Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | ||
Jun. 30, 2014 | Aug. 01, 2014 | Aug. 01, 2014 | |
Voting Common Stock | Nonvoting Common Stock | ||
Document and Entity Information [Line Items] | ' | ' | ' |
Document Type | '10-Q | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q2 | ' | ' |
Trading Symbol | 'GSAT | ' | ' |
Entity Registrant Name | 'Globalstar, Inc. | ' | ' |
Entity Central Index Key | '0001366868 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding (shares) | ' | 780,209,938 | 209,008,656 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenue: | ' | ' | ' | ' |
Service revenues | $17,887 | $15,409 | $34,136 | $30,799 |
Subscriber equipment sales | 6,107 | 4,426 | 10,394 | 8,369 |
Total revenue | 23,994 | 19,835 | 44,530 | 39,168 |
Operating expenses: | ' | ' | ' | ' |
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) | 7,120 | 7,205 | 14,058 | 14,732 |
Cost of subscriber equipment sales | 4,332 | 3,587 | 7,404 | 6,527 |
Cost of subscriber equipment sales - reduction in the value of inventory | 7,317 | 0 | 7,317 | 0 |
Marketing, general, and administrative | 8,247 | 6,577 | 16,016 | 13,501 |
Depreciation, amortization, and accretion | 22,013 | 22,067 | 45,346 | 42,399 |
Total operating expenses | 49,029 | 39,436 | 90,141 | 77,159 |
Loss from operations | -25,035 | -19,601 | -45,611 | -37,991 |
Other income (expense): | ' | ' | ' | ' |
Loss on extinguishment of debt | -16,484 | -47,240 | -26,679 | -47,240 |
Loss on equity issuance | 0 | -13,969 | 0 | -13,969 |
Interest income and expense, net of amounts capitalized | -13,864 | -15,216 | -24,786 | -22,968 |
Derivative loss | -376,283 | -29,903 | -585,652 | -29,377 |
Other | -1,092 | -224 | -379 | 417 |
Total other income (expense) | -407,723 | -106,552 | -637,496 | -113,137 |
Loss before income taxes | -432,758 | -126,153 | -683,107 | -151,128 |
Income tax expense | 972 | 119 | 1,166 | 222 |
Net loss | -433,730 | -126,272 | -684,273 | -151,350 |
Loss per common share: | ' | ' | ' | ' |
Basic (USD per share) | ($0.48) | ($0.25) | ($0.78) | ($0.31) |
Diluted (USD per share) | ($0.48) | ($0.25) | ($0.78) | ($0.31) |
Weighted-average shares outstanding: | ' | ' | ' | ' |
Basic (shares) | 904,994 | 496,169 | 877,309 | 484,244 |
Diluted (shares) | 904,994 | 496,169 | 877,309 | 484,244 |
Comprehensive loss | ($432,875) | ($126,353) | ($684,651) | ($152,000) |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Current assets: | ' | ' |
Cash and cash equivalents | $23,800,000 | $17,408,000 |
Accounts receivable, net of allowance of $4,620 and $7,419, respectively | 16,767,000 | 15,723,000 |
Inventory | 28,633,000 | 31,817,000 |
Advances for inventory | 2,253,000 | 9,359,000 |
Prepaid expenses and other current assets | 6,913,000 | 7,059,000 |
Total current assets | 78,366,000 | 81,366,000 |
Property and equipment, net | 1,131,884,000 | 1,169,785,000 |
Restricted cash | 37,918,000 | 37,918,000 |
Deferred financing costs | 69,871,000 | 76,436,000 |
Intangible and other assets, net | 9,319,000 | 7,103,000 |
Total assets | 1,327,358,000 | 1,372,608,000 |
Current liabilities: | ' | ' |
Current portion of long-term debt | 7,271,000 | 4,046,000 |
Accounts payable, including contractor payables of $6,520 and $7,665, respectively | 12,374,000 | 14,627,000 |
Accrued contract termination charge | 23,919,000 | 24,133,000 |
Accrued expenses | 21,989,000 | 22,700,000 |
Payables to affiliates | 264,000 | 202,000 |
Derivative liabilities | 0 | 57,048,000 |
Deferred revenue | 21,471,000 | 17,284,000 |
Total current liabilities | 87,288,000 | 140,040,000 |
Long-term debt, less current portion | 624,816,000 | 665,236,000 |
Employee benefit obligations | 3,336,000 | 3,529,000 |
Derivative liabilities | 773,816,000 | 405,478,000 |
Deferred revenue | 6,937,000 | 7,079,000 |
Debt restructuring fees | 20,795,000 | 20,795,000 |
Other non-current liabilities | 14,824,000 | 13,696,000 |
Total non-current liabilities | 1,444,524,000 | 1,115,813,000 |
Commitments and contingent liabilities (Notes 7 and 8) | ' | ' |
Stockholdersb (deficit) equity: | ' | ' |
Preferred Stock | ' | ' |
Additional paid-in capital | 1,438,267,000 | 1,074,837,000 |
Accumulated other comprehensive income | 493,000 | 871,000 |
Retained deficit | -1,643,311,000 | -959,038,000 |
Total stockholdersb (deficit) equity | -204,454,000 | 116,755,000 |
Total liabilities and stockholdersb (deficit) equity | 1,327,358,000 | 1,372,608,000 |
Series A Preferred Stock | ' | ' |
Stockholdersb (deficit) equity: | ' | ' |
Preferred Stock | ' | ' |
Common Stock | ' | ' |
Stockholdersb (deficit) equity: | ' | ' |
Common Stock | 76,000 | 54,000 |
Nonvoting Common Stock | ' | ' |
Stockholdersb (deficit) equity: | ' | ' |
Common Stock | $21,000 | $31,000 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance | $4,620 | $7,419 |
Accounts payable, including contractor payables | $6,520 | $7,665 |
Preferred stock, par value (USD per share) | $0.00 | $0.00 |
Preferred stock, shares authorized (shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Series A Preferred Stock | ' | ' |
Preferred stock, par value (USD per share) | $0.00 | $0.00 |
Preferred stock, shares authorized (shares) | 1 | 1 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common Stock | ' | ' |
Common stock, par value (USD per share) | $0.00 | $0.00 |
Common stock, shares authorized (shares) | 1,200,000,000 | 1,200,000,000 |
Common stock, shares issued (shares) | 763,972,273 | 535,883,461 |
Common stock, shares outstanding (shares) | 763,972,273 | 535,883,461 |
Nonvoting Common Stock | ' | ' |
Common stock, par value (USD per share) | $0.00 | $0.00 |
Common stock, shares authorized (shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (shares) | 209,008,656 | 309,008,656 |
Common stock, shares outstanding (shares) | 209,008,656 | 309,008,656 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows provided by (used in) operating activities: | ' | ' |
Net loss | ($684,273) | ($151,350) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' |
Depreciation, amortization, and accretion | 45,346 | 42,399 |
Change in fair value of derivative assets and liabilities | 585,652 | 28,472 |
Stock-based compensation expense | 1,133 | 793 |
Amortization of deferred financing costs | 5,043 | 4,081 |
Provision for bad debts | 1,050 | 794 |
Reduction in the value of inventory | 7,317 | 0 |
Noncash interest and accretion expense | 10,942 | 12,083 |
Loss on extinguishment of debt | 26,679 | 47,240 |
Loss on equity issuance | 0 | 13,969 |
Discount on future shares issued to vendor | 748 | 0 |
Other, net | 1,101 | 407 |
Unrealized foreign currency gain | -504 | -1,176 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -2,289 | -1,851 |
Inventory | 3,524 | 3,493 |
Prepaid expenses and other current assets | -723 | -1,349 |
Other assets | -1,199 | 556 |
Accounts payable and accrued expenses | -2,177 | -106 |
Payables to affiliates | 63 | 86 |
Other non-current liabilities | 725 | -837 |
Deferred revenue | 4,195 | 470 |
Net cash provided by (used in) operating activities | 2,353 | -1,826 |
Cash flows provided by (used in) investing activities: | ' | ' |
Second-generation satellites, ground and related launch costs (including interest) | -3,315 | -27,666 |
Property and equipment additions | -1,483 | -569 |
Investment in business | 0 | -355 |
Restricted cash | 0 | 8,625 |
Net cash used in investing activities | -4,798 | -19,965 |
Cash flows provided by (used in) financing activities | ' | ' |
Payments to reduce principal amount of exchanged 5.75% Notes | 0 | -13,544 |
Payments for 5.75% Notes not exchanged | 0 | -6,250 |
Payments to lenders and other fees associated with exchange | 0 | -2,482 |
Proceeds from equity issuance to related party | 0 | 39,000 |
Payments of deferred financing costs | -164 | -1,481 |
Proceeds from issuance of common stock and exercise of warrants | 8,986 | 1,206 |
Net cash provided by (used in) financing activities | 8,822 | 16,449 |
Effect of exchange rate changes on cash | 15 | -213 |
Net increase (decrease) in cash and cash equivalents | 6,392 | -5,555 |
Cash and cash equivalents, beginning of period | 17,408 | 11,792 |
Cash and cash equivalents, end of period | 23,800 | 6,237 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for: Interest | 10,335 | 11,445 |
Cash paid for: Income taxes | 63 | 63 |
Supplemental disclosure of non-cash financing and investing activities: | ' | ' |
Increase in non-cash capitalized accrued interest for second-generation satellites and ground costs | 847 | 2,910 |
Capitalization of the accretion of debt discount and amortization of prepaid financing costs | 1,308 | 3,901 |
Payments made in convertible notes and common stock | 1,638 | 3,673 |
Principal amount of debt converted into common stock | 69,232 | 8,615 |
Reduction of debt discount and deferred financing costs due to conversion of debt | 25,340 | 5,166 |
Fair value of common stock issued upon conversion of debt | 221,799 | 0 |
Reduction in derivative liability due to conversion of debt | 151,034 | ' |
Extinguishment of principal amount of 5.75% Notes | 0 | -71,804 |
Issuance of principal amount of 8.00% Notes Issued in 2013 | 0 | 54,611 |
Issuance of common stock to exchanging note holders | $0 | $12,127 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Parenthetical) | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | 20-May-13 |
5.00% Convertible Senior Unsecured Notes | ' | ' | ' | ' |
Interest rate, payable in cash | ' | ' | 5.75% | ' |
Loan interest rate | 5.00% | ' | ' | ' |
8.00% Convertible Senior Notes Issued in 2013 | ' | ' | ' | ' |
Interest rate, payable in cash | 5.75% | 5.75% | ' | 5.75% |
Loan interest rate | ' | ' | 8.00% | 8.00% |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
BASIS OF PRESENTATION | |
The Company has prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Certain information and footnote disclosures normally in financial statements have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission; however, management believes the disclosures made are adequate to make the information presented not misleading. These financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in Globalstar, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2013 and Management's Discussion and Analysis of Financial Condition and Results of Operations herein. | |
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company evaluates estimates on an ongoing basis. Significant estimates include the value of derivative instruments, the allowance for doubtful accounts, the net realizable value of inventory, the useful life and value of property and equipment, the value of stock-based compensation, the reserve for product warranties, and income taxes. Actual results could differ from these estimates. | |
All significant intercompany transactions and balances have been eliminated in the consolidation. In the opinion of management, the information included herein includes all adjustments, consisting of normal recurring adjustments, that are necessary for a fair presentation of the Company’s condensed consolidated statements of operations, condensed consolidated balance sheets, and condensed consolidated statements of cash flows for the periods presented. These unaudited interim condensed consolidated financial statements include the accounts of Globalstar and its majority owned or otherwise controlled subsidiaries. The results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the full year or any future period. | |
Recently Issued Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This standard requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is currently evaluating the impact this standard will have on its condensed consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing reporting. |
Property_and_Equipment
Property and Equipment | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||||||||
Property and Equipment | ' | |||||||||||||||
PROPERTY AND EQUIPMENT | ||||||||||||||||
Property and equipment consists of the following (in thousands): | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Globalstar System: | ||||||||||||||||
Space component | ||||||||||||||||
Second-generation satellites in service | $ | 1,212,099 | $ | 1,212,099 | ||||||||||||
Prepaid long-lead items | 17,040 | 17,040 | ||||||||||||||
Second-generation satellite, on-ground spare | 32,365 | 32,365 | ||||||||||||||
Ground component | 48,766 | 48,378 | ||||||||||||||
Construction in progress: | ||||||||||||||||
Space component | 72 | — | ||||||||||||||
Ground component | 121,144 | 116,377 | ||||||||||||||
Other | 1,445 | 1,115 | ||||||||||||||
Total Globalstar System | 1,432,931 | 1,427,374 | ||||||||||||||
Internally developed and purchased software | 15,921 | 14,931 | ||||||||||||||
Equipment | 12,531 | 12,385 | ||||||||||||||
Land and buildings | 3,866 | 3,768 | ||||||||||||||
Leasehold improvements | 1,672 | 1,644 | ||||||||||||||
Total property and equipment | 1,466,921 | 1,460,102 | ||||||||||||||
Accumulated depreciation | (335,037 | ) | (290,317 | ) | ||||||||||||
Total property and equipment, net | $ | 1,131,884 | $ | 1,169,785 | ||||||||||||
Amounts in the above table consist primarily of costs incurred related to the construction of the Company’s second-generation constellation and ground upgrades. Amounts included in the Company’s second-generation satellite, on-ground spare balance as of June 30, 2014 consist of costs related to a spare second-generation satellite that is capable of being included in a future launch of satellites. As of June 30, 2014, this satellite and the prepaid long-lead items have not been placed into service and therefore the Company has not yet recorded depreciation expense for these items. | ||||||||||||||||
Capitalized Interest and Depreciation Expense | ||||||||||||||||
The following tables summarize capitalized interest for the periods indicated below (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | |||||||||||||
Interest cost eligible to be capitalized | $ | 11,361 | $ | 11,927 | $ | 23,615 | $ | 25,732 | ||||||||
Interest cost recorded in interest expense, net | (9,395 | ) | (7,484 | ) | (19,808 | ) | (14,151 | ) | ||||||||
Net interest capitalized | $ | 1,966 | $ | 4,443 | $ | 3,807 | $ | 11,581 | ||||||||
The following table summarizes depreciation expense for the periods indicated below (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | |||||||||||||
Depreciation Expense | $ | 21,377 | $ | 21,817 | $ | 44,386 | $ | 41,690 | ||||||||
LongTerm_Debt_and_Other_Financ
Long-Term Debt and Other Financing Arrangements | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
Long-Term Debt and Other Financing Arrangements | ' | |||||||||||||||
LONG-TERM DEBT AND OTHER FINANCING ARRANGEMENTS | ||||||||||||||||
Long-term debt consists of the following (in thousands): | ||||||||||||||||
June 30, 2014 | 31-Dec-13 | |||||||||||||||
Principal | Carrying | Principal | Carrying | |||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Facility Agreement | $ | 586,342 | $ | 586,342 | $ | 586,342 | $ | 586,342 | ||||||||
Thermo Loan Agreement | 64,119 | 27,721 | 60,383 | 22,854 | ||||||||||||
8.00% Convertible Senior Notes Issued in 2013 | 29,840 | 18,024 | 46,971 | 26,291 | ||||||||||||
8.00% Convertible Senior Unsecured Notes Issued in 2009 | — | — | 51,652 | 33,795 | ||||||||||||
Total Debt | 680,301 | 632,087 | 745,348 | 669,282 | ||||||||||||
Less: Current Portion | 7,271 | 7,271 | 4,046 | 4,046 | ||||||||||||
Long-Term Debt | $ | 673,030 | $ | 624,816 | $ | 741,302 | $ | 665,236 | ||||||||
The table above presents the principal amount and carrying value of long-term debt at June 30, 2014 and December 31, 2013. The principal amounts shown above include payment of in-kind interest as of the date paid-in-kind notes, if any, are issued. The carrying value is net of any discounts to the loan amounts at issuance, including accretion, as further described below. The amount included in the table above as the current portion of long-term debt includes the next scheduled principal repayments under the Facility Agreement, which are due in December 2014 and June 2015. | ||||||||||||||||
Facility Agreement | ||||||||||||||||
