Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | lorl | |
Entity Registrant Name | LORAL SPACE & COMMUNICATIONS INC. | |
Entity Central Index Key | 1,006,269 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Voting Common Stock [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 21,427,078 | |
Nonvoting Common Stock [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,505,673 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 62,148 | $ 51,433 |
Notes receivable | 33,667 | |
Income tax refund receivable | 2,464 | |
Other current assets | 1,889 | 1,786 |
Total current assets | 66,501 | 86,886 |
Investments in affiliates | 14,559 | 104,792 |
Long-term deferred tax assets | 145,994 | 112,898 |
Other assets | 126 | 50 |
Total assets | 227,180 | 304,626 |
Current liabilities: | ||
Accrued employment costs | 2,087 | 2,300 |
Other current liabilities | 12,099 | 13,424 |
Total current liabilities | 14,186 | 15,724 |
Pension and other postretirement liabilities | 17,915 | 20,793 |
Long-term liabilities | 84,602 | 92,469 |
Total liabilities | $ 116,703 | $ 128,986 |
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 | $ 1,020,090 | $ 1,017,520 |
Treasury stock (at cost), 154,494 shares of voting common stock | (9,592) | (9,592) |
Accumulated deficit | (871,775) | (803,378) |
Accumulated other comprehensive loss | (28,557) | (29,221) |
Total shareholders' equity | 110,477 | 175,640 |
Total liabilities and shareholders' equity | 227,180 | 304,626 |
Voting Common Stock [Member] | ||
Common Stock: | ||
Common stock, 0.01 par value | 216 | 216 |
Nonvoting Common Stock [Member] | ||
Common Stock: | ||
Common stock, 0.01 par value | $ 95 | $ 95 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Preferred Stock [Member] | ||
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 |
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 | 21,581,572 | 21,568,706 |
Treasury stock, shares | 154,494 | 154,494 |
Nonvoting Common Stock [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 9,505,673 | 9,505,673 |
Common stock, shares outstanding | 9,505,673 | 9,505,673 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) [Abstract] | ||||
General and administrative expenses | $ (1,652) | $ (1,281) | $ (5,349) | $ (3,957) |
Operating income (loss) | (1,652) | (1,281) | (5,349) | (3,957) |
Interest and investment income | 15 | 91 | 119 | 492 |
Interest expense | (5) | (3) | (13) | (10) |
Other income (expense) | (164) | (450) | (3,248) | (2,026) |
Income (loss) from continuing operations before income taxes and equity in net income (loss) of affiliates | (1,806) | (1,643) | (8,491) | (5,501) |
Income tax benefit (provision) | 36,934 | (4,954) | 30,901 | (25,106) |
Income (loss) from continuing operations before equity in net income (loss) of affiliates | 35,128 | (6,597) | 22,410 | (30,607) |
Equity in net income (loss) of affiliates | (38,475) | (19,283) | (90,233) | 42,911 |
(Loss) income from continuing operations | (3,347) | (25,880) | (67,823) | 12,304 |
Income (loss) from discontinued operations, net of tax provision | (208) | (6,440) | (574) | (6,448) |
Net (loss) income | (3,555) | (32,320) | (68,397) | 5,856 |
Other comprehensive income (loss), net of tax | (698) | 1,543 | 664 | 2,592 |
Comprehensive (loss) income | $ (4,253) | $ (30,777) | $ (67,733) | $ 8,448 |
Net (loss) income per share: Basic | ||||
Income (loss) from continuing operations | $ (0.11) | $ (0.84) | $ (2.19) | $ 0.40 |
Income (loss) from discontinued operations, net of tax | (0.01) | (0.21) | (0.02) | (0.21) |
Net income (loss) | (0.12) | (1.05) | (2.21) | 0.19 |
Net (loss) income per share: Diluted | ||||
Income (loss) from continuing operations | (0.11) | (0.84) | (2.19) | 0.38 |
Income (loss) from discontinued operations, net of tax | (0.01) | (0.21) | (0.02) | (0.21) |
Net income (loss) | $ (0.12) | $ (1.05) | $ (2.21) | $ 0.17 |
Weighted average common shares outstanding: | ||||
Basic | 30,933 | 30,920 | 30,926 | 30,920 |
Diluted | 30,933 | 30,920 | 30,926 | 31,004 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Voting Common Stock [Member]Common Stock [Member] | Nonvoting Common Stock [Member]Common Stock [Member] | Paid-In Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Shareholders' Equity [Member] | Total |
Balance at Dec. 31, 2013 | $ 216 | $ 95 | $ 1,015,656 | $ (9,592) | $ (777,549) | $ (20,916) | $ 207,910 | |
Balance, shares at Dec. 31, 2013 | 21,569 | 9,506 | 154 | |||||
Net income (loss) | (25,829) | |||||||
Other comprehensive income (loss) | (8,305) | |||||||
Comprehensive income (loss) | (34,134) | |||||||
Adjustment to tax benefit associated with stock-based compensation | 1,864 | 1,864 | ||||||
Balance at Dec. 31, 2014 | $ 216 | $ 95 | 1,017,520 | $ (9,592) | (803,378) | (29,221) | 175,640 | |
Balance, shares at Dec. 31, 2014 | 21,569 | 9,506 | 154 | |||||
Net income (loss) | (68,397) | $ (68,397) | ||||||
Other comprehensive income (loss) | 664 | 664 | ||||||
Comprehensive income (loss) | (67,733) | $ (67,733) | ||||||
Settlement of restricted stock units, shares | 13 | |||||||
Adjustment to tax benefit associated with stock-based compensation | 2,570 | 2,570 | ||||||
Balance at Sep. 30, 2015 | $ 216 | $ 95 | $ 1,020,090 | $ (9,592) | $ (871,775) | $ (28,557) | $ 110,477 | |
Balance, shares at Sep. 30, 2015 | 21,582 | 9,506 | 154 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating activities: | ||
Net (loss) income | $ (68,397) | $ 5,856 |
(Income) loss from discontinued operations, net of tax | 574 | 6,448 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Non-cash operating items (Note 2) | 58,069 | (22,442) |
Changes in operating assets and liabilities: | ||
Other current assets and other assets | (38) | (1) |
Accrued expenses and other current liabilities | (948) | 359 |
Income taxes receivable and payable | (3,091) | 2,725 |
Pension and other postretirement liabilities | (3,404) | (3,488) |
Long-term liabilities | 735 | 105 |
Net cash provided by (used in) operating activities - continuing operations | (16,500) | (10,438) |
Net cash provided by (used in) operating activities - discontinued operations | (8,920) | (25,854) |
Net cash provided by (used in) operating activities | (25,420) | (36,292) |
Investing activities: | ||
Tax indemnification recovery from affiliate | 5,438 | |
Capital expenditures | (102) | (4) |
Net cash provided by (used in) investing activities - continuing operations | (102) | 5,434 |
Receipt of principal, Land Note - discontinued operations | 33,667 | 67,333 |
Net cash (used in) provided by investing activities | 33,565 | 72,767 |
Financing activities: | ||
Excess tax benefit associated with stock-based compensation | 2,570 | 1,864 |
Net cash provided by (used in) financing activities - continuing operations | $ 2,570 | $ 1,864 |
Net cash provided by (used in) financing activities - discontinued operations | ||
Net cash provided by (used in) financing activities | $ 2,570 | $ 1,864 |
Increase (decrease) in cash and cash equivalents | 10,715 | 38,339 |
Cash and cash equivalents - beginning of period | 51,433 | 5,926 |
Cash and cash equivalents - end of period | $ 62,148 | $ 44,265 |
Organization and Principal Busi
Organization and Principal Business | 9 Months Ended |
Sep. 30, 2015 | |
Organization and Principal Business [Abstract] | |
Organization and Principal Business | 1. Organization and Principal Business Loral Space & Communications Inc., together with its subsidiaries (“Loral,” the “Company,” “we,” “our” and “us”) is a leading satellite communications company engaged, through our ownership interests in affiliates, in satellite-based communications services. Description of Business Loral has one operating segment consisting of satellite-based communications services. Loral participates in satellite services operations through its ownership interest in Telesat Holdings Inc. (“Telesat Holdco”) which owns Telesat Canada (“Telesat”), a global satellite services operator. Telesat owns and leases a satellite fleet that operates in geosynchronous earth orbit approximately 22,000 miles above the equator. In this orbit, satellites remain in a fixed position relative to points on the earth’s surface and provide reliable, high-bandwidth services anywhere in their coverage areas, serving as the backbone for many forms of telecommunications. Loral holds a 62.8 % economic interest and a 32.7 % voting interest in Telesat Holdco (see Note 5). We use the equity method of accounting for our ownership interest in Telesat Holdco. Loral, a Del aware 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 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 September 30, 2015 and 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 $38.3 million and $55.2 million, respectively. 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 September 30, 2015, Loral has paid $29.2 million toward the ViaSat settlement. Pursuant to the Allocation Agreement, Loral paid ViaSat $ 2.8 million in October 2015 and is obligated to make five additional equal quarterly payments to ViaSat through January 2017 totaling $14.0 million inclusive of interest at 3.25% per year (see Note 14). |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 2. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules of the Securities and Exchange Commission (“SEC”) and, in our opinion, include all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of results of operations, financial position and cash flows as of the balance sheet dates presented and for the periods presented. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to SEC rules. We believe that the disclosures made are adequate to keep the information presented from being misleading. The results of operations for the three and nine months ended September 30 , 2015 are not necessarily indicative of the results to be expected for the full year. The December 31, 2014 balance sheet has been derived from the audited consolidated financial statements at that date. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our latest Annual Report on Form 10-K filed with the SEC. Investments in Affiliates Ownership interests in Telesat and XTAR, LLC (“XTAR”) are accounted for using the equity method of accounting. Income and losses of affiliates are recorded based on our beneficial interest. Our equity in net income or loss also reflects amortization of profits eliminated, to the extent of our economic interest in Telesat and XTAR, on satellites we constructed for them while we owned SS/L and on Loral’s sale to Telesat in April 2011 of its portion of the payload on the ViaSat-1 satellite and related assets. Equity in losses of affiliates is not recognized after the carrying value of an investment, including advances and loans, has been reduced to zero, unless guarantees or other funding obligations exist. The Company monitors its equity method investments for factors indicating other-than-temporary impairment. An impairment loss 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, income taxes, including the valuation of deferred tax assets, the fair value of liabilities indemnified and our pension liabilities. Cash and Cash Equivalents As of September 30, 2015 , the Company had $ 62.1 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. 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 September 30, 2015 and December 31, 2014 (in thousands): September 30, 2015 December 31, 2014 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Cash and cash equivalents: Money market funds $ $ — $ — $ $ — $ — Note receivable: Land Note — — — — — Other current assets: Indemnification - Sale of SS/L — — — — Liabilities Long term liabilities: Indemnification - Globalstar do Brasil S.A. — — — — 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 approximated fair value as of December 31, 2014 because the stated interest rate was consistent with current market rates. The fair value of indemnifications related to the Sale was originally estimated using Monte Carlo simulation based on the potential probability weighted cash flows that would be a guarantor’s responsibility in an arm’s length transaction. The 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 14). The asset resulting from the indemnification of SS/L is for pre-closing taxes and reflects the excess of payments since inception over the estimated liability, which was originally determined using the fair value objective approach. 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 September 30, 2015 . 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. Discontinued Operations Adjustments to amounts previously reported in discontinued operations and interest expense that are directly related to the Sale are classified as discontinued operations in the statements of operations for the three and nine months ended September 30, 2015 and 2014 and in the cash flows for the nine months ended September 30, 2015 and 2014. 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 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, did not have a material impact on our consolidated financial statements. Additional Cash Flow Information The following represents non-cash activities and supplemental information to the condensed consolidated statements of cash flows (in thousands): Nine Months Ended September 30, 2015 2014 Non-cash operating items: Equity in net loss (income) of affiliates $ $ Deferred taxes Depreciation and amortization Reclassification from accumulated other comprehensive loss Net non-cash operating items – continuing operations $ $ Supplemental information: Interest paid – continuing operations $ $ Interest paid – discontinued operations $ $ — Tax payments, net of refunds - continuing operations $ $ 0 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | 3. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of tax, are as follows (in thousands): Proportionate Share of Accumulated Telesat Other Other Postretirement Comprehensive Comprehensive Benefits Loss Loss Balance at January 1, 2014 $ $ $ Other comprehensive loss before reclassification Amounts reclassified from accumulated other comprehensive loss — Net current-period other comprehensive loss Balance at December 31, 2014 Amounts reclassified from accumulated other comprehensive loss — Net current-period other comprehensive income — Balance at September 30, 2015 $ $ $ The components of other comprehensive (loss) income and related tax effects are as follows (in thousands): Three Months Ended September 30, 2015 2014 Before-Tax Tax Net-of-Tax Before-Tax Tax Net-of-Tax Amount (Provision) Benefit Amount Amount Provision Amount Amortization of prior service credits and net actuarial loss $ 205 (a) $ $ $ (a) $ $ Proportionate share of Telesat Holdco other comprehensive (loss) income Other comprehensive (loss) income $ $ $ $ $ $ Nine Months Ended September 30, 2015 2014 Before-Tax Tax Net-of-Tax Before-Tax Tax Net-of-Tax Amount Provision Amount Amount Provision Amount Settlement and amortization of prior service credits and net actuarial loss $ (a) $ $ $ (a) $ $ Proportionate share of Telesat Holdco other comprehensive income — — — Other comprehensive income $ $ $ $ $ $ (a) Reclassifications are included in general and administrative expenses. |
Receivables
Receivables | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Receivables | 4. Receivables In connection with the Sale, Loral received a three-year promissory note in the principal amount of $101 million (the “Land Note”). Loral received principal payments under the Land Note of $33.7 million and $67.3 million on March 31, 2015 and 2014, respectively. Interest on the Land Note ranged from 1.0% to 1.5% . All amounts due under the Land Note had been received as of March 31, 2015. |
Investments in Affiliates
Investments in Affiliates | 9 Months Ended |
Sep. 30, 2015 | |
Investments in Affiliates [Abstract] | |
Investments in Affiliates | 5. Investments in Affiliates Investments in affiliates consist of (in thousands): September 30, December 31, 2015 2014 Telesat Holdings Inc. $ — $ XTAR, LLC $ $ Equity in net ( loss ) income of affiliates consists of (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Telesat Holdings Inc. $ $ $ $ XTAR, LLC $ $ $ $ Telesat As of December 31, 2014 and September 30, 2015 , 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. As of September 30, 2015 , primarily as a result of foreign exchange losses, our share of Telesat’s losses exceeded our recorded cumulative equity in net income of Telesat and our initial investment by $37.4 million . In following the equity method of accounting, our investment balance in Telesat was reduced to zero as of September 30, 2015. In addition, for the nine months ended September 30, 2015, we did not record our e quity of $13.8 million in Tele sat’s other comprehensive income. Our statements of operations and comprehensive (loss) income for the three months ended September 30, 2015 and 2014 included equity in net loss of affiliates of $(3.5) million and $(1.5) million, respectively, and other comprehensive income of $5.3 million and $1.5 million, respectively, and for the nine months ended September 30, 2015 and 2014 included equity in net (loss) income of affiliates of $(3.5) million and $0.3 million, respectively, and other comprehensive income of $5.3 million and $0.4 million, respectively, that should have been recognized in prior periods. These adjustments, which related to our investment in Telesat, consisted primarily of foreign exchange gains and losses. The Company has not revised previous financial statements for these adjustments based on its belief that the effect of such adjustments is not material to the financial statements taken as a whole. The ability of Telesat to pay dividends or certain other restricted payments as well as consulting fees in cash to Loral is governed by applicable covenants in Telesat’s debt and shareholder agreements. Under Telesat’s credit agreement and the indenture for Telesat’s 6 % senior notes, dividends or certain other restricted payments may be paid only if there is a sufficient capacity under a restricted payment basket, which is based on a formula of cumulative consolidated EBITDA less 1.4 times cumulative consolidated interest expense. Under the 6% senior note indenture and credit agreement, Telesat is generally permitted to pay consulting fees to Loral in cash. Our general and administrative expenses are net of income related to consulting fees of $ 1.25 million for each of the three month periods ended September 30 , 2015 and 2014 and $3.8 million for each of the nine month periods ended September 30 , 2015 and 2014. For each of the nine month periods ended September 30 , 2015 and 2014, Loral received payments in cash from Telesat, net of withholding taxes, of $3.6 million for consulting fees. The contribution of Loral Skynet, a wholly owned subsidiary of Loral prior to its contribution to Telesat in 2007, was recorded by Loral at the historical book value of our retained interest combined with the gain recognized on the contribution. However, the contribution was recorded by Telesat at fair value. Accordingly, the amortization of Telesat fair value adjustments applicable to the Loral Skynet assets and liabilities is proportionately eliminated in determining our share of the net income or losses of Telesat. Our equity in net income or loss of Telesat also reflects amortization of profits eliminated, to the extent of our economic interest in Telesat, on satellites we constructed for Telesat while we owned SS/L and on Loral’s sale to Telesat in April 2011 of its portion of the payload on the ViaSat-1 satellite and related assets. In connection with the acquisition of our ownership interest in Telesat in 2007, Loral retained the benefit of tax recoveries related to transferred assets and indemnified Telesat (“Telesat Indemnification”) for certain liabilities including Loral Skynet’s tax liabilities arising prior to January 1, 2007. During the three months ended March 31, 2014, Loral and Telesat settled several of the Telesat Indemnification tax disputes (see Note 15) resulting in a net 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. The following table presents summary financial data for Telesat in accordance with U.S. GAAP, for the three and nine months ended September 30 , 2015 and 2014 and as of September 30 , 2015 and December 31, 2014 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Statement of Operations Data: Revenues $ $ $ $ Operating expenses Depreciation, amortization and stock-based compensation Loss on disposition of long lived assets Operating income Interest expense Foreign exchange loss Gain on financial instruments Other income Income tax provision Net income (loss) $ $ $ $ September 30, December 31, 2015 2014 Balance Sheet Data: Current assets $ $ Total assets Current liabilities Long-term debt, including current portion Total liabilities Shareholders’ equity Telesat had capital expenditures of $57.0 million and $59. 