Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 09, 2018 | Jun. 30, 2017 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
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 | Accelerated Filer | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 528,690,718 | ||
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 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 255,139 | $ 37,458 |
Income taxes receivable | 11,105 | 545 |
Other current assets | 3,099 | 2,938 |
Total current assets | 269,343 | 40,941 |
Income taxes receivable, non-current | 1,550 | |
Investments in affiliates | 53,430 | 107,950 |
Deferred tax assets | 50,016 | 115,285 |
Other assets | 372 | 55 |
Total assets | 374,711 | 264,231 |
Current liabilities: | ||
Accrued employment costs | 2,573 | 2,356 |
Other current liabilities | 1,279 | 3,772 |
Total current liabilities | 3,852 | 6,128 |
Pension and other postretirement liabilities | 18,786 | 18,433 |
Long-term liabilities | 61,475 | 69,259 |
Total liabilities | 84,113 | 93,820 |
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 | 1,019,988 | 1,019,988 |
Treasury stock (at cost), 154,494 shares of voting common stock | (9,592) | (9,592) |
Accumulated deficit | (682,831) | (826,460) |
Accumulated other comprehensive loss | (37,278) | (13,836) |
Total shareholders' equity | 290,598 | 170,411 |
Total liabilities and shareholders' equity | 374,711 | 264,231 |
Voting Common Stock [Member] | ||
Common Stock: | ||
Common stock, 0.01 par value | 216 | 216 |
Nonvoting Common Stock [Member] | ||
Common Stock: | ||
Common stock, 0.01 par value | $ 95 | $ 95 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
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 | 21,581,572 |
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 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements of Operations [Abstract] | |||
General and administrative expenses | $ (7,935) | $ (6,726) | $ (6,530) |
Operating income (loss) | (7,935) | (6,726) | (6,530) |
Interest and investment income | 2,483 | 194 | 138 |
Interest expense | (27) | (20) | (17) |
Other expense | (3,291) | (1,449) | (3,779) |
Income (loss) from continuing operations before income taxes and equity in net income (loss) of affiliates | (8,770) | (8,001) | (10,188) |
Income tax (provision) benefit | (73,108) | (28,507) | 45,476 |
Income (loss) from continuing operations before equity in net income (loss) of affiliates | (81,878) | (36,508) | 35,288 |
Equity in net income (loss) of affiliates | 216,347 | 84,078 | (104,792) |
Income (loss) from continuing operations | 134,469 | 47,570 | (69,504) |
Loss from discontinued operations, net of tax provision | (5) | (370) | (778) |
Net (loss) income | $ 134,464 | $ 47,200 | $ (70,282) |
Basic | |||
Income (loss) from continuing operations | $ 4.35 | $ 1.54 | $ (2.25) |
Income (loss) from discontinued operations, net of tax | (0.01) | (0.03) | |
Net income (loss) | 4.35 | 1.53 | (2.28) |
Diluted | |||
Income (loss) from continuing operations | 4.30 | 1.50 | (2.25) |
Income (loss) from discontinued operations, net of tax | (0.01) | (0.03) | |
Net income (loss) | $ 4.30 | $ 1.49 | $ (2.28) |
Weighted average common shares outstanding: | |||
Basic | 30,933 | 30,933 | 30,928 |
Diluted | 31,008 | 31,008 | 30,928 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2017 | [1] | Sep. 30, 2017 | [1] | Jun. 30, 2017 | [1] | Mar. 31, 2017 | [1] | Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2016 | [1] | Mar. 31, 2016 | [1] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ||||||||||||||||||||
Net income (loss) | $ 40,745 | $ 24,537 | $ (2,177) | $ 71,359 | $ (12,146) | $ (3,892) | $ 32,552 | $ 30,686 | $ 134,464 | $ 47,200 | $ (70,282) | |||||||||
Post-retirement benefits | (694) | (615) | 523 | |||||||||||||||||
Proportionate share of Telesat other comprehensive income (loss) | (18,280) | 15,477 | [2] | |||||||||||||||||
Other comprehensive income (loss), Net-of-Tax Amount | (18,974) | 14,862 | 523 | |||||||||||||||||
Comprehensive (loss) income | $ 115,490 | $ 62,062 | $ (69,759) | |||||||||||||||||
[1] | The quarterly earnings per share information is computed separately for each period. Therefore, the sum of such quarterly per share amounts may differ from the total for the year. | |||||||||||||||||||
[2] | Includes $20.8 million ($13.5 million, net of tax) share in the equity of Telesat's other comprehensive income that we could not record in 2015 (see Note 5) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) 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] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
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) | (70,282) | (70,282) | |||||
Other comprehensive income (loss) | 523 | 523 | |||||
Comprehensive income (loss) | (69,759) | ||||||
Settlement of restricted stock units, shares | 13 | ||||||
Adjustment to tax benefit associated with stock-based compensation | 2,609 | 2,609 | |||||
Balance at Dec. 31, 2015 | $ 216 | $ 95 | 1,020,129 | $ (9,592) | (873,660) | (28,698) | 108,490 |
Balance, shares at Dec. 31, 2015 | 21,582 | 9,506 | 154 | ||||
Net income (loss) | 47,200 | 47,200 | |||||
Other comprehensive income (loss) | 14,862 | 14,862 | |||||
Comprehensive income (loss) | 62,062 | ||||||
Adjustment to tax benefit associated with stock-based compensation | (141) | (141) | |||||
Balance at Dec. 31, 2016 | $ 216 | $ 95 | 1,019,988 | $ (9,592) | (826,460) | (13,836) | 170,411 |
Balance, shares at Dec. 31, 2016 | 21,582 | 9,506 | 154 | ||||
Net income (loss) | 134,464 | 134,464 | |||||
Other comprehensive income (loss) | (18,974) | (18,974) | |||||
Comprehensive income (loss) | 115,490 | ||||||
Tax Cuts and Jobs Act, reclassification tax effect | 4,468 | (4,468) | |||||
Cumulative effect adjustment attributable to previously unrecognized excess tax benefits on stock-based compensation | 4,697 | 4,697 | |||||
Balance at Dec. 31, 2017 | $ 216 | $ 95 | $ 1,019,988 | $ (9,592) | $ (682,831) | $ (37,278) | $ 290,598 |
Balance, shares at Dec. 31, 2017 | 21,582 | 9,506 | 154 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities: | |||
Net income (loss) | $ 134,464 | $ 47,200 | $ (70,282) |
(Income) loss from discontinued operations, net of tax provision | 5 | 370 | 778 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Non-cash operating items (Note 2) | (135,087) | (53,567) | 66,399 |
Changes in operating assets and liabilities: | |||
Other current assets and other assets | (161) | 140 | 25 |
Accrued employment costs and other current liabilities | 325 | (376) | (988) |
Income taxes receivable | (12,110) | (187) | (834) |
Pension and other postretirement liabilities | (1,787) | (1,563) | (3,504) |
Long-term liabilities | (7,540) | (1,572) | (7,586) |
Net cash used in operating activities - continuing operations | (21,891) | (9,555) | (15,992) |
Net cash used in operating activities - discontinued operations | (2,809) | (11,694) | (12,762) |
Net cash used in operating activities | (24,700) | (21,249) | (28,754) |
Investing activities: | |||
Distributions received from affiliate | 242,735 | ||
Capital expenditures | (50) | (5) | (102) |
Net cash provided by (used in) investing activities - continuing operations | 242,685 | (5) | (102) |
Receipt of principal, promissory note - discontinued operations | 33,667 | ||
Net cash provided by (used in) investing activities | 242,685 | (5) | 33,565 |
Financing activities: | |||
Adjustment to tax benefit associated with stock-based compensation | (141) | 2,609 | |
Net cash (used in) provided by financing activities - continuing operations | (141) | 2,609 | |
Net cash provided by (used in) financing activities - discontinued operations | |||
Net cash (used in) provided by financing activities | (141) | 2,609 | |
Cash, cash equivalents and restricted cash - period increase (decrease) | 217,985 | (21,395) | 7,420 |
Cash, cash equivalents and restricted cash - beginning of year | 37,458 | 58,853 | 51,433 |
Cash, cash equivalents and restricted cash - end of year | $ 255,443 | $ 37,458 | $ 58,853 |
Organization and Principal Busi
Organization and Principal Business | 12 Months Ended |
Dec. 31, 2017 | |
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 primarily through its ownership interest in Teleast Canada (“Telesat”), a leading global satellite services provider. Prior to and as of December 31, 2016, Telesat Canada was a subsidiary of, and Loral held its ownership interest in Telesat Canada through, Telesat Holdings Inc. Effective January 1, 2017, Telesat Holdings Inc. completed a corporate reorganization of companies under common control, pursuant to which Telesat Holdings Inc. amalgamated with Telesat Interco Inc., a wholly owned subsidiary of Telesat Holdings Inc., and immediately thereafter the newly amalgamated company amalgamated with Telesat Canada. The continuing entity, existing under the laws of Canada, is named Telesat Canada. Telesat has accounted for the reorganization as a continuation of Telesat Holdings Inc. Telesat owns and leases a satellite fleet that operates in geostationary 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. Telesat is also developing a global constellation of low earth orbit (“LEO”) satellites. LEO satellites operate in a circular orbit around the earth with an altitude typically between 500 and 870 miles. Unlike geostationary satellites that operate in a fixed orbital location above the equator, LEO satellites travel around the earth at high velocities requiring antennas on the ground to track their movement. LEO satellite systems have the potential to offer a number of advantages over geostationary orbit satellites to meet growing requirements for broadband services, both consumer and commercial, by providing increased data speeds and capacity, global coverage, and latency on par with, or potentially better than, terrestrial services. Loral holds a 62.7 % economic interest and a 32.7 % voting interest in Telesat (see Note 5 ). We use the equity method of accounting for our ownership interest in Telesat. 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., 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. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 2. Basis of Presentation The consolidated financial statements include the results of Loral and its subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany transactions have been eliminated. Amounts in prior periods have been reclassified to conform to the current year presentation. Discontinued Operations 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.) (“SSL”), 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, SSL, MDA and MDA Holdings, Loral agreed to indemnify MDA and its affiliates from (1) liabilities with respect to certain pre-closing taxes; and (2) certain litigation costs and litigation damages in a lawsuit (the “ViaSat Suit”) brought in 2012 by ViaSat, Inc. (“ViaSat”) against Loral and SSL (see Note 13). Adjustments to amounts previously reported in discontinued operations and interest expense that is directly related to the Sale are classified as discontinued operations in the statements of operations and cash flows for the years ended December 31, 2017, 2016 and 2015. Investments in Affiliates Our ownership interest in Telesat is accounted for using the equity method of accounting. Income and losses of Telesat are recorded based on our economic interest. 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 them while we owned SSL and on Loral’s sale to Telesat in April 2011 of its portion of the payload on the ViaSat-1 satellite and related assets. Non-refundable cash distributions received from Telesat in excess of our initial investment and our share of cumulative equity in comprehensive income of Telesat, net of cash distributions received in prior periods, are recorded as equity in net income of Telesat (“Excess Cash Distribution”) since we have no obligation to provide future financial support to Telesat. We do not record additional equity in net income of Telesat until our share of Telesat’s future net income exceeds the Excess Cash Distribution. 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. We had no guarantees or other funding obligations for our equity method investments for the years ended December 31, 2017, 2016 and 2015. We use the nature of distribution approach to classify distributions from equity method investments on the statements of cash flows. 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 materially 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, Cash Equivalents and Restricted Cash As of December 31, 2017, the Company had $255. 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. Management determines the appropriate classification of its investments at the time of purchase and at each balance sheet date. As of December 31, 2017 and December 31, 2016, the Company had restricted cash of $0.3 million and nil , respectively. The restricted cash of $0.3 million as of December 31, 2017 represents the amount pledged as collateral to the issuer of a standby letter of credit (the “LC”). The LC, which expires in October 2018 and contains an automatic renewal period of one year, has been provided as a guaranty to the lessor of our corporate offices. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheet to the condensed consolidated statement of cash flows (in thousands): December 31, 2017 Cash and cash equivalents $ 255,139 Restricted cash included in other assets 304 Cash, cash equivalents and restricted cash shown in the statement of cash flows $ 255,443 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 of December 31, 2017 and December 31, 2016, our cash and cash equivalents were invested primarily in several liquid Prime and Government AAA money market funds. Such funds are not insured by the Federal Deposit Insurance Corporation. The dispersion across funds reduces the exposure of a default at any one fund. As a result, management believes that its potential credit risks are minimal. Fair Value Measurements U.S. GAAP defines fair value as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants. U.S. GAAP also establishes a fair value hierarchy that gives the highest priority to observable inputs and the lowest priority to unobservable inputs. The three levels of the fair value hierarchy are described below: Level 1: Inputs represent a fair value that is derived from unadjusted quoted prices for identical assets or liabilities traded in active markets at the measurement date. Level 2: Inputs represent a fair value that is derived from quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities, and pricing inputs, other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3: Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. Assets and Liabilities Measured at Fair Value The following table presents our assets and liabilities measured at fair value at December 31, 2017 and December 31, 2016 (in thousands): December 31, 2017 December 31, 2016 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Cash and cash equivalents: Money market funds $ 251,742 $ — $ — $ 35,514 $ — $ — Other current assets: Indemnification - Sale of SSL $ — $ — $ 2,410 $ — $ — $ 2,410 Liabilities Long term liabilities Indemnification - Globalstar do Brasil S.A. $ — $ — $ 293 $ — $ — $ 357 The carrying amount of cash equivalents approximates fair value as of each reporting date because of the short maturity of those instruments. The Company did not have any non-financial assets or non-financial liabilities that were recognized or disclosed at fair value as of December 31, 2017 and December 31, 2016. 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. The asset resulting from the indemnification of SSL is for certain 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. 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. Income Taxes Loral and its subsidiaries are subject to U.S. federal, state and local income taxation on their worldwide income and foreign taxation on certain income from sources outside the United States. Telesat is subject to tax in Canada and other jurisdictions, and Loral will provide in operating earnings any additional U.S. current and deferred tax required on distributions received or deemed to be received from Telesat. Deferred income taxes reflect the future tax effect of temporary differences between the carrying amount of assets and liabilities for financial and income tax reporting and are measured by applying anticipated statutory tax rates in effect for the year during which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent it is more likely than not that the deferred tax assets will not be realized. The tax benefit of an uncertain tax position (“UTP”) taken or expected to be taken in income tax returns is recognized only if it is “more likely than not” to be sustained on examination by the taxing authorities, based on its technical merits as of the reporting date. The tax benefit recognized in the financial statements from such a position is measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties related to income taxes in income tax expense on a quarterly basis. The unrecognized tax benefit of a UTP is recognized in the period when the UTP is effectively settled. Previously recognized tax positions are derecognized in the first period in which it is no longer more likely than not that the tax position would be sustained upon examination. Earnings per Share Basic earnings per share are computed based upon the weighted average number of shares of voting and non-voting common stock outstanding during each period. Shares of non-voting common stock are in all respects identical to and treated equally with shares of voting common stock except for the absence of voting rights (other than as provided in Loral’s Amended and Restated Certificate of Incorporation which was ratified by Loral’s stockholders on May 19, 2009). Diluted earnings per share are based on the weighted average number of shares of voting and non-voting common stock outstanding during each period, adjusted for the effect of unvested or unconverted restricted stock units. For diluted earnings per share, earnings are adjusted for the dilutive effect of Telesat stock options. Additional Cash Flow Information The following represents non-cash activities and supplemental information to the consolidated statements of cash flows (in thousands): Year Ended December 31, 2017 2016 2015 Non-cash operating items: Equity in net (income) loss of affiliates $ (216,347) $ (84,078) $ 104,792 Deferred taxes 80,189 29,535 (39,694) Depreciation and amortization 38 60 41 Amortization of prior service credit and actuarial loss 1,033 916 1,260 Net non-cash operating items – continuing operations $ (135,087) $ (53,567) $ 66,399 Supplemental information: Interest paid – continuing operations $ 27 $ 20 $ 314 Interest paid – discontinued operations $ 55 $ 750 $ 1,549 Tax payments, net of refunds – continuing operations $ 12,504 $ 153 $ (233) Recent Accounting Pronouncements In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . On December 22, 2017, H.R. 1, known as the “Tax Cuts and Jobs Act” was signed into law. Among other things, the Tax Cuts and Jobs Act permanently reduced the U.S. federal corporate income tax rate from 35 percent to 21 percent effective for tax years commencing January 1, 2018. According to ASU 2018-02, an entity may either elect to (a) reclassify from accumulated other comprehensive income (loss) to retained earnings the stranded income tax effects of the federal tax rate change (the “Reclassification”) or (b) provide certain disclosures. The new guidance is effective for the Company on January 1, 2019, with earlier adoption permitted in any interim or annual period. The amendments in this update are to be applied either in the period of adoption or retrospectively to each period in which the effect of the tax rate change is recognized. The Company early adopted the new guidance in the fourth quarter of 2017 and elected the Reclassification approach. As a result of adopting the new guidance, we reclassified $4.5 million of stranded deferred federal income tax benefits from accumulated other comprehensive loss to accumulated deficit in the fourth quarter of 2017 related to the change in the federal corporate income tax rate. In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . ASU No. 2017-07, as it applies to the Company, amended the presentation of net periodic pension and postretirement cost (i.e. net benefit cost). The new guidance requires the service cost component to be presented separate from the other components of net benefit cost. While service cost will be presented with other employee compensation costs within operations, the other components of net benefit cost, such as interest cost, amortization of prior service cost, and gains or losses, are required to be separately presented outside of operations, if income or loss from operations is presented. The guidance, to be applied retrospectively, is effective for the Company on January 1, 2018, with earlier application permitted only within the first interim period starting January 1, 2017. The change in presentation of net benefit cost, which we adopted as of January 1, 2018, will not have a material impact on our condensed consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, a consensus of the FASB’s Emerging Issues Task Force (the “Task Force”). The new guidance requires entities to show the changes in total cash including cash equivalents and restricted cash, in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. The new guidance is effective for the Company on January 1, 2018, with earlier application permitted in any interim or annual period, using a retrospective transition method. The Company early adopted the new guidance in the third quarter of 2017. As a result of adopting the new guidance, the statements of cash flows for the years ended December 31, 2017, 2016 and 2015 show changes in total cash including cash equivalents and restricted cash, and the nature of the restrictions are disclosed above under Cash, Cash Equivalents and Restricted Cash. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) , a consensus of the FASB’s Task Force. The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The guidance relevant to the Company provides an accounting policy election for classifying distributions received from equity method investments. Such amounts can be classified using (i) a cumulative earnings approach, or (ii) a nature of distribution approach. Under the cumulative earnings approach, an investor compares the distributions received to such investor’s cumulative equity method earnings since inception. Any distributions received up to the amount of cumulative equity earnings are considered a return on investment and classified in operating activities. Any excess distributions are considered a return of investment and classified in investing activities. Alternatively, under the nature of distribution approach, an investor classifies the distributions based on the nature of activities of the investee that generated the distribution. If the necessary information is subsequently not available for an investee to determine the nature of the activities, the entity should use the cumulative earnings approach for that investee and report a change in accounting principle on a retrospective basis. The new guidance is effective for the Company on January 1, 2018, with earlier application permitted in any interim or annual period, using a retrospective transition method. The Company early adopted the new guidance on January 1, 2017 and made an accounting policy election to use the nature of distribution approach to classify distributions from equity method investments on its statements of cash flows. As a result of adopting the new guidance, the entire distribution of $242.7 million received from Telesat in the first quarter of 2017 is classified in investing activities on the statement of cash flows for the year ended December 31, 2017 (see Note 5). In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. ASU No. 2016-09 simplified several aspects of the accounting for share-based payment transactions, including the income tax consequences. Under the new guidance, all excess tax benefits and tax deficiencies related to share-based payment transactions are recognized in the current period as discrete adjustments to income tax expense or benefit in the income statement. Under previous U.S. GAAP, excess tax benefits were recognized in additional paid-in capital while tax deficiencies were recognized first as an offset to accumulated excess tax benefits, then as additional income tax expense. Also, under previous U.S. GAAP, excess tax benefits were not recognized until the related income tax deduction reduced income taxes payable. The Company adopted the new guidance on January 1, 2017, and upon adoption previously unrecognized excess tax benefits of $4.7 million were recognized as a cumulative-effect adjustment to increase retained earnings and deferred tax assets. In February 2016, the FASB amended the Accounting Standards Codification (“ASC”) by creating ASC Topic 842, Leases. ASC Topic 842 requires a lessee to record a right-of-use asset and a lease liability for all leases with a lease term greater than 12 months. The main difference between previous U.S. GAAP and ASC Topic 842 is the recognition under ASC 842 of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. The new guidance, effective for the Company on January 1, 2019, with earlier application permitted, is not expected to have a material impact on our consolidated financial statements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2017 | |