The Company’s senior secured credit facility agreement (“Facility Agreement”) was amended and restated in August 2013 and is scheduled to mature in December 2022. Semi-annual principal repayments are scheduled to begin in December 2014. The facility bears interest at a floating rate of LIBOR plus 2.75% through June 2017, increasing by an additional 0.5% each year to a maximum rate of LIBOR plus 5.75%. Ninety-five percent of the Company’s obligations under the Facility Agreement are guaranteed by COFACE, the French export credit agency. The Company’s obligations under the Facility Agreement are guaranteed on a senior secured basis by all of its domestic subsidiaries and are secured by a first priority lien on substantially all of the assets of the Company and its domestic subsidiaries (other than their FCC licenses), including patents and trademarks, 100% of the equity of the Company’s domestic subsidiaries and 65% of the equity of certain foreign subsidiaries. | ||||||||||||||||
The Facility Agreement contains customary events of default and requires that the Company satisfy various financial and nonfinancial covenants. Pursuant to the terms of the Facility Agreement, the Company has the ability to cure noncompliance with financial covenants with equity contributions through June 2017. If the Company violates any of these financial and nonfinancial covenants and is unable to obtain waivers or avoid an event of default through an equity cure contribution, the Company would be in default under the agreement, and payment of the indebtedness could be accelerated. The acceleration of the Company’s indebtedness under one agreement may permit acceleration of indebtedness under other agreements that contain cross-acceleration provisions. The Company was in compliance with all covenants as of June 30, 2014. See Item 2 - Liquidity and Capital Resources included in Management’s Discussion and Analysis in this Report for further discussion on the Company’s debt covenants. | ||||||||||||||||
The Facility Agreement requires the Company to maintain a total of $37.9 million in a debt service reserve account. The use of the funds in this account is restricted to making principal and interest payments under the Facility Agreement. As of June 30, 2014, the balance in the debt service reserve account was $37.9 million and classified as restricted cash. | ||||||||||||||||
Thermo Loan Agreement | ||||||||||||||||
The Company has an Amended and Restated Loan Agreement (the “Loan Agreement”) with Thermo whereby Thermo agreed to lend the Company $25.0 million for the purpose of funding the debt service reserve account required under the Facility Agreement. In 2011, this loan was increased to $37.5 million. This loan is subordinated to, and the debt service reserve account is pledged to secure, all of the Company’s obligations under the Facility Agreement. Amounts deposited in the debt service reserve account are restricted to payments due under the Facility Agreement, unless otherwise authorized by the lenders. | ||||||||||||||||
The loan accrues interest at 12% per annum, which is capitalized and added to the outstanding principal in lieu of cash payments. The Company will make payments to Thermo only when permitted under the Facility Agreement. The loan becomes due and payable 6 months after the obligations under the Facility Agreement have been paid in full, the Company has a change in control or any acceleration of the maturity of the loans under the Facility Agreement occurs. As of June 30, 2014, $26.6 million of interest was outstanding; this amount is included in long-term debt on the Company’s condensed consolidated balance sheet. | ||||||||||||||||
The Company evaluated the various embedded derivatives within the Loan Agreement. The Company determined that the conversion option and the contingent put feature upon a fundamental change required bifurcation from the Loan Agreement. The conversion option and the contingent put feature were not deemed clearly and closely related to the Loan Agreement and were separately accounted for as a standalone derivative. The Company recorded this compound embedded derivative liability as a non-current liability on its condensed consolidated balance sheet with a corresponding debt discount which is netted against the face value of the Loan Agreement. | ||||||||||||||||
The Company is accreting the debt discount associated with the compound embedded derivative liability to interest expense through the maturity of the Loan Agreement using an effective interest rate method. The fair value of the compound embedded derivative liability is marked-to-market at the end of each reporting period, with any changes in value reported in the condensed consolidated statements of operations. The Company determined the fair value of the compound embedded derivative using a blend of a Monte Carlo simulation model and market prices. | ||||||||||||||||
8.00% Convertible Senior Notes Issued in 2013 | ||||||||||||||||
On May 20, 2013, the Company entered into an Exchange Agreement with the beneficial owners and investment managers for beneficial owners (the “Exchanging Note Holders”) of approximately 91.5% of its outstanding 5.75% Convertible Senior Notes (“5.75% Notes”) and completed the transactions contemplated by the Exchange Agreement. Pursuant to the Exchange Agreement, the Company issued $54.6 million aggregate principal amount of 8.00% Convertible Senior Notes (the “8.00% Notes Issued in 2013”) to the Exchanging Note Holders. The 8.00% Notes Issued in 2013 are convertible into shares of common stock at an initial conversion price of $0.80 per share of common stock, or 1,250 shares of the Company’s common stock per $1,000 principal amount of the 8.00% Notes Issued in 2013, subject to adjustment as provided in the Fourth Supplemental Indenture between the Company and U.S. Bank National Association, as Trustee (the “New Indenture”). The conversion price of the 8.00% Notes Issued in 2013 will be adjusted in the event of certain stock splits or extraordinary share distributions, or as a reset of the base conversion and exercise price pursuant to the terms of the New Indenture. Due to common stock issuances by the Company since May 20, 2013 at prices below the then effective conversion rate, the base conversion rate had been reduced to $0.73 per share of common stock as of June 30, 2014. | ||||||||||||||||
The 8.00% Notes Issued in 2013 are senior unsecured debt obligations of the Company. There is no sinking fund for the 8.00% Notes Issued in 2013. The 8.00% Notes Issued in 2013 will mature on April 1, 2028, subject to various call and put features, and bear interest at a rate of 8.00% per annum. Interest on the 8.00% Notes Issued in 2013 is payable semi-annually in arrears on April 1 and October 1 of each year. Interest is paid in cash at a rate of 5.75% per annum and additional notes at a rate of 2.25% per annum. The New Indenture provides for customary events of default. The Company was not in default under the 8.00% Notes Issued in 2013 as of June 30, 2014. | ||||||||||||||||
Subject to certain conditions set forth in the New Indenture, the Company may redeem the 8.00% Notes Issued in 2013, with the prior approval of the Majority Lenders, in whole or in part, at any time on or after April 1, 2018, at a price equal to the principal amount of the 8.00% Notes Issued in 2013 to be redeemed plus all accrued and unpaid interest thereon. | ||||||||||||||||
A holder of 8.00% Notes Issued in 2013 has the right, at the Holder’s option, to require the Company to purchase some or all of the 8.00% Notes Issued in 2013 held by it on each of April 1, 2018 and April 1, 2023 at a price equal to the principal amount of the 8.00% Notes Issued in 2013 to be purchased plus accrued and unpaid interest. | ||||||||||||||||
Subject to the procedures for conversion and other terms and conditions of the New Indenture, a holder may convert its 8.00% Notes Issued in 2013 at its option at any time prior to the close of business on the business day immediately preceding April 1, 2028, into shares of common stock (or, at the option of the Company, cash in lieu of all or a portion thereof, provided that, under the Facility Agreement, the Company may pay cash only with the consent of the Majority Lenders). | ||||||||||||||||
A holder was permitted to elect to convert up to 15% of its 8.00% Notes Issued in 2013 on each of July 19, 2013 and March 20, 2014. If a holder had elected to convert on either of those dates, it would have received, at the Company’s option, either cash equal to the par value of the 8.00% Notes Issued in 2013 plus accrued interest (provided that, under the Facility Agreement, the Company could pay cash only with the consent of the Majority Lenders) or shares of the Company’s common stock equal to the principal amount of the 8.00% Notes Issued in 2013 to be converted plus accrued interest divided by the lower of the average price of the common stock in a specified period and $0.50. On July 19, 2013, $7.0 million principal amount (approximately 12.9% of the outstanding principal amount) of 8.00% Notes Issued in 2013 were converted, resulting in the issuance of 14.3 million shares. On March 20, 2014, $7.0 million principal amount (approximately 15.0% of the outstanding principal amount) of 8.00% Notes Issued in 2013 were converted, resulting in the issuance of an additional 14.6 million shares. Through June 30, 2014, a total of $25.6 million principal amount of 8.00% Notes Issued in 2013 had been converted, resulting in the issuance of approximately 48.1 million shares of voting common stock relating to the special conversions discussed above as well as normal conversions pursuant to the terms of the New Indenture. Pursuant to the terms in the New Indenture for the 8.00% Notes Issued in 2013 for normal conversions, holders shall receive conversion shares over a 40-consecutive trading day settlement period. As a result of this feature, the portion of converted debt is extinguished on an incremental basis over the 40-day settlement period, reducing the Company's debt balance outstanding. | ||||||||||||||||
The Company evaluated the various embedded derivatives within the New Indenture. The Company determined that the conversion option and the contingent put feature within the New Indenture required bifurcation from the 8.00% Notes Issued in 2013. The conversion option and the contingent put feature were not deemed clearly and closely related to the 8.00% Notes Issued in 2013 and were separately accounted for as a standalone derivative. The Company recorded this compound embedded derivative liability as a non-current liability on its condensed consolidated balance sheet with a corresponding debt discount which is netted against the face value of the 8.00% Notes Issued in 2013. | ||||||||||||||||
The Company is accreting the debt discount associated with the compound embedded derivative liability to interest expense through the first put date of the 8.00% Notes Issued in 2013 (April 1, 2018) using an effective interest rate method. The fair value of the compound embedded derivative liability is being marked-to-market at the end of each reporting period, with any changes in value reported in the condensed consolidated statements of operations. The Company determined the fair value of the compound embedded derivative using a blend of a Monte Carlo simulation model and market prices. | ||||||||||||||||
8.00% Convertible Senior Notes Issued in 2009 | ||||||||||||||||
In June 2009, the Company sold $55.0 million in aggregate principal amount of 8.00% Notes Issued in 2009 and Warrants (the “8.00% Warrants”) to purchase 15.3 million shares of the Company’s common stock. The 8.00% Notes Issued in 2009 were subordinated to all of the Company’s obligations under the Facility Agreement. The 8.00% Notes Issued in 2009 were the Company’s senior unsecured debt obligations and, except as described in the preceding sentence, ranked pari passu with its existing unsecured, unsubordinated obligations, including its 8.00% Notes Issued in 2013. The 8.00% Notes Issued in 2009 were scheduled to mature at the later of the tenth anniversary of closing (June 19, 2019) or six months following the maturity date of the Facility Agreement and bore interest at a rate of 8.00% per annum. Interest on the 8.00% Notes Issued in 2009 was payable in the form of additional notes or, subject to certain restrictions, in common stock at the option of the holder. Interest was payable semi-annually in arrears on June 15 and December 15 of each year. | ||||||||||||||||
The 8.00% Warrants contained full ratchet anti-dilution protection, and the exercise price of the Warrants was subject to adjustment under certain circumstances. In the event of certain transactions that involve a change of control, the holders of the 8.00% Warrants maintained the right to make the Company purchase the warrants for cash, subject to certain conditions. The exercise period for the 8.00% Warrants began on December 19, 2009 and ended on June 19, 2014. As a result of the expiration of this period on June 19, 2014, all outstanding 8.00% Warrants were exercised during the second quarter of 2014, resulting in the issuance of 38.2 million shares of Globalstar common stock. Holders of the 8.00% Warrants had the right to exercise on either a cash or cashless basis. The Company received approximately $7.5 million in cash as a result of these exercises. | ||||||||||||||||
Pursuant to the terms of the indenture governing the 8.00% Notes Issued in 2009, if at any time the closing price of the common stock were to exceed 200% of the conversion price of the 8.00% Notes Issued in 2009 then in effect for 30 consecutive trading days, all of the outstanding 8.00% Notes Issued in 2009 would be automatically converted into common stock. The condition for the automatic conversion was met on April 15, 2014, and all outstanding 8.00% Notes Issued in 2009 (approximately $37.8 million principal amount at that time) converted on that date into approximately 34.5 million shares of the Company’s voting common stock. | ||||||||||||||||
Prior to expiration of the 8.00% warrants and the automatic conversion of the 8.00% Notes Issued in 2009, the exercise price of the 8.00% Warrants was $0.32, and the base conversion price of the 8.00% Notes Issued in 2009 was $1.14. | ||||||||||||||||
The Company initially accreted the debt discount associated with the compound embedded derivative liability to interest expense over the outstanding term of the 8.00% Notes Issued in 2009 using an effective interest rate method. Upon the automatic conversion of the 8.00% Notes Issued in 2009, the remaining debt discount was written off through extinguishment gain (loss). | ||||||||||||||||
Warrants Outstanding | ||||||||||||||||
As a result of the Company’s financing arrangements described above, as of June 30, 2014 and December 31, 2013, warrants were outstanding to purchase 45.1 million and 93.5 million shares, respectively, of the Company’s common stock as shown in the table below: | ||||||||||||||||
Outstanding Warrants | Strike Price | |||||||||||||||
June 30, | December 31, | June 30, | December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Contingent Equity Agreement (1) | 37,088,418 | 41,467,980 | $ | 0.01 | $ | 0.01 | ||||||||||
Thermo Loan Agreement (2) | — | 4,205,608 | — | 0.01 | ||||||||||||
5.0% Notes (3) | 8,000,000 | 8,000,000 | 0.32 | 0.32 | ||||||||||||
8.00% Notes Issued in 2009 (4) | — | 39,842,813 | — | 0.32 | ||||||||||||
45,088,418 | 93,516,401 | |||||||||||||||
-1 | Pursuant to the terms of the Contingent Equity Agreement, the Company has issued to Thermo warrants to purchase shares of common stock pursuant to the annual availability fee and subsequent reset provisions in the Contingent Equity Agreement. These warrants have a five year exercise period from issuance. These warrants were issued between June 2009 and June 2012, and the exercise periods expire between June 2014 and June 2017. As of June 30, 2014, Thermo exercised warrants to purchase approximately 4.4 million of these shares prior to the expiration of the associated warrants. | |||||||||||||||