8 million for the nine months ended September 30 , 2015 and 2014, 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. During the fourth quarter of 2014, we recorded a non-cash impairment charge of $18.7 million related to a decline in fair value of our investment that was determined to be other-than-temporary. We recorded an additional non-cash impairment charge of approximately $8 million during the three months ended September 30, 2015, primarily as a result of an increase in the discount rate used to value our investment in XTAR . A decline in XTAR’s projected revenues or increase in the discount rate used in estimating the fair value of our investment in XTAR may result in a future impairment charge. XTAR’s lease obligation to Hisdesat for the XTAR-LANT transponders (the “Lease Obligation”) requires payments by XTAR of $ 26 million in 2015, with increases thereafter to a maximum of $ 28 million per year through the end of the useful life of the satellite which is estimated to be in 2022. Under this lease agreement, Hisdesat may also be entitled under certain circumstances to a share of the revenues generated on the XTAR-LANT transponders. In March 2009, XTAR entered into an agreement with Hisdesat pursuant to which the past due balance on XTAR-LANT transponders of $ 32.3 million as of December 31, 2008, together with a deferral of $ 6.7 million in payments due in 2009, is 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 September 30, 2015 were $ 29.2 million . As of September 30, 2015 and December 31, 2014, XTAR had past-due liabilities to Hisdesat of $14.5 million and $5.4 million, re spectively, for a portion of the Lease Obligation and the Catch-Up Payments. XTAR has also agreed that XTAR’s excess cash balance (as defined) will be applied towards making limited payments on future lease obligations, as well as payments of other amounts owed to Hisdesat, Telesat and Loral for services provided by them to XTAR (see Note 15). The ability of XTAR to pay dividends and management fees in cash to Loral is governed by XTAR’s operating agreement. The following table presents summary financial data for XTAR for the three and nine months ended September 30 , 2015 and 2014 and as of September 30, 2015 and December 31, 2014 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Statement of Operations Data: Revenues $ $ $ $ Operating expenses Depreciation and amortization Operating loss Net loss September 30, December 31, 2015 2014 Balance Sheet Data: Current assets $ $ Total assets Current liabilities Total liabilities Members’ equity Other As of September 30, 2015 and December 31, 2014, 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 | 9 Months Ended |
Sep. 30, 2015 | |
Other Current Liabilities [Abstract] | |
Other Current Liabilities | 6. Other Current Liabilities Other current liabilities consists of (in thousands): September 30, December 31, 2015 2014 SS/L indemnification liability relating to ViaSat Suit settlement (see Note 14) $ $ Accrued professional fees Pension and other postretirement liabilities — Deferred tax liability — Other $ $ |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | 7. Income Taxes The following summarizes our income tax benefit ( provision ) on the loss from continuing operations (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Total current income tax provision $ $ $ $ Total deferred income tax benefit (provision) Income tax benefit (provision) $ $ $ $ At September 30, 2015, income tax refund receivable on our condensed consolidated balance sheet included $2.1 million from the carryback of our tax loss from 2014 against taxes previously paid for 2012. We expect to receive this tax refund in 2016. Subsequent to the Sale, to the extent that profitability from operations is not sufficient to realize the benefit from our remaining net deferred tax assets, we would generate sufficient taxable income from the appreciated value of our Telesat investment, which currently has a nominal tax basis, in order to prevent federal net operating losses from expiring and realize the benefit of all remaining deferred tax assets. The following summarizes amounts for uncertain tax positions (“UTPs”) included in our income tax benefit ( provision ) (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Current provision for UTPs $ $ $ $ Deferred benefit for UTPs Tax provision for UTPs $ $ $ $ As of September 30, 2015, we had unrecognized tax benefits relating to UTPs of $78 million. Pursuant to the Purchase Agreement for the Sale, we are obligated to indemnify SS/L for taxes related to periods prior to the closing of the transaction. The Company recognizes interest and penalties related to income taxes in income tax expense on a quarterly basis. As of September 30, 2015, we have accrued approximately $7.3 million and $7.7 million for the payment of potential tax-related interest and penalties, respectively. The Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities for years prior to 2007 . In addition, the statute of limitations for assessment of additional tax has expired with regard to the Company’s federal income tax returns filed for 2008, 2009, 2010 and 2011 and state and local income tax returns filed for 2008 and 2009 . Earlier years related to certain foreign jurisdictions remain subject to examination. Various federal, state and foreign income tax returns are currently under examination. However, to the extent allowed by law, the tax authorities may have the right to examine prior periods where net operating losses were generated and carried forward, and make adjustments up to the amount of the net operating loss carryforward. While we intend to contest any future tax assessments for UTPs, 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 2012 and state income tax returns filed for 2007, 2010 and 2011, potentially resulting in a $33.7 million reduction to our unrecognized tax benefits. The following summarizes the changes to our liabilities for UTPs included in long-term liabilities in the condensed consolidated balance sheets (in thousands): Nine Months Ended September 30, 2015 2014 Liabilities for UTPs: Opening balance — January 1 $ $ Current provision (benefit) for: Unrecognized tax benefits — Potential additional interest Potential penalty adjustment — Statute expirations Tax settlements — Ending balance $ $ As of September 30, 2015 , if our positions are sustained by the taxing authorities, the Company’s income tax provision from continuing operations would be reduced by approximately $36.3 million . Other than as described above, there were no significant changes to our UTPs during the nine months ended September 30 , 2015 and 2014, and we do not anticipate any other significant changes to our unrecognized tax benefits during the next twelve months. |
Long-Term Liabilities
Long-Term Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Long-Term Liabilities [Abstract] | |
Long-Term Liabilities | 8. Long-Term Liabilities Long-term liabilities consists of (in thousands): September 30, December 31, 2015 2014 SS/L indemnification liability relating to ViaSat Suit settlement (see Note 14) $ $ Indemnification liabilities - other (see Note 14) Deferred tax liability - Liabilities for uncertain tax positions Other $ $ |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | 9. Shareholders’ Equity Treasury Stock In November 2011, our Board of Directors authorized the purchase of up to 800,000 shares of our voting common stock. These purchases may be made from time to time in the open m a rket 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. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 10. Stock-Based Compensation Stock Plans The Loral amended and restated 2005 stock incentive plan (the “Stock Incentive Plan”) allows for the grant of several forms of stock-based compensation awards including stock options, stock appreciation rights, restricted stock, restricted stock units, stock bonuses and other stock-based awards (collectively, the “Awards”). The total number of shares of voting common stock reserved and available for issuance under the Stock Incentive Plan is 1, 390 , 880 shares of which 1,31 5 , 618 were available for future grant at September 30, 2015 . This number of shares of voting common stock available for issuance would be reduced if restricted stock units are settled in voting common stock rather than in cash. 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. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 11. Earnings Per Share Telesat has awarded employee stock options, which, if exercised, would result in dilution of Loral’s ownership interest in Telesat to approximately 62.0 %. 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): Nine Months Ended September 30, 2014 Income from continuing operations — basic $ Less: Adjustment for dilutive effect of Telesat stock options Income from continuing operations — diluted $ Telesat stock options are excluded from the calculation of diluted loss per share for the three months ended September 30, 2015 and 2014, and nine months ended September 30 , 201 5 as the effect would be antidilutive. Basic income 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): Nine Months Ended September 30, 2014 Weighted average common shares outstanding Unconverted restricted stock units Common shares outstanding for diluted earnings per share For the three months ended September 30, 2015 and 2014, and nine months ended September 30 , 201 5 , 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): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 Unconverted restricted stock units |
Pensions and Other Employee Ben
Pensions and Other Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2015 | |
Pensions and Other Employee Benefit Plans [Abstract] | |
