayment of certain indebtedness owed to its principal shareholders, including accrued and unpaid interest thereon and for general corporate purposes. | |||||||||
The following table presents summary financial data for Telesat in accordance with U.S. GAAP, for the years ended December 31, 2014, 2013 and 2012 and as of December 31, 2014 and 2013 (in thousands): | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Statement of Operations Data: | |||||||||
Revenues | $ | 837,440 | $ | 867,914 | $ | 846,148 | |||
Operating expenses | -161,944 | -185,179 | -242,705 | ||||||
Depreciation, amortization and stock-based compensation | -231,849 | -245,764 | -249,134 | ||||||
Loss on disposition of long lived asset | -276 | -1,677 | -778 | ||||||
Operating income | 443,371 | 435,294 | 353,531 | ||||||
Interest expense | -182,395 | -210,180 | -236,398 | ||||||
Expense of refinancing | — | -19,655 | -80,104 | ||||||
Foreign exchange (loss) gain | -232,275 | -191,569 | 81,073 | ||||||
Gain (loss) on financial instruments | 70,872 | 110,034 | -25,755 | ||||||
Other income | 2,779 | 11,343 | 1,362 | ||||||
Income tax provision | -60,954 | -39,039 | -28,154 | ||||||
Net income | $ | 41,398 | $ | 96,228 | $ | 65,555 | |||
December 31, | |||||||||
2014 | 2013 | ||||||||
Balance Sheet Data: | |||||||||
Current assets | $ | 497,287 | $ | 366,814 | |||||
Total assets | 4,552,613 | 4,929,838 | |||||||
Current liabilities | 227,200 | 360,744 | |||||||
Long-term debt, including current portion | 3,102,635 | 3,215,831 | |||||||
Total liabilities | 3,921,887 | 4,280,902 | |||||||
Shareholders’ equity | 630,726 | 648,936 | |||||||
Telesat had capital expenditures of $86.6 million, $77.7 million and $170.2 million for the years ended December 31, 2014, 2013 and 2012, 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. XTAR’s revenues declined by approximately 17% from 2013 to 2014, resulting in a reassessment of our revenue expectations for future years. As a result of this reassessment, our share of the future discounted cash flows of XTAR is expected to be less than the carrying value of our investment as of December 31, 2014. We have determined that this impairment is other-than-temporary and have included a non-cash charge of $18.7 million in equity in net (loss) income of affiliates for the year ended December 31, 2014. | |||||||||
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 2021. 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 December 31, 2014 were $29.2 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 16). 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 for the years ended December 31, 2014, 2013 and 2012 and as of December 31, 2014 and 2013 (in thousands): | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Statement of Operations Data: | |||||||||
Revenues | $ | 29,171 | $ | 35,283 | $ | 32,674 | |||
Operating expenses | -31,367 | -33,763 | -34,627 | ||||||
Depreciation and amortization | -9,257 | -9,247 | -9,298 | ||||||
Operating loss | -11,453 | -7,727 | -11,251 | ||||||
Net loss | -13,835 | -10,895 | -14,651 | ||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Balance Sheet Data: | |||||||||
Current assets | $ | 4,992 | $ | 6,970 | |||||
Total assets | 53,508 | 64,745 | |||||||
Current liabilities | 28,585 | 22,443 | |||||||
Total liabilities | 59,342 | 56,872 | |||||||
Members’ equity | -5,834 | 7,873 | |||||||
Other | |||||||||
During the second quarter of 2013 the Company received net cash proceeds of $1.1 million related to the sale of its ownership interests in an affiliate with no carrying value. The gain on sale is included in equity in net (loss) income of affiliates. | |||||||||
As of December 31, 2014 and 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 | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Other Current Liabilities [Abstract] | ||||||
Other Current Liabilities | 7. Other Current Liabilities | |||||
Other current liabilities consists of (in thousands): | ||||||
December 31, | ||||||
2014 | 2013 | |||||
SS/L indemnification liability relating to ViaSat Suit settlement (see Note 15) | $ | 10,081 | $ | 6,041 | ||
Indemnification liabilities - other | — | 97 | ||||
Pension and other postretirement liabilities | 526 | 128 | ||||
Deferred tax liability | 416 | — | ||||
Accrued liabilities | 2,401 | 2,484 | ||||
$ | 13,424 | $ | 8,750 | |||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Taxes [Abstract] | |||||||||
Income Taxes | 8. Income Taxes | ||||||||
The benefit (provision) for income taxes on the loss from continuing operations before income taxes and equity in net (loss) income of affiliates consists of the following (in thousands): | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Current: | |||||||||
U.S. Federal | $ | -5,524 | $ | 25,567 | $ | 55,928 | |||
State and local | 3,573 | 976 | 59,390 | ||||||
Foreign | -220 | -200 | — | ||||||
Total current | -2,171 | 26,343 | 115,318 | ||||||
Deferred: | |||||||||
U.S. Federal | 8,531 | -26,981 | -3,325 | ||||||
State and local | 1,745 | -1,203 | -18,678 | ||||||
Total deferred | 10,276 | -28,184 | -22,003 | ||||||
Total income tax benefit (provision) | $ | 8,105 | $ | -1,841 | $ | 93,315 | |||
Our current tax (provision) benefit includes a decrease (increase) to our liability for UTPs for (in thousands): | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Decrease to unrecognized tax benefits | $ | 3,062 | $ | 1,952 | $ | 61,470 | |||
Interest expense | -1,757 | -1,429 | 27,672 | ||||||
Penalties | 1,250 | 521 | 21,175 | ||||||
Total | $ | 2,555 | $ | 1,044 | $ | 110,317 | |||
During 2014, the Company received a $10.6 million tax refund from the carryback of its 2013 federal tax loss against the taxes previously paid for 2012. The current tax provision of $2.2 million for 2014 included a reduction to the benefit recorded in 2013 for this refund after having made lower contributions to our qualified pension plan in 2014 than originally anticipated. | |||||||||
For 2014, the deferred tax benefit included the impact of the impairment charge recorded with regard to our investment in XTAR (see note 6) and the increase to our federal NOL carryforward from the enhanced extraterritorial income exclusion provided by former section 114 of the Internal Revenue Code. Without the Sale, we would not have remeasured the extraterritorial income exclusion because it would have provided only a minimal cash tax benefit. Also, the deferred tax provision for each period included the impact of our equity in net income of Telesat. | |||||||||
During 2013, the current tax benefit of $26.3 million primarily relates to the refunds received from our federal and state income tax returns filed for 2012 (primarily as a result of the enhanced extraterritorial income exclusion) and the anticipated benefit from the carryback of the Company’s 2013 federal tax loss. | |||||||||
During 2012, the statute of limitations for assessment of additional tax expired with regard to certain UTPs related to Old Loral and several of our federal and state income tax returns filed for 2007 and 2008, which resulted in an $86.7 million benefit to our income tax provision from continuing operations (a current tax benefit of $112.9 million, which included the reversal of applicable interest and penalties previously accrued, offset by a deferred tax provision of $26.2 million). | |||||||||
In addition to the benefit (provision) for income taxes on the loss from continuing operations presented above, we also recorded the following items (in thousands): | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Tax benefit (provision) on (loss) income from discontinued | $ | 14,482 | $ | 2,995 | $ | -10,157 | |||
operations | |||||||||
Tax provision on Sale of discontinued operations | — | — | -267,451 | ||||||
Excess tax benefit from stock-based compensation recorded to paid-in-capital | 1,864 | -3,128 | 16,919 | ||||||
Deferred tax benefit (provision) for adjustments in other comprehensive loss (See Note 4) | 4,919 | -10,127 | -22,612 | ||||||
The Company uses the with-and-without approach of determining when excess tax benefits from stock-based compensation have been realized. After finalizing the carryback of its 2013 U.S. federal NOL to 2012, the Company re-determined the excess tax benefit from stock-based compensation and recorded a $1.9 million increase and a $3.1 million decrease to paid-in-capital for the years ended December 31, 2014 and 2013, respectively. In addition to the deferred tax assets on the consolidated balance sheet as of December 31, 2014, the Company has $6.6 million of federal AMT credits that, when realized in the future, will be recorded as an increase to paid-in-capital. | |||||||||
The benefit (provision) for income taxes differs from the amount computed by applying the statutory U.S. Federal income tax rate on the loss from continuing operations before income taxes and equity in net (loss) income of affiliates because of the effect of the following items (in thousands): | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Tax benefit at U.S. Statutory Rate of 35% | $ | 2,811 | $ | 5,435 | $ | 9,524 | |||
Permanent adjustments which change statutory amounts: | |||||||||
State and local income taxes, net of federal income tax | 4,497 | 155 | 34,605 | ||||||
Equity in net (loss) income of affiliates | 526 | -13,589 | -12,019 | ||||||
Extraterritorial income exclusion | 3,468 | 6,177 | 11,200 | ||||||
Domestic production activity benefit | — | 2,317 | — | ||||||
Provision for unrecognized tax benefits | -833 | -332 | 46,542 | ||||||
Interest on deferred installment sale | -216 | -1,296 | — | ||||||
Nondeductible expenses | -1,359 | -762 | -603 | ||||||
Change in valuation allowance | -624 | -121 | 2,311 | ||||||
Federal research and development credit | — | 402 | 99 | ||||||
Foreign income taxes | -143 | -130 | — | ||||||
Other, net | -22 | -97 | 1,656 | ||||||
Total income tax benefit (provision) | $ | 8,105 | $ | -1,841 | $ | 93,315 | |||
The following table summarizes the activity related to our unrecognized tax benefits (in thousands): | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Balance at January 1 | $ | 80,527 | $ | 76,080 | $ | 115,293 | |||
Increases related to prior year tax positions | 2,141 | 6,755 | 453 | ||||||
Decreases related to prior year tax positions | -423 | -1,025 | -27 | ||||||
Decreases as a result of statute expirations | -3,043 | -1,283 | -61,021 | ||||||
Decreases as a result of tax settlements | -869 | — | -8,184 | ||||||
Increases related to current year tax positions | — | — | 29,566 | ||||||
Balance at December 31 | $ | 78,333 | $ | 80,527 | $ | 76,080 | |||
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 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 returns filed for 2007 and 2011 and state income tax returns filed for 2007, 2010 and 2011, potentially resulting in a $8.5 million reduction to our unrecognized tax benefits. 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. | |||||||||
Our liability for UTPs decreased from $79.7 million at December 31, 2013 to $77.1 million at December 31, 2014 and is included in long-term liabilities in the consolidated balance sheets. At December 31, 2014, we have accrued $5.8 million and $7.8 million for the potential payment of tax-related interest and penalties, respectively. If our positions are sustained by the taxing authorities, approximately $35.7 million of the tax benefits will reduce the Company’s income tax provision from continuing operations. Other than as described above, there were no significant changes to our unrecognized tax benefits during the year ended December 31, 2014, and we do not anticipate any other significant increases or decreases to our unrecognized tax benefits during the next twelve months. | |||||||||
In connection with the acquisition of our ownership interest in Telesat, Loral indemnified Telesat for Loral Skynet tax liabilities relating to periods preceding 2007 and retained the benefit of tax recoveries related to the transferred assets. The unrecognized tax benefits related to the Loral Skynet subsidiaries were transferred to Telesat subject to the Telesat Indemnification. At December 31, 2014, Loral’s asset or liability for the Telesat Indemnification based upon the probable outcome of these matters is not expected to be material (see Notes 6 and 16). | |||||||||
At December 31, 2014, we had federal NOL carryforwards of $264.8 million, state NOL carryforwards, primarily California ($77.8 million), and federal research credits of $1.2 million which expire from 2016 to 2024, as well as federal and state AMT and state research credit carryforwards of approximately $9.4 million that may be carried forward indefinitely. | |||||||||
The reorganization of the Company on the Effective Date constituted an ownership change under section 382 of the Internal Revenue Code. Accordingly, use of our tax attributes, such as NOLs and tax credits generated prior to the ownership change, are subject to an annual limitation of approximately $32.6 million, subject to increase or decrease based on certain factors. Our annual limitation was increased significantly each year through 2010, the last year allowed for the recognition of additional benefits from our “net unrealized built-in gains” (i.e., the excess of fair market value over tax basis for our assets) as of the Effective Date. | |||||||||
We assess the recoverability of our NOLs and other deferred tax assets and based upon this analysis, record a valuation allowance to the extent recoverability does not satisfy the “more likely than not” recognition criteria. We continue to maintain our valuation allowance until sufficient positive evidence exists to support full or partial reversal. As of December 31, 2014, we had a valuation allowance totaling $7.9 million against our deferred tax assets for certain tax credit and loss carryovers due to the limited carryforward periods. During 2014, the valuation allowance increased by $0.7 million, of which $0.6 million was recorded as a provision to continuing operations in our statement of operations and $0.1 million was charged to other comprehensive loss. 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. | |||||||||
During 2013, the valuation allowance increased by $0.1 million which was recorded as a provision to continuing operations in our statement of operations. | |||||||||
During 2012, the valuation allowance decreased by $3.8 million, of which $2.3 million was recorded as a benefit to continuing operations and $1.5 million was recorded as a benefit to discontinued operations in our statement of operations. | |||||||||
The significant components of the net deferred income tax assets are (in thousands): | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss and tax credit carryforwards | $ | 122,152 | $ | 132,820 | |||||
Compensation and benefits | 1,790 | 1,590 | |||||||
Indemnification liabilities | 9,114 | 5,946 | |||||||
Other, net | 4,850 | 4,909 | |||||||
Federal benefit of uncertain tax positions | 10,026 | 10,216 | |||||||
Pension costs | 6,752 | 1,154 | |||||||
Total deferred tax assets before valuation allowance | 154,684 | 156,635 | |||||||
Less valuation allowance | -7,905 | -7,228 | |||||||
Deferred tax assets net of valuation allowance | 146,779 | 149,407 | |||||||
Deferred tax liabilities: | |||||||||
Deferred installment sale | -12,376 | -37,974 | |||||||
Investments in and advances to affiliates | -22,082 | -28,848 | |||||||
Total deferred tax liabilities | -34,458 | -66,822 | |||||||
Net deferred tax assets | $ | 112,321 | $ | 82,585 | |||||
Classification on consolidated balance sheets: | |||||||||
Current deferred tax assets | $ | 654 | $ | 3,784 | |||||
Long-term deferred tax assets | 112,898 | 83,708 | |||||||
Other current liabilities | -416 | — | |||||||
Long term liabilities | -815 | -4,907 | |||||||
Net deferred tax assets | $ | 112,321 | $ | 82,585 | |||||
Long_Term_Liabilities
Long Term Liabilities | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Long Term Liabilities [Abstract] | ||||||
Long Term Liabilities | 9. Long Term Liabilities | |||||
Long term liabilities consists of (in thousands): | ||||||
December 31, | ||||||
2014 | 2013 | |||||
SS/L indemnification liability relating to ViaSat Suit settlement (see Note 15) | $ | 13,242 | $ | 4,759 | ||
Indemnification liabilities - other (see Note 15) | 972 | 1,320 | ||||
Deferred tax liability | 815 | 4,907 | ||||
Liabilities for uncertain tax positions | 77,133 | 79,688 | ||||
Other | 307 | 2,443 | ||||
$ | 92,469 | $ | 93,117 | |||
Equity
Equity | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Equity | 10. Equity |
In June 2013, the Company settled 175,000 restricted stock units (“RSUs”) granted in 2009, 2010 and 2011 to Michael B. Targoff, Vice Chairman of the Company and former Chief Executive Officer and President. In connection with this settlement, the Company issued to Mr. Targoff 91,204 shares of its voting common stock, net of 83,796 shares to satisfy withholding taxes. The grant date fair value of these RSUs was previously recorded as stock-based compensation as the RSUs vested, and the stock issuance had no effect on our consolidated financial statements. | |
Special Dividend and Special Distribution | |
On March 28, 2012, our Board of Directors declared a special dividend of $13.60 per share for an aggregate dividend of $417.6 million. The dividend was paid on April 20, 2012 to holders of record of Loral voting and non-voting common stock as of April 10, 2012. In accordance with Loral’s stock incentive plan, an equitable adjustment was made to outstanding stock-based awards to reflect the special dividend. As a result, options outstanding increased by 19,058 and RSUs increased by 6,875. This equitable adjustment had no effect on our consolidated financial statements. Mr. Targoff, who elected to receive the dividend on his RSUs at the $13.60 per share value, received 19,368 shares of Loral voting common stock, net of 18,774 shares to satisfy withholding taxes, in lieu of cash payments totaling $2.4 million on his RSU settlement date in June 2013. | |
On November 7, 2012, in connection with the receipt of the proceeds from the Sale, our Board of Directors declared a special distribution of $29.00 per share for an aggregate distribution of $892.1 million. The special distribution was paid on December 4, 2012 to holders of record of Loral voting and non-voting common stock as of November 19, 2012. In accordance with Loral’s stock incentive plan, an equitable adjustment was made to outstanding stock-based awards to reflect the special distribution. This equitable adjustment had no effect on our consolidated financial statements. Mr. Targoff, who elected to receive the special distribution related to his RSUs at the $29.00 per share value, received 41,300 shares of Loral voting common stock, net of 40,033 shares to satisfy withholding taxes, in lieu of cash payments totaling $5.1 million on his RSU settlement date in June 2013. | |
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 | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Stock-Based Compensation [Abstract] | |||||||||
Stock-Based Compensation | 11. 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 December 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 December 31, 2014, there were no SS/L Phantom SARs remaining. During the years ended December 31, 2014, 2013 and 2012, cash payments of $0.5 million, $0.5 million and $2.0 million, respectively, were made related to SS/L Phantom SARs. | |||||||||
During the years ended December 31, 2014, 2013 and 2012, the following activity occurred under the Stock Incentive Plan (in thousands): | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Total intrinsic value of options exercised | $ | — | $ | — | $ | 17,472 | |||
Total fair value of restricted stock vested | $ | — | $ | — | $ | 287 | |||
Total fair value of restricted stock units vested | $ | — | $ | 2,241 | $ | 1,403 | |||
Stock-based compensation expense consists of the following (in thousands): | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Stock-based compensation | $ | 12 | $ | 488 | $ | 1,796 | |||
As of December 31, 2014, there is no unrecognized compensation cost related to non-vested awards. | |||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Earnings Per Share [Abstract] | ||||||
Earnings Per Share | 12. 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 61.7%. The following table presents the dilutive impact of Telesat stock options on Loral’s reported income from continuing operations for the purpose of computing diluted earnings per share (in thousands): | ||||||
Year Ended December 31, | ||||||
2013 | 2012 | |||||
Income from continuing operations — basic | $ | 21,456 | $ | 100,442 | ||
Less: Adjustment for dilutive effect of Telesat stock options | -641 | -683 | ||||
Income from continuing operations — diluted | $ | 20,815 | $ | 99,759 | ||
Telesat stock options are excluded from the calculation of diluted loss per share for the year ended December 31, 2014 as the effect would be antidilutive. | ||||||
Basic earnings per share is computed based upon the weighted average number of shares of voting and non-voting common stock outstanding. The following is the computation of common shares outstanding for diluted earnings per share (in thousands): | ||||||
Year Ended December 31, | ||||||
2013 | 2012 | |||||
Common and potential common shares outstanding for | ||||||
diluted earnings per share: | ||||||
Weighted average common shares outstanding | 30,850 | 30,703 | ||||
Stock options | — | 61 | ||||
Unconverted restricted stock units | 149 | 226 | ||||
Unvested or unconverted restricted stock | — | 1 | ||||
Common shares outstanding for diluted earnings per share | 30,999 | 30,991 | ||||
For the year ended December 31, 2014, the following unconverted restricted stock units are excluded from the calculation of diluted loss per share as the effect would have been antidilutive (in thousands): | ||||||
31-Dec-14 | ||||||
Unconverted restricted stock units | 84 | |||||
Pensions_and_Other_Employee_Be
Pensions and Other Employee Benefit Plans | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Pensions and Other Employee Benefit Plans [Abstract] | ||||||||||||||||||
Pensions and Other Employee Benefit Plans | 13. Pensions and Other Employee Benefit Plans | |||||||||||||||||
Pensions | ||||||||||||||||||
We maintain a qualified defined benefit pension plan, to which members may contribute in order to receive enhanced pension benefits. Employees hired after June 30, 2006 do not participate in the defined benefit pension plan, but participate in our defined contribution savings plan with an additional Company contribution. Benefits are based primarily on members’ compensation and/or years of service. Our funding policy is to fund the qualified pension plan in accordance with the Internal Revenue Code and regulations thereon. Plan assets are generally invested in equity investments and fixed income investments. Pension plan assets are managed primarily by Russell Investment Corp. (“Russell”), which allocates the assets into funds as we direct. | ||||||||||||||||||
Other Benefits | ||||||||||||||||||
In addition to providing pension benefits, we provide certain health care and life insurance benefits for retired employees and dependents through plans sponsored by Telesat. Participants are eligible for these benefits generally when they retire from active service and meet the eligibility requirements for our pension plan. These benefits are funded primarily on a pay-as-you-go basis, with the retiree generally paying a portion of the cost through contributions, deductibles and coinsurance provisions. Effective January 1, 2015, retiree medical coverage for retirees age 65 or over and their dependents was discontinued. In January 2015, the Company made a discretionary one-time payment to retirees affected to assist them in purchasing alternate coverage. The effects on the consolidated financial statements of discontinuing this coverage and the one-time payment were not significant. | ||||||||||||||||||