-2 | As consideration for the Loan Agreement with Thermo, the Company issued Thermo warrants to purchase shares of common stock. The exercise period of the warrants issued in connection with the Thermo Loan Agreement was five years from issuance, which expired in June 2014. Thermo exercised all of these warrants in the second quarter of 2014. | |||||||||||||||
-3 | The 5.0% Warrants are exercisable until June 2016, which is five years after their issuance. | |||||||||||||||
-4 | The exercise period for the 8.00% Warrants began on December 19, 2009 and ended on June 14, 2014. All 8.00% Warrants were exercised in the second quarter of 2014. | |||||||||||||||
Consent Agreement and Common Stock Purchase (and Option) Agreement | ||||||||||||||||
As discussed above, on May 20, 2013, the Company exchanged its 5.75% Notes for the 8.00% Notes Issued in 2013. In connection with this exchange, the Company and Thermo entered into various financial arrangements as described below. | ||||||||||||||||
The Consent Agreement | ||||||||||||||||
On May 20, 2013, the Company entered into the Equity Commitment, Restructuring Support and Consent Agreement dated as of May 20, 2013 among Globalstar, Thermo, BNP Paribas, as agent, and the lenders under the Facility Agreement (the “Consent Agreement”) and the Global Deed of Amendment and Restatement (the “GARA”) with Thermo. To obtain the lenders’ consent to the transactions contemplated by the Exchange Agreement, pursuant to the Consent Agreement, Thermo agreed that it would make, or arrange for third parties to make, cash contributions to the Company in exchange for equity, subordinated convertible debt or other equity-linked securities as follows: | ||||||||||||||||
• | At the closing of the exchange transaction and thereafter each week until no later than July 31, 2013, an amount sufficient to enable the Company to maintain a consolidated unrestricted cash balance of at least $4.0 million; | |||||||||||||||
• | At the closing of the exchange transaction, $25.0 million to satisfy all cash requirements associated with the exchange transaction, including agreed principal and interest payments to the holders of the 5.75% Notes as contemplated by the Exchange Agreement, with any remaining portion being retained by the Company for working capital and general corporate purposes; | |||||||||||||||
• | Contemporaneously with, and as a condition to the closing of, any restructuring of the Facility Agreement, $20.0 million (less any amount contributed pursuant to the commitment described above with respect to the Company’s minimum cash balance); | |||||||||||||||
• | Subject to the prior closing of the Facility Agreement restructuring, on or prior to December 26, 2013, $20.0 million; and | |||||||||||||||
• | Subject to the prior closing of the Facility Agreement restructuring, on or prior to December 31, 2014, $20.0 million, less the amount by which the aggregate amount of cash received by the Company under the first, third and fourth commitments described above exceeds $40 million. | |||||||||||||||
In accordance with the terms of the Common Stock Purchase Agreement and Common Stock Purchase and Option Agreement, discussed below, as of June 30, 2014, Thermo had contributed a total of $65.0 million to the Company in exchange for 171.9 million shares of the Company’s nonvoting common stock. As of June 30, 2014, Thermo had fulfilled its obligations under the agreements. | ||||||||||||||||
The Common Stock Purchase Agreement | ||||||||||||||||
On May 20, 2013, the Company and Thermo entered into a Common Stock Purchase Agreement pursuant to which Thermo purchased 78,125,000 shares of the Company’s common stock for $25.0 million ($0.32 per share). Thermo also agreed to purchase additional shares of common stock at $0.32 per share as and when required to fulfill its equity commitment described above to maintain the Company’s consolidated unrestricted cash balance at not less than $4.0 million until the earlier of July 31, 2013 and the closing of a restructuring of the Facility Agreement. In furtherance thereof, at the closing of the transactions contemplated by the Exchange Agreement, Thermo purchased an additional 15,625,000 shares of common stock for an aggregate purchase price of $5.0 million. In June 2013, Thermo purchased an additional 28,125,000 shares of common stock for an aggregate purchase price of $9.0 million pursuant to the Common Stock Purchase Agreement. | ||||||||||||||||
During 2013, Thermo purchased in total approximately 121.9 million shares of the Company’s common stock pursuant to the Common Stock Purchase Agreement for an aggregate $39.0 million, as discussed in the previous paragraph. As a result of these transactions, during the second quarter of 2013, the Company recognized a loss on the sale of these shares of approximately $14.0 million (included in other income/expense on the condensed consolidated statement of operations), representing the difference between the purchase price and the fair value of the Company’s common stock (measured as the closing stock price on the date of each sale). | ||||||||||||||||
The terms of the Common Stock Purchase Agreement were approved by a special committee of the Company’s board of directors consisting solely of the Company’s unaffiliated directors. The committee, which was represented by independent legal counsel, determined that the terms of the Common Stock Purchase Agreement were fair and in the best interests of the Company and its shareholders. | ||||||||||||||||
The Common Stock Purchase and Option Agreement | ||||||||||||||||
On October 14, 2013, the Company and Thermo entered into a Common Stock Purchase and Option Agreement pursuant to which Thermo agreed to purchase 11,538,461 shares of the Company’s nonvoting common stock at a purchase price of $0.52 per share in exchange for $6.0 million invested in July and an additional $20 million, or 38,461,538 shares, of which $6.5 million was invested in August 2013 and the remaining $13.5 million was invested under the First Option, described below. The Common Stock Purchase and Option Agreement also granted the Company a First Option and a Second Option, as defined in the agreement, to sell to Thermo up to $13.5 million and $11.5 million, respectively, of nonvoting common stock, as and when exercised by the special committee through November 28, 2013 and December 31, 2013, respectively. The First Option to sell up to $13.5 million in shares to Thermo was at a purchase price of $0.52 per share. The Second Option to sell up to $11.5 million in shares to Thermo was at a price equal to 85% of the average closing price of the voting common stock during the ten trading days immediately preceding the date of the special committee’s request. In November 2013, the special committee amended the Common Stock Purchase and Option Agreement to defer the expiration date of the Second Option to March 31, 2014. The Second Option under the Common Stock Purchase and Option Agreement was not exercised and therefore has expired. | ||||||||||||||||
During 2013, Thermo purchased approximately 24.0 million shares of the Company’s common stock pursuant to the terms of the Common Stock Purchase and Option Agreement for an aggregate purchase price of $12.5 million. As a result of these transactions, during the third quarter of 2013, the Company recognized a loss on the sale of these shares of approximately $2.4 million (included in other income/expense on the condensed consolidated statement of operations), representing the difference between the purchase price and the fair value of the Company’s common stock (measured as the closing stock price on the date of each sale). | ||||||||||||||||
In November 2013, the Company exercised the First Option, and on December 27, 2013 Thermo purchased 26.0 million shares of common stock at a purchase price of $0.52 per share for a total additional investment of $13.5 million. | ||||||||||||||||
The terms of the Common Stock Purchase and Option Agreement were approved by a special committee of the Company’s board of directors consisting solely of the Company’s unaffiliated directors. The committee, which was represented by independent legal counsel, determined that the terms of the Common Stock Purchase and Option Agreement were fair and in the best interests of the Company and its shareholders. | ||||||||||||||||
Terrapin Opportunity, L.P. Common Stock Purchase Agreement | ||||||||||||||||
On December 28, 2012 the Company entered into a Common Stock Purchase Agreement with Terrapin pursuant to which the Company may, subject to certain conditions, require Terrapin to purchase up to $30.0 million of shares of voting common stock over the 24-month term following the effectiveness of a resale registration statement, which became effective on August 2, 2013. This type of arrangement is sometimes referred to as a committed equity line financing facility. From time to time over the 24-month term following the effectiveness of the registration statement, and in the Company’s sole discretion, the Company may present Terrapin with up to 36 draw down notices requiring Terrapin to purchase a specified dollar amount of shares of voting common stock, based on the price per share per day over ten consecutive trading days (a "Draw Down Period"). The per share purchase price for these shares will equal the daily volume weighted average price of common stock on each date during the Draw Down Period on which shares are purchased, less a discount ranging from 3.5% to 8% based on a minimum price that the Company specifies. In addition, in the Company’s sole discretion, but subject to certain limitations, the Company may require Terrapin to purchase a percentage of the daily trading volume of its common stock for each trading day during the Draw Down Period. The Company has agreed not to sell to Terrapin a number of shares of voting common stock which, when aggregated with all other shares of voting common stock then beneficially owned by Terrapin and its affiliates, would result in the beneficial ownership by Terrapin or any of its affiliates of more than 9.9% of the then issued and outstanding shares of voting common stock. | ||||||||||||||||
When the Company makes a draw under the Terrapin equity line agreement, it will issue Terrapin shares of common stock calculated using a price per share as specified in the agreement. As of June 30, 2014, Terrapin had purchased a total of 6.1 million shares of voting common stock at a purchase price of $6.0 million pursuant to the terms of the agreement. $24.0 million remain available under this agreement. |
Derivatives
Derivatives | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||
Derivatives | ' | |||||||
DERIVATIVES | ||||||||
In connection with certain borrowings disclosed in Note 3, the Company was required to record derivative instruments on its condensed consolidated balance sheets. None of these derivative instruments are designated as a hedge. The following tables disclose the fair values and classification of the derivative instruments on the Company’s condensed consolidated balance sheets (in thousands): | ||||||||
June 30, | 31-Dec-13 | |||||||
2014 | ||||||||
Intangible and other assets: | ||||||||
Interest rate cap | $ | 79 | $ | 185 | ||||
Total intangible and other assets | $ | 79 | $ | 185 | ||||
Derivative liabilities, current: | ||||||||
Warrants issued with 8.00% Notes Issued in 2009 | $ | — | $ | (57,048 | ) | |||
Derivative liabilities, non-current: | ||||||||
Compound embedded derivative with 8.00% Notes Issued in 2009 | $ | — | $ | (66,022 | ) | |||
Compound embedded derivative with 8.00% Notes Issued in 2013 | (183,963 | ) | (109,794 | ) | ||||
Compound embedded derivative with the Amended and Restated Thermo Loan Agreement | (589,853 | ) | (229,662 | ) | ||||
Total derivative liabilities, non-current: | (773,816 | ) | (405,478 | ) | ||||
Total derivative liabilities, current and non-current | $ | (773,816 | ) | $ | (462,526 | ) | ||
The following table discloses the changes in value during the three and six months ended June 30, 2014 and 2013 recorded as derivative loss on the Company’s condensed consolidated statement of operations (in thousands): | ||||||||
Three Months Ended | ||||||||
June 30, 2014 | June 30, 2013 | |||||||
Interest rate cap | $ | (58 | ) | $ | 101 | |||
Warrants issued with 8.00% Notes Issued in 2009 | (31,725 | ) | (23,411 | ) | ||||
Compound embedded derivative with 8.00% Notes Issued in 2009 | 6,681 | (7,127 | ) | |||||
Contingent put feature embedded in the 5.0% Convertible Senior Notes | — | 1,439 | ||||||
Compound embedded derivative with 8.00% Notes Issued in 2013 | (93,471 | ) | (905 | ) | ||||
Compound embedded derivative with the Amended and Restated Thermo Loan Agreement | (257,710 | ) | — | |||||
Total derivative loss | $ | (376,283 | ) | $ | (29,903 | ) | ||
Six Months Ended | ||||||||
June 30, 2014 | June 30, 2013 | |||||||
Interest rate cap | $ | (105 | ) | $ | 116 | |||
Warrants issued with 8.00% Notes Issued in 2009 | (67,523 | ) | (22,626 | ) | ||||
Compound embedded derivative with 8.00% Notes Issued in 2009 | (16,406 | ) | (7,247 | ) | ||||
Contingent put feature embedded in the 5.0% Convertible Senior Notes | — | 1,285 | ||||||
Compound embedded derivative with 8.00% Notes Issued in 2013 | (141,427 | ) | (905 | ) | ||||
Compound embedded derivative with the Amended and Restated Thermo Loan Agreement | (360,191 | ) | — | |||||
Total derivative loss | $ | (585,652 | ) | $ | (29,377 | ) | ||
Intangible and Other Assets | ||||||||
Interest Rate Cap | ||||||||
In June 2009, in connection with entering into the Facility Agreement, which provides for interest at a variable rate, the Company entered into five ten-year interest rate cap agreements. The interest rate cap agreements reflect a variable notional amount ranging from $586.3 million to $14.8 million at interest rates that provide coverage to the Company for exposure resulting from escalating interest rates over the term of the Facility Agreement. The interest rate cap provides limits on the six-month Libor rate (“Base Rate”) used to calculate the coupon interest on outstanding amounts on the Facility Agreement and is capped at 5.50% should the Base Rate not exceed 6.5%. Should the Base Rate exceed 6.5%, the Company’s Base Rate will be 1% less than the then six-month Libor rate. The Company paid an approximately $12.4 million upfront fee for the interest rate cap agreements. The interest rate cap did not qualify for hedge accounting treatment, and changes in the fair value of the agreements are included in the condensed consolidated statements of operations. | ||||||||
Derivative Liabilities | ||||||||
The Company has identified various embedded derivatives resulting from certain features in the Company’s debt instruments. These embedded derivatives required bifurcation from the debt host instrument. All embedded derivatives that required bifurcation are recorded as a derivative liability on the Company’s condensed consolidated balance sheet with a corresponding debt discount netted against the principal amount of the related debt instrument. The Company accretes the debt discount associated with each derivative liability to interest expense over the term of the related debt instrument using an effective interest rate method. The fair value of each embedded derivative liability is marked-to-market at the end of each reporting period with any changes in value reported in its condensed consolidated statements of operations. See below for further discussion for each liability and the features embedded in the debt instrument which required the Company to account for the instrument as a derivative. | ||||||||
Warrants Issued with 8.00% Notes Issued in 2009 | ||||||||
Due to the reset features in the 8.00% Warrants issued with the 8.00% Notes Issued in 2009, the Company recorded the 8.00% Warrants as an embedded derivative liability on its condensed consolidated balance sheet with a corresponding debt discount which was netted against the principal amount of the 8.00% Notes Issued in 2009. The Company determined the fair value of the warrant derivative using a Monte Carlo simulation model. The exercise period for the 8.00% Warrants expired in June 2014; accordingly, the derivative liability for the 8.00% Warrants is no longer outstanding. | ||||||||