Pensions and Other Employee Benefit Plans | 12. Pensions and Other Employee Benefit Plans The following tables provide the components of net periodic cost included in general and administrative expenses for our qualified retirement plan (the “Pension Benefits”) and health care and life insurance benefits for retired employees and dependents (the “Other Benefits”) for the three and nine months ended September 30 , 2015 and 2014 (in thousands): Pension Benefits Three Months Ended September 30, Other Benefits Three Months Ended September 30, 2015 2014 2015 2014 Service cost $ $ $ — $ Interest cost Expected return on plan assets — — Amortization of net actuarial loss Amortization of prior service credits — — Net periodic cost $ $ $ $ Pension Benefits Nine Months Ended September 30, Other Benefits Nine Months Ended September 30, 2015 2014 2015 2014 Service cost $ $ $ $ Interest cost Expected return on plan assets — — Recognition due to settlement — — — Amortization of net actuarial loss Amortization of prior service credits — — Net periodic cost $ $ $ $ Effective January 1, 2015, retiree medical coverage for retirees age 65 or over and their dependents was discontinued . In January 2015, the Company made discretionary one-time payment s to retirees affected to assist them in purchasing alternate coverage. In August 2015, the Company made discretionary one-time payments of $0.8 million to other participants to settle the remaining liability for retiree medical coverage applicable to benefits at age 65 and later. The effect on postretirement benefit expense for the nine months ended September 30 , 2015 of the one-time payment s to participants is included in the table above as recognition due to settlement. |
Financial Instruments, Derivati
Financial Instruments, Derivative Instruments and Hedging | 9 Months Ended |
Sep. 30, 2015 | |
Financial Instruments, Derivative Instruments and Hedging [Abstract] | |
Financial Instruments, Derivative Instruments and Hedging | 13. Financial Instruments, Derivative Instruments and Hedging Financial Instruments The carrying amount of cash equivalents approximates fair value because of the short maturity of those instruments. The carrying amount of the Land Note, prior to its repayment in full on March 31, 2015, approximated fair value because the stated interest rate was 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 September 30, 2015 and December 31, 2014. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies Financial Matters In the fourth quarter of 2012, we sold our former subsidiary, SS/L, to MDA pursuant to the Purchase Agreement. Under the terms of the Purchase Agreement, we are obligated to indemnify MDA from (1) liabilities with respect to certain pre-closing taxes; and (2) certain litigation costs and litigation damages relating to the ViaSat Suit. Our condensed consolidated balance sheets include an indemnification refund receivabl e of $0.9 million and $0.4 million as of September 30 , 2015 and December 31, 2014 , respectively . This receivable represents payments to date net of the estimated fair value of the liability for our indemnification for 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 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. Our condensed consolidated balance sheets include liabilities of $0.9 million and $1.0 million as of September 30 , 2015 and December 31, 2014, respectively, for indemnification liabilities relating to the sale of GdB. See Note 15— Related Party Transactions — Transactions with Affiliates — Telesat for commitments and contingencies relating to our agreement to indemnify Telesat for certain liabilities and our arrangements with ViaSat and Telesat. Legal Proceedings ViaSat 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 September 30, 2015 and 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 $38 . 3 million and $55.2 million, respectively. 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 September 30, 2015 , Loral has paid $2 9 . 2 million toward the ViaSat settlement. Pursuant to the Allocation Agreement, Loral paid ViaSat $2.8 million in October 2015 and is obligated to make five additional equal quarterly payments to ViaSat through January 2017 totaling $1 4 . 0 million inclusive of interest at 3.25% per year. Our condensed consolidated balance sheets as of September 30, 2015 and December 31, 2014 include indemnification liabilities related to ViaSat Settlement Agreement of $16.0 million and $23.3 million, respectively. Because the payment obligations to ViaSat are joint and several, if MDA and SS/L were to default on all or part of their payment obligations to ViaSat, Loral would be obligated to pay ViaSat any amounts not paid by MDA and SS/L. 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 | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 15. Related Party Tra nsactions MHR Fund Management LLC Mark H. Rachesky, President of MHR Fund Management LLC (“MHR”), and Janet T. Yeung, a principal and the General Counsel of MHR, are members of Loral’s board of directors. Hal Goldstein, a former managing principal of MHR, was a member of the Loral Board until May 2015. Various funds affiliated with MHR and Dr. Rachesky held, as of September 30 , 2015 and December 31, 2014, approximately 38.0 % of the outstanding voting common stock and 57.1 % of the combined outstanding voting and non-voting common stock of Loral. Transactions with Affiliates Telesat As described in Note 5, we own 62.8 % of Telesat and account for our ownership interest under the equity method of accounting. In connection with the acquisition of our ownership interest in Telesat (which we refer to as the Telesat transaction), Loral and certain of its subsidiaries, our Canadian co-owner, 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 (a “Telesat IPO”). In connection with our exploration of strategic initiatives to alter the status quo in our ownership of Telesat Holdco, in July 2015, we exercised our rights under the Shareholders Agreement to require Telesat Holdco to conduct a Telesat IPO. Specifically, we requested that Telesat Holdco issue not mor e than 25 million newly issued shares of Telesat Holdco voting common stock . We also requested the termination of the Shareholders Agreement and the elimination of certain provisions in Telesat Holdco’s Articles of Incorporation, both of which we believe are necessary to accommodate a successful public offering. If those provisions are eliminated, an impediment to the conversion of our non-voting Telesat Holdco shares to voting shares would be eliminated. Termination or modification of the Shareholders Agreement and conversion of our non-voting shares to voting shares would enable us, after the Telesat IPO and subject to the receipt of any necessary regulatory approvals, to obtain majority voting control of Telesat Holdco. Telesat Holdco is working to implement the Telesat IPO, and we are in discussions with PSP to attempt to agree on our requests regarding the Shareholders Agreement and Telesat Holdco’s Articles of Incorporation. If we are unable to reach agreement with PSP on these matters, the advice of the lead underwriter selected for the Telesat IPO will be sought to assist resolution. There can be no assurance as to whether, when or on what terms the Telesat IPO, termination or modification of the Shareholders Agreement or any requested changes to Telesat Holdco’s Articles of Incorporation may occur. If the Telesat IPO proceeds in a manner contrary to our requests we will consider options for enforcing our rights, and if the price or other terms of a Telesat IPO are not acceptable to us we may withdraw our demand for a Telesat IPO. There can be no assurance that any strategic initiatives or transaction involving Telesat, Telesat Holdco or Loral may occur, or that any particular economic, tax, structural or other objectives or benefits with respect to any initiative or transaction involving Telesat, Telesat Holdco or Loral’s interest therein will be achieved. Under the Shareholders Agreement, in the event that, except in certain limited circumstances, either (i) ownership or control, directly or indirectly, by Dr. Rachesky of Loral’s voting stock falls below certain levels other than in connection with certain specified circumstances, including an acquisition by a Strategic Competitor (as defined in the Shareholders Agreement) or (ii) there is a change in the composition of a majority of the members of the Loral Board of Directors over a consecutive two-year period without the approval of the incumbent directors, Loral will lose its veto rights relating to certain extraordinary actions by Telesat Holdco and its subsidiaries. In addition, after either of these events, PSP will have certain rights to enable it to exit from its investment in Telesat Holdco, including a right to cause Telesat Holdco to conduct an initial public offering in which PSP’s shares would be the first shares offered or, if no such offering has occurred within one year due to a lack of cooperation from Loral or Telesat Holdco, to cause the sale of Telesat Holdco and to drag along the other shareholders in such sale, subject to Loral’s right to call PSP’s shares at fair market value. The Shareholders Agreement provides for a board of directors of each of Telesat Holdco and certain of its subsidiaries, including Telesat, consisting of 10 directors, three nominated by Loral, three nominated by PSP and four independent directors to be selected by a nominating committee comprised of one PSP nominee, one nominee of Loral and one of the independent directors then in office. Each party to the Shareholders Agreement is obligated to vote all of its Telesat Holdco shares for the election of the directors nominated by the nominating committee. Pursuant to action by the board of directors taken on October 31, 2007 , Dr. Rachesky, who is non-executive Chairman of the Board of Directors of Loral, was appointed non-executive Chairman of the Board of Directors of Telesat Holdco and certain of its subsidiaries, including Telesat. In addition, Michael B. Targoff, Loral’s Vice Chairman, serves on the board of directors of Telesat Holdco and certain of its subsidiaries, including Telesat. On October 31, 2007 , Loral and Telesat entered into a consulting services agreement (the “Consulting Agreement”). Pursuant to the terms of the Consulting Agreement, Loral provides to Telesat certain non-exclusive consulting services in relation to the business of Loral Skynet which was transferred to Telesat as part of the Telesat transaction as well as with respect to certain aspects of the satellite communications business of Telesat. The Consulting Agreement has a term of seven years with an automatic renewal for an additional seven year term if Loral is