Sale of SS/L | ||||||||||||||||||
As required by the Purchase Agreement, prior to the closing of the Sale on November 2, 2012, new stand-alone SS/L pension plans were established. Pension obligations related to SS/L current and former employees and plan assets determined through an initial allocation methodology were transferred from the Loral pension plans to the newly formed plans. With the closing of the Sale, the newly formed SS/L plans were transferred to SS/L. Subsequent to the closing of the Sale, our actuary performed a review to determine the amount of qualified plan assets that proportionately relate to the benefit liabilities of the SS/L pension participants in accordance with the asset priorities of Section 4044 of ERISA. This review resulted in a true-up of the initial asset transfer between plans. As a result, Loral contributed $10.7 million to its qualified pension plan, which transferred $11.9 million to SS/L’s plan. In return, MDA paid Loral $11.9 million, pursuant to the Purchase Agreement. The net effect of this true-up, which took place in April 2013, was a $1.2 million increase to Loral’s cash balance and a $1.2 million decrease to the assets of Loral’s qualified pension plan. This net change in plan assets is shown in the table below as “Transfer due to Sale” in 2013. | ||||||||||||||||||
Termination of Supplemental Executive Retirement Plan (“SERP”) | ||||||||||||||||||
In connection with the corporate office restructuring as a result of the Sale, on December 13, 2012, Loral’s Board of Directors approved termination of the SERP. The Company made lump sum payments of $17.7 million in December 2013 to the participants in the SERP in accordance with the requirements of Section 409A of the Internal Revenue Code and the regulations promulgated thereunder. The lump sum payouts were calculated based on plan provisions. | ||||||||||||||||||
Funded Status | ||||||||||||||||||
The following tables provide a reconciliation of the changes in the plans’ benefit obligations and fair value of assets for 2014 and 2013, and a statement of the funded status as of December 31, 2014 and 2013, respectively. We use a December 31 measurement date for the pension plans and other post-retirement benefits (in thousands). | ||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Reconciliation of benefit obligation: | ||||||||||||||||||
Obligation at beginning of period | $ | 40,242 | $ | 62,488 | $ | 1,517 | $ | 1,051 | ||||||||||
Service cost | 188 | 311 | 1 | 2 | ||||||||||||||
Interest cost | 1,882 | 1,843 | 71 | 65 | ||||||||||||||
Participant contributions | 21 | 28 | 58 | 51 | ||||||||||||||
Plan amendment | — | — | — | 230 | ||||||||||||||
Actuarial loss (gain) | 7,554 | -3,874 | 145 | 249 | ||||||||||||||
Benefit payments | -1,715 | -1,868 | -169 | -147 | ||||||||||||||
Curtailment and settlement | — | -18,686 | — | 16 | ||||||||||||||
Obligation at December 31, | 48,172 | 40,242 | 1,623 | 1,517 | ||||||||||||||
Reconciliation of fair value of plan assets | ||||||||||||||||||
Fair value of plan assets at beginning of period | 24,628 | 20,207 | — | — | ||||||||||||||
Actual return on plan assets | 1,464 | 3,120 | — | — | ||||||||||||||
Employer contributions | 4,078 | 3,955 | 111 | 96 | ||||||||||||||
Participant contributions | 21 | 28 | 58 | 51 | ||||||||||||||
Benefit payments | -1,715 | -1,467 | -169 | -147 | ||||||||||||||
Transfer due to Sale | — | -1,215 | — | — | ||||||||||||||
Fair value of plan assets at December 31, | 28,476 | 24,628 | — | — | ||||||||||||||
Funded status at end of period | $ | -19,696 | $ | -15,614 | $ | -1,623 | $ | -1,517 | ||||||||||
The benefit obligations for pensions and other employee benefits exceeded the fair value of plan assets by $21.3 million at December 31, 2014 (the “unfunded benefit obligations”). The unfunded benefit obligations were measured using a discount rate of 4.00% and 4.75% at December 31, 2014 and 2013, respectively. Lowering the discount rate by 0.5% would have increased the unfunded benefit obligations by approximately $4.0 million and $3.1 million as of December 31, 2014 and 2013, respectively. Market conditions and interest rates will significantly affect future assets and liabilities of Loral’s pension plan and other post-retirement benefits. | ||||||||||||||||||
The pre-tax amounts recognized in accumulated other comprehensive loss as of December 31, 2014 and 2013 consist of (in thousands): | ||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Actuarial loss | $ | -17,200 | $ | -9,636 | $ | -550 | $ | -444 | ||||||||||
Amendments-prior service (cost) credit | — | — | -80 | -89 | ||||||||||||||
$ | -17,200 | $ | -9,636 | $ | -630 | $ | -533 | |||||||||||
The amounts recognized in other comprehensive loss during the years ended December 31, 2014, 2013 and 2012 consist of (in thousands): | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Pension Benefits | Other Benefits | Pension Benefits | Other Benefits | Pension Benefits | Other Benefits | |||||||||||||
Actuarial (loss) gain during the period | $ | -7,972 | $ | -145 | $ | 5,491 | $ | -249 | $ | 498 | $ | 967 | ||||||
Prior service cost (credit) during the period | — | — | — | -230 | 1,497 | — | ||||||||||||
Amortization of actuarial loss (gain) | 408 | 39 | 5,947 | 44 | 9,773 | -279 | ||||||||||||
Amortization of prior service cost (credit) | — | 9 | — | 9 | -2,266 | -611 | ||||||||||||
Recognition due to curtailment | — | — | 2,624 | 63 | -1,497 | — | ||||||||||||
Amount reclassified to statement of operations upon disposition of SS/L | — | — | — | — | 135,618 | -12,241 | ||||||||||||
Total recognized in other comprehensive income (loss) | $ | -7,564 | $ | -97 | $ | 14,062 | $ | -363 | $ | 143,623 | $ | -12,164 | ||||||
Amounts recognized in the balance sheet consist of (in thousands): | ||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Current Liabilities | $ | — | $ | — | $ | 526 | $ | 128 | ||||||||||
Long-Term Liabilities | 19,696 | 15,614 | 1,097 | 1,389 | ||||||||||||||
$ | 19,696 | $ | 15,614 | $ | 1,623 | $ | 1,517 | |||||||||||
The estimated actuarial loss for pension benefits that will be amortized from accumulated other comprehensive income into net periodic cost over the next fiscal year is $0.8 million. | ||||||||||||||||||
The accumulated pension benefit obligation was $46.9 million and $39.2 million at December 31, 2014 and 2013, respectively. | ||||||||||||||||||
During 2014, we contributed $4.1 million to the qualified pension plan and contributed $0.1 million for other employee post-retirement benefits. During 2015, based on current estimates, our minimum required contributions to the qualified pension plan will be approximately $4.2 million. We expect to fund approximately $0.5 million for other employee post-retirement benefits during 2015. | ||||||||||||||||||
The following table provides the components of net periodic cost included in income from continuing operations for the plans for the years ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||
Service cost | $ | 188 | $ | 311 | $ | 824 | $ | 1 | $ | 2 | $ | 6 | ||||||
Interest cost | 1,882 | 1,843 | 2,523 | 71 | 65 | 45 | ||||||||||||
Expected return on plan assets | -1,882 | -1,503 | -1,435 | — | — | — | ||||||||||||
Recognition due to curtailment | — | 1,671 | -1,497 | — | 78 | — | ||||||||||||
Amortization of prior service cost (credit) | — | — | — | 9 | 9 | -24 | ||||||||||||
Amortization of net actuarial loss | 408 | 5,947 | 748 | 39 | 44 | 12 | ||||||||||||
Net periodic cost | $ | 596 | $ | 8,269 | $ | 1,163 | $ | 120 | $ | 198 | $ | 39 | ||||||
Assumptions | ||||||||||||||||||
Assumptions used to determine net periodic cost: | ||||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Discount rate | 4.75% | 4.00% | 4.75% | |||||||||||||||
Expected return on plan assets | 7.25% | 7.25% | 8.00% | |||||||||||||||
Rate of compensation increase | 4.25% | 4.25% | 4.25% | |||||||||||||||
Assumptions used to determine the benefit obligation: | ||||||||||||||||||
December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Discount rate | 4.00% | 4.75% | 4.00% | |||||||||||||||
Rate of compensation increase | 4.25% | 4.25% | 4.25% | |||||||||||||||
The expected long-term rate of return on pension plan assets is selected by taking into account the expected duration of the projected benefit obligation for the plans, the asset mix of the plans and the fact that the plan assets are actively managed to mitigate risk. Our expected long-term rate of return on plan assets for 2015 is 7.25%. | ||||||||||||||||||
As of December 31, 2014, the Company contributions remaining for other benefits are for fixed amounts. Therefore future health care cost trend rates will not affect Company costs and accumulated postretirement benefit obligation. Actuarial assumptions to determine the benefit obligation for other benefits as of December 31, 2013, used a health care cost trend rate of 8.5% decreasing gradually to 5% by 2021. | ||||||||||||||||||
Plan Assets | ||||||||||||||||||
The Company has established the pension plan as a retirement vehicle for participants and as a funding vehicle to secure promised benefits. The investment goal is to provide a total return that over time will earn a rate of return to satisfy the benefit obligations given investment risk levels, contribution amounts and expenses. The pension plan invests in compliance with the Employee Retirement Income Security Act 1974, as amended (“ERISA”), and any subsequent applicable regulations and laws. | ||||||||||||||||||
The Company has adopted an investment policy for the management and oversight of the pension plan. It sets forth the objectives for the pension plans, the strategies to achieve these objectives, procedures for monitoring and control and the delegation of responsibilities for the oversight and management of pension plan assets. | ||||||||||||||||||
The Company’s Board of Directors has delegated primary fiduciary responsibility for pension assets to an investment committee. In carrying out its responsibilities, the investment committee establishes investment policy, makes asset allocation decisions, determines asset class strategies and retains investment managers to implement asset allocation and asset class strategy decisions. It is responsible for the investment policy and may amend such policy from time to time. | ||||||||||||||||||
Pension plan assets are invested in various asset classes in what we believe is a prudent manner for the exclusive purpose of providing benefits to participants. U.S. equities are held for their long-term expected return premium over fixed income investments and inflation. Non-U.S. equities are held for their expected return premium (along with U.S. equities), as well as diversification relative to U.S. equities and other asset classes. Fixed income investments are held for diversification relative to equities. Alternative investments are held for both diversification and higher returns than those typically available in traditional asset classes. Asset allocation policy is reviewed regularly. | ||||||||||||||||||
Asset allocation policy is the principal method for achieving the pension plan’s investment objectives stated above. Asset allocation policy is reviewed regularly by the investment committee. The pension plans’ actual and targeted asset allocations are as follows: | ||||||||||||||||||
December 31, | ||||||||||||||||||
Actual Allocation | Target Allocation | |||||||||||||||||
2014 | 2013 | Target | Target Range | |||||||||||||||
Equities | 58% | 58% | 60% | 50-70% | ||||||||||||||
Fixed Income | 42% | 42% | 40% | 30-50% | ||||||||||||||
100% | 100% | 100% | 100% | |||||||||||||||
The target and target range levels can be further defined as follows: | ||||||||||||||||||
Target Allocation | ||||||||||||||||||
Target | Target Range | |||||||||||||||||
U.S. Large Cap Equities | 25% | 15-40% | ||||||||||||||||
U.S. Small Cap Equities | 5% | 0-10% | ||||||||||||||||
Global Equities | 10% | 5-20% | ||||||||||||||||
Non-U.S. Equities | 10% | 5-20% | ||||||||||||||||
Alternative Equity Investments | 10% | 0-20% | ||||||||||||||||
Total Equities | 60% | 50-70% | ||||||||||||||||
Fixed Income | 30% | 20-40% | ||||||||||||||||
Alternative Fixed Income Investments | 10% | 0-20% | ||||||||||||||||
Total Fixed Income | 40% | 30-50% | ||||||||||||||||
Total Target Allocation | 100% | 100% | ||||||||||||||||
The pension plan’s assets are actively managed using a multi-asset, multi-style, multi-manager investment approach. Portfolio risk is controlled through this diversification process and monitoring of money managers. Consideration of such factors as differing rates of return, volatility and correlation are utilized in the asset and manager selection process. Diversification reduces the impact of losses in single investments. Performance results and fund accounting are provided to the Company by Russell on a monthly basis. Periodic reviews of the portfolio are performed by the investment committee with Russell. These reviews typically consist of a market and economic review, a performance review, an allocation review and a strategy review. Performance is judged by investment type against market indexes. Allocation adjustments or fund changes may occur after these reviews. Performance is reported to the Company’s Board of Directors at quarterly board meetings. | ||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||
The values of the fund trusts are calculated using systems and procedures widely used across the investment industry. Generally, investments are valued based on information in financial publications of general circulation, statistical and valuation services, discounted cash flow methodology, records of security exchanges, appraisal by qualified persons, transactions and bona fide offers. | ||||||||||||||||||
The table below provides the fair values of the Company’s pension plan assets at December 31, 2014 and 2013, by asset category. The table also identifies the level of inputs used to determine the fair value of assets in each category. The Company’s pension plan assets are mainly held in commingled employee benefit fund trusts. | ||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||
Quoted Prices | ||||||||||||||||||
In Active Markets | Significant | Significant | ||||||||||||||||
For Identical | Observable | Unobservable | ||||||||||||||||
Assets | Inputs | Inputs | ||||||||||||||||
Asset Category | Total | Percentage | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||||
At December 31, 2014: | ||||||||||||||||||
Equity securities: | ||||||||||||||||||
U.S. large-cap(1) | $ 7,031 | 25% | $ 7,031 | |||||||||||||||
U.S. small-cap(2) | 2,004 | 7% | 2,004 | |||||||||||||||
Global (3) | 2,288 | 8% | 2,288 | |||||||||||||||
Non-U.S.(4) | 3,494 | 12% | 3,494 | |||||||||||||||
Alternative investments: | ||||||||||||||||||
Equity long/short fund(5) | 801 | 3% | $ 801 | |||||||||||||||
Real Estate Securities(6) | 598 | 2% | 598 | |||||||||||||||
Private equity fund(7) | 249 | 1% | 249 | |||||||||||||||
16,465 | 58% | — | 15,415 | 1,050 | ||||||||||||||
Fixed income securities: | ||||||||||||||||||
Commingled funds(8) | 10,273 | 36% | 10,273 | |||||||||||||||
Alternative investments: | ||||||||||||||||||
Distressed opportunity limited partnership(9) | 368 | 1% | 368 | |||||||||||||||
Multi-strategy limited partnerships(10) | 1,370 | 5% | 1,370 | |||||||||||||||
12,011 | 42% | — | 10,273 | 1,738 | ||||||||||||||
$ 28,476 | 100% | — | $ 25,688 | $ 2,788 | ||||||||||||||
At December 31, 2013: | ||||||||||||||||||
Equity securities: | ||||||||||||||||||
U.S. large-cap(1) | $ 5,965 | 24% | $ 5,965 | |||||||||||||||
U.S. small-cap(2) | 1,688 | 7% | 1,688 | |||||||||||||||
Global (3) | 1,956 | 8% | 1,956 | |||||||||||||||
Non-U.S.(4) | 3,103 | 13% | 3,103 | |||||||||||||||
Alternative investments: | ||||||||||||||||||
Equity long/short fund(5) | 842 | 3% | $ 842 | |||||||||||||||
Real Estate Securities(6) | 482 | 2% | 482 | |||||||||||||||
Private equity fund(7) | 287 | 1% | 287 | |||||||||||||||
14,323 | 58% | — | 13,194 | 1,129 | ||||||||||||||
Fixed income securities: | ||||||||||||||||||
Commingled funds(8) | 8,650 | 35% | 8,650 | |||||||||||||||
Alternative investments: | ||||||||||||||||||
Distressed opportunity limited | 364 | 2% | 364 | |||||||||||||||
partnership(9) | ||||||||||||||||||
Multi-strategy limited partnerships(10) | 1,291 | 5% | 1,291 | |||||||||||||||
10,305 | 42% | — | 8,650 | 1,655 | ||||||||||||||
$ 24,628 | 100% | — | $ 21,844 | $ 2,784 | ||||||||||||||
(1) Investments in common stocks that rank among the largest 1,000 companies in the U.S. stock market. | ||||||||||||||||||
(2) Investments in common stocks that rank among the small capitalization stocks in the U.S. stock market. | ||||||||||||||||||
(3)Investments in common stocks across the world without being limited by national borders or to specific regions. | ||||||||||||||||||
(4) Investments in common stocks of companies from developed and emerging countries outside the United States. | ||||||||||||||||||
(5) Investments primarily in long and short positions in equity securities of U.S. and non-U.S. companies. The fund has semi-annual tender offer redemption periods on June 30 and December 31 and is reported on a one month lag. | ||||||||||||||||||
(6) As of December 31, 2014, the pension plan was invested in real estate through a fund of funds which invests in global public real estate securities (REITs). | ||||||||||||||||||
(7) Fund invests in portfolios of secondary interest in established venture capital, buyout, mezzanine and special situation funds on a global basis. Fund is valued on a quarterly lag with adjustment for subsequent cash activity. | ||||||||||||||||||
(8)Investments in bonds representing many sectors of the broad bond market with both short-term and intermediate-term maturities. | ||||||||||||||||||
(9) Investments mainly in discounted debt securities, bank loans, trade claims and other debt and equity securities of financially troubled companies. This partnership has semi-annual withdrawal rights on June 30 and December 31. This fund is reported on a one month lag. | ||||||||||||||||||
-10 | Investments mainly in partnerships that have multi-strategy investment programs and do not rely on a single investment model. One partnership has quarterly liquidation rights with notice of 65 days while the second partnership has monthly liquidation rights with notice of 33 days. Both funds are reported on a one month lag. | |||||||||||||||||
The significant amount of Level 2 investments in the table results from including in this category investments in commingled funds that contain investments with values based on quoted market prices, but for which the funds are not valued on a quoted market basis. These commingled funds are valued at their net asset values (NAVs) that are calculated by the investment manager or sponsor. Equity investments in both U.S and non-U.S. stocks as well as public real estate investment trusts are primarily valued using a market approach based on the quoted market prices of identical securities. Fixed income investments are primarily valued using a market approach with inputs that include broker quotes, benchmark yields, base spreads and reported trades. | ||||||||||||||||||
Additional information pertaining to the changes in the fair value of the pension plan assets classified as Level 3 for the years ended December 31, 2014 and 2013 is presented below: | ||||||||||||||||||
Fair Value Measurements Using Significant | ||||||||||||||||||
Unobservable Inputs (Level 3) | ||||||||||||||||||
Private | Equity | Distressed | Other | Multi | Total | |||||||||||||
Equity | Long/Short | Opportunity | Limited | Strategy | ||||||||||||||
Fund | Fund | Ltd. Partnership | Partnership | Funds | ||||||||||||||
(In thousands) | ||||||||||||||||||
Balance at January 1, 2013 | $ 283 | $ 682 | $ 299 | $ 33 | $ 1,191 | $ 2,488 | ||||||||||||
Unrealized gain (loss) | 62 | 160 | 65 | -10 | 100 | 377 | ||||||||||||
Purchases | 9 | — | — | — | — | 9 | ||||||||||||
Sales | -67 | — | — | -23 | — | -90 | ||||||||||||
Balance at December 31, 2013 | 287 | 842 | 364 | — | 1,291 | 2,784 | ||||||||||||
Unrealized gain (loss) | 12 | -41 | 4 | — | 79 | 54 | ||||||||||||
Realized gain | — | — | — | 16 | — | 16 | ||||||||||||
Sales | -50 | — | — | -16 | — | -66 | ||||||||||||
Balance at December 31, 2014 | $ 249 | $ 801 | $ 368 | — | $ 1,370 | $ 2,788 | ||||||||||||
Both the Equity Long/Short Fund and the Distressed Opportunity Limited Partnership are valued at each month-end based upon quoted market prices by the investment managers. They are included in Level 3 due to their restrictions on redemption to semi-annual periods on June 30 and December 31. | ||||||||||||||||||
The Multi-Strategy Funds invest in various underlying securities. Each fund’s net asset value is calculated by the fund manager and is not publicly available. The fund managers accumulate all the underlying security values and use them in determining the funds’ net asset values. | ||||||||||||||||||
The private equity fund and limited partnership valuations are primarily based on cost/price of recent investments, earnings/performance multiples, net assets, discounted cash flows, comparable transactions and industry benchmarks. | ||||||||||||||||||
The annual audited financial statements of all funds are reviewed by the Company. | ||||||||||||||||||
Benefit Payments | ||||||||||||||||||
The following benefit payments, which reflect future services, as appropriate, are expected to be paid (in thousands): | ||||||||||||||||||
Pension | Other | |||||||||||||||||
Benefits | Benefits | |||||||||||||||||
2015 | $ | 1,698 | $ | 535 | ||||||||||||||
2016 | 1,714 | 158 | ||||||||||||||||
2017 | 1,710 | 96 | ||||||||||||||||
2018 | 1,901 | 93 | ||||||||||||||||
2019 | 1,896 | 129 | ||||||||||||||||
2020 to 2024 | 11,702 | 467 | ||||||||||||||||
Employee Savings (401k) Plan | ||||||||||||||||||
We have an employee savings (401k) plan, to which the Company provides contributions which match up to 6% of a participant’s base salary at a rate of 66⅔%. The Company also makes retirement contributions to the savings (401k) plan, which provide added retirement benefits to employees hired on or after July 1, 2006, as they are not eligible to participate in our defined benefit pension plan. Retirement contributions are provided regardless of an employee’s contribution to the savings (401k) plan. Matching contributions and retirement contributions are collectively known as Company contributions. Company contributions are made in cash and placed in each participant’s age appropriate “life cycle” fund. For the year ended December 31, 2014, Company contributions were $0.1 million and for each of the years ended December 31, 2013 and 2012, Company contributions were $0.2 million. Participants of the savings (401k) plan are able to redirect Company contributions to any available fund within the plan. Participants are also able to direct their contributions to any available fund. | ||||||||||||||||||
Financial_Instruments_Derivati
Financial Instruments, Derivative Instruments and Hedging | 12 Months Ended |
Dec. 31, 2014 | |
Financial Instruments, Derivative Instruments and Hedging [Abstract] | |
Financial Instruments, Derivative Instruments and Hedging | 14.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 December 31, 2014 and 2013. | |
Foreign Exchange Contracts | |
