Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 28, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | KVH INDUSTRIES INC \DE\ | |
Entity Central Index Key | 0001007587 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth | false | |
Entity Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 18,096,586 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 9,243 | $ 15,212 |
Marketable securities | 46,325 | 25 |
Accounts receivable, net of allowance for doubtful accounts of $2,090 and $2,390 as of September 30, 2019 and December 31, 2018, respectively | 29,979 | 28,592 |
Inventories | 25,317 | 22,942 |
Prepaid expenses and other current assets | 3,121 | 2,532 |
Current contract assets | 1,407 | 3,566 |
Current assets held for sale | 0 | 4,871 |
Total current assets | 115,392 | 77,740 |
Property and equipment, net | 52,661 | 50,633 |
Intangible assets, net | 4,840 | 5,661 |
Goodwill | 14,667 | 15,031 |
Right of use assets | 6,951 | 0 |
Other non-current assets | 6,091 | 5,484 |
Non-current contract assets | 3,449 | 6,971 |
Non-current deferred income tax asset | 131 | 226 |
Non-current assets held for sale | 0 | 25,906 |
Total assets | 204,182 | 187,652 |
Current liabilities: | ||
Accounts payable | 14,502 | 16,735 |
Accrued compensation and employee-related expenses | 5,391 | 4,947 |
Accrued other | 9,501 | 9,602 |
Accrued product warranty costs | 2,288 | 1,916 |
Current portion of long-term debt | 0 | 9,928 |
Contract liabilities | 5,701 | 7,647 |
Current operating lease liability | 3,584 | 0 |
Liability for uncertain tax positions | 686 | 631 |
Current liabilities held for sale | 0 | 4,604 |
Total current liabilities | 41,653 | 56,010 |
Other long-term liabilities | 1,445 | 1,920 |
Long-term operating lease liability | 3,388 | 0 |
Long-term contract liabilities | 5,194 | 9,070 |
Long-term debt, excluding current portion | 0 | 19,437 |
Non-current deferred income tax liability | 835 | 887 |
Non-current liabilities held for sale | 0 | 813 |
Total liabilities | 52,515 | 88,137 |
Stockholders’ equity: | ||
Preferred stock, $0.01 par value. Authorized 1,000,000 shares; none issued | 0 | 0 |
Common stock, $0.01 par value. Authorized 30,000,000 shares; 19,381,008 and 19,026,393 shares issued at September 30, 2019 and December 31, 2018, respectively; and 18,098,586 and 17,743,971 shares outstanding at September 30, 2019 and December 31, 2018, respectively | 194 | 190 |
Additional paid-in capital | 143,214 | 139,617 |
Retained earnings (accumulated deficit) | 23,021 | (15,397) |
Accumulated other comprehensive loss | (4,598) | (14,731) |
Stockholders equity before treasury stock adjustment | 161,831 | 109,679 |
Less: treasury stock at cost, common stock, 1,282,422 shares as of September 30, 2019 and December 31, 2018 | (10,164) | (10,164) |
Total stockholders’ equity | 151,667 | 99,515 |
Total liabilities and stockholders’ equity | $ 204,182 | $ 187,652 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2,090 | $ 2,390 |
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 19,381,008 | 19,026,393 |
Common stock, shares outstanding (in shares) | 18,098,586 | 17,743,971 |
Treasury stock, shares outstanding (in shares) | 1,282,422 | 1,282,422 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Sales: | ||||
Net sales | $ 39,311 | $ 39,312 | $ 115,417 | $ 113,349 |
Costs and expenses: | ||||
Research and development | 4,327 | 3,789 | 11,993 | 11,288 |
Sales, marketing and support | 7,717 | 7,346 | 24,700 | 22,532 |
General and administrative | 6,273 | 6,134 | 18,958 | 18,280 |
Total costs and expenses | 44,169 | 41,169 | 133,188 | 121,618 |
Loss from operations | (4,858) | (1,857) | (17,771) | (8,269) |
Interest income | 451 | 158 | 1,626 | 451 |
Interest expense | 73 | 446 | 1,016 | 1,282 |
Other income, net | 680 | 222 | 922 | 459 |
Loss from continuing operations before income tax (benefit) expense | (3,800) | (1,923) | (16,239) | (8,641) |
Income tax (benefit) expense from continuing operations | (492) | 8 | (3,140) | 138 |
Net loss from continuing operations | (3,308) | (1,931) | (13,099) | (8,779) |
(Loss) income from discontinued operations, net of tax | (1,036) | 757 | 49,837 | 2,369 |
Net (loss) income | $ (4,344) | $ (1,174) | $ 36,738 | $ (6,410) |
Net loss from continuing operations per common share | ||||
Basic and diluted (in USD per share) | $ (0.19) | $ (0.11) | $ (0.75) | $ (0.52) |
Net (loss) income from discontinued operations per common share | ||||
Basic and diluted (in USD per share) | (0.06) | 0.04 | 2.86 | 0.14 |
Net (loss) income per common share | ||||
Basic and diluted (in USD per share) | $ (0.25) | $ (0.07) | $ 2.11 | $ (0.38) |
Weighted average number of common shares outstanding: | ||||
Basic and diluted (in shares) | 17,521 | 17,188 | 17,429 | 17,025 |
Product | ||||
Sales: | ||||
Net sales | $ 14,808 | $ 16,367 | $ 43,212 | $ 46,521 |
Costs and expenses: | ||||
Costs of sales | 10,823 | 9,767 | 31,756 | 28,784 |
Service | ||||
Sales: | ||||
Net sales | 24,503 | 22,945 | 72,205 | 66,828 |
Costs and expenses: | ||||
Costs of sales | $ 15,029 | $ 14,133 | $ 45,781 | $ 40,734 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net (loss) income | $ (4,344) | $ (1,174) | $ 36,738 | $ (6,410) | |
Other comprehensive (loss) income, net of tax: | |||||
Unrealized gain on available-for-sale securities | 0 | 0 | 0 | 1 | |
Foreign currency translation adjustment | (1,109) | (763) | 10,122 | (2,185) | |
Unrealized gain on derivative instruments, net | 0 | 12 | 11 | 49 | |
Other comprehensive income (loss), net of tax | [1] | (1,109) | (751) | 10,133 | (2,135) |
Total comprehensive (loss) income | $ (5,453) | $ (1,925) | $ 46,871 | $ (8,545) | |
[1] | Tax impact was nominal for all periods. |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Treasury Stock | |
Beginning balance (in shares) at Dec. 31, 2017 | 18,788,000 | ||||||
Beginning balance at Dec. 31, 2017 | $ 105,665 | $ 188 | $ 134,361 | $ (4,417) | $ (11,317) | $ (13,150) | |
Beginning balance, treasury stock (in shares) at Dec. 31, 2017 | (1,659,000) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (6,410) | (6,410) | |||||
Other comprehensive income (loss) | (2,135) | [1] | (2,135) | ||||
Stock-based compensation | 2,452 | 2,452 | |||||
Issuance of common stock under employee stock purchase plan (in shares) | 17,000 | ||||||
Issuance of common stock under employee stock purchase plan | 167 | 167 | |||||
Sale of treasury stock (in shares) | 377,000 | ||||||
Sale of treasury stock | 4,464 | 1,478 | $ 2,986 | ||||
Exercise of stock options and issuance of restricted stock awards, net of forfeitures (in shares) | 217,000 | ||||||
Exercise of stock options and issuance of restricted stock awards, net of forfeitures | 275 | $ 2 | 273 | ||||
Ending balance (in shares) at Sep. 30, 2018 | 19,022,000 | ||||||
Ending balance at Sep. 30, 2018 | 101,730 | $ 190 | 138,731 | (13,575) | (13,452) | $ (10,164) | |
Ending balance, treasury stock (in shares) at Sep. 30, 2018 | (1,282,000) | ||||||
Beginning balance (in shares) at Jun. 30, 2018 | 18,937,000 | ||||||
Beginning balance at Jun. 30, 2018 | 102,431 | $ 189 | 137,508 | (12,401) | (12,701) | $ (10,164) | |
Beginning balance, treasury stock (in shares) at Jun. 30, 2018 | (1,282,000) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (1,174) | (1,174) | |||||
Other comprehensive income (loss) | (751) | [1] | (751) | ||||
Stock-based compensation | 860 | 860 | |||||
Issuance of common stock under employee stock purchase plan (in shares) | 17,000 | ||||||
Issuance of common stock under employee stock purchase plan | 167 | 167 | |||||
Exercise of stock options and issuance of restricted stock awards, net of forfeitures (in shares) | 68,000 | ||||||
Exercise of stock options and issuance of restricted stock awards, net of forfeitures | 197 | $ 1 | 196 | ||||
Ending balance (in shares) at Sep. 30, 2018 | 19,022,000 | ||||||
Ending balance at Sep. 30, 2018 | $ 101,730 | $ 190 | 138,731 | (13,575) | (13,452) | $ (10,164) | |
Ending balance, treasury stock (in shares) at Sep. 30, 2018 | (1,282,000) | ||||||
Beginning balance (in shares) at Dec. 31, 2018 | 17,743,971 | 19,026,000 | |||||
Beginning balance at Dec. 31, 2018 | $ 99,515 | $ 190 | 139,617 | (15,397) | (14,731) | $ (10,164) | |
Beginning balance, treasury stock (in shares) at Dec. 31, 2018 | (1,282,422) | (1,282,000) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | $ 36,738 | 36,738 | |||||
Other comprehensive income (loss) | 10,133 | [1] | 10,133 | ||||
ASC 606 correction | Implementation of ASC 606 | 1,680 | 1,680 | |||||
Stock-based compensation | 3,019 | 3,019 | |||||
Issuance of common stock under employee stock purchase plan (in shares) | 45,000 | ||||||
Issuance of common stock under employee stock purchase plan | 414 | 414 | |||||
Exercise of stock options and issuance of restricted stock awards, net of forfeitures (in shares) | 310,000 | ||||||
Exercise of stock options and issuance of restricted stock awards, net of forfeitures | $ 168 | $ 4 | 164 | ||||
Ending balance (in shares) at Sep. 30, 2019 | 18,098,586 | 19,381,000 | |||||
Ending balance at Sep. 30, 2019 | $ 151,667 | $ 194 | 143,214 | 23,021 | (4,598) | $ (10,164) | |
Ending balance, treasury stock (in shares) at Sep. 30, 2019 | (1,282,422) | (1,282,000) | |||||
Beginning balance (in shares) at Jun. 30, 2019 | 19,320,000 | ||||||
Beginning balance at Jun. 30, 2019 | $ 155,761 | $ 193 | 141,856 | 27,365 | (3,489) | $ (10,164) | |
Beginning balance, treasury stock (in shares) at Jun. 30, 2019 | (1,282,000) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) income | (4,344) | (4,344) | |||||
Other comprehensive income (loss) | (1,109) | [1] | (1,109) | ||||
ASC 606 correction | Implementation of ASC 606 | 0 | 0 | |||||
Stock-based compensation | 1,112 | 1,112 | |||||
Issuance of common stock under employee stock purchase plan (in shares) | 22,000 | ||||||
Issuance of common stock under employee stock purchase plan | 196 | 196 | |||||
Exercise of stock options and issuance of restricted stock awards, net of forfeitures (in shares) | 39,000 | ||||||
Exercise of stock options and issuance of restricted stock awards, net of forfeitures | $ 51 | $ 1 | 50 | ||||
Ending balance (in shares) at Sep. 30, 2019 | 18,098,586 | 19,381,000 | |||||
Ending balance at Sep. 30, 2019 | $ 151,667 | $ 194 | $ 143,214 | $ 23,021 | $ (4,598) | $ (10,164) | |
Ending balance, treasury stock (in shares) at Sep. 30, 2019 | (1,282,422) | (1,282,000) | |||||
[1] | Tax impact was nominal for all periods. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 36,738 | $ (6,410) |
Adjustments to reconcile net income (loss) to net cash (used in) provided operating activities: | ||
Provision for doubtful accounts | (28) | 444 |
Depreciation and amortization | 8,893 | 9,481 |
Deferred income taxes | 8 | 22 |
Loss on disposals of fixed assets | 164 | 2 |
Gain on sale of Videotel | (53,701) | 0 |
Compensation expense related to stock-based awards and employee stock purchase plan | 3,019 | 2,452 |
Unrealized currency translation gain | (799) | (290) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,637) | (1,217) |
Inventories | (2,412) | (1,907) |
Prepaid expenses, other current assets, and current contract assets | (235) | (232) |
Other non-current assets and non-current contract assets | (729) | (1,647) |
Accounts payable | (2,331) | (992) |
Contract liabilities and long-term contract liabilities | 2,229 | 701 |
Accrued compensation, product warranty and other current liabilities | (612) | 1,364 |
Other long-term liabilities | (17) | (10) |
Net cash (used in) provided by operating activities | (11,450) | 1,761 |
Cash flows from investing activities: | ||
Capital expenditures | (9,335) | (11,463) |
Cash paid for acquisition of intangible asset | (71) | (22) |
Proceeds from sale of fixed assets | 103 | 0 |
Proceeds from sale of Videotel, net of cash sold | 88,447 | 0 |
Purchases of marketable securities | (50,300) | (2,036) |
Maturities and sales of marketable securities | 4,000 | 10,019 |
Net cash provided by (used in) investing activities | 32,844 | (3,502) |
Cash flows from financing activities: | ||
Repayments of long-term debt | (2,597) | (136) |
Repayments of term note borrowings | (21,938) | (3,975) |
Repayments of line of credit borrowings | (15,000) | 0 |
Proceeds from line of credit borrowings | 10,000 | 0 |
Proceeds from stock options exercised and employee stock purchase plan | 558 | 477 |
Sale of treasury stock | 0 | 4,500 |
Payment of finance lease | (457) | |
Payment of finance lease | (410) | |
Net cash (used in) provided by financing activities | (29,434) | 456 |
Effect of exchange rate changes on cash and cash equivalents | (767) | (411) |
Net decrease in cash and cash equivalents | (8,807) | (1,696) |
Cash and cash equivalents at beginning of period | 18,050 | 34,596 |
Cash and cash equivalents at end of period | 9,243 | 32,900 |
Supplemental disclosure of non-cash investing activities: | ||
Changes in accrued other and accounts payable related to property and equipment additions | $ 86 | $ 965 |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business KVH Industries, Inc. (together with its subsidiaries, the Company or KVH) is a leading manufacturer of solutions that provide global high-speed Internet, television, and voice services via satellite to mobile users at sea and on land. KVH is also a leading provider of commercially licensed entertainment, including news, sports, music, and movies, to commercial and leisure customers in the maritime, hotel, and retail markets. KVH is also a premier manufacturer of high-performance navigational sensors and integrated inertial systems for defense and commercial applications. KVH’s reporting segments are as follows: • the mobile connectivity segment and • the inertial navigation segment KVH’s mobile connectivity products enable customers to receive voice services, Internet services, and live digital television via satellite services in marine vessels, recreational vehicles, buses and automobiles. KVH’s CommBox offers a range of tools designed to increase communication efficiency, reduce costs, and manage network operations. KVH sells and leases its mobile connectivity products through an extensive international network of dealers and distributors. KVH also sells and leases products directly to end users. In March 2019, KVH introduced a 1-meter Ku/C-band antenna designed to deliver download/upload speeds as fast as 20 Mbps/3Mbps through a dual Ku/C-band design that automatically switches between bandwidths to deliver expanded global coverage on KVH’s mini-VSAT Broadband high-throughput satellite (HTS) network. In March 2019, KVH further expanded the mini-VSAT Broadband HTS network for the entire Pacific Ocean region via the Horizons 3e satellite, which is jointly owned by Intelsat and SKY Perfect JSAT. The high-performance Horizons 3e satellite immediately adds to the global coverage and capacity of KVH’s mini-VSAT Broadband HTS network, which provides connectivity to vessels worldwide. KVH’s mobile connectivity service sales primarily represent sales earned from satellite voice and Internet airtime services. KVH provides, for monthly fixed and usage fees, satellite connectivity services, including broadband Internet, data and VoIP services, to its TracPhone V-series customers. The Company offers AgilePlans, a monthly mini-VSAT Broadband subscription model providing global connectivity to commercial maritime customers, including hardware, installation, broadband Internet, Voice over Internet Protocol (VoIP), entertainment and training content and global support for a monthly fee with no minimum commitment. KVH offers AgilePlans customers a variety of airtime data plans with varying data speeds and fixed data usage levels with overage charges per megabyte, which is similar to the plans that the Company offers to its other customers. The Company recognizes the monthly subscription fee as service revenue over the service delivery period. The Company retains ownership of the hardware that it provides to AgilePlans customers, who must return the hardware to KVH if they decide to terminate the service. Because KVH does not sell the hardware under AgilePlans, the Company does not recognize any product revenue when the hardware is deployed to an AgilePlans customer. KVH records the cost of the hardware used by AgilePlans customers as revenue-generating assets and depreciates the cost over an estimated useful life of five years. Since the Company retains ownership of the hardware, it does not accrue any warranty costs for AgilePlans hardware; however, any maintenance costs for the hardware are expensed in the period these costs are incurred. Mobile connectivity service sales also include the distribution of commercially licensed entertainment, including news, sports, music, and movies to commercial and leisure customers in the maritime, hotel, and retail markets through KVH Media Group . KVH also earns monthly usage fees from third-party satellite connectivity services, including voice, data and Internet services, provided to its Inmarsat and Iridium customers who choose to activate their subscriptions with KVH. Mobile connectivity service sales also include engineering services provided under development contracts, sales from product repairs, and extended warranty sales. On May 13, 2019, the Company and its wholly owned subsidiary, KVH Media Group Limited (KMG), entered into a Share Purchase Agreement (the Purchase Agreement) with Pelican Holdco Limited, an affiliate of Oakley Capital IV Master SCSp, a UK company (together, Oakley), pursuant to which KMG sold all of the issued share capital of Super Dragon Limited and Videotel Marine Asia Limited (together referred to as Videotel) to Oakley for $89,387 in cash, on a cash-free, debt-free basis, subject to working capital adjustments. Videotel comprised the Company’s maritime training business, which offered video, animation, eLearning computer-based training and interactive distance learning services to the maritime industry. The sale was completed immediately upon execution of definitive agreements. The Company received payment of the initial purchase price pursuant to a loan agreement (the Bridge Loan) on June 21, 2019. The Bridge Loan was secured by a charge (a type of foreign security interest) over the shares of Super Dragon Limited and Videotel Marine Asia Limited and was further backed by an equity commitment letter from Oakley Capital IV Master SCSp. The Bridge Loan’s interest rate was 5% per year during the period from closing until and including the 15 th business day after the closing and increased to 12% per year during the period after the 15 th business day until the maturity date. The working capital adjustment is in the process of being finalized. The Company had accrued an estimated adjustment liability of approximately $300 as of June 30, 2019. In the third quarter of 2019, the Company increased the estimated working capital adjustment by $800 for a total accrual value of $1,100 . The Company anticipates the calculation will be finalized in the fourth quarter of 2019. The Company does not have any continuing involvement in these operations other than short term transition services which are being recorded in other income in continuing operations. The Company determined that the sale met the requirements for reporting as a discontinued operations in accordance with Accounting Standards Codification (ASC) 205-20. Please see Note 20 for the discontinued operations disclosures. KVH's inertial navigation products offer precision fiber optic gyro (FOG)-based systems that enable platform and optical stabilization, navigation, pointing and guidance. KVH’s inertial navigation products also include tactical navigation systems that provide uninterrupted access to navigation and pointing information in a variety of military vehicles, including tactical trucks and light armored vehicles. KVH’s inertial navigation products are sold directly to U.S. and foreign governments and government contractors, as well as through an international network of authorized independent sales representatives. In addition, KVH's inertial navigation technology is used in numerous commercial products, such as navigation and positioning systems for various applications including precision mapping, dynamic surveying, autonomous vehicles, train location control and track geometry measurement systems, industrial robotics and optical stabilization. KVH’s inertial navigation service sales include product repairs, engineering services provided under development contracts and extended warranty sales. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements of KVH Industries, Inc. and its wholly owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America. The Company has evaluated all subsequent events through the date of this filing. All significant intercompany accounts and transactions have been eliminated in consolidation. The 2019 consolidated interim financial statements reflect the sale of Videotel as a discontinued operations. See Notes 1 and 20 for further information on the sale of Videotel. The consolidated interim financial statements have not been audited by the Company’s independent registered public accounting firm and include all adjustments (consisting of only normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial condition, results of operations, and cash flows for the periods presented. These consolidated interim financial statements do not include all disclosures associated with annual financial statements and accordingly should be read in conjunction with the Company’s consolidated financial statements and related notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2018 filed on March 1, 2019 with the Securities and Exchange Commission, which financial statements and related notes do not reflect the sale of Videotel as a discontinued operations. The results for the three and nine months ended September 30, 2019 are not necessarily indicative of operating results for the remainder of the year. The only material change to the significant accounting policies disclosed in the Company’s annual report on Form 10-K for the year ended December 31, 2018 was the Company’s adoption of ASC 842, Leases , effective January 1, 2019. Please see Note 19 for further discussion. Significant Estimates and Assumptions and Other Significant Non-Recurring Transactions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of sales and expenses during the reporting periods. As described in the Company’s annual report on Form 10-K, the most significant estimates and assumptions by management affect the Company’s revenue recognition, valuation of accounts receivable, valuation of inventory, valuations and deferred purchase price consideration related to asset acquisition, expected future cash flows including growth rates, discount rates, terminal values and other assumptions and estimates used to evaluate the recoverability of long-lived assets and goodwill, estimated fair values of long-lived assets, including goodwill, amortization methods and periods, certain accrued expenses and other related charges, stock-based compensation, contingent liabilities, key valuation assumptions for its share-based awards, estimated fulfillment costs for warranty obligations, tax reserves and recoverability of the Company’s net deferred tax assets and related valuation allowance. The Company has reviewed these estimates and determined that these remain the most significant estimates in addition to the valuation of right-of-use assets and lease liabilities as of September 30, 2019 . Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. On February 27, 2018, the Company entered into a stock purchase agreement with SKY Perfect JSAT Corporation, or SJC, pursuant to which the Company agreed to sell 377 shares of treasury stock to SJC for a purchase price of $11.95 per share, or an aggregate of $4,500 , in a private placement. The transaction closed on February 28, 2018. During the first quarter of 2018, the Company entered into a five -year finance lease for three satellite hubs for the HTS network. Please see Note 19 for further discussion. During the second quarter of 2019, the Company sold Videotel. Please see Notes 1 and 20 for further discussion. During the third quarter of 2019, the Company identified an out-of-period immaterial error related to the implementation and application of ASC 606 with respect to the recognition of revenue associated with sales-type leases. Please see Note 16 for further discussion. |
Accounting Standards Issued and
Accounting Standards Issued and Not Yet Adopted | 9 Months Ended |
Sep. 30, 2019 | |
Significant Accounting Policies [Abstract] | |
Accounting Standards Issued and Not Yet Adopted | Accounting Standards Issued and Not Yet Adopted ASC Update No. 2016-13, ASC Update No. 2018-19, ASC Update No. 2019-04, and ASC Update No. 2019-05 In June 2016, the FASB issued ASC Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The update is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for fiscal years beginning after December 15, 2018. The purpose of Update No. 2016-13 is to replace the current incurred loss impairment methodology for financial assets measured at amortized cost with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information, including forecasted information, to develop credit loss estimates. In November 2018, the FASB issued ASC Update No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses . This update introduced an expected credit loss methodology for the impairment of financial assets measured at amortized cost. The amendment also clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. In May 2019, the FASB issued ASC Update No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815 , Derivatives and Hedging, and Topic 825 , Financial Instruments. This update introduced clarifications of the Board’s intent to accrued interest, the transfer between classifications or categories for loans and debt securities, recoveries, reinsurance recoverables, projects of interest rate environments for variable-rate financial instruments, costs to sell when foreclosure is probable, consideration of expected prepayments when determining the effective interest rate, vintage disclosures, and extension and renewal options. In May 2019, the FASB issued ASC Update No. 2019-05, Financial Instruments—Credit Losses (Topic 326). The amendments in the update ease the transition for entities adopting ASC Update 2016-13 and increase the comparability of financial statement information. With the exception of held-to-maturity debt securities, the amendments allow entities to irrevocably elect to apply the fair value option to financial instruments that were previously recorded at amortized cost basis within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost . The adoption of Update Nos. 2016-13, 2018-19, 2019-04, and 2019-05 are not expected to have a material impact on the Company's financial position or results of operations. ASC Update No. 2018-13 In August 2018, the FASB issued ASC Update No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The update is effective for annual periods beginning on or after December 15, 2019. Early adoption is permitted upon issuance of this update. The purpose of Update No. 2018-13 is to modify and eliminate some of the disclosure requirements on fair value measurements found in Topic 820, Fair Value Measurement, for both public and nonpublic entities. Through the inclusion of this update, FASB aims to facilitate a clear communication of the information required by GAAP that is most important to users of each entity's financial statements, thus helping to improve the effectiveness of disclosures in the notes to financial statements. Update No. 2018-13 is not expected to have a material impact on the Company's financial position or results of operations. ASC Update No. 2018-15 In August 2018, the FASB issued ASC Update No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Topic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The update is effective for annual periods beginning on or after December 15, 2019. Early adoption of the amendments in this update is permitted, including adoption in any interim period, for all entities. The purpose of Update No. 2018-15 is to provide a new guideline to the accounting of a customer of a cloud computing arrangement hosted by a vendor when the customer incurs costs associated with the implementation, set-up, and other upfront costs. Specifically, customers will follow the same criteria found in an arrangement with a software license when they capitalize the implementation costs. The new guidance also affects the classification of the capitalized implementation costs and related amortization expense found in a company's balance sheet, income statement, and cash flow statement, and the update also requires additional quantitative and qualitative disclosures. Update No. 2018-15 is not expected to have a material impact on the Company's financial position or results of operations. ASC Update No. 2018-18 In November 2018, the FASB issued ASC Update No. 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 . This update is effective for public business entities for fiscal years beginning after December 15, 2019, and the interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period, for public business entities for periods for which financial statements have not yet been issued. The purpose of Update No. 2018-18 is to help make clarifications on the interactions between Topic 808, Collaborative Arrangement, and Topic 606, Revenue from Contracts with Customers. Update No. 2018-18 is not expected to have a material impact on the Company's financial position or results of operation. There are no other recent accounting pronouncements issued by the FASB that are expected to have a material impact on the Company's financial statements. |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 30, 2019 | |
Marketable Securities [Abstract] | |
Marketable Securities | Marketable Securities Marketable securities as of September 30, 2019 and December 31, 2018 consisted of the following: September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Money market mutual funds $ 46,325 $ — $ — $ 46,325 Total marketable securities designated as available-for-sale $ 46,325 $ — $ — $ 46,325 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Money market mutual funds $ 25 $ — $ — $ 25 Total marketable securities designated as available-for-sale $ 25 $ — $ — $ 25 The amortized costs and fair value of marketable securities as of September 30, 2019 and December 31, 2018 are shown below by effective maturity. Effective maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. September 30, 2019 Amortized Cost Fair Value Due in less than one year $ — $ — December 31, 2018 Amortized Cost Fair Value Due in less than one year $ — $ — Interest income from marketable securities was $267 and $2 during the three months ended September 30, 2019 and 2018 , respectively, and $299 and $17 during the nine months ended September 30, 2019 and 2018 , respectively. |
Stockholder's Equity
Stockholder's Equity | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stockholder's Equity | Stockholder's Equity (a) Stock Equity and Incentive Plan The Company recognizes stock-based compensation in accordance with the provisions of ASC Topic 718, Compensation-Stock Compensation . Stock-based compensation expense, excluding compensation charges related to our employee stock purchase plan, or the ESPP, was $ 1,093 and $ 849 for the three months ended September 30, 2019 and 2018 , respectively, and $2,970 and $2,417 for the nine months ended September 30, 2019 and 2018 , respectively. As of September 30, 2019 , there was $3,351 of total unrecognized compensation expense related to stock options, which is expected to be recognized over a weighted-average period of 2.88 years. As of September 30, 2019 , there was $4,163 of total unrecognized compensation expense related to restricted stock awards, which is expected to be recognized over a weighted-average period of 2.28 years. Stock Options During the three months ended September 30, 2019 , 4 stock options were exercised for common stock. Additionally, during the three months ended September 30, 2019 , 20 stock options were granted and 28 stock options expired, were canceled or were forfeited. During the nine months ended September 30, 2019 , 18 stock options were exercised for common stock, $144 of which was delivered to the Company as payment for the exercise price and none of which were surrendered for minimum tax withholding obligations. Additionally, during the nine months ended September 30, 2019 , 630 stock options were granted with a weighted average grant date fair value of $3.09 per share and 127 stock options expired, were canceled or were forfeited. The Company has estimated the fair value of each option grant on the date of grant using the Black-Scholes option-pricing model. The weighted average assumptions utilized to determine the fair value of options granted during the nine months ended September 30, 2019 and 2018 were as follows: Nine Months Ended September 30, 2019 2018 Risk-free interest rate 1.91 % 2.81 % Expected volatility 36.94 % 36.60 % Expected life (in years) 4.27 4.29 Dividend yield 0 % 0 % As of September 30, 2019 , there were 1,761 options outstanding with a weighted average exercise price of $9.92 per share and 542 options exercisable with a weighted average exercise price of $10.28 per share. Restricted Stock During the three months ended September 30, 2019 , 45 shares of restricted stock were granted with a weighted average grant date fair value of $8.90 per share, and 11 shares of restricted stock were forfeited. Additionally, during the three months ended September 30, 2019 , 30 shares of restricted stock vested, of which no shares of common stock were surrendered to the Company as payment by employees in lieu of cash to satisfy minimum tax withholding obligations in connection with the vesting of restricted stock. During the nine months ended September 30, 2019 , 322 shares of restricted stock were granted with a weighted average grant date fair value of $9.66 per share and 31 shares of restricted stock were forfeited. Additionally, during the nine months ended September 30, 2019 , 287 shares of restricted stock vested, of which no shares of common stock were surrendered to the Company as payment by employees in lieu of cash to satisfy minimum tax withholding obligations in connection with the vesting of restricted stock. As of September 30, 2019 , there were 531 shares of restricted stock outstanding that were still subject to service-based vesting conditions. As of September 30, 2019 , the Company had no unvested outstanding options and no shares of restricted stock that were subject to performance-based or market-based vesting conditions. (b) Employee Stock Purchase Plan The Company's Amended and Restated 1996 Employee Stock Purchase Plan (ESPP) affords eligible employees the right to purchase common stock, via payroll deductions, through various offering periods at a purchase price equal to 85% of the fair market value of the common stock on the first or last day of the offering period, whichever is lower. During the three and nine months ended September 30, 2019 , 22 and 45 shares were issued under the ESPP plan, respectively. During the three and nine months ended September 30, 2018 , 17 shares were issued under the ESPP plan. The Company recorded compensation charges related to the ESPP of $19 and $11 for the three months ended September 30, 2019 and 2018 , respectively, and $49 and $35 for the nine months ended September 30, 2019 and 2018 , respectively. (c) Stock-Based Compensation Expense The following table presents stock-based compensation expense, including expense for the ESPP, in the Company's consolidated statements of operations for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Cost of product sales $ 69 $ 40 $ 171 $ 122 Research and development 221 177 589 496 Sales, marketing and support 226 138 620 485 General and administrative 596 505 1,639 1,349 $ 1,112 $ 860 $ 3,019 $ 2,452 (d) Accumulated Other Comprehensive Loss (AOCI) Comprehensive income (loss) includes net income (loss), unrealized gains and losses from foreign currency translation, unrealized gains and losses from available for sale marketable securities and changes in fair value related to interest rate swap derivative instruments, net of tax attributes, which were not material. The components of the Company’s comprehensive income (loss) and the effect on earnings for the periods presented are detailed in the accompanying consolidated statements of comprehensive income (loss). The balances for the three months ended September 30, 2019 and 2018 are as follows: Foreign Currency Translation Unrealized Gain (Loss) on Available for Sale Marketable Securities Interest Rate Swaps Total Accumulated Other Comprehensive Loss Balance, June 30, 2019 $ (3,489 ) $ — $ — $ (3,489 ) Other comprehensive loss before reclassifications (1,109 ) — — (1,109 ) Reclassified from AOCI — — — — Net other comprehensive loss, September 30, 2019 (1,109 ) — — (1,109 ) Balance, September 30, 2019 $ (4,598 ) $ — $ — $ (4,598 ) Foreign Currency Translation Unrealized Gain (Loss) on Available for Sale Marketable Securities Interest Rate Swaps Total Accumulated Other Comprehensive Loss Balance, June 30, 2018 $ (12,669 ) $ — $ (32 ) $ (12,701 ) Other comprehensive loss before reclassifications (763 ) — — (763 ) Reclassified from AOCI — — 12 12 Net other comprehensive (loss) income, September 30, 2018 (763 ) — 12 (751 ) Balance, September 30, 2018 $ (13,432 ) $ — $ (20 ) $ (13,452 ) The balances for the nine months ended September 30, 2019 and 2018 are as follows: Foreign Currency Translation Unrealized Gain (Loss) on Available for Sale Marketable Securities Interest Rate Swaps Total Accumulated Other Comprehensive Loss Balance, December 31, 2018 $ (14,720 ) $ — $ (11 ) $ (14,731 ) Other comprehensive (loss) income before reclassifications (1,361 ) — 3 (1,358 ) Reclassified from AOCI 11,483 — 8 11,491 Net other comprehensive income, September 30, 2019 10,122 — 11 10,133 Balance, September 30, 2019 $ (4,598 ) $ — $ — $ (4,598 ) Foreign Currency Translation Unrealized (Loss) Gain on Available for Sale Marketable Securities Interest Rate Swaps Total Accumulated Other Comprehensive Loss Balance, December 31, 2017 $ (11,247 ) $ (1 ) $ (69 ) $ (11,317 ) Other comprehensive (loss) income before reclassifications (2,185 ) 1 11 (2,173 ) Reclassified from AOCI — — 38 38 Net other comprehensive (loss) income, September 30, 2018 (2,185 ) 1 49 (2,135 ) Balance, September 30, 2018 $ (13,432 ) $ — $ (20 ) $ (13,452 ) For additional information, see Note 4, "Marketable Securities," and Note 17, "Derivative Instruments and Hedging Activities." |
Net Loss per Common Share
Net Loss per Common Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss per Common Share | Net Loss per Common Share Basic net loss per share is calculated based on the weighted average number of common shares outstanding during the period. Diluted net loss per share incorporates the dilutive effect of common stock equivalent options, warrants and other convertible securities, if any, as determined with the treasury stock accounting method. For the three and nine months ended September 30, 2019 , since there was a net loss from continuing operations, the Company excluded all 1,565 and 1,221 , respectively, in outstanding stock options and non-vested restricted shares from its diluted loss per share calculation, as inclusion of these securities would have reduced the net loss per share. For the three and nine months ended September 30, 2018 , since there was a net loss from continuing operations, the Company excluded all 932 and 739 , respectively, in outstanding stock options and non-vested restricted shares from its diluted loss per share calculation, as inclusion of these securities would have reduced the net loss per share. A reconciliation of the basic and diluted weighted average common shares outstanding for net loss from continuing operations is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Weighted average common shares outstanding—basic 17,521 17,188 17,429 17,025 Dilutive common shares issuable in connection with stock plans — — — — Weighted average common shares outstanding—diluted 17,521 17,188 17,429 17,025 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost and net realizable value using the first-in first-out costing method. Inventories as of September 30, 2019 and December 31, 2018 include the costs of material, labor, and factory overhead. Components of inventories consist of the following: September 30, December 31, Raw materials $ 10,225 $ 13,698 Work in process 3,740 2,489 Finished goods 11,352 6,755 $ 25,317 $ 22,942 During the second quarter of 2019, the Company recorded an inventory reserve of $2.1 million relating to its TracPhone V-IP products as the Company decided to no longer promote sales of these products and instead to focus its efforts on migrating customers to its HTS network and products. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net, as of September 30, 2019 and December 31, 2018 consist of the following: September 30, December 31, Land $ 3,828 $ 3,828 Building and improvements 24,159 24,060 Leasehold improvements 493 478 Machinery and equipment 17,797 17,239 Revenue-generating assets 44,699 38,066 Office and computer equipment 13,444 12,681 Motor vehicles 31 31 104,451 96,383 Less accumulated depreciation (51,790 ) (45,750 ) $ 52,661 $ 50,633 Depreciation expense was $ 2,246 and $1,760 for the three months ended September 30, 2019 and 2018 , respectively, and $ 6,453 and $5,016 for the nine months ended September 30, 2019 and 2018 , respectively. Certain revenue-generating hardware assets are utilized by the Company in the delivery of the Company's airtime services, media, and other content. |