Compound Embedded Derivative with 8.00% Notes Issued in 2009 | ||||||||
As a result of the conversion rights and features and the contingent put feature embedded within the 8.00% Notes Issued in 2009, the Company recorded a compound embedded derivative liability on its condensed consolidated balance sheet with a corresponding debt discount which was netted against the principal amount of the 8.00% Notes Issued in 2009. The Company determined the fair value of the compound embedded derivative using a Monte Carlo simulation model. On April 15, 2014, the remaining principal amount of 8.00% Notes Issued in 2009 was converted into common stock; accordingly, the derivative liability embedded in the 8.00% Notes Issued in 2009 is no longer outstanding. | ||||||||
Contingent Put Feature Embedded in the 5.0% Convertible Senior Notes | ||||||||
As a result of the contingent put feature within the 5.0% Convertible Senior Notes (“5.0% Notes”), the Company recorded a derivative liability on its condensed consolidated balance sheet with a corresponding debt discount which was netted against the principal amount of the 5.0% Notes. The Company determined the fair value of the contingent put feature derivative using a Monte Carlo simulation model. On November 7, 2013, the remaining principal amount of the 5.0% Notes was converted into common stock; accordingly, the derivative liability embedded in the 5.0% Notes is longer outstanding. | ||||||||
Compound Embedded Derivative with 8.00% Notes Issued in 2013 | ||||||||
As a result of the conversion option and the contingent put feature within the 8.00% Notes Issued in 2013, the Company recorded a compound embedded derivative liability on its condensed consolidated balance sheet with a corresponding debt discount which is netted against the face value of the 8.00% Notes Issued in 2013. The Company determined the fair value of the compound embedded derivative liability using a blend of a Monte Carlo simulation model and market prices. | ||||||||
Compound Embedded Derivative with the Amended and Restated Thermo Loan Agreement | ||||||||
As a result of the conversion option and the contingent put feature within the Loan Agreement with Thermo entered into in July 2013, the Company recorded a compound embedded derivative liability on its condensed consolidated balance sheet with a corresponding debt discount which is netted against the face value of the Amended and Restated Loan Agreement. The Company determined the fair value of the compound embedded derivative liability using a blend of a Monte Carlo simulation model and market prices. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | |||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||||
The Company follows the authoritative guidance for fair value measurements relating to financial and non-financial assets and liabilities, including presentation of required disclosures herein. This guidance establishes a fair value framework requiring the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets and liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows: | ||||||||||||||||||
Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. | ||||||||||||||||||
Level 2: Quoted prices in markets that are not active or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. | ||||||||||||||||||
Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). | ||||||||||||||||||
Recurring Fair Value Measurements | ||||||||||||||||||
The following table provides a summary of the financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||||
Fair Value Measurements at June 30, 2014: | ||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||
Balance | ||||||||||||||||||
Assets: | ||||||||||||||||||
Interest rate cap | $ | — | $ | 79 | $ | — | $ | 79 | ||||||||||
Total assets measured at fair value | $ | — | $ | 79 | $ | — | $ | 79 | ||||||||||
Liabilities: | ||||||||||||||||||
Derivative Liabilities: | ||||||||||||||||||
Compound embedded derivative with 8.00% Notes Issued in 2013 | $ | — | $ | — | (183,963 | ) | $ | (183,963 | ) | |||||||||
Compound embedded derivative with the Amended and Restated Thermo Loan Agreement | — | — | (589,853 | ) | (589,853 | ) | ||||||||||||
Total Derivative Liabilities | — | — | (773,816 | ) | (773,816 | ) | ||||||||||||
Current Liabilities: | ||||||||||||||||||
Liability for contingent consideration | — | — | (1,545 | ) | (1,545 | ) | ||||||||||||
Total liabilities measured at fair value | $ | — | $ | — | $ | (775,361 | ) | $ | (775,361 | ) | ||||||||
Fair Value Measurements at December 31, 2013: | ||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||
Balance | ||||||||||||||||||
Assets: | ||||||||||||||||||
Interest rate cap | $ | — | $ | 185 | $ | — | $ | 185 | ||||||||||
Total assets measured at fair value | $ | — | $ | 185 | $ | — | $ | 185 | ||||||||||
Liabilities: | ||||||||||||||||||
Derivative Liabilities: | ||||||||||||||||||
Warrants issued with 8.00% Notes Issued in 2009 | $ | — | $ | — | $ | (57,048 | ) | $ | (57,048 | ) | ||||||||
Compound embedded derivative with 8.00% Notes Issued in 2009 | — | — | (66,022 | ) | (66,022 | ) | ||||||||||||
Compound embedded derivative with 8.00% Notes Issued in 2013 | — | — | (109,794 | ) | (109,794 | ) | ||||||||||||
Compound embedded derivative with the Amended and Restated Thermo Loan Agreement | — | — | (229,662 | ) | (229,662 | ) | ||||||||||||
Total Derivative Liabilities | — | — | (462,526 | ) | (462,526 | ) | ||||||||||||
Current Liabilities: | ||||||||||||||||||
Liability for contingent consideration | — | — | (1,923 | ) | (1,923 | ) | ||||||||||||
Total liabilities measured at fair value | $ | — | $ | — | $ | (464,449 | ) | $ | (464,449 | ) | ||||||||
Assets | ||||||||||||||||||
Interest Rate Cap | ||||||||||||||||||
The fair value of the interest rate cap is determined using observable pricing inputs including benchmark yields, reported trades, and broker/dealer quotes at the reporting date. See Note 4 for further discussion. | ||||||||||||||||||
Liabilities | ||||||||||||||||||
The Company has various derivative liabilities in Level 3. The Company marks-to-market these liabilities at each reporting date with the changes in fair value recognized in the Company’s condensed consolidated statements of operations. See Note 4 for further discussion. | ||||||||||||||||||
The significant quantitative Level 3 inputs utilized in the valuation models as of June 30, 2014 and December 31, 2013 are shown in the tables below: | ||||||||||||||||||
Level 3 Inputs at June 30, 2014: | ||||||||||||||||||
Stock Price | Risk-Free | Note | Warrant | Market Price of Common Stock | ||||||||||||||
Volatility | Interest | Conversion | Exercise | |||||||||||||||
Rate | Price | Price | ||||||||||||||||
Compound embedded derivative with 8.00% Notes Issued in 2013 | 65% - 95% | 1.2 | % | $ | 0.73 | N/A | $ | 4.25 | ||||||||||
Compound embedded derivative with the Amended and Restated Thermo Loan Agreement | 50% - 100% | 2.4 | % | $ | 0.73 | N/A | $ | 4.25 | ||||||||||
Level 3 Inputs at December 31, 2013: | ||||||||||||||||||
Stock Price | Risk-Free | Note | Warrant | Market Price of Common Stock | ||||||||||||||
Volatility | Interest | Conversion | Exercise | |||||||||||||||
Rate | Price | Price | ||||||||||||||||
Compound embedded derivative with 8.00% Notes Issued in 2009 | 65% - 100% | 1.5 | % | $ | 1.14 | N/A | $ | 1.75 | ||||||||||
Warrants issued with 8.00% Notes Issued in 2009 | 100 | % | 0.1 | % | N/A | $ | 0.32 | $ | 1.75 | |||||||||
Compound embedded derivative with 8.00% Notes Issued in 2013 | 65% - 100% | 1.5 | % | $ | 0.73 | N/A | $ | 1.75 | ||||||||||
Compound embedded derivative with the Amended and Restated Thermo Loan Agreement | 65% - 100% | 3 | % | $ | 0.73 | N/A | $ | 1.75 | ||||||||||
Fluctuations in the Company’s stock price are a primary driver for the changes in the derivative valuations during each reporting period. As the stock price increases above the current conversion price for each of the related derivative instruments, the value to the holder of the instrument generally increases, therefore increasing the liability on the Company’s condensed consolidated balance sheet. As previously discussed, the Company uses a blend of a Monte Carlo simulation model and market prices to determine the fair value of the derivative valuations. These valuations are sensitive to the weighting applied to each of the simulated values. Additionally, stock price volatility is one of the significant unobservable inputs used in the fair value measurement of each of the Company’s derivative instruments. The simulated fair value of these liabilities is sensitive to changes in the expected volatility of the Company's stock price. Decreases in expected volatility would generally result in a lower fair value measurement. | ||||||||||||||||||
Probability of a change of control is another significant unobservable input used in the fair value measurement of the Company’s derivative instruments. Subject to certain restrictions in each indenture, the Company’s debt instruments contain certain provisions whereby holders may require the Company to purchase all or any portion of the convertible debt instrument upon a change of control. A change of control will occur upon certain changes in the ownership of the Company or certain events relating to the trading of the Company’s common stock. The simulated fair value of the derivative liabilities above is sensitive to changes in the assumed probabilities of a change of control. Decreases in the assumed probability of a change of control would generally result in a lower fair value measurement. | ||||||||||||||||||
In addition to the Level 3 inputs described above, the indentures governing the related debt instrument for each of the derivative liabilities included in the Company’s Level 3 fair value measurements have specific features that impact the valuation of each liability at reporting periods. These features are further described below for each of the Company’s derivative liabilities. | ||||||||||||||||||
Compound Embedded Derivative with 8.00% Notes Issued in 2009 | ||||||||||||||||||
In addition to the inputs described above, the valuation model used to calculate the fair value measurement of the compound embedded derivative with the 8.00% Notes Issued in 2009 included payment in kind interest payments, make whole premiums and automatic conversions. Pursuant to the terms of the 8.00% Notes Issued in 2009, the base conversion rate could not reset to lower than $1.00; therefore if the Company made future equity issuances at prices below the then current conversion price, this conversion price would have been adjusted downward to as low as $1.00. As discussed in Note 3, pursuant to the terms of the indenture governing the 8.00% Notes Issued in 2009, if at any time the closing price of the common stock exceeded 200% of the conversion price of the 8.00% Notes Issued in 2009 then in effect for 30 consecutive trading days, all of the outstanding 8.00% Notes Issued in 2009 automatically would have been converted into common stock. This condition for the automatic conversion was met on April 15, 2014, and all outstanding 8.00% Notes Issued in 2009 converted into shares of the Company’s common stock; accordingly, this derivative liability is no longer outstanding. | ||||||||||||||||||
Warrants Issued with 8.00% Notes Issued in 2009 | ||||||||||||||||||
In addition to the inputs described above, the valuation model used to calculate the fair value measurement of the 8.00% Warrants issued with the 8.00% Notes Issued in 2009 included certain reset features. Pursuant to the terms of the 8.00% Warrants, there was no floor within the reset feature for the exercise price of the 8.00% Warrants; therefore if the Company had made future equity issuances at prices below the current exercise price, this exercise price would have been adjusted downward. If the stock price on the issuance date was less than the then current exercise price of the outstanding 8.00% Warrants, additional warrants would have been issued, which would have increased the fair value of the warrant liability. The exercise period for the 8.00% Warrants expired in June 2014; accordingly, this derivative liability is no longer outstanding. | ||||||||||||||||||
Compound Embedded Derivative with 8.00% Notes Issued in 2013 | ||||||||||||||||||
In addition to the inputs described above, the valuation model used to calculate the fair value measurement of the compound embedded derivative within the Company’s 8.00% Notes Issued in 2013 includes payment in kind interest payments, make whole premiums, a 40-day stock issuance settlement period upon conversion and automatic conversions. Pursuant to the terms of the 8.00% Notes Issued in 2013 Indenture, there are also special distributions and certain put and call features within the notes which impact the valuation model. The 8.00% Notes Issued in 2013 experienced increased trading activity in the market, therby providing the Company with additional valuation support. As a result of the increase in trading activity, in 2014, the Company implemented a weight factor to the fair value of the embedded derivative to align the fair value produced from the valuation model to the fair value of the notes traded in the market. | ||||||||||||||||||
Compound Embedded Derivative with Amended and Restated Thermo Loan Agreement | ||||||||||||||||||
In addition to the inputs described above, the valuation model used to calculate the fair value measurement of the compound embedded derivative within the Amended and Restated Loan Agreement with Thermo includes payment in kind interest payments, make whole premiums, a 40-day stock issuance settlement period upon conversion and automatic conversions. The compound embedded derivative in the Amended and Restated Loan Agreement with Thermo contains similar features to the 8.00% Notes Issued in 2013. As stated in the previous section, in 2014, the Company implemented a weight factor to the fair value of the embedded derivative in the 8.00% Notes Issued in 2013 to align the fair value produced from the valuation model to the fair value of the notes traded in the market. Due to the similarities in the debt instruments, a similar weight factor was applied to the embedded derivative in the Amended and Restated Loan Agreement with Thermo. | ||||||||||||||||||
Other Liabilities | ||||||||||||||||||
Liability for Contingent Consideration | ||||||||||||||||||
In connection with the acquisition of Axonn LLC (“Axonn”) in December 2009, the Company is obligated to pay up to an additional $10.8 million in contingent consideration for earnouts based on sales of existing and new products over a five-year earnout period beginning January 1, 2010. The Company will make earnout payments in stock not to exceed 26,684,807 shares of common stock (10% of the Company’s pre-transaction outstanding shares of common stock), but at its option may make payments in cash after 13.0 million shares have been issued. The Company’s initial estimate of the total earnout expected to be paid was $10.8 million. Since the earnout period started, the Company has made revisions to this estimate, which was $9.7 million at June 30, 2014. Through June 30, 2014, the Company had made $8.1 million in earnout payments by issuing 18.6 million shares of voting common stock. The liability of $1.5 million recorded at June 30, 2014 represents the present value of the remaining projected earnout payments to be made under the agreement. | ||||||||||||||||||