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) Income Loss Balance at January 1, 2015 $ (13,982) $ (15,239) $ (29,221) Other comprehensive loss before reclassification (265) — (265) Amounts reclassified from accumulated other comprehensive loss 788 — 788 Net current-period other comprehensive income 523 — 523 Balance at December 31, 2015 (13,459) (15,239) (28,698) Other comprehensive (loss) income before reclassification (1,209) 15,477 14,268 Amounts reclassified from accumulated other comprehensive loss 594 — 594 Net current-period other comprehensive (loss) income (615) 15,477 14,862 Balance at December 31, 2016 (14,074) 238 (13,836) Other comprehensive loss before reclassification (1,365) (18,280) (19,645) Amounts reclassified from accumulated other comprehensive loss 671 — 671 Net current-period other comprehensive loss (694) (18,280) (18,974) Tax Cuts and Jobs Act, reclassification of tax effect from accumulated other comprehensive loss to accumulated deficit (1,686) (2,782) (4,468) Balance at December 31, 2017 $ (16,454) $ (20,824) $ (37,278) The components of other comprehensive (loss) income and related tax effects are as follows (in thousands): Before-Tax Amount Tax (Provision) Benefit Net-of-Tax Amount Year ended December 31, 2017 Postretirement Benefits: Net actuarial loss and prior service credits $ (2,101) $ 736 $ (1,365) Amortization of prior service credits and net actuarial loss 1,033 (a) (362) 671 Postretirement benefits (1,068) 374 (694) Proportionate share of Telesat other comprehensive loss (28,132) 9,852 (18,280) Other comprehensive loss $ (29,200) $ 10,226 $ (18,974) Year ended December 31, 2016 Postretirement Benefits: Net actuarial loss and prior service credits $ (1,865) $ 656 $ (1,209) Amortization of prior service credits and net actuarial loss 916 (a) (322) 594 Postretirement benefits (949) 334 (615) Proportionate share of Telesat other comprehensive income (b) 23,872 (8,395) 15,477 Other comprehensive income $ 22,923 $ (8,061) $ 14,862 Year ended December 31, 2015 Postretirement Benefits: Net actuarial loss and prior service credits $ (424) $ 159 $ (265) Amortization of prior service credits and net actuarial loss 1,260 (a) (472) 788 Postretirement benefits 836 (313) 523 Proportionate share of Telesat other comprehensive gain (loss) — — — Other comprehensive income $ 836 $ (313) $ 523 (a) Reclassifications are included in general and administrative expenses . (b) Includes $20.8 million ( $13.5 million, net of tax) share in the equity of Telesat’s other comprehensive income that we could not record in 2015 (see Note 5) . |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2017 | |
Other Current Assets [Abstract] | |
Other Current Assets | 4 . Other Current Assets Other current assets consist of (in thousands): December 31 December 31, 2017 2016 Indemnification receivable from SSL for pre-closing taxes (see Note 13) $ 2,410 $ 2,410 Due from affiliates 217 225 Prepaid expenses 198 192 Other 274 111 $ 3,099 $ 2,938 |
Investments in Affiliates
Investments in Affiliates | 12 Months Ended |
Dec. 31, 2017 | |
Investments in Affiliates [Abstract] | |
Investments in Affiliates | 5 . Investments in Affiliates Investments in affiliates consist of (in thousands): December 31, 2017 2016 Telesat $ 53,430 $ 107,950 Equity in net income (loss) of affiliates consists of (in thousands): Year Ended December 31, 2017 2016 2015 Telesat $ 216,347 $ 84,078 $ (74,329) XTAR — — (30,463) $ 216,347 $ 84,078 $ (104,792) Telesat As of December 31, 2017 and 2016 , we held a 62.7 % economic interest and a 32.7% voting interest in Telesat. Our economic interest decreased from 62.8% to 62.7% in March 2016 when certain Telesat employees exercised share appreciation rights related to a total of 178,642 stock options granted under Telesat’s share-based compensation plan and received 129,400 non-voting participating preferred shares. Also in March 2016, a total of 1,253,477 vested stock options were repurchased by Telesat at fair value from Telesat management personnel and other employees for total cash consideration of CAD 24.7 million, of which CAD 18.7 million was paid to management personnel. In the first quarter of 2017, we received $242.7 million in cash from Telesat, representing our share of an aggregate approximately $400 million distribution from Telesat to its shareholders and stock option holders. 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. In addition to recording our share of equity in net income of Telesat, we also recorded our share of equity in other comprehensive loss of Telesat of $28.1 million for the year ended December 31, 2017. As of December 31, 2015, we had an unrecorded equity loss in Telesat of $57.9 million , the amount by which our share of Telesat’s losses together with cash distributions we received from Telesat exceeded our recorded cumulative equity in net income of Telesat and our initial investment. Accordingly, in following the equity method of accounting, our investment balance in Telesat was reduced to zero as of December 31, 2015. In addition, our equity in Telesat’s other comprehensive income that we could not record as of December 31, 2015 was $20.8 million. We recognized this $57.9 million equity loss and our $20.8 million share in the equity of Telesat’s other comprehensive income in 2016 as a result of the recognition of the suspended loss. During the year ended December 31, 2016, we recorded an increase in equity in net income of affiliates of $3.0 million ( $1.9 million, net of tax) that should have been recognized in prior years. As a result, net income per share (basic and diluted) increased $0.06 per share. During the year ended December 31, 2015, we recorded an increase to our equity in net loss of affiliates of $3.5 million ( $2.2 million, net of tax) and an increase in other comprehensive income of $5.3 million that should have been recognized in prior years. As a result, net loss per share (basic and diluted) increased $0.07 per share. The 2016 non-cash adjustment relates primarily to an error in mark-to-market accounting for embedded foreign exchange derivatives in a Telesat customer contract. Changes in fair value of these embedded derivatives are required to be recognized under U.S. GAAP, but not under International Financial Reporting Standards, the basis of accounting used by Telesat . The 2015 non-cash adjustment 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. On November 1 7, 2016, Telesat entered into amended senior secured credit facilities which provide for term loan borrowings of $2.43 b illion which mature on November 17, 2023 and revolving credit borrowings of up to $200 million (or Canadian dollar equivalent) which mature on November 17, 2021 . Telesat also issued, through a private pla cement, $500 million of 8.875% senior n otes which mature on November 17, 2024 . On November 17, 2016, Telesat repaid all outstanding amounts under its former senior secured credit facilities and its 6.0% senior notes. On February 1, 2017 , Telesat amended the senior secured credit facilities to effectively reprice the then outstanding term loan borrowings of $2.424 billion. The ability of Telesat to pay dividends or certain other restricted payments in cash to Loral is governed by applicable covenants in Telesat’s debt and shareholder agreements. Telesat’s credit agreement governing its senior secured credit facilities limits, among other items, Telesat’s ability to incur debt and make dividend payments if the total leverage ratio (“Total Leverage Ratio”) is above 4.50 :1.00, with certain exceptions. As of December 31, 201 7 , Telesat’s Total Leverage Ratio was 4.55 :1.00. Telesat is , however, permitted to pay annual consulting fees of $5 million to Loral in cash (see Note 1 4 ). 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 SSL and on Loral’s sale to Telesat in April 2011 of its portion of the payload on the ViaSat-1 satellite and related assets. The following table presents summary financial data for Telesat in accordance with U.S. GAAP, for the years ended December 31, 2017, 2016 and 2015 and as of December 31, 2017 and 2016 (in thousands): Year Ended December 31, 2017 2016 2015 Statement of Operations Data: Revenues $ 712,390 $ 703,131 $ 751,684 Operating expenses (150,872) (139,141) (140,706) Depreciation, amortization and stock-based compensation (194,203) (195,781) (190,985) Insurance proceeds 4,739 — — Loss on disposition of long lived assets (207) (1,937) (24) Operating income 371,847 366,272 419,969 Interest expense (151,528) (145,288) (138,783) Loss on refinancing — (12,246) — Foreign exchange gain (loss) 173,433 68,719 (426,980) (Loss) gain on financial instruments (3,516) 974 7,810 Other income 2,307 4,590 3,672 Income tax provision (54,424) (58,772) (74,447) Net income (loss) $ 338,119 $ 224,249 $ (208,759) December 31, 2017 2016 Balance Sheet Data: Current assets $ 445,104 $ 678,361 Total assets 4,082,472 4,194,006 Current liabilities 126,100 154,173 Long-term debt, including current portion 2,829,911 2,877,950 Total liabilities 3,538,656 3,597,056 Shareholders’ equity 543,816 596,950 ASU 2014-09 , Revenue from Contracts with Customers, and its related amendments (collectively, the “New Revenue Standard”) are effective for reporting periods beginning after December 15, 2017 and interim periods therein. In accordance with the standard, Telesat has adopted the New Revenue Standard effective January 1, 2018 and elected the modified retrospective approach with the cumulative effect of adoption recognized through retained earnings at the date of adoption. While Telesat has not yet provided us with the financial statement impact of the New Revenue Standard, we anticipate the following: For customer contracts that include prepayments that represent a significant financing component, the time value of money related to the promised amount of consideration will be recognized upon adoption . We anticipate that our investment in Telesat and retained earnings will decrease upon adoption. Going forward, we expect this change will have an immaterial impact on our net income. For certain contracts, it appears that Telesat would be considered as an agent in the arrangement as opposed to the principal. This will result in a reclassification between revenue and operating expenses. We anticipate that there will be no impact on our investment in Telesat or net income as a result of this change. 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. We have also concluded that XTAR is not a variable interest entity for which we are the primary beneficiary. 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. As of December 31, 2017 and 201 6 , the carrying value of our investment in XTAR was zero as a result of the decline in its fair value that was determined to be other-than-temporary. The value of our investment in XTAR was determined based on the income approach by discounting projected annual cash flows to their present value using a rate of return appropriate for the risk of achieving the projected cash flows . We recorded non-cash impairment charges of $21.2 million for the year ended December 31, 2015 related to our investment in XTAR. In the third quarter of 2015, we recorded an impairment charge of $8 million primarily as a result of an increase in the discount rate used to value our investment in XTAR. We recorded an additional impairment charge of $13.2 million in the fourth quarter of 2015 primarily due to the reassessment of our revenue expectations for future years dictated by a decline in XTAR’s revenues by approximately 11% from 2014 to 2015. Beginning January 1, 2016, we discontinued providing for our allocated share of XTAR’s net losses as our investment was reduced to zero and we have no commitment to provide further financial support to XTAR. XTAR’s lease obligation to Hisdesat for the XTAR-LANT transponders (the “Transponder Service”) requires payment by XTAR up to a maximum amount of $ 28 million per year through the end of the useful life of the satellite which is estimated to be in 202 1. Under the lease agreement (the “Spainsat Lease Agreement”), Hisdesat may also be entitled under certain circumstances to a share of the revenues generated on the Transponder Service. In September 2016, XTAR and Hisdesat amended the Spainsat Lease Agreement to, among other things, reduce for 2016 and 2017 the minimum capacity required to be leased by XTAR, and accordingly lease payments by XTAR for 2016 and 2017 were reduced from $26 million to $18.2 million. The 2016 reduction was retroactive to January 1, 2016. In January 2017, XTAR and Hisdesat amended the Spainsat Lease Agreement to, among other things, reduce for 2017 the minimum capacity required to be leased by XTAR, and accordingly lease payments by XTAR for 2017 were reduced to $9.5 million. In January 201 8 , XTAR and Hisdesat again amended the Spainsat Lease Agreement to, among other things, reduce for 201 8 the minimum capacity required to be leased by XTAR, and accordingly lease payments by XTAR for 201 8 were reduced from $26.0 million to $10.0 million. 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 December 31, 201 7 were $ 29.2 million . As of December 31, 201 7 and 201 6 , XTAR has deferred payment of liabilities of $32.7 million and $28.8 million, respectively, for its lease obligation and Catch-Up Payments to Hisdesat. 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. The ability of XTAR to pay dividends and management fees in cash to Loral is governed by XTAR’s operating agreement (see Note 14) . The following table presents summary financial data for XTAR for the years ended December 31, 2017, 2016 and 2015 and as of December 31, 2017 and 2016 (in thousands): Year Ended December 31, 2017 2016 2015 Statement of Operations Data: Revenues $ 16,775 $ 18,550 $ 25,852 Operating expenses (15,838) (24,123) (31,933) Depreciation and amortization (6,471) (8,589) (8,874) Operating loss (5,534) (14,162) (14,955) Net loss (11,646) (18,296) (18,722) December 31, 2017 2016 Balance Sheet Data: Current assets $ 5,670 $ 6,202 Total assets 28,437 35,846 Current liabilities 2,554 1,773 Related party liabilities 73,699 73,459 Total liabilities 76,253 75,232 Members’ equity (47,816) (39,386) Other As of December 31, 2017 and 2016, the Company held an indirect ownership interest in a foreign company that currently serves as the exclusive service provider for Globalstar service in Mexico. The Company accounts for this ownership interest using the equity method of accounting. Loral has written-off its investment in this company, and, because we have no future funding requirements relating to this investment, there is no requirement for us to provide for our allocated share of this company’s net losses. The Company also previously held an indirect ownership interest in a foreign joint venture company that serves as the exclusive service provider for Globalstar service in Russia. In connection with a settlement agreement entered into in June 2017 with the Russian joint venture partner to settle certain arbitration and legal proceedings relating to the joint venture, the parties released each other from all claims either party had or may have against the other relating to the dispute, our investment and their relationship (see Note 13). |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Current Liabilities [Abstract] | |
Other Current Liabilities | 6 . Other Current Liabilities Other current liabilities consists of (in thousands): December 31, 2017 2016 SSL indemnification liability relating to ViaSat Suit settlement (see Note 13) $ — $ 2,801 Due to affiliate 9 — Accrued professional fees 1,117 665 Pension and other postretirement liabilities 69 108 Accrued liabilities 84 198 $ 1,279 $ 3,772 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | 7. Income Taxes The following summarizes our income tax (provision) benefit (in thousands): Year Ended December 31, 2017 2016 2015 Current: U.S. federal $ (13,783) $ (1,718) $ (1,089) State and local 21,114 2,981 7,106 Foreign (250) (235) (235) Total current 7,081 1,028 5,782 Deferred: U.S. federal (80,136) (26,337) 35,721 State and local (53) (3,198) 3,973 Total deferred (80,189) (29,535) 39,694 Total income tax (provision) benefit $ (73,108) $ (28,507) $ 45,476 Our current tax benefit includes a decrease to our liability for UTPs for (in thousands): Year Ended December 31, 2017 2016 2015 Decrease to unrecognized tax benefits $ 1,062 $ 2,477 $ 4,921 Interest income (expense) 429 (2,011) (103) Penalties 5,985 387 1,393 Total $ 7,476 $ 853 $ 6,211 The deferred tax (provision) benefit for each period included the impact of equity in net income (loss) of affiliates from our consolidated statement of operations. For each period presented, the statute of limitations for the assessment of additional tax expired with regard to several of our federal and state UTPs and certain other UTPs were settled. As a result, the reduction to our liability for UTPs provided a current tax benefit including the reversal of previously recognized interest and penalties, partially offset by an additional provision for the potential payment of interest on our remaining UTPs. The Tax Cuts and Jobs Act made broad and complex changes to the U.S tax code, such as the imposition of a one-time transition tax in 2017 on certain unrepatriated earnings of controlled foreign corporations, including Telesat, and numerous changes first effective in 2018 including, but not limited to, (1) reducing the U.S. federal corporate income tax rate from 35 percent to 21 percent; (2) eliminating U.S federal income taxes on dividends from certain foreign investments, such as Telesat; (3) requiring a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations, including Telesat; (4) limiting the use of foreign tax credits (“FTC”) to reduce U.S. federal tax liability; (5) eliminating the corporate alternative minimum tax (“AMT”) and changing how existing AMT credits can be realized; (6) creating the base erosion anti-abuse tax, a new minimum tax; (7) creating a new limit on deductible interest expense; and (8) changing the rules related to the use of net operating loss (“NOL”) carryforwards created in tax years beginning after December 31, 2017. We recognized the income tax effects of the Tax Cuts and Jobs Act in accordance with the Securities and Exchange Commission Staff Accounting Bulletin No. 118, Income Tax Accounting Implication of the Tax Cuts and Job Act (SAB 118), in our consolidated financial statements for the year ended December 31, 2017. SAB 118 provides guidance for the application of income tax accounting standards related to the Tax Cuts and Jobs Act. Based upon our analysis, as of December 31, 2017, we reduced deferred tax assets by $33.2 million related to the tax rate reduction with a corresponding increase to our deferred income tax provision and increased non-current income taxes receivable by $1.6 million related to refundable AMT credits with a corresponding reduction to deferred tax assets. The preliminary effect recorded may change in the future due to revisions in the interpretation of the Tax Cuts and Jobs Act or legislative action to clarify interpretation of the Tax Cuts and Jobs Act. The Company expects to finalize the effect of the Tax Cuts and Jobs Act with the filing of its 2017 tax return and record in the fourth quarter of 2018 any difference between the final effect and the provisional effect recorded. The current tax provision for the year ended December 31, 2017 included our anticipated income tax liability related to the cash distribution received from Telesat after use of AMT credits and NOL carryforwards and FTCs from Telesat. Upon receiving the cash distribution from Telesat in the first quarter of 2017, we recorded a current tax liability of $53.0 million. During 2017, we made tax payments of $12.5 million, primarily with respect to the distribution, and commenced a tax study to determine the allowable amount of FTCs that could be utilized to minimize our cash tax liability. After completing our analysis in the fourth quarter of 2017, we reduced our current tax liability to approximately $2.0 million and established a deferred tax asset of $104.9 million for the carryforward of unused FTCs. Since, at the current time, sufficient positive evidence does not exist to support full recovery of the FTC carryforward, we recorded a full valuation allowance against this deferred tax asset during the year ended December 31, 2017. As of December 31, 2017, we had no income taxes payable and a current income tax receivable of $11.1 million , primarily related to recovery of tax payments previously made on the cash distribution. In addition to the income tax (provision) benefit presented above, we also recorded the following items (in thousands): Year Ended December 31, 2017 2016 2015 Tax benefit on loss from discontinued operations $ 3 $ 200 $ 450 Adjustment to tax benefit associated with stock-based compensation recorded to paid-in-capital — (141) 2,609 Cumulative effect adjustment attributable to previously unrecognized excess tax benefits on stock-based compensation 4,697 — — Deferred tax benefit (provision) for adjustments in other comprehensive loss (see Note 3) 10,226 (8,061) (313) Until December 31, 2016, the Company used the with-and-without approach of determining how and when excess tax benefits from stock-based compensation had been realized and recorded to paid-in-capital. Effective January 1, 2017, the Company adopted ASU No. 2016-09, and upon adoption , previously unrecognized excess tax benefits of $4.7 million were recognized as a cumulative-effect adjustment to decrease accumulated deficit and increase deferred tax assets (see Note 2). The (provision) benefit for income taxes differs from the amount computed by applying the statutory U.S. federal income tax rate on the loss from continuing operations before income taxes and equity in net income (loss) of affiliates because of the effect of the following items (in thousands): Year Ended December 31, 2017 2016 2015 Tax benefit at U.S. Statutory Rate of 35% $ 3,069 $ 2,800 $ 3,566 Permanent adjustments which change statutory amounts: State and local income taxes, net of federal income tax 15,413 (4,588) 7,821 Equity in net income (loss) of affiliates (73,997) (29,427) 36,677 Provision for unrecognized tax benefits (1,234) (1,113) (708) Nondeductible expenses (1,235) (586) (1,411) Change in valuation allowance (120,389) 4,565 (307) Income tax credits 138,780 — — Foreign income taxes (250) (153) (153) Effect of U.S. tax law changes (33,248) — — Other, net (17) (5) (9) Total income tax (provision) benefit $ (73,108) $ (28,507) $ 45,476 The following table summarizes the activity related to our unrecognized tax benefits (in thousands): Year Ended December 31, 2017 2016 2015 Balance at January 1 $ 68,149 $ 72,298 $ 78,333 Increases related to prior year tax positions — 1,525 1,955 Decreases as a result of statute expirations (14,172) (5,674) (6,876) Decreases as a result of tax settlements — — (1,114) Increases related to current year tax positions 16,433 — — Balance at December 31 $ 70,410 $ 68,149 $ 72,298 With few exceptions, the Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities for years prior to 2012. Earlier years related to certain foreign jurisdictions remain subject to examination. T o the extent allowed by law, the tax authorities may have the right to examine prior periods where net