In March 2012, Telesat declared a special cash distribution denominated in Canadian dollars to be paid in two tranches (see Note 6). Loral entered into a foreign exchange forward contract to hedge foreign exchange risk associated with the payment of the second tranche in July 2012. This foreign exchange forward contract was not designated as a hedging instrument. Other expense for the year ended December 31, 2012 was net of a gain of $1.3 million related to this foreign exchange forward contract. | |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||
Dec. 31, 2014 | |||
Commitments and Contingencies [Abstract] | |||
Commitments and Contingencies | 15. 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. Our consolidated balance sheets include an indemnification receivable of $0.4 million as of December 31, 2014 and an indemnification liability of $0.1 million as of December 31, 2013 relating to certain indemnifiable pre-closing taxes. The final amounts for indemnification claims related to pre-closing taxes have not yet been determined. Where appropriate, we intend vigorously to contest the underlying tax assessments, but there can be no assurance that we will be successful. Although no assurance can be provided, we do not believe that these tax-related matters will have a material adverse effect on our financial position or results of operations. For a discussion of the ViaSat Suit and our indemnification obligations related thereto, see Legal Proceedings, below. | |||
In connection with the Sale, Loral has restructured its corporate functions and has reduced the number of employees at its headquarters. In 2012, Loral charged approximately $11.8 million to general and administrative expenses, mainly for severance and related costs. For the years ended December 31, 2014 and 2013, Loral paid restructuring costs of approximately $0.1 million and $3.3 million, respectively. At December 31, 2014 and 2013, the liability recorded in the consolidated balance sheet for the restructuring was $0.4 million and $0.5 million, respectively, which includes all expected future payments under the restructuring plan relating to the Sale. | |||
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 and made a payment of $3.7 million in 2013. Our consolidated balance sheets include liabilities of $1.0 million and $1.3 million as of December 31, 2014 and December 31, 2013, respectively, for indemnification liabilities relating to the sale of GdB. | |||
See Note 16— 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. | |||
Lease Arrangements | |||
We lease certain facilities and equipment under agreements expiring at various dates. Certain leases covering facilities contain renewal and/or purchase options which may be exercised by us. We have no sublease income in any of the periods presented. Rent expense, is as follows (in thousands): | |||
Rent | |||
Expense | |||
Year ended December 31, 2014 | $ | 595 | |
Year ended December 31, 2013 | $ | 876 | |
Year ended December 31, 2012 | $ | 1,062 | |
The following is a schedule of future minimum payments, by year and in the aggregate, under leases with initial or remaining terms of one year or more as of December 31, 2014 (in thousands): | |||
Operating | |||
Leases | |||
2015 | $ | 308 | |
Legal Proceedings | |||
ViaSat | |||
Under the terms of the Purchase Agreement, Loral agreed to indemnify SS/L from certain damages in the ViaSat Suit brought in 2012 by ViaSat against Loral and SS/L. In September 2014, Loral, SS/L and ViaSat entered into the Settlement Agreement pursuant to which the ViaSat Suit and an additional patent infringement and breach of contract lawsuit brought by ViaSat against SS/L in September 2013 were settled. Loral was also released by MDA, MDA Holdings and SS/L from indemnification claims relating to the ViaSat lawsuits under the Purchase Agreement. The terms of the Settlement Agreement provide, among other things, for payment by Loral and SS/L to ViaSat on a joint and several basis of $100 million, $40 million of which was paid in September 2014 in connection with entering into the Settlement Agreement, with the remaining $60 million payable with interest in ten equal quarterly installments of $6.9 million from October 15, 2014 through January 15, 2017. As of December 31, 2014, the total principal and interest accrued amount payable by Loral and SS/L to ViaSat, on a joint and several basis, was $55.2 million. | |||
Following a mediation session held on December 1, 2014, Loral and MDA entered into the Allocation Agreement, pursuant to which Loral and MDA agreed that Loral will be responsible for $45 million, and MDA and SS/L will be responsible for $55 million, of the $100 million litigation settlement with ViaSat. | |||
As of December 31, 2014, Loral has paid $20.8 million toward the ViaSat settlement. Pursuant to the Allocation Agreement, Loral paid ViaSat $2.8 million in January 2015 and is obligated to make eight additional equal quarterly payments to ViaSat through January 2017 totaling $22.5 million inclusive of interest at 3.25% per year. Our consolidated balance sheet as of December 31, 2014 includes indemnification liabilities of $23.3 million representing the present value of the January 2015 and future quarterly payments. | |||
Other Litigation | |||
We are not currently subject to any legal proceedings that, if decided adversely, could have a material adverse effect on our financial position or results of operations. In the future, however, we may become subject to legal proceedings and claims, either asserted or unasserted, that may arise in the ordinary course of business or otherwise. | |||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Related Party Transactions [Abstract] | |||||
Related Party Transactions | 16. Related Party Transactions | ||||
MHR Fund Management LLC | |||||
Mark H. Rachesky, President 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 December 31, 2014 and December 31, 2013, approximately 38.0% of the outstanding voting common stock and as of December 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 6, 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, Public Sector Pension Investment Board (“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. | |||||
Information related to satellite construction contracts between SS/L and Telesat for the period when we owned SS/L is as follows (in thousands): | |||||
Year Ended | |||||
31-Dec-12 | |||||
Revenues (included in income from discontinued operations) from Telesat satellite construction contracts | $ | 57,745 | |||
Milestone payments received from Telesat | 54,153 | ||||
On October 31, 2007, Loral and Telesat entered into a consulting services agreement (the “Consulting Agreement”). Pursuant to the terms of the Consulting Agreement, Loral provides to Telesat certain non-exclusive consulting services in relation to the business of Loral Skynet which was transferred to Telesat as part of the Telesat transaction as well as with respect to certain aspects of the satellite communications business of Telesat. The Consulting Agreement has a term of seven-years with an automatic renewal for an additional seven-year term if Loral is not then in material default under the Shareholders Agreement. Upon expiration of the initial term on October 31, 2014, the Consulting Agreement was automatically renewed for the additional seven-year term. In exchange for Loral’s services under the Consulting Agreement, Telesat pays Loral an annual fee of $5.0 million, payable quarterly in arrears on the last day of March, June, September and December of each year during the term of the Consulting Agreement. 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 years ended December 31, 2014, 2013 and 2012, are net of income of $5.0 million related to the Consulting Agreement. For the years ended December 31, 2014, 2013 and 2012, Loral received payments in cash from Telesat, net of withholding taxes, of $4.8 million, $3.5 million and $1.6 million, respectively, for consulting fees and interest and payments in promissory notes of nil, $1.3 million and $4.5 million, respectively, for consulting fees and interest. The cash payments received by Loral from Telesat for the years ended December 31, 2013 and 2012 included redemption of notes receivable from Telesat of $2.6 million and $24.1 million, respectively. Telesat was not permitted to pay these amounts in cash previously 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. We had no notes receivable from Telesat as of December 31, 2014 and December 31, 2013 related to the Consulting Agreement. | |||||
The Telesat Indemnification (as defined in Note 6 above) 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 first quarter of 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 cash recovery of $5.4 million which was received from Telesat in April 2014. As of December 31, 2014 and December 31, 2013, we had recognized a net receivable from Telesat of nil and $0.5 million, respectively, representing our estimate of the probable outcome of all tax matters under the Telesat Indemnification. The receivable as of December 31, 2013 was included in the consolidated balance sheet as other assets of $2.6 million offset by long-term liabilities of $2.1 million. There can be no assurance that future claims under the Telesat Indemnification will be ultimately settled for the net amount recorded as of December 31, 2014. | |||||
Loral’s employees and retirees participate in certain welfare plans sponsored by Telesat. Loral pays Telesat an annual administrative fee of $0.1 million and reimburses Telesat for the plan costs attributable to Loral participants. | |||||
Loral, along with Telesat 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. | |||||
Loral received special cash distributions from Telesat of $376 million on March 28, 2012 and $44 million on July 5, 2012. The distributions were the result of a Telesat refinancing and recapitalization transaction (see Note 6). | |||||
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. | |||||
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. (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. Under this arrangement, we earned approximately $1.0 million, $1.3 million and $1.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. We had a receivable from Telesat of $0.3 million as of December 31, 2014 and 2013 related to this arrangement. | |||||
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. | |||||
Other | |||||
Costs of satellite manufacturing for sales to related parties included in income from discontinued operations were $30.7 million for the year ended December 31, 2012. | |||||
In connection with an agreement reached in 1999 and an overall settlement reached in February 2005 with ChinaSat relating to the delayed delivery of ChinaSat 8, SS/L has provided ChinaSat with usage rights to two Ku-band transponders on Telesat’s Telstar 10 for the life of such transponders (subject to certain restoration rights) and to one Ku-band transponder on Telesat’s Telstar 18 for the life of the Telstar 10 satellite plus two years, or the life of such transponder (subject to certain restoration rights), whichever is shorter. Pursuant to an amendment to the agreement executed in June 2009, in lieu of rights to one of the Ku-band transponders on Telstar 10, ChinaSat has rights to an equivalent amount of Ku-band capacity on Telstar 18 (the “Alternative Capacity”). The Alternative Capacity may be utilized by ChinaSat until April 30, 2019 subject to certain conditions. Under the agreement, SS/L makes monthly payments to Telesat for the transponders allocated to ChinaSat. Effective with the termination of Telesat’s leasehold interest in Telstar 10 in July 2009, SS/L makes monthly payments with respect to capacity used by ChinaSat on Telstar 10 directly to APT, the owner of the satellite. Interest expense on this liability included in income from discontinued operations was $0.2 million for the year ended December 31, 2012. For the year ended December 31, 2012, SS/L made payments of $2.2 million to Telesat pursuant to the agreement. The liability for the future use of these transponders was retained by SS/L in connection with the Sale. | |||||
As described in Note 6, 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 December 31, 2014 and 2013 were $6.8 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 years ended December 31, 2014 and 2013, and we had a full allowance against these receivables as of December 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. During 2014, 2013 and 2012, he also reimbursed the Company for certain expenses totaling $17,000 per month commencing December 15, 2012. For each of the years ended December 31, 2014 and 2013, Mr. Targoff earned $1,440,000 (before his expense reimbursement to Loral of $204,000) and for the year ended December 31, 2012 Mr. Targoff earned $60,000 (before his expense reimbursement to Loral of $8,500). Effective January 1, 2015, Mr. Targoff reimburses the Company for net expenses of $5,250 per month. | |||||
Selected_Quarterly_Financial_I
Selected Quarterly Financial Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||
Selected Quarterly Financial Information | 17. Selected Quarterly Financial Information (unaudited, in thousands, except per share amounts) | ||||||||||||
Quarter Ended | |||||||||||||
Year ended December 31, 2014 (1) | March 31, | June 30, | September 30, | December 31, | |||||||||
Operating loss | $ | -1,340 | $ | -1,336 | $ | -1,281 | $ | -1,373 | |||||
Loss from continuing operations before income taxes and equity in net (loss) income of affiliates | -1,977 | -1,881 | -1,643 | -2,529 | |||||||||
Equity in net income (loss) of affiliates | -2,169 | 64,363 | -19,283 | -44,413 | |||||||||
Income (loss) from continuing operations (2) | -14,818 | 53,002 | -25,880 | -13,731 | |||||||||
Income (loss) from discontinued operations, net of tax (3) | -7 | -1 | -6,440 | -17,954 | |||||||||
Net income (loss) | -14,825 | 53,001 | -32,320 | -31,685 | |||||||||
Net income (loss) attributable to Loral common shareholders | -14,825 | 53,001 | -32,320 | -31,685 | |||||||||
Basic and diluted income (loss) per share | |||||||||||||
Basic income (loss) per share from continuing operations | $ | -0.48 | $ | 1.71 | $ | -0.84 | $ | -0.44 | |||||
Basic loss per share from discontinued operations, net of tax | — | — | -0.21 | -0.58 | |||||||||
Basic income (loss) per share | $ | -0.48 | $ | 1.71 | $ | -1.05 | $ | -1.02 | |||||
Diluted income (loss) per share from continuing operations | $ | -0.48 | $ | 1.67 | $ | -0.84 | $ | -0.44 | |||||
Diluted loss per share from discontinued operations, net of tax | — | — | -0.21 | -0.58 | |||||||||
Diluted income (loss) per share | $ | -0.48 | $ | 1.67 | $ | -1.05 | $ | -1.02 | |||||
Quarter Ended | |||||||||||||
Year ended December 31, 2013 (1) | March 31, | June 30, | September 30, | December 31, | |||||||||
Operating loss | $ | -3,747 | $ | -3,361 | $ | -3,452 | $ | -5,478 | |||||
Loss from continuing operations before income taxes and equity in net income (loss) of affiliates | -3,491 | -3,364 | -3,365 | -5,310 | |||||||||
Equity in net income (loss) of affiliates | -7,281 | 132 | 33,358 | 12,618 | |||||||||
Income (loss) from continuing operations (2) | -13,587 | -5,402 | 37,582 | 2,863 | |||||||||
Income (loss) from discontinued operations, net of tax | 123 | -2,488 | -1,987 | -525 | |||||||||
Net income (loss) | -13,464 | -7,890 | 35,595 | 2,338 | |||||||||
Net income (loss) attributable to Loral common shareholders | -13,464 | -7,890 | 35,595 | 2,338 | |||||||||
Basic and diluted income (loss) per share | |||||||||||||
Basic income (loss) per share from continuing operations | $ | -0.44 | $ | -0.18 | $ | 1.22 | $ | 0.09 | |||||
Basic loss per share from discontinued operations, net of tax | — | -0.08 | -0.06 | -0.02 | |||||||||
Basic income (loss) per share | $ | -0.44 | $ | -0.26 | $ | 1.16 | $ | 0.07 | |||||
Diluted income (loss) per share from continuing operations | $ | -0.44 | $ | -0.18 | $ | 1.19 | $ | 0.09 | |||||
Diluted loss per share from discontinued operations, net of tax | — | -0.08 | -0.06 | -0.02 | |||||||||
Diluted income (loss) per share | $ | -0.44 | $ | -0.26 | $ | 1.13 | $ | 0.07 | |||||
(1) The quarterly earnings per share information is computed separately for each period. Therefore, the sum of such quarterly per share amounts may differ from the total for the year. | |||||||||||||
(2)Variations in income from continuing operations among quarters in 2014 and 2013 are primarily the result of (i) the effect of changes in foreign exchange rates between the Canadian dollar and the U.S. dollar on our equity in net income (loss) of Telesat and (ii) the limitation on recording our portion of Telesat’s net income or loss due to the reduction of the carrying amount of our investment in Telesat to zero as a result of the excess of cash dividends received from Telesat in 2012. Equity in net income (loss) of affiliates for the quarter ended December 31, 2014 included an impairment charge to reduce our investment in XTAR to its fair value. Equity in net income (loss) of affiliates for the quarter ended March 31, 2013 included expense related to refinancing. | |||||||||||||
(3)Loss from discontinued operations, net of tax, for the quarters ended September 30, 2014 and December 31, 2014 includes the effects of the settlement of the ViaSat Suit and the allocation of the settlement between Loral and MDA, parent of SS/L (see Note 15). | |||||||||||||
Schedule_II_Valuation_and_Qual
Schedule II Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Schedule II Valuation and Qualifying Accounts [Abstract] | |||||||||||||
Schedule II Valuation and Qualifying Accounts | LORAL SPACE & COMMUNICATIONS INC. | ||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||
For the Year Ended December 31, 2014, 2013 and 2012 | |||||||||||||
(In thousands) | |||||||||||||
Additions | |||||||||||||
Balance at | Charged to | Charged to | Balance at | ||||||||||
Beginning | Costs and | Other | End of | ||||||||||
Description | of Period | Expenses | Accounts(1) | Period | |||||||||
Year ended 2012 | |||||||||||||
Allowance for affiliate receivables | $ | 4,037 | $ | 1,209 | $ | — | $ | 5,246 | |||||
Deferred tax valuation allowance | $ | 10,887 | $ | -3,779 | $ | — | $ | 7,108 | |||||
Year ended 2013 | |||||||||||||
Allowance for affiliate receivables | $ | 5,246 | $ | 1,446 | $ | — | $ | 6,692 | |||||
Deferred tax valuation allowance | $ | 7,108 | $ | 120 | $ | — | $ | 7,228 | |||||
Year ended 2014 | |||||||||||||
Allowance for affiliate receivables | $ | 6,692 | $ | — | $ | — | $ | 6,692 | |||||
Deferred tax valuation allowance | $ | 7,228 | $ | 624 | $ | 53 | $ | 7,905 | |||||
(1) Changes in the deferred tax valuation allowance which have been charged to other accounts have been recorded in other comprehensive loss. | |||||||||||||
Basis_of_Presentation_Policy
Basis of Presentation (Policy) | 12 Months Ended | |||||||||||||||||
Dec. 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 is recognized when there has been a loss in value of the affiliate that is other-than-temporary. | ||||||||||||||||||
Use of Estimates in Preparation of Financial Statements | Use of Estimates in Preparation of Financial Statements | |||||||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the amount of income (loss) reported for the period. Actual results could 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. | ||||||||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | |||||||||||||||||
As of December 31, 2014, the Company had $51.4 million of cash and cash equivalents. Cash and cash equivalents include liquid investments, primarily money market funds, with maturities of less than 90 days at the time of purchase and no redemption limitations. Management determines the appropriate classification of its investments at the time of purchase and at each balance sheet date. | ||||||||||||||||||
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 December 31, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||||
Cash equivalents: | ||||||||||||||||||
Money market funds | $ | 42,432 | $ | — | $ | — | $ | 3,216 | $ | — | $ | — | ||||||
Note receivable: | ||||||||||||||||||
Land Note | $ | — | $ | — | $ | 33,667 | $ | — | $ | — | $ | 101,000 | ||||||
Liabilities | ||||||||||||||||||
Indemnifications: | ||||||||||||||||||
Sale of SS/L | $ | — | $ | — | $ | -428 | $ | — | $ | — | $ | 10,897 | ||||||
Globalstar do Brasil S.A. | $ | — | $ | — | $ | 972 | $ | — | $ | — | $ | 1,320 | ||||||
The carrying amount of cash equivalents approximates fair value as of each reporting date because of the short maturity of those instruments. The carrying amount of the Land Note approximates fair value as of each reporting date 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. As of December 31, 2014, the indemnification liability related to the ViaSat Suit has been excluded from the fair value table as a result of the Settlement Agreement and the Allocation Agreement, which provided for fixed payments (see Note 15). The estimated liability for the indemnification of SS/L for pre-closing taxes, originally determined using fair value objective approach, is net of payments since inception. The estimated liability for indemnifications relating to Globalstar do Brasil S.A. (“GdB”), originally determined using expected value analysis, is net of payments since inception. The fair values of indemnification liabilities are not remeasured on a recurring basis. The Company does not have any non-financial assets or non-financial liabilities that are recognized or disclosed at fair value as of December 31, 2014. | ||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | ||||||||||||||||||
We review the carrying values of our equity method investments when events and circumstances warrant and consider all available evidence in evaluating when declines in fair value are other than temporary. The fair values of our investments are determined based on valuation techniques using the best information available and may include quoted market prices, market comparables and discounted cash flow projections. An impairment charge is recorded when the carrying amount of the investment exceeds its current fair value and is determined to be other than temporary. | ||||||||||||||||||
Contingencies | Contingencies | |||||||||||||||||
Contingencies by their nature relate to uncertainties that require management to exercise judgment both in assessing the likelihood that a liability has been incurred as well as in estimating the amount of potential loss, if any. We accrue for costs relating to litigation, claims and other contingent matters when such liabilities become probable and reasonably estimable. Such estimates may be based on advice from third parties or on management’s judgment, as appropriate. Actual amounts paid may differ from amounts estimated, and such differences will be charged to operations in the period in which the final determination of the liability is made. | ||||||||||||||||||
Derivative Instruments | Derivative Instruments | |||||||||||||||||
Derivative instruments are recorded at fair value. Changes in the fair value of derivatives that have been designated as cash flow hedging instruments are included in “Unrealized gain on derivatives” as a component of other comprehensive loss in the accompanying consolidated statements of comprehensive income to the extent of the effectiveness of such hedging instruments and reclassified to income in the same period or periods in which the hedge transaction impacts income. Any ineffective portion of the change in fair value of the designated hedging instruments is included in the consolidated statements of operations. Changes in fair value of derivatives that are not designated as hedging instruments are included in the consolidated statements of operations (see Note 14). | ||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||
Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period. In addition, share-based payment transactions with nonemployees are measured at the fair value of the equity instrument issued. We use the Black-Scholes-Merton option-pricing model and other models as applicable to estimate the fair value of these stock-based awards. These models require us to make significant judgments regarding the assumptions used within the models, the most significant of which are the stock price volatility assumption, the expected life of the option award, the risk-free rate of return and dividends during the expected term. | ||||||||||||||||||
The Company estimates expected forfeitures of stock-based awards at the grant date and recognizes compensation cost only for those awards expected to vest. The forfeiture assumption is ultimately adjusted to the actual forfeiture rate. Therefore, changes in the forfeiture assumptions may impact the timing of the total amount of expense recognized over the vesting period. We base our estimate of the average life of a stock-based award using the midpoint between the vesting and expiration dates. Our risk-free rate of return assumption for awards is based on term-matching, nominal, monthly U.S. Treasury constant maturity rates as of the date of grant. We assume no dividends during the expected term. | ||||||||||||||||||
SS/L phantom stock appreciation rights were classified as liabilities in our consolidated balance sheets. | ||||||||||||||||||
Income Taxes | Income Taxes | |||||||||||||||||
Loral and its subsidiaries are subject to U.S. federal, state and local income taxation on their worldwide income and foreign taxation on certain income from sources outside the United States. Telesat is subject to tax in Canada and other jurisdictions, and Loral will provide in operating earnings any additional U.S. current and deferred tax required on distributions received or deemed to be received from Telesat. Deferred income taxes reflect the future tax effect of temporary differences between the carrying amount of assets and liabilities for financial and income tax reporting and are measured by applying anticipated statutory tax rates in effect for the year during which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent it is more likely than not that the deferred tax assets will not be realized. | ||||||||||||||||||
The tax benefit of an uncertain tax position (“UTP”) taken or expected to be taken in income tax returns is recognized only if it is “more likely than not” to be sustained on examination by the taxing authorities, based on its technical merits as of the reporting date. The tax benefit recognized in the financial statements from such a position is measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company recognizes potential accrued interest and penalties related to its liability for UTPs in income tax expense on a quarterly basis. | ||||||||||||||||||
The unrecognized tax benefit of a UTP is recognized in the period when the UTP is effectively settled. Previously recognized tax positions are derecognized in the first period in which it is no longer more likely than not that the tax position would be sustained upon examination. | ||||||||||||||||||
Earnings Per Share | Earnings per Share | |||||||||||||||||
Basic earnings per share are computed based upon the weighted average number of shares of voting and non-voting common stock outstanding during each period. Shares of non-voting common stock are in all respects identical to and treated equally with shares of voting common stock except for the absence of voting rights (other than as provided in Loral’s Amended and Restated Certificate of Incorporation which was ratified by Loral’s stockholders on May 19, 2009). Diluted earnings per share are based on the weighted average number of shares of voting and non-voting common stock outstanding during each period, adjusted for the effect of outstanding stock options and unvested or unconverted restricted stock units, restricted stock and SS/L phantom stock appreciation rights. | ||||||||||||||||||
Discontinued Operations | Discontinued Operations | |||||||||||||||||
For 2012, the operations of SS/L and gain on sale of SS/L are reported as discontinued operations in our statements of operations and cash flows. 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 and cash flows for the years ended December 31, 2014 and 2013 (see Note 3). | ||||||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | |||||||||||||||||
In January 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-01, Income Statement – Extraordinary and Unusual Items. ASU 2015-01 simplifies income statement classification by removing the concept of extraordinary items from U.S. GAAP. Under the existing guidance, an entity is required to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is of unusual nature and occurs infrequently. This separate, net-of-tax presentation (and corresponding earnings per share impact) will no longer be allowed. The existing requirement to separately present items that are of unusual nature or occur infrequently on a pre-tax basis within income from continuing operations has been retained. The new guidance also requires similar separate presentation of items that are both unusual and infrequent. The guidance, effective for the Company on January 1, 2016, with earlier application permitted as of the beginning of the fiscal year of adoption, is not expected to have a material impact on our consolidated financial statements. | ||||||||||||||||||
In August 2014, the FASB issued a new standard – ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern - that will explicitly require management to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. According to the new standard, substantial doubt about an entity’s ability to continue as a going concern exists if it is probable that the entity will be unable to meet its obligations as they become due within one year after the date the entity’s financial statements are issued. In order to determine the specific disclosures, if any, that would be required, management will need to assess if substantial doubt exists, and, if so, whether its plans will alleviate such substantial doubt. The new standard requires assessment each annual and interim period and will be effective for the Company on December 31, 2016 with earlier application permitted. | ||||||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09 that creates a new Topic 606, Revenue from Contracts with Customers, and supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. The core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Companies can elect to use either a full or modified retrospective approach when adopting this update which is effective for the Company on January 1, 2017. The Company is currently evaluating the impact of ASU 2014-09 on its consolidated financial statements. | ||||||||||||||||||
In April 2014, the FASB issued 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. | ||||||||||||||||||
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 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 December 31, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||||
Cash equivalents: | ||||||||||||||||||
Money market funds | $ | 42,432 | $ | — | $ | — | $ | 3,216 | $ | — | $ | — | ||||||
Note receivable: | ||||||||||||||||||
Land Note | $ | — | $ | — | $ | 33,667 | $ | — | $ | — | $ | 101,000 | ||||||
Liabilities | ||||||||||||||||||
Indemnifications: | ||||||||||||||||||
Sale of SS/L | $ | — | $ | — | $ | -428 | $ | — | $ | — | $ | 10,897 | ||||||
Globalstar do Brasil S.A. | $ | — | $ | — | $ | 972 | $ | — | $ | — | $ | 1,320 | ||||||
Additional Cash Flow Information | The following represents non-cash activities and supplemental information to the consolidated statements of cash flows (in thousands): | |||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Non-cash operating items: | ||||||||||||||||||
Equity in net loss (income) of affiliates | $ | 1,502 | $ | -38,827 | $ | -34,340 | ||||||||||||
Deferred taxes | -10,276 | 28,184 | 22,003 | |||||||||||||||
Depreciation and amortization | 42 | 18 | 62 | |||||||||||||||
Stock-based compensation | — | 417 | 1,072 | |||||||||||||||
Amortization of prior service credit and actuarial loss | 456 | 8,687 | -8,224 | |||||||||||||||
Unrealized gain on nonqualified pension plan assets | — | — | -108 | |||||||||||||||
Gain on disposition of available-for-sale securities | — | — | -202 | |||||||||||||||
Gain on foreign currency transactions and contracts | — | — | -1,316 | |||||||||||||||
Net non-cash operating items – continuing operations | $ | -8,276 | $ | -1,521 | $ | -21,053 | ||||||||||||
Non-cash operating items – discontinued operations | $ | — | $ | — | $ | -346,377 | ||||||||||||
Non-cash investing activities: | ||||||||||||||||||
Note received from land sale | $ | — | $ | — | $ | 101,000 | ||||||||||||
Supplemental information: | ||||||||||||||||||
Interest paid – continuing operations | $ | 15 | $ | 17 | $ | 106 | ||||||||||||
Interest paid – discontinued operations | $ | 227 | $ | — | $ | 1,841 | ||||||||||||
Tax (refunds) payments, net - continuing operations | $ | -10,265 | $ | -10,061 | $ | 122 | ||||||||||||
Tax payments, net of refunds – discontinued operations | $ | — | $ | 35,074 | $ | — | ||||||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Discontinued Operations [Abstract] | |||
Summary of SS/L's Operating Results Which are Included in Income from Discontinued Operations | The following is a summary of SS/L’s financial information included in income from discontinued operations for the year ended December 31, 2012 (in thousands): | ||
Year Ended | |||
December 31, 2012 (1) | |||
Revenues | $ | 940,347 | |
Operating income | $ | 3,441 | |
Income before income taxes | $ | 22,167 | |
Income tax provision | -10,157 | ||
Net income | 12,010 | ||
Gain on Sale | 576,090 | ||
Income tax provision on Sale | -267,451 | ||
Gain on Sale, net of tax | 308,639 | ||
Income from discontinued operations, net of tax | $ | 320,649 | |
(1)Reference to the year ended December 31, 2012 in the table above is for the period January 1, 2012 to November 2, 2012, the date of the Sale. | |||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | ||||||||||||||
Dec. 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 | ||||||||||||||
Available-for- | Postretirement | Comprehensive | Comprehensive | ||||||||||||
Derivatives | Sale Securities | Benefits | Loss | Loss | |||||||||||
Balance at January 1, 2012 | $ | -1,306 | $ | 580 | $ | -132,695 | $ | -21,054 | $ | -154,475 | |||||
Other comprehensive income before reclassification | -415 | -120 | 1,668 | 1,313 | 2,446 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | 1,721 | -460 | 113,374 | — | 114,635 | ||||||||||
Net current-period other comprehensive income | 1,306 | -580 | 115,042 | 1,313 | 117,081 | ||||||||||
Balance at December 31, 2012 | — | — | -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 loss before reclassification | — | — | -5,147 | -3,494 | -8,641 | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | 336 | — | 336 | ||||||||||
Net current-period other comprehensive loss | — | — | -4,811 | -3,494 | -8,305 | ||||||||||
Balance at December 31, 2014 | — | — | $ | -13,982 | $ | -15,239 | $ | -29,221 | |||||||
Schedule of Other Comprehensive Income (Loss) and Related Income Tax Effects | The components of other comprehensive (loss) income and related tax effects are as follows (in thousands): | ||||||||||||||
Before-Tax | Tax | Net-of-Tax | |||||||||||||
Amount | (Provision) Benefit | Amount | |||||||||||||
Year ended December 31, 2014 | |||||||||||||||
Postretirement Benefits: | |||||||||||||||
Net actuarial loss and prior service credits | $ | -8,117 | $ | 2,970 | $ | -5,147 | |||||||||
Amortization of prior service credits and net actuarial loss | 456 | (a) | -120 | 336 | |||||||||||
Postretirement benefits | -7,661 | 2,850 | -4,811 | ||||||||||||
Proportionate share of Telesat Holdco other comprehensive loss | -5,563 | 2,069 | -3,494 | ||||||||||||
Other comprehensive loss | $ | -13,224 | $ | 4,919 | $ | -8,305 | |||||||||
Year ended December 31, 2013 | |||||||||||||||
Postretirement Benefits: | |||||||||||||||
Net actuarial loss and prior service credits | $ | 5,012 | $ | -1,910 | $ | 3,102 | |||||||||
Amortization of prior service credits and net actuarial loss | 8,687 | (a) | -3,307 | 5,380 | |||||||||||
Postretirement benefits | 13,699 | -5,217 | 8,482 | ||||||||||||
Proportionate share of Telesat Holdco other comprehensive (loss) gain | 12,906 | -4,910 | 7,996 | ||||||||||||
Other comprehensive income | $ | 26,605 | $ | -10,127 | $ | 16,478 | |||||||||
Year ended December 31, 2012 | |||||||||||||||
Postretirement Benefits: | |||||||||||||||
Net actuarial loss and prior service credits | $ | 2,962 | $ | -1,294 | $ | 1,668 | |||||||||
Amortization of prior service credits and net actuarial loss | 5,120 | (a) | -2,067 | 3,053 | |||||||||||
Amount reclassifed to statement of operations upon disposition of SS/L | 123,377 | (b) | -13,056 | 110,321 | |||||||||||
Postretirement benefits | 131,459 | -16,417 | 115,042 | ||||||||||||
Proportionate share of Telesat Holdco other comprehensive (loss) income | 2,141 | -828 | 1,313 | ||||||||||||
Derivatives: | |||||||||||||||
Unrealized loss on foreign currency hedges | -693 | 278 | -415 | ||||||||||||
Less: reclassification adjustment for loss included in net income from discontinued operations | 6,502 | (b) | -2,611 | 3,891 | |||||||||||
Amount reclassified to statement of operations upon disposition of SS/L | 638 | (b) | -2,808 | -2,170 | |||||||||||
Net unrealized gain on derivatives | 6,447 | -5,141 | 1,306 | ||||||||||||
Available-for-sale securities: | |||||||||||||||
Unrealized loss on available-for-sale securities | -78 | -42 | -120 | ||||||||||||
Less: reclassification adjustment for gain included in net income | -276 | (c) | -184 | -460 | |||||||||||
Net unrealized loss on securities | -354 | -226 | -580 | ||||||||||||
Other comprehensive income | $ | 139,693 | $ | -22,612 | $ | 117,081 | |||||||||
(a) Reclassifications are included in general and administrative expenses. | |||||||||||||||
(b) Reclassifications are included in discontinued operations. | |||||||||||||||
(c) Reclassifications are included in interest and investment income. | |||||||||||||||
Receivables_Tables
Receivables (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Receivables [Abstract] | ||||||
Receivable Balances Related to Land Note Receivable | The receivables balance related to the Land Note (see Note 1) as of December 31, 2014 and 2013 is presented below (in thousands): | |||||
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) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||
Investments in Affiliates | Investments in affiliates consist of (in thousands): | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Telesat Holdings Inc. | $ | 74,329 | $ | 60,157 | |||||
XTAR, LLC | 30,463 | 56,663 | |||||||
$ | 104,792 | $ | 116,820 | ||||||
Equity in Net (Loss) Income of Affiliates | Equity in net (loss) income of affiliates consists of (in thousands): | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Telesat Holdings Inc. | $ | 24,698 | $ | 47,251 | $ | 40,814 | |||
XTAR, LLC | -26,200 | -5,854 | -6,474 | ||||||
Other | — | -2,570 | — | ||||||
$ | -1,502 | $ | 38,827 | $ | 34,340 | ||||
Effect of Affiliate Transactions on Operating Statement | |||||||||
Income from discontinued operations in our consolidated statements of operations reflects the effects of the following amounts related to SS/L’s transactions with our affiliates (in thousands): | |||||||||
Year Ended | |||||||||
31-Dec-12 | |||||||||
Revenues | $ | 57,571 | |||||||
Elimination of Loral’s proportionate share of profits relating to affiliate transactions | -16,912 | ||||||||
Profits related to affiliate transactions not eliminated | 9,513 | ||||||||
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, for the years ended December 31, 2014, 2013 and 2012 and as of December 31, 2014 and 2013 (in thousands): | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Statement of Operations Data: | |||||||||
Revenues | $ | 837,440 | $ | 867,914 | $ | 846,148 | |||
Operating expenses | -161,944 | -185,179 | -242,705 | ||||||
Depreciation, amortization and stock-based compensation | -231,849 | -245,764 | -249,134 | ||||||
Loss on disposition of long lived asset | -276 | -1,677 | -778 | ||||||
Operating income | 443,371 | 435,294 | 353,531 | ||||||
Interest expense | -182,395 | -210,180 | -236,398 | ||||||
Expense of refinancing | — | -19,655 | -80,104 | ||||||
Foreign exchange (loss) gain | -232,275 | -191,569 | 81,073 | ||||||
Gain (loss) on financial instruments | 70,872 | 110,034 | -25,755 | ||||||
Other income | 2,779 | 11,343 | 1,362 | ||||||
Income tax provision | -60,954 | -39,039 | -28,154 | ||||||
Net income | $ | 41,398 | $ | 96,228 | $ | 65,555 | |||
December 31, | |||||||||
2014 | 2013 | ||||||||
Balance Sheet Data: | |||||||||
Current assets | $ | 497,287 | $ | 366,814 | |||||
Total assets | 4,552,613 | 4,929,838 | |||||||
Current liabilities | 227,200 | 360,744 | |||||||
Long-term debt, including current portion | 3,102,635 | 3,215,831 | |||||||
Total liabilities | 3,921,887 | 4,280,902 | |||||||
Shareholders’ equity | 630,726 | 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 for the years ended December 31, 2014, 2013 and 2012 and as of December 31, 2014 and 2013 (in thousands): | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Statement of Operations Data: | |||||||||
Revenues | $ | 29,171 | $ | 35,283 | $ | 32,674 | |||
Operating expenses | -31,367 | -33,763 | -34,627 | ||||||
Depreciation and amortization | -9,257 | -9,247 | -9,298 | ||||||
Operating loss | -11,453 | -7,727 | -11,251 | ||||||
Net loss | -13,835 | -10,895 | -14,651 | ||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Balance Sheet Data: | |||||||||
Current assets | $ | 4,992 | $ | 6,970 | |||||
Total assets | 53,508 | 64,745 | |||||||
Current liabilities | 28,585 | 22,443 | |||||||
Total liabilities | 59,342 | 56,872 | |||||||
Members’ equity | -5,834 | 7,873 | |||||||
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Other Current Liabilities [Abstract] | ||||||
Schedule of Other Current Liabilities | Other current liabilities consists of (in thousands): | |||||
December 31, | ||||||
2014 | 2013 | |||||
SS/L indemnification liability relating to ViaSat Suit settlement (see Note 15) | $ | 10,081 | $ | 6,041 | ||
Indemnification liabilities - other | — | 97 | ||||
Pension and other postretirement liabilities | 526 | 128 | ||||
Deferred tax liability | 416 | — | ||||
Accrued liabilities | 2,401 | 2,484 | ||||
$ | 13,424 | $ | 8,750 | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Taxes [Abstract] | |||||||||
Summary of Income Tax Benefit (Provision) | The benefit (provision) for income taxes on the loss from continuing operations before income taxes and equity in net (loss) income of affiliates consists of the following (in thousands): | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Current: | |||||||||
U.S. Federal | $ | -5,524 | $ | 25,567 | $ | 55,928 | |||
State and local | 3,573 | 976 | 59,390 | ||||||
Foreign | -220 | -200 | — | ||||||
Total current | -2,171 | 26,343 | 115,318 | ||||||
Deferred: | |||||||||
U.S. Federal | 8,531 | -26,981 | -3,325 | ||||||
State and local | 1,745 | -1,203 | -18,678 | ||||||
Total deferred | 10,276 | -28,184 | -22,003 | ||||||
Total income tax benefit (provision) | $ | 8,105 | $ | -1,841 | $ | 93,315 | |||
Summary of Uncertain Tax Positions Included in Income Tax Provision | Our current tax (provision) benefit includes a decrease (increase) to our liability for UTPs for (in thousands): | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Decrease to unrecognized tax benefits | $ | 3,062 | $ | 1,952 | $ | 61,470 | |||
Interest expense | -1,757 | -1,429 | 27,672 | ||||||
Penalties | 1,250 | 521 | 21,175 | ||||||
Total | $ | 2,555 | $ | 1,044 | $ | 110,317 | |||
Summary of Additional Income Tax Disclosures | In addition to the benefit (provision) for income taxes on the loss from continuing operations presented above, we also recorded the following items (in thousands): | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Tax benefit (provision) on (loss) income from discontinued | $ | 14,482 | $ | 2,995 | $ | -10,157 | |||
operations | |||||||||
Tax provision on Sale of discontinued operations | — | — | -267,451 | ||||||
Excess tax benefit from stock-based compensation recorded to paid-in-capital | 1,864 | -3,128 | 16,919 | ||||||
Deferred tax benefit (provision) for adjustments in other comprehensive loss (See Note 4) | 4,919 | -10,127 | -22,612 | ||||||
Schedule of Effective Income Tax Rate Reconciliation | The benefit (provision) for income taxes differs from the amount computed by applying the statutory U.S. Federal income tax rate on the loss from continuing operations before income taxes and equity in net (loss) income of affiliates because of the effect of the following items (in thousands): | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Tax benefit at U.S. Statutory Rate of 35% | $ | 2,811 | $ | 5,435 | $ | 9,524 | |||
Permanent adjustments which change statutory amounts: | |||||||||
State and local income taxes, net of federal income tax | 4,497 | 155 | 34,605 | ||||||
Equity in net (loss) income of affiliates | 526 | -13,589 | -12,019 | ||||||
Extraterritorial income exclusion | 3,468 | 6,177 | 11,200 | ||||||
Domestic production activity benefit | — | 2,317 | — | ||||||
Provision for unrecognized tax benefits | -833 | -332 | 46,542 | ||||||
Interest on deferred installment sale | -216 | -1,296 | — | ||||||
Nondeductible expenses | -1,359 | -762 | -603 | ||||||
Change in valuation allowance | -624 | -121 | 2,311 | ||||||
Federal research and development credit | — | 402 | 99 | ||||||
Foreign income taxes | -143 | -130 | — | ||||||
Other, net | -22 | -97 | 1,656 | ||||||
Total income tax benefit (provision) | $ | 8,105 | $ | -1,841 | $ | 93,315 | |||
Unrecognized Tax Benefits | The following table summarizes the activity related to our unrecognized tax benefits (in thousands): | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Balance at January 1 | $ | 80,527 | $ | 76,080 | $ | 115,293 | |||
Increases related to prior year tax positions | 2,141 | 6,755 | 453 | ||||||
Decreases related to prior year tax positions | -423 | -1,025 | -27 | ||||||
Decreases as a result of statute expirations | -3,043 | -1,283 | -61,021 | ||||||
Decreases as a result of tax settlements | -869 | — | -8,184 | ||||||
Increases related to current year tax positions | — | — | 29,566 | ||||||
Balance at December 31 | $ | 78,333 | $ | 80,527 | $ | 76,080 | |||
Schedule of Net Deferred Tax Assets | The significant components of the net deferred income tax assets are (in thousands): | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss and tax credit carryforwards | $ | 122,152 | $ | 132,820 | |||||
Compensation and benefits | 1,790 | 1,590 | |||||||
Indemnification liabilities | 9,114 | 5,946 | |||||||
Other, net | 4,850 | 4,909 | |||||||
Federal benefit of uncertain tax positions | 10,026 | 10,216 | |||||||
Pension costs | 6,752 | 1,154 | |||||||
Total deferred tax assets before valuation allowance | 154,684 | 156,635 | |||||||
Less valuation allowance | -7,905 | -7,228 | |||||||
Deferred tax assets net of valuation allowance | 146,779 | 149,407 | |||||||
Deferred tax liabilities: | |||||||||
Deferred installment sale | -12,376 | -37,974 | |||||||
Investments in and advances to affiliates | -22,082 | -28,848 | |||||||
Total deferred tax liabilities | -34,458 | -66,822 | |||||||
Net deferred tax assets | $ | 112,321 | $ | 82,585 | |||||
Classification on consolidated balance sheets: | |||||||||
Current deferred tax assets | $ | 654 | $ | 3,784 | |||||
Long-term deferred tax assets | 112,898 | 83,708 | |||||||
Other current liabilities | -416 | — | |||||||
Long term liabilities | -815 | -4,907 | |||||||
Net deferred tax assets | $ | 112,321 | $ | 82,585 | |||||