The fair value of the accrued contingent consideration was determined using a probability-weighted discounted cash flow approach at the acquisition date and reporting date. The approach is based on significant inputs that are not observable in the market, which are referred to as Level 3 inputs. The fair value is based on the Company's reaching specific performance metrics through the remaining earnout period. The change in fair value of the contingent consideration is recorded through accretion expense in the Company’s condensed consolidated statements of operations. | ||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of the Company’s liability for contingent consideration are projected future sales of existing and new products as well as earnout payments made each quarter determined by actual product sales. Decreases in forecasted sales would result in a lower fair value measurement. | ||||||||||||||||||
The following table presents a rollforward for all liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2014 as follows (in thousands): | ||||||||||||||||||
Balance at March 31, 2014 | $ | (633,332 | ) | |||||||||||||||
Earnout payments made related to liability for contingent consideration | 377 | |||||||||||||||||
Change in fair value of contingent consideration | (467 | ) | ||||||||||||||||
Derivative adjustment related to conversions and exercises | 234,286 | |||||||||||||||||
Unrealized loss, included in derivative loss | (376,225 | ) | ||||||||||||||||
Balance at June 30, 2014 | $ | (775,361 | ) | |||||||||||||||
Balance at December 31, 2013 | $ | (464,449 | ) | |||||||||||||||
Earnout payments made related to liability for contingent consideration | 998 | |||||||||||||||||
Change in fair value of contingent consideration | (620 | ) | ||||||||||||||||
Derivative adjustment related to conversions and exercises | 274,257 | |||||||||||||||||
Unrealized loss, included in derivative loss | (585,547 | ) | ||||||||||||||||
Balance at June 30, 2014 | $ | (775,361 | ) |
Accrued_Expenses_and_NonCurren
Accrued Expenses and Non-Current Liabilities | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accrued Expenses and Non-Current Liabilities | ' | |||||||
ACCRUED EXPENSES AND NON-CURRENT LIABILITIES | ||||||||
Accrued expenses consist of the following (in thousands): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Accrued interest | $ | 897 | $ | 1,200 | ||||
Accrued compensation and benefits | 2,947 | 3,927 | ||||||
Accrued property and other taxes | 5,957 | 5,744 | ||||||
Accrued customer liabilities and deposits | 2,654 | 2,663 | ||||||
Accrued professional and other service provider fees | 1,684 | 705 | ||||||
Accrued liability for contingent consideration | 1,545 | 1,922 | ||||||
Accrued commissions | 1,008 | 1,316 | ||||||
Accrued telecommunications expenses | 1,322 | 649 | ||||||
Other accrued expenses | 3,975 | 4,574 | ||||||
Total accrued expenses | $ | 21,989 | $ | 22,700 | ||||
Other accrued expenses include primarily outsourced logistics services, storage, accruals for inventory in transit, warranty reserve and maintenance. | ||||||||
Noncurrent liabilities consist of the following (in thousands): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Long-term accrued interest | $ | 170 | $ | 451 | ||||
Asset retirement obligation | 1,133 | 1,083 | ||||||
Deferred rent and capital lease obligations | 459 | 456 | ||||||
Liabilities related to the Cooperative Endeavor Agreement with the State of Louisiana | 1,608 | 1,575 | ||||||
Uncertain income tax positions | 6,937 | 5,918 | ||||||
Foreign tax contingencies | 4,517 | 4,213 | ||||||
Total noncurrent liabilities | $ | 14,824 | $ | 13,696 | ||||
Commitments
Commitments | 6 Months Ended |
Jun. 30, 2014 | |
COMMITMENTS [Abstract] | ' |
Commitments | ' |
COMMITMENTS | |
Contractual Obligations | |
As of June 30, 2014, the Company had purchase commitments with Thales Alenia Space France (“Thales”), Arianespace, Ericsson Inc. (“Ericsson”) and Hughes Network Systems, LLC (“Hughes”) related to the procurement and deployment of the second-generation network. | |
Second-Generation Satellites | |
As of June 30, 2014, the Company had a contract with Thales for the construction of the Company’s second-generation low-earth orbit satellites and related services. The Company has successfully launched all of these second-generation satellites, excluding one on-ground spare. The Company has also incurred additional costs for certain related services, of which a portion are still owed to Thales. Discussions between the Company and Thales are ongoing regarding the remaining amounts owed by both parties under the contract. | |
As of June 30, 2014, the Company had a contract with Arianespace for the launch of the Company’s second-generation satellites and certain pre and post-launch services under which Arianespace agreed to make four launches of satellites. The Company has successfully completed all of these launches. The Company has also incurred additional costs which are owed to Arianespace for launch delays. | |
Next-Generation Gateways and Other Ground Facilities | |
As of June 30, 2014, the Company had a contract with Hughes under which Hughes will design, supply and implement the Radio Access Network (RAN) ground network equipment and software upgrades for installation at a number of the Company’s satellite gateway ground stations and satellite interface chips to be used in various next-generation Globalstar devices. In December 2013, the Company and Hughes amended the contract to extend the schedule of the program and to revise the remaining payment milestones and program milestones to reflect the revised program timeline. | |
In May 2014, the Company entered into an agreement with Hughes to incorporate changes to the scope of work for the RAN and UTS being supplied to the Company. The additional work increased the total contract value by $3.8 million. In May 2014, the Company and Hughes also entered into a letter agreement whereby Hughes was granted the option to accept the pre-payment of certain payment milestones in the form of Globalstar stock at a 7% discount from the market value in lieu of cash. These payment milestones totaled $9.9 million. The stock was issued to Hughes on July 1, 2014. In valuing the shares, a loss of approximately $0.7 million was recorded in the Company's condensed consolidated statement of operations during the second quarter of 2014. | |
As of June 30, 2014, the Company had an agreement with Ericsson, which will work with the Company to develop, implement and maintain a ground interface, or core network system that will be installed at a number of the Company’s satellite gateway ground stations. In July 2014, the Company and Ericsson entered into a new agreement for the Company’s core network system specifying the remaining contract value of $25.4 million for the work and a new milestone schedule to reflect the new program timeline. | |
The Company issued separate purchase orders for additional phone equipment and accessories under the terms of an executed commercial agreement with Qualcomm since 2004. This contract was canceled in March 2013 and since that time the parties were seeking to resolve the issues related to the contract termination. The Company and Qualcomm signed an agreement in July 2014 specifying the terms for the sale of the remaining inventory to the Company. The Company previously recorded total advances to Qualcomm for inventory of $9.2 million on its condensed consolidated balance sheet. The Company agreed to pay to Qualcomm $0.1 million to take ownership of finished goods and raw materials, which includes the $9.2 million advance held by Qualcomm as well as certain limited support services to be provided to the Company. This final payment made in July 2014 eliminated Globalstar's obligations to purchase additional equipment from Qualcomm. As a result of certain terms in the July 2014 agreement, the Company recorded a reduction in the value of inventory of $7.3 million related to raw materials that are not likely to be used in future production of inventory. The remaining balance of $2.3 million for inventory advances on the Company's condensed consolidated balance sheet includes approximately $2.0 million related to the Qualcomm contract, representing primarily finished goods. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
CONTINGENCIES [Abstract] | ' |
Contingencies | ' |
CONTINGENCIES | |
Arbitration | |
On June 3, 2011, Globalstar filed a demand for arbitration against Thales before the American Arbitration Association to enforce certain rights to order additional satellites under the Amended and Restated Contract for the construction of the Globalstar Satellite for the Second Generation Constellation dated and executed in June 2009 (“2009 Contract”). Globalstar did not include within its demand any claims that it had against Thales for work previously performed under the contract to design, manufacture and timely deliver the first 25 second-generation satellites. On May 10, 2012, the arbitration tribunal issued its award in which it determined that Globalstar materially breached the contract by failing to pay to Thales termination charges in the amount of €51,330,875.00 by October 9, 2011, and that absent further agreement between the parties, Thales has no further obligation to manufacture or deliver satellites under Phase 3 of the 2009 Contract. The award also required Globalstar to pay Thales approximately €53 million in termination charges and interest by June 9, 2012. On May 23, 2012, Thales commenced an action in the United States District Court for the Southern District of New York by filing a petition to confirm the arbitration award (the “New York Proceeding”). Thales and the Company entered into a Tolling Agreement as of June 13, 2013 under which Thales dismissed the New York Proceeding without prejudice. Thales may refile the petition at a later date and pursue the confirmation of the arbitration award, which Globalstar will oppose. Should Thales be successful in confirming the arbitration award, this would have a material adverse effect on the Company’s financial condition and liquidity. | |
On June 24, 2012, the Company and Thales agreed to settle their prior commercial disputes, including those disputes that were the subject of the arbitration award. In order to effectuate this settlement, the Company and Thales entered into a Release Agreement, a Settlement Agreement and a Submission Agreement. Under the terms of the Release Agreement, Thales agreed unconditionally and irrevocably to release and forever discharge the Company from any obligation to pay €35,623,770 of the termination charges awarded in the arbitration together with all interest on the award amount effective upon the earlier of December 31, 2012 and the effective date of the financing for the purchase of any additional second-generation satellites. Under the terms of the Release Agreement, Globalstar agreed unconditionally and irrevocably to release and forever discharge Thales from any and all claims related to Thales’ work under the 2009 satellite construction contract, including any obligation to pay liquidated damages, effective upon the earlier of December 31, 2012 and the effective date of the financing for the purchase of any additional second-generation satellites. In connection with the Release Agreement, the Company recorded a contract termination charge of approximately €17.5 million which is recorded in the Company’s condensed consolidated financial statements for the period ended June 30, 2014. The releases became effective on December 31, 2012. | |
Under the terms of the Settlement Agreement, Globalstar agreed to pay €17,530,000 to Thales, representing one-third of the termination charges awarded to Thales in the arbitration, subject to certain conditions, on the later of the effective date of the new contract for the purchase of any additional second-generation satellites and the effective date of the financing for the purchase of these satellites. Because the effective date of the new contract for the purchase of additional second-generation satellites did not occur on or prior to February 28, 2013, any party may terminate the Settlement Agreement. If any party terminates the Settlement Agreement, all parties’ rights and obligations under the Settlement Agreement shall terminate. However, the Release Agreement provides that it will survive a termination of the Settlement Agreement. As of June 30, 2014, no party had terminated the Settlement Agreement. | |
Litigation | |
Due to the nature of the Company's business, the Company is involved, from time to time, in various litigation matters or subject to disputes or routine claims regarding its business activities. Legal costs related to these matters are expensed as incurred. In management's opinion, there is no pending litigation, dispute or claim, other than the arbitration award discussed above, that may have a material adverse effect on the Company's financial condition, results of operations or liquidity. |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||||
Related Party Transactions | ' | |||||||||||||||
RELATED PARTY TRANSACTIONS | ||||||||||||||||
Payables to Thermo and other affiliates relate to normal purchase transactions and were $0.3 million and $0.2 million at June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||
Transactions with Thermo | ||||||||||||||||
Thermo incurs certain expenses on behalf of the Company. The table below summarizes the total expense for the periods indicated below (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
General and administrative expenses | $ | 63 | $ | 155 | $ | 63 | $ | 155 | ||||||||
Non-cash expenses | 137 | 137 | 274 | 274 | ||||||||||||
Loss on equity issuance | — | 13,969 | — | 13,969 | ||||||||||||
Total | $ | 200 | $ | 14,261 | $ | 337 | $ | 14,398 | ||||||||
General and administrative expenses are related to expenses incurred by Thermo on the Company’s behalf which are charged to the Company. Non-cash expenses are related to services provided by two executive officers of Thermo (who are also directors of the Company) who receive no cash compensation from the Company; these expenses are treated as a contribution to capital. The Thermo expense charges are based on actual amounts (with no mark-up) incurred or upon allocated employee time. | ||||||||||||||||
Since June 2009, Thermo and its affiliates have also deposited $60.0 million into a contingent equity account to fulfill a condition precedent for borrowing under the Facility Agreement, purchased $20.0 million of the Company’s 5.0% Notes, purchased $11.4 million of the Company's 8.00% Notes Issued in 2009, provided a $2.3 million short-term loan to the Company (which was subsequently converted into nonvoting common stock), and loaned $37.5 million to the Company to fund the debt service reserve account. | ||||||||||||||||
On May 20, 2013, the Company issued 8.00% Notes Issued in 2013 and other consideration in exchange for its outstanding 5.75% Notes. As a result of this exchange, the Company entered into the Consent Agreement, the Common Stock Purchase Agreement and the Common Stock Purchase and Option Agreement (see Note 3 for further discussion). As a result of these transactions, during 2013 the Company recognized a loss on the sale of shares of approximately $16.4 million (which is included in other income/expense on the condensed consolidated statement of operations), representing the difference between the purchase price and the fair value of the Company's common stock (measured as the closing stock price on the date of each sale). | ||||||||||||||||
In August 2013, the Company drew the remaining $1.1 million from the interest earned on the contingent equity account under the Facility Agreement and issued 2,133,656 shares of nonvoting common stock to Thermo in October 2013. The value of the 20% discount on the shares issued to Thermo was recorded as a deferred financing cost on the Company's condensed consolidated balance sheet as of September 30, 2013. | ||||||||||||||||
In July 2013, the Company and Thermo entered into an Amended and Restated Loan Agreement. As a result of this transaction, the Company was required to record this Loan Agreement initially at fair value as the amendment and restatement of the Loan Agreement was considered to be an extinguishment of debt. As of the amendment and restatement date the fair value of the Loan Agreement was $120.1 million. The Company recorded a loss on extinguishment of debt of $66.1 million in its condensed consolidated statement of operations for the third quarter of 2013. The Company computed this loss as the difference between the fair value of the debt, as amended and restated, and its carrying value just prior to amendment and restatement. | ||||||||||||||||