operating losses were generated and carried forward, and make adjustments up to the amount of the net operating loss carryforward. While we intend to contest any future tax assessments for uncertain tax positions, no assurance can be provided that we would ultimately prevail. During the next twelve months, the statute of limitations for assessment of additional tax will expire with regard to certain UTPs related to our federal income tax return filed for 2012 , potentially resulting in a $27.3 million reduction to our unrecognized tax benefits. Pursuant to the Purchase Agreement for the Sale, we are obligated to indemnify SSL for taxes related to periods prior to the closing of the transaction. Our liability for UTPs decreased from $68.7 million at December 31, 2016 to $61.2 million at December 31, 2017 and is included in long-term liabilities in the consolidated balance sheets. At December 31, 2017, we have accrued $7.2 million for the potential payment of tax-related interest. If our positions are sustained by the taxing authorities, approximately $45.3 million of the tax benefits will reduce the Company’s income tax provision from continuing operations. Other than as described above, there were no significant changes to our unrecognized tax benefits during the year ended December 31, 2017, and we do not anticipate any other significant increases or decreases to our unrecognized tax benefits during the next twelve months. In connection with the acquisition of our ownership interest in Telesat, Loral indemnified Telesat for Loral Skynet tax liabilities relating to periods preceding 2007 and retained the benefit of tax recoveries related to the transferred assets. The unrecognized tax benefits related to the Loral Skynet subsidiaries were transferred to Telesat subject to the Telesat Indemnification. At December 31, 2017, Loral’s asset or liability for the Telesat Indemnification based upon the probable outcome of these matters is not expected to be material (see Notes 5 and 14). At December 31, 2017, we had federal FTC carryforwards of $104.9 million, federal NOL carryforwards of $139.7 million, New York NOL carryforwards of $1.6 million and federal research credits of $0.4 million which expire from 2022 to 2034 , as well as state AMT and state research credit carryforwards of approximately $1.3 million that may be carried forward indefinitely. The reorganization of the Company on the Effective Date constituted an ownership change under section 382 of the Internal Revenue Code. Accordingly, use of our tax attributes, such as NOLs and tax credits generated prior to the ownership change, are subject to an annual limitation of approximately $32.6 million, subject to increase or decrease based on certain factors. We assess the recoverability of our FTCs, NOLs and other deferred tax assets and based upon this analysis, record a valuation allowance to the extent recoverability does not satisfy the “more likely than not” recognition criteria. We continue to maintain our valuation allowance until sufficient positive evidence exists to support full or partial reversal. As of December 31, 2017, we had a valuation allowance totaling $124.0 million against our deferred tax assets for certain tax credits, primarily FTC carryovers from 2017, and loss carryovers due to the limited carryforward periods . During 2017, the valuation allowance increased by $120.4 million, which was recorded as a provision to continuing operations in our statement of operations. Subsequent to the Sale, to the extent that profitability from operations is not sufficient to realize the benefit from our remaining net deferred tax assets, we would generate sufficient taxable income from the appreciated value of our Telesat investment, which currently has a nominal tax basis, in order to prevent federal net operating losses from expiring and realize the benefit of all remaining deferred tax assets. During 2016, the valuation allowance decreased by $4.6 million, which was recorded as a benefit to continuing operations in our statement of operations after a significant portion of our California NOL carryforward expired unutilized. During 2015, the valuation allowance increased by $0.3 million, which was recorded as a provision to continuing operations in our statement of operations. The significant components of the net deferred income tax assets are (in thousands): December 31, 2017 2016 Deferred tax assets: Net operating loss and tax credit carryforwards $ 165,267 $ 119,524 Compensation and benefits 943 1,582 Indemnification liabilities 216 1,346 Other, net 104 219 Federal benefit of uncertain tax positions 1,518 7,528 Pension costs 3,458 5,984 Investments in and advances to affiliates 2,546 — Total deferred tax assets before valuation allowance 174,052 136,183 Less valuation allowance (124,036) (3,647) Deferred tax assets net of valuation allowance 50,016 132,536 Deferred tax liabilities: Investments in and advances to affiliates — 17,257 Total deferred tax liabilities — 17,257 Net deferred tax assets $ 50,016 $ 115,279 Classification on consolidated balance sheets: Deferred tax assets $ 50,016 $ 115,285 Long-term liabilities — (6) Net deferred tax assets $ 50,016 $ 115,279 |
Long-Term Liabilities
Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Long-Term Liabilities [Abstract] | |
Long-Term Liabilities | 8. Long- Term Liabilities Long term liabilities consists of (in thousands): December 31, 2017 2016 Indemnification liabilities - other (see Note 13) 293 357 Deferred tax liability — 6 Liabilities for uncertain tax positions 61,182 68,658 Other — 238 $ 61,475 $ 69,259 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 9 . Stock-Based Compensation Stock Plans The Loral amended and restated 2005 stock incentive plan (th e “Stock Incentive Plan”) which allowed 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, had a ten-year term and has expired. The Company granted 75,262 restricted stock units under the Stock Incentive Plan that do not expire and remained unconverted as of December 31, 201 7 and December 31, 201 6 . As of December 31, 201 7 , there is no unrecognized compensation cost related to non-vested awards. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 10 . 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 62.3 %. 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): 2017 2016 Income from continuing operations — basic $ 134,469 $ 47,570 Less: Adjustment for dilutive effect of Telesat stock options (1,194) (1,096) Income from continuing operations — diluted $ 133,275 $ 46,474 Telesat stock options are excluded from the calculation of diluted loss per share for the year ended December 31, 2015 as the effect would be antidilutive. Basic earnings per share is computed based upon the weighted average number of shares of voting and non-voting common stock outstanding. The following is the computation of common shares outstanding for diluted earnings per share (in thousands): Year Ended December 31, 2017 2016 Weighted average common shares outstanding 30,933 30,933 Unconverted restricted stock units 75 75 Common shares outstanding for diluted earnings per share 31,008 31,008 For the year ended December 31, 2015, 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): Year Ended December 31, 2015 Unconverted restricted stock units 78 |
Pensions and Other Employee Ben
Pensions and Other Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Pensions and Other Employee Benefit Plans [Abstract] | |
Pensions and Other Employee Benefit Plans | 1 1 . Pensions and Other Employee Benefit Plans Pensions We maintain a qualified defined benefit pension plan to which members may contribute in order to receive enhanced pension benefits. Employees hired after June 30, 2006 do not participate in the defined benefit pension plan, but participate in our defined contribution savings plan with an additional Company contribution. Benefits are based primarily on members’ compensation and/or years of service. Our funding policy is to fund the qualified pension plan in accordance with the Internal Revenue Code and regulations thereon. Plan assets are generally invested in equity , fixed income and real asset investments. Pension plan assets are managed primarily by Russell Investment Corp. (“Russell”), which allocates the assets into funds as we direct. Other Benefits In addition to providing pension benefits, we provide certain health care and life insurance benefits for retired employees and dependents . For the years ended December 31, 2017, 2016 and 2015, certain of these benefits were provided through plans sponsored or managed by Telesat. Participants are eligible for these benefits generally when they retire from active service and meet the eligibility requirements for our pension plan. These benefits are funded primarily on a pay-as-you-go basis, with the retiree generally paying a portion of the cost through contributions, deductibles and coinsurance provisions. Effective January 1, 2015, retiree medical coverage for retirees age 65 or over and their dependents was discontinued. In 2015, the Company made discretionary lump sum payments to participants affected to assist them in purchasing alternate coverage. The effects on the consolidated financial statements of discontinuing this coverage and the lump sum payments were not significant. Funded Status The following tables provide a reconciliation of the changes in the plans’ benefit obligations and fair value of assets for 201 7 and 201 6 , and a statement of the funded status as of December 31, 201 7 and 201 6 . We use a December 31 measurement date for the pension plan and other post-retirement benefits (in thousands). Pension Benefits Other Benefits Year Ended December 31, Year Ended December 31, 2017 2016 2017 2016 Reconciliation of benefit obligation: Obligation at beginning of period $ 49,463 $ 46,976 $ 544 $ 559 Service cost 702 668 1 1 Interest cost 1,961 1,982 21 22 Participant contributions 27 45 17 20 Actuarial loss (gain) 3,599 1,537 (22) (6) Benefit payments (1,776) (1,745) (42) (52) Obligation at December 31, 53,976 49,463 519 544 Reconciliation of fair value of plan assets: Fair value of plan assets at beginning of period 31,466 29,296 — — Actual return on plan assets 3,601 1,709 — — Employer contributions 2,322 2,161 25 32 Participant contributions 27 45 17 20 Benefit payments (1,776) (1,745) (42) (52) Fair value of plan assets at December 31, 35,640 31,466 — — Funded status at end of period $ (18,336) $ (17,997) $ (519) $ (544) The benefit obligations for pensions and other employee benefits exceeded the fair value of plan assets by $18.9 million at December 31, 2017 (the “unfunded benefit obligations”). The unfunded benefit obligations were measured using a discount rate of 3.50% and 4.00% at December 31, 201 7 and 201 6 , respectively. Lowering the discount rate by 0.5% would have increased the unfunded benefit obligations by approximately $3.8 million as of December 31, 201 7 and 201 6 . Market conditions and interest rates will significantly affect future assets and liabilities of Loral’s pension plan and other post-retirement benefits. The pre-tax amounts recognized in accumulated other comprehensive loss as of December 31, 201 7 and 201 6 consist of (in thousands): Pension Benefits Other Benefits December 31, December 31, 2017 2016 2017 2016 Actuarial loss $ (18,941) $ (17,816) $ (48) $ (80) Amendments-prior service cost — — (22) (47) $ (18,941) $ (17,816) $ (70) $ (127) The amounts recognized in other comprehensive loss during the years ended December 31, 201 7 , 201 6 and 201 5 consist of (in thousands): Year Ended December 31, 2017 2016 2015 Pension Benefits Other Benefits Pension Benefits Other Benefits Pension Benefits Other Benefits Actuarial (loss) gain during the period $ (2,123) $ 22 $ (1,875) $ 10 $ (425) $ 1 Amortization of actuarial loss 998 10 889 5 795 26 Amortization of prior service cost — 25 — 22 — 11 Recognition due to curtailment — — — — — 428 Total recognized in other comprehensive income (loss) $ (1,125) $ 57 $ (986) $ 37 $ 370 $ 466 Amounts recognized in the balance sheet consist of (in thousands): Pension Benefits Other Benefits December 31, December 31, 2017 2016 2017 2016 Current Liabilities $ — $ — $ 69 $ 108 Long-Term Liabilities 18,336 17,997 450 436 $ 18,336 $ 17,997 $ 519 $ 544 The estimated actuarial loss for pension benefits that will be amortized from accumulated other comprehensive income into net periodic cost over the next fiscal year is $1.1 million . The accumulated pension benefit obligation was $53.0 million and $48.5 million at December 31, 201 7 and 201 6 , respectively. During 201 7 , we contributed $2.3 million to the qualified pension plan and our contributions for the other employee post-retirement benefits were not significant . During 201 8 , based on current estimates, we expect our contributions to the qualified pension plan will be approximately $2.3 million. We expect that our funding of other employee post-retirement benefits during 201 8 will not be significant. The following table provides the components of net periodic cost included in income from continuing operations for the plans for the years ended December 31, 2017, 2016 and 2015 (in thousands): Pension Benefits Other Benefits Year Ended December 31, Year Ended December 31, 2017 2016 2015 2017 2016 2015 Service cost $ 702 $ 668 $ 511 $ 1 $ 1 $ 2 Interest cost 1,961 1,982 1,896 21 22 38 Expected return on plan assets (2,124) (2,047) (2,107) — — — Recognition due to curtailment — — — — — 428 Amortization of prior service cost — — — 25 22 11 Amortization of net actuarial loss 998 889 795 10 5 26 Net periodic cost $ 1,537 $ 1,492 $ 1,095 $ 57 $ 50 $ 505 Assumptions Assumptions used to determine net periodic cost: For the Year Ended December 31, 2017 2016 2015 Discount rate 4.00% 4.25% 4.00% Expected return on plan assets 6.75% 7.00% 7.25% Rate of compensation increase 4.25% 4.25% 4.25% Assumptions used to determine the benefit obligation: December 31, 2017 2016 2015 Discount rate 3.50% 4.00% 4.25% Rate of compensation increase 4.25% 4.25% 4.25% The expected long-term rate of return on pension plan assets is selected by taking into account the expected duration of the projected benefit obligation for the plans, the asset mix of the plans and the fact that the plan assets are actively managed to mitigate risk. Our expected long-term rate of return on plan assets for 2018 is 7.25% . As of December 31, 201 7 and 201 6 , the Company contributions remaining for other benefits were primarily for fixed amounts. Therefore, future health care cost trend rates will not affect Company costs and accumulated postretirement benefit obligation. Plan Assets The Company has established the pension plan as a retirement vehicle for participants and as a funding vehicle to secure promised benefits. The investment goal is to provide a total return that over time will earn a rate of return to satisfy the benefit obligations given investment risk levels, contribution amounts and expenses. The pension plan invests in compliance with the Employee Retirement Income Security Act 1974, as amended (“ERISA”), and any subsequent applicable regulations and laws. The Company has adopted an investment policy for the management and oversight of the pension plan. It sets forth the objectives for the pension plan, the strategies to achieve these objectives, procedures for monitoring and control and the delegation of responsibilities for the oversight and management of pension plan assets. The Company’s Board of Directors has delegated primary fiduciary responsibility for pension assets to an investment committee. In carrying out its responsibilities, the investment committee establishes investment policy, makes asset allocation decisions, determines asset class strategies and retains investment managers to implement asset allocation and asset class strategy decisions. It is responsible for the investment policy and may amend such policy from time to time. Asset allocation policy is the principal method for achieving the pension plan’s investment objectives stated above. Asset allocation policy is reviewed regularly by the investment committee. In April 2016, the pension plan revised the asset allocation targets in its investment policy to introduce a liquid return-seeking portfolio consisting of global equities, marketable real assets and fixed income investments. Asset allocation policy is reviewed regularly. Pension plan assets are invested in various asset classes in what we believe is a prudent manner for the exclusive purpose of providing benefits to participants. U.S. equities are held for their long-term expected return premium over fixed income investments and inflation. Non-U.S. equities are held for their expected return premium (along with U.S. equities), as well as diversification relative to U.S. equities and other asset classes. Fixed income investments are held for diversification relative to equities. Real assets are held for diversification relative to equities and fixed income. Alternative investments are held for both diversification and higher returns than those typically available in traditional asset classes. The pension plan’s actual and targeted asset allocations, based on the revised policy as of December 31, 201 7 were as follows: December 31, 2017 Target Allocation Actual Allocation Target Target Range Liquid return-seeking investments 60% 56.5% 45 -65% Alternative investments 9% 14.5% 0 -20% Fixed income investments 31% 29.0% 20 -40% 100% 100% 100% The target allocation within the liquid return-seeking portfolio is 75% global equities, 15% marketable real assets and 10% fixed income. Allocations may vary by up to 3% from these targets. The pension plan’s assets are actively managed using a multi-asset, multi-style, multi-manager investment approach. Portfolio risk is controlled through this diversification process and monitoring of money managers. Consideration of such factors as differing rates of return, volatility and correlation are utilized in the asset and manager selection process. Diversification reduces the impact of losses in single investments. Performance results and fund accounting are provided to the Company by Russell on a monthly basis. Periodic reviews of the portfolio are performed by the investment committee with Russell. These reviews typically consist of a market and economic review, a performance review, an allocation review and a strategy review. Performance is judged by investment type against market indexes. Allocation adjustments or fund changes may occur after these reviews. Performance is reported to the Company’s Board of Directors at quarterly board meetings. Fair Value Measurements The values of the fund trusts are calculated using systems and procedures widely used across the investment industry. Generally, investments are valued based on information in financial publications of general circulation, statistical and valuation services, discounted cash flow methodology, records of security exchanges, appraisal by qualified persons, transactions and bona fide offers. The table below provides the fair values of the Company’s pension plan assets , by asset category, at December 31, 201 7 and 2016. The Company’s pension plan assets are mainly held in commingled employee benefit fund trusts. Fair Value Measurements Assets Measured Asset Category Total Percentage Level 1 Level 2 Level 3 at NAV (1) (In thousands) At December 31, 2017: Liquid return-seeking: Multi-asset fund (2) $ 21,447 60% $ 21,447 Fixed income securities: Commingled funds (3) 10,967 31% 10,967 Alternative investments: Equity long/short fund (4) 1,067 3% $ 1,067 Private equity fund (5) 83 0% 83 Distressed opportunity limited partnership (6) 504 2% 504 Multi-strategy limited partnerships (7) 1,572 4% 1,572 3,226 9% — — 3,226 — $ 35,640 100% — — $ 3,226 $ 32,414 At December 31, 2016: Liquid return-seeking: Multi-asset fund (2) $ 19,142 61% $ 19,142 Fixed income securities: Commingled funds (3) 9,389 30% 9,389 Alternative investments: Equity long/short fund (4) 835 3% $ 835 Private equity fund (5) 129 0% 129 Distressed opportunity limited partnership (6) 448 1% 448 Multi-strategy limited partnerships (7) 1,523 5% 1,523 2,935 9% — — 2,935 — $ 31,466 100% — — $ 2,935 $ 28,531 (1) Assets measured using the net asset value (“NAV”) practical expedient have not been classified in the fair value hierarchy. The NAV practical expedient is based on the fair value of the underlying assets of the common/collective trust (“CCT”) minus its liabilities, and then divided by the number of units outstanding. The NAV practical expedient of a CCT is calculated based on a compilation of primarily observable market information. (2) A single fund that invests in global equities, marketable real assets and fixed income securities. The fund has no limitation on redemptions. (3) Investments in bonds representing many sectors of the broad bond market with both short-term and intermediate-term maturities. The fund has no limitation on redemptions. (4) Investments primarily in long and short positions in equity securities of U.S. and non-U.S. companies. The fund has semi-annual tender offer redemption periods on June 30 and December 31 and is reported on a one month lag. (5) Fund invests in portfolios of secondary interest in established venture capital, buyout, mezzanine and special situation funds on a global basis. Fund is valued on a quarterly lag with adjustment for subsequent cash activity. The fund terminates on June 26, 2019, subject to extension for up to three one-year periods. Earlier redemptions are not permitted . (6) Investments mainly in discounted debt securities, bank loans, trade claims and other debt and equity securities of financially troubled companies. This partnership has semi-annual withdrawal rights on June 30 and December 31. This fund is reported on a one month lag. (7) Investments mainly in partnerships that have multi-strategy investment programs and do not rely on a single investment model. As of December 31, 201 7 and 201 6 , investments include a partnership that has monthly liquidation rights with notice of 33 days. Additional information pertaining to the changes in the fair value of the pension plan assets classified as Level 3 for the years ended December 31, 201 7 and 201 6 is presented below: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Private Equity Fund Equity Long/Short Fund Distressed Opportunity Ltd. Partnership Multi Strategy Funds Total (In thousands) Balance at January 1, 2016 $ 174 $ 847 $ 313 $ 1,455 $ 2,789 Unrealized gain (loss) (2) (12) 135 68 189 Sales (43) — — — (43) Balance at December 31, 2016 129 835 448 1,523 2,935 Unrealized gain 7 232 56 49 344 Sales (53) — — — (53) Balance at December 31, 2017 $ 83 $ 1,067 $ 504 $ 1,572 $ 3,226 Both the Equity Long/Short Fund and the Distressed Opportunity Limited Partnership are valued at each month-end based upon quoted market prices by the investment managers. The Multi-Strategy Fund invest s in various underlying securities. The fund’s net asset value is calculated by the fund manager and is not publicly available. The fund manager accumulate s all the underlying security values and use s them in determining the fund ’s net asset value . The private equity fund and limited partnership valuations are primarily based on cost/price of recent investments, earnings/performance multiples, net assets, discounted cash flows, comparable transactions and industry benchmarks. The annual audited financial statements of all funds are reviewed by the Company. Benefit Payments The following benefit payments, which reflect future services, as appropriate, are expected to be paid (in thousands): Pension Benefits Other Benefits 2018 $ 1,984 $ 70 2019 1,974 61 2020 2,138 55 2021 2,263 48 2022 2,381 43 2023 to 2027 14,044 147 Employee Savings (401k) Plan We have an employee savings (401k) plan, to which the Company provides contributions which match up to 6% of a participant’s base salary at a rate of 66⅔% . The Company also makes retirement contributions to the savings (401k) plan, which provide added retirement benefits to employees hired on or after July 1, 2006, as they are not eligible to participate in our defined benefit pension plan. Retirement contributions are provided regardless of an employee’s contribution to the savings (401k) plan. Matching contributions and retirement contributions are collectively known as Company contributions. Company contributions are made in cash and placed in each participant’s age appropriate “life cycle” fund. For each of the years ended December 31, 201 7 , 201 6 and 201 5 , Company contributions were $0.1 million. Participants of the savings (401k) plan are able to redirect Company contributions to any available fund within the plan. Participants are also able to direct their contributions to any available fund. |