Long_Term_Liabilities_Tables
Long Term Liabilities (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Long Term Liabilities [Abstract] | ||||||
Schedule of Long Term Liabilities | Long term liabilities consists of (in thousands): | |||||
December 31, | ||||||
2014 | 2013 | |||||
SS/L indemnification liability relating to ViaSat Suit settlement (see Note 15) | $ | 13,242 | $ | 4,759 | ||
Indemnification liabilities - other (see Note 15) | 972 | 1,320 | ||||
Deferred tax liability | 815 | 4,907 | ||||
Liabilities for uncertain tax positions | 77,133 | 79,688 | ||||
Other | 307 | 2,443 | ||||
$ | 92,469 | $ | 93,117 | |||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Stock-Based Compensation [Abstract] | |||||||||
Schedule of Stock Incentive Plan Activity | During the years ended December 31, 2014, 2013 and 2012, the following activity occurred under the Stock Incentive Plan (in thousands): | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Total intrinsic value of options exercised | $ | — | $ | — | $ | 17,472 | |||
Total fair value of restricted stock vested | $ | — | $ | — | $ | 287 | |||
Total fair value of restricted stock units vested | $ | — | $ | 2,241 | $ | 1,403 | |||
Components of Stock-Based Compensation | Stock-based compensation expense consists of the following (in thousands): | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Stock-based compensation | $ | 12 | $ | 488 | $ | 1,796 | |||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Earnings Per Share [Abstract] | ||||||
Schedule of Dilutive Impact of Equity Method Investee Stock Options | The following table presents the dilutive impact of Telesat stock options on Loral’s reported income from continuing operations for the purpose of computing diluted earnings per share (in thousands): | |||||
Year Ended December 31, | ||||||
2013 | 2012 | |||||
Income from continuing operations — basic | $ | 21,456 | $ | 100,442 | ||
Less: Adjustment for dilutive effect of Telesat stock options | -641 | -683 | ||||
Income from continuing operations — diluted | $ | 20,815 | $ | 99,759 | ||
Telesat stock options are excluded from the calculation of diluted loss per share for the year ended December 31, 2014 as the effect would be antidilutive. | ||||||
Schedule of Weighted Average Number of Shares for Calculating Diluted Earnings per Share | The following is the computation of common shares outstanding for diluted earnings per share (in thousands): | |||||
Year Ended December 31, | ||||||
2013 | 2012 | |||||
Common and potential common shares outstanding for | ||||||
diluted earnings per share: | ||||||
Weighted average common shares outstanding | 30,850 | 30,703 | ||||
Stock options | — | 61 | ||||
Unconverted restricted stock units | 149 | 226 | ||||
Unvested or unconverted restricted stock | — | 1 | ||||
Common shares outstanding for diluted earnings per share | 30,999 | 30,991 | ||||
Summary of Unvested Restricted Stock Units Excluded from the Calculation of Diluted Loss Per Share | For the year ended December 31, 2014, the following unconverted restricted stock units are excluded from the calculation of diluted loss per share as the effect would have been antidilutive (in thousands): | |||||
31-Dec-14 | ||||||
Unconverted restricted stock units | 84 | |||||
Pensions_and_Other_Employee_Be1
Pensions and Other Employee Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Pensions and Other Employee Benefit Plans [Abstract] | ||||||||||||||||||
Reconciliation of Changes in Plans' Benefit Obligations and Fair Value of Assets | The following tables provide a reconciliation of the changes in the plans’ benefit obligations and fair value of assets for 2014 and 2013, and a statement of the funded status as of December 31, 2014 and 2013, respectively. We use a December 31 measurement date for the pension plans and other post-retirement benefits (in thousands). | |||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Reconciliation of benefit obligation: | ||||||||||||||||||
Obligation at beginning of period | $ | 40,242 | $ | 62,488 | $ | 1,517 | $ | 1,051 | ||||||||||
Service cost | 188 | 311 | 1 | 2 | ||||||||||||||
Interest cost | 1,882 | 1,843 | 71 | 65 | ||||||||||||||
Participant contributions | 21 | 28 | 58 | 51 | ||||||||||||||
Plan amendment | — | — | — | 230 | ||||||||||||||
Actuarial loss (gain) | 7,554 | -3,874 | 145 | 249 | ||||||||||||||
Benefit payments | -1,715 | -1,868 | -169 | -147 | ||||||||||||||
Curtailment and settlement | — | -18,686 | — | 16 | ||||||||||||||
Obligation at December 31, | 48,172 | 40,242 | 1,623 | 1,517 | ||||||||||||||
Reconciliation of fair value of plan assets | ||||||||||||||||||
Fair value of plan assets at beginning of period | 24,628 | 20,207 | — | — | ||||||||||||||
Actual return on plan assets | 1,464 | 3,120 | — | — | ||||||||||||||
Employer contributions | 4,078 | 3,955 | 111 | 96 | ||||||||||||||
Participant contributions | 21 | 28 | 58 | 51 | ||||||||||||||
Benefit payments | -1,715 | -1,467 | -169 | -147 | ||||||||||||||
Transfer due to Sale | — | -1,215 | — | — | ||||||||||||||
Fair value of plan assets at December 31, | 28,476 | 24,628 | — | — | ||||||||||||||
Funded status at end of period | $ | -19,696 | $ | -15,614 | $ | -1,623 | $ | -1,517 | ||||||||||
Pre-Tax Amounts Recognized in Accumulated Other Comprehensive Loss | The pre-tax amounts recognized in accumulated other comprehensive loss as of December 31, 2014 and 2013 consist of (in thousands): | |||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Actuarial loss | $ | -17,200 | $ | -9,636 | $ | -550 | $ | -444 | ||||||||||
Amendments-prior service (cost) credit | — | — | -80 | -89 | ||||||||||||||
$ | -17,200 | $ | -9,636 | $ | -630 | $ | -533 | |||||||||||
Amounts Recognized in Other Comprehensive Loss | The amounts recognized in other comprehensive loss during the years ended December 31, 2014, 2013 and 2012 consist of (in thousands): | |||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Pension Benefits | Other Benefits | Pension Benefits | Other Benefits | Pension Benefits | Other Benefits | |||||||||||||
Actuarial (loss) gain during the period | $ | -7,972 | $ | -145 | $ | 5,491 | $ | -249 | $ | 498 | $ | 967 | ||||||
Prior service cost (credit) during the period | — | — | — | -230 | 1,497 | — | ||||||||||||
Amortization of actuarial loss (gain) | 408 | 39 | 5,947 | 44 | 9,773 | -279 | ||||||||||||
Amortization of prior service cost (credit) | — | 9 | — | 9 | -2,266 | -611 | ||||||||||||
Recognition due to curtailment | — | — | 2,624 | 63 | -1,497 | — | ||||||||||||
Amount reclassified to statement of operations upon disposition of SS/L | — | — | — | — | 135,618 | -12,241 | ||||||||||||
Total recognized in other comprehensive income (loss) | $ | -7,564 | $ | -97 | $ | 14,062 | $ | -363 | $ | 143,623 | $ | -12,164 | ||||||
Amounts Recognized in the Balance Sheets | Amounts recognized in the balance sheet consist of (in thousands): | |||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Current Liabilities | $ | — | $ | — | $ | 526 | $ | 128 | ||||||||||
Long-Term Liabilities | 19,696 | 15,614 | 1,097 | 1,389 | ||||||||||||||
$ | 19,696 | $ | 15,614 | $ | 1,623 | $ | 1,517 | |||||||||||
Components of Net Periodic Cost | The following table provides the components of net periodic cost included in income from continuing operations for the plans for the years ended December 31, 2014, 2013 and 2012 (in thousands): | |||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||
Service cost | $ | 188 | $ | 311 | $ | 824 | $ | 1 | $ | 2 | $ | 6 | ||||||
Interest cost | 1,882 | 1,843 | 2,523 | 71 | 65 | 45 | ||||||||||||
Expected return on plan assets | -1,882 | -1,503 | -1,435 | — | — | — | ||||||||||||
Recognition due to curtailment | — | 1,671 | -1,497 | — | 78 | — | ||||||||||||
Amortization of prior service cost (credit) | — | — | — | 9 | 9 | -24 | ||||||||||||
Amortization of net actuarial loss | 408 | 5,947 | 748 | 39 | 44 | 12 | ||||||||||||
Net periodic cost | $ | 596 | $ | 8,269 | $ | 1,163 | $ | 120 | $ | 198 | $ | 39 | ||||||
Assumptions Used to Determine Net Periodic Cost | Assumptions used to determine net periodic cost: | |||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Discount rate | 4.75% | 4.00% | 4.75% | |||||||||||||||
Expected return on plan assets | 7.25% | 7.25% | 8.00% | |||||||||||||||
Rate of compensation increase | 4.25% | 4.25% | 4.25% | |||||||||||||||
Assumptions Used to Determine Benefit Obligation | Assumptions used to determine the benefit obligation: | |||||||||||||||||
December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Discount rate | 4.00% | 4.75% | 4.00% | |||||||||||||||
Rate of compensation increase | 4.25% | 4.25% | 4.25% | |||||||||||||||
Pension Plans' Actual and Targeted Asset Allocations | The pension plans’ actual and targeted asset allocations are as follows: | |||||||||||||||||
December 31, | ||||||||||||||||||
Actual Allocation | Target Allocation | |||||||||||||||||
2014 | 2013 | Target | Target Range | |||||||||||||||
Equities | 58% | 58% | 60% | 50-70% | ||||||||||||||
Fixed Income | 42% | 42% | 40% | 30-50% | ||||||||||||||
100% | 100% | 100% | 100% | |||||||||||||||
Target Asset Allocations and Ranges of Post Retirement Benefit Plan | The target and target range levels can be further defined as follows: | |||||||||||||||||
Target Allocation | ||||||||||||||||||
Target | Target Range | |||||||||||||||||
U.S. Large Cap Equities | 25% | 15-40% | ||||||||||||||||
U.S. Small Cap Equities | 5% | 0-10% | ||||||||||||||||
Global Equities | 10% | 5-20% | ||||||||||||||||
Non-U.S. Equities | 10% | 5-20% | ||||||||||||||||
Alternative Equity Investments | 10% | 0-20% | ||||||||||||||||
Total Equities | 60% | 50-70% | ||||||||||||||||
Fixed Income | 30% | 20-40% | ||||||||||||||||
Alternative Fixed Income Investments | 10% | 0-20% | ||||||||||||||||
Total Fixed Income | 40% | 30-50% | ||||||||||||||||
Total Target Allocation | 100% | 100% | ||||||||||||||||
Fair Values of Pension Plan Assets | The Company’s pension plan assets are mainly held in commingled employee benefit fund trusts. | |||||||||||||||||
Fair Value Measurements | ||||||||||||||||||
Quoted Prices | ||||||||||||||||||
In Active Markets | Significant | Significant | ||||||||||||||||
For Identical | Observable | Unobservable | ||||||||||||||||
Assets | Inputs | Inputs | ||||||||||||||||
Asset Category | Total | Percentage | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | ||||||||||||||||||
At December 31, 2014: | ||||||||||||||||||
Equity securities: | ||||||||||||||||||
U.S. large-cap(1) | $ 7,031 | 25% | $ 7,031 | |||||||||||||||
U.S. small-cap(2) | 2,004 | 7% | 2,004 | |||||||||||||||
Global (3) | 2,288 | 8% | 2,288 | |||||||||||||||
Non-U.S.(4) | 3,494 | 12% | 3,494 | |||||||||||||||
Alternative investments: | ||||||||||||||||||
Equity long/short fund(5) | 801 | 3% | $ 801 | |||||||||||||||
Real Estate Securities(6) | 598 | 2% | 598 | |||||||||||||||
Private equity fund(7) | 249 | 1% | 249 | |||||||||||||||
16,465 | 58% | — | 15,415 | 1,050 | ||||||||||||||
Fixed income securities: | ||||||||||||||||||
Commingled funds(8) | 10,273 | 36% | 10,273 | |||||||||||||||
Alternative investments: | ||||||||||||||||||
Distressed opportunity limited partnership(9) | 368 | 1% | 368 | |||||||||||||||
Multi-strategy limited partnerships(10) | 1,370 | 5% | 1,370 | |||||||||||||||
12,011 | 42% | — | 10,273 | 1,738 | ||||||||||||||
$ 28,476 | 100% | — | $ 25,688 | $ 2,788 | ||||||||||||||
At December 31, 2013: | ||||||||||||||||||
Equity securities: | ||||||||||||||||||
U.S. large-cap(1) | $ 5,965 | 24% | $ 5,965 | |||||||||||||||
U.S. small-cap(2) | 1,688 | 7% | 1,688 | |||||||||||||||
Global (3) | 1,956 | 8% | 1,956 | |||||||||||||||
Non-U.S.(4) | 3,103 | 13% | 3,103 | |||||||||||||||
Alternative investments: | ||||||||||||||||||
Equity long/short fund(5) | 842 | 3% | $ 842 | |||||||||||||||
Real Estate Securities(6) | 482 | 2% | 482 | |||||||||||||||
Private equity fund(7) | 287 | 1% | 287 | |||||||||||||||
14,323 | 58% | — | 13,194 | 1,129 | ||||||||||||||
Fixed income securities: | ||||||||||||||||||
Commingled funds(8) | 8,650 | 35% | 8,650 | |||||||||||||||
Alternative investments: | ||||||||||||||||||
Distressed opportunity limited | 364 | 2% | 364 | |||||||||||||||
partnership(9) | ||||||||||||||||||
Multi-strategy limited partnerships(10) | 1,291 | 5% | 1,291 | |||||||||||||||
10,305 | 42% | — | 8,650 | 1,655 | ||||||||||||||
$ 24,628 | 100% | — | $ 21,844 | $ 2,784 | ||||||||||||||
(1) Investments in common stocks that rank among the largest 1,000 companies in the U.S. stock market. | ||||||||||||||||||
(2) Investments in common stocks that rank among the small capitalization stocks in the U.S. stock market. | ||||||||||||||||||
(3)Investments in common stocks across the world without being limited by national borders or to specific regions. | ||||||||||||||||||
(4) Investments in common stocks of companies from developed and emerging countries outside the United States. | ||||||||||||||||||
(5) Investments primarily in long and short positions in equity securities of U.S. and non-U.S. companies. The fund has semi-annual tender offer redemption periods on June 30 and December 31 and is reported on a one month lag. | ||||||||||||||||||
(6) As of December 31, 2014, the pension plan was invested in real estate through a fund of funds which invests in global public real estate securities (REITs). | ||||||||||||||||||
(7) Fund invests in portfolios of secondary interest in established venture capital, buyout, mezzanine and special situation funds on a global basis. Fund is valued on a quarterly lag with adjustment for subsequent cash activity. | ||||||||||||||||||
(8)Investments in bonds representing many sectors of the broad bond market with both short-term and intermediate-term maturities. | ||||||||||||||||||
(9) Investments mainly in discounted debt securities, bank loans, trade claims and other debt and equity securities of financially troubled companies. This partnership has semi-annual withdrawal rights on June 30 and December 31. This fund is reported on a one month lag. | ||||||||||||||||||
-10 | Investments mainly in partnerships that have multi-strategy investment programs and do not rely on a single investment model. One partnership has quarterly liquidation rights with notice of 65 days while the second partnership has monthly liquidation rights with notice of 33 days. Both funds are reported on a one month lag. | |||||||||||||||||
Changes in Fair Value of Pension Plan Assets | Additional information pertaining to the changes in the fair value of the pension plan assets classified as Level 3 for the years ended December 31, 2014 and 2013 is presented below: | |||||||||||||||||
Fair Value Measurements Using Significant | ||||||||||||||||||
Unobservable Inputs (Level 3) | ||||||||||||||||||
Private | Equity | Distressed | Other | Multi | Total | |||||||||||||
Equity | Long/Short | Opportunity | Limited | Strategy | ||||||||||||||
Fund | Fund | Ltd. Partnership | Partnership | Funds | ||||||||||||||
(In thousands) | ||||||||||||||||||
Balance at January 1, 2013 | $ 283 | $ 682 | $ 299 | $ 33 | $ 1,191 | $ 2,488 | ||||||||||||
Unrealized gain (loss) | 62 | 160 | 65 | -10 | 100 | 377 | ||||||||||||
Purchases | 9 | — | — | — | — | 9 | ||||||||||||
Sales | -67 | — | — | -23 | — | -90 | ||||||||||||
Balance at December 31, 2013 | 287 | 842 | 364 | — | 1,291 | 2,784 | ||||||||||||
Unrealized gain (loss) | 12 | -41 | 4 | — | 79 | 54 | ||||||||||||
Realized gain | — | — | — | 16 | — | 16 | ||||||||||||
Sales | -50 | — | — | -16 | — | -66 | ||||||||||||
Balance at December 31, 2014 | $ 249 | $ 801 | $ 368 | — | $ 1,370 | $ 2,788 | ||||||||||||
Benefit Payments Expected to be Paid | The following benefit payments, which reflect future services, as appropriate, are expected to be paid (in thousands): | |||||||||||||||||
Pension | Other | |||||||||||||||||
Benefits | Benefits | |||||||||||||||||
2015 | $ | 1,698 | $ | 535 | ||||||||||||||
2016 | 1,714 | 158 | ||||||||||||||||
2017 | 1,710 | 96 | ||||||||||||||||
2018 | 1,901 | 93 | ||||||||||||||||
2019 | 1,896 | 129 | ||||||||||||||||
2020 to 2024 | 11,702 | 467 | ||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Commitments and Contingencies [Abstract] | |||
Operating Leases Expense Net of Sublease Income | Rent expense, is as follows (in thousands): | ||
Rent | |||
Expense | |||
Year ended December 31, 2014 | $ | 595 | |
Year ended December 31, 2013 | $ | 876 | |
Year ended December 31, 2012 | $ | 1,062 | |
Schedule of Future Minimum Payments | The following is a schedule of future minimum payments, by year and in the aggregate, under leases with initial or remaining terms of one year or more as of December 31, 2014 (in thousands): | ||
Operating | |||
Leases | |||
2015 | $ | 308 | |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Related Party Transactions [Abstract] | |||||
Schedule of Related Party Transactions | Information related to satellite construction contracts between SS/L and Telesat for the period when we owned SS/L is as follows (in thousands): | ||||
Year Ended | |||||
31-Dec-12 | |||||
Revenues (included in income from discontinued operations) from Telesat satellite construction contracts | $ | 57,745 | |||
Milestone payments received from Telesat | 54,153 | ||||
Selected_Quarterly_Financial_I1
Selected Quarterly Financial Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||
Schedule of Quarterly Financial Information | |||||||||||||
Quarter Ended | |||||||||||||
Year ended December 31, 2014 (1) | March 31, | June 30, | September 30, | December 31, | |||||||||
Operating loss | $ | -1,340 | $ | -1,336 | $ | -1,281 | $ | -1,373 | |||||
Loss from continuing operations before income taxes and equity in net (loss) income of affiliates | -1,977 | -1,881 | -1,643 | -2,529 | |||||||||
Equity in net income (loss) of affiliates | -2,169 | 64,363 | -19,283 | -44,413 | |||||||||
Income (loss) from continuing operations (2) | -14,818 | 53,002 | -25,880 | -13,731 | |||||||||
Income (loss) from discontinued operations, net of tax (3) | -7 | -1 | -6,440 | -17,954 | |||||||||
Net income (loss) | -14,825 | 53,001 | -32,320 | -31,685 | |||||||||
Net income (loss) attributable to Loral common shareholders | -14,825 | 53,001 | -32,320 | -31,685 | |||||||||
Basic and diluted income (loss) per share | |||||||||||||
Basic income (loss) per share from continuing operations | $ | -0.48 | $ | 1.71 | $ | -0.84 | $ | -0.44 | |||||
Basic loss per share from discontinued operations, net of tax | — | — | -0.21 | -0.58 | |||||||||
Basic income (loss) per share | $ | -0.48 | $ | 1.71 | $ | -1.05 | $ | -1.02 | |||||
Diluted income (loss) per share from continuing operations | $ | -0.48 | $ | 1.67 | $ | -0.84 | $ | -0.44 | |||||
Diluted loss per share from discontinued operations, net of tax | — | — | -0.21 | -0.58 | |||||||||
Diluted income (loss) per share | $ | -0.48 | $ | 1.67 | $ | -1.05 | $ | -1.02 | |||||
Quarter Ended | |||||||||||||
Year ended December 31, 2013 (1) | March 31, | June 30, | September 30, | December 31, | |||||||||
Operating loss | $ | -3,747 | $ | -3,361 | $ | -3,452 | $ | -5,478 | |||||
Loss from continuing operations before income taxes and equity in net income (loss) of affiliates | -3,491 | -3,364 | -3,365 | -5,310 | |||||||||
Equity in net income (loss) of affiliates | -7,281 | 132 | 33,358 | 12,618 | |||||||||
Income (loss) from continuing operations (2) | -13,587 | -5,402 | 37,582 | 2,863 | |||||||||
Income (loss) from discontinued operations, net of tax | 123 | -2,488 | -1,987 | -525 | |||||||||
Net income (loss) | -13,464 | -7,890 | 35,595 | 2,338 | |||||||||
Net income (loss) attributable to Loral common shareholders | -13,464 | -7,890 | 35,595 | 2,338 | |||||||||
Basic and diluted income (loss) per share | |||||||||||||
Basic income (loss) per share from continuing operations | $ | -0.44 | $ | -0.18 | $ | 1.22 | $ | 0.09 | |||||
Basic loss per share from discontinued operations, net of tax | — | -0.08 | -0.06 | -0.02 | |||||||||
Basic income (loss) per share | $ | -0.44 | $ | -0.26 | $ | 1.16 | $ | 0.07 | |||||
Diluted income (loss) per share from continuing operations | $ | -0.44 | $ | -0.18 | $ | 1.19 | $ | 0.09 | |||||
Diluted loss per share from discontinued operations, net of tax | — | -0.08 | -0.06 | -0.02 | |||||||||
Diluted income (loss) per share | $ | -0.44 | $ | -0.26 | $ | 1.13 | $ | 0.07 | |||||
(1) The quarterly earnings per share information is computed separately for each period. Therefore, the sum of such quarterly per share amounts may differ from the total for the year. | |||||||||||||
(2)Variations in income from continuing operations among quarters in 2014 and 2013 are primarily the result of (i) the effect of changes in foreign exchange rates between the Canadian dollar and the U.S. dollar on our equity in net income (loss) of Telesat and (ii) the limitation on recording our portion of Telesat’s net income or loss due to the reduction of the carrying amount of our investment in Telesat to zero as a result of the excess of cash dividends received from Telesat in 2012. Equity in net income (loss) of affiliates for the quarter ended December 31, 2014 included an impairment charge to reduce our investment in XTAR to its fair value. Equity in net income (loss) of affiliates for the quarter ended March 31, 2013 included expense related to refinancing. | |||||||||||||
(3)Loss from discontinued operations, net of tax, for the quarters ended September 30, 2014 and December 31, 2014 includes the effects of the settlement of the ViaSat Suit and the allocation of the settlement between Loral and MDA, parent of SS/L (see Note 15). | |||||||||||||
Organization_and_Principal_Bus1
Organization and Principal Business (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||
Nov. 07, 2012 | Dec. 31, 2014 | Dec. 31, 2012 | Nov. 02, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Jan. 31, 2015 | Sep. 30, 2014 | |
Organization And Principal Business [Line Items] | ||||||||
Date of incorporation | 24-Jun-05 | |||||||
Date of emergence from bankruptcy proceedings | 21-Nov-05 | |||||||
Land Note for sale of real estate of disposal group | $33,667,000 | $101,000,000 | ||||||
Receipt of principal, Land Note - discontinued operations | 67,333,000 | |||||||
Special distribution record date | 19-Nov-12 | |||||||
Special distribution declared per share | $29 | $29 | ||||||
Aggregate special distribution | 892,100,000 | |||||||
Special distribution paid date | 4-Dec-12 | |||||||
Telesat Holdco [Member] | ||||||||
Organization And Principal Business [Line Items] | ||||||||
Economic interest in affiliates | 62.80% | |||||||
Voting interest in affiliate | 32.70% | |||||||
Sale of SS/L [Member] | ||||||||
Organization And Principal Business [Line Items] | ||||||||
Disposal segment, sale date | 2-Nov-12 | |||||||
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 | |||||||
Cash proceeds from sale of SS/L | 967,900,000 | |||||||
Amortization period of Land Note | 3 years | |||||||
Land Note for sale of real estate of disposal group | 101,000,000 | |||||||
Transaction costs related to sale of SS/L | 35,200,000 | |||||||
Payment towards contingency pursuant to purchase agreement | 6,500,000 | |||||||
Land Note interest rate | 1.00% | |||||||
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% | |||||||
Receipt of principal, Land Note - discontinued operations | 67,300,000 | |||||||
Land Note proceeds collection date | 31-Mar-14 | |||||||
Land Note amount last insallment | 33,700,000 | |||||||
Land Note due date last installment | 31-Mar-15 | |||||||
ViaSat Lawsuit [Member] | Sale of SS/L [Member] | ||||||||
Organization And Principal Business [Line Items] | ||||||||
Settlement agreement date | Sep-14 | |||||||
Settlement agreement, plaintiff's name | ViaSat, Inc. | |||||||
Settlement agreement, counterparty's name | SS/L | |||||||
Lawsuit settlement amount, joint & several liability | 100,000,000 | |||||||