The terms of the Amended and Restated Loan Agreement with Thermo, the Common Stock Purchase and the Common Stock Purchase and Option Agreement were approved by a special committee of the Company's board of directors consisting solely of the Company's unaffiliated directors. The committee, which was represented by independent legal counsel, determined that the terms of these agreements were fair and in the best interests of the Company and its shareholders. | ||||||||||||||||
During the second quarter of 2014, Thermo exercised its warrants that were scheduled to expire in June 2014. The warrants that were exercised in the second quarter of 2014 included warrants for 4.2 million shares issued as partial consideration for the Thermo Loan Agreement in 2009, resulting in the issuance of 4.2 million shares of Globalstar common stock; 4.4 million warrants issued in connection with the annual availability fee for the Contingent Equity Agreement in 2009, resulting in the issuance of 4.4 million shares of Globalstar common stock; and 16.3 million 8.00% Warrants issued in 2009, resulting in the issuance of 14.7 million shares of Globalstar common stock. As of June 30, 2014, approximately 37.1 million warrants issued under the Contingent Equity Agreement and 8.0 million 5.0% Warrants remain outstanding, all of which are held by Thermo and are scheduled to expire between December 2014 and June 2017. | ||||||||||||||||
See Note 3 for further discussion of the Company's debt and financing transactions with Thermo. |
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
INCOME TAXES | |
The Company follows authoritative guidance surrounding accounting for uncertainty in income taxes. It is the Company's policy to recognize interest and applicable penalties, if any, related to uncertain tax positions in income tax expense. For the periods ending June 30, 2014 and December 31, 2013, the net deferred tax assets were fully reserved. | |
In January 2012, the Company’s Canadian subsidiary was notified that its income tax returns for the years ended October 31, 2008 and 2009 had been selected for audit. The Canada Revenue Agency is in the process of reviewing the information provided by the Canadian subsidiary. | |
In December 2013, the Company’s Singapore subsidiary was notified that its income tax returns for the years ended 2009 to 2012 had been selected for audit. The Inland Revenue Authority is in the process of reviewing the information provided by the Singapore subsidiary. | |
Except for the audits noted above, neither the Company nor any of its subsidiaries is currently under audit by the IRS, any state jurisdiction in the United States or any foreign jurisdiction. The Company's corporate U.S. tax returns for 2010 and subsequent years remain subject to examination by tax authorities. State income tax returns are generally subject to examination for a period of three to five years after filing of the respective return. The state impact of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states. | |
The Company has not provided United States income taxes and foreign withholding taxes on approximately $9.7 million of undistributed earnings from certain foreign subsidiaries indefinitely invested outside the United States. Should the Company decide to repatriate these foreign earnings, the Company would have to adjust the income tax provision in the period in which management believes the Company would repatriate the earnings. | |
On September 13, 2013, Treasury and the Internal Revenue Service issued final regulations regarding the deduction and capitalization of expenditures related to tangible property. The final regulations under Internal Revenue Code Sections 162, 167 and 263(a) apply to amounts paid to acquire, produce, or improve tangible property as well as dispositions of such property and are generally effective for tax years beginning on or after January 1, 2014. We have evaluated these regulations and determined they will not have a material impact on our consolidated results of operations, cash flows or financial position. | |
Through a prior foreign acquisition, the Company acquired a tax liability for which the Company has been indemnified by the previous owners. As of June 30, 2014 and December 31, 2013, the Company had recorded a tax liability of $2.3 million and $2.2 million, respectively, to the foreign tax authorities with an offsetting tax receivable from the previous owners. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||
Accumulated other comprehensive income (loss) includes all changes in equity during a period from non-owner sources. The change in accumulated other comprehensive loss for all periods presented resulted from foreign currency translation adjustments. | ||||||||||||||||
The components of accumulated other comprehensive income (loss) were as follows (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Accumulated other comprehensive income (loss), March 31, 2014 and 2013 and December 31, 2013 and 2012, respectively | $ | (364 | ) | $ | (2,327 | ) | $ | 871 | $ | (1,758 | ) | |||||
Other comprehensive income (loss) : | ||||||||||||||||
Foreign currency translation adjustments | 857 | (81 | ) | (378 | ) | (650 | ) | |||||||||
Accumulated other comprehensive income (loss), June 30, 2014 and 2013, respectively | $ | 493 | $ | (2,408 | ) | $ | 493 | $ | (2,408 | ) | ||||||
No amounts were reclassified out of accumulated other comprehensive income (loss) for the periods shown above. |
Stock_Compensation
Stock Compensation | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||
Stock Compensation | ' | |||||||||||
STOCK COMPENSATION | ||||||||||||
The Company’s 2006 Equity Incentive Plan (“Equity Plan”) provides long-term incentives to the Company’s key employees, including officers, directors, consultants and advisers (“Eligible Participants”) and to align stockholder and employee interests. Under the Equity Plan, the Company may grant incentive stock options, restricted stock awards, restricted stock units, and other stock based awards or any combination thereof to Eligible Participants. The Compensation Committee of the Company’s board of directors establishes the terms and conditions of any awards granted under the plans. | ||||||||||||
Grants to Eligible Participants of incentive stock options, restricted stock awards, and restricted stock units during the period are indicated in the table below (in thousands): | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Grants of restricted stock awards and restricted stock units | 127 | 838 | 155 | 838 | ||||||||
Grants of options to purchase common stock | 168 | 319 | 462 | 605 | ||||||||
Total | 295 | 1,157 | 617 | 1,443 | ||||||||
Employee Stock Purchase Plan | ||||||||||||
The Company’s Employee Stock Purchase Plan (the “Plan”) provides eligible employees of the Company and its subsidiaries with an opportunity to acquire shares of its common stock at a discount. The Plan permits eligible employees to purchase shares of common stock during two semi-annual offering periods beginning on June 15 and December 15, unless adjusted by the Board or one of its designated committees (the “Offering Periods”). Eligible employees may purchase shares in an amount of up to 15% of their total compensation per pay period, but may purchase no more than the lesser of $25,000 fair market value of common stock or 500,000 shares of common stock in any calendar year, as measured as of the first day of each applicable Offering Period. The price an employee pays is 85% of the fair market value of the common stock. Fair market value is equal to the lesser of the closing price of a share of common stock on either the first or last day of the Offering Period. | ||||||||||||
For each of the three and six months ended June 30, 2014 and 2013, the Company recorded expense for the fair value of the grant of $0.1 million, respectively, which is reflected in marketing, general and administrative expenses. Through June 30, 2014, the Company had issued 2,486,902 shares of common stock pursuant to this Plan. |
Geographic_Information
Geographic Information | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Geographic Information | ' | |||||||||||||||
GEOGRAPHIC INFORMATION | ||||||||||||||||
The Company attributes equipment revenue to various countries based on the location equipment is sold. Service revenue is attributed to the various countries based on where the service is processed. Long-lived assets consist primarily of property and equipment and are attributed to various countries based on the physical location of the asset at a given fiscal year-end, except for the satellites which are included in the long-lived assets of the United States. The Company’s information by geographic area is as follows (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues: | ||||||||||||||||
Service: | ||||||||||||||||
United States | $ | 11,853 | $ | 11,048 | $ | 22,733 | $ | 22,225 | ||||||||
Canada | 3,636 | 3,035 | 6,869 | 5,677 | ||||||||||||
Europe | 1,401 | 771 | 2,752 | 1,551 | ||||||||||||
Central and South America | 783 | 633 | 1,447 | 1,293 | ||||||||||||
Others | 214 | (78 | ) | 335 | 53 | |||||||||||
Total service revenue | $ | 17,887 | $ | 15,409 | $ | 34,136 | $ | 30,799 | ||||||||
Subscriber equipment: | ||||||||||||||||
United States | 3,515 | 2,828 | 5,829 | 5,068 | ||||||||||||
Canada | 1,487 | 978 | 2,769 | 1,763 | ||||||||||||
Europe | 555 | 401 | 1,087 | 900 | ||||||||||||
Central and South America | 335 | 206 | 493 | 534 | ||||||||||||
Others | 215 | 13 | 216 | 104 | ||||||||||||
Total subscriber equipment revenue | $ | 6,107 | $ | 4,426 | $ | 10,394 | $ | 8,369 | ||||||||
Total revenue | $ | 23,994 | $ | 19,835 | $ | 44,530 | $ | 39,168 | ||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Long-lived assets: | ||||||||||||||||
United States | $ | 1,126,323 | $ | 1,164,358 | ||||||||||||
Canada | 279 | 247 | ||||||||||||||
Europe | 542 | 408 | ||||||||||||||
Central and South America | 3,717 | 3,595 | ||||||||||||||
Others | 1,023 | 1,177 | ||||||||||||||
Total long-lived assets | $ | 1,131,884 | $ | 1,169,785 | ||||||||||||
Loss_Per_Share
Loss Per Share | 6 Months Ended |
Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ' |
Loss Per Share | ' |
LOSS PER SHARE | |
The Company is required to present basic and diluted earnings per share. Basic earnings per share are computed based on the weighted average number of common shares outstanding during the period. Common stock equivalents are included in the calculation of diluted earnings per share only when the effect of their inclusion would be dilutive. | |
For the three and six months ended June 30, 2014 and 2013, diluted net loss per share of common stock was the same as basic net loss per share of common stock, because the effects of potentially dilutive securities are anti-dilutive. |
Supplemental_Condensed_Consoli
Supplemental Condensed Consolidating Financial Information | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
SUPPLEMENTAL CONSOLIDATING FINANCIAL INFORMATION [Abstract] | ' | |||||||||||||||||||
Supplemental Condensed Consolidating Financial Information | ' | |||||||||||||||||||
SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION | ||||||||||||||||||||
In connection with the Company’s issuance of the 8.00% Notes issued in 2013, certain of the Company’s 100% owned domestic subsidiaries (the “Guarantor Subsidiaries”), fully, unconditionally, jointly, and severally guaranteed the payment obligations under the 8.00% Notes Issued in 2013. The following supplemental financial information sets forth, on a consolidating basis, the balance sheets, statements of operations and statements of cash flows for Globalstar, Inc. (“Parent Company”), for the Guarantor Subsidiaries and for the Parent Company’s other subsidiaries (the “Non-Guarantor Subsidiaries”). | ||||||||||||||||||||
The supplemental condensed consolidating financial information has been prepared pursuant to the rules and regulations for condensed financial information and does not include disclosures included in annual financial statements. The principal eliminating entries eliminate investments in subsidiaries, intercompany balances and intercompany revenues and expenses. | ||||||||||||||||||||
Globalstar, Inc. | ||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Operations | ||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Guarantor | ||||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Service revenues | $ | 18,962 | $ | 1,541 | $ | 6,212 | $ | (8,828 | ) | $ | 17,887 | |||||||||
Subscriber equipment sales | 269 | 4,364 | 2,254 | (780 | ) | 6,107 | ||||||||||||||
Total revenue | 19,231 | 5,905 | 8,466 | (9,608 | ) | 23,994 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) | 2,419 | 2,385 | 2,431 | (115 | ) | 7,120 | ||||||||||||||
Cost of subscriber equipment sales | 212 | 3,187 | 2,672 | (1,739 | ) | 4,332 | ||||||||||||||
Cost of subscriber equipment sales - reduction in the value of inventory | 7,258 | 19 | 40 | — | 7,317 | |||||||||||||||
Marketing, general and administrative | 1,908 | 4,192 | 3,294 | (1,147 | ) | 8,247 | ||||||||||||||
Depreciation, amortization, and accretion | 19,135 | 3,084 | 6,530 | (6,736 | ) | 22,013 | ||||||||||||||
Total operating expenses | 30,932 | 12,867 | 14,967 | (9,737 | ) | 49,029 | ||||||||||||||
Loss from operations | (11,701 | ) | (6,962 | ) | (6,501 | ) | 129 | (25,035 | ) | |||||||||||
Other income (expense): | ||||||||||||||||||||
Loss on extinguishment of debt | (16,484 | ) | — | — | — | (16,484 | ) | |||||||||||||
Interest income and expense, net of amounts capitalized | (13,774 | ) | (9 | ) | (81 | ) | — | (13,864 | ) | |||||||||||
Derivative loss | (376,283 | ) | — | — | — | (376,283 | ) | |||||||||||||
Equity in subsidiary earnings | (14,889 | ) | (2,102 | ) | — | 16,991 | — | |||||||||||||
Other | (550 | ) | 44 | (586 | ) | — | (1,092 | ) | ||||||||||||
Total other income (expense) | (421,980 | ) | (2,067 | ) | (667 | ) | 16,991 | (407,723 | ) | |||||||||||
Loss before income taxes | (433,681 | ) | (9,029 | ) | (7,168 | ) | 17,120 | (432,758 | ) | |||||||||||
Income tax expense | 49 | 19 | 904 | — | 972 | |||||||||||||||
Net (loss) income | $ | (433,730 | ) | $ | (9,048 | ) | $ | (8,072 | ) | $ | 17,120 | $ | (433,730 | ) | ||||||
Comprehensive (loss) income | $ | (433,730 | ) | $ | (9,048 | ) | $ | (7,227 | ) | $ | 17,130 | $ | (432,875 | ) | ||||||
Globalstar, Inc. | ||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Operations | ||||||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Guarantor | ||||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Service revenues | $ | 16,598 | $ | 2,479 | $ | 4,269 | $ | (7,937 | ) | $ | 15,409 | |||||||||
Subscriber equipment sales | 54 | 2,903 | 10,196 | (8,727 | ) | 4,426 | ||||||||||||||
Total revenue | 16,652 | 5,382 | 14,465 | (16,664 | ) | 19,835 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) | 2,556 | 2,334 | 2,290 | 25 | 7,205 | |||||||||||||||
Cost of subscriber equipment sales | 1 | 2,388 | 10,204 | (9,006 | ) | 3,587 | ||||||||||||||
Marketing, general and administrative | 1,042 | 3,480 | 3,168 | (1,113 | ) | 6,577 | ||||||||||||||
Depreciation, amortization, and accretion | 17,416 | 5,394 | 5,689 | (6,432 | ) | 22,067 | ||||||||||||||
Total operating expenses | 21,015 | 13,596 | 21,351 | (16,526 | ) | 39,436 | ||||||||||||||
Loss from operations | (4,363 | ) | (8,214 | ) | (6,886 | ) | (138 | ) | (19,601 | ) | ||||||||||
Other income (expense): | ||||||||||||||||||||
Loss on extinguishment of debt | (47,240 | ) | — | — | — | (47,240 | ) | |||||||||||||
Loss on equity issuance | (13,969 | ) | — | — | — | (13,969 | ) | |||||||||||||
Interest income and expense, net of amounts capitalized | (14,669 | ) | (5 | ) | (542 | ) | — | (15,216 | ) | |||||||||||