Financial Instruments, Derivati
Financial Instruments, Derivative Instruments and Hedging | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments, Derivative Instruments and Hedging [Abstract] | |
Financial Instruments, Derivative Instruments and Hedging | 12 . 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. Foreign Currency We are subject to the risks associated with fluctuations in foreign currency exchange rates. To limit this foreign exchange rate exposure, we attempt to denominate all contracts in U.S. dollars. Where appropriate, derivatives are used to minimize the risk of foreign exchange rate fluctuations to operating results and cash flows. We do not use derivative instruments for trading or speculative purposes. Derivatives and Hedging Transactions There were no derivative instruments as of December 31, 201 7 and 201 6 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 1 3 . Commitments and Contingencies Financial Matters In the fourth quarter of 2012, we sold our former subsidiary, SSL, to MDA pursuant to the Purchase Agreement. Under the terms of the Purchase Agreement, we are obligated to indemnify MDA and its affiliates from (1) liabilities with respect to certain pre-closing taxes; and (2) certain litigation costs and litigation damages relating to the ViaSat Suit. Our consolidated balance sheets include an indemnification refund receivable of $2.4 million as of December 31, 2017 and 2016. This receivable represents payments to date net of the estimated fair value of the liability for our indemnification for our obligation with respect to certain 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 consolidated balance sheets include liabilities of $0. 3 million and $0.4 million as of December 31, 201 7 and 201 6 , respectively, for indemnification liabilities relating to the sale of GdB. See Note 1 4 — Related Party Transactions — Transactions with Affiliates — Telesat for commitments and contingencies relating to our agreement to indemnify Telesat for certain liabilities and our arrangements with ViaSat and Telesat. Lease Arrangements We lease certain facilities and equipment under agreements expiring at various dates. Certain leases covering facilities contain renewal and/or purchase options which may be exercised by us. We have no sublease income in any of the periods presented. Rent expense is as follows (in thousands): Rent Expense Year ended December 31, 2017 $ 646 Year ended December 31, 2016 641 Year ended December 31, 2015 679 The following is a sche dule of future minimum payments by year under leases with initial or remaining terms of one year or more as of December 31, 2016 (in thousands): Operating Leases 2018 $ 637 2019 318 Legal Proceedings ViaSat Under the terms of the Purchase Agreement, Loral agreed to indemnify MDA and its affiliates from certain damages in the ViaSat Suit brought in 2012 by ViaSat against Loral and SSL. In September 2014 , Loral, SSL 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 SSL in September 2013 were settled. Loral was also released by MDA, MDA Holdings and SSL from indemnification claims relating to the ViaSat lawsuits under the Purchase Agreement. The terms of the Settlement Agreement provide d , among other things, for payment by Loral and SSL 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 . 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 was responsible for $45 million , and MDA and SSL were responsible for $55 million, of the $100 million litigation settlement with ViaSat . Culminating with the final installment payment of $2.8 million in January 2017, Loral paid a t otal of $46.1 million , including interest, as its share of the ViaSat settlement. Our consolidated balance sheet as of December 31, 2017 and 2016 includes indemnification liabilities related to the ViaSat Settlement Agreement of nil and $2.8 million , respectively. Russian Joint Venture In connection with a joint venture that serves as the provider for Globalstar service in Russia in which Loral held an indirect ownership interest, in the fourth quarter of 2016, the Russian joint venture partner (the “Russian JV Partner”) commenced an arbitration against Loral in the London Court of International Arbitration (the “LCIA”). In the arbitration, the Russian JV Partner sought, among other things, to recover (i) losses it claimed it suffered in defending legal proceedings in Russian state courts brought by Loral (the “Collection Action”) and (ii) costs of the arbitration. Loral had brought its Collection Action to collect a payment owed to Loral by the Russian JV Partner in connection with its exit from the joint venture. The amount Loral expected to receive, after legal fees and expenses, would have been less than $1 million, but the payment was fraudulently diverted, Loral believes, by Russian attorneys retained by Loral’s US counsel to a shell company formed by one of the Russian attorneys. In June 2017, Loral entered into a settlement agreement with the Russian JV Partner pursuant to which, among other things, the arbitration and the Collection Action were settled and the parties released each other from all claims either party had or may have against the other relating to the dispute, Loral’s investment in the joint venture and their relationship. The settlement, which was completed in the fourth quarter of 2017, and related legal fees did not have a material adverse effect on Loral’s financial position or results of operations. The carrying value of Loral’s investment in the Russian joint venture was zero as of December 31, 2017 and 2016. Other Litigation We are not currently subject to any legal proceedings that, if decided adversely, could have a material adverse effect on our financial position or results of operations. In the future, however, we may become subject to legal proceedings and claims, either asserted or unasserted, that may arise in the ordinary course of business or otherwise. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 1 4 . 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 December 31, 2017 and December 31, 2016 , approximately 39.9% of the outstanding voting common stock and 58.4% of the combined outstanding voting and non-voting common stock of Loral. Transactions with Affiliates Telesat As described in Note 5 , we own 62.7 % 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 Canada 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 and its subsidiaries will be conducted and the relationships among the parties thereto and future shareholders of Telesat. 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 or any of its subsidiaries. Additionally, the Shareholders Agreement details the matters requiring the approval of the shareholders of Telesat (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. The Shareholders Agreement also (i) restricts the ability of holders of certain shares of Telesat to transfer such shares unless certain conditions are met or approval of the transfer is granted by the directors of Telesat, (ii) provides for a right of first offer to certain Telesat shareholders if a holder of equity shares of Telesat 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 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 (a “Telesat IPO”). In connection with our exploration of strategic initiatives to alter the status quo in our ownership of Telesat, in July 2015, we exercised our right under the Shareholders Agreement to require Telesat to conduct a Telesat IPO. Specifically, we requested that Telesat issue not more than 25 million newly issued shares of Telesat voting common stock. We also requested the termination of the Shareholders Agreement and the elimination of certain provisions in Telesat’s Articles of Incorporation, both of which we believe are important for a successful public offering. If those provisions are eliminated, an impediment to the conversion of our non-voting Telesat 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 a Telesat IPO and subject to the receipt of any necessary regulatory approvals, to obtain majority voting control of Telesat. Telesat selected two co-managing underwriters and informed us that it will work to implement a Telesat IPO pending our agreement with PSP on the post-IPO governance matters. To date, no such agreement has been reached. There can be no assurance as to whether, when or on what terms a Telesat IPO, termination or modification of the Shareholders Agreement or any requested changes to Telesat’s Articles of Incorporation may occur or that any particular economic, tax, structural or other objectives or benefits with respect to a Telesat IPO will be achieved. If a Telesat IPO is expected to proceed under unfavorable terms or at an unfavorable price, we may withdraw our demand for a Telesat IPO. Depending upon the outcome of discussions with PSP relating to Telesat strategic matters, we may assert certain claims against PSP for actions we believe violated our rights relating to the affairs of Telesat under the Telesat Shareholders Agreement and otherwise. In response to our claims, PSP has informed us that it believes that it may have claims against us, although we are not aware of the legal or factual basis for any such claims. We and PSP have agreed that, pending the outcome of our discussions, it would be beneficial to delay the commencement of any action relating to either party’s claims and have entered into an agreement (the “Tolling Agreement”) which preserves the parties’ rights to assert against one another legal claims relating to Telesat. We also included Telesat as a party to the Tolling Agreement because, as a technical matter of Canadian law and for purposes of potentially seeking equitable relief, Telesat may be a necessary party. There can be no assurance that if the Tolling Agreement lapses that we and PSP will not pursue legal claims against one another relating to Telesat. If we pursue claims against PSP, there can be no assurance that our claims will be successful or that the relief we seek will be granted. If PSP pursues claims against us, there can be no assurance that PSP will not prevail on its claims. 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 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, including a right to cause Telesat 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, to cause the sale of Telesat 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 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 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. In addition, Michael B. Targoff, Loral’s Vice Chairman, serves on the board of directors of 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. Our general and administrative expenses for each of the years ended December 31, 201 7 , 201 6 and 201 5 , are net of income of $ 5.0 million related to the Consulting Agreement. Loral received payments in cash from Telesat, net of withholding taxes, of $4. 8 million for each of the years ended December 31, 2017, 201 6 and 201 5 . In connection with the acquisition of our ownership interest in Telesat in 2007, Loral retained the benefit of tax recoveries related to the transferred assets and indemnified Telesat (“Telesat Indemnification”) for certain liabilities, including Loral Skynet’s tax liabilities arising prior to January 1, 2007. The Telesat Indemnification includes certain tax disputes currently under review in various jurisdictions including Brazil. The Brazilian tax authorities challenged Loral Skynet’s historical characterization of its revenue generated in Brazil for the years 2003 to 2006. Telesat received and challenged, on Loral Skynet’s behalf, tax assessments from Brazil totaling approximately $1. 0 million . The Company believes that Loral Skynet’s filing position will ultimately be sustained requiring no payment under the Telesat Indemnification. There can be no assurance that there will be no future claims under the Telesat Indemnification related to tax disputes. For the years ended December 31, 2017, 2016 and 2015, Loral’s employees and retirees participate d in certain welfare plans sponsored or managed by Telesat. Loral paid Telesat an annual administrative fee of $0.1 million and reimbursed Telesat for the plan costs attributable to Loral participants. Loral, along with 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 is or was, at the time, an executive of Telesat. The Grant Agreements confirm grants of Telesat 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 should Telesat be prohibited by applicable law or under the terms of any credit agreement applicable to Telesat 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 of its call right under Telesat '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 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 to cause the Special Purchaser or Loral to purchase a portion of the shares in Telesat owned by him, or that are issuable to him under Telesat '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 do es not also purchase all of PSP’s and its affiliates’ interest in Telesat . 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 , with Telesat agreeing to the acquisition of such subsidiary by Telesat from the Special Purchaser for nominal consideration and with the purchase price for the shares being paid by Telesat within ten (10) business days after completion of the winding-up of such subsidiary into Telesat . In the first quarter of 2017, Loral received a $242.7 million cash distribution from Telesat. ViaSat/Telesat In connection with an agreement entered into between SSL and ViaSat for the construction by SSL 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 connecti on with the assignments, Loral wa s 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, which expired in December 2015, we earned approximately $0.8 million for the year ended December 31, 2015. 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. SSL constructed XTAR’s satellite, which was successfully launched in February 2005. XTAR and Loral have entered into a management agreement whereby Loral provides general and specific services of a technical, financial and administrative nature to XTAR. For the services provided by Loral, XTAR, until December 31, 2013, was charged a quarterly management fee equal to 3.7% of XTAR’s quarterly gross revenues. Amounts due to Loral primarily due to the management agreement were $ 6.8 million as of December 31, 201 7 and 201 6 . Beginning in 2008, Loral and XTAR agreed to defer amounts owed to Loral under this agreement, and XTAR has agreed that its excess cash balance (as defined), will be applied at least quarterly towards repayment of receivables owed to Loral, as well as to Hisdesat and Telesat. No cash was received under this agreement for the years ended December 31, 201 7 , 201 6 and 201 5 , and we had an allowance of $6.6 million against these receivables as of December 31, 2017 and 201 6 . 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 . Under the agreement, Mr. Targoff receives consulting fees of $ 120,000 per month and reimburses the Company for certain expenses. For each of the years ended December 31, 2017, 2016 and 2015, Mr. Targoff earned $ 1,440,000 in consulting fees. Mr. Targoff reimbursed Loral net expenses of $54,000 for the year ended December 31, 2017 and $63,000 for each of the years ended December 31, 2016 and 2015. |
Selected Quarterly Financial In
Selected Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Financial Information | 1 5 . Selected Quarterly Financial Information (unaudited, in thousands, except per share amounts) Quarter Ended Year ended December 31, 2017 (1) March 31, June 30, September 30, December 31, Operating loss $ (2,063) $ (1,922) $ (2,015) $ (1,935) Loss from continuing operations before income taxes and equity in net income of affiliates (2,286) (2,557) (2,283) (1,644) Equity in net income of affiliates (2) 139,714 — 43,372 33,261 Income (loss) from continuing operations (3,4) 71,364 (2,177) 24,537 40,745 Loss from discontinued operations, net of tax (5) — — — Net income (loss) 71,359 (2,177) 24,537 40,745 Net income (loss) per share: Basic Income (loss) from continuing operations $ 2.31 $ (0.07) $ 0.79 $ 1.32 Loss from discontinued operations, net of tax — — — — Net income (loss) $ 2.31 $ (0.07) $ 0.79 $ 1.32 Diluted Income (loss) from continuing operations $ 2.30 $ (0.07) $ 0.77 $ 1.31 Loss from discontinued operations, net of tax — — — — Net income (loss) $ 2.30 $ (0.07) $ 0.77 $ 1.31 Quarter Ended Year ended December 31, 2016 (1) March 31, June 30, September 30, December 31, Operating loss $ (1,517) $ (1,674) $ (1,709) $ (1,826) Loss from continuing operations before income taxes and equity in net income (loss) of affiliates (2,000) (2,223) (1,858) (1,920) Equity in net income (loss) of affiliates (2) 46,494 43,357 6,948 (12,721) Income (loss) from continuing operations (3,4) 30,819 32,654 (3,821) (12,082) Loss from discontinued operations, net of tax (133) (102) (71) (64) Net income (loss) 30,686 32,552 (3,892) (12,146) Net income (loss) per share: Basic Income (loss) from continuing operations $ 1.00 $ 1.06 $ (0.12) $ (0.39) Loss from discontinued operations, net of tax — — — — Net income (loss) $ 1.00 $ 1.06 $ (0.12) $ (0.39) Diluted Income (loss) from continuing operations $ 0.95 $ 1.03 $ (0.12) $ (0.39) Loss from discontinued operations, net of tax — — — — Net income (loss) $ 0.95 $ 1.03 $ (0.12) $ (0.39) (1) The quarterly earnings per share information is computed separately for each period. Therefore, the sum of such quarterly per share amounts may differ from the total for the year. (2) For the three months ended March 31, 2017, our share of equity in net income of Telesat was $35.9 million, including a $1.6 million elimination of affiliate transactions and related amortization. In the first quarter of 2017, we received a $242.7 million cash distribution from Telesat which exceeded our initial investment and our share of cumulative equity in comprehensive income of Telesat by $103.8 million. In the first quarter of 2017, we recognized equity in net income of affiliates of $139.7 million, including the excess cash distribution of $103.8 million. For the three months ended June 30, 2017, our share of equity in net income of Telesat was $64.8 million, including a $1.7 million elimination of affiliate transactions and related amortization. We did not recognize this equity income, and instead reduced by $64.8 million the excess equity income of $103.8 million recognized during the three months ended March 31, 2017. For the three months ended September 30, 2017, our share of equity in net income of Telesat was $82.4 million, including a $0.8 million elimination of affiliate transactions and related amortization. We reduced our share of equity in net income of Telesat of $82.4 million by the remaining excess equity income of $39.0 million, resulting in the recognition of equity in net income of affiliates of $43.4 million. Amounts include equity in net income of affiliates of $5.1 million for the quarter ended June 30, 2016 that should have been recognized in prior periods. Equity in net income of affiliates for the quarter ended March 31, 2016 does not include a loss of $2.1 million that was recognized in the quarter ended June 30, 2016. These adjustments, which related to our investment in Telesat, consisted primarily of foreign exchange gains and losses. The Company has not revised previously reported amounts based on its belief that the effect of such adjustments is not material to the quarterly financial statements taken as a whole. (3) During the fourth quarter of 2017, we recorded additional tax benefits of approximately $37.2 million after having completed our tax study to determine the allowable amount of FTC benefit related to the distribution received from Telesat earlier in 2017 and approximately $16.9 million from fourth quarter expiration of the statute of limitations for the assessment of additional tax with regard to several of our state UTPs. These tax benefits were partially offset by an additional fourth quarter charge of $33.2 million related to the tax rate reduction from the Tax Cuts and Jobs Act. (4) Variations in income from continuing operations among quarters in 2017 and 2016 are primarily the result of (i) the effect of changes in foreign exchange rates between the Canadian dollar and the U.S. dollar on our equity in net income or loss of Telesat and (ii) the limitation on recording our portion of Telesat’s net income or loss due to the reduction of the carrying amount of our investment in Telesat to zero. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | VALUATION AND QUALIFYING ACCOUNTS For the Year Ended December 31, 201 7 , 201 6 and 201 5 (In thousands) Additions Balance at Charged to Charged to Balance at Beginning Costs and Other End of Description of Period Expenses Accounts (1) Period Year ended 2015 Allowance for affiliate receivables $ 6,692 $ — $ — $ 6,692 Deferred tax valuation allowance $ 7,905 $ 307 $ — $ 8,212 Year ended 2016 Allowance for affiliate receivables $ 6,692 $ — $ — $ 6,692 Deferred tax valuation allowance $ 8,212 $ (4,565) $ — $ 3,647 Year ended 2017 Allowance for affiliate receivables $ 6,692 $ — $ — $ 6,692 Deferred tax valuation allowance $ 3,647 $ 120,389 $ — $ 124,036 (1) Changes in the deferred tax valuation allowance which have been charged to other accounts have been recorded in other comprehensive loss. |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 12 Months Ended |
Dec. 31, 2017 | |
Basis of Presentation [Abstract] | |
Discontinued Operations | Discontinued Operations 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.) (“SSL”), 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, SSL, MDA and MDA Holdings, Loral agreed to indemnify MDA and its affiliates from (1) liabilities with respect to certain pre-closing taxes; and (2) certain litigation costs and litigation damages in a lawsuit (the “ViaSat Suit”) brought in 2012 by ViaSat, Inc. (“ViaSat”) against Loral and SSL (see Note 13). Adjustments to amounts previously reported in discontinued operations and interest expense that is directly related to the Sale are classified as discontinued operations in the statements of operations and cash flows for the years ended December 31, 2017, 2016 and 2015. |
Investments in Affiliates | Investments in Affiliates Our ownership interest in Telesat is accounted for using the equity method of accounting. Income and losses of Telesat are recorded based on our economic interest. 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 them while we owned SSL and on Loral’s sale to Telesat in April 2011 of its portion of the payload on the ViaSat-1 satellite and related assets. Non-refundable cash distributions received from Telesat in excess of our initial investment and our share of cumulative equity in comprehensive income of Telesat, net of cash distributions received in prior periods, are recorded as equity in net income of Telesat (“Excess Cash Distribution”) since we have no obligation to provide future financial support to Telesat. We do not record additional equity in net income of Telesat until our share of Telesat’s future net income exceeds the Excess Cash Distribution. 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. We had no guarantees or other funding obligations for our equity method investments for the years ended December 31, 2017, 2016 and 2015. We use the nature of distribution approach to classify distributions from equity method investments on the statements of cash flows. 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 materially 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, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash As of December 31, 2017, the Company had $255. 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. Management determines the appropriate classification of its investments at the time of purchase and at each balance sheet date. As of December 31, 2017 and December 31, 2016, the Company had restricted cash of $0.3 million and nil , respectively. The restricted cash of $0.3 million as of December 31, 2017 represents the amount pledged as collateral to the issuer of a standby letter of credit (the “LC”). The LC, which expires in October 2018 and contains an automatic renewal period of one year, has been provided as a guaranty to the lessor of our corporate offices. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheet to the condensed consolidated statement of cash flows (in thousands): December 31, 2017 Cash and cash equivalents $ 255,139 Restricted cash included in other assets 304 Cash, cash equivalents and restricted cash shown in the statement of cash flows $ 255,443 |