Product Warranty
Product Warranty | 9 Months Ended |
Sep. 30, 2019 | |
Product Warranties Disclosures [Abstract] | |
Product Warranty | Product Warranty The Company’s products carry standard limited warranties that range from one to two years and vary by product. The warranty period begins on the date of retail purchase or lease by the original purchaser. The Company accrues estimated product warranty costs at the time of sale and any additional amounts are recorded when such costs are probable and can be reasonably estimated. Factors that affect the Company’s warranty liability include the number of units sold or leased, historical and anticipated rates of warranty repairs and the cost per repair. Warranty and related costs are reflected within sales, marketing and support in the accompanying consolidated statements of operations. As of September 30, 2019 and December 31, 2018 , the Company had accrued product warranty costs of $2,288 and $1,916 , respectively. The following table summarizes product warranty activity during 2019 and 2018 : Nine Months Ended September 30, 2019 2018 Beginning balance $ 1,916 $ 2,074 Charges to expense 1,478 1,592 Costs incurred (1,106 ) (1,634 ) Ending balance $ 2,288 $ 2,032 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt consisted of the following: September 30, December 31, 2018 term note $ — $ 21,938 2018 revolver — 5,000 Mortgage loan — 2,597 Total long-term debt — 29,535 Less debt issuance costs for 2018 term note (a) — 170 Total long-term debt less debt issuance costs — 29,365 Less amounts classified as current — 9,928 Long-term debt, excluding current portion $ — $ 19,437 (a)- As of December 31, 2018, debt issuance costs classified as current and long-term are $60 and $110 , respectively. Term Note and Line of Credit On October 30, 2018, the Company amended and restated its 2014 Credit Agreement by entering into (i) a three -year senior credit facility agreement (the 2018 Credit Agreement) with Bank of America, N.A., as Administrative Agent, and the lenders named from time to time as parties thereto (the 2018 Lenders), for an aggregate amount of up to $42,500 , including a term loan (2018 Term Loan) of $22,500 and a reducing revolving credit facility (the 2018 Revolver) of up to $20,000 initially and reducing to $15,000 on December 31, 2019, each to be used for general corporate purposes, including the refinancing of the Company’s then outstanding indebtedness under the 2014 Credit Agreement, (ii) a Security Agreement with respect to the grant by the Company of a security interest in substantially all of the assets of the Company in order to secure the obligations of the Company under the 2018 Credit Agreement, and (iii) Pledge Agreements with respect to the grant by the Company of a security interest in 65% of the capital stock of each of KVH Industries A/S and KVH Industries U.K. Limited held by the Company in order to secure the obligations of the Company under the 2018 Credit Agreement. On the closing date, the Company repaid $17,225 on the 2014 Term Loan and refinanced its remaining balance. On the closing date, the Company also borrowed $5,000 under the 2018 Revolver. The 2018 Credit Agreement contains provisions requiring the mandatory prepayment of amounts outstanding under the 2018 Term Loan and the 2018 Revolver under specified circumstances, including (i) 100% of the net cash proceeds from certain dispositions to the extent not reinvested in the Company’s business within a stated period, (ii) 50% of the net cash proceeds from stated equity issuances and (iii) 100% of the net cash proceeds from certain receipts above certain threshold amounts outside the ordinary course of business. The prepayments are first applied to the 2018 Term Loan, in inverse order of maturity, and then to the 2018 Revolver. As of September 30, 2019 , no amounts were outstanding under the 2018 Revolver and the full balance of $20,000 was available for borrowing. Borrowings under the 2018 Revolver are subject to the satisfaction of various conditions precedent at the time of each borrowing, including the continued accuracy of the Company’s representations and warranties and the absence of any default under the 2018 Credit Agreement. On May 13, 2019, the Company entered into a consent with Bank of America, N.A., as Administrative Agent, authorizing the Purchase Agreement and Bridge Loan, as discussed in Note 1. On June 27, 2019, the Company used the proceeds of the sale of Videotel to repay in full the then-outstanding balance of $21,375 under the 2018 Term Loan and to repay $13,000 of the the-outstanding balance under the 2018 Revolver such that the Consolidated Leverage Ratio was not more than 2.75 :1.00. The 2018 Revolver will remain at $20,000 through the term of the Credit Agreement. On October 30, 2021, the entire principal balance of any outstanding loans under the 2018 Revolver is due and payable, together with all accrued and unpaid interest, fees and any other amounts due and payable under the 2018 Credit Agreement. The 2018 Credit Agreement contains two financial covenants, a Maximum Consolidated Leverage Ratio and a Minimum Consolidated Fixed Charge Coverage Ratio, each as defined in the 2018 Credit Agreement. The Consolidated Leverage Ratio may not be greater than 2.75 :1.00 on September 30, 2019 and declines to 2.50 :1.00 on December 31, 2019 and to 2.00 :1.00 on December 31, 2020. The Consolidated Fixed Charge Coverage Ratio may not be less than 1.25 :1.00. The 2018 Credit Agreement imposes certain other affirmative and negative covenants, including without limitation covenants with respect to the payment of taxes and other obligations, compliance with laws, performance of material contracts, creation of liens, incurrence of indebtedness, investments, dispositions, fundamental changes, restricted payments, changes in the nature of the Company’s business, transactions with affiliates, corporate and accounting changes, and sale and leaseback arrangements. The Company’s obligation to repay any loans that may be outstanding under the 2018 Credit Agreement could be accelerated upon an event of default under its terms, including certain failures to pay principal or interest when due, certain breaches of representations and warranties, the failure to comply with the Company’s affirmative and negative covenants under the 2018 Credit Agreement, a change of control of the Company, certain defaults in payment relating to other indebtedness, the acceleration of payment of certain other indebtedness, certain events relating to the liquidation, dissolution, bankruptcy, insolvency or receivership of the Company, the entry of certain judgments against the Company, certain property loss events, and certain events relating to the impairment of collateral or the 2018 Lenders' security interest therein. Mortgage Loan In April 2019, on the Mortgage Loan’s original termination date, the Company repaid in full the outstanding balance of $ 2,551 . As discussed in Note 17 to the consolidated financial statements, in April 2010 the Company entered into two interest rate swap agreements that were intended to hedge its mortgage interest obligations over the term of the Mortgage Loan by fixing the interest rates specified in the Mortgage Loan to 5.91% for half of the principal amount outstanding as of April 1, 2010 and 6.07% for the remaining half. Both interest rate swap agreements were also settled upon repayment of the Mortgage Loan. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The financial results of each segment are based on revenues from external customers, cost of revenue and operating expenses that are directly attributable to the segment and an allocation of costs from shared functions. These shared functions include, but are not limited to, facilities, human resources, information technology, and engineering. Allocations are made based on management’s judgment of the most relevant factors, such as head count, number of customer sites, or other operational data that contribute to the shared costs. Certain corporate-level costs have not been allocated as they are not directly attributable to either segment. These costs primarily consist of broad corporate functions, including executive, legal, finance, and costs associated with corporate actions. Segment-level asset information has not been provided as such information is not reviewed by the chief operating decision-maker for purposes of assessing segment performance and allocating resources. There are no inter-segment sales or transactions. As discussed in Note 1, the Company’s Videotel business, which had previously been included in the mobile connectivity segment, has been classified as discontinued operations and therefore excluded from the segment information below. The Company's performance is impacted by the levels of activity in the marine and land mobile markets and defense sectors, among others. Performance in any particular period could be impacted by the timing of sales to certain large customers. The mobile connectivity segment primarily manufactures and distributes a comprehensive family of mobile satellite antenna products and services that provide access to television, the Internet and voice services while on the move. Product sales within the mobile connectivity segment accounted for 21% and 19% of the Company's consolidated net sales for the three months ended September 30, 2019 and 2018 , respectively, and 21% of the Company's consolidated net sales for both the nine months ended September 30, 2019 and 2018 . Sales of mini-VSAT Broadband airtime service accounted for 51% and 46% of the Company's consolidated net sales for the three months ended September 30, 2019 and 2018 , respectively, and 50% and 46% of the Company's consolidated net sales for the nine months ended September 30, 2019 and 2018 , respectively. The inertial navigation segment manufactures and distributes a portfolio of digital compass and fiber optic gyro (FOG)-based systems that address the rigorous requirements of military and commercial customers and provide reliable, easy-to-use and continuously available navigation and pointing data. The principal product categories in this segment include the FOG-based inertial measurement units (IMUs) for precision guidance, FOGs for tactical navigation as well as pointing and stabilization systems, and digital compasses that provide accurate heading information for demanding applications, security, automation and access control equipment and systems. Sales of FOG-based guidance and navigation systems within the inertial navigation segment accounted for 16% and 21% of the Company's consolidated net sales for the three months ended September 30, 2019 and 2018 , respectively, and 15% and 18% of the Company's consolidated net sales for the nine months ended September 30, 2019 and 2018 , respectively. No other single product class accounts for 10% or more of the Company's consolidated net sales. The Company operates in a number of major geographic areas across the globe. The Company generates international net sales, based upon customer location, primarily from customers located in Canada, Europe, Africa, Asia/Pacific, the Middle East, and India. International revenues represented 59% and 55% of the Company's consolidated net sales for the three months ended September 30, 2019 and 2018 , respectively, and 53% and 54% of the Company's consolidated net sales for the nine months ended September 30, 2019 and 2018 , respectively. Sales to Singapore represented 10% of the Company's consolidated net sales for the three months ended September 30, 2019 . No other individual foreign country represented 10% or more of the Company's consolidated net sales for the three months ended September 30, 2019 . No individual foreign country represented 10% or more of the Company's consolidated net sales for the three months ended September 30, 2018 or the nine months ended September 30, 2019 or 2018 . As of September 30, 2019 and December 31, 2018 , the long-lived tangible assets related to the Company’s international subsidiaries were less than 10% of the Company’s long-lived tangible assets and were deemed not material. Net sales and operating (loss) income for the Company's reporting segments and the Company's loss from continuing operations before income tax (benefit) expense for the three and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net sales: Mobile connectivity $ 31,642 $ 29,220 $ 92,025 $ 86,277 Inertial navigation 7,669 10,092 23,392 27,072 Consolidated net sales $ 39,311 $ 39,312 $ 115,417 $ 113,349 Operating (loss) income: Mobile connectivity $ (267 ) $ 506 $ (4,075 ) $ 682 Inertial navigation (171 ) 1,920 24 3,818 Subtotal (438 ) 2,426 (4,051 ) 4,500 Unallocated, net (4,420 ) (4,283 ) (13,720 ) (12,769 ) Loss from operations (4,858 ) (1,857 ) (17,771 ) (8,269 ) Net interest and other income (expense) 1,058 (66 ) 1,532 (372 ) Loss from continuing operations before income tax (benefit) expense $ (3,800 ) $ (1,923 ) $ (16,239 ) $ (8,641 ) Depreciation expense and amortization expense for the Company's segments are presented in the following table for the periods presented: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Depreciation expense: Mobile connectivity $ 1,824 $ 1,367 $ 5,163 $ 3,848 Inertial navigation 280 260 874 766 Unallocated 142 133 416 402 Total consolidated depreciation expense $ 2,246 $ 1,760 $ 6,453 $ 5,016 Amortization expense: Mobile connectivity $ 237 $ 246 $ 732 $ 764 Inertial navigation — — — — Unallocated — — — — Total consolidated amortization expense $ 237 $ 246 $ 732 $ 764 |
Legal Matters
Legal Matters | 9 Months Ended |
Sep. 30, 2019 | |
Legal Matters [Abstract] | |
Legal Matters | Legal Matters From time to time, the Company is involved in litigation incidental to the conduct of its business. In the ordinary course of business, the Company is a party to inquiries, legal proceedings and claims including, from time to time, disagreements with vendors and customers. The Company is not a party to any lawsuit or proceeding that, in management's opinion, is likely to materially harm the Company's business, results of operations, financial condition, or cash flows. |
Share Buyback Program
Share Buyback Program | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure of Repurchase Agreements [Abstract] | |
Share Buyback Program | Share Buyback Program On November 26, 2008, the Company’s Board of Directors authorized a program to repurchase up to 1,000 shares of the Company’s common stock. As of September 30, 2019 , 341 shares of the Company’s common stock remained available for repurchase under the authorized program. The repurchase program was funded using the Company’s existing cash, cash equivalents, marketable securities and future cash flows. Under the repurchase program, the Company, at management’s discretion, could repurchase shares on the open market from time to time, in privately negotiated transactions or block transactions, or through an accelerated repurchase agreement. The timing of such repurchases depended on availability of shares, price, market conditions, alternative uses of capital, and applicable regulatory requirements. The program was superseded on October 4, 2019, as described below. There were no other repurchase programs outstanding during the nine months ended September 30, 2019 , and no repurchase programs expired during the period. During the nine months ended September 30, 2019 and 2018 , the Company did not repurchase any shares of its common stock. On October 4, 2019, the Company's Board of Directors authorized a share repurchase program pursuant to which the Company may purchase up to an additional 1,000 shares of the Company’s common stock. The repurchase program is expected to be funded using the Company’s existing cash, cash equivalents, marketable securities and future cash flows. Under the repurchase program, the Company, at management’s discretion, may repurchase shares on the open market from time to time, in privately negotiated transactions or block transactions, or through an accelerated repurchase agreement. The timing of such repurchases depends on availability of shares, price, market conditions, alternative uses of capital, and applicable regulatory requirements. The program may be modified, suspended or terminated at any time without prior notice. The repurchase program has a duration of one year . Under the Company's 2018 Credit Agreement, the Company may only repurchase up to $5,000 over the term of the agreement which ends on October 31, 2021. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC Topic 820, Fair Value Measurements and Disclosures (ASC 820), provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company’s Level 1 assets are investments in money market mutual funds. Level 2: Quoted prices for similar assets or liabilities in active markets; or observable prices that are based on observable market data, based on directly or indirectly market-corroborated inputs. The Company’s Level 2 liabilities are interest rate swaps. Level 3: Unobservable inputs that are supported by little or no market activity, and are developed based on the best information available given the circumstances. The Company has no Level 3 assets. Assets and liabilities measured at fair value are based on the valuation techniques identified in the table below. The valuation techniques are: (a) Market approach—prices and other relevant information generated by market transactions involving identical or comparable assets. (b) The valuations of the interest rate swaps intended to mitigate the Company’s interest rate risk are determined with the assistance of a third-party financial institution using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each instrument. This analysis utilizes observable market-based inputs, including interest rate curves and interest rate volatility, and reflects the contractual terms of these instruments, including the period to maturity, as of April 1, 2019. The following tables present financial assets and liabilities at September 30, 2019 and December 31, 2018 for which the Company measures fair value on a recurring basis, by level, within the fair value hierarchy: September 30, 2019 Total Level 1 Level 2 Level 3 Valuation Technique Assets Money market mutual funds $ 46,325 $ 46,325 $ — $ — (a) December 31, 2018 Total Level 1 Level 2 Level 3 Valuation Technique Assets Money market mutual funds $ 25 $ 25 $ — $ — (a) Liabilities Interest rate swaps $ 11 $ — $ 11 $ — (b) Certain financial instruments are carried at cost on the consolidated balance sheets, which approximates fair value due to their short-term, highly liquid nature. These instruments include cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses. The carrying amount of the Company's debt approximates fair value based on currently available quoted rates of similarly structured debt. Assets Measured and Recorded at Fair Value on a Nonrecurring Basis The Company's non-financial assets, such as goodwill, intangible assets, and other long-lived assets resulting from business combinations, are measured at fair value using income approach valuation methodologies at the date of acquisition and subsequently re-measured if an impairment exists. There were no impairments of the Company’s non-financial assets noted as of September 30, 2019 . The Company does not have any liabilities that are recorded at fair value on a non-recurring basis. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table sets forth the changes in the carrying amount of goodwill for the nine months ended September 30, 2019 : Amounts Balance at December 31, 2018 $ 15,031 Foreign currency translation adjustment (364 ) Balance at September 30, 2019 $ 14,667 Intangible Assets The changes in the carrying amount of intangible assets during the nine months ended September 30, 2019 are as follows: Amounts Balance at December 31, 2018 $ 5,661 Amortization expense (732 ) Intangible assets acquired in asset acquisition 71 Foreign currency translation adjustment (160 ) Balance at September 30, 2019 $ 4,840 Intangible assets arose from an acquisition made prior to 2013 and the acquisition of KVH Media Group (acquired as Headland Media Limited) in May 2013. Intangibles arising from the acquisition made prior to 2013 are being amortized on a straight-line basis over an estimated useful life of 7 years . Remaining intangibles arising from the acquisition of KVH Media Group are being amortized on a straight-line basis over the estimated useful life of: (i) 10 years for acquired subscriber relationships and (ii) 15 years for distribution rights. The intangibles arising from the KVH Media Group were recorded in pounds sterling and fluctuations in exchange rates could cause these amounts to increase or decrease from time to time. In January 2017, the Company completed the acquisition of certain subscriber relationships from a third party. This acquisition did not meet the definition of a business under ASC 2017-01, Business Combinations (Topic 805)-Clarifying the Definition of a Business , which the Company adopted on October 1, 2016. The Company ascribed $100 of the initial purchase price to the acquired subscriber relationships definite-lived intangible assets with an initial estimated useful life of 10 years. Under the asset purchase agreement, the purchase price included a component of contingent consideration under which the Company was required to pay a percentage of recurring revenues received from the acquired subscriber relationships through 2026 up to a maximum annual payment of $114 . As of September 30, 2019 , the carrying value of the intangible assets acquired in the asset acquisition was $249 . As the acquisition did not represent a business combination, the contingent consideration arrangement is recognized only when the contingency is resolved and the consideration is paid or becomes payable. The amounts payable under the contingent consideration arrangement, if any, will be included in the measurement of the cost of the acquired subscriber relationships. During the nine months ended September 30, 2019 , $71 of additional consideration was paid under the contingent consideration arrangement. Acquired intangible assets are subject to amortization. The following table summarizes acquired intangible assets at September 30, 2019 and December 31, 2018 , respectively: Gross Carrying Amount Accumulated Amortization Net Carrying Value September 30, 2019 Subscriber relationships $ 7,667 $ 5,050 $ 2,617 Distribution rights 4,155 1,932 2,223 Internally developed software 446 446 — Proprietary content 153 153 — Intellectual property 2,284 2,284 — $ 14,705 $ 9,865 $ 4,840 December 31, 2018 Subscriber relationships $ 7,678 $ 4,519 $ 3,159 Distribution rights 4,233 1,731 2,502 Internally developed software 446 446 — Proprietary content 153 153 — Intellectual property 2,284 2,284 — $ 14,794 $ 9,133 $ 5,661 Amortization expense related to intangible assets for the three and nine months ended September 30, 2019 and 2018 was as follows: Three Months Ended Nine Months Ended September 30, September 30, Expense Category 2019 2018 2019 2018 General and administrative expense $ 237 $ 246 $ 732 $ 764 As of September 30, 2019 , the total weighted average remaining useful lives of the definite-lived intangible assets was 4.7 years and the weighted average remaining useful lives by the definite-lived intangible asset category are as follows: Intangible Asset Weighted Average Remaining Useful Life in Years Subscriber relationships 3.7 Distribution rights 8.6 Estimated future amortization expense remaining at September 30, 2019 for intangible assets acquired is as follows: Remainder of 2019 $ 237 2020 947 2021 947 2022 947 2023 524 Thereafter 1,238 Total future amortization expense $ 4,840 For intangible assets, the Company assesses the carrying value of these assets whenever events or circumstances indicate that the carrying value may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset, or asset group, to the future undiscounted cash flows expected to be generated by the asset, or asset group. There were no events or changes in circumstances during the third quarter of 2019 which indicated that an assessment of the impairment of goodwill and intangible assets was required. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers (ASC 606) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers (ASC 606) | Revenue from Contracts with Customers (ASC 606) The Company adopted ASC 606 on January 1, 2018 using the modified retrospective method for all contracts not completed as of the date of adoption. The adoption of ASC 606 represented a change in accounting principle that was expected to more closely align revenue recognition with the delivery of the Company's products and services and was expected to provide financial statement readers with enhanced disclosures. In accordance with ASC 606, revenue is recognized when a customer obtains control of promised products and services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these products and services. During the three months ended September 30, 2019, the Company identified an out-of-period immaterial error related to the implementation and application of ASC 606 with respect to the recognition of revenue associated with sales-type leases. During the implementation of ASC 606 effective January 1, 2018, the Company treated the leased products and services for these contracts as single performance obligations as if they were not distinct in the context of the contract; however, the leased product portion should have continued to have been accounted for under ASC 840 (now ASC 842). In general, the error was to defer recognition of product revenue and associated expenses for sales-type leases rather than to recognize those items upon shipment. In accordance with ASC 250, Accounting Changes and Error Corrections , the immaterial cumulative correction was recorded during the three and nine months ended September 30, 2019. During the nine months ended September 30, 2019, the Company corrected 2019 sales-type leases deferred as of March 31, 2019 and June 30, 2019 by adjusting product sales, cost of product sales and net loss for each of the three months ended March 31, 2019 and June 30, 2019. During the three months ended September 30, 2019, the Company corrected the amount of revenue not previously recognized related to the deferral of the 2018 sales-type leases. During the three and nine months ended September 30, 2019, the Company also corrected sales-type leases in effect on January 1, 2018 through an adjustment to accumulated deficit as of January 1, 2019, because during the ASC 606 implementation, sales-type lease revenue and the associated cost had been deferred on the balance sheet as contract liabilities and assets. The cumulative correction of the immaterial error for the the three months ended September 30, 2019 had the effect of increasing net loss by $336 , comprised primarily of a $514 increase in product sales, a $818 increase in costs of product sales, and a $20 increase in sales, marketing and support expenses. The cumulative correction for the nine months ended September 30, 2019 comprised of corrections made to earlier interim periods in 2019 as well as the impact discussed above related to the three months ended September 30, 2019, which had the effect of increasing net loss by $250 , comprised primarily of a $1,350 increase in product sales, a $1,591 increase in costs of product sales, and a $15 increase in sales, marketing and support expenses. The portion of the correction for the nine months ended September 30, 2019 impacting earlier interim periods in 2019 was made by adjusting the three months ended March 31, 2019 and June 30, 2019, which had the effect of increasing net loss by $75 and decreasing net loss by $161 for the three months ended March 31, 2019 and June 30, 2019, respectively, comprised of a $341 and $495 , respectively, increase in product sales and a $431 and $341 , respectively, increase in costs of product sales. The following table reflects these financial statement line items as of and for the three months ended March 31, 2019 and June 30, 2019, as reported and as adjusted (in thousands): Three Months Ended Three Months Ended March 31, 2019 June 30, 2019 As reported As adjusted As reported As adjusted Product sales $ 12,874 $ 13,215 $ 14,694 $ 15,189 Cost of product sales 7,853 8,284 12,308 12,649 Net loss (6,179 ) (6,254 ) (3,454 ) (3,293 ) For the balance sheet impact of correcting January 1, 2019 sales-type leases in effect as of January 1, 2018, accumulated deficit was reduced by $1,680 , comprised of a reduction in current contract assets of $2,132 , non-current contract assets of $3,110 , current contract liabilities of $2,970 , non-current contract liabilities of $4,018 and non-current deferred income tax asset of $66 . The following table reflects these financial statement line items as of March 31, 2019 and June 30, 2019, as reported and as adjusted: At March 31, 2019 At June 30, 2019 As reported As adjusted As reported As adjusted Current contract assets $ 3,678 $ 1,439 $ 3,834 $ 1,655 Non-current contract assets 7,342 3,912 7,577 3,747 Current contract liabilities 12,211 9,252 8,119 5,153 Non-current contract liabilities 9,634 5,263 10,056 5,198 Non-current deferred tax asset 1,747 1,692 868 820 (Accumulated deficit) retained earnings (21,576 ) (19,971 ) 25,600 27,365 The Company has evaluated this error and does not believe the amounts are material to any of the periods impacted. Disaggregation of Revenue The following table summarizes net sales from contracts with customers for the three and nine months ended September 30, 2019 : Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Mobile connectivity product, transferred at point in time $ 7,540 $ 6,297 $ 22,536 $ 19,698 Mobile connectivity product, transferred over time (a) 537 1,259 1,507 3,881 Mobile connectivity service 23,565 21,664 67,982 62,698 Inertial navigation product 6,731 8,811 19,169 22,942 Inertial navigation service 938 1,281 4,223 4,130 Total net sales $ 39,311 $ 39,312 $ 115,417 $ 113,349 a- Reflects the correction discussed above. Revenue recognized during the three months ended September 30, 2019 and 2018 from amounts included in contract liabilities at the beginning of the period was $ 453 and $1,117 , respectively. Revenue recognized during the nine months ended September 30, 2019 and 2018 from amounts included in contract liabilities at the beginning of the period was $ 1,360 and $3,525 , respectively. For mobile connectivity product sales, the delivery of the Company’s performance obligations, and associated revenue, are generally transferred to the customer at a point in time, with the exception of certain mini-VSAT contracts which are transferred to customers over time. For mobile connectivity service sales, the delivery of the Company’s performance obligations and associated revenue are transferred to the customer over time. For inertial navigation product sales, the delivery of the Company’s performance obligations, and associated revenue, are generally transferred to the customer at a point in time. For inertial navigation service sales, the Company's performance obligations, and associated revenue, are generally transferred to customers over time. Business and Credit Concentrations Concentrations of risk with respect to trade accounts receivable are generally limited due to the large number of customers and their dispersion across several geographic areas. Although the Company does not foresee that credit risk associated with these receivables will deviate from historical experience, repayment is dependent upon the financial stability of those individual customers. The Company establishes allowances for potential bad debts and evaluates, on a monthly basis, the adequacy of those reserves based upon historical experience and its expectations for future collectability concerns. The Company performs ongoing credit evaluations of the financial condition of its customers and generally does not require collateral. No single customer accounted for 10% or more of the Company's consolidated net sales for three or nine months ended September 30, 2019 or 2018 or accounts receivable at September 30, 2019 or December 31, 2018 . Certain components from third parties used in the Company’s products are procured from single sources of supply. The failure of a supplier, including a subcontractor, to deliver on schedule could delay or interrupt the Company’s delivery of products and thereby materially adversely affect the Company’s revenues and operating results. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2019 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Effective April 1, 2010, in order to reduce the volatility of cash outflows that arise from changes in interest rates, the Company entered into two interest rate swap agreements. These interest rate swap agreements were intended to hedge the Company’s mortgage loan related to its headquarters facility in Middletown, Rhode Island by fixing the interest rates specified in the mortgage loan to 5.9% for half of the principal amount outstanding and 6.1% for the remaining half of the principal amount outstanding as of April 1, 2010 until the mortgage loan expired on April 16, 2019 . The Company does not use derivatives for speculative purposes. For a derivative that is designated as a cash flow hedge, changes in the fair value of the derivative are recognized in accumulated other comprehensive (loss) income (AOCI) to the extent the derivative is effective at offsetting the changes in the cash flows being hedged until the hedged item affects earnings. As the Company made the required principal and interest payments under the mortgage loan and the related interest rate swaps were settled, the Company reclassified the amounts recorded in AOCI related to the changes in the fair value of the settled interest rate swaps to earnings. To the extent there was any hedge ineffectiveness, changes in fair value relating to the ineffective portion were immediately recognized in earnings in other income (expense) in the consolidated statements of operations. The interest rate swap was recorded within accrued other liabilities on the balance sheet. The critical terms of the interest rate swaps were designed to mirror the terms of the Company’s mortgage loans. The Company designated these derivatives as cash flow hedges of the variability of the LIBOR-based interest payments on principal over a nine-year period, which ended on April 1, 2019. On April 1, 2019, the two interest rate swaps matured and the Company made its final payment for its mortgage loan thereafter. As of December 31, 2018 , the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: Interest Rate Derivatives Notional (in thousands) Asset (Liability) Effective Date Maturity Date Index Strike Rate Interest rate swap $ 1,299 $ (5 ) April 1, 2010 April 1, 2019 1-month LIBOR 5.91 % Interest rate swap $ 1,299 $ (6 ) April 1, 2010 April 1, 2019 1-month LIBOR 6.07 % |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate from continuing operations for the three and nine months ended September 30, 2019 was 12.9% and 19.3% , respectively, compared with (0.4)% and (1.6)% for the corresponding periods in the prior year, respectively. The effective income tax rate is based on estimated income for the year, the estimated composition of the income in different jurisdictions and discrete adjustments, if any, in the applicable periods, including retroactive changes in tax legislation, settlements of tax audits or assessments, and the resolution or identification of tax position uncertainties. For both the three and nine months ended September 30, 2019 and 2018 , the effective tax rates were lower than the statutory tax rate primarily due to the Company maintaining a valuation allowance reserve on its US deferred tax assets and to the composition of income from foreign jurisdictions that were taxed at lower rates. As of September 30, 2019 and December 31, 2018 , the Company had reserves for uncertain tax positions of $686 and $631 , respectively. There were no material changes during the nine months ended September 30, 2019 to the Company’s reserve for uncertain tax positions. The Company estimates that it is reasonably possible that the balance of unrecognized tax benefits as of September 30, 2019 may decrease $175 in the next twelve months as a result of a lapse of statutes of limitations and settlements with taxing authorities. The Company’s tax jurisdictions include the United States, the United Kingdom, Denmark, Cyprus, Norway, Brazil, Singapore, Belgium, the Netherlands, Hong Kong, India and Japan. In general, the statute of limitations with respect to the Company's United States federal income taxes has expired for years prior to 2015, and the relevant state and foreign statutes vary. However, preceding years remain open to examination by United States federal and state and foreign taxing authorities to the extent of future utilization of net operating losses and research and development tax credits generated in each preceding year. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company adopted ASC 842 on January 1, 2019. ASC 842 requires the recognition of lease assets and lease liabilities for leases classified as operating leases. The original guidance required application of ASC 842 on a modified retrospective basis with the earliest period presented. In August 2018, the FASB issued ASU 2018-11, Targeted Improvements to ASC 842 , which included an option to not restate comparative periods in transition and elect to use the effective date as the date of initial application of transition. The Company elected not to restate comparative periods and, accordingly, the financial results reported for periods prior to January 1, 2019 have not been restated. In ASC 842, a lease is defined as follows: “[a] contract is or contains a lease if the contract conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration.” Upon adoption, the Company recognized all leases greater than one year in duration on the balance sheet as right-of-use assets and lease liabilities. The Company made certain assumptions and judgments when applying ASC 842. The Company elected practical expedients available for the transition, such as whether expired or existing contracts contain leases under the new definition of a lease, lease classification for expired or existing leases, and whether previously capitalized initial direct costs would qualify for capitalization under ASC 842. For all asset classes, the Company elected to not separate non-lease components from lease components to which they relate and have accounted for the combined lease and non-lease components as a single lease component. Many of our lease agreements contain renewal options which are recognized if it is determined that the Company is reasonably certain to renew the lease at inception or when a triggering event occurs. Some of our lease agreements contain rent escalation clauses, rent holidays, capital improvement funding or other lease concessions. The Company recognizes the minimum rental expense on a straight-line basis based on the fixed components of a lease arrangement and amortize such expense over the term of the lease beginning with the commencement date. Variable lease components that are not fixed at the beginning of the lease are recognized as incurred. Under certain third-party service agreements, the Company controls a specific space or underlying asset used in providing the service by the third-party service provider. These arrangements meet the definition under ASC 842 and therefore are accounted for under ASC 842. Right-of-use assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term and include options to extend or terminate the lease when reasonably certain to be exercised. The present value of lease payments is determined using the incremental borrowing rate based on the information available at the lease commencement date. Lessee The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense from continuing operations for the three and nine months ended September 30, 2019 was $1,264 and $3,796 , respectively. The future minimum lease payments under our operating leases as of September 30, 2019 are: Remainder of 2019 $ 1,265 2020 2,958 2021 1,265 2022 1,183 2023 376 2024 and thereafter 529 Total minimum lease payments $ 7,576 Less amount representing interest $ (604 ) Present value of net minimum operating lease payments $ 6,972 Less current installments of obligation under current-operating lease liabilities $ 3,584 Obligations under long-term operating lease liabilities, excluding current installments $ 3,388 Weighted-average remaining lease term - operating leases (years) 2.89 Weighted-average discount rate - operating leases 5.50 % During the first quarter of 2018, the Company entered into a five -year financing lease for three satellite hubs for its HTS network. As of September 30, 2019 , the gross costs and accumulated depreciation associated with this lease are included in revenue generating assets and amounted to $3,068 and $736 , respectively. Obligations under financing leases are stated at the present value of minimum lease payments. The property and equipment held under this financing lease are amortized on a straight‑line basis over the seven -year estimated useful life of the asset, since the lease meets the bargain purchase option criteria . Amortization of assets held under financing leases is included within depreciation expense. Depreciation expense for these capital assets was $110 and $110 for the three months ended September 30, 2019 and 2018, respectively, and $329 and $298 for the nine months ended September 30, 2019 and 2018, respectively. The future minimum lease payments under this financing lease as of September 30, 2019 are: Remainder of 2019 $ 156 2020 624 2021 624 2022 624 2023 45 2024 and thereafter — Total minimum lease payments $ 2,073 Less amount representing interest $ (23 ) Present value of net minimum financing lease payments $ 2,050 Less current installments of obligation under accrued other $ 612 Obligations under other long-term liabilities, excluding current installments $ 1,438 Weighted-average remaining lease term - finance leases (years) 3.42 Weighted-average discount rate - finance leases 1.53 % Lessor The Company enters into leases with certain customers primarily of the TracPhone VSAT systems. These leases are classified as sales-type leases as title of the equipment transfers to the customer at the end of the lease term. The Company records the leases at a price typically equivalent to normal selling price and in excess of the cost or carrying amount. Upon delivery, the Company records the net present value of all payments under these leases as revenue, and the related costs of the product are charged to cost of sales. Interest income is recognized throughout the lease term (typically three to five years ) using an implicit interest rate. The sales-type leases do not have unguaranteed residual assets. The current portion of the net investment in these leases was $3,862 as of September 30, 2019 and the non-current portion of the net investment in these leases was $5,970 as of September 30, 2019. The current portion of the net investment in the leases is included in accounts receivable, net of allowance for doubtful accounts on the accompanying consolidated balance sheets and the non-current portion of the net investment in these leases is included in other non-current assets on the accompanying consolidated balance sheets. Interest income from sales-type leases was $177 and $508 during the three and nine months ended September 30, 2019, respectively. The future undiscounted cash flows from these leases as of September 30, 2019 are: Remainder of 2019 $ 1,550 2020 3,815 2021 2,783 2022 1,661 2023 1,059 2024 261 Total undiscounted cash flows $ 11,129 Present value of lease payments $ 9,832 Difference between undiscounted cash flows and discounted cash flows $ 1,297 |
Leases | Leases The Company adopted ASC 842 on January 1, 2019. ASC 842 requires the recognition of lease assets and lease liabilities for leases classified as operating leases. The original guidance required application of ASC 842 on a modified retrospective basis with the earliest period presented. In August 2018, the FASB issued ASU 2018-11, Targeted Improvements to ASC 842 , which included an option to not restate comparative periods in transition and elect to use the effective date as the date of initial application of transition. The Company elected not to restate comparative periods and, accordingly, the financial results reported for periods prior to January 1, 2019 have not been restated. In ASC 842, a lease is defined as follows: “[a] contract is or contains a lease if the contract conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration.” Upon adoption, the Company recognized all leases greater than one year in duration on the balance sheet as right-of-use assets and lease liabilities. The Company made certain assumptions and judgments when applying ASC 842. The Company elected practical expedients available for the transition, such as whether expired or existing contracts contain leases under the new definition of a lease, lease classification for expired or existing leases, and whether previously capitalized initial direct costs would qualify for capitalization under ASC 842. For all asset classes, the Company elected to not separate non-lease components from lease components to which they relate and have accounted for the combined lease and non-lease components as a single lease component. Many of our lease agreements contain renewal options which are recognized if it is determined that the Company is reasonably certain to renew the lease at inception or when a triggering event occurs. Some of our lease agreements contain rent escalation clauses, rent holidays, capital improvement funding or other lease concessions. The Company recognizes the minimum rental expense on a straight-line basis based on the fixed components of a lease arrangement and amortize such expense over the term of the lease beginning with the commencement date. Variable lease components that are not fixed at the beginning of the lease are recognized as incurred. Under certain third-party service agreements, the Company controls a specific space or underlying asset used in providing the service by the third-party service provider. These arrangements meet the definition under ASC 842 and therefore are accounted for under ASC 842. Right-of-use assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term and include options to extend or terminate the lease when reasonably certain to be exercised. The present value of lease payments is determined using the incremental borrowing rate based on the information available at the lease commencement date. Lessee The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense from continuing operations for the three and nine months ended September 30, 2019 was $1,264 and $3,796 , respectively. The future minimum lease payments under our operating leases as of September 30, 2019 are: Remainder of 2019 $ 1,265 2020 2,958 2021 1,265 2022 1,183 2023 376 2024 and thereafter 529 Total minimum lease payments $ 7,576 Less amount representing interest $ (604 ) Present value of net minimum operating lease payments $ 6,972 Less current installments of obligation under current-operating lease liabilities $ 3,584 Obligations under long-term operating lease liabilities, excluding current installments $ 3,388 Weighted-average remaining lease term - operating leases (years) 2.89 Weighted-average discount rate - operating leases 5.50 % During the first quarter of 2018, the Company entered into a five -year financing lease for three satellite hubs for its HTS network. As of September 30, 2019 , the gross costs and accumulated depreciation associated with this lease are included in revenue generating assets and amounted to $3,068 and $736 , respectively. Obligations under financing leases are stated at the present value of minimum lease payments. The property and equipment held under this financing lease are amortized on a straight‑line basis over the seven -year estimated useful life of the asset, since the lease meets the bargain purchase option criteria . Amortization of assets held under financing leases is included within depreciation expense. Depreciation expense for these capital assets was $110 and $110 for the three months ended September 30, 2019 and 2018, respectively, and $329 and $298 for the nine months ended September 30, 2019 and 2018, respectively. The future minimum lease payments under this financing lease as of September 30, 2019 are: Remainder of 2019 $ 156 2020 624 2021 624 2022 624 2023 45 2024 and thereafter — Total minimum lease payments $ 2,073 Less amount representing interest $ (23 ) Present value of net minimum financing lease payments $ 2,050 Less current installments of obligation under accrued other $ 612 Obligations under other long-term liabilities, excluding current installments $ 1,438 Weighted-average remaining lease term - finance leases (years) 3.42 Weighted-average discount rate - finance leases 1.53 % Lessor The Company enters into leases with certain customers primarily of the TracPhone VSAT systems. These leases are classified as sales-type leases as title of the equipment transfers to the customer at the end of the lease term. The Company records the leases at a price typically equivalent to normal selling price and in excess of the cost or carrying amount. Upon delivery, the Company records the net present value of all payments under these leases as revenue, and the related costs of the product are charged to cost of sales. Interest income is recognized throughout the lease term (typically three to five years ) using an implicit interest rate. The sales-type leases do not have unguaranteed residual assets. The current portion of the net investment in these leases was $3,862 as of September 30, 2019 and the non-current portion of the net investment in these leases was $5,970 as of September 30, 2019. The current portion of the net investment in the leases is included in accounts receivable, net of allowance for doubtful accounts on the accompanying consolidated balance sheets and the non-current portion of the net investment in these leases is included in other non-current assets on the accompanying consolidated balance sheets. Interest income from sales-type leases was $177 and $508 during the three and nine months ended September 30, 2019, respectively. The future undiscounted cash flows from these leases as of September 30, 2019 are: Remainder of 2019 $ 1,550 2020 3,815 2021 2,783 2022 1,661 2023 1,059 2024 261 Total undiscounted cash flows $ 11,129 Present value of lease payments $ 9,832 Difference between undiscounted cash flows and discounted cash flows $ 1,297 |
Leases | Leases The Company adopted ASC 842 on January 1, 2019. ASC 842 requires the recognition of lease assets and lease liabilities for leases classified as operating leases. The original guidance required application of ASC 842 on a modified retrospective basis with the earliest period presented. In August 2018, the FASB issued ASU 2018-11, Targeted Improvements to ASC 842 , which included an option to not restate comparative periods in transition and elect to use the effective date as the date of initial application of transition. The Company elected not to restate comparative periods and, accordingly, the financial results reported for periods prior to January 1, 2019 have not been restated. In ASC 842, a lease is defined as follows: “[a] contract is or contains a lease if the contract conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration.” Upon adoption, the Company recognized all leases greater than one year in duration on the balance sheet as right-of-use assets and lease liabilities. The Company made certain assumptions and judgments when applying ASC 842. The Company elected practical expedients available for the transition, such as whether expired or existing contracts contain leases under the new definition of a lease, lease classification for expired or existing leases, and whether previously capitalized initial direct costs would qualify for capitalization under ASC 842. For all asset classes, the Company elected to not separate non-lease components from lease components to which they relate and have accounted for the combined lease and non-lease components as a single lease component. Many of our lease agreements contain renewal options which are recognized if it is determined that the Company is reasonably certain to renew the lease at inception or when a triggering event occurs. Some of our lease agreements contain rent escalation clauses, rent holidays, capital improvement funding or other lease concessions. The Company recognizes the minimum rental expense on a straight-line basis based on the fixed components of a lease arrangement and amortize such expense over the term of the lease beginning with the commencement date. Variable lease components that are not fixed at the beginning of the lease are recognized as incurred. Under certain third-party service agreements, the Company controls a specific space or underlying asset used in providing the service by the third-party service provider. These arrangements meet the definition under ASC 842 and therefore are accounted for under ASC 842. Right-of-use assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term and include options to extend or terminate the lease when reasonably certain to be exercised. The present value of lease payments is determined using the incremental borrowing rate based on the information available at the lease commencement date. Lessee The Company has operating leases for office facilities, equipment, and satellite service capacity and related equipment. Lease expense from continuing operations for the three and nine months ended September 30, 2019 was $1,264 and $3,796 , respectively. The future minimum lease payments under our operating leases as of September 30, 2019 are: Remainder of 2019 $ 1,265 2020 2,958 2021 1,265 2022 1,183 2023 376 2024 and thereafter 529 Total minimum lease payments $ 7,576 Less amount representing interest $ (604 ) Present value of net minimum operating lease payments $ 6,972 Less current installments of obligation under current-operating lease liabilities $ 3,584 Obligations under long-term operating lease liabilities, excluding current installments $ 3,388 Weighted-average remaining lease term - operating leases (years) 2.89 Weighted-average discount rate - operating leases 5.50 % During the first quarter of 2018, the Company entered into a five -year financing lease for three satellite hubs for its HTS network. As of September 30, 2019 , the gross costs and accumulated depreciation associated with this lease are included in revenue generating assets and amounted to $3,068 and $736 , respectively. Obligations under financing leases are stated at the present value of minimum lease payments. The property and equipment held under this financing lease are amortized on a straight‑line basis over the seven -year estimated useful life of the asset, since the lease meets the bargain purchase option criteria . Amortization of assets held under financing leases is included within depreciation expense. Depreciation expense for these capital assets was $110 and $110 for the three months ended September 30, 2019 and 2018, respectively, and $329 and $298 for the nine months ended September 30, 2019 and 2018, respectively. The future minimum lease payments under this financing lease as of September 30, 2019 are: Remainder of 2019 $ 156 2020 624 2021 624 2022 624 2023 45 2024 and thereafter — Total minimum lease payments $ 2,073 Less amount representing interest $ (23 ) Present value of net minimum financing lease payments $ 2,050 Less current installments of obligation under accrued other $ 612 Obligations under other long-term liabilities, excluding current installments $ 1,438 Weighted-average remaining lease term - finance leases (years) 3.42 Weighted-average discount rate - finance leases 1.53 % Lessor The Company enters into leases with certain customers primarily of the TracPhone VSAT systems. These leases are classified as sales-type leases as title of the equipment transfers to the customer at the end of the lease term. The Company records the leases at a price typically equivalent to normal selling price and in excess of the cost or carrying amount. Upon delivery, the Company records the net present value of all payments under these leases as revenue, and the related costs of the product are charged to cost of sales. Interest income is recognized throughout the lease term (typically three to five years ) using an implicit interest rate. The sales-type leases do not have unguaranteed residual assets. The current portion of the net investment in these leases was $3,862 as of September 30, 2019 and the non-current portion of the net investment in these leases was $5,970 as of September 30, 2019. The current portion of the net investment in the leases is included in accounts receivable, net of allowance for doubtful accounts on the accompanying consolidated balance sheets and the non-current portion of the net investment in these leases is included in other non-current assets on the accompanying consolidated balance sheets. Interest income from sales-type leases was $177 and $508 during the three and nine months ended September 30, 2019, respectively. The future undiscounted cash flows from these leases as of September 30, 2019 are: Remainder of 2019 $ 1,550 2020 3,815 2021 2,783 2022 1,661 2023 1,059 2024 261 Total undiscounted cash flows $ 11,129 Present value of lease payments $ 9,832 Difference between undiscounted cash flows and discounted cash flows $ 1,297 |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations During the second quarter of 2019, the Company sold its Videotel business. The Company determined that the sale met the requirements for reporting as a discontinued operations in accordance with Accounting Standards Codification (ASC) 205-20. Please see Note 1 for further discussion. The following table presents a reconciliation of the carrying amounts of major classes of assets and liabilities of the discontinued operations to the amounts presented separately in the Company's consolidated balance sheet: December 31, 2018 Cash and cash equivalents $ 2,838 Accounts receivable, net 1,071 Prepaid expenses and other current assets 962 Current assets held for sale $ 4,871 Property and equipment, net 2,615 Intangible assets, net 4,857 Goodwill 17,182 Other non-current assets 1,252 Non-current assets held for sale $ 25,906 Accounts payable 991 Accrued compensation and employee-related expenses 220 Accrued other 1,362 Contract liabilities 1,546 Liability for uncertain tax positions 485 Current liabilities held for sale $ 4,604 Non-current deferred income tax liability 813 Non-current liabilities held for sale $ 813 Net assets held for sale $ 25,360 The following table presents a reconciliation of the major financial line items constituting the results for discontinued operations to the net income from discontinued operations, net of tax, presented separately in the Company's consolidated statements of operations and comprehensive income (loss): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Sales: Service sales $ — $ 4,205 $ 5,769 $ 13,661 Costs, expenses and other expense, net: Costs of service sales — 1,243 1,807 3,956 Sales, marketing and support — 1,075 1,606 3,324 General and administrative — 950 1,619 3,399 Other expense, net — (27 ) (23 ) (83 ) Income from discontinued operations before tax expense — 910 714 2,899 (Loss) gain on sale of discontinued operations before tax expense (819 ) — 53,701 — Total (loss) income from discontinued operations before tax expense $ (819 ) $ 910 $ 54,415 $ 2,899 Income tax expense on discontinued operations 217 153 4,578 530 (Loss) income from discontinued operations, net of taxes $ (1,036 ) $ 757 $ 49,837 $ 2,369 Net (loss) income from discontinued operations per common share Basic and diluted $ (0.06 ) $ 0.04 $ 2.86 $ 0.14 Weighted average number of common shares outstanding: Basic and diluted 17,521 17,188 17,429 17,025 The following table presents supplemental cash flow information of the discontinued operations: Nine Months Ended September 30, 2019 2018 Cash (used in) provided by operating activities—discontinued operations $ (1,838 ) $ 6,248 Cash provided by (used in) investing activities—discontinued operations $ 87,986 $ (1,311 ) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of KVH Industries, Inc. and its wholly owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America. The Company has evaluated all subsequent events through the date of this filing. All significant intercompany accounts and transactions have been eliminated in consolidation. The 2019 consolidated interim financial statements reflect the sale of Videotel as a discontinued operations. See Notes 1 and 20 for further information on the sale of Videotel. The consolidated interim financial statements have not been audited by the Company’s independent registered public accounting firm and include all adjustments (consisting of only normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial condition, results of operations, and cash flows for the periods presented. These consolidated interim financial statements do not include all disclosures associated with annual financial statements and accordingly should be read in conjunction with the Company’s consolidated financial statements and related notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2018 filed on March 1, 2019 with the Securities and Exchange Commission, which financial statements and related notes do not reflect the sale of Videotel as a discontinued operations. The results for the three and nine months ended September 30, 2019 are not necessarily indicative of operating results for the remainder of the year. |