not then in material default under the Shareholders Agreement. Upon expiration of the initial term 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 are net of income related to the Consulting Agreement of $ 1.25 million for each of the three month periods ended September 30 , 2015 and 2014 and $3.8 million for each of the nine month periods ended September 30 , 2015 and 2014. For each of the nine month periods ended September 30 , 2015 and 2014, Loral received payments in cash from Telesat, net of withholding taxes, of $3.6 million for consulting fees. We had no notes receivable from Telesat as of September 30 , 2015 and December 31, 2014 related to the Consulting Agreement. The Telesat Indemnification (as defined in Note 5 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. There can be no assurance that there will be no future claims under the Telesat Indemnification related to tax disputes. Loral, along with Telesat Holdco, Telesat, PSP and 4440480 Canada Inc., an indirect wholly-owned subsidiary of Loral (the “Special Purchaser”), entered into grant agreements (the “Grant Agreements”) with certain executives of Telesat (each, a “Participant” and collectively, the “Participants”). Each of the Participants was, at the time, an executive of Telesat. The Grant Agreements confirm grants of Telesat Holdco stock options (including tandem SAR rights) to the Participants and provide for certain rights, obligations and restrictions related to such stock options, which include, among other things: (w) the possible obligation of the Special Purchaser to purchase the shares in the place of Telesat Holdco should Telesat Holdco be prohibited by applicable law or under the terms of any credit agreement applicable to Telesat Holdco from purchasing such shares, or otherwise default on such purchase obligation, pursuant to the terms of the Grant Agreements; and (x) the obligation of the Special Purchaser to purchase shares upon exercise by Telesat Holdco of its call right under Telesat Holdco’s Management Stock Incentive Plan in the event of a Participant’s termination of employment; and, in the case of certain executives, (y) the right of each such Participant to require the Special Purchaser or Loral to purchase a portion of the shares in Telesat Holdco owned by him in the event of exercise after termination of employment to cover taxes that are greater than the minimum withholding amount; and (z) the right of each such Participant to require Telesat Holdco to cause the Special Purchaser or Loral to purchase a portion of the shares in Telesat Holdco owned by him, or that are issuable to him under Telesat Holdco's Management Stock Incentive Plan at the relevant time, in the event that more than 90 % of Loral’s common stock is acquired by an unaffiliated third party that does not also purchase all of PSP's and its affiliates' interest in Telesat Holdco. The Grant Agreements further provide that, in the event the Special Purchaser is required to purchase shares, such shares, together with the obligation to pay for such shares, shall be transferred to a subsidiary of the Special Purchaser, which subsidiary shall be wound up into Telesat Holdco, with Telesat Holdco agreeing to the acquisition of such subsidiary by Telesat Holdco from the Special Purchaser for nominal consideration and with the purchase price for the shares being paid by Telesat Holdco within ten (10) business days after completion of the winding-up of such subsidiary into Telesat Holdco. ViaSat/Telesat In connection with an agreement entered into between SS/L and ViaSat for the construction by SS/L for ViaSat of a high capacity broadband satellite called ViaSat-1, on January 11, 2008, we entered into certain agreements, pursuant to which we invested in the Canadian coverage portion of the ViaSat-1 satellite. Until his resignation in February 2012, Michael B. Targoff served, and another Loral director currently serves, as a member of the ViaSat Board of Directors. On April 11, 2011, Loral assigned to Telesat and Telesat assumed from Loral all of Loral’s rights and obligations with respect to the ViaSat-1 satellite payload providing coverage into Canada and all related agreements. Loral also assigned to Telesat and Telesat assumed Loral’s 15 -year contract with Xplornet Communications, Inc. (“Xplornet”) (formerly known as Barrett Xplore Inc.) for delivery of high throughput satellite Ka-band capacity and gateway services for broadband services in Canada. In connection with the assignments, Loral is entitled to receive one-half of any net revenue earned by Telesat in connection with the leasing of certain supplemental capacity on the payload to its customers during the first four years after the commencement of service using the supplemental capacity. Under this arrangement, we earned approximately $0.2 million and $0.3 million for the three months ended September 30, 2015 and 2014, respectively, and $0.6 million and $0.8 million for the nine months ended September 30, 2015 and 2014, respectively. We had a receivable from Telesat of $0.2 million and $ 0.3 million as of September 30, 2015 and December 31, 2014, respectively, related to this arrangement. Other As described in Note 5, we own 56% of XTAR, a joint venture between Loral and Hisdesat and account for our investment in XTAR under the equity method of accounting. SS/L constructed XTAR’s satellite, which was successfully launched in February 2005. XTAR and Loral have entered into a management agreement whereby Loral provides general and specific services of a technical, financial and administrative nature to XTAR. For the services provided by Loral, XTAR, until December 31, 2013, was charged a quarterly management fee equal to 3.7% of XTAR’s quarterly gross revenues. The amount due to Loral primarily due to the management agreement as of September 30 , 2015 and December 31, 2014 was $ 6.8 million. 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 nine months ended September 30 , 2015 and 2014, and we had a full allowance against these receivables as of September 30 , 2015 and December 31, 2014. 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 and reimburses the Company for certain expenses. During the three and nine months ended September 30 , 2015, Mr. Targoff earned $360,000 and $1,080,000 , respectively, and reimbursed Loral net expenses of $15,750 and $47,250 , respectively, and during the three and nine months ended September 30 , 2014, he earned $360,000 and $1,080,000 , respectively, and reimbursed Loral net expenses of $51,000 and $153,000 , respectively. |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 9 Months Ended |
Sep. 30, 2015 | |
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, income taxes, including the valuation of deferred tax assets, the fair value of liabilities indemnified and our pension liabilities. |
Cash and Cash Equivalents | Cash and Cash Equivalents As of September 30, 2015 , the Company had $ 62.1 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. 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 September 30, 2015 and December 31, 2014 (in thousands): September 30, 2015 December 31, 2014 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Cash and cash equivalents: Money market funds $ $ — $ — $ $ — $ — Note receivable: Land Note — — — — — Other current assets: Indemnification - Sale of SS/L — — — — Liabilities Long term liabilities: Indemnification - Globalstar do Brasil S.A. — — — — 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 approximated fair value as of December 31, 2014 because the stated interest rate was consistent with current market rates. The fair value of indemnifications related to the Sale was originally estimated using Monte Carlo simulation based on the potential probability weighted cash flows that would be a guarantor’s responsibility in an arm’s length transaction. The 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 14). The asset resulting from the indemnification of SS/L is for pre-closing taxes and reflects the excess of payments since inception over the estimated liability, which was originally determined using the fair value objective approach. 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 September 30, 2015 . 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. |
Discontinued Operations | Discontinued Operations Adjustments to amounts previously reported in discontinued operations and interest expense that are directly related to the Sale are classified as discontinued operations in the statements of operations for the three and nine months ended September 30, 2015 and 2014 and in the cash flows for the nine months ended September 30, 2015 and 2014. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015 and December 31, 2014 (in thousands): September 30, 2015 December 31, 2014 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Cash and cash equivalents: Money market funds $ $ — $ — $ $ — $ — Note receivable: Land Note — — — — — Other current assets: Indemnification - Sale of SS/L — — — — Liabilities Long term liabilities: Indemnification - Globalstar do Brasil S.A. — — — — |
Additional Cash Flow Information | The following represents non-cash activities and supplemental information to the condensed consolidated statements of cash flows (in thousands): Nine Months Ended September 30, 2015 2014 Non-cash operating items: Equity in net loss (income) of affiliates $ $ Deferred taxes Depreciation and amortization Reclassification from accumulated other comprehensive loss Net non-cash operating items – continuing operations $ $ Supplemental information: Interest paid – continuing operations $ $ Interest paid – discontinued operations $ $ — Tax payments, net of refunds - continuing operations $ $ |
Accumulated Other Comprehensi24
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss, net of tax, are as follows (in thousands): Proportionate Share of Accumulated Telesat Other Other Postretirement Comprehensive Comprehensive Benefits Loss Loss Balance at January 1, 2014 $ $ $ Other comprehensive loss before reclassification Amounts reclassified from accumulated other comprehensive loss — Net current-period other comprehensive loss Balance at December 31, 2014 Amounts reclassified from accumulated other comprehensive loss — Net current-period other comprehensive income — Balance at September 30, 2015 $ $ $ |