Derivative loss | (29,903 | ) | — | — | — | (29,903 | ) | |||||||||||||
Equity in subsidiary earnings | (15,724 | ) | 1,794 | — | 13,930 | — | ||||||||||||||
Other | (339 | ) | (65 | ) | 133 | 47 | (224 | ) | ||||||||||||
Total other income (expense) | (121,844 | ) | 1,724 | (409 | ) | 13,977 | (106,552 | ) | ||||||||||||
Loss before income taxes | (126,207 | ) | (6,490 | ) | (7,295 | ) | 13,839 | (126,153 | ) | |||||||||||
Income tax expense | 65 | 21 | 33 | — | 119 | |||||||||||||||
Net (loss) income | $ | (126,272 | ) | $ | (6,511 | ) | $ | (7,328 | ) | $ | 13,839 | $ | (126,272 | ) | ||||||
Comprehensive (loss) income | $ | (126,272 | ) | $ | (6,511 | ) | $ | (7,409 | ) | $ | 13,839 | $ | (126,353 | ) | ||||||
Globalstar, Inc. | ||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Operations | ||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Guarantor | ||||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Service revenues | $ | 37,370 | $ | 3,365 | $ | 10,890 | $ | (17,489 | ) | $ | 34,136 | |||||||||
Subscriber equipment sales | 315 | 7,495 | 4,153 | (1,569 | ) | 10,394 | ||||||||||||||
Total revenue | 37,685 | 10,860 | 15,043 | (19,058 | ) | 44,530 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) | 5,056 | 4,448 | 4,726 | (172 | ) | 14,058 | ||||||||||||||
Cost of subscriber equipment sales | 212 | 5,616 | 4,592 | (3,016 | ) | 7,404 | ||||||||||||||
Cost of subscriber equipment sales - reduction in the value of inventory | 7,258 | 19 | 40 | — | 7,317 | |||||||||||||||
Marketing, general and administrative | 3,596 | 8,144 | 6,502 | (2,226 | ) | 16,016 | ||||||||||||||
Depreciation, amortization, and accretion | 38,457 | 7,710 | 13,139 | (13,960 | ) | 45,346 | ||||||||||||||
Total operating expenses | 54,579 | 25,937 | 28,999 | (19,374 | ) | 90,141 | ||||||||||||||
Loss from operations | (16,894 | ) | (15,077 | ) | (13,956 | ) | 316 | (45,611 | ) | |||||||||||
Other income (expense): | ||||||||||||||||||||
Loss on extinguishment of debt | (26,679 | ) | — | — | — | (26,679 | ) | |||||||||||||
Interest income and expense, net of amounts capitalized | (24,598 | ) | (20 | ) | (168 | ) | — | (24,786 | ) | |||||||||||
Derivative loss | (585,652 | ) | — | — | — | (585,652 | ) | |||||||||||||
Equity in subsidiary earnings | (29,818 | ) | (4,216 | ) | — | 34,034 | — | |||||||||||||
Other | (528 | ) | (9 | ) | 279 | (121 | ) | (379 | ) | |||||||||||
Total other income (expense) | (667,275 | ) | (4,245 | ) | 111 | 33,913 | (637,496 | ) | ||||||||||||
Loss before income taxes | (684,169 | ) | (19,322 | ) | (13,845 | ) | 34,229 | (683,107 | ) | |||||||||||
Income tax expense | 104 | 27 | 1,035 | — | 1,166 | |||||||||||||||
Net (loss) income | $ | (684,273 | ) | $ | (19,349 | ) | $ | (14,880 | ) | $ | 34,229 | $ | (684,273 | ) | ||||||
Comprehensive (loss) income | $ | (684,273 | ) | $ | (19,349 | ) | $ | (15,273 | ) | $ | 34,244 | $ | (684,651 | ) | ||||||
Globalstar, Inc. | ||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Operations | ||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Guarantor | ||||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Service revenues | $ | 31,626 | $ | 6,066 | $ | 8,380 | $ | (15,273 | ) | $ | 30,799 | |||||||||
Subscriber equipment sales | 159 | 5,764 | 12,194 | (9,748 | ) | 8,369 | ||||||||||||||
Total revenue | 31,785 | 11,830 | 20,574 | (25,021 | ) | 39,168 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) | 5,108 | 4,821 | 4,850 | (47 | ) | 14,732 | ||||||||||||||
Cost of subscriber equipment sales | — | 4,714 | 12,504 | (10,691 | ) | 6,527 | ||||||||||||||
Marketing, general and administrative | 2,548 | 7,044 | 6,121 | (2,212 | ) | 13,501 | ||||||||||||||
Depreciation, amortization, and accretion | 32,893 | 11,022 | 10,682 | (12,198 | ) | 42,399 | ||||||||||||||
Total operating expenses | 40,549 | 27,601 | 34,157 | (25,148 | ) | 77,159 | ||||||||||||||
Loss from operations | (8,764 | ) | (15,771 | ) | (13,583 | ) | 127 | (37,991 | ) | |||||||||||
Other income (expense): | ||||||||||||||||||||
Loss on extinguishment of debt | (47,240 | ) | — | — | — | (47,240 | ) | |||||||||||||
Loss on equity issuance | (13,969 | ) | — | — | — | (13,969 | ) | |||||||||||||
Interest income and expense, net of amounts capitalized | (22,092 | ) | (36 | ) | (836 | ) | (4 | ) | (22,968 | ) | ||||||||||
Derivative loss | (29,377 | ) | — | — | — | (29,377 | ) | |||||||||||||
Equity in subsidiary earnings | (30,223 | ) | (1,065 | ) | — | 31,288 | — | |||||||||||||
Other | 436 | 1 | (103 | ) | 83 | 417 | ||||||||||||||
Total other income (expense) | (142,465 | ) | (1,100 | ) | (939 | ) | 31,367 | (113,137 | ) | |||||||||||
Loss before income taxes | (151,229 | ) | (16,871 | ) | (14,522 | ) | 31,494 | (151,128 | ) | |||||||||||
Income tax expense | 121 | 29 | 72 | — | 222 | |||||||||||||||
Net (loss) income | $ | (151,350 | ) | $ | (16,900 | ) | $ | (14,594 | ) | $ | 31,494 | $ | (151,350 | ) | ||||||
Comprehensive (loss) income | $ | (151,350 | ) | $ | (16,900 | ) | $ | (15,244 | ) | $ | 31,494 | $ | (152,000 | ) | ||||||
Globalstar, Inc. | ||||||||||||||||||||
Supplemental Condensed Consolidating Balance Sheet | ||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Elimination | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 19,274 | $ | 1,708 | $ | 2,818 | $ | — | $ | 23,800 | ||||||||||
Accounts receivable | 5,875 | 5,696 | 5,030 | 166 | 16,767 | |||||||||||||||
Intercompany receivables | 701,523 | 428,676 | 22,764 | (1,152,963 | ) | — | ||||||||||||||
Inventory | 2,025 | 12,060 | 14,548 | — | 28,633 | |||||||||||||||
Advances for inventory | 2,181 | 28 | 44 | — | 2,253 | |||||||||||||||
Prepaid expenses and other current assets | 3,655 | 305 | 2,953 | — | 6,913 | |||||||||||||||
Total current assets | 734,533 | 448,473 | 48,157 | (1,152,797 | ) | 78,366 | ||||||||||||||
Property and equipment, net | 1,121,277 | 5,043 | 6,774 | (1,210 | ) | 1,131,884 | ||||||||||||||
Restricted cash | 37,918 | — | — | — | 37,918 | |||||||||||||||
Intercompany notes receivable | 13,178 | — | 4,285 | (17,463 | ) | — | ||||||||||||||
Investment in subsidiaries | (230,707 | ) | 2,114 | 28,033 | 200,560 | — | ||||||||||||||
Deferred financing costs | 69,871 | — | — | — | 69,871 | |||||||||||||||
Intangible and other assets, net | 6,269 | 799 | 2,266 | (15 | ) | 9,319 | ||||||||||||||
Total assets | $ | 1,752,339 | $ | 456,429 | $ | 89,515 | $ | (970,925 | ) | $ | 1,327,358 | |||||||||
LIABILITIES AND | ||||||||||||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current portion of long-term debt | $ | 7,271 | $ | — | $ | — | $ | — | $ | 7,271 | ||||||||||
Accounts payable | 8,542 | 1,544 | 2,288 | — | 12,374 | |||||||||||||||
Accrued contract termination charge | 23,919 | — | — | — | 23,919 | |||||||||||||||
Accrued expenses | 5,711 | 7,710 | 8,568 | — | 21,989 | |||||||||||||||
Intercompany payables | 475,965 | 541,788 | 137,147 | (1,154,900 | ) | — | ||||||||||||||
Payables to affiliates | 264 | — | — | — | 264 | |||||||||||||||
Deferred revenue | 3,625 | 14,920 | 2,926 | — | 21,471 | |||||||||||||||
Total current liabilities | 525,297 | 565,962 | 150,929 | (1,154,900 | ) | 87,288 | ||||||||||||||
Long-term debt, less current portion | 624,816 | — | — | — | 624,816 | |||||||||||||||
Employee benefit obligations | 3,336 | — | — | — | 3,336 | |||||||||||||||
Intercompany notes payable | — | — | 15,321 | (15,321 | ) | — | ||||||||||||||
Derivative liabilities | 773,816 | — | — | — | 773,816 | |||||||||||||||
Deferred revenue | 6,417 | 520 | — | — | 6,937 | |||||||||||||||
Debt restructuring fees | 20,795 | — | — | — | 20,795 | |||||||||||||||
Other non-current liabilities | 2,316 | 292 | 12,216 | — | 14,824 | |||||||||||||||
Total non-current liabilities | 1,431,496 | 812 | 27,537 | (15,321 | ) | 1,444,524 | ||||||||||||||
Stockholders’ equity | (204,454 | ) | (110,345 | ) | (88,951 | ) | 199,296 | (204,454 | ) | |||||||||||
Total liabilities and stockholders’ equity | $ | 1,752,339 | $ | 456,429 | $ | 89,515 | $ | (970,925 | ) | $ | 1,327,358 | |||||||||
Globalstar, Inc. | ||||||||||||||||||||
Supplemental Condensed Consolidating Balance Sheet | ||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
(Audited) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Elimination | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 12,935 | $ | 676 | $ | 3,797 | $ | — | $ | 17,408 | ||||||||||
Accounts receivable | 5,925 | 5,022 | 4,602 | 174 | 15,723 | |||||||||||||||
Intercompany receivables | 651,251 | 414,508 | 18,280 | (1,084,039 | ) | — | ||||||||||||||
Inventory | 1,161 | 14,375 | 16,281 | — | 31,817 | |||||||||||||||
Advances for inventory | 9,287 | 28 | 44 | — | 9,359 | |||||||||||||||
Prepaid expenses and other current assets | 4,316 | 311 | 2,432 | — | 7,059 | |||||||||||||||
Total current assets | 684,875 | 434,920 | 45,436 | (1,083,865 | ) | 81,366 | ||||||||||||||
Property and equipment, net | 1,152,734 | 11,621 | 6,889 | (1,459 | ) | 1,169,785 | ||||||||||||||
Restricted cash | 37,918 | — | — | — | 37,918 | |||||||||||||||
Intercompany notes receivable | 13,629 | — | 4,285 | (17,914 | ) | — | ||||||||||||||
Investment in subsidiaries | (209,592 | ) | 7,242 | — | 202,350 | — | ||||||||||||||
Deferred financing costs | 76,436 | — | — | — | 76,436 | |||||||||||||||
Intangible and other assets, net | 3,964 | 1,028 | 2,125 | (14 | ) | 7,103 | ||||||||||||||
Total assets | $ | 1,759,964 | $ | 454,811 | $ | 58,735 | $ | (900,902 | ) | $ | 1,372,608 | |||||||||
LIABILITIES AND | ||||||||||||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current portion of long-term debt | $ | 4,046 | $ | — | $ | — | $ | — | $ | 4,046 | ||||||||||
Accounts payable | 9,906 | 2,041 | 2,680 | — | 14,627 | |||||||||||||||
Accrued contract termination charge | 24,133 | — | — | — | 24,133 | |||||||||||||||
Accrued expenses | 6,160 | 8,203 | 8,337 | — | 22,700 | |||||||||||||||
Intercompany payables | 435,707 | 521,763 | 128,496 | (1,085,966 | ) | — | ||||||||||||||
Payables to affiliates | 202 | — | — | — | 202 | |||||||||||||||
Derivative liabilities | 57,048 | — | — | — | 57,048 | |||||||||||||||
Deferred revenue | 1,843 | 13,094 | 2,347 | — | 17,284 | |||||||||||||||
Total current liabilities | 539,045 | 545,101 | 141,860 | (1,085,966 | ) | 140,040 | ||||||||||||||
Long-term debt, less current portion | 665,236 | — | — | — | 665,236 | |||||||||||||||
Employee benefit obligations | 3,529 | — | — | — | 3,529 | |||||||||||||||
Intercompany notes payable | — | — | 15,772 | (15,772 | ) | — | ||||||||||||||
Derivative liabilities | 405,478 | — | — | — | 405,478 | |||||||||||||||
Deferred revenue | 6,583 | 496 | — | — | 7,079 | |||||||||||||||
Debt restructuring fees | 20,795 | — | — | — | 20,795 | |||||||||||||||
Other non-current liabilities | 2,543 | 297 | 10,856 | — | 13,696 | |||||||||||||||
Total non-current liabilities | 1,104,164 | 793 | 26,628 | (15,772 | ) | 1,115,813 | ||||||||||||||
Stockholders’ equity | 116,755 | (91,083 | ) | (109,753 | ) | 200,836 | 116,755 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 1,759,964 | $ | 454,811 | $ | 58,735 | $ | (900,902 | ) | $ | 1,372,608 | |||||||||
Globalstar, Inc. | ||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Guarantor | ||||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 920 | $ | 1,240 | $ | 193 | $ | — | $ | 2,353 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Second-generation satellites, ground and related launch costs | (3,315 | ) | — | — | — | (3,315 | ) | |||||||||||||
Property and equipment additions | (88 | ) | (208 | ) | (1,187 | ) | — | (1,483 | ) | |||||||||||
Net cash used in investing activities | (3,403 | ) | (208 | ) | (1,187 | ) | — | (4,798 | ) | |||||||||||
Cash flows provided by (used in) financing activities: | ||||||||||||||||||||
Proceeds from issuance of common stock and exercise of warrants | 8,986 | — | — | — | 8,986 | |||||||||||||||
Payment of deferred financing costs | (164 | ) | — | — | — | (164 | ) | |||||||||||||
Net cash used in financing activities | 8,822 | — | — | — | 8,822 | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 15 | — | 15 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | 6,339 | 1,032 | (979 | ) | — | 6,392 | ||||||||||||||
Cash and cash equivalents at beginning of period | 12,935 | 676 | 3,797 | — | 17,408 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 19,274 | $ | 1,708 | $ | 2,818 | $ | — | $ | 23,800 | ||||||||||
Globalstar, Inc. | ||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Guarantor | ||||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Net cash provided used in operating activities | $ | (2,575 | ) | $ | 58 | $ | 691 | $ | — | $ | (1,826 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Second-generation satellites, ground and related launch costs | (27,666 | ) | — | — | — | (27,666 | ) | |||||||||||||
Property and equipment additions | — | (309 | ) | (260 | ) | — | (569 | ) | ||||||||||||
Investment in businesses | (355 | ) | — | — | — | (355 | ) | |||||||||||||
Restricted cash | 8,625 | — | — | — | 8,625 | |||||||||||||||
Net cash from investing activities | (19,396 | ) | (309 | ) | (260 | ) | — | (19,965 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from issuance of common stock and stock options | 1,206 | — | — | — | 1,206 | |||||||||||||||
Payments to reduce principal amount of exchanged 5.75% Notes | (13,544 | ) | — | — | — | (13,544 | ) | |||||||||||||
Payments to reduce principal amount of 5.75% Notes not exchanged | (6,250 | ) | — | — | — | (6,250 | ) | |||||||||||||
Payments to lenders and other fees associated with exchange | (2,482 | ) | — | — | — | (2,482 | ) | |||||||||||||
Proceeds from equity issuance to related party | 39,000 | — | — | — | 39,000 | |||||||||||||||
Payment of deferred financing costs | (1,481 | ) | — | — | — | (1,481 | ) | |||||||||||||
Net cash used in financing activities | 16,449 | — | — | — | 16,449 | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (213 | ) | — | (213 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (5,522 | ) | (251 | ) | 218 | — | (5,555 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 10,220 | 251 | 1,321 | — | 11,792 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 4,698 | $ | — | $ | 1,539 | $ | — | $ | 6,237 | ||||||||||
Basis_of_Presentation_Basis_of
Basis of Presentation Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This standard requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is currently evaluating the impact this standard will have on its condensed consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing reporting. |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||||||||
Property and Equipment | ' | |||||||||||||||
Property and equipment consists of the following (in thousands): | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Globalstar System: | ||||||||||||||||
Space component | ||||||||||||||||
Second-generation satellites in service | $ | 1,212,099 | $ | 1,212,099 | ||||||||||||
Prepaid long-lead items | 17,040 | 17,040 | ||||||||||||||
Second-generation satellite, on-ground spare | 32,365 | 32,365 | ||||||||||||||
Ground component | 48,766 | 48,378 | ||||||||||||||
Construction in progress: | ||||||||||||||||
Space component | 72 | — | ||||||||||||||
Ground component | 121,144 | 116,377 | ||||||||||||||
Other | 1,445 | 1,115 | ||||||||||||||
Total Globalstar System | 1,432,931 | 1,427,374 | ||||||||||||||
Internally developed and purchased software | 15,921 | 14,931 | ||||||||||||||
Equipment | 12,531 | 12,385 | ||||||||||||||
Land and buildings | 3,866 | 3,768 | ||||||||||||||
Leasehold improvements | 1,672 | 1,644 | ||||||||||||||
Total property and equipment | 1,466,921 | 1,460,102 | ||||||||||||||
Accumulated depreciation | (335,037 | ) | (290,317 | ) | ||||||||||||
Total property and equipment, net | $ | 1,131,884 | $ | 1,169,785 | ||||||||||||
Capitalized Interest | ' | |||||||||||||||
The following tables summarize capitalized interest for the periods indicated below (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | |||||||||||||
Interest cost eligible to be capitalized | $ | 11,361 | $ | 11,927 | $ | 23,615 | $ | 25,732 | ||||||||