Significant Estimates and Assumptions and Other Significant Non-Recurring Transactions | Significant Estimates and Assumptions and Other Significant Non-Recurring Transactions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of sales and expenses during the reporting periods. As described in the Company’s annual report on Form 10-K, the most significant estimates and assumptions by management affect the Company’s revenue recognition, valuation of accounts receivable, valuation of inventory, valuations and deferred purchase price consideration related to asset acquisition, expected future cash flows including growth rates, discount rates, terminal values and other assumptions and estimates used to evaluate the recoverability of long-lived assets and goodwill, estimated fair values of long-lived assets, including goodwill, amortization methods and periods, certain accrued expenses and other related charges, stock-based compensation, contingent liabilities, key valuation assumptions for its share-based awards, estimated fulfillment costs for warranty obligations, tax reserves and recoverability of the Company’s net deferred tax assets and related valuation allowance. The Company has reviewed these estimates and determined that these remain the most significant estimates in addition to the valuation of right-of-use assets and lease liabilities as of September 30, 2019 . Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. |
Share-based Payment Arrangement | The Company recognizes stock-based compensation in accordance with the provisions of ASC Topic 718, Compensation-Stock Compensation . |
Accounting Standards Issued and Not Yet Adopted | Accounting Standards Issued and Not Yet Adopted ASC Update No. 2016-13, ASC Update No. 2018-19, ASC Update No. 2019-04, and ASC Update No. 2019-05 In June 2016, the FASB issued ASC Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The update is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for fiscal years beginning after December 15, 2018. The purpose of Update No. 2016-13 is to replace the current incurred loss impairment methodology for financial assets measured at amortized cost with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information, including forecasted information, to develop credit loss estimates. In November 2018, the FASB issued ASC Update No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses . This update introduced an expected credit loss methodology for the impairment of financial assets measured at amortized cost. The amendment also clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. In May 2019, the FASB issued ASC Update No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815 , Derivatives and Hedging, and Topic 825 , Financial Instruments. This update introduced clarifications of the Board’s intent to accrued interest, the transfer between classifications or categories for loans and debt securities, recoveries, reinsurance recoverables, projects of interest rate environments for variable-rate financial instruments, costs to sell when foreclosure is probable, consideration of expected prepayments when determining the effective interest rate, vintage disclosures, and extension and renewal options. In May 2019, the FASB issued ASC Update No. 2019-05, Financial Instruments—Credit Losses (Topic 326). The amendments in the update ease the transition for entities adopting ASC Update 2016-13 and increase the comparability of financial statement information. With the exception of held-to-maturity debt securities, the amendments allow entities to irrevocably elect to apply the fair value option to financial instruments that were previously recorded at amortized cost basis within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost . The adoption of Update Nos. 2016-13, 2018-19, 2019-04, and 2019-05 are not expected to have a material impact on the Company's financial position or results of operations. ASC Update No. 2018-13 In August 2018, the FASB issued ASC Update No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The update is effective for annual periods beginning on or after December 15, 2019. Early adoption is permitted upon issuance of this update. The purpose of Update No. 2018-13 is to modify and eliminate some of the disclosure requirements on fair value measurements found in Topic 820, Fair Value Measurement, for both public and nonpublic entities. Through the inclusion of this update, FASB aims to facilitate a clear communication of the information required by GAAP that is most important to users of each entity's financial statements, thus helping to improve the effectiveness of disclosures in the notes to financial statements. Update No. 2018-13 is not expected to have a material impact on the Company's financial position or results of operations. ASC Update No. 2018-15 In August 2018, the FASB issued ASC Update No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Topic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The update is effective for annual periods beginning on or after December 15, 2019. Early adoption of the amendments in this update is permitted, including adoption in any interim period, for all entities. The purpose of Update No. 2018-15 is to provide a new guideline to the accounting of a customer of a cloud computing arrangement hosted by a vendor when the customer incurs costs associated with the implementation, set-up, and other upfront costs. Specifically, customers will follow the same criteria found in an arrangement with a software license when they capitalize the implementation costs. The new guidance also affects the classification of the capitalized implementation costs and related amortization expense found in a company's balance sheet, income statement, and cash flow statement, and the update also requires additional quantitative and qualitative disclosures. Update No. 2018-15 is not expected to have a material impact on the Company's financial position or results of operations. ASC Update No. 2018-18 In November 2018, the FASB issued ASC Update No. 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606 . This update is effective for public business entities for fiscal years beginning after December 15, 2019, and the interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period, for public business entities for periods for which financial statements have not yet been issued. The purpose of Update No. 2018-18 is to help make clarifications on the interactions between Topic 808, Collaborative Arrangement, and Topic 606, Revenue from Contracts with Customers. Update No. 2018-18 is not expected to have a material impact on the Company's financial position or results of operation. There are no other recent accounting pronouncements issued by the FASB that are expected to have a material impact on the Company's financial statements. |
Fair Value Measurement | ASC Topic 820, Fair Value Measurements and Disclosures (ASC 820), provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company’s Level 1 assets are investments in money market mutual funds. Level 2: Quoted prices for similar assets or liabilities in active markets; or observable prices that are based on observable market data, based on directly or indirectly market-corroborated inputs. The Company’s Level 2 liabilities are interest rate swaps. Level 3: Unobservable inputs that are supported by little or no market activity, and are developed based on the best information available given the circumstances. The Company has no Level 3 assets. Assets and liabilities measured at fair value are based on the valuation techniques identified in the table below. The valuation techniques are: (a) Market approach—prices and other relevant information generated by market transactions involving identical or comparable assets. (b) The valuations of the interest rate swaps intended to mitigate the Company’s interest rate risk are determined with the assistance of a third-party financial institution using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each instrument. This analysis utilizes observable market-based inputs, including interest rate curves and interest rate volatility, and reflects the contractual terms of these instruments, including the period to maturity, as of April 1, 2019. |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Marketable Securities [Abstract] | |
Marketable Securities | Marketable securities as of September 30, 2019 and December 31, 2018 consisted of the following: September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Money market mutual funds $ 46,325 $ — $ — $ 46,325 Total marketable securities designated as available-for-sale $ 46,325 $ — $ — $ 46,325 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Money market mutual funds $ 25 $ — $ — $ 25 Total marketable securities designated as available-for-sale $ 25 $ — $ — $ 25 |
Amortized Costs and Fair Value of Marketable Securities | The amortized costs and fair value of marketable securities as of September 30, 2019 and December 31, 2018 are shown below by effective maturity. Effective maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. September 30, 2019 Amortized Cost Fair Value Due in less than one year $ — $ — December 31, 2018 Amortized Cost Fair Value Due in less than one year $ — $ — |
Stockholder's Equity (Tables)
Stockholder's Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of share-based payment award, stock options, valuation assumptions | The weighted average assumptions utilized to determine the fair value of options granted during the nine months ended September 30, 2019 and 2018 were as follows: Nine Months Ended September 30, 2019 2018 Risk-free interest rate 1.91 % 2.81 % Expected volatility 36.94 % 36.60 % Expected life (in years) 4.27 4.29 Dividend yield 0 % 0 % |
Schedule of share-based compensation, activity | The following table presents stock-based compensation expense, including expense for the ESPP, in the Company's consolidated statements of operations for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Cost of product sales $ 69 $ 40 $ 171 $ 122 Research and development 221 177 589 496 Sales, marketing and support 226 138 620 485 General and administrative 596 505 1,639 1,349 $ 1,112 $ 860 $ 3,019 $ 2,452 |
Schedule of accumulated other comprehensive income (loss) | The balances for the three months ended September 30, 2019 and 2018 are as follows: Foreign Currency Translation Unrealized Gain (Loss) on Available for Sale Marketable Securities Interest Rate Swaps Total Accumulated Other Comprehensive Loss Balance, June 30, 2019 $ (3,489 ) $ — $ — $ (3,489 ) Other comprehensive loss before reclassifications (1,109 ) — — (1,109 ) Reclassified from AOCI — — — — Net other comprehensive loss, September 30, 2019 (1,109 ) — — (1,109 ) Balance, September 30, 2019 $ (4,598 ) $ — $ — $ (4,598 ) Foreign Currency Translation Unrealized Gain (Loss) on Available for Sale Marketable Securities Interest Rate Swaps Total Accumulated Other Comprehensive Loss Balance, June 30, 2018 $ (12,669 ) $ — $ (32 ) $ (12,701 ) Other comprehensive loss before reclassifications (763 ) — — (763 ) Reclassified from AOCI — — 12 12 Net other comprehensive (loss) income, September 30, 2018 (763 ) — 12 (751 ) Balance, September 30, 2018 $ (13,432 ) $ — $ (20 ) $ (13,452 ) The balances for the nine months ended September 30, 2019 and 2018 are as follows: Foreign Currency Translation Unrealized Gain (Loss) on Available for Sale Marketable Securities Interest Rate Swaps Total Accumulated Other Comprehensive Loss Balance, December 31, 2018 $ (14,720 ) $ — $ (11 ) $ (14,731 ) Other comprehensive (loss) income before reclassifications (1,361 ) — 3 (1,358 ) Reclassified from AOCI 11,483 — 8 11,491 Net other comprehensive income, September 30, 2019 10,122 — 11 10,133 Balance, September 30, 2019 $ (4,598 ) $ — $ — $ (4,598 ) Foreign Currency Translation Unrealized (Loss) Gain on Available for Sale Marketable Securities Interest Rate Swaps Total Accumulated Other Comprehensive Loss Balance, December 31, 2017 $ (11,247 ) $ (1 ) $ (69 ) $ (11,317 ) Other comprehensive (loss) income before reclassifications (2,185 ) 1 11 (2,173 ) Reclassified from AOCI — — 38 38 Net other comprehensive (loss) income, September 30, 2018 (2,185 ) 1 49 (2,135 ) Balance, September 30, 2018 $ (13,432 ) $ — $ (20 ) $ (13,452 ) |
Net Loss per Common Share (Tabl
Net Loss per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of basic and diluted weighted average common shares outstanding | A reconciliation of the basic and diluted weighted average common shares outstanding for net loss from continuing operations is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Weighted average common shares outstanding—basic 17,521 17,188 17,429 17,025 Dilutive common shares issuable in connection with stock plans — — — — Weighted average common shares outstanding—diluted 17,521 17,188 17,429 17,025 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Components of inventories | Components of inventories consist of the following: September 30, December 31, Raw materials $ 10,225 $ 13,698 Work in process 3,740 2,489 Finished goods 11,352 6,755 $ 25,317 $ 22,942 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment, net, as of September 30, 2019 and December 31, 2018 consist of the following: September 30, December 31, Land $ 3,828 $ 3,828 Building and improvements 24,159 24,060 Leasehold improvements 493 478 Machinery and equipment 17,797 17,239 Revenue-generating assets 44,699 38,066 Office and computer equipment 13,444 12,681 Motor vehicles 31 31 104,451 96,383 Less accumulated depreciation (51,790 ) (45,750 ) $ 52,661 $ 50,633 |
Product Warranty (Tables)
Product Warranty (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Product Warranties Disclosures [Abstract] | |
Summary of product warranty activity | The following table summarizes product warranty activity during 2019 and 2018 : Nine Months Ended September 30, 2019 2018 Beginning balance $ 1,916 $ 2,074 Charges to expense 1,478 1,592 Costs incurred (1,106 ) (1,634 ) Ending balance $ 2,288 $ 2,032 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consisted of the following: September 30, December 31, 2018 term note $ — $ 21,938 2018 revolver — 5,000 Mortgage loan — 2,597 Total long-term debt — 29,535 Less debt issuance costs for 2018 term note (a) — 170 Total long-term debt less debt issuance costs — 29,365 Less amounts classified as current — 9,928 Long-term debt, excluding current portion $ — $ 19,437 (a)- As of December 31, 2018, debt issuance costs classified as current and long-term are $60 and $110 , respectively. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of operations by geographic segment | Net sales and operating (loss) income for the Company's reporting segments and the Company's loss from continuing operations before income tax (benefit) expense for the three and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net sales: Mobile connectivity $ 31,642 $ 29,220 $ 92,025 $ 86,277 Inertial navigation 7,669 10,092 23,392 27,072 Consolidated net sales $ 39,311 $ 39,312 $ 115,417 $ 113,349 Operating (loss) income: Mobile connectivity $ (267 ) $ 506 $ (4,075 ) $ 682 Inertial navigation (171 ) 1,920 24 3,818 Subtotal (438 ) 2,426 (4,051 ) 4,500 Unallocated, net (4,420 ) (4,283 ) (13,720 ) (12,769 ) Loss from operations (4,858 ) (1,857 ) (17,771 ) (8,269 ) Net interest and other income (expense) 1,058 (66 ) 1,532 (372 ) Loss from continuing operations before income tax (benefit) expense $ (3,800 ) $ (1,923 ) $ (16,239 ) $ (8,641 ) Depreciation expense and amortization expense for the Company's segments are presented in the following table for the periods presented: Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Depreciation expense: Mobile connectivity $ 1,824 $ 1,367 $ 5,163 $ 3,848 Inertial navigation 280 260 874 766 Unallocated 142 133 416 402 Total consolidated depreciation expense $ 2,246 $ 1,760 $ 6,453 $ 5,016 Amortization expense: Mobile connectivity $ 237 $ 246 $ 732 $ 764 Inertial navigation — — — — Unallocated — — — — Total consolidated amortization expense $ 237 $ 246 $ 732 $ 764 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on recurring basis | The following tables present financial assets and liabilities at September 30, 2019 and December 31, 2018 for which the Company measures fair value on a recurring basis, by level, within the fair value hierarchy: September 30, 2019 Total Level 1 Level 2 Level 3 Valuation Technique Assets Money market mutual funds $ 46,325 $ 46,325 $ — $ — (a) December 31, 2018 Total Level 1 Level 2 Level 3 Valuation Technique Assets Money market mutual funds $ 25 $ 25 $ — $ — (a) Liabilities Interest rate swaps $ 11 $ — $ 11 $ — (b) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table sets forth the changes in the carrying amount of goodwill for the nine months ended September 30, 2019 : Amounts Balance at December 31, 2018 $ 15,031 Foreign currency translation adjustment (364 ) Balance at September 30, 2019 $ 14,667 |
Schedule of finite-lived intangible assets | Acquired intangible assets are subject to amortization. The following table summarizes acquired intangible assets at September 30, 2019 and December 31, 2018 , respectively: Gross Carrying Amount Accumulated Amortization Net Carrying Value September 30, 2019 Subscriber relationships $ 7,667 $ 5,050 $ 2,617 Distribution rights 4,155 1,932 2,223 Internally developed software 446 446 — Proprietary content 153 153 — Intellectual property 2,284 2,284 — $ 14,705 $ 9,865 $ 4,840 December 31, 2018 Subscriber relationships $ 7,678 $ 4,519 $ 3,159 Distribution rights 4,233 1,731 2,502 Internally developed software 446 446 — Proprietary content 153 153 — Intellectual property 2,284 2,284 — $ 14,794 $ 9,133 $ 5,661 The changes in the carrying amount of intangible assets during the nine months ended September 30, 2019 are as follows: Amounts Balance at December 31, 2018 $ 5,661 Amortization expense (732 ) Intangible assets acquired in asset acquisition 71 Foreign currency translation adjustment (160 ) Balance at September 30, 2019 $ 4,840 As of September 30, 2019 , the total weighted average remaining useful lives of the definite-lived intangible assets was 4.7 years and the weighted average remaining useful lives by the definite-lived intangible asset category are as follows: Intangible Asset Weighted Average Remaining Useful Life in Years Subscriber relationships 3.7 Distribution rights 8.6 |
Acquired intangible assets | Amortization expense related to intangible assets for the three and nine months ended September 30, 2019 and 2018 was as follows: Three Months Ended Nine Months Ended September 30, September 30, Expense Category 2019 2018 2019 2018 General and administrative expense $ 237 $ 246 $ 732 $ 764 |