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 of December 31, 2017 and December 31, 2016, our cash and cash equivalents were invested primarily in several liquid Prime and Government AAA money market funds. Such funds are not insured by the Federal Deposit Insurance Corporation. The dispersion across funds reduces the exposure of a default at any one fund. As a result, management believes that its potential credit risks are minimal. |
Fair Value Measurements | Fair Value Measurements U.S. GAAP defines fair value as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants. U.S. GAAP also establishes a fair value hierarchy that gives the highest priority to observable inputs and the lowest priority to unobservable inputs. The three levels of the fair value hierarchy are described below: Level 1: Inputs represent a fair value that is derived from unadjusted quoted prices for identical assets or liabilities traded in active markets at the measurement date. Level 2: Inputs represent a fair value that is derived from quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities, and pricing inputs, other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3: Inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. Assets and Liabilities Measured at Fair Value The following table presents our assets and liabilities measured at fair value at December 31, 2017 and December 31, 2016 (in thousands): December 31, 2017 December 31, 2016 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Cash and cash equivalents: Money market funds $ 251,742 $ — $ — $ 35,514 $ — $ — Other current assets: Indemnification - Sale of SSL $ — $ — $ 2,410 $ — $ — $ 2,410 Liabilities Long term liabilities Indemnification - Globalstar do Brasil S.A. $ — $ — $ 293 $ — $ — $ 357 The carrying amount of cash equivalents approximates fair value as of each reporting date because of the short maturity of those instruments. The Company did not have any non-financial assets or non-financial liabilities that were recognized or disclosed at fair value as of December 31, 2017 and December 31, 2016. 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. The asset resulting from the indemnification of SSL is for certain 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. |
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. |
Income Taxes | Income Taxes Loral and its subsidiaries are subject to U.S. federal, state and local income taxation on their worldwide income and foreign taxation on certain income from sources outside the United States. Telesat is subject to tax in Canada and other jurisdictions, and Loral will provide in operating earnings any additional U.S. current and deferred tax required on distributions received or deemed to be received from Telesat. Deferred income taxes reflect the future tax effect of temporary differences between the carrying amount of assets and liabilities for financial and income tax reporting and are measured by applying anticipated statutory tax rates in effect for the year during which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent it is more likely than not that the deferred tax assets will not be realized. The tax benefit of an uncertain tax position (“UTP”) taken or expected to be taken in income tax returns is recognized only if it is “more likely than not” to be sustained on examination by the taxing authorities, based on its technical merits as of the reporting date. The tax benefit recognized in the financial statements from such a position is measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties related to income taxes in income tax expense on a quarterly basis. The unrecognized tax benefit of a UTP is recognized in the period when the UTP is effectively settled. Previously recognized tax positions are derecognized in the first period in which it is no longer more likely than not that the tax position would be sustained upon examination. |
Earnings Per Share | Earnings per Share Basic earnings per share are computed based upon the weighted average number of shares of voting and non-voting common stock outstanding during each period. Shares of non-voting common stock are in all respects identical to and treated equally with shares of voting common stock except for the absence of voting rights (other than as provided in Loral’s Amended and Restated Certificate of Incorporation which was ratified by Loral’s stockholders on May 19, 2009). Diluted earnings per share are based on the weighted average number of shares of voting and non-voting common stock outstanding during each period, adjusted for the effect of unvested or unconverted restricted stock units. For diluted earnings per share, earnings are adjusted for the dilutive effect of Telesat stock options. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Basis of Presentation [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheet to the condensed consolidated statement of cash flows (in thousands): December 31, 2017 Cash and cash equivalents $ 255,139 Restricted cash included in other assets 304 Cash, cash equivalents and restricted cash shown in the statement of cash flows $ 255,443 |
Assets and Liabilities Measured at Fair Value on Recurring and Non-Recurring basis | The following table presents our assets and liabilities measured at fair value at December 31, 2017 and December 31, 2016 (in thousands): December 31, 2017 December 31, 2016 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets Cash and cash equivalents: Money market funds $ 251,742 $ — $ — $ 35,514 $ — $ — Other current assets: Indemnification - Sale of SSL $ — $ — $ 2,410 $ — $ — $ 2,410 Liabilities Long term liabilities Indemnification - Globalstar do Brasil S.A. $ — $ — $ 293 $ — $ — $ 357 |
Additional Cash Flow Information | The following represents non-cash activities and supplemental information to the consolidated statements of cash flows (in thousands): Year Ended December 31, 2017 2016 2015 Non-cash operating items: Equity in net (income) loss of affiliates $ (216,347) $ (84,078) $ 104,792 Deferred taxes 80,189 29,535 (39,694) Depreciation and amortization 38 60 41 Amortization of prior service credit and actuarial loss 1,033 916 1,260 Net non-cash operating items – continuing operations $ (135,087) $ (53,567) $ 66,399 Supplemental information: Interest paid – continuing operations $ 27 $ 20 $ 314 Interest paid – discontinued operations $ 55 $ 750 $ 1,549 Tax payments, net of refunds – continuing operations $ 12,504 $ 153 $ (233) |
Accumulated Other Comprehensi26
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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) Income Loss Balance at January 1, 2015 $ (13,982) $ (15,239) $ (29,221) Other comprehensive loss before reclassification (265) — (265) Amounts reclassified from accumulated other comprehensive loss 788 — 788 Net current-period other comprehensive income 523 — 523 Balance at December 31, 2015 (13,459) (15,239) (28,698) Other comprehensive (loss) income before reclassification (1,209) 15,477 14,268 Amounts reclassified from accumulated other comprehensive loss 594 — 594 Net current-period other comprehensive (loss) income (615) 15,477 14,862 Balance at December 31, 2016 (14,074) 238 (13,836) Other comprehensive loss before reclassification (1,365) (18,280) (19,645) Amounts reclassified from accumulated other comprehensive loss 671 — 671 Net current-period other comprehensive loss (694) (18,280) (18,974) Tax Cuts and Jobs Act, reclassification of tax effect from accumulated other comprehensive loss to accumulated deficit (1,686) (2,782) (4,468) Balance at December 31, 2017 $ (16,454) $ (20,824) $ (37,278) |
Schedule of Other Comprehensive Income (Loss) and Related Income Tax Effects | The components of other comprehensive (loss) income and related tax effects are as follows (in thousands): Before-Tax Amount Tax (Provision) Benefit Net-of-Tax Amount Year ended December 31, 2017 Postretirement Benefits: Net actuarial loss and prior service credits $ (2,101) $ 736 $ (1,365) Amortization of prior service credits and net actuarial loss 1,033 (a) (362) 671 Postretirement benefits (1,068) 374 (694) Proportionate share of Telesat other comprehensive loss (28,132) 9,852 (18,280) Other comprehensive loss $ (29,200) $ 10,226 $ (18,974) Year ended December 31, 2016 Postretirement Benefits: Net actuarial loss and prior service credits $ (1,865) $ 656 $ (1,209) Amortization of prior service credits and net actuarial loss 916 (a) (322) 594 Postretirement benefits (949) 334 (615) Proportionate share of Telesat other comprehensive income (b) 23,872 (8,395) 15,477 Other comprehensive income $ 22,923 $ (8,061) $ 14,862 Year ended December 31, 2015 Postretirement Benefits: Net actuarial loss and prior service credits $ (424) $ 159 $ (265) Amortization of prior service credits and net actuarial loss 1,260 (a) (472) 788 Postretirement benefits 836 (313) 523 Proportionate share of Telesat other comprehensive gain (loss) — — — Other comprehensive income $ 836 $ (313) $ 523 (a) Reclassifications are included in general and administrative expenses . (b) Includes $20.8 million ( $13.5 million, net of tax) share in the equity of Telesat’s other comprehensive income that we could not record in 2015 (see Note 5) . |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Current Assets [Abstract] | |
Schedule of Other Current Assets | Other current assets consist of (in thousands): December 31 December 31, 2017 2016 Indemnification receivable from SSL for pre-closing taxes (see Note 13) $ 2,410 $ 2,410 Due from affiliates 217 225 Prepaid expenses 198 192 Other 274 111 $ 3,099 $ 2,938 |
Investments in Affiliates (Tabl
Investments in Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments in and Advances to Affiliates [Line Items] | |
Investments in Affiliates | Investments in affiliates consist of (in thousands): December 31, 2017 2016 Telesat $ 53,430 $ 107,950 |
Equity in Net (Loss) Income of Affiliates | Equity in net income (loss) of affiliates consists of (in thousands): Year Ended December 31, 2017 2016 2015 Telesat $ 216,347 $ 84,078 $ (74,329) XTAR — — (30,463) $ 216,347 $ 84,078 $ (104,792) |
Telesat Holdings Inc [Member] | |
Investments in and Advances to Affiliates [Line Items] | |
Summary Financial Data, Equity Method Investment | The following table presents summary financial data for Telesat in accordance with U.S. GAAP, for the years ended December 31, 2017, 2016 and 2015 and as of December 31, 2017 and 2016 (in thousands): Year Ended December 31, 2017 2016 2015 Statement of Operations Data: Revenues $ 712,390 $ 703,131 $ 751,684 Operating expenses (150,872) (139,141) (140,706) Depreciation, amortization and stock-based compensation (194,203) (195,781) (190,985) Insurance proceeds 4,739 — — Loss on disposition of long lived assets (207) (1,937) (24) Operating income 371,847 366,272 419,969 Interest expense (151,528) (145,288) (138,783) Loss on refinancing — (12,246) — Foreign exchange gain (loss) 173,433 68,719 (426,980) (Loss) gain on financial instruments (3,516) 974 7,810 Other income 2,307 4,590 3,672 Income tax provision (54,424) (58,772) (74,447) Net income (loss) $ 338,119 $ 224,249 $ (208,759) December 31, 2017 2016 Balance Sheet Data: Current assets $ 445,104 $ 678,361 Total assets 4,082,472 4,194,006 Current liabilities 126,100 154,173 Long-term debt, including current portion 2,829,911 2,877,950 Total liabilities 3,538,656 3,597,056 Shareholders’ equity 543,816 596,950 |
XTAR, LLC [Member] | |
Investments in and Advances to Affiliates [Line Items] | |
Summary Financial Data, Equity Method Investment | The following table presents summary financial data for XTAR for the years ended December 31, 2017, 2016 and 2015 and as of December 31, 2017 and 2016 (in thousands): Year Ended December 31, 2017 2016 2015 Statement of Operations Data: Revenues $ 16,775 $ 18,550 $ 25,852 Operating expenses (15,838) (24,123) (31,933) Depreciation and amortization (6,471) (8,589) (8,874) Operating loss (5,534) (14,162) (14,955) Net loss (11,646) (18,296) (18,722) December 31, 2017 2016 Balance Sheet Data: Current assets $ 5,670 $ 6,202 Total assets 28,437 35,846 Current liabilities 2,554 1,773 Related party liabilities 73,699 73,459 Total liabilities 76,253 75,232 Members’ equity (47,816) (39,386) |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Current Liabilities [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consists of (in thousands): December 31, 2017 2016 SSL indemnification liability relating to ViaSat Suit settlement (see Note 13) $ — $ 2,801 Due to affiliate 9 — Accrued professional fees 1,117 665 Pension and other postretirement liabilities 69 108 Accrued liabilities 84 198 $ 1,279 $ 3,772 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Summary of Income Tax Benefit (Provision) | The following summarizes our income tax (provision) benefit (in thousands): Year Ended December 31, 2017 2016 2015 Current: U.S. federal $ (13,783) $ (1,718) $ (1,089) State and local 21,114 2,981 7,106 Foreign (250) (235) (235) Total current 7,081 1,028 5,782 Deferred: U.S. federal (80,136) (26,337) 35,721 State and local (53) (3,198) 3,973 Total deferred (80,189) (29,535) 39,694 Total income tax (provision) benefit $ (73,108) $ (28,507) $ 45,476 |
Summary of Uncertain Tax Positions Included in Income Tax Provision | Our current tax benefit includes a decrease to our liability for UTPs for (in thousands): Year Ended December 31, 2017 2016 2015 Decrease to unrecognized tax benefits $ 1,062 $ 2,477 $ 4,921 Interest income (expense) 429 (2,011) (103) Penalties 5,985 387 1,393 Total $ 7,476 $ 853 $ 6,211 |
Summary of Additional Income Tax Disclosures | In addition to the income tax (provision) benefit presented above, we also recorded the following items (in thousands): Year Ended December 31, 2017 2016 2015 Tax benefit on loss from discontinued operations $ 3 $ 200 $ 450 Adjustment to tax benefit associated with stock-based compensation recorded to paid-in-capital — (141) 2,609 Cumulative effect adjustment attributable to previously unrecognized excess tax benefits on stock-based compensation 4,697 — — Deferred tax benefit (provision) for adjustments in other comprehensive loss (see Note 3) 10,226 (8,061) (313) |
Schedule of Effective Income Tax Rate Reconciliation | The (provision) benefit for income taxes differs from the amount computed by applying the statutory U.S. federal income tax rate on the loss from continuing operations before income taxes and equity in net income (loss) of affiliates because of the effect of the following items (in thousands): Year Ended December 31, 2017 2016 2015 Tax benefit at U.S. Statutory Rate of 35% $ 3,069 $ 2,800 $ 3,566 Permanent adjustments which change statutory amounts: State and local income taxes, net of federal income tax 15,413 (4,588) 7,821 Equity in net income (loss) of affiliates (73,997) (29,427) 36,677 Provision for unrecognized tax benefits (1,234) (1,113) (708) Nondeductible expenses (1,235) (586) (1,411) Change in valuation allowance (120,389) 4,565 (307) Income tax credits 138,780 — — Foreign income taxes (250) (153) (153) Effect of U.S. tax law changes (33,248) — — Other, net (17) (5) (9) Total income tax (provision) benefit $ (73,108) $ (28,507) $ 45,476 |
Unrecognized Tax Benefits | The following table summarizes the activity related to our unrecognized tax benefits (in thousands): Year Ended December 31, 2017 2016 2015 Balance at January 1 $ 68,149 $ 72,298 $ 78,333 Increases related to prior year tax positions — 1,525 1,955 Decreases as a result of statute expirations (14,172) (5,674) (6,876) Decreases as a result of tax settlements — — (1,114) Increases related to current year tax positions 16,433 — — Balance at December 31 $ 70,410 $ 68,149 $ 72,298 |
Schedule of Net Deferred Tax Assets | The significant components of the net deferred income tax assets are (in thousands): December 31, 2017 2016 Deferred tax assets: Net operating loss and tax credit carryforwards $ 165,267 $ 119,524 Compensation and benefits 943 1,582 Indemnification liabilities 216 1,346 Other, net 104 219 Federal benefit of uncertain tax positions 1,518 7,528 Pension costs 3,458 5,984 Investments in and advances to affiliates 2,546 — Total deferred tax assets before valuation allowance 174,052 136,183 Less valuation allowance (124,036) (3,647) Deferred tax assets net of valuation allowance 50,016 132,536 Deferred tax liabilities: Investments in and advances to affiliates — 17,257 Total deferred tax liabilities — 17,257 Net deferred tax assets $ 50,016 $ 115,279 Classification on consolidated balance sheets: Deferred tax assets $ 50,016 $ 115,285 Long-term liabilities — (6) Net deferred tax assets $ 50,016 $ 115,279 |
Long-Term Liabilities (Tables)
Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Long-Term Liabilities [Abstract] | |
Schedule of Long Term Liabilities | Long term liabilities consists of (in thousands): December 31, 2017 2016 Indemnification liabilities - other (see Note 13) 293 357 Deferred tax liability — 6 Liabilities for uncertain tax positions 61,182 68,658 Other — 238 $ 61,475 $ 69,259 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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): 2017 2016 Income from continuing operations — basic $ 134,469 $ 47,570 Less: Adjustment for dilutive effect of Telesat stock options (1,194) (1,096) Income from continuing operations — diluted $ 133,275 $ 46,474 |
Schedule of Weighted Average Number of Shares for Calculating Diluted Earnings per Share | The following is the computation of common shares outstanding for diluted earnings per share (in thousands): Year Ended December 31, 2017 2016 Weighted average common shares outstanding 30,933 30,933 Unconverted restricted stock units 75 75 Common shares outstanding for diluted earnings per share 31,008 31,008 |
Summary of Unvested Restricted Stock Units Excluded from the Calculation of Diluted Loss Per Share | For the year ended December 31, 2015, 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): Year Ended December 31, 2015 Unconverted restricted stock units 78 |
Pensions and Other Employee B33
Pensions and Other Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Pensions and Other Employee Benefit Plans [Abstract] | |
Reconciliation of Changes in Plans' Benefit Obligations and Fair Value of Assets | The following tables provide a reconciliation of the changes in the plans’ benefit obligations and fair value of assets for 201 7 and 201 6 , and a statement of the funded status as of December 31, 201 7 and 201 6 . We use a December 31 measurement date for the pension plan and other post-retirement benefits (in thousands). Pension Benefits Other Benefits Year Ended December 31, Year Ended December 31, 2017 2016 2017 2016 Reconciliation of benefit obligation: Obligation at beginning of period $ 49,463 $ 46,976 $ 544 $ 559 Service cost 702 668 1 1 Interest cost 1,961 1,982 21 22 Participant contributions 27 45 17 20 Actuarial loss (gain) 3,599 1,537 (22) (6) Benefit payments (1,776) (1,745) (42) (52) Obligation at December 31, 53,976 49,463 519 544 Reconciliation of fair value of plan assets: Fair value of plan assets at beginning of period 31,466 29,296 — — Actual return on plan assets 3,601 1,709 — — Employer contributions 2,322 2,161 25 32 Participant contributions 27 45 17 20 Benefit payments (1,776) (1,745) (42) (52) Fair value of plan assets at December 31, 35,640 31,466 — — Funded status at end of period $ (18,336) $ (17,997) $ (519) $ (544) |
Pre-Tax Amounts Recognized in Accumulated Other Comprehensive Loss | The pre-tax amounts recognized in accumulated other comprehensive loss as of December 31, 201 7 and 201 6 consist of (in thousands): Pension Benefits Other Benefits December 31, December 31, 2017 2016 2017 2016 Actuarial loss $ (18,941) $ (17,816) $ (48) $ (80) Amendments-prior service cost — — (22) (47) $ (18,941) $ (17,816) $ (70) $ (127) |
Amounts Recognized in Other Comprehensive Loss | The amounts recognized in other comprehensive loss during the years ended December 31, 201 7 , 201 6 and 201 5 consist of (in thousands): Year Ended December 31, 2017 2016 2015 Pension Benefits Other Benefits Pension Benefits Other Benefits Pension Benefits Other Benefits Actuarial (loss) gain during the period $ (2,123) $ 22 $ (1,875) $ 10 $ (425) $ 1 Amortization of actuarial loss 998 10 889 5 795 26 Amortization of prior service cost — 25 — 22 — 11 Recognition due to curtailment — — — — — 428 Total recognized in other comprehensive income (loss) $ (1,125) $ 57 $ (986) $ 37 $ 370 $ 466 |
Amounts Recognized in the Balance Sheets | Amounts recognized in the balance sheet consist of (in thousands): Pension Benefits Other Benefits December 31, December 31, 2017 2016 2017 2016 Current Liabilities $ — $ — $ 69 $ 108 Long-Term Liabilities 18,336 17,997 450 436 $ 18,336 $ 17,997 $ 519 $ 544 |
Components of Net Periodic Cost | The following table provides the components of net periodic cost included in income from continuing operations for the plans for the years ended December 31, 2017, 2016 and 2015 (in thousands): Pension Benefits Other Benefits Year Ended December 31, Year Ended December 31, 2017 2016 2015 2017 2016 2015 Service cost $ 702 $ 668 $ 511 $ 1 $ 1 $ 2 Interest cost 1,961 1,982 1,896 21 22 38 Expected return on plan assets (2,124) (2,047) (2,107) — — — Recognition due to curtailment — — — — — 428 Amortization of prior service cost — — — 25 22 11 Amortization of net actuarial loss 998 889 795 10 5 26 Net periodic cost $ 1,537 $ 1,492 $ 1,095 $ 57 $ 50 $ 505 |
Assumptions Used to Determine Net Periodic Cost | Assumptions used to determine net periodic cost: For the Year Ended December 31, 2017 2016 2015 Discount rate 4.00% 4.25% 4.00% Expected return on plan assets 6.75% 7.00% 7.25% Rate of compensation increase 4.25% 4.25% 4.25% |
Assumptions Used to Determine Benefit Obligation | Assumptions used to determine the benefit obligation: December 31, 2017 2016 2015 Discount rate 3.50% 4.00% 4.25% Rate of compensation increase 4.25% 4.25% 4.25% |
Pension Plans' Actual and Targeted Asset Allocations | The pension plan’s actual and targeted asset allocations, based on the revised policy as of December 31, 201 7 were as follows: December 31, 2017 Target Allocation Actual Allocation Target Target Range Liquid return-seeking investments 60% 56.5% 45 -65% Alternative investments 9% 14.5% 0 -20% Fixed income investments 31% 29.0% 20 -40% 100% 100% 100% |
Fair Values of Pension Plan Assets | The table below provides the fair values of the Company’s pension plan assets , by asset category, at December 31, 201 7 and 2016. The Company’s pension plan assets are mainly held in commingled employee benefit fund trusts. Fair Value Measurements Assets Measured Asset Category Total Percentage Level 1 Level 2 Level 3 at NAV (1) (In thousands) At December 31, 2017: Liquid return-seeking: Multi-asset fund (2) $ 21,447 60% $ 21,447 Fixed income securities: Commingled funds (3) 10,967 31% 10,967 Alternative investments: Equity long/short fund (4) 1,067 3% $ 1,067 Private equity fund (5) 83 0% 83 Distressed opportunity limited partnership (6) 504 2% 504 Multi-strategy limited partnerships (7) 1,572 4% 1,572 3,226 9% — — 3,226 — $ 35,640 100% — — $ 3,226 $ 32,414 At December 31, 2016: Liquid return-seeking: Multi-asset fund (2) $ 19,142 61% $ 19,142 Fixed income securities: Commingled funds (3) 9,389 30% 9,389 Alternative investments: Equity long/short fund (4) 835 3% $ 835 Private equity fund (5) 129 0% 129 Distressed opportunity limited partnership (6) 448 1% 448 Multi-strategy limited partnerships (7) 1,523 5% 1,523 2,935 9% — — 2,935 — $ 31,466 100% — — $ 2,935 $ 28,531 (1) Assets measured using the net asset value (“NAV”) practical expedient have not been classified in the fair value hierarchy. The NAV practical expedient is based on the fair value of the underlying assets of the common/collective trust (“CCT”) minus its liabilities, and then divided by the number of units outstanding. The NAV practical expedient of a CCT is calculated based on a compilation of primarily observable market information. (2) A single fund that invests in global equities, marketable real assets and fixed income securities. The fund has no limitation on redemptions. (3) Investments in bonds representing many sectors of the broad bond market with both short-term and intermediate-term maturities. The fund has no limitation on redemptions. (4) Investments primarily in long and short positions in equity securities of U.S. and non-U.S. companies. The fund has semi-annual tender offer redemption periods on June 30 and December 31 and is reported on a one month lag. (5) Fund invests in portfolios of secondary interest in established venture capital, buyout, mezzanine and special situation funds on a global basis. Fund is valued on a quarterly lag with adjustment for subsequent cash activity. The fund terminates on June 26, 2019, subject to extension for up to three one-year periods. Earlier redemptions are not permitted . (6) Investments mainly in discounted debt securities, bank loans, trade claims and other debt and equity securities of financially troubled companies. This partnership has semi-annual withdrawal rights on June 30 and December 31. This fund is reported on a one month lag. (7) Investments mainly in partnerships that have multi-strategy investment programs and do not rely on a single investment model. As of December 31, 201 7 and 201 6 , investments include a partnership that has monthly liquidation rights with notice of 33 days. |