Lawsuit settlement initial payment, joint & several liability | 40,000,000 | |||||||
Lawsuit settlement future payments, joint & several liability | 55,200,000 | 60,000,000 | ||||||
Lawsuit settlement installment number, joint and several liability | 10 | |||||||
Lawsuit settlement installment frequency, joint & several liability | quarterly | |||||||
Lawsuit settlement installment start date, joint & several liability | 15-Oct-14 | |||||||
Lawsuit settlement installment end date, joint & several liability | 15-Jan-17 | |||||||
Lawsuit settlement amount of each installment, joint & several liability | 6,900,000 | |||||||
Obligation with joint and several liability arrangement, amount recognized | 45,000,000 | |||||||
Obligation with joint and several liability amount payable by counterparty | 55,000,000 | |||||||
Payments for legal settlements | 20,800,000 | 2,800,000 | ||||||
Lawsuit settlement installments remaining | 8 | |||||||
Lawsuit settlement, total amount outstanding installments | $22,500,000 | |||||||
Lawsuit settlement installment discount rate | 3.25% |
Basis_of_Presentation_Narrativ
Basis of Presentation (Narrative) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash and cash equivalents | 51,433 | $5,926 | $87,370 | $197,114 |
Maximum [Member] | ||||
Cash and cash equivalent maturity term | 90 days |
Basis_of_Presentation_Assets_a
Basis of Presentation (Assets and Liabilities Measured at Fair Value) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
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 | 42,432 | 3,216 |
Sale of SS/L [Member] | Level 3 [Member] | ||
Assets and Liabilities | ||
Indemnifications liabilities | -428 | 10,897 |
Globalstar do Brasil S.A. [Member] | Level 3 [Member] | ||
Assets and Liabilities | ||
Indemnifications liabilities | $972 | $1,320 |
Basis_of_Presentation_Addition
Basis of Presentation (Additional Cash Flow Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Non-cash operating items: | |||||||||||||||||||
Equity in net (income) loss of affiliates | $44,413 | [1] | $19,283 | [1] | ($64,363) | [1] | $2,169 | [1] | ($12,618) | [1] | ($33,358) | [1] | ($132) | [1] | $7,281 | [1] | $1,502 | ($38,827) | ($34,340) |
Deferred taxes | -10,276 | 28,184 | 22,003 | ||||||||||||||||
Depreciation and amortization | 42 | 18 | 62 | ||||||||||||||||
Stock-based compensation | 417 | 1,072 | |||||||||||||||||
Amortization of prior service credit and actuarial (gain) loss | 456 | 8,687 | -8,224 | ||||||||||||||||
Unrealized (gain) income on nonqualified pension plan assets | -108 | ||||||||||||||||||
Gain on disposition of available-for-sale securities | -202 | ||||||||||||||||||
(Gain) loss on foreign currency transactions and contracts | -1,316 | ||||||||||||||||||
Net non-cash operating items | -8,276 | -1,521 | -21,053 | ||||||||||||||||
Non-cash investing activities: | |||||||||||||||||||
Note received from land sale | 33,667 | 101,000 | 33,667 | 101,000 | |||||||||||||||
Continuing Operations [Member] | |||||||||||||||||||
Non-cash operating items: | |||||||||||||||||||
Net non-cash operating items | -8,276 | -1,521 | -21,053 | ||||||||||||||||
Supplemental information: | |||||||||||||||||||
Interest paid | 15 | 17 | 106 | ||||||||||||||||
Tax (refunds) payments, net | -10,265 | -10,061 | 122 | ||||||||||||||||
Discontinued Operations [Member] | |||||||||||||||||||
Non-cash operating items: | |||||||||||||||||||
Net non-cash operating items | -346,377 | ||||||||||||||||||
Supplemental information: | |||||||||||||||||||
Interest paid | 227 | 1,841 | |||||||||||||||||
Tax (refunds) payments, net | 35,074 | ||||||||||||||||||
Land Note [Member] | |||||||||||||||||||
Non-cash investing activities: | |||||||||||||||||||
Note received from land sale | $101,000 | ||||||||||||||||||
[1] | The quarterly earnings per share information is computed separately for each period. Therefore, the sum of such quarterly per share amounts may differ from the total for the year. |
Discontinued_Operations_Narrat
Discontinued Operations (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||
Income (loss) from discontinued operations, net of tax | ($17,954,000) | [1],[2] | ($6,440,000) | [1],[2] | ($1,000) | [1],[2] | ($7,000) | [1],[2] | ($525,000) | [1] | ($1,987,000) | [1] | ($2,488,000) | [1] | $123,000 | [1] | ($24,402,000) | ($4,877,000) | $320,649,000 | [3] |
Income tax benefit (provision) | 14,482,000 | 2,995,000 | -10,157,000 | [3] | ||||||||||||||||
ViaSat Lawsuit [Member] | Sale of SS/L [Member] | ||||||||||||||||||||
Loss contingency, loss in period | $38,800,000 | |||||||||||||||||||
[1] | The quarterly earnings per share information is computed separately for each period. Therefore, the sum of such quarterly per share amounts may differ from the total for the year. | |||||||||||||||||||
[2] | Loss from discontinued operations, net of tax, for the quarters ended September 30, 2014 and December 31, 2014 includes the effects of the settlement of the ViaSat Suit and the allocation of the settlement between Loral and MDA, parent of SS/L (see Note 15). | |||||||||||||||||||
[3] | Reference to the year ended December 31, 2012 in the table above is for the period January 1, 2012 to November 2, 2012, the date of the Sale. |
Discontinued_Operations_Summar
Discontinued Operations (Summary of SS/L's Operating Results Included in Income from Discontinued Operations) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||
Discontinued Operations [Abstract] | ||||||||||||||||||||
Revenues | $940,347 | [1] | ||||||||||||||||||
Operating income | 3,441 | [1] | ||||||||||||||||||
Income before income taxes | 22,167 | [1] | ||||||||||||||||||
Income tax benefit (provision) | 14,482 | 2,995 | -10,157 | [1] | ||||||||||||||||
Net income | 12,010 | [1] | ||||||||||||||||||
Gain on Sale | 576,090 | [1] | ||||||||||||||||||
Income tax provision on Sale | -267,451 | [1] | ||||||||||||||||||
Gain (loss) on Sale, net of tax | 308,639 | [1] | ||||||||||||||||||
Income (loss) from discontinued operations, net of tax | ($17,954) | [2],[3] | ($6,440) | [2],[3] | ($1) | [2],[3] | ($7) | [2],[3] | ($525) | [2] | ($1,987) | [2] | ($2,488) | [2] | $123 | [2] | ($24,402) | ($4,877) | $320,649 | [1] |
[1] | Reference to the year ended December 31, 2012 in the table above is for the period January 1, 2012 to November 2, 2012, the date of the Sale. | |||||||||||||||||||
[2] | The quarterly earnings per share information is computed separately for each period. Therefore, the sum of such quarterly per share amounts may differ from the total for the year. | |||||||||||||||||||
[3] | Loss from discontinued operations, net of tax, for the quarters ended September 30, 2014 and December 31, 2014 includes the effects of the settlement of the ViaSat Suit and the allocation of the settlement between Loral and MDA, parent of SS/L (see Note 15). |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Components of Accumulated Other Comprehensive Loss) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated other comprehensive income (loss), beginning balance | ($20,916) | ||
Net current-period other comprehensive income (loss) | -8,305 | 16,478 | 117,081 |
Accumulated other comprehensive income (loss), ending balance | -29,221 | -20,916 | |
Derivatives [Member] | |||
Accumulated other comprehensive income (loss), beginning balance | -1,306 | ||
Other comprehensive income (loss) before reclassification | -415 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 1,721 | ||
Net current-period other comprehensive income (loss) | 1,306 | ||
Available-for-sale Securities [Member] | |||
Accumulated other comprehensive income (loss), beginning balance | 580 | ||
Other comprehensive income (loss) before reclassification | -120 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | -460 | ||
Net current-period other comprehensive income (loss) | -580 | ||
Postretirement Benefits [Member] | |||
Accumulated other comprehensive income (loss), beginning balance | -9,171 | -17,653 | -132,695 |
Other comprehensive income (loss) before reclassification | -5,147 | 3,102 | 1,668 |
Amounts reclassified from accumulated other comprehensive income (loss) | 336 | 5,380 | 113,374 |
Net current-period other comprehensive income (loss) | -4,811 | 8,482 | 115,042 |
Accumulated other comprehensive income (loss), ending balance | -13,982 | -9,171 | -17,653 |
Proportionate Share of Telesat Other Comprehensive Loss [Member] | |||
Accumulated other comprehensive income (loss), beginning balance | -11,745 | -19,741 | -21,054 |
Other comprehensive income (loss) before reclassification | -3,494 | 7,996 | 1,313 |
Net current-period other comprehensive income (loss) | -3,494 | 7,996 | 1,313 |
Accumulated other comprehensive income (loss), ending balance | -15,239 | -11,745 | -19,741 |
Accumulated Other Comprehensive Loss [Member] | |||
Accumulated other comprehensive income (loss), beginning balance | -20,916 | -37,394 | -154,475 |
Other comprehensive income (loss) before reclassification | -8,641 | 11,098 | 2,446 |
Amounts reclassified from accumulated other comprehensive income (loss) | 336 | 5,380 | 114,635 |
Net current-period other comprehensive income (loss) | -8,305 | 16,478 | 117,081 |
Accumulated other comprehensive income (loss), ending balance | ($29,221) | ($20,916) | ($37,394) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (Components of Other Comprehensive Income and Related Tax Effects) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Accumulated Other Comprehensive Loss [Abstract] | ||||||
Net actuarial gain (loss) and prior service credits, Before-Tax Amount | ($8,117) | $5,012 | $2,962 | |||
Amortization of prior service credits and net actuarial loss, Before-Tax Amount | 456 | [1] | 8,687 | [1] | 5,120 | [1] |
Amounts reclassified to statements of operations upon disposition of SS/L, Before-Tax Amount | 123,377 | [2] | ||||
Postretirement benefits, Before-Tax Amount | -7,661 | 13,699 | 131,459 | |||
Proportionate share of Telesat Holdco other comprehensive income (loss), Before-Tax Amount | -5,563 | 12,906 | 2,141 | |||
Unrealized gain (loss) on foreign currency hedges, Before-Tax Amount | -693 | |||||
Less: reclassification adjustment for (income) loss included in net income (loss) from discontinued operations, Before-Tax Amount | 6,502 | [2] | ||||
Amounts reclassified to statements of operations upon disposition of SS/L, Before-Tax Amount | 638 | [2] | ||||
Net unrealized gain (loss) on derivatives, Before-Tax Amount | 6,447 | |||||
Unrealized gain (loss) on available-for-sale securities, Before-Tax Amount | -78 | |||||
Less: reclassification adjustment for (gain) loss included in net income (loss), Before-Tax Amount | -276 | [3] | ||||
Net unrealized gain (loss) on securities, Before-Tax Amount | -354 | |||||
Other comprehensive income (loss), Before-Tax Amount | -13,224 | 26,605 | 139,693 | |||
Net actuarial gain (loss) and prior service credits, Tax (Provision) Benefit | 2,970 | -1,910 | -1,294 | |||
Amortization of prior service credits and net actuarial loss, Tax (Provision) Benefit | -120 | -3,307 | -2,067 | |||
Amounts reclassified to statements of operations upon disposition of SS/L, Tax (Provision) Benefit | -13,056 | |||||
Post retirement benefits, Tax (Provision) Benefit | 2,850 | -5,217 | -16,417 | |||
Proportionate share of Telesat Holdco other comprehensive income (loss), Tax (Provision) Benefit | 2,069 | -4,910 | -828 | |||
Unrealized gain (loss) on foreign currency hedges, Tax (Provision) Benefit | 278 | |||||
Less: reclassification adjustment for (gain) loss included in net income from discontinued operations, Tax (Provision) Benefit | -2,611 | |||||
Amounts reclassified to statements of operations upon disposition of SS/L, Tax (Provision) Benefit | -2,808 | |||||
Net unrealized gain (loss) on derivatives, Tax (Provision) Benefit | -5,141 | |||||
Unrealized gain (loss) on available-for-sale securities, Tax (Provision) Benefit | -42 | |||||
Less: reclassification adjustment for gain included in net income, Tax (Provision) Benefit | -184 | |||||
Net unrealized gain (loss) on securities, Tax (Provision) Benefit | -226 | |||||
Other comprehensive income, Tax (Provision) Benefit | 4,919 | -10,127 | -22,612 | |||
Net actuarial gain (loss) and prior service credits, Net-of-Tax Amount | -5,147 | 3,102 | 1,668 | |||
Amortization of prior service credits and net actuarial gain (loss), Net-of-Tax Amount | 336 | 5,380 | 3,053 | |||
Amounts reclassified to statements of operations upon disposition of SS/L, Net-of-Tax Amount | 110,321 | |||||
Postretirement benefits, Net- of-Tax | -4,811 | 8,482 | 115,042 | |||
Proportionate share of Telesat Holdco other comprehensive income (loss), Net-of-Tax Amount | -3,494 | 7,996 | 1,313 | |||
Unrealized gaiin (loss) on foreign currency hedges, Net-of-Tax Amount | -415 | |||||
Less: reclassification adjustment for (gain) loss included in net income (loss) from discontinued operations, Net-of-Tax Amount | 3,891 | |||||
Amounts reclassified to statements of operations upon disposition of SS/L, Net-of-Tax Amount | -2,170 | |||||
Net unrealized gain (loss) on derivatives, Net-of-Tax Amount | 1,306 | |||||
Unrealized gain (loss) on available-for-sale securities, Net-of-Tax Amount | -120 | |||||
Less: reclassification adjustment for gain included in net income, Net-of-Tax Amount | -460 | |||||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net-of-Tax, Total | -580 | |||||
Other comprehensive income (loss), Net-of-Tax Amount | ($8,305) | $16,478 | $117,081 | |||
[1] | Reclassifications are included in general and administrative expenses. | |||||
[2] | Reclassifications are included in discontinued operations. | |||||
[3] | Reclassifications are included in interest and investment income. |
Receivables_Narrative_Details
Receivables (Narrative) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | 33,667 | $67,333 |
Land Note [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest rate on Land Note | 1.00% | |
Land Note, interest payment terms | quarterly | |
Land Note [Member] | Maturity Date December 31, 2015 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes receivable | 33,667 |
Receivables_Receivable_Balance
Receivables (Receivable Balances Related to Land Note Receivable) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
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 | ||
Land Note [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Land Note receivable | $101,000 |
Investments_in_Affiliates_Narr
Investments in Affiliates (Narrative) (Details) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 05, 2012 | Jul. 05, 2012 | Mar. 28, 2012 | Mar. 28, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2009 | Dec. 31, 2014 | Dec. 31, 2009 | Dec. 31, 2008 | Dec. 31, 2013 | 14-May-12 | Dec. 31, 2014 | Oct. 29, 2012 | 14-May-12 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | |
USD ($) | USD ($) | USD ($) | Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | Telesat Holdings Inc [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] | 6% Senior Notes Due May 2017 [Member] | 6% Senior Notes Due May 2017 [Member] | 11% Senior Note Due November 2015 [Member] | Credit Agreement Dated March 28, 2012 [Member] | Transaction, Tax Indemnification [Member] | Term Loan B [Member] | Term Loan B - Canadian Facility [Member] | Term Loan B - U.S. Facility [Member] | Globalstar do Brasil S.A. [Member] | Globalstar do Brasil S.A. [Member] | |
USD ($) | CAD | USD ($) | CAD | CAD | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | Telesat Holdings Inc [Member] | USD ($) | USD ($) | ||||
USD ($) | item | USD ($) | CAD | USD ($) | |||||||||||||||||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||||||||||||||||||||
Profits recognized on affiliate sales eliminated in earlier periods | $4,600,000 | ||||||||||||||||||||||||||
Economic interest in affiliates | 62.80% | 62.80% | |||||||||||||||||||||||||
Voting interest in affiliate | 32.70% | 32.70% | |||||||||||||||||||||||||
Interest expense multiplier to determine EBITDA available for dividend distribution, maximum | 1.4 | ||||||||||||||||||||||||||
Transaction payments received during the period | 5,400,000 | ||||||||||||||||||||||||||
Prinicipal payment received | 67,333,000 | ||||||||||||||||||||||||||
Equity method investment reduction carrying value | 5,000,000 | ||||||||||||||||||||||||||
Debt instrument amendment date | 2-Apr-13 | ||||||||||||||||||||||||||
Debt amount converted into U.S. dollars | 34,000,000 | ||||||||||||||||||||||||||
Interest rate reduction after amendment | 0.50% | ||||||||||||||||||||||||||
Interest rate floor after amendment | 1.00% | 0.75% | |||||||||||||||||||||||||
Leverage ratio after amendment | 4.25 | ||||||||||||||||||||||||||
Leverage ratio before amendment | 4 | ||||||||||||||||||||||||||
Redemption date of debt instrument | 1-May-13 | ||||||||||||||||||||||||||
Equity method investment senior subordinated notes interest rate stated percentage | 12.50% | ||||||||||||||||||||||||||
Indenture maturity date | 1-Nov-17 | ||||||||||||||||||||||||||
Redemption rate relative to principal amount | 106.25% | ||||||||||||||||||||||||||
Loss contingency cash payment | 3,700,000 | ||||||||||||||||||||||||||
Loss contingency accrual | 1,300,000 | 1,000,000 | |||||||||||||||||||||||||
Equity method investment, impairment | 18,700,000 | ||||||||||||||||||||||||||
Percentage of revenue declined in related party | 17.00% | ||||||||||||||||||||||||||
Maximum borrowing under credit agreement | 2,550,000,000 | ||||||||||||||||||||||||||
Increase in indebtedness | 490,000,000 | ||||||||||||||||||||||||||
Deferred financing cost written-off on debt refinancing | 22,000,000 | ||||||||||||||||||||||||||
Distributions declared to shareholders, option holders and certain employees | 656,500,000 | ||||||||||||||||||||||||||
Distribution declared to Loral | 420,000,000 | ||||||||||||||||||||||||||
Distributions received from affiliate | 420,199,000 | 44,000,000 | 45,000,000 | 376,000,000 | 375,000,000 | ||||||||||||||||||||||
Excess distribution over carrying value of investment in Telesat | 7,400,000 | ||||||||||||||||||||||||||
Equity method losses previously suspended recovered | 7,400,000 | 0 | |||||||||||||||||||||||||
Cash payments authorized to executives and certain employees | 48,600,000 | ||||||||||||||||||||||||||
Promissory note issued | 146,000,000 | ||||||||||||||||||||||||||
Senior notes issued | 700,000,000 | 200,000,000 | |||||||||||||||||||||||||
Interest on notes | 6.00% | 6.00% | 6.00% | 11.00% | |||||||||||||||||||||||
Debt instrument, maturity date | 15-May-17 | 1-Nov-15 | |||||||||||||||||||||||||
Capital expenditures | 86,600,000 | 77,700,000 | 170,200,000 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
Repayment term past due and deferred lease obligation, years | 12 years | ||||||||||||||||||||||||||
Deferred lease obligation, annual payment | 5,000,000 | ||||||||||||||||||||||||||
Discount rate for prepayment of restructured past due and deferred lease obligation | 9.00% | ||||||||||||||||||||||||||
Cumulative payments of restructured past due and deferred lease obligation | 29,200,000 | ||||||||||||||||||||||||||
Proceeds from sale of investments, net | $1,150,000 | $1,694,000 |
Investments_in_Affiliates_Inve
Investments in Affiliates (Investments in Affiliates) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in affiliates | $104,792 | $116,820 |
Telesat Holdings Inc [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in affiliates | 74,329 | 60,157 |
XTAR, LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in affiliates | $30,463 | $56,663 |
Investments_in_Affiliates_Equi
Investments in Affiliates (Equity in Net Income (Losses) of Affiliates) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Equity in net income (loss) of affiliates | ($44,413) | [1] | ($19,283) | [1] | $64,363 | [1] | ($2,169) | [1] | $12,618 | [1] | $33,358 | [1] | $132 | [1] | ($7,281) | [1] | ($1,502) | $38,827 | $34,340 |
Telesat Holdings Inc [Member] | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Equity in net income (loss) of affiliates | 24,698 | 47,251 | 40,814 | ||||||||||||||||
XTAR, LLC [Member] | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Equity in net income (loss) of affiliates | -26,200 | -5,854 | -6,474 | ||||||||||||||||
Other Affiliates [Member] | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Equity in net income (loss) of affiliates | ($2,570) | ||||||||||||||||||
[1] | The quarterly earnings per share information is computed separately for each period. Therefore, the sum of such quarterly per share amounts may differ from the total for the year. |
Investments_in_Affiliates_Effe
Investments in Affiliates (Effect of Affiliate Transactions on Operating Statement) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2012 |
Investments in Affiliates [Abstract] | |
Revenues included in income (loss) from discontinued operations | $57,571 |
Elimination of Company's proportionate share of profits relating to affiliate transactions | -16,912 |
Profits included in income (loss) from discontinued operations relating to affiliate transactions not eliminated | $9,513 |
Investments_in_Affiliates_Equi1
Investments in Affiliates (Equity Method Investment, Summarized Financial Data) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Telesat Holdings Inc [Member] | |||
Summary Financial Data: | |||
Revenues | $837,440 | $867,914 | $846,148 |
Operating expenses | -161,944 | -185,179 | -242,705 |
Depreciation, amortization and stock-based compensation | -231,849 | -245,764 | -249,134 |
Gain (loss) on disposition of long lived asset | -276 | -1,677 | -778 |
Operating income (loss) | 443,371 | 435,294 | 353,531 |
Interest expense | -182,395 | -210,180 | -236,398 |
Expense of refinancing | -19,655 | -80,104 | |
Foreign exchange gains (losses) | -232,275 | -191,569 | 81,073 |
Gains (losses) on financial instruments | 70,872 | 110,034 | -25,755 |
Other income (expense) | 2,779 | 11,343 | 1,362 |
Income tax provision | -60,954 | -39,039 | -28,154 |
Net income (loss) | 41,398 | 96,228 | 65,555 |
Current assets | 497,287 | 366,814 | |
Total assets | 4,552,613 | 4,929,838 | |
Current liabilities | 227,200 | 360,744 | |
Long-term debt, including current portion | 3,102,635 | 3,215,831 | |
Total liabilities | 3,921,887 | 4,280,902 | |
Shareholders' equity/Members' equity | 630,726 | 648,936 | |
XTAR, LLC [Member] | |||
Summary Financial Data: | |||
Revenues | 29,171 | 35,283 | 32,674 |
Operating expenses | -31,367 | -33,763 | -34,627 |
Depreciation, amortization and stock-based compensation | -9,257 | -9,247 | -9,298 |
Operating income (loss) | -11,453 | -7,727 | -11,251 |
Net income (loss) | -13,835 | -10,895 | -14,651 |
Current assets | 4,992 | 6,970 | |
Total assets | 53,508 | 64,745 | |
Current liabilities | 28,585 | 22,443 | |
Total liabilities | 59,342 | 56,872 | |
Shareholders' equity/Members' equity | ($5,834) | $7,873 |
Other_Current_Liabilities_Sche
Other Current Liabilities (Schedule of Other Current Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Pension and other post retirement liabilities | $526 | $128 |
Deferred tax liability | 416 | |
Accrued liabilities | 2,401 | 2,484 |
Other current liabilities, total | 13,424 | 8,750 |
Indemnification Liability ViaSat Lawsuit Settlement [Member] | ||
Indemnification liabilities (see Note 15) | 10,081 | 6,041 |
Indemnification Liabilities Other [Member] | ||
Indemnification liabilities (see Note 15) | $97 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Contingency [Line Items] | |||
Current tax (benefit) provision | $2,171,000 | ($26,343,000) | ($115,318,000) |
Benefit to income tax provision | 10,600,000 | ||
Extraterritorial income exclusion | 3,468,000 | 6,177,000 | 11,200,000 |
Potential change in unrecognized tax benefits during next twelve months | -8,500,000 | ||
Total deferred income tax provision | -10,276,000 | 28,184,000 | 22,003,000 |