Schedule of expected amortization expense | Estimated future amortization expense remaining at September 30, 2019 for intangible assets acquired is as follows: Remainder of 2019 $ 237 2020 947 2021 947 2022 947 2023 524 Thereafter 1,238 Total future amortization expense $ 4,840 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (ASC 606) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Financial Statement Line Items as Filed and as Adjusted | The following table reflects these financial statement line items as of March 31, 2019 and June 30, 2019, as reported and as adjusted: At March 31, 2019 At June 30, 2019 As reported As adjusted As reported As adjusted Current contract assets $ 3,678 $ 1,439 $ 3,834 $ 1,655 Non-current contract assets 7,342 3,912 7,577 3,747 Current contract liabilities 12,211 9,252 8,119 5,153 Non-current contract liabilities 9,634 5,263 10,056 5,198 Non-current deferred tax asset 1,747 1,692 868 820 (Accumulated deficit) retained earnings (21,576 ) (19,971 ) 25,600 27,365 The following table reflects these financial statement line items as of and for the three months ended March 31, 2019 and June 30, 2019, as reported and as adjusted (in thousands): Three Months Ended Three Months Ended March 31, 2019 June 30, 2019 As reported As adjusted As reported As adjusted Product sales $ 12,874 $ 13,215 $ 14,694 $ 15,189 Cost of product sales 7,853 8,284 12,308 12,649 Net loss (6,179 ) (6,254 ) (3,454 ) (3,293 ) |
Net Sales from Contracts with Customers | The following table summarizes net sales from contracts with customers for the three and nine months ended September 30, 2019 : Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Mobile connectivity product, transferred at point in time $ 7,540 $ 6,297 $ 22,536 $ 19,698 Mobile connectivity product, transferred over time (a) 537 1,259 1,507 3,881 Mobile connectivity service 23,565 21,664 67,982 62,698 Inertial navigation product 6,731 8,811 19,169 22,942 Inertial navigation service 938 1,281 4,223 4,130 Total net sales $ 39,311 $ 39,312 $ 115,417 $ 113,349 a- Reflects the correction discussed above. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Schedule of interest rate derivatives designated as cash flow hedges of interest rate risk | As of December 31, 2018 , the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: Interest Rate Derivatives Notional (in thousands) Asset (Liability) Effective Date Maturity Date Index Strike Rate Interest rate swap $ 1,299 $ (5 ) April 1, 2010 April 1, 2019 1-month LIBOR 5.91 % Interest rate swap $ 1,299 $ (6 ) April 1, 2010 April 1, 2019 1-month LIBOR 6.07 % |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Future minimum lease payments under operating leases | The future minimum lease payments under our operating leases as of September 30, 2019 are: Remainder of 2019 $ 1,265 2020 2,958 2021 1,265 2022 1,183 2023 376 2024 and thereafter 529 Total minimum lease payments $ 7,576 Less amount representing interest $ (604 ) Present value of net minimum operating lease payments $ 6,972 Less current installments of obligation under current-operating lease liabilities $ 3,584 Obligations under long-term operating lease liabilities, excluding current installments $ 3,388 Weighted-average remaining lease term - operating leases (years) 2.89 Weighted-average discount rate - operating leases 5.50 % |
Future minimum lease payments under finance leases | The future minimum lease payments under this financing lease as of September 30, 2019 are: Remainder of 2019 $ 156 2020 624 2021 624 2022 624 2023 45 2024 and thereafter — Total minimum lease payments $ 2,073 Less amount representing interest $ (23 ) Present value of net minimum financing lease payments $ 2,050 Less current installments of obligation under accrued other $ 612 Obligations under other long-term liabilities, excluding current installments $ 1,438 Weighted-average remaining lease term - finance leases (years) 3.42 Weighted-average discount rate - finance leases 1.53 % |
Sales-type lease, future undiscounted cash flows | The future undiscounted cash flows from these leases as of September 30, 2019 are: Remainder of 2019 $ 1,550 2020 3,815 2021 2,783 2022 1,661 2023 1,059 2024 261 Total undiscounted cash flows $ 11,129 Present value of lease payments $ 9,832 Difference between undiscounted cash flows and discounted cash flows $ 1,297 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The following table presents a reconciliation of the carrying amounts of major classes of assets and liabilities of the discontinued operations to the amounts presented separately in the Company's consolidated balance sheet: December 31, 2018 Cash and cash equivalents $ 2,838 Accounts receivable, net 1,071 Prepaid expenses and other current assets 962 Current assets held for sale $ 4,871 Property and equipment, net 2,615 Intangible assets, net 4,857 Goodwill 17,182 Other non-current assets 1,252 Non-current assets held for sale $ 25,906 Accounts payable 991 Accrued compensation and employee-related expenses 220 Accrued other 1,362 Contract liabilities 1,546 Liability for uncertain tax positions 485 Current liabilities held for sale $ 4,604 Non-current deferred income tax liability 813 Non-current liabilities held for sale $ 813 Net assets held for sale $ 25,360 The following table presents a reconciliation of the major financial line items constituting the results for discontinued operations to the net income from discontinued operations, net of tax, presented separately in the Company's consolidated statements of operations and comprehensive income (loss): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Sales: Service sales $ — $ 4,205 $ 5,769 $ 13,661 Costs, expenses and other expense, net: Costs of service sales — 1,243 1,807 3,956 Sales, marketing and support — 1,075 1,606 3,324 General and administrative — 950 1,619 3,399 Other expense, net — (27 ) (23 ) (83 ) Income from discontinued operations before tax expense — 910 714 2,899 (Loss) gain on sale of discontinued operations before tax expense (819 ) — 53,701 — Total (loss) income from discontinued operations before tax expense $ (819 ) $ 910 $ 54,415 $ 2,899 Income tax expense on discontinued operations 217 153 4,578 530 (Loss) income from discontinued operations, net of taxes $ (1,036 ) $ 757 $ 49,837 $ 2,369 Net (loss) income from discontinued operations per common share Basic and diluted $ (0.06 ) $ 0.04 $ 2.86 $ 0.14 Weighted average number of common shares outstanding: Basic and diluted 17,521 17,188 17,429 17,025 The following table presents supplemental cash flow information of the discontinued operations: Nine Months Ended September 30, 2019 2018 Cash (used in) provided by operating activities—discontinued operations $ (1,838 ) $ 6,248 Cash provided by (used in) investing activities—discontinued operations $ 87,986 $ (1,311 ) |
Description of Business Narrati
Description of Business Narrative (Details) - USD ($) $ in Thousands | May 13, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Jun. 04, 2019 |
Discontinued Operations, Disposed of by Sale | Videotel | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash proceeds | $ 89,387 | |||
Accrued estimated working capital adjustment liability | $ 1,100 | $ 300 | ||
Increase in working capital adjustment liability | $ 800 | |||
Oakley | Bridge Loan | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Interest rate | 5.00% | 12.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Narrative (Details) $ / shares in Units, shares in Thousands, $ in Thousands | Feb. 28, 2018USD ($)$ / sharesshares | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Mar. 31, 2018hub |
Accounting Policies [Line Items] | ||||
Treasury stock (in shares) | shares | 377 | |||
Treasury stock (in USD per share) | $ / shares | $ 11.95 | |||
Sale of treasury stock | $ | $ 4,500 | $ 0 | $ 4,500 | |
Satellite HUBS For HTS Network | ||||
Accounting Policies [Line Items] | ||||
Finance lease term | 5 years | |||
Number of satellite hubs leased | hub | 3 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 46,325 | $ 25 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 46,325 | 25 |
Money market mutual funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 46,325 | 25 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 46,325 | $ 25 |
Marketable Securities Maturity
Marketable Securities Maturity Schedule (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Marketable Securities [Abstract] | ||
Amortized Cost | $ 0 | $ 0 |
Fair Value | $ 0 | $ 0 |
Marketable Securities Narrative
Marketable Securities Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Marketable Securities [Abstract] | ||||
Interest income, money market deposits | $ 267 | $ 2 | $ 299 | $ 17 |
Stockholder's Equity Narrative
Stockholder's Equity Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment | $ 1,112 | $ 860 | $ 3,019 | $ 2,452 |
Stock options exercised (in shares) | 4,000 | 18,000 | ||
Stock options granted (in shares) | 20,000 | 630,000 | ||
Stock options expired (in shares) | 28,000 | 127,000 | ||
Stock options exercised, delivered to company (in shares) | $ 144 | |||
Stock options granted, weighted average price (in USD per share) | $ 3.09 | |||
Stock options outstanding (in shares) | 1,761,000 | 1,761,000 | ||
Stock options outstanding, weighted average exercise price (in USD per share) | $ 9.92 | $ 9.92 | ||
Stock options exercisable (in shares) | 542,000 | 542,000 | ||
Exercisable stock options, weighted average exercise price (in USD per share) | $ 10.28 | $ 10.28 | ||
Restricted stock expired (in shares) | 0 | 0 | ||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment | $ 1,093 | 849 | $ 2,970 | 2,417 |
Unrecognized compensation expense | 3,351 | $ 3,351 | ||
Weighted-average period of recognition | 2 years 10 months 17 days | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 4,163 | $ 4,163 | ||
Weighted-average period of recognition | 2 years 3 months 12 days | |||
Restricted stock (in shares) | 45,000 | 322,000 | ||
Restricted stock, weighted average price (in USD per share) | $ 8.90 | $ 9.66 | ||
Restricted stock award, forfeitures (in shares) | 11,000 | 31,000 | ||
Restricted stock vested (in shares) | 30,000 | 287,000 | ||
Restricted stock outstanding (in shares) | 531,000 | 531,000 | ||
Performance-Based or Market-Based Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock outstanding (in shares) | 0 | 0 | ||
Unvested outstanding options (in shares) | 0 | 0 | ||
ESPP Plan | Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment | $ 19 | $ 11 | $ 49 | $ 35 |
Percentage of Company's common stock share price | 85.00% | 85.00% | ||
Stock options issued ESPP (in shares) | 22,000 | 17,000 | 45,000 | 17,000 |
Stockholder's Equity Valuation
Stockholder's Equity Valuation Assumptions (Details) - Stock Options | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.91% | 2.81% |
Expected volatility | 36.94% | 36.60% |
Expected life | 4 years 3 months 8 days | 4 years 3 months 14 days |
Dividend yield | 0.00% | 0.00% |
Stockholder's Equity Schedule o
Stockholder's Equity Schedule of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment | $ 1,112 | $ 860 | $ 3,019 | $ 2,452 |
Cost of product sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment | 69 | 40 | 171 | 122 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment | 221 | 177 | 589 | 496 |
Sales, marketing and support | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment | 226 | 138 | 620 | 485 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based payment | $ 596 | $ 505 | $ 1,639 | $ 1,349 |
Stockholder's Equity Schedule_2
Stockholder's Equity Schedule of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
AOCI Attributable to Parent [Roll Forward] | |||||
Beginning balance | $ 155,761 | $ 102,431 | $ 99,515 | $ 105,665 | |
Net other comprehensive (loss) income | [1] | (1,109) | (751) | 10,133 | (2,135) |
Ending balance | 151,667 | 101,730 | 151,667 | 101,730 | |
Foreign Currency Translation | |||||
AOCI Attributable to Parent [Roll Forward] | |||||
Beginning balance | (3,489) | (12,669) | (14,720) | (11,247) | |
Other comprehensive loss before reclassifications | (1,109) | (763) | (1,361) | (2,185) | |
Reclassified from AOCI | 0 | 0 | 11,483 | 0 | |
Net other comprehensive (loss) income | (1,109) | (763) | 10,122 | (2,185) | |
Ending balance | (4,598) | (13,432) | (4,598) | (13,432) | |
Unrealized Gain (Loss) on Available for Sale Marketable Securities | |||||
AOCI Attributable to Parent [Roll Forward] | |||||
Beginning balance | 0 | 0 | 0 | (1) | |
Other comprehensive loss before reclassifications | 0 | 0 | 0 | 1 | |
Reclassified from AOCI | 0 | 0 | 0 | 0 | |
Net other comprehensive (loss) income | 0 | 0 | 0 | 1 | |
Ending balance | 0 | 0 | 0 | 0 | |
Interest Rate Swaps | |||||
AOCI Attributable to Parent [Roll Forward] | |||||
Beginning balance | 0 | (32) | (11) | (69) | |
Other comprehensive loss before reclassifications | 0 | 0 | 3 | 11 | |
Reclassified from AOCI | 0 | 12 | 8 | 38 | |
Net other comprehensive (loss) income | 0 | 12 | 11 | 49 | |
Ending balance | 0 | (20) | 0 | (20) | |
Total Accumulated Other Comprehensive Loss | |||||
AOCI Attributable to Parent [Roll Forward] | |||||
Beginning balance | (3,489) | (12,701) | (14,731) | (11,317) | |
Other comprehensive loss before reclassifications | (1,109) | (763) | (1,358) | (2,173) | |
Reclassified from AOCI | 0 | 12 | 11,491 | 38 | |
Net other comprehensive (loss) income | (1,109) | (751) | 10,133 | (2,135) | |
Ending balance | $ (4,598) | $ (13,452) | $ (4,598) | $ (13,452) | |
[1] | Tax impact was nominal for all periods. |
Net Loss per Common Share Narra
Net Loss per Common Share Narrative (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,565 | 932 | 1,221 | 739 |
Net Loss per Common Share (Deta
Net Loss per Common Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule of reconciliation of basic and diluted weighted average common shares outstanding | ||||
Weighted average common shares outstanding—basic (in shares) | 17,521 | 17,188 | 17,429 | 17,025 |
Dilutive common shares issuable in connection with stock plans (in shares) | 0 | 0 | 0 | 0 |
Weighted average common shares outstanding—diluted (in shares) | 17,521 | 17,188 | 17,429 | 17,025 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Components of inventories | |||
Raw materials | $ 10,225 | $ 13,698 | |
Work in process | 3,740 | 2,489 | |
Finished goods | 11,352 | 6,755 | |
Inventories, net | $ 25,317 | $ 22,942 | |
Inventory reserve | $ 2,100 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 104,451 | $ 96,383 |
Less accumulated depreciation | (51,790) | (45,750) |
Property and equipment, less accumulated depreciation | 52,661 | 50,633 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,828 | 3,828 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 24,159 | 24,060 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 493 | 478 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 17,797 | 17,239 |
Revenue-generating assets | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 44,699 | 38,066 |
Office and computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 13,444 | 12,681 |
Motor vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 31 | $ 31 |
Property and Equipment Narrativ
Property and Equipment Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 2,246 | $ 1,760 | $ 6,453 | $ 5,016 |
Product Warranty Narrative (Det
Product Warranty Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Product Warranty (Textual) [Abstract] | ||
Accrued product warranty costs | $ 2,288 | $ 1,916 |
Minimum | ||
Product Warranty (Textual) [Abstract] | ||
Limited warranty period on product | 1 year | |
Maximum | ||
Product Warranty (Textual) [Abstract] | ||
Limited warranty period on product | 2 years |
Product Warranty (Details)
Product Warranty (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Summary of product warranty activity | ||
Beginning balance | $ 1,916 | $ 2,074 |
Charges to expense | 1,478 | 1,592 |
Costs incurred | (1,106) | (1,634) |
Ending balance | $ 2,288 | $ 2,032 |
Debt Long-term Debt (Details)
Debt Long-term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 0 | $ 29,535 |
Debt issuance costs | 0 | 170 |
Total long-term debt less debt issuance costs | 0 | 29,365 |
Current portion of long-term debt | 0 | 9,928 |
Long-term debt, excluding current portion | 0 | 19,437 |
Debt issuance costs, current | 60 | |
Debt issuance costs, noncurrent | 110 | |
Mortgages | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 2,597 |
Term Loan | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 21,938 |
Line of Credit | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 0 | $ 5,000 |
Debt Narrative (Details)
Debt Narrative (Details) | Jun. 27, 2019USD ($) | Oct. 30, 2018USD ($)covenant | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2020 | Dec. 31, 2019USD ($) | Apr. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Apr. 30, 2010contract | Apr. 01, 2010Contract |
Debt Instrument [Line Items] | ||||||||||
Repayment of principal in connection with amendment | $ 17,225,000 | |||||||||
Long-term debt | $ 0 | $ 29,365,000 | ||||||||
Repayments of long-term debt | 2,597,000 | $ 136,000 | ||||||||
Repayments of line of credit borrowings | $ 15,000,000 | $ 0 | ||||||||
Number of financial covenants | covenant | 2 | |||||||||
Interest Rate Swap | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of interest rate swap agreements | 2 | 2 | ||||||||
2018 Term Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayments of long-term debt | $ 21,375,000 | |||||||||
Line of Credit | Senior Credit Facility | 2018 Term Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Current borrowing capacity | $ 42,500,000 | |||||||||
Mandatory prepayment provision, net cash proceeds from dispositions not reinvested | 100.00% | |||||||||
Line of Credit | Senior Credit Facility | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Covenant compliance, maximum consolidated leverage ratio | 2.75 | |||||||||
Covenant compliance, maximum consolidated fixed charge coverage ratio | 1.25 | |||||||||
Line of Credit | Senior Credit Facility | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Current borrowing capacity | 20,000,000 | $ 20,000,000 | ||||||||
Long-term line of credit | 5,000,000 | |||||||||
Long-term debt | $ 0 | |||||||||
Remaining borrowing capacity | $ 20,000,000 | |||||||||
Repayments of line of credit borrowings | $ 13,000,000 | |||||||||
Line of Credit | Senior Credit Facility | Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Current borrowing capacity | $ 22,500,000 | |||||||||
Security interest pledged | 65.00% | |||||||||
Mandatory prepayment provision, net cash proceeds from stated equity issuance | 50.00% | |||||||||
Mandatory prepayment provision, net cash proceeds from receipts greater than 250 thousand dollars | 100.00% | |||||||||
Mortgages | Mortgage Loan on Headquarters Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Periodic payment terms, balloon payment to be paid | $ 2,551,000 | |||||||||
Mortgages | Mortgage Loan on Headquarters Facility | Period One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Strike Rate | 5.91% | 5.91% | ||||||||
Mortgages | Mortgage Loan on Headquarters Facility | Period Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Strike Rate | 6.07% | 6.07% | ||||||||
Forecast | Line of Credit | Senior Credit Facility | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Covenant compliance, maximum consolidated leverage ratio | 2 | 2.50 | ||||||||
Forecast | Line of Credit | Senior Credit Facility | Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Current borrowing capacity | $ 15,000,000 |
Segment Reporting Narrative (De
Segment Reporting Narrative (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Mobile connectivity | Mobile Comm Product Sales | ||||
Segment Reporting Information [Line Items] | ||||
Percent of consolidated net sales | 21.00% | 19.00% | 21.00% | |
Mobile connectivity | VSAT Airtime Service Sales | ||||
Segment Reporting Information [Line Items] | ||||
Percent of consolidated net sales | 51.00% | 46.00% | 50.00% | 46.00% |
Inertial navigation | FOG System Sales | ||||
Segment Reporting Information [Line Items] | ||||
Percent of consolidated net sales | 16.00% | 21.00% | 15.00% | 18.00% |
Non-US | ||||
Segment Reporting Information [Line Items] | ||||
Percent of consolidated net sales | 59.00% | 55.00% | 53.00% | 54.00% |
Singapore | ||||
Segment Reporting Information [Line Items] | ||||
Percent of consolidated net sales | 10.00% |
Segment Reporting Net Sales and