Changes in Fair Value of Pension Plan Assets | Additional information pertaining to the changes in the fair value of the pension plan assets classified as Level 3 for the years ended December 31, 201 7 and 201 6 is presented below: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Private Equity Fund Equity Long/Short Fund Distressed Opportunity Ltd. Partnership Multi Strategy Funds Total (In thousands) Balance at January 1, 2016 $ 174 $ 847 $ 313 $ 1,455 $ 2,789 Unrealized gain (loss) (2) (12) 135 68 189 Sales (43) — — — (43) Balance at December 31, 2016 129 835 448 1,523 2,935 Unrealized gain 7 232 56 49 344 Sales (53) — — — (53) Balance at December 31, 2017 $ 83 $ 1,067 $ 504 $ 1,572 $ 3,226 |
Benefit Payments Expected to be Paid | The following benefit payments, which reflect future services, as appropriate, are expected to be paid (in thousands): Pension Benefits Other Benefits 2018 $ 1,984 $ 70 2019 1,974 61 2020 2,138 55 2021 2,263 48 2022 2,381 43 2023 to 2027 14,044 147 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies [Abstract] | |
Operating Leases Expense Net of Sublease Income | Rent expense is as follows (in thousands): Rent Expense Year ended December 31, 2017 $ 646 Year ended December 31, 2016 641 Year ended December 31, 2015 679 |
Schedule of Future Minimum Payments | The following is a sche dule of future minimum payments by year under leases with initial or remaining terms of one year or more as of December 31, 2016 (in thousands): Operating Leases 2018 $ 637 2019 318 |
Selected Quarterly Financial 35
Selected Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule of Quarterly Financial Information | Quarter Ended Year ended December 31, 2017 (1) March 31, June 30, September 30, December 31, Operating loss $ (2,063) $ (1,922) $ (2,015) $ (1,935) Loss from continuing operations before income taxes and equity in net income of affiliates (2,286) (2,557) (2,283) (1,644) Equity in net income of affiliates (2) 139,714 — 43,372 33,261 Income (loss) from continuing operations (3,4) 71,364 (2,177) 24,537 40,745 Loss from discontinued operations, net of tax (5) — — — Net income (loss) 71,359 (2,177) 24,537 40,745 Net income (loss) per share: Basic Income (loss) from continuing operations $ 2.31 $ (0.07) $ 0.79 $ 1.32 Loss from discontinued operations, net of tax — — — — Net income (loss) $ 2.31 $ (0.07) $ 0.79 $ 1.32 Diluted Income (loss) from continuing operations $ 2.30 $ (0.07) $ 0.77 $ 1.31 Loss from discontinued operations, net of tax — — — — Net income (loss) $ 2.30 $ (0.07) $ 0.77 $ 1.31 Quarter Ended Year ended December 31, 2016 (1) March 31, June 30, September 30, December 31, Operating loss $ (1,517) $ (1,674) $ (1,709) $ (1,826) Loss from continuing operations before income taxes and equity in net income (loss) of affiliates (2,000) (2,223) (1,858) (1,920) Equity in net income (loss) of affiliates (2) 46,494 43,357 6,948 (12,721) Income (loss) from continuing operations (3,4) 30,819 32,654 (3,821) (12,082) Loss from discontinued operations, net of tax (133) (102) (71) (64) Net income (loss) 30,686 32,552 (3,892) (12,146) Net income (loss) per share: Basic Income (loss) from continuing operations $ 1.00 $ 1.06 $ (0.12) $ (0.39) Loss from discontinued operations, net of tax — — — — Net income (loss) $ 1.00 $ 1.06 $ (0.12) $ (0.39) Diluted Income (loss) from continuing operations $ 0.95 $ 1.03 $ (0.12) $ (0.39) Loss from discontinued operations, net of tax — — — — Net income (loss) $ 0.95 $ 1.03 $ (0.12) $ (0.39) (1) The quarterly earnings per share information is computed separately for each period. Therefore, the sum of such quarterly per share amounts may differ from the total for the year. (2) For the three months ended March 31, 2017, our share of equity in net income of Telesat was $35.9 million, including a $1.6 million elimination of affiliate transactions and related amortization. In the first quarter of 2017, we received a $242.7 million cash distribution from Telesat which exceeded our initial investment and our share of cumulative equity in comprehensive income of Telesat by $103.8 million. In the first quarter of 2017, we recognized equity in net income of affiliates of $139.7 million, including the excess cash distribution of $103.8 million. For the three months ended June 30, 2017, our share of equity in net income of Telesat was $64.8 million, including a $1.7 million elimination of affiliate transactions and related amortization. We did not recognize this equity income, and instead reduced by $64.8 million the excess equity income of $103.8 million recognized during the three months ended March 31, 2017. For the three months ended September 30, 2017, our share of equity in net income of Telesat was $82.4 million, including a $0.8 million elimination of affiliate transactions and related amortization. We reduced our share of equity in net income of Telesat of $82.4 million by the remaining excess equity income of $39.0 million, resulting in the recognition of equity in net income of affiliates of $43.4 million. Amounts include equity in net income of affiliates of $5.1 million for the quarter ended June 30, 2016 that should have been recognized in prior periods. Equity in net income of affiliates for the quarter ended March 31, 2016 does not include a loss of $2.1 million that was recognized in the quarter ended June 30, 2016. These adjustments, which related to our investment in Telesat, consisted primarily of foreign exchange gains and losses. The Company has not revised previously reported amounts based on its belief that the effect of such adjustments is not material to the quarterly financial statements taken as a whole. (3) During the fourth quarter of 2017, we recorded additional tax benefits of approximately $37.2 million after having completed our tax study to determine the allowable amount of FTC benefit related to the distribution received from Telesat earlier in 2017 and approximately $16.9 million from fourth quarter expiration of the statute of limitations for the assessment of additional tax with regard to several of our state UTPs. These tax benefits were partially offset by an additional fourth quarter charge of $33.2 million related to the tax rate reduction from the Tax Cuts and Jobs Act. (4) Variations in income from continuing operations among quarters in 2017 and 2016 are primarily the result of (i) the effect of changes in foreign exchange rates between the Canadian dollar and the U.S. dollar on our equity in net income or loss of Telesat and (ii) the limitation on recording our portion of Telesat’s net income or loss due to the reduction of the carrying amount of our investment in Telesat to zero. |
Organization and Principal Bu36
Organization and Principal Business (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017segment | |
Organization And Principal Business [Line Items] | |
Number of operating segment | 1 |
Date of incorporation | Jun. 24, 2005 |
Date of emergence from bankruptcy proceedings | Nov. 21, 2005 |
Telesat Holdings Inc [Member] | |
Organization And Principal Business [Line Items] | |
Economic interest in affiliate | 62.70% |
Voting interest in affiliate | 32.70% |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basis of Presentation [Line Items] | |||
Cash and cash equivalents | $ 255,139 | $ 37,458 | |
Restricted cash | $ 0 | ||
Distributions received from affiliate | $ 242,735 | ||
U.S. federal corporate income tax rate | 35.00% | 35.00% | 35.00% |
Equity Method Investments [Member] | |||
Basis of Presentation [Line Items] | |||
Investments in affiliates, guarantee or other funding obligations | $ 0 | $ 0 | $ 0 |
Scenario, Plan [Member] | |||
Basis of Presentation [Line Items] | |||
U.S. federal corporate income tax rate | 21.00% | ||
Telesat Holdings Inc [Member] | |||
Basis of Presentation [Line Items] | |||
Distributions received from affiliate | $ 242,700 | ||
Sale of SSL, Nov. 02, 2012 [Member] | |||
Basis of Presentation [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 | ||
Adjustments for New Accounting Pronouncement [Member] | |||
Basis of Presentation [Line Items] | |||
Cumulative effect of change on equity or net assets | $ 4,700 | ||
Maximum [Member] | |||
Basis of Presentation [Line Items] | |||
Cash and cash equivalent maturity term | 90 days | ||
ViaSat Lawsuit, Sep. 2014 [Member] | Sale of SSL, Nov. 02, 2012 [Member] | |||
Basis of Presentation [Line Items] | |||
Settlement agreement, plaintiff's name | ViaSat, Inc. | ||
Settlement agreement, counterparty's name | SSL | ||
Accumulated Deficit [Member] | |||
Basis of Presentation [Line Items] | |||
Tax Cuts and Jobs Act, reclassification tax effect | $ 4,468 | ||
Accumulated Other Comprehensive Loss [Member] | |||
Basis of Presentation [Line Items] | |||
Tax Cuts and Jobs Act, reclassification tax effect | (4,468) | ||
Other Noncurrent Assets [Member] | |||
Basis of Presentation [Line Items] | |||
Restricted cash | $ 304 |
Basis of Presentation (Reconcil
Basis of Presentation (Reconciliation of Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 255,139 | $ 37,458 | ||
Restricted cash included in other assets | 0 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Total | 255,443 | $ 37,458 | $ 58,853 | $ 51,433 |
Other Noncurrent Assets [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash included in other assets | $ 304 |
Basis of Presentation (Assets a
Basis of Presentation (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Money Market Funds [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Cash equivalents | $ 251,742 | $ 35,514 |
Sale of SSL, Nov. 02, 2012 [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Indemnification - sale of SSL | 2,410 | 2,410 |
Globalstar do Brasil S.A. [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Indemnification - Globalstar do Brasil S.A. | $ 293 | $ 357 |
Basis of Presentation (Addition
Basis of Presentation (Additional Cash Flow Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2017 | [1],[2] | Sep. 30, 2017 | [1],[2] | Mar. 31, 2017 | [1],[2] | Dec. 31, 2016 | [1],[2] | Sep. 30, 2016 | [1],[2] | Jun. 30, 2016 | [1],[2] | Mar. 31, 2016 | [1],[2] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-cash operating items: | |||||||||||||||||
Equity in net (income) loss of affiliates | $ (33,261) | $ (43,372) | $ (139,714) | $ 12,721 | $ (6,948) | $ (43,357) | $ (46,494) | $ (216,347) | $ (84,078) | $ 104,792 | |||||||
Deferred taxes | 80,189 | 29,535 | (39,694) | ||||||||||||||
Depreciation and amortization | 38 | 60 | 41 | ||||||||||||||
Amortization of prior service credit and actuarial (gain) loss | 1,033 | 916 | 1,260 | ||||||||||||||
Net non-cash operating items - continuing operations | (135,087) | (53,567) | 66,399 | ||||||||||||||
Continuing Operations [Member] | |||||||||||||||||
Supplemental information: | |||||||||||||||||
Interest paid | 27 | 20 | 314 | ||||||||||||||
Tax (refunds) payments, net | 12,504 | 153 | (233) | ||||||||||||||
Discontinued Operations [Member] | |||||||||||||||||
Supplemental information: | |||||||||||||||||
Interest paid | $ 55 | $ 750 | $ 1,549 | ||||||||||||||
[1] | For the three months ended March 31, 2017, our share of equity in net income of Telesat was $35.9 million, including a $1.6 million elimination of affiliate transactions and related amortization. In the first quarter of 2017, we received a $242.7 million cash distribution from Telesat which exceeded our initial investment and our share of cumulative equity in comprehensive income of Telesat by $103.8 million. In the first quarter of 2017, we recognized equity in net income of affiliates of $139.7 million, including the excess cash distribution of $103.8 million. For the three months ended June 30, 2017, our share of equity in net income of Telesat was $64.8 million, including a $1.7 million elimination of affiliate transactions and related amortization. We did not recognize this equity income, and instead reduced by $64.8 million the excess equity income of $103.8 million recognized during the three months ended March 31, 2017. For the three months ended September 30, 2017, our share of equity in net income of Telesat was $82.4 million, including a $0.8 million elimination of affiliate transactions and related amortization. We reduced our share of equity in net income of Telesat of $82.4 million by the remaining excess equity income of $39.0 million, resulting in the recognition of equity in net income of affiliates of $43.4 million.Amounts include equity in net income of affiliates of $5.1 million for the quarter ended June 30, 2016 that should have been recognized in prior periods. Equity in net income of affiliates for the quarter ended March 31, 2016 does not include a loss of $2.1 million that was recognized in the quarter ended June 30, 2016. These adjustments, which related to our investment in Telesat, consisted primarily of foreign exchange gains and losses. The Company has not revised previously reported amounts based on its belief that the effect of such adjustments is not material to the quarterly financial statements taken as a whole. | ||||||||||||||||
[2] | The quarterly earnings per share information is computed separately for each period. Therefore, the sum of such quarterly per share amounts may differ from the total for the year. |
Accumulated Other Comprehensi41
Accumulated Other Comprehensive Income (Loss) (Components of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), beginning balance | $ (13,836) | ||
Net current-period other comprehensive income (loss) | (18,974) | $ 14,862 | $ 523 |
Accumulated other comprehensive income (loss), ending balance | (37,278) | (13,836) | |
Postretirement Benefits [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), beginning balance | (14,074) | (13,459) | (13,982) |
Other comprehensive income (loss) before reclassification | (1,365) | (1,209) | (265) |
Amounts reclassified from accumulated other comprehensive income (loss) | 671 | 594 | 788 |
Net current-period other comprehensive income (loss) | (694) | (615) | 523 |
Accumulated Other Comprehensive Income Tax Cuts and Jobs Act Reclassification to Retained Earnings Tax Effect | (1,686) | ||
Accumulated other comprehensive income (loss), ending balance | (16,454) | (14,074) | (13,459) |
Proportionate Share of Telesat Other Comprehensive Loss [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), beginning balance | 238 | (15,239) | (15,239) |
Other comprehensive income (loss) before reclassification | (18,280) | 15,477 | |
Net current-period other comprehensive income (loss) | (18,280) | 15,477 | |
Accumulated Other Comprehensive Income Tax Cuts and Jobs Act Reclassification to Retained Earnings Tax Effect | (2,782) | ||
Accumulated other comprehensive income (loss), ending balance | (20,824) | 238 | (15,239) |
Accumulated Other Comprehensive Loss [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), beginning balance | (13,836) | (28,698) | (29,221) |
Other comprehensive income (loss) before reclassification | (19,645) | 14,268 | (265) |
Amounts reclassified from accumulated other comprehensive income (loss) | 671 | 594 | 788 |
Net current-period other comprehensive income (loss) | (18,974) | 14,862 | 523 |
Accumulated Other Comprehensive Income Tax Cuts and Jobs Act Reclassification to Retained Earnings Tax Effect | (4,468) | ||
Accumulated other comprehensive income (loss), ending balance | $ (37,278) | $ (13,836) | $ (28,698) |
Accumulated Other Comprehensi42
Accumulated Other Comprehensive Income (Loss) (Components of Other Comprehensive Income and Related Tax Effects) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Accumulated Other Comprehensive Loss [Abstract] | |||||
Net actuarial gain (loss) and prior service credits, Before-Tax Amount | $ (2,101) | $ (1,865) | $ (424) | ||
Amortization of prior service credits and net actuarial loss, Before-Tax Amount | [1] | 1,033 | 916 | 1,260 | |
Postretirement benefits, Before-Tax Amount | (1,068) | (949) | 836 | ||
Proportionate share of Telesat Holdco other comprehensive income (loss), Before-Tax Amount | (28,132) | 23,872 | [2] | ||
Other comprehensive income (loss), Before-Tax Amount | (29,200) | 22,923 | 836 | ||
Net actuarial gain (loss) and prior service credits, Tax (Provision) Benefit | 736 | 656 | 159 | ||
Amortization of prior service credits and net actuarial loss, Tax (Provision) Benefit | (362) | (322) | (472) | ||
Post retirement benefits, Tax (Provision) Benefit | 374 | 334 | (313) | ||
Proportionate share of Telesat Holdco other comprehensive income (loss), Tax (Provision) Benefit | 9,852 | (8,395) | [2] | ||
Other comprehensive income, Tax (Provision) Benefit | 10,226 | (8,061) | (313) | ||
Net actuarial gain (loss) and prior service credits, Net-of-Tax Amount | (1,365) | (1,209) | (265) | ||
Amortization of prior service credits and net actuarial gain (loss), Net-of-Tax Amount | 671 | 594 | 788 | ||
Postretirement benefits, Net- of-Tax | (694) | (615) | 523 | ||
Proportionate share of Telesat Holdco other comprehensive income (loss), Net-of-Tax Amount | (18,280) | 15,477 | [2] | ||
Other comprehensive income (loss), Net-of-Tax Amount | $ (18,974) | 14,862 | $ 523 | ||
Equity method OCI previously suspended recovered | 20,800 | ||||
Equity method OCI previously suspended recovered, net of tax | $ 13,500 | ||||
[1] | Reclassifications are included in general and administrative expenses | ||||
[2] | Includes $20.8 million ($13.5 million, net of tax) share in the equity of Telesat's other comprehensive income that we could not record in 2015 (see Note 5) |
Other Current Assets (Schedule
Other Current Assets (Schedule of Other Current Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Current Assets [Abstract] | ||
Indemnification receivable from SSL for pre-closing taxes (see note 13) | $ 2,410 | $ 2,410 |
Due from affiliates | 217 | 225 |
Prepaid expenses | 198 | 192 |
Other | 274 | 111 |
Total other current assets | $ 3,099 | $ 2,938 |
Investments in Affiliates (Narr
Investments in Affiliates (Narrative) (Details) $ / shares in Units, $ in Thousands, $ in Millions | Feb. 01, 2017USD ($) | Nov. 17, 2016USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | [1],[2] | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | [1],[2] | Jun. 30, 2016USD ($) | [1],[2] | Mar. 31, 2016CAD ($)shares | Mar. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Mar. 31, 2009USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2009USD ($) | Dec. 31, 2008USD ($) | |||||
Investments in and Advances to Affiliates [Line Items] | |||||||||||||||||||||||||||
Investments in affiliates | $ 53,430 | $ 107,950 | $ 53,430 | $ 107,950 | |||||||||||||||||||||||
Equity in net income (loss) of affiliates | $ 33,261 | [1],[2] | $ 43,372 | $ 139,714 | [1],[2] | $ (12,721) | [1],[2] | $ 6,948 | $ 43,357 | $ 46,494 | [1],[2] | 216,347 | 84,078 | $ (104,792) | |||||||||||||
Other Comprehensive Income Proportionate Share Equity Method Investee Before Tax Portion Attributable To Parent | (28,132) | 23,872 | [3] | ||||||||||||||||||||||||
Equity method OCI previously suspended recovered | $ 20,800 | ||||||||||||||||||||||||||
Distributions received from affiliate | $ 242,735 | ||||||||||||||||||||||||||
Telesat Holdings Inc [Member] | |||||||||||||||||||||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||||||||||||||||||||
Economic interest in affiliate | 62.70% | 62.70% | 62.80% | 62.80% | 62.70% | 62.70% | |||||||||||||||||||||
Voting interest in affiliate | 32.70% | 32.70% | 32.70% | 32.70% | |||||||||||||||||||||||
Investments in affiliates | $ 53,430 | $ 107,950 | $ 53,430 | $ 107,950 | |||||||||||||||||||||||
Share appreciation rights exercised by Telesat employees | shares | 178,642 | 178,642 | |||||||||||||||||||||||||
Non-voting participating preferred stock issued to Telesat Employees | shares | 129,400 | 129,400 | |||||||||||||||||||||||||
Equity method investee, stock options buy back, shares | shares | 1,253,477 | 1,253,477 | |||||||||||||||||||||||||
Equity method investee, stock options buy back, amount | $ 24.7 | ||||||||||||||||||||||||||
Equity in net income (loss) of affiliates | 216,347 | 84,078 | (74,329) | ||||||||||||||||||||||||
Other Comprehensive Income Proportionate Share Equity Method Investee Before Tax Portion Attributable To Parent | (28,132) | ||||||||||||||||||||||||||
Equity Method Investment Unrecognized Loss In equity | $ 57,900 | 57,900 | |||||||||||||||||||||||||
Equity method losses previously suspended recovered | 57,900 | ||||||||||||||||||||||||||
Equity method investment unrecognized gain in other comprehensive income | 20,800 | ||||||||||||||||||||||||||
Equity method OCI previously suspended recovered | 20,800 | ||||||||||||||||||||||||||
Consulting fees payable in cash | $ 5,000 | ||||||||||||||||||||||||||
Distributions declared to shareholders, option holders and certain employees | 400,000 | ||||||||||||||||||||||||||
Distributions received from affiliate | $ 242,700 | ||||||||||||||||||||||||||
XTAR, LLC [Member] | |||||||||||||||||||||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||||||||||||||||||||
Equity in net income (loss) of affiliates | (30,463) | ||||||||||||||||||||||||||
Percentage of ownership interest | 56.00% | 56.00% | |||||||||||||||||||||||||
Equity method investment, impairment | $ 13,200 | $ 8,000 | $ 21,200 | ||||||||||||||||||||||||
Percentage of revenue declined in related party | 11.00% | ||||||||||||||||||||||||||
6% Senior Notes [Member] | |||||||||||||||||||||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||||||||||||||||||||
Senior notes issued and outstanding | $ 0 | $ 0 | |||||||||||||||||||||||||
Senior Notes 8.875% [Member] | Telesat Holdings Inc [Member] | |||||||||||||||||||||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||||||||||||||||||||
Interest on notes | 8.875% | ||||||||||||||||||||||||||
Indenture maturity date | Nov. 17, 2024 | ||||||||||||||||||||||||||
Senior notes issued and outstanding | $ 500,000 | ||||||||||||||||||||||||||
Equity Method Investment Term Loan [Member] | Telesat Holdings Inc [Member] | |||||||||||||||||||||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||||||||||||||||||||
Term loan borrowings | $ 2,430,000 | ||||||||||||||||||||||||||
Indenture maturity date | Nov. 17, 2023 | ||||||||||||||||||||||||||
Equity Method Investment Revolving Credit [Member] | Telesat Holdings Inc [Member] | |||||||||||||||||||||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||||||||||||||||||||
Revolving credit borrowings | $ 200,000 | ||||||||||||||||||||||||||
Indenture maturity date | Nov. 17, 2021 | ||||||||||||||||||||||||||
Equity Method Investment Senior Secured Credit Facility [Member] | Telesat Holdings Inc [Member] | |||||||||||||||||||||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||||||||||||||||||||
Term loan borrowings | $ 2,424,000 | ||||||||||||||||||||||||||
Debt instrument amendment date | Feb. 1, 2017 | ||||||||||||||||||||||||||
Minimum total leverage ratio to incurdebt and make payments | 4.50 | 4.55 | 4.55 | ||||||||||||||||||||||||
Spainsat Lease Agreement [Member] | XTAR, LLC [Member] | |||||||||||||||||||||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||||||||||||||||||||
Lease obligation | 26,000 | 26,000 | |||||||||||||||||||||||||
Maximum annual lease obligation | $ 28,000 | $ 28,000 | |||||||||||||||||||||||||