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): Three Months Ended September 30, 2015 2014 Before-Tax Tax Net-of-Tax Before-Tax Tax Net-of-Tax Amount (Provision) Benefit Amount Amount Provision Amount Amortization of prior service credits and net actuarial loss $ 205 (a) $ $ $ (a) $ $ Proportionate share of Telesat Holdco other comprehensive (loss) income Other comprehensive (loss) income $ $ $ $ $ $ Nine Months Ended September 30, 2015 2014 Before-Tax Tax Net-of-Tax Before-Tax Tax Net-of-Tax Amount Provision Amount Amount Provision Amount Settlement and amortization of prior service credits and net actuarial loss $ (a) $ $ $ (a) $ $ Proportionate share of Telesat Holdco other comprehensive income — — — Other comprehensive income $ $ $ $ $ $ (a) Reclassifications are included in general and administrative expenses. |
Investments in Affiliates (Tabl
Investments in Affiliates (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments in and Advances to Affiliates [Line Items] | |
Investments in Affiliates | Investments in affiliates consist of (in thousands): September 30, December 31, 2015 2014 Telesat Holdings Inc. $ — $ XTAR, LLC $ $ |
Equity in Net (Loss) Income of Affiliates | Equity in net ( loss ) income of affiliates consists of (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Telesat Holdings Inc. $ $ $ $ XTAR, LLC $ $ $ $ |
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 three and nine months ended September 30 , 2015 and 2014 and as of September 30 , 2015 and December 31, 2014 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Statement of Operations Data: Revenues $ $ $ $ Operating expenses Depreciation, amortization and stock-based compensation Loss on disposition of long lived assets Operating income Interest expense Foreign exchange loss Gain on financial instruments Other income Income tax provision Net income (loss) $ $ $ $ September 30, December 31, 2015 2014 Balance Sheet Data: Current assets $ $ Total assets Current liabilities Long-term debt, including current portion Total liabilities Shareholders’ equity |
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 three and nine months ended September 30 , 2015 and 2014 and as of September 30, 2015 and December 31, 2014 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Statement of Operations Data: Revenues $ $ $ $ Operating expenses Depreciation and amortization Operating loss Net loss September 30, December 31, 2015 2014 Balance Sheet Data: Current assets $ $ Total assets Current liabilities Total liabilities Members’ equity |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Current Liabilities [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consists of (in thousands): September 30, December 31, 2015 2014 SS/L indemnification liability relating to ViaSat Suit settlement (see Note 14) $ $ Accrued professional fees Pension and other postretirement liabilities — Deferred tax liability — Other $ $ |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes [Abstract] | |
Summary of Income Tax Benefit (Provision) | The following summarizes our income tax benefit ( provision ) on the loss from continuing operations (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Total current income tax provision $ $ $ $ Total deferred income tax benefit (provision) Income tax benefit (provision) $ $ $ $ |
Summary of Uncertain Tax Positions Included in Income Tax Provision | The following summarizes amounts for uncertain tax positions (“UTPs”) included in our income tax benefit ( provision ) (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Current provision for UTPs $ $ $ $ Deferred benefit for UTPs Tax provision for UTPs $ $ $ $ |
Summary of Changes to Company's Liabilities for UTPs | The following summarizes the changes to our liabilities for UTPs included in long-term liabilities in the condensed consolidated balance sheets (in thousands): Nine Months Ended September 30, 2015 2014 Liabilities for UTPs: Opening balance — January 1 $ $ Current provision (benefit) for: Unrecognized tax benefits — Potential additional interest Potential penalty adjustment — Statute expirations Tax settlements — Ending balance $ $ |
Long-Term Liabilities (Tables)
Long-Term Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Long-Term Liabilities [Abstract] | |
Schedule of Long Term Liabilities | Long-term liabilities consists of (in thousands): September 30, December 31, 2015 2014 SS/L indemnification liability relating to ViaSat Suit settlement (see Note 14) $ $ Indemnification liabilities - other (see Note 14) Deferred tax liability - Liabilities for uncertain tax positions Other $ $ |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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): Nine Months Ended September 30, 2014 Income from continuing operations — basic $ Less: Adjustment for dilutive effect of Telesat stock options Income from continuing operations — diluted $ |
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): Nine Months Ended September 30, 2014 Weighted average common shares outstanding Unconverted restricted stock units Common shares outstanding for diluted earnings per share |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | For the three months ended September 30, 2015 and 2014, and nine months ended September 30 , 201 5 , 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): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 Unconverted restricted stock units |
Pensions and Other Employee B30
Pensions and Other Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Pensions and Other Employee Benefit Plans [Abstract] | |
Components of Net Periodic Cost | The following tables provide the components of net periodic cost included in general and administrative expenses for our qualified retirement plan (the “Pension Benefits”) and health care and life insurance benefits for retired employees and dependents (the “Other Benefits”) for the three and nine months ended September 30 , 2015 and 2014 (in thousands): Pension Benefits Three Months Ended September 30, Other Benefits Three Months Ended September 30, 2015 2014 2015 2014 Service cost $ $ $ — $ Interest cost Expected return on plan assets — — Amortization of net actuarial loss Amortization of prior service credits — — Net periodic cost $ $ $ $ Pension Benefits Nine Months Ended September 30, Other Benefits Nine Months Ended September 30, 2015 2014 2015 2014 Service cost $ $ $ $ Interest cost Expected return on plan assets — — Recognition due to settlement — — — Amortization of net actuarial loss Amortization of prior service credits — — Net periodic cost $ $ $ $ |
Organization and Principal Bu31
Organization and Principal Business (Narrative) (Details) $ in Millions | Nov. 02, 2012 | Oct. 31, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) |
Organization and Principal Business [Line Items] | |||||
Date of incorporation | Jun. 24, 2005 | ||||
Date of emergence from bankruptcy proceedings | Nov. 21, 2005 | ||||
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 | Nov. 2, 2012 | ||||
Date purchase agreement entered into | Jun. 26, 2012 | ||||
Date of first modification of purchase agreement | Oct. 30, 2012 | ||||
Date of second modification of purchase agreement | Mar. 28, 2013 | ||||
ViaSat Lawsuit [Member] | Sale of SS/L [Member] | |||||
Organization and Principal Business [Line Items] | |||||
Settlement agreement date | September 2,014 | ||||
Settlement agreement, plaintiff's name | ViaSat, Inc. | ||||
Settlement agreement, counterparty's name | SS/L | ||||
Lawsuit settlement amount, joint & several liability | $ 100 | ||||
Lawsuit settlement initial payment, joint & several liability | 40 | ||||
Lawsuit settlement future payments, joint & several liability | $ 60 | $ 38.3 | $ 55.2 | ||
Lawsuit settlement installment number, joint and several liability | 10 | ||||
Lawsuit settlement amount of each installment, joint & several liability | $ 6.9 | ||||
Lawsuit settlement installment start date, joint & several liability | Oct. 15, 2014 | ||||
Lawsuit settlement installment end date, joint & several liability | Jan. 15, 2017 | ||||
Lawsuit settlement installment frequency, joint & several liability | quarterly | ||||
Obligation with joint and several liability arrangement, amount recognized | 45 | ||||
Obligation with joint and several liability amount payable by counterparty | $ 55 | ||||
Cumulative payments for legal settlements | $ 29.2 | ||||
ViaSat Lawsuit [Member] | Sale of SS/L [Member] | Subsequent Event [Member] | |||||
Organization and Principal Business [Line Items] | |||||
Payments for legal settlements | $ 2.8 | ||||
Lawsuit settlement installments remaining | 5 | ||||
Lawsuit settlement, total amount outstanding installments | $ 14 | ||||
Lawsuit settlement installment interest rate | 3.25% |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Basis of Presentation [Abstract] | ||||
Cash and cash equivalents | $ 62,148 | $ 51,433 | $ 44,265 | $ 5,926 |
Basis of Presentation (Assets a
Basis of Presentation (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Level 2 [Member] | ||
Assets and Liabilities | ||
Note receivable, Land Note | ||
Level 3 [Member] | ||
Assets and Liabilities | ||
Note receivable, Land Note | $ 33,667 | |
Money Market Funds [Member] | Level 1 [Member] | ||
Assets and Liabilities | ||
Cash equivalents | $ 60,113 | $ 42,432 |
Money Market Funds [Member] | Level 2 [Member] | ||
Assets and Liabilities | ||
Cash equivalents | ||
Sale of SS/L [Member] | Level 2 [Member] | ||
Assets and Liabilities | ||
Indemnifications liabilities | ||
Sale of SS/L [Member] | Level 3 [Member] | ||
Assets and Liabilities | ||
Indemnifications liabilities | $ (920) | $ (428) |
Globalstar do Brasil S.A. [Member] | Level 2 [Member] | ||
Assets and Liabilities | ||
Indemnifications liabilities | ||
Globalstar do Brasil S.A. [Member] | Level 3 [Member] | ||
Assets and Liabilities | ||
Indemnifications liabilities | $ 924 | $ 972 |
Basis of Presentation (Addition
Basis of Presentation (Additional Cash Flow Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Non-cash operating items: | ||||
Equity in net loss (income) of affiliates | $ 38,475 | $ 19,283 | $ 90,233 | $ (42,911) |
Deferred taxes | (33,248) | 20,101 | ||
Depreciation and amortization | 26 | 32 | ||
Amortization of prior service credit and actuarial (gain) loss | 1,058 | 336 | ||
Net non-cash operating items - continuing operations | 58,069 | (22,442) | ||