Segment Reporting Net Sales and Operating Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 39,311 | $ 39,312 | $ 115,417 | $ 113,349 |
Loss from operations | (4,858) | (1,857) | (17,771) | (8,269) |
Net interest and other income (expense) | 1,058 | (66) | 1,532 | (372) |
Loss from continuing operations before income tax (benefit) expense | (3,800) | (1,923) | (16,239) | (8,641) |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Loss from operations | (438) | 2,426 | (4,051) | 4,500 |
Operating Segments | Mobile connectivity | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 31,642 | 29,220 | 92,025 | 86,277 |
Loss from operations | (267) | 506 | (4,075) | 682 |
Operating Segments | Inertial navigation | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 7,669 | 10,092 | 23,392 | 27,072 |
Loss from operations | (171) | 1,920 | 24 | 3,818 |
Unallocated | ||||
Segment Reporting Information [Line Items] | ||||
Loss from operations | $ (4,420) | $ (4,283) | $ (13,720) | $ (12,769) |
Segment Reporting Deprecation a
Segment Reporting Deprecation and Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Depreciation | $ 2,246 | $ 1,760 | $ 6,453 | $ 5,016 |
Amortization expense | 237 | 246 | 732 | 764 |
Operating Segments | Mobile connectivity | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation | 1,824 | 1,367 | 5,163 | 3,848 |
Amortization expense | 237 | 246 | 732 | 764 |
Operating Segments | Inertial navigation | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation | 280 | 260 | 874 | 766 |
Amortization expense | 0 | 0 | 0 | 0 |
Unallocated | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation | 142 | 133 | 416 | 402 |
Amortization expense | $ 0 | $ 0 | $ 0 | $ 0 |
Share Buyback Program Narrative
Share Buyback Program Narrative (Details) shares in Thousands, $ in Thousands | Oct. 04, 2019USD ($)shares | Sep. 30, 2019Programshares | Nov. 26, 2008shares |
Subsequent Event [Line Items] | |||
Common stock available for repurchase (in shares) | 1,000 | ||
Common stock remaining available for repurchase (in shares) | 341 | ||
Number of other repurchase programs outstanding | Program | 0 | ||
Number of stock repurchase programs other expired | Program | 0 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Common stock available for repurchase (in shares) | 1,000 | ||
Share Repurchase Program, Term | 1 year | ||
Stock repurchase program | $ | $ 5,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $ 11 | |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 11 | |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | |
Money market mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 46,325 | 25 |
Money market mutual funds | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 46,325 | 25 |
Money market mutual funds | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Money market mutual funds | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 0 | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets Goodwill Changes in Carrying Amount (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 15,031 |
Foreign currency translation adjustment | (364) |
Ending balance | $ 14,667 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets Intangible Assets Changes in Carrying Amount (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Finite-lived Intangible Assets [Roll Forward] | |
Beginning balance | $ 5,661 |
Amortization expense | (732) |
Intangible assets acquired in asset acquisition | 71 |
Foreign currency translation adjustment | (160) |
Ending balance | $ 4,840 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Jan. 31, 2017 | Sep. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets acquired | $ 71 | |||
Intangible assets, gross (excluding goodwill) | $ 4,840 | $ 5,661 | ||
Intellectual property | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, useful lives | 7 years | |||
Subscriber relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average remaining useful lives | 3 years 8 months 7 days | |||
Distribution rights | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average remaining useful lives | 8 years 6 months 31 days | |||
Finite-lived intangible assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average remaining useful lives | 4 years 8 months 30 days | |||
Headland Media Limited | Subscriber relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, useful lives | 10 years | |||
Headland Media Limited | Distribution rights | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, useful lives | 15 years | |||
Q1 2017 Acquisition | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Contingent consideration, value, high | $ 114 | |||
Intangible assets, gross (excluding goodwill) | $ 249 | |||
Contingent consideration | $ 71 | |||
Q1 2017 Acquisition | Subscriber relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, useful lives | 10 years | |||
Finite-lived intangible assets acquired | $ 100 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets Goodwill and Intangible Assets Assets subject to Amortization (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 14,705 | $ 14,794 |
Accumulated Amortization | 9,865 | 9,133 |
Net Carrying Value | 4,840 | 5,661 |
Subscriber relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 7,667 | 7,678 |
Accumulated Amortization | 5,050 | 4,519 |
Net Carrying Value | 2,617 | 3,159 |
Distribution rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,155 | 4,233 |
Accumulated Amortization | 1,932 | 1,731 |
Net Carrying Value | 2,223 | 2,502 |
Internally developed software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 446 | 446 |
Accumulated Amortization | 446 | 446 |
Net Carrying Value | 0 | 0 |
Proprietary content | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 153 | 153 |
Accumulated Amortization | 153 | 153 |
Net Carrying Value | 0 | 0 |
Intellectual property | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,284 | 2,284 |
Accumulated Amortization | 2,284 | 2,284 |
Net Carrying Value | $ 0 | $ 0 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets Goodwill and Intangible Assets Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 732 | |||
General and administrative | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 237 | $ 246 | $ 732 | $ 764 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets Intangible Asset Remaining Useful Life (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Subscriber relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average remaining useful lives | 3 years 8 months 7 days |
Distribution rights | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted average remaining useful lives | 8 years 6 months 31 days |
Goodwill and Intangible Asset_8
Goodwill and Intangible Assets Future Amortization Expense Remaining (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2019 | $ 237 |
2020 | 947 |
2021 | 947 |
2022 | 947 |
2023 | 524 |
Thereafter | 1,238 |
Total future amortization expense | $ 4,840 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (ASC 606) Financial Statement Line Items as Filed and as Adjusted Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Net (loss) income | $ (4,344) | $ (3,293) | $ (6,254) | $ (1,174) | $ 36,738 | $ (6,410) | ||
Product sales | 39,311 | 39,312 | 115,417 | 113,349 | ||||
Sales, marketing and support | 7,717 | 7,346 | 24,700 | 22,532 | ||||
Retained earnings (accumulated deficit) | 23,021 | 27,365 | (19,971) | 23,021 | $ (15,397) | |||
Current contract assets | (1,407) | (1,655) | (1,439) | (1,407) | (3,566) | |||
Non-current contract assets | (3,449) | (3,747) | (3,912) | (3,449) | (6,971) | |||
Current contract liabilities | (5,701) | (5,153) | (9,252) | (5,701) | (7,647) | |||
Non-current contract liabilities | (5,194) | (5,198) | (5,263) | (5,194) | (9,070) | |||
Non-current deferred income tax asset | (131) | (820) | (1,692) | (131) | $ (226) | |||
Product | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Product sales | 14,808 | 15,189 | 13,215 | 16,367 | 43,212 | 46,521 | ||
Cost of product sales | 10,823 | 12,649 | 8,284 | $ 9,767 | 31,756 | $ 28,784 | ||
Implementation of ASC 606 | Adjustment | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Net (loss) income | (336) | 161 | (75) | (250) | ||||
Sales, marketing and support | 20 | 15 | ||||||
Retained earnings (accumulated deficit) | $ 1,680 | |||||||
Current contract assets | 2,132 | |||||||
Non-current contract assets | 3,110 | |||||||
Current contract liabilities | 2,970 | |||||||
Non-current contract liabilities | 4,018 | |||||||
Non-current deferred income tax asset | $ 66 | |||||||
Implementation of ASC 606 | Product | Adjustment | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Product sales | 514 | 495 | 341 | 1,350 | ||||
Cost of product sales | $ 818 | $ 341 | $ 431 | $ 1,591 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (ASC 606) Schedule of Financial Statement Line Items as Filed and as Adjusted (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||||||
Product sales | $ 39,311 | $ 39,312 | $ 115,417 | $ 113,349 | |||
Net (loss) income | (4,344) | $ (3,293) | $ (6,254) | (1,174) | 36,738 | (6,410) | |
Statement of Financial Position [Abstract] | |||||||
Current contract assets | 1,407 | 1,655 | 1,439 | 1,407 | $ 3,566 | ||
Non-current contract assets | 3,449 | 3,747 | 3,912 | 3,449 | 6,971 | ||
Current contract liabilities | 5,701 | 5,153 | 9,252 | 5,701 | 7,647 | ||
Non-current contract liabilities | 5,194 | 5,198 | 5,263 | 5,194 | 9,070 | ||
Non-current deferred income tax asset | 131 | 820 | 1,692 | 131 | 226 | ||
(Accumulated deficit) retained earnings | 23,021 | 27,365 | (19,971) | 23,021 | $ (15,397) | ||
Product | |||||||
Income Statement [Abstract] | |||||||
Product sales | 14,808 | 15,189 | 13,215 | 16,367 | 43,212 | 46,521 | |
Cost of product sales | $ 10,823 | 12,649 | 8,284 | $ 9,767 | $ 31,756 | $ 28,784 | |
As reported | |||||||
Income Statement [Abstract] | |||||||
Net (loss) income | (3,454) | (6,179) | |||||
Statement of Financial Position [Abstract] | |||||||
Current contract assets | 3,834 | 3,678 | |||||
Non-current contract assets | 7,577 | 7,342 | |||||
Current contract liabilities | 8,119 | 12,211 | |||||
Non-current contract liabilities | 10,056 | 9,634 | |||||
Non-current deferred income tax asset | 868 | 1,747 | |||||
(Accumulated deficit) retained earnings | 25,600 | (21,576) | |||||
As reported | Product | |||||||
Income Statement [Abstract] | |||||||
Product sales | 14,694 | 12,874 | |||||
Cost of product sales | $ 12,308 | $ 7,853 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers (ASC 606) Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 39,311 | $ 39,312 | $ 115,417 | $ 113,349 |
Deferred revenue recognized | 453 | 1,117 | 1,360 | 3,525 |
Mobile connectivity product sales | Mobile connectivity | Transferred at point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 7,540 | 6,297 | 22,536 | 19,698 |
Mobile connectivity product sales | Mobile connectivity | Transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 537 | 1,259 | 1,507 | 3,881 |
Mobile connectivity service | Mobile connectivity | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 23,565 | 21,664 | 67,982 | 62,698 |
Inertial navigation product | Inertial navigation | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 6,731 | 8,811 | 19,169 | 22,942 |
Inertial navigation service | Inertial navigation | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 938 | $ 1,281 | $ 4,223 | $ 4,130 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities Narrative (Details) - Interest Rate Swap | Apr. 30, 2010contract | Apr. 01, 2010Contract |
Derivative Instruments and Hedging Activities (Textual) [Abstract] | ||
Number of interest rate swap agreements | 2 | 2 |
First Half of Mortgage | ||
Derivative Instruments and Hedging Activities (Textual) [Abstract] | ||
Strike Rate | 5.90% | |
Second Half of Mortgage | ||
Derivative Instruments and Hedging Activities (Textual) [Abstract] | ||
Strike Rate | 6.10% |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Apr. 30, 2010 | Apr. 01, 2010 | |
Period One | Mortgage Loan on Headquarters Facility | Mortgages | |||
Schedule of interest rate derivatives designated as cash flow hedges of interest rate risk | |||
Strike Rate | 5.91% | 5.91% | |
Period Two | Mortgage Loan on Headquarters Facility | Mortgages | |||
Schedule of interest rate derivatives designated as cash flow hedges of interest rate risk | |||
Strike Rate | 6.07% | 6.07% | |
Interest Rate Swap | First Half of Mortgage | |||
Schedule of interest rate derivatives designated as cash flow hedges of interest rate risk | |||
Notional | $ 1,299 | ||
Asset (Liability) | $ (5) | ||
Effective Date | Apr. 1, 2010 | ||
Maturity Date | Apr. 1, 2019 | ||
Strike Rate | 5.90% | ||
Interest Rate Swap | Second Half of Mortgage | |||
Schedule of interest rate derivatives designated as cash flow hedges of interest rate risk | |||
Notional | $ 1,299 | ||
Asset (Liability) | $ (6) | ||
Effective Date | Apr. 1, 2010 | ||
Maturity Date | Apr. 1, 2019 | ||
Strike Rate | 6.10% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 12.90% | (0.40%) | 19.30% | (1.60%) | |
Reserve for uncertain tax positions | $ 686 | $ 686 | $ 631 | ||
Decrease in unrecognized tax benefits is reasonably possible | $ 175 | $ 175 |
Leases Narrative (Details)
Leases Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2018hub | |
Lessee, Lease, Description [Line Items] | ||||||
Operating lease expense | $ 1,264 | $ 3,796 | ||||
Finance lease, gross cost | 104,451 | 104,451 | $ 96,383 | |||
Finance lease, accumulated depreciation | 51,790 | 51,790 | $ 45,750 | |||
Capital assets, depreciation expense | 110 | 329 | ||||
Capital assets, depreciation expense | $ 110 | $ 298 | ||||
Net investment in lease, current | 3,862 | 3,862 | ||||
Net investment in lease, noncurrent | 5,970 | 5,970 | ||||
Sales-type lease, interest income | 177 | 508 | ||||
Satellite HUBS For HTS Network | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Finance lease term | 5 years | |||||
Number of satellite hubs leased | hub | 3 | |||||
Assets Held Under Finance Leases | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Finance lease, gross cost | 3,068 | 3,068 | ||||
Finance lease, accumulated depreciation | $ 736 | $ 736 | ||||
Leased assets, useful life | 7 years | |||||
Minimum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Sales-type leases, term of contracts | 3 years | 3 years | ||||
Maximum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Sales-type leases, term of contracts | 5 years | 5 years |
Leases Future Minimum Operating
Leases Future Minimum Operating Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Remainder of 2019 | $ 1,265 | |
2020 | 2,958 | |
2021 | 1,265 | |
2022 | 1,183 | |
2023 | 376 | |
2024 and thereafter | 529 | |
Total minimum lease payments | 7,576 | |
Less amount representing interest | (604) | |
Present value of net minimum operating lease payments | 6,972 | |
Less current installments of obligation under current-operating lease liabilities | 3,584 | $ 0 |
Obligations under long-term operating lease liabilities, excluding current installments | $ 3,388 | $ 0 |
Weighted-average remaining lease term - operating leases | 2 years 10 months 22 days | |
Weighted-average discount rate - operating leases | 5.50% |
Future Minimum Finance Lease Pa
Future Minimum Finance Lease Payments (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2019 | $ 156 |
2020 | 624 |
2021 | 624 |
2022 | 624 |
2023 | 45 |
2024 and thereafter | 0 |
Total minimum lease payments | 2,073 |
Less amount representing interest | (23) |
Present value of net minimum financing lease payments | 2,050 |
Less current installments of obligation under accrued other | 612 |
Obligations under other long-term liabilities, excluding current installments | $ 1,438 |
Weighted-average remaining lease term - finance leases | 3 years 5 months 2 days |
Weighted-average discount rate - finance leases | 1.53% |
Leases Sales-type Lease Future
Leases Sales-type Lease Future Undiscounted Cash Flows (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2019 | $ 1,550 |
2020 | 3,815 |
2021 | 2,783 |
2022 | 1,661 |
2023 | 1,059 |
2024 | 261 |
Total undiscounted cash flows | 11,129 |
Present value of lease payments | 9,832 |
Difference between undiscounted cash flows and discounted cash flows | $ 1,297 |
Discontinued Operations Major C
Discontinued Operations Major Classes of Assets and Liabilities of the Discontinued Operation (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Current assets held for sale | $ 0 | $ 4,871 |
Non-current assets held for sale | 0 | 25,906 |
Current liabilities held for sale | 0 | 4,604 |
Non-current liabilities held for sale | $ 0 | 813 |
Discontinued Operations, Held for Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash and cash equivalents | 2,838 | |
Accounts receivable, net | 1,071 | |
Prepaid expenses and other current assets | 962 | |
Current assets held for sale | 4,871 | |
Property and equipment, net | 2,615 | |
Intangible assets, net | 4,857 | |
Goodwill | 17,182 | |
Other non-current assets | 1,252 | |
Non-current assets held for sale | 25,906 | |
Accounts payable | 991 | |
Accrued compensation and employee-related expenses | 220 | |
Accrued other | 1,362 | |
Contract liabilities | 1,546 | |
Liability for uncertain tax positions | 485 | |
Current liabilities held for sale | 4,604 | |
Non-current deferred income tax liability | 813 | |
Non-current liabilities held for sale | 813 | |
Net assets held for sale | $ 25,360 |
Discontinued Operations Results
Discontinued Operations Results for Discontinued Operations to the Net Income (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Costs, expenses and other expense, net: | ||||
(Loss) income from discontinued operations, net of taxes | $ (1,036) | $ 757 | $ 49,837 | $ 2,369 |
Net (loss) income from discontinued operations per common share | ||||
Basic and diluted (in USD per share) | $ (0.06) | $ 0.04 | $ 2.86 | $ 0.14 |
Weighted average number of common shares outstanding: | ||||
Basic and diluted (in shares) | 17,521 | 17,188 | 17,429 | 17,025 |
Discontinued Operations, Disposed of by Sale | ||||
Sales: | ||||
Service sales | $ 0 | $ 5,769 | ||
Costs, expenses and other expense, net: | ||||
Costs of service sales | 0 | 1,807 | ||
Sales, marketing and support | 0 | 1,606 | ||
General and administrative | 0 | 1,619 | ||
Other expense, net | 0 | (23) | ||
Income from discontinued operations before tax expense | 0 | 714 | ||
(Loss) gain on sale of discontinued operations before tax expense | (819) | 53,701 | ||
Total (loss) income from discontinued operations before tax expense | (819) | 54,415 | ||
Income tax expense on discontinued operations | 217 | 4,578 | ||
(Loss) income from discontinued operations, net of taxes | $ (1,036) | $ 49,837 | ||
Net (loss) income from discontinued operations per common share | ||||
Basic and diluted (in USD per share) | $ (0.06) | $ 2.86 | ||
Discontinued Operations, Held for Sale | ||||
Sales: | ||||
Service sales | $ 4,205 | $ 13,661 | ||
Costs, expenses and other expense, net: | ||||
Costs of service sales | 1,243 | 3,956 | ||
Sales, marketing and support | 1,075 | 3,324 | ||
General and administrative | 950 | 3,399 | ||
Other expense, net | (27) | (83) | ||
Income from discontinued operations before tax expense | 910 | 2,899 | ||
(Loss) gain on sale of discontinued operations before tax expense | 0 | 0 | ||
Total (loss) income from discontinued operations before tax expense | 910 | 2,899 | ||
Income tax expense on discontinued operations | 153 | 530 | ||
(Loss) income from discontinued operations, net of taxes | $ 757 | $ 2,369 | ||
Net (loss) income from discontinued operations per common share | ||||
Basic and diluted (in USD per share) | $ 0.04 | $ 0.14 |
Discontinued Operations Supplem
Discontinued Operations Supplemental Cash flow for Discontinued Operations (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Discontinued Operations, Held for Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash (used in) provided by operating activities—discontinued operations | $ 6,248 | |
Cash provided by (used in) investing activities—discontinued operations | $ (1,311) | |
Discontinued Operations, Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash (used in) provided by operating activities—discontinued operations | $ (1,838) | |
Cash provided by (used in) investing activities—discontinued operations | $ 87,986 |
Uncategorized Items - kvhi-2019
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (2,748,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (2,748,000) |