Deferred tax (provision) benefit for adjustments in other comprehensive loss | -4,919,000 | 10,127,000 | 22,612,000 |
Liability for UTPs | 77,133,000 | 79,688,000 | |
Unrecognized tax benefits, interest on income taxes accrued | 5,800,000 | ||
Unrecognized tax benefits, income tax penalties accrued | 7,800,000 | ||
Unrecognized tax benefits that would reduce the income tax provision | 35,700,000 | ||
Excess tax benefit associated with stock based compensation | 1,864,000 | -3,128,000 | 16,919,000 |
Valuation allowance | 7,905,000 | 7,228,000 | |
Changes in valuation allowance | 700,000 | 100,000 | -3,800,000 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 624,000 | ||
Valuation Allowances and Reserves, Charged to Other Accounts | 53,000 | ||
Internal Revenue Service (IRS) [Member] | |||
Income Tax Contingency [Line Items] | |||
Statute of limitations to expire during next twelve months | 2010 | ||
Operating loss carryforwards | 264,800,000 | ||
Operating loss carryforwards, limitations on use | 32,600,000 | ||
California [Member] | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | 77,800,000 | ||
Research Credit [Member] | |||
Income Tax Contingency [Line Items] | |||
Federal AMT credits | 1,200,000 | ||
Other Tax Carryforward, AMT Tax Credits [Member] | |||
Income Tax Contingency [Line Items] | |||
Federal AMT credits | 6,600,000 | ||
Other Tax Carryforward, AMT Tax Credits [Member] | State and Local Jurisdiction [Member] | |||
Income Tax Contingency [Line Items] | |||
Federal AMT credits | 9,400,000 | ||
Continuing Operations [Member] | |||
Income Tax Contingency [Line Items] | |||
(Provision) benefit for reversal of UTP liability from statute expiration | 86,700,000 | ||
Changes in valuation allowance | -2,300,000 | ||
Continuing Operations [Member] | Current Tax [Member] | |||
Income Tax Contingency [Line Items] | |||
(Provision) benefit for reversal of UTP liability from statute expiration | 112,900,000 | ||
Continuing Operations [Member] | Deferred Tax [Member] | |||
Income Tax Contingency [Line Items] | |||
(Provision) benefit for reversal of UTP liability from statute expiration | -26,200,000 | ||
Discontinued Operations [Member] | |||
Income Tax Contingency [Line Items] | |||
Changes in valuation allowance | ($1,500,000) |
Income_Taxes_Summary_of_Income
Income Taxes (Summary of Income Tax Benefit (Provision)) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
U.S. Federal | ($5,524) | $25,567 | $55,928 |
State and local | 3,573 | 976 | 59,390 |
Foreign | -220 | -200 | |
Total current | -2,171 | 26,343 | 115,318 |
Deferred: | |||
U.S. Federal | 8,531 | -26,981 | -3,325 |
State and local | 1,745 | -1,203 | -18,678 |
Total deferred | 10,276 | -28,184 | -22,003 |
Income tax benefit (provision) | $8,105 | ($1,841) | $93,315 |
Income_Taxes_Unrecognized_Tax_
Income Taxes (Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
Decrease to unrecognized tax benefits | $3,062 | $1,952 | $61,470 |
Interest expense | -1,757 | -1,429 | 27,672 |
Penalties | 1,250 | 521 | 21,175 |
Total | $2,555 | $1,044 | $110,317 |
Income_Taxes_Summary_of_Additi
Income Taxes (Summary of Additional Income Tax Disclosures) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Abstract] | ||||
Tax benefit (provision) on (loss) income from discontinued operations | $14,482 | $2,995 | ($10,157) | [1] |
Tax provision on Sale of discontinued operations | -267,451 | [1] | ||
Excess tax benefit from equity compensation recorded to paid-in-capital | 1,864 | -3,128 | 16,919 | |
Deferred tax (provision) benefit for adjustments in other comprehensive income (loss) (See Note 4) | $4,919 | ($10,127) | ($22,612) | |
[1] | Reference to the year ended December 31, 2012 in the table above is for the period January 1, 2012 to November 2, 2012, the date of the Sale. |
Income_Taxes_Schedule_of_Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
Tax benefit at U.S. Statutory Rate of 35% | $2,811 | $5,435 | $9,524 |
State and local income taxes, net of federal income tax | 4,497 | 155 | 34,605 |
Equity in net income of affiliates | 526 | -13,589 | -12,019 |
Extraterritorial income exclusion | 3,468 | 6,177 | 11,200 |
Domestic production activity benefit | 2,317 | ||
Provision for unrecognized tax benefits | -833 | -332 | 46,542 |
interest on deferred installment sale | -216 | -1,296 | |
Nondeductible expenses | -1,359 | -762 | -603 |
Change in valuation allowance | -624 | -121 | 2,311 |
Federal research and development credit | 402 | 99 | |
Foreign income taxes | -143 | -130 | |
Other, net | -22 | -97 | 1,656 |
Income tax benefit (provision) | $8,105 | ($1,841) | $93,315 |
U.S. statutory rate | 35.00% | 35.00% | 35.00% |
Income_Taxes_Unrecognized_Tax_1
Income Taxes (Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
Balance at January 1 | $80,527 | $76,080 | $115,293 |
Increases related to prior year tax positions | 2,141 | 6,755 | 453 |
Decreases related to prior year tax positions | -423 | -1,025 | -27 |
Decreases as a result of statute expirations | -3,043 | -1,283 | -61,021 |
Decreases as a result of tax settlements | -869 | -8,184 | |
Increases related to current year tax positions | 29,566 | ||
Balance at December 31 | $78,333 | $80,527 | $76,080 |
Income_Taxes_Schedule_of_Net_D
Income Taxes (Schedule of Net Deferred Tax Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Taxes [Abstract] | ||
Net operating loss and tax credit carryforwards | $122,152 | $132,820 |
Compensation and benefits | 1,790 | 1,590 |
Indemnification liabilities | 9,114 | 5,946 |
Other, net | 4,850 | 4,909 |
Federal benefit of uncertain tax positions | 10,026 | 10,216 |
Pension costs | 6,752 | 1,154 |
Total deferred tax assets before valuation allowance | 154,684 | 156,635 |
Less valuation allowance | -7,905 | -7,228 |
Deferred tax assets net of valuation allowance | 146,779 | 149,407 |
Deferred installment sale | -12,376 | -37,974 |
Investments in and advances to affiliates | -22,082 | -28,848 |
Total deferred tax liabilities | -34,458 | -66,822 |
Current deferred tax assets | 654 | 3,784 |
Long-term deferred tax assets | 112,898 | 83,708 |
Other current liabilities | -416 | |
Long-term liabilities | -815 | -4,907 |
Net deferred tax assets | $112,321 | $82,585 |
Long_Term_Liabilities_Schedule
Long Term Liabilities (Schedule of Long Term Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax liability | $815 | $4,907 |
Liabilities for uncertain tax positions | 77,133 | 79,688 |
Other | 307 | 2,443 |
Long term liabilities | 92,469 | 93,117 |
Indemnification Liability ViaSat Lawsuit Settlement [Member] | ||
Indemnification liabilities (see Note 15) | 13,242 | 4,759 |
Indemnification Liabilities Other [Member] | ||
Indemnification liabilities (see Note 15) | $972 | $1,320 |
Equity_Narrative_Details
Equity (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | |||
Nov. 07, 2012 | Mar. 28, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Dividends per share | $13.60 | |||||
Common dividends declared ($13.60 per share) | $417,600,000 | $417,606,000 | ||||
Dividends payable date | 20-Apr-12 | |||||
Dividend payable record date | 10-Apr-12 | |||||
Special distribution declared per share | $29 | $29 | ||||
Aggregate special distribution | 892,100,000 | |||||
Special distribution paid date | 4-Dec-12 | |||||
Special distribution record date | 19-Nov-12 | |||||
Treasury stock, shares | 154,494 | 154,494 | ||||
Treasury stock | 9,592,000 | 9,592,000 | ||||
Program Date November 2011 [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Voting common stock repurchased, authorized shares, maximum | 800,000 | |||||
Treasury stock, shares | 154,494 | |||||
Average cost per share | $62.04 | |||||
Special Distribution [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Restricted stock, shares issued net of shares for tax withholdings | 41,300 | |||||
Shares surrendered to fund withholding taxes, shares | 40,033 | |||||
Equitable adjustment to restricted stock units for dividends and distributions | 5,100,000 | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares, Vested | 175,000 | |||||
Restricted stock, shares issued net of shares for tax withholdings | 91,204 | |||||
Shares surrendered to fund withholding taxes, shares | 83,796 | |||||
Restricted Stock Units (RSUs) [Member] | Special Dividend [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Restricted stock, shares issued net of shares for tax withholdings | 19,368 | |||||
Shares surrendered to fund withholding taxes, shares | 18,774 | |||||
Equitable adjustment to stock options outstanding | 19,058 | |||||
Equitable adjustment to restricted stock units for dividends and distributions, shares | 6,875 | |||||
Equitable adjustment to restricted stock units for dividends and distributions | $2,400,000 |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
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 | ||
Stock compensation, cash payments | $0.50 | $0.50 | $2 |
Total unrecognized compensation costs related to non-vested awards | $0 |
StockBased_Compensation_Schedu
Stock-Based Compensation (Schedule of Stock Incentive Plan Activity) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock-Based Compensation [Abstract] | |||
Total intrinsic value of options exercised | $17,472 | ||
Total fair value of restricted stock vested | 287 | ||
Total fair value of restricted stock units vested | $2,241 | $1,403 |
StockBased_Compensation_Compon
Stock-Based Compensation (Components of Stock-Based Compensation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock-Based Compensation [Abstract] | |||
Stock-based compensation | $12 | $488 | $1,796 |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) (Telesat Holdings Inc [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Telesat Holdings Inc [Member] | |
Percentage of economic interest as result of dilution upon exercise of stock options | 61.70% |
Earnings_Per_Share_Schedule_of
Earnings Per Share (Schedule of Dilutive Impact of Equity Method Investee Stock Options) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||
Income (loss) from continuing operations | ($13,731) | [1],[2] | ($25,880) | [1],[2] | $53,002 | [1],[2] | ($14,818) | [1],[2] | $2,863 | [1],[2] | $37,582 | [1],[2] | ($5,402) | [1],[2] | ($13,587) | [1],[2] | ($1,427) | $21,456 | $100,442 |
Less: Adjustment for dilutive effect of Telesat stock options | -641 | -683 | |||||||||||||||||
Income (loss) from continuing operations - diluted | $20,815 | $99,759 | |||||||||||||||||
[1] | The quarterly earnings per share information is computed separately for each period. Therefore, the sum of such quarterly per share amounts may differ from the total for the year. | ||||||||||||||||||
[2] | Variations in income from continuing operations among quarters in 2014 and 2013 are primarily the result of (i) the effect of changes in foreign exchange rates between the Canadian dollar and the U.S. dollar on our equity in net income (loss) of Telesat and (ii) the limitation on recording our portion of Telesatbs net income or loss due to the reduction of the carrying amount of our investment in Telesat to zero as a result of the excess of cash dividends received from Telesat in 2012. Equity in net income (loss) of affiliates for the quarter ended December 31, 2014 included an impairment charge to reduce our investment in XTAR to its fair value. Equity in net income (loss) of affiliates for the quarter ended March 31, 2013 included expense related to refinancing. |
Earnings_Per_Share_Schedule_of1
Earnings Per Share (Schedule of Weighted Average Number of Shares for Calculating Diluted Earnings Per Share) (Details) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Common and potential common shares outstanding for diluted earnings per share | |||
Weighted average common shares outstanding | 30,920 | 30,850 | 30,703 |
Common shares outstanding for diluted earnings per share | 30,920 | 30,999 | 30,991 |
Stock Options [Member] | |||
Common and potential common shares outstanding for diluted earnings per share | |||
Potential common shares outstanding for diluted earnings per share | 61 | ||
Unconverted Restricted Stock Units [Member] | |||
Common and potential common shares outstanding for diluted earnings per share | |||
Potential common shares outstanding for diluted earnings per share | 149 | 226 | |
Unvested or Unconverted Restricted Stock [Member] | |||
Common and potential common shares outstanding for diluted earnings per share | |||
Potential common shares outstanding for diluted earnings per share | 1 |
Earnings_Per_Share_Summary_of_
Earnings Per Share (Summary of Unvested Restricted Stock Units Excluded from the Calculation of Diluted Loss Per Share) (Details) (Unconverted Restricted Stock Units [Member]) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Unconverted Restricted Stock Units [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 84 |
Pensions_and_Other_Employee_Be2
Pensions and Other Employee Benefits Plans (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Decrease to the assets of the Loral Pension Plan | $1,200,000 | |||
Unfunded status at end of period | -21,300,000 | |||
Unfunded benefit obligations, discount rate | 4.00% | 4.75% | 4.00% | |
Unfunded benefit obligations, decrease in discount rate | 0.50% | |||
Change in unfunded benefit obligation as a result of decrease in half percentage point assumed discount rate | 4,000,000 | 3,100,000 | ||
Accumulated pension benefit obligation | 46,900,000 | 39,200,000 | ||
Expected long-term rate of return on plan assets | 7.25% | |||
Health care cost trend rate | 8.50% | |||
Health care cost trend rate, year | 2021 | |||
Ultimate health care cost trend rate | 5.00% | |||
Employee Savings (401K) Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions to employee savings (401K) plan, maximum | 6.00% | |||
Participant's base salary rate | 66.70% | |||
Employer contributions | 100,000 | 200,000 | 200,000 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to qualified pension plan | 4,100,000 | |||
Estimated actuarial loss to be amortized from accumulated other comprehensive income over next fiscal year | 800,000 | |||
Estimated employer contribution next fiscal year | 4,200,000 | |||
Other Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to qualified pension plan | 100,000 | |||
Estimated employer contribution next fiscal year | 500,000 | |||
Supplemental Executive Retirement Plan ("SERP") [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Termination date SERP | 13-Dec-12 | |||
Lump sum payment to plan participants | 17,700,000 | |||
Discontinued Operations [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to qualified pension plan | 10,700,000 | |||
Pension plan assets transferred to disposal group | 11,900,000 | |||
Amount reimbursed by purchaser of disposal group for pension true-up | 11,900,000 | |||
Cash proceeds from the decrease in the plan assets | $1,200,000 |
Pensions_and_Other_Employee_Be3
Pensions and Other Employee Benefits Plans (Reconciliation of Changes in Plans' Benefit Obligations and Fair Value of Assets) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at December 31, | $28,476 | $24,628 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 188 | 311 | 824 |
Interest cost | 1,882 | 1,843 | 2,523 |
Employer contributions | 4,100 | ||
Funded status at end of period | -19,696 | -15,614 | |
Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1 | 2 | 6 |
Interest cost | 71 | 65 | 45 |
Employer contributions | 100 | ||
Funded status at end of period | -1,623 | -1,517 | |
Reconciliation of Benefit Obligation [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Obligation at beginning of period | 40,242 | 62,488 | |
Service cost | 188 | 311 | |
Interest cost | 1,882 | 1,843 | |
Participant contributions | 21 | 28 | |
Actuarial (gain) loss | 7,554 | -3,874 | |
Benefit payments | -1,715 | -1,868 | |
Curtailment and settlement | -18,686 | ||
Obligation at December 31 | 48,172 | 40,242 | |
Reconciliation of Benefit Obligation [Member] | Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Obligation at beginning of period | 1,517 | 1,051 | |
Service cost | 1 | 2 | |
Interest cost | 71 | 65 | |
Participant contributions | 58 | 51 | |
Plan amendment | 230 | ||
Actuarial (gain) loss | 145 | 249 | |
Benefit payments | -169 | -147 | |
Curtailment and settlement | 16 | ||
Obligation at December 31 | 1,623 | 1,517 | |
Reconciliation of Fair Value of Plan Assets [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Participant contributions | 21 | 28 | |
Benefit payments | -1,715 | -1,467 | |
Fair value of plan assets at beginning of period | 24,628 | 20,207 | |
Actual return on plan assets | 1,464 | 3,120 | |
Employer contributions | 4,078 | 3,955 | |
Transfer due to Sale | -1,215 | ||
Fair value of plan assets at December 31, | 28,476 | 24,628 | |
Reconciliation of Fair Value of Plan Assets [Member] | Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Participant contributions | 58 | 51 | |
Benefit payments | -169 | -147 | |
Employer contributions | $111 | $96 |
Pensions_and_Other_Employee_Be4
Pensions and Other Employee Benefits Plans (Pre-Tax Amounts Recognized in Accumulated Other Comprehensive Loss) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial loss | ($17,200) | ($9,636) |
Pre-tax amounts recognized in accumulated other comprehensive income (loss) | -17,200 | -9,636 |
Other Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial loss | -550 | -444 |
Amendments-prior service (cost) credit | -80 | -89 |
Pre-tax amounts recognized in accumulated other comprehensive income (loss) | ($630) | ($533) |
Pensions_and_Other_Employee_Be5
Pensions and Other Employee Benefits Plans (Amounts Recognized in Other Comprehensive Loss) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Recognition due to curtailment and amount reclassified | ($123,377) | [1] | ||
Post Retirement Benefits, Before-Tax Amount | 7,661 | -13,699 | -131,459 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) during the period | -7,972 | 5,491 | 498 | |
Prior service cost (credit) during the period | 1,497 | |||
Amortization of actuarial loss (gain) | 408 | 5,947 | 9,773 | |
Amortization of prior service cost (credit) | -2,266 | |||
Recognition due to curtailment and amount reclassified | 2,624 | -1,497 | ||
Post Retirement Benefits, Before-Tax Amount | -7,564 | 14,062 | 143,623 | |
Other Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) during the period | -145 | -249 | 967 | |
Prior service cost (credit) during the period | -230 | |||
Amortization of actuarial loss (gain) | 39 | 44 | -279 | |
Amortization of prior service cost (credit) | 9 | 9 | -611 | |
Recognition due to curtailment and amount reclassified | 63 | |||
Post Retirement Benefits, Before-Tax Amount | -97 | -363 | -12,164 | |
Discontinued Operations [Member] | Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Recognition due to curtailment and amount reclassified | 135,618 | |||
Discontinued Operations [Member] | Other Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Recognition due to curtailment and amount reclassified | ($12,241) | |||
[1] | Reclassifications are included in discontinued operations. |
Pensions_and_Other_Employee_Be6
Pensions and Other Employee Benefits Plans (Amounts Recognized in the Balance Sheets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Long-Term Liabilities | $19,696 | $15,614 |
Amounts recognized in the balance sheet | 19,696 | 15,614 |
Other Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current Liabilities | 526 | 128 |
Long-Term Liabilities | 1,097 | 1,389 |
Amounts recognized in the balance sheet | $1,623 | $1,517 |
Pensions_and_Other_Employee_Be7
Pensions and Other Employee Benefits Plans (Components of Net Periodic Cost) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $188 | $311 | $824 |
Interest cost | 1,882 | 1,843 | 2,523 |
Expected return on plan assets | -1,882 | -1,503 | -1,435 |
Recognition due to curtailment | 1,671 | -1,497 | |
Amortization of net actuarial loss (gain) | 408 | 5,947 | 748 |
Net periodic cost | 596 | 8,269 | 1,163 |
Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1 | 2 | 6 |
Interest cost | 71 | 65 | 45 |
Recognition due to curtailment | 78 | ||
Amortization of prior service cost (credit) | 9 | 9 | -24 |
Amortization of net actuarial loss (gain) | 39 | 44 | 12 |
Net periodic cost | $120 | $198 | $39 |
Pensions_and_Other_Employee_Be8
Pensions and Other Employee Benefits Plans (Assumptions Used to Determine Net Periodic Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pensions and Other Employee Benefit Plans [Abstract] | |||
Discount rate | 4.75% | 4.00% | 4.75% |
Expected return on plan assets | 7.25% | 7.25% | 8.00% |
Rate of compensation increase | 4.25% | 4.25% | 4.25% |
Pensions_and_Other_Employee_Be9
Pensions and Other Employee Benefits Plans (Assumptions Used to Determine Benefit Obligation) (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pensions and Other Employee Benefit Plans [Abstract] | |||
Discount rate | 4.00% | 4.75% | 4.00% |
Rate of compensation increase | 4.25% | 4.25% | 4.25% |
Recovered_Sheet1
Pensions and Other Employee Benefits Plans (Pension Plans' Actual and Targeted Asset Allocations) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 100.00% | 100.00% |
Target Allocation | 100.00% | |
Target allocation range, maximum | 100.00% | |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 58.00% | 58.00% |
Target Allocation | 60.00% | |
Target allocation range, maximum | 70.00% | |
Target allocation range, minimum | 50.00% | |
Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 42.00% | 42.00% |
Target Allocation | 40.00% | |
Target allocation range, maximum | 50.00% | |
Target allocation range, minimum | 30.00% |
Recovered_Sheet2
Pensions and Other Employee Benefits Plans (Target Asset Allocations and Ranges of Post Retirement Benefit Plan) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Allocation | 100.00% |
Target allocation range, maximum | 100.00% |
Equity Securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Allocation | 60.00% |
Target allocation range, maximum | 70.00% |
Target allocation range, minimum | 50.00% |
Equity Securities [Member] | U.S. Large Cap [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Allocation | 25.00% |
Target allocation range, minimum | 15.00% |
Equity Securities [Member] | U.S. Small Cap [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Allocation | 5.00% |
Target allocation range, minimum | 0.00% |
Equity Securities [Member] | Global [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Allocation | 10.00% |
Target allocation range, minimum | 5.00% |
Equity Securities [Member] | Non-U.S. [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Allocation | 10.00% |
Target allocation range, minimum | 5.00% |
Equity Securities [Member] | Alternative Equity Investments [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Allocation | 10.00% |
Target allocation range, minimum | 0.00% |
Fixed Income Securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Allocation | 40.00% |
Target allocation range, maximum | 50.00% |
Target allocation range, minimum | 30.00% |
Fixed Income Securities [Member] | Fixed Income [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Allocation | 30.00% |
Target allocation range, minimum | 20.00% |
Fixed Income Securities [Member] | Alternative Fixed Income Investments [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target Allocation | 10.00% |
Target allocation range, minimum | 0.00% |
Recovered_Sheet3
Pensions and Other Employee Benefits Plans (Fair Values of Pension Plan Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | $28,476 | $24,628 | |||
Pension plans' actual assets allocation | 100.00% | 100.00% | |||
Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 25,688 | 21,844 | |||
Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 2,788 | 2,784 | 2,488 | ||
Level 3 [Member] | Equity Long/Short Fund [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 801 | 842 | 682 | ||