Continuing Operations [Member] | ||||
Supplemental information: | ||||
Interest paid | 310 | 10 | ||
Tax payments (refunds) | 1,785 | $ 209 | ||
Discontinued Operations [Member] | ||||
Supplemental information: | ||||
Interest paid | $ 1,234 |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Income (Loss) (Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Accumulated other comprehensive income (loss), beginning balance | $ (29,221) | ||||
Net current-period other comprehensive income (loss) | $ (698) | $ 1,543 | 664 | $ 2,592 | |
Accumulated other comprehensive income (loss), ending balance | (28,557) | (28,557) | $ (29,221) | ||
Postretirement Benefits [Member] | |||||
Accumulated other comprehensive income (loss), beginning balance | (13,982) | (9,171) | (9,171) | ||
Other comprehensive income (loss) before reclassification | (5,147) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 664 | 336 | |||
Net current-period other comprehensive income (loss) | 664 | (4,811) | |||
Accumulated other comprehensive income (loss), ending balance | (13,318) | (13,318) | (13,982) | ||
Proportionate Share of Telesat Other Comprehensive Loss [Member] | |||||
Accumulated other comprehensive income (loss), beginning balance | $ (15,239) | (11,745) | (11,745) | ||
Other comprehensive income (loss) before reclassification | $ (3,494) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||
Net current-period other comprehensive income (loss) | $ (3,494) | ||||
Accumulated other comprehensive income (loss), ending balance | (15,239) | $ (15,239) | (15,239) | ||
Accumulated Other Comprehensive Loss [Member] | |||||
Accumulated other comprehensive income (loss), beginning balance | (29,221) | $ (20,916) | (20,916) | ||
Other comprehensive income (loss) before reclassification | (8,641) | ||||
Amounts reclassified from accumulated other comprehensive income (loss) | 664 | 336 | |||
Net current-period other comprehensive income (loss) | 664 | (8,305) | |||
Accumulated other comprehensive income (loss), ending balance | $ (28,557) | $ (28,557) | $ (29,221) |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Income (Loss) (Components of Other Comprehensive Income and Related Tax Effects) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Accumulated Other Comprehensive Loss [Abstract] | |||||
Amortization of prior service credits and net actuarial loss, Before-Tax Amount | [1] | $ 205 | $ 130 | $ 1,058 | $ 336 |
Proportionate share of Telesat Holdco other comprehensive income (loss), Before-Tax Amount | (1,318) | 2,334 | 3,815 | ||
Other comprehensive income (loss), Before-Tax Amount | (1,113) | 2,464 | 1,058 | 4,151 | |
Amortization of prior service credits and net actuarial loss, Tax (Provision) Benefit | (76) | (49) | (394) | (126) | |
Proportionate share of Telesat Holdco other comprehensive income (loss), Tax (Provision) Benefit | 491 | (872) | (1,433) | ||
Other comprehensive income, Tax (Provision) Benefit | 415 | (921) | (394) | (1,559) | |
Amortization of prior service credits and net actuarial gain (loss), Net-of-Tax Amount | 129 | 81 | 664 | 210 | |
Proportionate share of Telesat Holdco other comprehensive income (loss), Net-of-Tax Amount | (827) | 1,462 | 2,382 | ||
Other comprehensive income (loss), Net-of-Tax Amount | $ (698) | $ 1,543 | $ 664 | $ 2,592 | |
[1] | Reclassifications are included in general and administrative expenses. |
Receivables (Narrative) (Detail
Receivables (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2015 | Mar. 31, 2014 | Nov. 02, 2012 | Sep. 30, 2015 | Sep. 30, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Prinicipal payment received | $ 33,667 | $ 67,333 | |||
Land Note [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Land Note for sale of real estate of disposal group | $ 101,000 | ||||
Prinicipal payment received | $ 33,667 | $ 67,333 | |||
Interest rate on Land Note, start | 1.00% | ||||
Interest rate on Land Note, end | 1.50% |
Investments in Affiliates (Narr
Investments in Affiliates (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Apr. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Mar. 31, 2009USD ($) | Sep. 30, 2015USD ($)item | Sep. 30, 2014USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2008USD ($) | |
Telesat Holdings Inc [Member] | |||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||
Economic interest in affiliates | 62.80% | 62.80% | 62.80% | ||||||
Voting interest in affiliate | 32.70% | 32.70% | 32.70% | ||||||
Equity method investment unrecognized loss in equity | $ 37,400 | $ 37,400 | |||||||
Equity method investment unrecognized gain in other comprehensive income | 13,800 | ||||||||
Capital expenditures | $ 57,000 | $ 59,800 | |||||||
XTAR, LLC [Member] | |||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||
Percentage of ownership interest | 56.00% | 56.00% | |||||||
Equity Method Investment, Other than Temporary Impairment | $ 8,000 | $ 18,700 | |||||||
Lease obligation | 26,000 | $ 26,000 | |||||||
Maximum annual lease obligation | 28,000 | 28,000 | |||||||
Lease agreement, past due | $ 32,300 | ||||||||
Lease agreement, deferred amount | $ 6,700 | ||||||||
Repayment term past due and deferred lease obligation, years | 12 years | ||||||||
Deferred lease obligation, annual payment | $ 5,000 | ||||||||
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 | ||||||||
EquityMethodInvestmentInvesteePastDueLiability | $ 14,500 | $ 5,400 | $ 14,500 | ||||||
6% Senior Notes Due May 2017 [Member] | Telesat Holdings Inc [Member] | |||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||
Interest on notes | 6.00% | 6.00% | |||||||
Interest expense multiplier to determine EBITDA available for dividend distribution | item | 1.40 | ||||||||
Transaction, Consulting Agreement [Member] | Telesat Holdings Inc [Member] | |||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||
Transaction income during the period | $ 1,250 | $ 1,250 | $ 3,800 | 3,800 | |||||
Transaction payments received during the period | 3,600 | 3,600 | |||||||
Transaction, Tax Indemnification [Member] | Telesat Holdings Inc [Member] | |||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||
Transaction payments received during the period | $ 5,400 | ||||||||
Equity method investment reduction carrying value | $ 5,000 | ||||||||
Other Comprehensive Income (Loss) [Member] | Telesat Holdings Inc [Member] | |||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||
Error corrections and prior period adjustments | 5,300 | 1,500 | 5,300 | 400 | |||||
Investment Income [Member] | Telesat Holdings Inc [Member] | |||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||
Error corrections and prior period adjustments | $ (3,500) | $ (1,500) | $ (3,500) | $ 300 |
Investments in Affiliates (Inve
Investments in Affiliates (Investments in Affiliates) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | ||
Investments in affiliates | $ 14,559 | $ 104,792 |
Telesat Holdings Inc [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in affiliates | 74,329 | |
XTAR, LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in affiliates | $ 14,559 | $ 30,463 |
Investments in Affiliates (Equi
Investments in Affiliates (Equity in Net Income (Losses) of Affiliates) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity in net income (loss) of affiliates | $ (38,475) | $ (19,283) | $ (90,233) | $ 42,911 |
Telesat Holdings Inc [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in net income (loss) of affiliates | (27,913) | (17,240) | (74,329) | 48,226 |
XTAR, LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in net income (loss) of affiliates | $ (10,562) | $ (2,043) | $ (15,904) | $ (5,315) |
Investments in Affiliates (Eq41
Investments in Affiliates (Equity Method Investment, Summarized Financial Data) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Telesat Holdings Inc [Member] | |||||
Summary Financial Data: | |||||
Revenues | $ 187,937 | $ 210,163 | $ 557,313 | $ 636,552 | |
Operating expenses | (34,032) | (42,827) | (102,918) | (122,402) | |
Depreciation, amortization and stock-based compensation | (46,239) | (58,955) | (145,067) | (175,713) | |
Gain (loss) on disposition of long lived asset | (7) | (164) | (28) | (226) | |
Operating income (loss) | 107,659 | 108,217 | 309,300 | 338,211 | |
Interest expense | (34,533) | (47,573) | (104,804) | (142,589) | |
Foreign exchange gains (losses) | (164,235) | (96,093) | (333,076) | (105,177) | |
Gains (losses) on financial instruments | 2,968 | 15,146 | 4,164 | 31,517 | |
Other income (expense) | 857 | 841 | 2,232 | 3,007 | |
Income tax provision | (16,289) | (7,484) | (54,368) | (46,640) | |
Net income (loss) | (103,573) | (26,946) | (176,552) | 78,329 | |
Current assets | 599,482 | 599,482 | $ 497,287 | ||
Total assets | 4,086,689 | 4,086,689 | 4,552,613 | ||
Current liabilities | 185,420 | 185,420 | 227,200 | ||
Long-term debt, including current portion | 2,997,755 | 2,997,755 | 3,102,635 | ||
Total liabilities | 3,677,756 | 3,677,756 | 3,921,887 | ||
Shareholders' equity/Members' equity | 408,933 | 408,933 | 630,726 | ||
XTAR, LLC [Member] | |||||
Summary Financial Data: | |||||
Revenues | 6,552 | 6,642 | 19,249 | 22,363 | |
Operating expenses | (8,079) | (7,717) | (24,185) | (23,530) | |
Depreciation, amortization and stock-based compensation | (2,190) | (2,314) | (6,682) | (6,943) | |
Operating income (loss) | (3,717) | (3,389) | (11,618) | (8,110) | |
Net income (loss) | (5,177) | $ (3,758) | (14,444) | $ (9,822) | |
Current assets | 7,050 | 7,050 | 4,992 | ||
Total assets | 46,501 | 46,501 | 53,508 | ||
Current liabilities | 38,453 | 38,453 | 28,585 | ||
Total liabilities | 65,994 | 65,994 | 59,342 | ||
Shareholders' equity/Members' equity | $ (19,493) | $ (19,493) | $ (5,834) |
Other Current Liabilities (Sche
Other Current Liabilities (Schedule of Other Current Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accrued professional fees | $ 1,170 | $ 1,849 |
Pension and other postretirement liabilities | 526 | |
Deferred tax liability | 416 | |
Other | 378 | 552 |
Other current liabilities, total | 12,099 | 13,424 |
ViaSat Lawsuit [Member] | ||
SS/L indemnification liability relating to ViaSat Suit settlement (see Note 14) | $ 10,551 | $ 10,081 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Income Tax Contingency [Line Items] | |
Increase (Decrease) in Income Taxes | $ 2.1 |
Unrecognized tax benefits relating to UTPs | 78 |