Lease obligation, reduction | 9,500 | 18,200 | |||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
Equity method investment, investee past due liability | $ 32,700 | $ 28,800 | $ 32,700 | 28,800 | |||||||||||||||||||||||
Spainsat Lease Agreement [Member] | XTAR, LLC [Member] | Scenario, Forecast [Member] | |||||||||||||||||||||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||||||||||||||||||||
Lease obligation, reduction | $ 10,000 | ||||||||||||||||||||||||||
Management [Member] | Telesat Holdings Inc [Member] | |||||||||||||||||||||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||||||||||||||||||||
Equity method investee, stock options buy back, amount | $ 18.7 | ||||||||||||||||||||||||||
Restatement Adjustment [Member] | Telesat Holdings Inc [Member] | |||||||||||||||||||||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||||||||||||||||||||
Equity in net income (loss) of affiliates | 3,000 | $ (3,500) | |||||||||||||||||||||||||
Net income (loss) | $ 1,900 | $ (2,200) | |||||||||||||||||||||||||
Earnings (loss) per share, basic and diluted | $ / shares | $ 0.06 | $ (0.07) | |||||||||||||||||||||||||
Other Comprehensive Income Proportionate Share Equity Method Investee Before Tax Portion Attributable To Parent | $ 5,300 | ||||||||||||||||||||||||||
[1] | For the three months ended March 31, 2017, our share of equity in net income of Telesat was $35.9 million, including a $1.6 million elimination of affiliate transactions and related amortization. In the first quarter of 2017, we received a $242.7 million cash distribution from Telesat which exceeded our initial investment and our share of cumulative equity in comprehensive income of Telesat by $103.8 million. In the first quarter of 2017, we recognized equity in net income of affiliates of $139.7 million, including the excess cash distribution of $103.8 million. For the three months ended June 30, 2017, our share of equity in net income of Telesat was $64.8 million, including a $1.7 million elimination of affiliate transactions and related amortization. We did not recognize this equity income, and instead reduced by $64.8 million the excess equity income of $103.8 million recognized during the three months ended March 31, 2017. For the three months ended September 30, 2017, our share of equity in net income of Telesat was $82.4 million, including a $0.8 million elimination of affiliate transactions and related amortization. We reduced our share of equity in net income of Telesat of $82.4 million by the remaining excess equity income of $39.0 million, resulting in the recognition of equity in net income of affiliates of $43.4 million.Amounts include equity in net income of affiliates of $5.1 million for the quarter ended June 30, 2016 that should have been recognized in prior periods. Equity in net income of affiliates for the quarter ended March 31, 2016 does not include a loss of $2.1 million that was recognized in the quarter ended June 30, 2016. These adjustments, which related to our investment in Telesat, consisted primarily of foreign exchange gains and losses. The Company has not revised previously reported amounts based on its belief that the effect of such adjustments is not material to the quarterly financial statements taken as a whole. | ||||||||||||||||||||||||||
[2] | The quarterly earnings per share information is computed separately for each period. Therefore, the sum of such quarterly per share amounts may differ from the total for the year. | ||||||||||||||||||||||||||
[3] | Includes $20.8 million ($13.5 million, net of tax) share in the equity of Telesat's other comprehensive income that we could not record in 2015 (see Note 5) |
Investments in Affiliates (Inve
Investments in Affiliates (Investments in Affiliates) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Equity Method Investments [Line Items] | ||
Investments in affiliates | $ 53,430 | $ 107,950 |
Telesat Holdings Inc [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investments in affiliates | $ 53,430 | $ 107,950 |
Investments in Affiliates (Equi
Investments in Affiliates (Equity in Net Income (Losses) of Affiliates) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2017 | [1],[2] | Sep. 30, 2017 | [1],[2] | Mar. 31, 2017 | [1],[2] | Dec. 31, 2016 | [1],[2] | Sep. 30, 2016 | [1],[2] | Jun. 30, 2016 | [1],[2] | Mar. 31, 2016 | [1],[2] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Equity in net income (loss) of affiliates | $ 33,261 | $ 43,372 | $ 139,714 | $ (12,721) | $ 6,948 | $ 43,357 | $ 46,494 | $ 216,347 | $ 84,078 | $ (104,792) | |||||||
Telesat Holdings Inc [Member] | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Equity in net income (loss) of affiliates | $ 216,347 | $ 84,078 | (74,329) | ||||||||||||||
XTAR, LLC [Member] | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||
Equity in net income (loss) of affiliates | $ (30,463) | ||||||||||||||||
[1] | For the three months ended March 31, 2017, our share of equity in net income of Telesat was $35.9 million, including a $1.6 million elimination of affiliate transactions and related amortization. In the first quarter of 2017, we received a $242.7 million cash distribution from Telesat which exceeded our initial investment and our share of cumulative equity in comprehensive income of Telesat by $103.8 million. In the first quarter of 2017, we recognized equity in net income of affiliates of $139.7 million, including the excess cash distribution of $103.8 million. For the three months ended June 30, 2017, our share of equity in net income of Telesat was $64.8 million, including a $1.7 million elimination of affiliate transactions and related amortization. We did not recognize this equity income, and instead reduced by $64.8 million the excess equity income of $103.8 million recognized during the three months ended March 31, 2017. For the three months ended September 30, 2017, our share of equity in net income of Telesat was $82.4 million, including a $0.8 million elimination of affiliate transactions and related amortization. We reduced our share of equity in net income of Telesat of $82.4 million by the remaining excess equity income of $39.0 million, resulting in the recognition of equity in net income of affiliates of $43.4 million.Amounts include equity in net income of affiliates of $5.1 million for the quarter ended June 30, 2016 that should have been recognized in prior periods. Equity in net income of affiliates for the quarter ended March 31, 2016 does not include a loss of $2.1 million that was recognized in the quarter ended June 30, 2016. These adjustments, which related to our investment in Telesat, consisted primarily of foreign exchange gains and losses. The Company has not revised previously reported amounts based on its belief that the effect of such adjustments is not material to the quarterly financial statements taken as a whole. | ||||||||||||||||
[2] | The quarterly earnings per share information is computed separately for each period. Therefore, the sum of such quarterly per share amounts may differ from the total for the year. |
Investments in Affiliates (Eq47
Investments in Affiliates (Equity Method Investment, Summarized Financial Data) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Telesat Holdings Inc [Member] | |||
Summary Financial Data: | |||
Revenues | $ 712,390 | $ 703,131 | $ 751,684 |
Operating expenses | (150,872) | (139,141) | (140,706) |
Depreciation, amortization and stock-based compensation | (194,203) | (195,781) | (190,985) |
Insurance proceeds | 4,739 | ||
Gain (loss) on disposition of long lived asset | (207) | (1,937) | (24) |
Operating income (loss) | 371,847 | 366,272 | 419,969 |
Interest expense | (151,528) | (145,288) | (138,783) |
Loss on refinancing | (12,246) | ||
Foreign exchange gain (loss) | 173,433 | 68,719 | (426,980) |
Gain (loss) on financial instruments | (3,516) | 974 | 7,810 |
Other income (expense) | 2,307 | 4,590 | 3,672 |
Income tax provision | (54,424) | (58,772) | (74,447) |
Net income (loss) | 338,119 | 224,249 | (208,759) |
Current assets | 445,104 | 678,361 | |
Total assets | 4,082,472 | 4,194,006 | |
Current liabilities | 126,100 | 154,173 | |
Long-term debt, including current portion | 2,829,911 | 2,877,950 | |
Total liabilities | 3,538,656 | 3,597,056 | |
Shareholders' equity | 543,816 | 596,950 | |
XTAR, LLC [Member] | |||
Summary Financial Data: | |||
Revenues | 16,775 | 18,550 | 25,852 |
Operating expenses | (15,838) | (24,123) | (31,933) |
Depreciation, amortization and stock-based compensation | (6,471) | (8,589) | (8,874) |
Operating income (loss) | (5,534) | (14,162) | (14,955) |
Net income (loss) | (11,646) | (18,296) | $ (18,722) |
Current assets | 5,670 | 6,202 | |
Total assets | 28,437 | 35,846 | |
Current liabilities | 2,554 | 1,773 | |
Total liabilities | 76,253 | 75,232 | |
Shareholders' equity | (47,816) | (39,386) | |
XTAR, LLC [Member] | Related Parties [Member] | |||
Summary Financial Data: | |||
Equity Method Investment, Summarized Financial Information, Noncurrent Liabilities | $ 73,699 | $ 73,459 |
Other Current Liabilities (Sche
Other Current Liabilities (Schedule of Other Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Due to Affiliate, Current | $ 9 | ||
Accrued professional fees, current | 1,117 | $ 665 | |
Pension and other post retirement liabilities | 69 | 108 | |
Income taxes payable | $ 53,000 | ||
Accrued liabilities | 84 | 198 | |
Other current liabilities, total | $ 1,279 | 3,772 | |
Indemnification Liability ViaSat Lawsuit Settlement [Member] | |||
Indemnification liabilities (see Note 14) | $ 2,801 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2017 | |
Income Tax Contingency [Line Items] | |||||
U.S. federal corporate income tax rate | 35.00% | 35.00% | 35.00% | ||
Tax Cuts and Jobs Act of 2017, reduction in deferred tax assets | $ 33,200 | ||||
Income taxes receivable, non-current | 1,550 | $ 1,550 | |||
Taxes Payable, Current | $ 53,000 | ||||
Tax Return Liability | 2,000 | 2,000 | |||
Increase in carryforward of unused FTCs | 104,900 | 104,900 | |||
Income taxes receivable | 11,105 | 11,105 | $ 545 | ||
Cumulative effect of new accounting principle in period of adoption | 4,697 | 4,697 | |||
Potential change in unrecognized tax benefits during next twelve months | (27,300) | (27,300) | |||
Liability for UTPs | 61,182 | 61,182 | 68,658 | ||
Unrecognized tax benefits, interest on income taxes accrued | 7,200 | 7,200 | |||
Unrecognized tax benefits that would reduce the income tax provision | 45,300 | 45,300 | |||
Valuation allowance | 124,036 | 124,036 | 3,647 | ||
Changes in valuation allowance | 120,400 | (4,600) | $ 300 | ||
U.S. Federal tax expense (benefit) | $ 13,783 | 1,718 | 1,089 | ||
Internal Revenue Service (IRS) [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Statute of limitations to expire during next twelve months | 2,012 | ||||
Operating loss carryforwards | 139,700 | $ 139,700 | |||
Operating loss carryforwards, limitations on use | $ 32,600 | ||||
Federal Income Taxes and State Income Taxes [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Net operating loss carryforwards, expiration period | 2022 to 2034 | ||||
New York [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforwards | 1,600 | $ 1,600 | |||
Research Credit [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Tax credit carryforward | 400 | 400 | |||
Foreign Tax Credit [Member] | |||||
Income Tax Contingency [Line Items] | |||||
U.S. Federal tax expense (benefit) | (37,200) | ||||
Other Tax Carryforward, AMT Tax Credits [Member] | State and Local Jurisdiction [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Tax credit carryforward | $ 1,300 | 1,300 | |||
Tax Rate Reduction [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Tax Cuts and Jobs Act of 2017, reduction in deferred tax assets | 33,200 | ||||
Continuing Operations [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Income taxes paid, net | $ 12,504 | $ 153 | $ (233) | ||
Scenario, Plan [Member] | |||||
Income Tax Contingency [Line Items] | |||||
U.S. federal corporate income tax rate | 21.00% |
Income Taxes (Summary of Income
Income Taxes (Summary of Income Tax Benefit (Provision)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | ||||
U.S. Federal | $ (13,783) | $ (1,718) | $ (1,089) | |
State and local | $ 16,900 | 21,114 | 2,981 | 7,106 |
Foreign | (250) | (235) | (235) | |
Total current | 7,081 | 1,028 | 5,782 | |
Deferred: | ||||
U.S. Federal | (80,136) | (26,337) | 35,721 | |
State and local | (53) | (3,198) | 3,973 | |
Total deferred | (80,189) | (29,535) | 39,694 | |
Income tax benefit (provision) | $ (73,108) | $ (28,507) | $ 45,476 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | |||
Decrease to unrecognized tax benefits | $ 1,062 | $ 2,477 | $ 4,921 |
Interest income (expense) | 429 | (2,011) | (103) |
Penalties | 5,985 | 387 | 1,393 |
Total | $ 7,476 | $ 853 | $ 6,211 |
Income Taxes (Summary of Additi
Income Taxes (Summary of Additional Income Tax Disclosures) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | |||
Tax benefit (provision) on (loss) income from discontinued operations | $ 3 | $ 200 | $ 450 |
Excess tax benefit from equity compensation recorded to paid-in-capital | (141) | 2,609 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | 4,697 | ||
Deferred tax (provision) benefit for adjustments in other comprehensive income (loss) (See Note 3) | $ 10,226 | $ (8,061) | $ (313) |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | |||
Tax benefit at U.S. Statutory Rate of 35% | $ 3,069 | $ 2,800 | $ 3,566 |
State and local income taxes, net of federal income tax | 15,413 | (4,588) | 7,821 |
Equity in net income of affiliates | (73,997) | (29,427) | 36,677 |
Provision for unrecognized tax benefits | (1,234) | (1,113) | (708) |
Nondeductible expenses | (1,235) | (586) | (1,411) |
Change in valuation allowance | (120,389) | 4,565 | (307) |
Income tax credits | 138,780 | ||
Foreign income taxes | (250) | (153) | (153) |
Effect of U.S. tax law changes | 33,248 | ||
Other, net | (17) | (5) | (9) |
Income tax benefit (provision) | $ (73,108) | $ (28,507) | $ 45,476 |
U.S. statutory rate | 35.00% | 35.00% | 35.00% |
Income Taxes (Unrecognized Ta54
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | |||
Balance at January 1 | $ 68,149 | $ 72,298 | $ 78,333 |
Increases related to prior year tax positions | 1,525 | 1,955 | |
Decreases as a result of statute expirations | (14,172) | (5,674) | (6,876) |
Decreases as a result of tax settlements | (1,114) | ||
Increases related to current year tax positions | 16,433 | ||
Balance at December 31 | $ 70,410 | $ 68,149 | $ 72,298 |
Income Taxes (Schedule of Net D
Income Taxes (Schedule of Net Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Income Taxes [Abstract] | ||
Net operating loss and tax credit carryforwards | $ 165,267 | $ 119,524 |
Compensation and benefits | 943 | 1,582 |
Indemnification liabilities | 216 | 1,346 |
Other, net | 104 | 219 |
Federal benefit of uncertain tax positions | 1,518 | 7,528 |
Pension costs | 3,458 | 5,984 |
Investments in and advances to affiliates | 2,546 | |
Total deferred tax assets before valuation allowance | 174,052 | 136,183 |
Less valuation allowance | (124,036) | (3,647) |
Deferred tax assets net of valuation allowance | 50,016 | 132,536 |
Investments in and advances to affiliates | 17,257 | |
Total deferred tax liabilities | 17,257 | |
Long-term deferred tax assets | 50,016 | 115,285 |
Long-term liabilities | (6) | |
Net deferred tax assets | $ 50,016 | $ 115,279 |
Long-Term Liabilities (Schedule
Long-Term Liabilities (Schedule of Long Term Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Long-Term Liabilities [Abstract] | ||
Indemnification liabilities (see Note 13) | $ 293 | $ 357 |
Deferred tax liability | 6 | |
Liabilities for uncertain tax positions | 61,182 | 68,658 |
Other | 238 | |
Long term liabilities | $ 61,475 | $ 69,259 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017USD ($)shares | |
Stock-Based Compensation [Abstract] | |
Unconverted restricted stock units | shares | 75,262 |
Total unrecognized compensation costs related to non-vested awards | $ | $ 0 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Telesat Holdings Inc [Member] | |
Percentage of economic interest as result of dilution upon exercise of stock options | 62.30% |
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 | 12 Months Ended | |||||||||||||||||
Dec. 31, 2017 | [1],[2],[3] | Sep. 30, 2017 | [1],[2],[3] | Jun. 30, 2017 | [1],[2],[3] | Mar. 31, 2017 | [1],[2],[3] | Dec. 31, 2016 | [1],[2],[3] | Sep. 30, 2016 | [1],[2],[3] | Jun. 30, 2016 | [1],[2],[3] | Mar. 31, 2016 | [1],[2],[3] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||||||||||
Income (loss) from continuing operations - basic | $ 40,745 | $ 24,537 | $ (2,177) | $ 71,364 | $ (12,082) | $ (3,821) | $ 32,654 | $ 30,819 | $ 134,469 | $ 47,570 | $ (69,504) | ||||||||
Less: Adjustment for dilutive effect of Telesat stock options | (1,194) | (1,096) | |||||||||||||||||
Income (loss) from continuing operations - diluted | $ 133,275 | $ 46,474 | |||||||||||||||||
[1] | During the fourth quarter of 2017, we recorded additional tax benefits of approximately $37.2 million after having completed our tax study to determine the allowable amount of FTC benefit related to the distribution received from Telesat earlier in 2017 and approximately $16.9 million from fourth quarter expiration of the statute of limitations for the assessment of additional tax with regard to several of our state UTPs. These tax benefits were partially offset by an additional fourth quarter charge of $33.2 million related to the tax rate reduction from the Tax Cuts and Jobs Act.(4) Variations in income from continuing operations among quarters in 2017 and 2016 are primarily the result of (i) the effect of changes in foreign exchange rates between the Canadian dollar and the U.S. dollar on our equity in net income or loss of Telesat and (ii) the limitation on recording our portion of Telesat's net income or loss due to the reduction of the carrying amount of our investment in Telesat to zero. | ||||||||||||||||||
[2] | The quarterly earnings per share information is computed separately for each period. Therefore, the sum of such quarterly per share amounts may differ from the total for the year. | ||||||||||||||||||
[3] | Variations in income from continuing operations among quarters in 2017 and 2016 are primarily the result of (i) the effect of changes in foreign exchange rates between the Canadian dollar and the U.S. dollar on our equity in net income or loss of Telesat and (ii) the limitation on recording our portion of Telesat's net income or loss due to the reduction of the carrying amount of our investment in Telesat to zero. |
Earnings Per Share (Schedule 60
Earnings Per Share (Schedule of Weighted Average Number of Shares for Calculating Diluted Earnings Per Share) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Common and Potential Common Shares Outstanding for Diluted Earnings per Share | |||
Weighted average common shares outstanding | 30,933 | 30,933 | 30,928 |
Common shares outstanding for diluted earnings per share | 31,008 | 31,008 | 30,928 |
Unvested Restricted Stock Units [Member] | |||
Common and Potential Common Shares Outstanding for Diluted Earnings per Share | |||
Potential common shares outstanding for diluted earnings per share | 75 | 75 |
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 in Thousands | 12 Months Ended |
Dec. 31, 2015shares | |
Earnings Per Share [Abstract] | |
Unconverted restricted stock units | 78 |
Pensions and Other Employee B62
Pensions and Other Employee Benefits Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Unfunded status at end of period | $ (18,900) | ||
Unfunded benefit obligations, discount rate | 3.50% | 4.00% | 4.25% |
Unfunded benefit obligations, decrease in discount rate | 0.50% | 0.50% | |
Change in unfunded benefit obligation as a result of decrease in half percentage point assumed discount rate | $ 3,800 | $ 3,800 | |
Accumulated pension benefit obligation | $ 53,000 | 48,500 | |
Expected long-term rate of return on plan assets | 7.25% | ||
Employee Savings (401K) Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions to employee savings (401K) plan, maximum | 6.00% | ||
Participant's base salary rate | 66.70% | ||
Employer contributions | $ 100 | 100 | $ 100 |
Liquid Return Seeking [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Allocation Variance Percentage | 3.00% | ||
Global Equities[Member] | Liquid Return Seeking [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Allocation Percentage | 75% | ||
Marketable Real Assets[Member] | Liquid Return Seeking [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Allocation Percentage | 15% | ||
Fixed Income Securities [Member] | Liquid Return Seeking [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Target Allocation Percentage | 10% | ||
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated actuarial loss to be amortized from accumulated other comprehensive income over next fiscal year | $ 1,100 | ||
Contribution to qualified pension plan | 2,322 | 2,161 | |
Estimated employer contribution next fiscal year | 2,300 | ||
Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution to qualified pension plan | $ 25 | $ 32 |
Pensions and Other Employee B63
Pensions and Other Employee Benefits Plans (Reconciliation of Changes in Plans' Benefit Obligations and Fair Value of Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of fair value of plan assets: | |||
Fair value of plan assets at beginning of period | $ 31,466 | ||
Fair value of plan assets at December 31, | 35,640 | $ 31,466 | |
Pension Benefits [Member] | |||
Reconciliation of benefit obligation: | |||
Obligation at beginning of period | 49,463 | 46,976 | |
Service cost | 702 | 668 | $ 511 |
Interest cost | 1,961 | 1,982 | 1,896 |
Participant contributions | 27 | 45 | |
Actuarial (gain) loss | 3,599 | 1,537 | |
Benefit payments | (1,776) | (1,745) | |
Obligation at December 31 | 53,976 | 49,463 | 46,976 |
Reconciliation of fair value of plan assets: | |||
Fair value of plan assets at beginning of period | 31,466 | 29,296 | |
Actual return on plan assets | 3,601 | 1,709 | |
Employer contributions | 2,322 | 2,161 | |
Participant contributions | 27 | 45 | |
Benefit payments | (1,776) | (1,745) | |
Fair value of plan assets at December 31, | 35,640 | 31,466 | 29,296 |
Funded status at end of period | (18,336) | (17,997) | |
Other Benefits [Member] | |||
Reconciliation of benefit obligation: | |||
Obligation at beginning of period | 544 | 559 | |
Service cost | 1 | 1 | 2 |
Interest cost | 21 | 22 | 38 |
Participant contributions | 17 | 20 | |
Actuarial (gain) loss | (22) | (6) | |
Benefit payments | (42) | (52) | |
Obligation at December 31 | 519 | 544 | $ 559 |
Reconciliation of fair value of plan assets: | |||
Employer contributions | 25 | 32 | |
Participant contributions | 17 | 20 | |
Benefit payments | (42) | (52) | |
Funded status at end of period | $ (519) | $ (544) |
Pensions and Other Employee B64
Pensions and Other Employee Benefits Plans (Pre-Tax Amounts Recognized in Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial loss | $ (18,941) | $ (17,816) |
Amendments-prior service (cost) credit | ||
Pre-tax amounts recognized in accumulated other comprehensive income (loss) | (18,941) | (17,816) |
Other Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actuarial loss | (48) | (80) |
Amendments-prior service (cost) credit | (22) | (47) |
Pre-tax amounts recognized in accumulated other comprehensive income (loss) | $ (70) | $ (127) |
Pensions and Other Employee B65
Pensions and Other Employee Benefits Plans (Amounts Recognized in Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Post Retirement Benefits, Before-Tax Amount | $ 1,068 | $ 949 | $ (836) |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial gain (loss) during the period | (2,123) | (1,875) | (425) |
Amortization of actuarial loss (gain) | 998 | 889 | 795 |
Post Retirement Benefits, Before-Tax Amount | (1,125) | (986) | 370 |
Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial gain (loss) during the period | 22 | 10 | 1 |
Amortization of actuarial loss (gain) | 10 | 5 | 26 |
Amortization of prior service cost (credit) | 25 | 22 | 11 |
Recognition due to curtailment and amount reclassified | 428 | ||
Post Retirement Benefits, Before-Tax Amount | $ 57 | $ 37 | $ 466 |
Pensions and Other Employee B66
Pensions and Other Employee Benefits Plans (Amounts Recognized in the Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Long-Term Liabilities | $ 18,336 | $ 17,997 |