Level 3 [Member] | Private Equity Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 249 | 287 | 283 | ||
Level 3 [Member] | Distressed Opportunity Ltd. Partnership [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 368 | 364 | 299 | ||
Level 3 [Member] | Other Limited Partnership [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 33 | ||||
Level 3 [Member] | Multi Strategy Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 1,370 | 1,291 | 1,191 | ||
Equity Securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 16,465 | 14,323 | |||
Pension plans' actual assets allocation | 58.00% | 58.00% | |||
Equity Securities [Member] | U.S. Large Cap [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 7,031 | [1] | 5,965 | [1] | |
Pension plans' actual assets allocation | 25.00% | [1] | 24.00% | [1] | |
Equity Securities [Member] | U.S. Small Cap [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 2,004 | [2] | 1,688 | [2] | |
Pension plans' actual assets allocation | 7.00% | [2] | 7.00% | [2] | |
Equity Securities [Member] | Global [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 2,288 | [3] | 1,956 | [3] | |
Pension plans' actual assets allocation | 8.00% | [3] | 8.00% | [3] | |
Equity Securities [Member] | Non-U.S. [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 3,494 | [4] | 3,103 | [4] | |
Pension plans' actual assets allocation | 12.00% | [4] | 13.00% | [4] | |
Equity Securities [Member] | Equity Long/Short Fund [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 801 | [5] | 842 | [5] | |
Pension plans' actual assets allocation | 3.00% | [5] | 3.00% | [5] | |
Equity Securities [Member] | Real Estate Securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 598 | [6] | 482 | ||
Pension plans' actual assets allocation | 2.00% | [6] | 2.00% | ||
Equity Securities [Member] | Private Equity Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 249 | [7] | 287 | [7] | |
Pension plans' actual assets allocation | 1.00% | [7] | 1.00% | [7] | |
Equity Securities [Member] | Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 15,415 | 13,194 | |||
Equity Securities [Member] | Level 2 [Member] | U.S. Large Cap [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 7,031 | [1] | 5,965 | [1] | |
Equity Securities [Member] | Level 2 [Member] | U.S. Small Cap [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 2,004 | [2] | 1,688 | [2] | |
Equity Securities [Member] | Level 2 [Member] | Global [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 2,288 | [3] | 1,956 | [3] | |
Equity Securities [Member] | Level 2 [Member] | Non-U.S. [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 3,494 | [4] | 3,103 | [4] | |
Equity Securities [Member] | Level 2 [Member] | Real Estate Securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 598 | [6] | 482 | ||
Equity Securities [Member] | Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 1,050 | 1,129 | |||
Equity Securities [Member] | Level 3 [Member] | Equity Long/Short Fund [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 801 | [5] | 842 | [5] | |
Equity Securities [Member] | Level 3 [Member] | Private Equity Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 249 | [7] | 287 | [7] | |
Fixed Income Securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 12,011 | 10,305 | |||
Pension plans' actual assets allocation | 42.00% | 42.00% | |||
Fixed Income Securities [Member] | Commingled Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 10,273 | [8] | 8,650 | [8] | |
Pension plans' actual assets allocation | 36.00% | [8] | 35.00% | [8] | |
Fixed Income Securities [Member] | Distressed Opportunity Ltd. Partnership [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 368 | [9] | 364 | [9] | |
Pension plans' actual assets allocation | 1.00% | [9] | 2.00% | [9] | |
Fixed Income Securities [Member] | Multi-Strategy Limited Partnerships [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 1,370 | [10] | 1,291 | [10] | |
Pension plans' actual assets allocation | 5.00% | [10] | 5.00% | [10] | |
Fixed Income Securities [Member] | Level 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 10,273 | 8,650 | |||
Fixed Income Securities [Member] | Level 2 [Member] | Commingled Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 10,273 | [8] | 8,650 | [8] | |
Fixed Income Securities [Member] | Level 3 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 1,738 | 1,655 | |||
Fixed Income Securities [Member] | Level 3 [Member] | Distressed Opportunity Ltd. Partnership [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | 368 | [9] | 364 | [9] | |
Fixed Income Securities [Member] | Level 3 [Member] | Multi-Strategy Limited Partnerships [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, fair value of plan assets | $1,370 | [10] | $1,291 | [10] | |
[1] | Investments in common stocks that rank among the largest 1,000 companies in the U.S. stock market. | ||||
[2] | Investments in common stocks that rank among the small capitalization stocks in the U.S. stock market. | ||||
[3] | Investments in common stocks across the world without being limited by national borders or to specific regions. | ||||
[4] | Investments in common stocks of companies from developed and emerging countries outside the United States. | ||||
[5] | Investments primarily in long and short positions in equity securities of U.S. and non-U.S. companies. The fund has semi-annual tender offer redemption periods on June 30 and December 31 and is reported on a one month lag. | ||||
[6] | As of December 31, 2014, the pension plan was invested in real estate through a fund of funds which invests in global public real estate securities (REITs). | ||||
[7] | Fund invests in portfolios of secondary interest in established venture capital, buyout, mezzanine and special situation funds on a global basis. Fund is valued on a quarterly lag with adjustment for subsequent cash activity. | ||||
[8] | Investments in bonds representing many sectors of the broad bond market with both short-term and intermediate-term maturities. | ||||
[9] | Investments mainly in discounted debt securities, bank loans, trade claims and other debt and equity securities of financially troubled companies. This partnership has semi-annual withdrawal rights on June 30 and December 31. This fund is reported on a one month lag. | ||||
[10] | Investments mainly in partnerships that have multi-strategy investment programs and do not rely on a single investment model.B One partnership has quarterly liquidation rights with notice of 65 days while the second partnership has monthly liquidation rights with notice of 33 days. Both funds are reported on a one month lag. |
Recovered_Sheet4
Pensions and Other Employee Benefits Plans (Changes in Fair Value of Pension Plan Assets) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Asset transfer due to Sale | $1,200,000 | |||
Fair value of plan assets at December 31, | 28,476,000 | 24,628,000 | ||
Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of plan assets at beginning of period | 2,488,000 | |||
Fair value of plan assets at December 31, | 2,788,000 | 2,784,000 | 2,488,000 | |
Private Equity Funds [Member] | Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of plan assets at beginning of period | 283,000 | |||
Fair value of plan assets at December 31, | 249,000 | 287,000 | 283,000 | |
Equity Long/Short Fund [Member] | Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of plan assets at beginning of period | 682,000 | |||
Fair value of plan assets at December 31, | 801,000 | 842,000 | 682,000 | |
Distressed Opportunity Ltd. Partnership [Member] | Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of plan assets at beginning of period | 299,000 | |||
Fair value of plan assets at December 31, | 368,000 | 364,000 | 299,000 | |
Other Limited Partnership [Member] | Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of plan assets at beginning of period | 33,000 | |||
Fair value of plan assets at December 31, | 33,000 | |||
Multi Strategy Funds [Member] | Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair value of plan assets at beginning of period | 1,191,000 | |||
Fair value of plan assets at December 31, | 1,370,000 | 1,291,000 | 1,191,000 | |
Unrealized Gain/(Loss) [Member] | Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Realized and unrealized gain/(loss) | 54,000 | 377,000 | ||
Unrealized Gain/(Loss) [Member] | Private Equity Funds [Member] | Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Realized and unrealized gain/(loss) | 12,000 | 62,000 | ||
Unrealized Gain/(Loss) [Member] | Equity Long/Short Fund [Member] | Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Realized and unrealized gain/(loss) | -41,000 | 160,000 | ||
Unrealized Gain/(Loss) [Member] | Distressed Opportunity Ltd. Partnership [Member] | Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Realized and unrealized gain/(loss) | 4,000 | 65,000 | ||
Unrealized Gain/(Loss) [Member] | Other Limited Partnership [Member] | Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Realized and unrealized gain/(loss) | -10,000 | |||
Unrealized Gain/(Loss) [Member] | Multi Strategy Funds [Member] | Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Realized and unrealized gain/(loss) | 79,000 | 100,000 | ||
Realized Gain/(Loss) [Member] | Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Realized and unrealized gain/(loss) | 16,000 | |||
Realized Gain/(Loss) [Member] | Other Limited Partnership [Member] | Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Realized and unrealized gain/(loss) | 16,000 | |||
Purchases [Member] | Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases and sales | 9,000 | |||
Purchases [Member] | Private Equity Funds [Member] | Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases and sales | 9,000 | |||
Sales [Member] | Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases and sales | -66,000 | -90,000 | ||
Sales [Member] | Private Equity Funds [Member] | Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases and sales | -50,000 | -67,000 | ||
Sales [Member] | Other Limited Partnership [Member] | Level 3 [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Purchases and sales | ($16,000) | ($23,000) |
Recovered_Sheet5
Pensions and Other Employee Benefits Plans (Benefit Payments Expected to be Paid) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | $1,698 |
2016 | 1,714 |
2017 | 1,710 |
2018 | 1,901 |
2019 | 1,896 |
2020 to 2024 | 11,702 |
Gross Benefit Payments [Member] | Other Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | 535 |
2016 | 158 |
2017 | 96 |
2018 | 93 |
2019 | 129 |
2020 to 2024 | $467 |
Financial_Instruments_Derivati1
Financial Instruments, Derivative Instruments and Hedging (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2012 |
Financial Instruments, Derivative Instruments and Hedging [Abstract] | |
Gain (loss) on foreign currency exchange contract | $1.30 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2015 | Sep. 30, 2014 | |
Contingencies And Commitments [Line Items] | |||||
Other current assets | $1,775,000 | $4,352,000 | |||
Restructuring costs | 11,800,000 | ||||
Restructuring costs paid | 100,000 | 3,300,000 | |||
Supplemental unemployment benefits, severance benefits | 400,000 | 500,000 | |||
Pre Closing Taxes Indemnification [Member] | Sale of SS/L [Member] | |||||
Contingencies And Commitments [Line Items] | |||||
Loss contingency accrual | -400,000 | 100,000 | |||
ViaSat Lawsuit [Member] | Sale of SS/L [Member] | |||||
Contingencies And Commitments [Line Items] | |||||
Settlement agreement date | Sep-14 | ||||
Settlement agreement, plaintiff's name | ViaSat, Inc. | ||||
Settlement agreement, counterparty's name | SS/L | ||||
Lawsuit settlement amount, joint & several liability | 100,000,000 | ||||
Lawsuit settlement initial payment, joint & several liability | 40,000,000 | ||||
Lawsuit settlement future payments, joint & several liability | 55,200,000 | 60,000,000 | |||
Lawsuit settlement installment number, joint and several liability | 10 | ||||
Lawsuit settlement installment frequency, joint & several liability | quarterly | ||||
Lawsuit settlement amount of each installment, joint & several liability | 6,900,000 | ||||
Lawsuit settlement installment start date, joint & several liability | 15-Oct-14 | ||||
Lawsuit settlement installment end date, joint & several liability | 15-Jan-17 | ||||
Obligation with joint and several liability arrangement, amount recognized | 45,000,000 | ||||
Obligation with joint and several liability amount payable by counterparty | 55,000,000 | ||||
Payments for legal settlements | 20,800,000 | 2,800,000 | |||
Lawsuit settlement installments remaining | 8 | ||||
Lawsuit settlement, total amount outstanding installments | 22,500,000 | ||||
Lawsuit settlement installment discount rate | 3.25% | ||||
Lawsuit settlement obligation carrying value | 23,300,000 | ||||
Globalstar do Brasil S.A. [Member] | |||||
Contingencies And Commitments [Line Items] | |||||
Loss contingency accrual | 1,000,000 | 1,300,000 | |||
Loss contingency cash payment | $3,700,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Operating Leases Expense Net of Sublease Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies [Abstract] | |||
Operating leases, rent expense | $595 | $876 | $1,062 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Schedule of Future Minimum Payments) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies [Abstract] | |
Operating leases, 2015 | $308 |
Related_Party_Transactions_Nar
Related Party Transactions (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||
Dec. 31, 2012 | Jul. 05, 2012 | Mar. 28, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 11, 2011 | Jan. 01, 2015 | Dec. 31, 2007 | |
Related Party Transaction [Line Items] | ||||||||
Distributions received from affiliate | $420,199,000 | |||||||
Revenue from related parties | 57,571,000 | |||||||
Telesat Holdings Inc [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Economic interest in affiliates | 62.80% | |||||||
Common stock, percentage acquired by an unaffiliated third party | 90.00% | |||||||
Duration for shares to be paid, days | 10 days | |||||||
Distributions received from affiliate | 44,000,000 | 376,000,000 | ||||||
Revenue from related parties | 57,745,000 | |||||||
Telesat Holdings Inc [Member] | Discontinued Operations [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Expenses on transactions with related party | 30,700,000 | |||||||
Interest expense on ChinaSat liability | 200,000 | |||||||
Payments to related party pursuant to the ChinaSat agreement | 2,200,000 | |||||||
Xtar [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of ownership interest | 56.00% | |||||||
MHR Funds [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of outstanding voting common stock | 38.00% | 38.00% | ||||||
Percentage of combined ownership of voting and non-voting common stock | 57.10% | 57.10% | ||||||
Transaction, Consulting Agreement [Member] | Telesat Holdings Inc [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party transaction, date | 31-Oct-07 | |||||||
Related party annual transaction rate | 7.00% | |||||||
Transaction income during the period | 5,000,000 | 5,000,000 | 5,000,000 | |||||
Transaction payments received during the period | 1,600,000 | 4,800,000 | 3,500,000 | |||||
Transaction payment in promissory notes | 4,500,000 | 0 | 1,300,000 | |||||
Redemption of notes receivable - related party | 24,100,000 | 2,600,000 | ||||||
Transaction, notes receivable | 0 | 0 | ||||||
Transaction, Consulting Agreement [Member] | Director [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party transaction, date | 14-Dec-12 | |||||||
Transaction income during the period | 8,500 | 204,000 | 204,000 | |||||
Expenses on transactions with related party | 60,000 | 1,440,000 | 1,440,000 | |||||
Transaction, Tax Indemnification [Member] | Telesat Holdings Inc [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Tax Indemnification settlement liability | 1,100,000 | |||||||
Tax indemnification settlement refund | 5,400,000 | |||||||
Tax indemnification current, net | 0 | 500,000 | ||||||
Amounts due under the transaction | 2,600,000 | |||||||
Tax indemnification, recorded liability | 2,100,000 | |||||||
Transaction, Supplemental Capacity Revenue Share [Member] | Viasat and Telesat [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Transaction income during the period | 1,000,000 | 1,000,000 | 1,300,000 | |||||
Duration of contract assigned to Telesat | 15 years | |||||||
Percentage of entity's entitlement to net revenue of related party | 50.00% | |||||||
Transaction term | 4 years | |||||||
Amounts due under the transaction | 300,000 | 300,000 | ||||||
Transaction, Management Agreement [Member] | Xtar [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Amounts due under the transaction | 6,800,000 | 6,900,000 | ||||||
Management fee charged as a percentage of revenue | 3.70% | |||||||
Annual Fee [Member] | Transaction, Consulting Agreement [Member] | Telesat Holdings Inc [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Transaction fee | 5,000,000 | |||||||
Annual Fee [Member] | Transaction, Participation in welfare plans administrative fee [Member] | Telesat Holdings Inc [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Transaction fee | 100,000 | |||||||
Monthly Fee [Member] | Transaction, Consulting Agreement [Member] | Director [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Transaction fee | 120,000 | |||||||
Transaction income during the period | 5,250 | |||||||
Expenses deductible from transaction fee | 17,000 | |||||||
Years 2003 to 2006 [Member] | Telesat Holdings Inc [Member] | Brazil [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Tax assessment imposed audit | 7,000,000 | |||||||
Years 1999 to 2009 [Member] | Telesat Holdings Inc [Member] | Hong Kong [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Amount deposited with taxing authority | $6,500,000 | |||||||
12.5% Senior Subordinated Notes Due November 2017 [Member] | Telesat Holdings Inc [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Equity method investment senior subordinated notes interest rate stated percentage | 12.50% | |||||||
Indenture maturity date | 1-Nov-17 | |||||||
Redemption date of debt instrument | 1-May-13 |
Related_Party_Transactions_Sch
Related Party Transactions (Schedule of Related Party Transactions) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2012 |
Related Party Transaction [Line Items] | |
Revenues (included in income from discontinued operations) from Telesat satellite construction contracts | $57,571 |
Telesat Holdings Inc [Member] | |
Related Party Transaction [Line Items] | |
Revenues (included in income from discontinued operations) from Telesat satellite construction contracts | 57,745 |
Milestone payments received from Telesat | $54,153 |
Selected_Quarterly_Financial_I2
Selected Quarterly Financial Information (Schedule of Quarterly Financial Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||||
Operating loss | ($1,373) | [1] | ($1,281) | [1] | ($1,336) | [1] | ($1,340) | [1] | ($5,478) | [1] | ($3,452) | [1] | ($3,361) | [1] | ($3,747) | [1] | ($5,330) | ($16,038) | ($28,774) | |
Loss from continuing operations before income taxes and equity in net income (loss) of affiliates | -2,529 | [1] | -1,643 | [1] | -1,881 | [1] | -1,977 | [1] | -5,310 | [1] | -3,365 | [1] | -3,364 | [1] | -3,491 | [1] | -8,030 | -15,530 | -27,213 | |
Equity in net income (loss)of affiliates | -44,413 | [1] | -19,283 | [1] | 64,363 | [1] | -2,169 | [1] | 12,618 | [1] | 33,358 | [1] | 132 | [1] | -7,281 | [1] | -1,502 | 38,827 | 34,340 | |
Income (loss) from continuing operations | -13,731 | [1],[2] | -25,880 | [1],[2] | 53,002 | [1],[2] | -14,818 | [1],[2] | 2,863 | [1],[2] | 37,582 | [1],[2] | -5,402 | [1],[2] | -13,587 | [1],[2] | -1,427 | 21,456 | 100,442 | |
Income (loss) from discontinued operations, net of tax provision | -17,954 | [1],[3] | -6,440 | [1],[3] | -1 | [1],[3] | -7 | [1],[3] | -525 | [1] | -1,987 | [1] | -2,488 | [1] | 123 | [1] | -24,402 | -4,877 | 320,649 | [4] |
Net income (loss) | -31,685 | [1] | -32,320 | [1] | 53,001 | [1] | -14,825 | [1] | 2,338 | [1] | 35,595 | [1] | -7,890 | [1] | -13,464 | [1] | -25,829 | 16,579 | 421,091 | |
Net income (loss) attributable to Loral common shareholders | ($31,685) | [1] | ($32,320) | [1] | $53,001 | [1] | ($14,825) | [1] | $2,338 | [1] | $35,595 | [1] | ($7,890) | [1] | ($13,464) | [1] | ||||
Basic income (loss) per share from continuing operations | ($0.44) | [1] | ($0.84) | [1] | $1.71 | [1] | ($0.48) | [1] | $0.09 | [1] | $1.22 | [1] | ($0.18) | [1] | ($0.44) | [1] | ($0.05) | $0.70 | $3.27 | |
Basic income (loss) per share from discontinued operations, net of tax | ($0.58) | [1] | ($0.21) | [1] | ($0.02) | [1] | ($0.06) | [1] | ($0.08) | [1] | ($0.79) | ($0.16) | $10.45 | |||||||
Basic income (loss) per share | ($1.02) | [1] | ($1.05) | [1] | $1.71 | [1] | ($0.48) | [1] | $0.07 | [1] | $1.16 | [1] | ($0.26) | [1] | ($0.44) | [1] | ($0.84) | $0.54 | $13.72 | |
Diluted income (loss) per share from continuing operations | ($0.44) | [1] | ($0.84) | [1] | $1.67 | [1] | ($0.48) | [1] | $0.09 | [1] | $1.19 | [1] | ($0.18) | [1] | ($0.44) | [1] | ($0.05) | $0.67 | $3.22 | |
Diluted income (loss) per share from discontinued operations, net of tax | ($0.58) | [1] | ($0.21) | [1] | ($0.02) | [1] | ($0.06) | [1] | ($0.08) | [1] | ($0.79) | ($0.16) | $10.35 | |||||||
Diluted income (loss) per share | ($1.02) | [1] | ($1.05) | [1] | $1.67 | [1] | ($0.48) | [1] | $0.07 | [1] | $1.13 | [1] | ($0.26) | [1] | ($0.44) | [1] | ($0.84) | $0.51 | $13.57 | |
[1] | The quarterly earnings per share information is computed separately for each period. Therefore, the sum of such quarterly per share amounts may differ from the total for the year. | |||||||||||||||||||
[2] | Variations in income from continuing operations among quarters in 2014 and 2013 are primarily the result of (i) the effect of changes in foreign exchange rates between the Canadian dollar and the U.S. dollar on our equity in net income (loss) of Telesat and (ii) the limitation on recording our portion of Telesatbs net income or loss due to the reduction of the carrying amount of our investment in Telesat to zero as a result of the excess of cash dividends received from Telesat in 2012. Equity in net income (loss) of affiliates for the quarter ended December 31, 2014 included an impairment charge to reduce our investment in XTAR to its fair value. Equity in net income (loss) of affiliates for the quarter ended March 31, 2013 included expense related to refinancing. | |||||||||||||||||||
[3] | Loss from discontinued operations, net of tax, for the quarters ended September 30, 2014 and December 31, 2014 includes the effects of the settlement of the ViaSat Suit and the allocation of the settlement between Loral and MDA, parent of SS/L (see Note 15). | |||||||||||||||||||
[4] | Reference to the year ended December 31, 2012 in the table above is for the period January 1, 2012 to November 2, 2012, the date of the Sale. |
Schedule_II_Valuation_and_Qual1
Schedule II Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Charged to Costs and Expenses | $624 | |||
Charged to Other Accounts | 53 | |||
Allowance for Affiliate Receivables [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 6,692 | 5,246 | 4,037 | |
Charged to Costs and Expenses | 1,446 | 1,209 | ||
Balance at End of Period | 6,692 | 6,692 | 5,246 | |
Deferred Tax Valuation Allowance [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 7,228 | 7,108 | 10,887 | |
Charged to Costs and Expenses | 624 | 120 | -3,779 | |
Charged to Other Accounts | 53 | [1] | ||
Balance at End of Period | $7,905 | $7,228 | $7,108 | |
[1] | Changes in the deferred tax valuation allowance which have been charged to other accounts have been recorded in other comprehensive loss. |