Unrecognized tax benefits, interest on income taxes accrued | 7.3 |
Unrecognized tax benefits, income tax penalties accrued | $ 7.7 |
Closed tax years by major tax jurisdiction | 2,007 |
Potential change in unrecognized tax benefits during next twelve months | $ (33.7) |
Unrecognized tax benefits that would reduce the income tax provision | $ 36.3 |
Internal Revenue Service (IRS) [Member] | |
Income Tax Contingency [Line Items] | |
Closed tax years by major tax jurisdiction | 2008, 2009, 2010 and 2011 |
Statute of limitations to expire during next twelve months | 2007 and 2012 |
State and Local Jurisdiction [Member] | |
Income Tax Contingency [Line Items] | |
Closed tax years by major tax jurisdiction | 2008 and 2009 |
Statute of limitations to expire during next twelve months | 2007, 2010 and 2011, |
Income Taxes (Summary of Income
Income Taxes (Summary of Income Tax Benefit (Provision)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Taxes [Abstract] | ||||
Total current income tax (provision) benefit | $ (517) | $ (4,233) | $ (2,347) | $ (5,005) |
Total deferred income tax (provision) benefit | 37,451 | (721) | 33,248 | (20,101) |
Income tax (provision) benefit | $ 36,934 | $ (4,954) | $ 30,901 | $ (25,106) |
Income Taxes (Summary of Uncert
Income Taxes (Summary of Uncertain Tax Positions Included in Income Tax Provision) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Taxes [Abstract] | ||||
Current (provision) benefit for UTPs | $ (507) | $ (602) | $ (784) | $ (207) |
Deferred benefit (provision) for UTPs | 187 | 147 | 244 | 145 |
Tax (provision) benefit for UTPs | $ (320) | $ (455) | $ (540) | $ (62) |
Income Taxes (Summary of Change
Income Taxes (Summary of Changes to Company's Liabilities For UTPs) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Income Taxes [Abstract] | ||
Opening balance - January 1 | $ 77,133 | $ 79,688 |
Unrecognized tax benefits | (622) | |
Potential additional interest | 1,695 | 1,813 |
Potential penalty adjustment | (425) | |
Statute expirations | (174) | (559) |
Tax settlements | (737) | |
Ending balance | $ 77,917 | $ 79,895 |
Long-Term Liabilities (Schedule
Long-Term Liabilities (Schedule of Long-Term Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Indemnification liabilities - other (see Note 14) | $ 924 | $ 972 | ||
Deferred tax liability | 815 | |||
Liabilities for uncertain tax positions | 77,917 | 77,133 | $ 79,895 | $ 79,688 |
Other | 306 | 307 | ||
Long term liabilities | 84,602 | 92,469 | ||
ViaSat Lawsuit [Member] | ||||
SS/L indemnification liability relating to ViaSat Suit settlement (see Note 14) | $ 5,455 | $ 13,242 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Treasury stock | $ 9,592 | $ 9,592 |
Program Date November 2011 [Member] | ||
Voting common stock repurchased, authorized shares, maximum | 800,000 | |
Treasury stock, shares | 154,494 | |
Average cost per share | $ 62.04 | |
Treasury stock | $ 9,592 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) | Sep. 30, 2015shares |
Stock-Based Compensation [Abstract] | |
Maximum number of shares authorized for issuance under stock incentive plan | 1,390,880 |
Common stock available for future grant | 1,315,618 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2015 | |
Telesat Holdings Inc [Member] | |
Percentage of economic interest as result of dilution upon exercise of stock options | 62.00% |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Dilutive Impact of Equity Method Investee Stock Options) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Income (loss) from continuing operations - basic | $ (3,347) | $ (25,880) | $ (67,823) | $ 12,304 |
Less: Adjustment for dilutive effect of Telesat stock options | (615) | |||
Income (loss) from continuing operations - diluted | $ 11,689 |
Earnings Per Share (Schedule 52
Earnings Per Share (Schedule of Weighted Average Number of Shares for Calculating Diluted Earnings Per Share) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Weighted average common shares outstanding | 30,933 | 30,920 | 30,926 | 30,920 |
Unconverted restricted stock units | 84 | |||
Diluted | 30,933 | 30,920 | 30,926 | 31,004 |
Earnings Per Share (Summary of
Earnings Per Share (Summary of Unvested Restricted Stock Units Excluded from the Calculation of Diluted Loss Per Share) (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | |
Unvested Restricted Stock Units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from the calculation of diluted loss per share | 75 | 84 | 78 |
Pensions and Other Employee B54
Pensions and Other Employee Benefits Plans (Narrative) (Details) $ in Millions | Aug. 06, 2015USD ($) |
Other Benefits [Member] | Subsequent Event [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Discretionary one-time payments to other participants | $ 0.8 |
Pensions and Other Employee B55
Pensions and Other Employee Benefits Plans (Components of Net Periodic Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 128 | $ 59 | $ 384 | $ 141 |
Interest cost | 474 | 474 | 1,422 | 1,411 |
Expected return on plan assets | (526) | (464) | (1,580) | (1,411) |
Amortization of net actuarial loss | 199 | 121 | 597 | 307 |
Net periodic cost | 275 | 190 | 823 | 448 |
Other Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 1 | 2 | |
Interest cost | 6 | 17 | 33 | 52 |
Recognition due to settlement | 428 | |||
Amortization of net actuarial loss | 3 | 7 | 25 | 22 |
Amortization of prior service credits | 3 | 2 | 8 | 7 |
Net periodic cost | $ 12 | $ 27 | $ 495 | $ 83 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Oct. 31, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
Pre Closing Taxes Indemnification [Member] | Sale of SS/L [Member] | ||||
Contingencies And Commitments [Line Items] | ||||
Loss contingency accrual | $ (0.9) | $ (0.4) | ||
ViaSat Lawsuit [Member] | Sale of SS/L [Member] | ||||
Contingencies And Commitments [Line Items] | ||||
Settlement agreement date | September 2,014 | |||
Settlement agreement, plaintiff's name | ViaSat, Inc. | |||
Settlement agreement, counterparty's name | SS/L | |||
Lawsuit settlement amount, joint & several liability | $ 100 | |||
Lawsuit settlement initial payment, joint & several liability | 40 | |||
Lawsuit settlement future payments, joint & several liability | $ 60 | 38.3 | 55.2 | |
Lawsuit settlement installment number, joint and several liability | 10 | |||
Lawsuit settlement amount of each installment, joint & several liability | $ 6.9 | |||
Lawsuit settlement installment frequency, joint & several liability | quarterly | |||
Lawsuit settlement installment start date, joint & several liability | Oct. 15, 2014 | |||
Lawsuit settlement installment end date, joint & several liability | Jan. 15, 2017 | |||
Obligation with joint and several liability arrangement, amount recognized | 45 | |||
Obligation with joint and several liability amount payable by counterparty | 55 | |||
Cumulative payments for legal settlements | 29.2 | |||
Lawsuit settlement obligation carrying value | 16 | 23.3 | ||
Globalstar do Brasil S.A. [Member] | ||||
Contingencies And Commitments [Line Items] | ||||
Loss contingency accrual | $ 0.9 | $ 1 | ||
Subsequent Event [Member] | ViaSat Lawsuit [Member] | Sale of SS/L [Member] | ||||
Contingencies And Commitments [Line Items] | ||||
Payments for legal settlements | $ 2.8 | |||
Lawsuit settlement installments remaining | 5 | |||
Lawsuit settlement, total amount outstanding installments | $ 14 | |||
Lawsuit settlement installment interest rate | 3.25% |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) | Apr. 11, 2011 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2009 | Mar. 31, 2014 |
Telesat Holdings Inc [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Economic interest in affiliates | 62.80% | 62.80% | |||||||
Exercise of investor right for IPO | 25 million newly issued shares of Telesat Holdco voting common stock | ||||||||
Common stock, percentage acquired by an unaffiliated third party | 90.00% | ||||||||
Duration for shares to be paid, days | 10 days | ||||||||
Xtar [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Percentage of ownership interest | 56.00% | 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% | 57.10% | ||||||
Transaction, Consulting Agreement [Member] | Telesat Holdings Inc [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Related party transaction, date | Oct. 31, 2007 | ||||||||
Transaction term | 7 years | ||||||||
Consulting agreement, renewal term | 7 years | ||||||||
Related party annual transaction rate | 7.00% | ||||||||
Transaction income during the period | $ 1,250,000 | $ 1,250,000 | $ 3,800,000 | $ 3,800,000 | |||||
Transaction payments received during the period | 3,600,000 | 3,600,000 | |||||||
Transaction, notes receivable | 0 | $ 0 | |||||||
Transaction, Consulting Agreement [Member] | Director [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Related party transaction, date | Dec. 14, 2012 | ||||||||
Transaction fee | 360,000 | 360,000 | $ 1,080,000 | 1,080,000 | |||||
Transaction income during the period | 15,750 | 51,000 | 47,250 | 153,000 | |||||
Transaction, Supplemental Capacity Revenue Share [Member] | Viasat and Telesat [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Transaction term | 4 years | ||||||||
Transaction income during the period | 200,000 | $ 300,000 | 600,000 | $ 800,000 | |||||
Amounts due under the transaction | 200,000 | 200,000 | $ 300,000 | ||||||
Duration of contract assigned to Telesat | 15 years | ||||||||
Percentage of entity's entitlement to net revenue of related party | 50.00% | ||||||||
Transaction, Management Agreement [Member] | Xtar [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Amounts due under the transaction - Noncurrent | $ 6,800,000 | 6,800,000 | $ 6,800,000 | ||||||
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 | ||||||||
Monthly Fee [Member] | Transaction, Consulting Agreement [Member] | Director [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Transaction fee | $ 120,000 | ||||||||
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] | Transaction, Tax Indemnification [Member] | Telesat Holdings Inc [Member] | Hong Kong [Member] | |||||||||
Related Party Transaction [Line Items] | |||||||||
Amount deposited with taxing authority | $ 6,500,000 | ||||||||
Tax Indemnification settlement liability | 1,100,000 | ||||||||
Tax indemnification settlement refund | $ 5,400,000 |