Amounts recognized in the balance sheet | 18,336 | 17,997 |
Other Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current Liabilities | 69 | 108 |
Long-Term Liabilities | 450 | 436 |
Amounts recognized in the balance sheet | $ 519 | $ 544 |
Pensions and Other Employee B67
Pensions and Other Employee Benefits Plans (Components of Net Periodic Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 702 | $ 668 | $ 511 |
Interest cost | 1,961 | 1,982 | 1,896 |
Expected return on plan assets | (2,124) | (2,047) | (2,107) |
Amortization of net actuarial loss (gain) | 998 | 889 | 795 |
Net periodic cost | 1,537 | 1,492 | 1,095 |
Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 1 | 1 | 2 |
Interest cost | 21 | 22 | 38 |
Recognition due to curtailment | 428 | ||
Amortization of prior service cost (credit) | 25 | 22 | 11 |
Amortization of net actuarial loss (gain) | 10 | 5 | 26 |
Net periodic cost | $ 57 | $ 50 | $ 505 |
Pensions and Other Employee B68
Pensions and Other Employee Benefits Plans (Assumptions Used to Determine Net Periodic Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pensions and Other Employee Benefit Plans [Abstract] | |||
Discount rate | 4.00% | 4.25% | 4.00% |
Expected return on plan assets | 6.75% | 7.00% | 7.25% |
Rate of compensation increase | 4.25% | 4.25% | 4.25% |
Pensions and Other Employee B69
Pensions and Other Employee Benefits Plans (Assumptions Used to Determine Benefit Obligation) (Details) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Pensions and Other Employee Benefit Plans [Abstract] | |||
Discount rate | 3.50% | 4.00% | 4.25% |
Rate of compensation increase | 4.25% | 4.25% | 4.25% |
Pensions and Other Employee B70
Pensions and Other Employee Benefits Plans (Pension Plans' Actual and Targeted Asset Allocations) (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 100.00% | 100.00% |
Target Allocation | 100.00% | 100.00% |
Liquid Return Seeking [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 60.00% | |
Target Allocation | 56.50% | |
Liquid Return Seeking [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 45.00% | |
Liquid Return Seeking [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 65.00% | |
Alternative Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 9.00% | 9.00% |
Target Allocation | 14.50% | |
Alternative Investments [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 0.00% | |
Alternative Investments [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 20.00% | |
Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Allocation | 31.00% | |
Target Allocation | 29.00% | |
Fixed Income Securities [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 20.00% | |
Fixed Income Securities [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 40.00% |
Pensions and Other Employee B71
Pensions and Other Employee Benefits Plans (Fair Values of Pension Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | $ 35,640 | $ 31,466 | ||
Pension plans' actual assets allocation | 100.00% | 100.00% | ||
Assets Measured at NAV [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [1] | $ 32,414 | $ 28,531 | |
Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 3,226 | 2,935 | $ 2,789 | |
Level 3 [Member] | Equity Long/Short Fund [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 1,067 | 835 | 847 | |
Level 3 [Member] | Private Equity Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 83 | 129 | 174 | |
Level 3 [Member] | Distressed Opportunity Ltd. Partnership [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 504 | 448 | 313 | |
Level 3 [Member] | Multi-Strategy Limited Partnerships [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | $ 1,572 | 1,523 | $ 1,455 | |
Liquid Return Seeking [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension plans' actual assets allocation | 60.00% | |||
Liquid Return Seeking [Member] | Multi Asset Fund [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [2] | $ 21,447 | $ 19,142 | |
Pension plans' actual assets allocation | [2] | 60.00% | 61.00% | |
Liquid Return Seeking [Member] | Multi Asset Fund [Member] | Assets Measured at NAV [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [1],[2] | $ 21,447 | $ 19,142 | |
Fixed Income Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension plans' actual assets allocation | 31.00% | |||
Fixed Income Securities [Member] | Commingled Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [3] | $ 10,967 | $ 9,389 | |
Pension plans' actual assets allocation | [3] | 31.00% | 30.00% | |
Fixed Income Securities [Member] | Commingled Funds [Member] | Assets Measured at NAV [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [1],[3] | $ 10,967 | $ 9,389 | |
Alternative Investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | $ 3,226 | $ 2,935 | ||
Pension plans' actual assets allocation | 9.00% | 9.00% | ||
Alternative Investments [Member] | Equity Long/Short Fund [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [4] | $ 1,067 | $ 835 | |
Pension plans' actual assets allocation | [4] | 3.00% | 3.00% | |
Alternative Investments [Member] | Private Equity Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [5] | $ 83 | $ 129 | |
Pension plans' actual assets allocation | [5] | 0.00% | 0.00% | |
Alternative Investments [Member] | Distressed Opportunity Ltd. Partnership [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [6] | $ 504 | $ 448 | |
Pension plans' actual assets allocation | [6] | 2.00% | 1.00% | |
Alternative Investments [Member] | Multi-Strategy Limited Partnerships [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [7] | $ 1,572 | $ 1,523 | |
Pension plans' actual assets allocation | [7] | 4.00% | 5.00% | |
Alternative Investments [Member] | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | $ 3,226 | $ 2,935 | ||
Alternative Investments [Member] | Level 3 [Member] | Equity Long/Short Fund [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [4] | 1,067 | 835 | |
Alternative Investments [Member] | Level 3 [Member] | Private Equity Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [5] | 83 | 129 | |
Alternative Investments [Member] | Level 3 [Member] | Distressed Opportunity Ltd. Partnership [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [6] | 504 | 448 | |
Alternative Investments [Member] | Level 3 [Member] | Multi-Strategy Limited Partnerships [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | [7] | $ 1,572 | $ 1,523 | |
[1] | Assets measured using the net asset value ("NAV") practical expedient have not been classified in the fair value hierarchy. The NAV practical expedient is based on the fair value of the underlying assets of the common/collective trust ("CCT") minus its liabilities, and then divided by the number of units outstanding. The NAV practical expedient of a CCT is calculated based on a compilation of primarily observable market information. | |||
[2] | A single fund that invests in global equities, marketable real assets and fixed income securities. The fund has no limitation on redemptions. | |||
[3] | Investments in bonds representing many sectors of the broad bond market with both short-term and intermediate-term maturities. The fund has no limitation on redemptions. | |||
[4] | Investments primarily in long and short positions in equity securities of U.S. and non-U.S. companies. The fund has semi-annual tender offer redemption periods on June 30 and December 31 and is reported on a one month lag. | |||
[5] | Fund invests in portfolios of secondary interest in established venture capital, buyout, mezzanine and special situation funds on a global basis. Fund is valued on a quarterly lag with adjustment for subsequent cash activity. The fund terminates on June 26, 2019, subject to extension for up to three one-year periods. Earlier redemptions are not permitted. | |||
[6] | Investments mainly in discounted debt securities, bank loans, trade claims and other debt and equity securities of financially troubled companies. This partnership has semi-annual withdrawal rights on June 30 and December 31. This fund is reported on a one month lag. | |||
[7] | Investments mainly in partnerships that have multi-strategy investment programs and do not rely on a single investment model. As of December 31, 2017 and 2016, investments include a partnership that has monthly liquidation rights with notice of 33 days. |
Pensions and Other Employee B72
Pensions and Other Employee Benefits Plans (Changes in Fair Value of Pension Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of plan assets at beginning of period | $ 31,466 | |
Fair value of plan assets at December 31, | 35,640 | $ 31,466 |
Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of plan assets at beginning of period | 2,935 | 2,789 |
Fair value of plan assets at December 31, | 3,226 | 2,935 |
Private Equity Funds [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of plan assets at beginning of period | 129 | 174 |
Fair value of plan assets at December 31, | 83 | 129 |
Equity Long/Short Fund [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of plan assets at beginning of period | 835 | 847 |
Fair value of plan assets at December 31, | 1,067 | 835 |
Distressed Opportunity Ltd. Partnership [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of plan assets at beginning of period | 448 | 313 |
Fair value of plan assets at December 31, | 504 | 448 |
Multi-Strategy Limited Partnerships [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of plan assets at beginning of period | 1,523 | 1,455 |
Fair value of plan assets at December 31, | 1,572 | 1,523 |
Unrealized Gain/(Loss) [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Realized and unrealized gain/(loss) | 344 | 189 |
Unrealized Gain/(Loss) [Member] | Private Equity Funds [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Realized and unrealized gain/(loss) | 7 | (2) |
Unrealized Gain/(Loss) [Member] | Equity Long/Short Fund [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Realized and unrealized gain/(loss) | 232 | (12) |
Unrealized Gain/(Loss) [Member] | Distressed Opportunity Ltd. Partnership [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Realized and unrealized gain/(loss) | 56 | 135 |
Unrealized Gain/(Loss) [Member] | Multi-Strategy Limited Partnerships [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Realized and unrealized gain/(loss) | 49 | 68 |
Sales [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases and sales | (53) | (43) |
Sales [Member] | Private Equity Funds [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases and sales | (53) | (43) |
Sales [Member] | Equity Long/Short Fund [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases and sales | ||
Sales [Member] | Distressed Opportunity Ltd. Partnership [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases and sales | ||
Sales [Member] | Multi-Strategy Limited Partnerships [Member] | Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Purchases and sales |
Pensions and Other Employee B73
Pensions and Other Employee Benefits Plans (Benefit Payments Expected to be Paid) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 1,984 |
2,019 | 1,974 |
2,020 | 2,138 |
2,021 | 2,263 |
2,022 | 2,381 |
2023 to 2027 | 14,044 |
Gross Benefit Payments [Member] | Other Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 70 |
2,019 | 61 |
2,020 | 55 |
2,021 | 48 |
2,022 | 43 |
2023 to 2027 | $ 147 |
Commitments and Contingencies74
Commitments and Contingencies (Narrative) (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2017USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2014USD ($) | |
Globalstar do Brasil S.A. [Member] | |||||
Contingencies And Commitments [Line Items] | |||||
Loss contingency accrual | $ 0.3 | $ 0.4 | |||
Pre Closing Taxes Indemnification [Member] | Sale of SSL, Nov. 02, 2012 [Member] | |||||
Contingencies And Commitments [Line Items] | |||||
Indemnification refund receivable due to reversal of estimated liability | $ 2.4 | 2.4 | |||
ViaSat Lawsuit, Sep. 2014 [Member] | |||||
Contingencies And Commitments [Line Items] | |||||
Lawsuit settlement amount of each installment, joint & several liability | $ 6.9 | ||||
ViaSat Lawsuit, Sep. 2014 [Member] | Sale of SSL, Nov. 02, 2012 [Member] | |||||
Contingencies And Commitments [Line Items] | |||||
Settlement agreement date | September 2,014 | ||||
Settlement agreement, plaintiff's name | ViaSat, Inc. | ||||
Settlement agreement, counterparty's name | SSL | ||||
Lawsuit settlement amount, joint & several liability | 100 | ||||
Lawsuit settlement initial payment, joint & several liability | 40 | ||||
Lawsuit settlement future payments, joint & several liability | $ 60 | ||||
Lawsuit settlement installment number, joint and several liability | 10 | ||||
Lawsuit settlement installment frequency, joint & several liability | quarterly | ||||
Lawsuit settlement installment start date, joint & several liability | 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 | ||||
Payments for legal settlements, cumulative | $ 46.1 | ||||
Payments for legal settlements | $ 2.8 | ||||
Lawsuit settlement obligation carrying value | 0 | $ 2.8 | |||
Russian Joint Venture [Member] | |||||
Contingencies And Commitments [Line Items] | |||||
Equity method investment maximum expected net realization sale of interest | $ 1 |
Commitments and Contingencies75
Commitments and Contingencies (Operating Leases Expense Net of Sublease Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |||
Operating leases, rent expense | $ 646 | $ 641 | $ 679 |
Commitments and Contingencies76
Commitments and Contingencies (Schedule of Future Minimum Payments) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Operating leases, future minimum payment due | |
2,018 | $ 637 |
2,019 | $ 318 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) | Apr. 11, 2011 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ||||||
Amounts due under the transaction | $ 217,000 | $ 225,000 | ||||
Distributions received from affiliate | $ 242,735,000 | |||||
Telesat Holdings Inc [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Economic interest in affiliate | 62.70% | |||||
Common stock, percentage acquired by an unaffiliated third party | 90.00% | |||||
Duration for shares to be paid, days | 10 days | |||||
Distributions received from affiliate | $ 242,700,000 | |||||
Xtar [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of ownership interest | 56.00% | |||||
MHR Funds [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of outstanding voting common stock | 39.90% | 39.90% | ||||
Percentage of combined ownership of voting and non-voting common stock | 58.40% | 58.40% | ||||
Transaction, Consulting Agreement [Member] | Telesat Holdings Inc [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction, date | Oct. 31, 2007 | |||||
Consulting agreement term | seven-years with an automatic renewal for an additional seven-year term | |||||
Transaction income during the period | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | |||
Transaction payments received during the period | 4,800,000 | $ 4,800,000 | 4,800,000 | |||
Transaction, Consulting Agreement [Member] | Director [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction, date | Dec. 14, 2012 | |||||
Transaction income during the period | 54,000 | $ 63,000 | 63,000 | |||
Expenses on transactions with related party | 1,440,000 | 1,440,000 | 1,440,000 | |||
Transaction, Supplemental Capacity Revenue Share [Member] | Viasat and Telesat [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Transaction term | 4 years | |||||
Transaction income during the period | 800,000 | |||||
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] | ||||||
Transaction payments received during the period | 0 | 0 | ||||
Amounts due under the transaction | 6,800,000 | 6,800,000 | ||||
Allowance for doubtful accounts receivable | 6,600,000 | 6,600,000 | ||||
Management fee charged as a percentage of revenue | 3.70% | |||||
Annual Fee [Member] | Transaction, Consulting Agreement [Member] | Telesat Holdings Inc [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Transaction fee | 5,000,000 | |||||
Annual Fee [Member] | Transaction Participation In Welfare Plans Administrative Fee [Member] | Telesat Holdings Inc [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Transaction fee | 100,000 | $ 100,000 | $ 100,000 | |||
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 | $ 1,000,000 |
Selected Quarterly Financial 78
Selected Quarterly Financial Information (Schedule of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | [1] | Sep. 30, 2016 | [1] | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||||
Operating loss | $ (1,935) | [1] | $ (2,015) | [1] | $ (1,922) | [1] | $ (2,063) | [1] | $ (1,826) | $ (1,709) | $ (1,674) | [1] | $ (1,517) | [1] | $ (7,935) | $ (6,726) | $ (6,530) | ||
Loss from continuing operations before income taxes and equity in net income (loss) of affiliates | (1,644) | [1] | (2,283) | [1] | (2,557) | [1] | (2,286) | [1] | (1,920) | (1,858) | (2,223) | [1] | (2,000) | [1] | (8,770) | (8,001) | (10,188) | ||
Equity in net income (loss) of affiliates | 33,261 | [1],[2] | 43,372 | [1],[2] | 139,714 | [1],[2] | (12,721) | [2] | 6,948 | [2] | 43,357 | [1],[2] | 46,494 | [1],[2] | 216,347 | 84,078 | (104,792) | ||
Income (loss) from continuing operations | 40,745 | [1],[3],[4] | 24,537 | [1],[3],[4] | (2,177) | [1],[3],[4] | 71,364 | [1],[3],[4] | (12,082) | [3],[4] | (3,821) | [3],[4] | 32,654 | [1],[3],[4] | 30,819 | [1],[3],[4] | 134,469 | 47,570 | (69,504) |
Loss from discontinued operations, net of tax provision | (5) | [1] | (64) | (71) | (102) | [1] | (133) | [1] | (5) | (370) | (778) | ||||||||
Net income (loss) | $ 40,745 | [1] | $ 24,537 | [1] | $ (2,177) | [1] | $ 71,359 | [1] | $ (12,146) | $ (3,892) | $ 32,552 | [1] | $ 30,686 | [1] | $ 134,464 | $ 47,200 | $ (70,282) | ||
Basic income (loss) per share from continuing operations | $ 1.32 | [1] | $ 0.79 | [1] | $ (0.07) | [1] | $ 2.31 | [1] | $ (0.39) | $ (0.12) | $ 1.06 | [1] | $ 1 | [1] | $ 4.35 | $ 1.54 | $ (2.25) | ||
Basic income (loss) per share from discontinued operations, net of tax | (0.01) | (0.03) | |||||||||||||||||
Basic income (loss) per share | 1.32 | [1] | 0.79 | [1] | (0.07) | [1] | 2.31 | [1] | (0.39) | (0.12) | 1.06 | [1] | 1 | [1] | 4.35 | 1.53 | (2.28) | ||
Diluted income (loss) per share from continuing operations | 1.31 | [1] | 0.77 | [1] | (0.07) | [1] | 2.30 | [1] | (0.39) | (0.12) | 1.03 | [1] | 0.95 | [1] | 4.30 | 1.50 | (2.25) | ||
Diluted income (loss) per share from discontinued operations, net of tax | (0.01) | (0.03) | |||||||||||||||||
Diluted income (loss) per share | $ 1.31 | [1] | $ 0.77 | [1] | $ (0.07) | [1] | $ 2.30 | [1] | $ (0.39) | $ (0.12) | $ 1.03 | [1] | $ 0.95 | [1] | $ 4.30 | $ 1.49 | $ (2.28) | ||
Distributions received from affiliate | $ 242,735 | ||||||||||||||||||
Error corrections and prior period adjustments | $ 5,100 | $ (2,100) | |||||||||||||||||
U.S. Federal tax expense (benefit) | 13,783 | $ 1,718 | $ 1,089 | ||||||||||||||||
Additional tax expense (benefit), state UTPs | $ (16,900) | (21,114) | (2,981) | (7,106) | |||||||||||||||
Tax Cuts and Jobs Act of 2017, reduction in deferred tax assets | 33,200 | ||||||||||||||||||
Telesat Holdings Inc [Member] | |||||||||||||||||||
Equity in net income (loss) of affiliates | $ 216,347 | $ 84,078 | $ (74,329) | ||||||||||||||||
Equity method investment, share of equity in net income (loss) of investee | $ 82,400 | $ 64,800 | $ 35,900 | ||||||||||||||||
Elimination of affiliate transactions and related amortization | 800 | 1,700 | 1,600 | ||||||||||||||||
Excess cash distribution by an equity method investee recognized as equity income | 103,800 | ||||||||||||||||||
Equity method investment, excess cash distribution recoverable from future equity in investee earnings | 103,800 | ||||||||||||||||||
Equity method investment, excess equity income previously recognized | $ 39,000 | $ 64,800 | |||||||||||||||||
Distributions received from affiliate | $ 242,700 | ||||||||||||||||||
Foreign Tax Credit [Member] | |||||||||||||||||||
U.S. Federal tax expense (benefit) | $ (37,200) | ||||||||||||||||||
[1] | The quarterly earnings per share information is computed separately for each period. Therefore, the sum of such quarterly per share amounts may differ from the total for the year. | ||||||||||||||||||
[2] | For the three months ended March 31, 2017, our share of equity in net income of Telesat was $35.9 million, including a $1.6 million elimination of affiliate transactions and related amortization. In the first quarter of 2017, we received a $242.7 million cash distribution from Telesat which exceeded our initial investment and our share of cumulative equity in comprehensive income of Telesat by $103.8 million. In the first quarter of 2017, we recognized equity in net income of affiliates of $139.7 million, including the excess cash distribution of $103.8 million. For the three months ended June 30, 2017, our share of equity in net income of Telesat was $64.8 million, including a $1.7 million elimination of affiliate transactions and related amortization. We did not recognize this equity income, and instead reduced by $64.8 million the excess equity income of $103.8 million recognized during the three months ended March 31, 2017. For the three months ended September 30, 2017, our share of equity in net income of Telesat was $82.4 million, including a $0.8 million elimination of affiliate transactions and related amortization. We reduced our share of equity in net income of Telesat of $82.4 million by the remaining excess equity income of $39.0 million, resulting in the recognition of equity in net income of affiliates of $43.4 million.Amounts include equity in net income of affiliates of $5.1 million for the quarter ended June 30, 2016 that should have been recognized in prior periods. Equity in net income of affiliates for the quarter ended March 31, 2016 does not include a loss of $2.1 million that was recognized in the quarter ended June 30, 2016. These adjustments, which related to our investment in Telesat, consisted primarily of foreign exchange gains and losses. The Company has not revised previously reported amounts based on its belief that the effect of such adjustments is not material to the quarterly financial statements taken as a whole. | ||||||||||||||||||
[3] | During the fourth quarter of 2017, we recorded additional tax benefits of approximately $37.2 million after having completed our tax study to determine the allowable amount of FTC benefit related to the distribution received from Telesat earlier in 2017 and approximately $16.9 million from fourth quarter expiration of the statute of limitations for the assessment of additional tax with regard to several of our state UTPs. These tax benefits were partially offset by an additional fourth quarter charge of $33.2 million related to the tax rate reduction from the Tax Cuts and Jobs Act.(4) Variations in income from continuing operations among quarters in 2017 and 2016 are primarily the result of (i) the effect of changes in foreign exchange rates between the Canadian dollar and the U.S. dollar on our equity in net income or loss of Telesat and (ii) the limitation on recording our portion of Telesat's net income or loss due to the reduction of the carrying amount of our investment in Telesat to zero. | ||||||||||||||||||
[4] | Variations in income from continuing operations among quarters in 2017 and 2016 are primarily the result of (i) the effect of changes in foreign exchange rates between the Canadian dollar and the U.S. dollar on our equity in net income or loss of Telesat and (ii) the limitation on recording our portion of Telesat's net income or loss due to the reduction of the carrying amount of our investment in Telesat to zero. |
Valuation and Qualifying Acco79
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Allowance for Affiliate Receivables [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 6,692 | $ 6,692 | $ 6,692 | |
Charged to Costs and Expenses | ||||
Charged to Other Accounts | [1] | |||
Balance at End of Period | 6,692 | 6,692 | 6,692 | |
Deferred Tax Valuation Allowance [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 3,647 | 8,212 | 7,905 | |
Charged to Costs and Expenses | 120,389 | (4,565) | 307 | |
Charged to Other Accounts | [1] | |||
Balance at End of Period | $ 124,036 | $ 3,647 | $ 8,212 | |
[1] | Changes in the deferred tax valuation allowance which have been charged to other accounts have been recorded in other comprehensive loss. |