Interest cost recorded in interest expense, net | (9,395 | ) | (7,484 | ) | (19,808 | ) | (14,151 | ) | ||||||||
Net interest capitalized | $ | 1,966 | $ | 4,443 | $ | 3,807 | $ | 11,581 | ||||||||
Depreciation Expense | ' | |||||||||||||||
The following table summarizes depreciation expense for the periods indicated below (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | |||||||||||||
Depreciation Expense | $ | 21,377 | $ | 21,817 | $ | 44,386 | $ | 41,690 | ||||||||
LongTerm_Debt_and_Other_Financ1
Long-Term Debt and Other Financing Arrangements (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Long-term Debt | ' | |||||||||||||||
Long-term debt consists of the following (in thousands): | ||||||||||||||||
June 30, 2014 | 31-Dec-13 | |||||||||||||||
Principal | Carrying | Principal | Carrying | |||||||||||||
Amount | Value | Amount | Value | |||||||||||||
Facility Agreement | $ | 586,342 | $ | 586,342 | $ | 586,342 | $ | 586,342 | ||||||||
Thermo Loan Agreement | 64,119 | 27,721 | 60,383 | 22,854 | ||||||||||||
8.00% Convertible Senior Notes Issued in 2013 | 29,840 | 18,024 | 46,971 | 26,291 | ||||||||||||
8.00% Convertible Senior Unsecured Notes Issued in 2009 | — | — | 51,652 | 33,795 | ||||||||||||
Total Debt | 680,301 | 632,087 | 745,348 | 669,282 | ||||||||||||
Less: Current Portion | 7,271 | 7,271 | 4,046 | 4,046 | ||||||||||||
Long-Term Debt | $ | 673,030 | $ | 624,816 | $ | 741,302 | $ | 665,236 | ||||||||
Summary of Warrants Outstanding | ' | |||||||||||||||
As a result of the Company’s financing arrangements described above, as of June 30, 2014 and December 31, 2013, warrants were outstanding to purchase 45.1 million and 93.5 million shares, respectively, of the Company’s common stock as shown in the table below: | ||||||||||||||||
Outstanding Warrants | Strike Price | |||||||||||||||
June 30, | December 31, | June 30, | December 31, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Contingent Equity Agreement (1) | 37,088,418 | 41,467,980 | $ | 0.01 | $ | 0.01 | ||||||||||
Thermo Loan Agreement (2) | — | 4,205,608 | — | 0.01 | ||||||||||||
5.0% Notes (3) | 8,000,000 | 8,000,000 | 0.32 | 0.32 | ||||||||||||
8.00% Notes Issued in 2009 (4) | — | 39,842,813 | — | 0.32 | ||||||||||||
45,088,418 | 93,516,401 | |||||||||||||||
-1 | Pursuant to the terms of the Contingent Equity Agreement, the Company has issued to Thermo warrants to purchase shares of common stock pursuant to the annual availability fee and subsequent reset provisions in the Contingent Equity Agreement. These warrants have a five year exercise period from issuance. These warrants were issued between June 2009 and June 2012, and the exercise periods expire between June 2014 and June 2017. As of June 30, 2014, Thermo exercised warrants to purchase approximately 4.4 million of these shares prior to the expiration of the associated warrants. | |||||||||||||||
-2 | As consideration for the Loan Agreement with Thermo, the Company issued Thermo warrants to purchase shares of common stock. The exercise period of the warrants issued in connection with the Thermo Loan Agreement was five years from issuance, which expired in June 2014. Thermo exercised all of these warrants in the second quarter of 2014. | |||||||||||||||
-3 | The 5.0% Warrants are exercisable until June 2016, which is five years after their issuance. | |||||||||||||||
-4 | The exercise period for the 8.00% Warrants began on December 19, 2009 and ended on June 14, 2014. All 8.00% Warrants were exercised in the second quarter of 2014. |
Derivatives_Tables
Derivatives (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||
Schedule of Fair Values of Derivative Instruments | ' | |||||||
The following tables disclose the fair values and classification of the derivative instruments on the Company’s condensed consolidated balance sheets (in thousands): | ||||||||
June 30, | 31-Dec-13 | |||||||
2014 | ||||||||
Intangible and other assets: | ||||||||
Interest rate cap | $ | 79 | $ | 185 | ||||
Total intangible and other assets | $ | 79 | $ | 185 | ||||
Derivative liabilities, current: | ||||||||
Warrants issued with 8.00% Notes Issued in 2009 | $ | — | $ | (57,048 | ) | |||
Derivative liabilities, non-current: | ||||||||
Compound embedded derivative with 8.00% Notes Issued in 2009 | $ | — | $ | (66,022 | ) | |||
Compound embedded derivative with 8.00% Notes Issued in 2013 | (183,963 | ) | (109,794 | ) | ||||
Compound embedded derivative with the Amended and Restated Thermo Loan Agreement | (589,853 | ) | (229,662 | ) | ||||
Total derivative liabilities, non-current: | (773,816 | ) | (405,478 | ) | ||||
Total derivative liabilities, current and non-current | $ | (773,816 | ) | $ | (462,526 | ) | ||
Schedule of Derivative Gains (Losses) | ' | |||||||
The following table discloses the changes in value during the three and six months ended June 30, 2014 and 2013 recorded as derivative loss on the Company’s condensed consolidated statement of operations (in thousands): | ||||||||
Three Months Ended | ||||||||
June 30, 2014 | June 30, 2013 | |||||||
Interest rate cap | $ | (58 | ) | $ | 101 | |||
Warrants issued with 8.00% Notes Issued in 2009 | (31,725 | ) | (23,411 | ) | ||||
Compound embedded derivative with 8.00% Notes Issued in 2009 | 6,681 | (7,127 | ) | |||||
Contingent put feature embedded in the 5.0% Convertible Senior Notes | — | 1,439 | ||||||
Compound embedded derivative with 8.00% Notes Issued in 2013 | (93,471 | ) | (905 | ) | ||||
Compound embedded derivative with the Amended and Restated Thermo Loan Agreement | (257,710 | ) | — | |||||
Total derivative loss | $ | (376,283 | ) | $ | (29,903 | ) | ||
Six Months Ended | ||||||||
June 30, 2014 | June 30, 2013 | |||||||
Interest rate cap | $ | (105 | ) | $ | 116 | |||
Warrants issued with 8.00% Notes Issued in 2009 | (67,523 | ) | (22,626 | ) | ||||
Compound embedded derivative with 8.00% Notes Issued in 2009 | (16,406 | ) | (7,247 | ) | ||||
Contingent put feature embedded in the 5.0% Convertible Senior Notes | — | 1,285 | ||||||
Compound embedded derivative with 8.00% Notes Issued in 2013 | (141,427 | ) | (905 | ) | ||||
Compound embedded derivative with the Amended and Restated Thermo Loan Agreement | (360,191 | ) | — | |||||
Total derivative loss | $ | (585,652 | ) | $ | (29,377 | ) |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | |||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | |||||||||||||||||
The following table provides a summary of the financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||||
Fair Value Measurements at June 30, 2014: | ||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||
Balance | ||||||||||||||||||
Assets: | ||||||||||||||||||
Interest rate cap | $ | — | $ | 79 | $ | — | $ | 79 | ||||||||||
Total assets measured at fair value | $ | — | $ | 79 | $ | — | $ | 79 | ||||||||||
Liabilities: | ||||||||||||||||||
Derivative Liabilities: | ||||||||||||||||||
Compound embedded derivative with 8.00% Notes Issued in 2013 | $ | — | $ | — | (183,963 | ) | $ | (183,963 | ) | |||||||||
Compound embedded derivative with the Amended and Restated Thermo Loan Agreement | — | — | (589,853 | ) | (589,853 | ) | ||||||||||||
Total Derivative Liabilities | — | — | (773,816 | ) | (773,816 | ) | ||||||||||||
Current Liabilities: | ||||||||||||||||||
Liability for contingent consideration | — | — | (1,545 | ) | (1,545 | ) | ||||||||||||
Total liabilities measured at fair value | $ | — | $ | — | $ | (775,361 | ) | $ | (775,361 | ) | ||||||||
Fair Value Measurements at December 31, 2013: | ||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||
Balance | ||||||||||||||||||
Assets: | ||||||||||||||||||
Interest rate cap | $ | — | $ | 185 | $ | — | $ | 185 | ||||||||||
Total assets measured at fair value | $ | — | $ | 185 | $ | — | $ | 185 | ||||||||||
Liabilities: | ||||||||||||||||||
Derivative Liabilities: | ||||||||||||||||||
Warrants issued with 8.00% Notes Issued in 2009 | $ | — | $ | — | $ | (57,048 | ) | $ | (57,048 | ) | ||||||||
Compound embedded derivative with 8.00% Notes Issued in 2009 | — | — | (66,022 | ) | (66,022 | ) | ||||||||||||
Compound embedded derivative with 8.00% Notes Issued in 2013 | — | — | (109,794 | ) | (109,794 | ) | ||||||||||||
Compound embedded derivative with the Amended and Restated Thermo Loan Agreement | — | — | (229,662 | ) | (229,662 | ) | ||||||||||||
Total Derivative Liabilities | — | — | (462,526 | ) | (462,526 | ) | ||||||||||||
Current Liabilities: | ||||||||||||||||||
Liability for contingent consideration | — | — | (1,923 | ) | (1,923 | ) | ||||||||||||
Total liabilities measured at fair value | $ | — | $ | — | $ | (464,449 | ) | $ | (464,449 | ) | ||||||||
Schedule of Significant Quantitative Level 3 Inputs Utilized | ' | |||||||||||||||||
The significant quantitative Level 3 inputs utilized in the valuation models as of June 30, 2014 and December 31, 2013 are shown in the tables below: | ||||||||||||||||||
Level 3 Inputs at June 30, 2014: | ||||||||||||||||||
Stock Price | Risk-Free | Note | Warrant | Market Price of Common Stock | ||||||||||||||
Volatility | Interest | Conversion | Exercise | |||||||||||||||
Rate | Price | Price | ||||||||||||||||
Compound embedded derivative with 8.00% Notes Issued in 2013 | 65% - 95% | 1.2 | % | $ | 0.73 | N/A | $ | 4.25 | ||||||||||
Compound embedded derivative with the Amended and Restated Thermo Loan Agreement | 50% - 100% | 2.4 | % | $ | 0.73 | N/A | $ | 4.25 | ||||||||||
Level 3 Inputs at December 31, 2013: | ||||||||||||||||||
Stock Price | Risk-Free | Note | Warrant | Market Price of Common Stock | ||||||||||||||
Volatility | Interest | Conversion | Exercise | |||||||||||||||
Rate | Price | Price | ||||||||||||||||
Compound embedded derivative with 8.00% Notes Issued in 2009 | 65% - 100% | 1.5 | % | $ | 1.14 | N/A | $ | 1.75 | ||||||||||
Warrants issued with 8.00% Notes Issued in 2009 | 100 | % | 0.1 | % | N/A | $ | 0.32 | $ | 1.75 | |||||||||
Compound embedded derivative with 8.00% Notes Issued in 2013 | 65% - 100% | 1.5 | % | $ | 0.73 | N/A | $ | 1.75 | ||||||||||
Compound embedded derivative with the Amended and Restated Thermo Loan Agreement | 65% - 100% | 3 | % | $ | 0.73 | N/A | $ | 1.75 | ||||||||||
Reconciliation of Liabilities Measured at Fair Value on Recurring Basis | ' | |||||||||||||||||
The following table presents a rollforward for all liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2014 as follows (in thousands): | ||||||||||||||||||
Balance at March 31, 2014 | $ | (633,332 | ) | |||||||||||||||
Earnout payments made related to liability for contingent consideration | 377 | |||||||||||||||||
Change in fair value of contingent consideration | (467 | ) | ||||||||||||||||
Derivative adjustment related to conversions and exercises | 234,286 | |||||||||||||||||
Unrealized loss, included in derivative loss | (376,225 | ) | ||||||||||||||||
Balance at June 30, 2014 | $ | (775,361 | ) | |||||||||||||||
Balance at December 31, 2013 | $ | (464,449 | ) | |||||||||||||||
Earnout payments made related to liability for contingent consideration | 998 | |||||||||||||||||
Change in fair value of contingent consideration | (620 | ) | ||||||||||||||||
Derivative adjustment related to conversions and exercises | 274,257 | |||||||||||||||||
Unrealized loss, included in derivative loss | (585,547 | ) | ||||||||||||||||
Balance at June 30, 2014 | $ | (775,361 | ) |
Accrued_Expenses_and_NonCurren1
Accrued Expenses and Non-Current Liabilities (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Schedule of Accrued Expenses | ' | |||||||
Accrued expenses consist of the following (in thousands): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Accrued interest | $ | 897 | $ | 1,200 | ||||
Accrued compensation and benefits | 2,947 | 3,927 | ||||||
Accrued property and other taxes | 5,957 | 5,744 | ||||||
Accrued customer liabilities and deposits | 2,654 | 2,663 | ||||||
Accrued professional and other service provider fees | 1,684 | 705 | ||||||
Accrued liability for contingent consideration | 1,545 | 1,922 | ||||||
Accrued commissions | 1,008 | 1,316 | ||||||
Accrued telecommunications expenses | 1,322 | 649 | ||||||
Other accrued expenses | 3,975 | 4,574 | ||||||
Total accrued expenses | $ | 21,989 | $ | 22,700 | ||||
Schedule of Other Non-current Liabilities | ' | |||||||
Noncurrent liabilities consist of the following (in thousands): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Long-term accrued interest | $ | 170 | $ | 451 | ||||
Asset retirement obligation | 1,133 | 1,083 | ||||||
Deferred rent and capital lease obligations | 459 | 456 | ||||||
Liabilities related to the Cooperative Endeavor Agreement with the State of Louisiana | 1,608 | 1,575 | ||||||
Uncertain income tax positions | 6,937 | 5,918 | ||||||
Foreign tax contingencies | 4,517 | 4,213 | ||||||
Total noncurrent liabilities | $ | 14,824 | $ | 13,696 | ||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||||
Related Party Transactions | ' | |||||||||||||||
Thermo incurs certain expenses on behalf of the Company. The table below summarizes the total expense for the periods indicated below (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
General and administrative expenses | $ | 63 | $ | 155 | $ | 63 | $ | 155 | ||||||||
Non-cash expenses | 137 | 137 | 274 | 274 | ||||||||||||
Loss on equity issuance | — | 13,969 | — | 13,969 | ||||||||||||
Total | $ | 200 | $ | 14,261 | $ | 337 | $ | 14,398 | ||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||
Components of Accumulated Other Comprehensive Loss | ' | |||||||||||||||
The components of accumulated other comprehensive income (loss) were as follows (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Accumulated other comprehensive income (loss), March 31, 2014 and 2013 and December 31, 2013 and 2012, respectively | $ | (364 | ) | $ | (2,327 | ) | $ | 871 | $ | (1,758 | ) | |||||
Other comprehensive income (loss) : | ||||||||||||||||
Foreign currency translation adjustments | 857 | (81 | ) | (378 | ) | (650 | ) | |||||||||
Accumulated other comprehensive income (loss), June 30, 2014 and 2013, respectively | $ | 493 | $ | (2,408 | ) | $ | 493 | $ | (2,408 | ) | ||||||
Stock_Compensation_Tables
Stock Compensation (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||
Grants to Eligible Participants of Incentive Stock Options, Restricted Stock Awards, and Restricted Stock Units | ' | |||||||||||
Grants to Eligible Participants of incentive stock options, restricted stock awards, and restricted stock units during the period are indicated in the table below (in thousands): | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Grants of restricted stock awards and restricted stock units | 127 | 838 | 155 | 838 | ||||||||
Grants of options to purchase common stock | 168 | 319 | 462 | 605 | ||||||||
Total | 295 | 1,157 | 617 | 1,443 | ||||||||
Geographic_Information_Tables
Geographic Information (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Company's Information on Revenues and Long-lived Assets by Geographic Area | ' | |||||||||||||||
The Company’s information by geographic area is as follows (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues: | ||||||||||||||||
Service: | ||||||||||||||||
United States | $ | 11,853 | $ | 11,048 | $ | 22,733 | $ | 22,225 | ||||||||
Canada | 3,636 | 3,035 | 6,869 | 5,677 | ||||||||||||
Europe | 1,401 | 771 | 2,752 | 1,551 | ||||||||||||
Central and South America | 783 | 633 | 1,447 | 1,293 | ||||||||||||
Others | 214 | (78 | ) | 335 | 53 | |||||||||||
Total service revenue | $ | 17,887 | $ | 15,409 | $ | 34,136 | $ | 30,799 | ||||||||
Subscriber equipment: | ||||||||||||||||
United States | 3,515 | 2,828 | 5,829 | 5,068 | ||||||||||||
Canada | 1,487 | 978 | 2,769 | 1,763 | ||||||||||||
Europe | 555 | 401 | 1,087 | 900 | ||||||||||||
Central and South America | 335 | 206 | 493 | 534 | ||||||||||||
Others | 215 | 13 | 216 | 104 | ||||||||||||
Total subscriber equipment revenue | $ | 6,107 | $ | 4,426 | $ | 10,394 | $ | 8,369 | ||||||||
Total revenue | $ | 23,994 | $ | 19,835 | $ | 44,530 | $ | 39,168 | ||||||||
June 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Long-lived assets: | ||||||||||||||||
United States | $ | 1,126,323 | $ | 1,164,358 | ||||||||||||
Canada | 279 | 247 | ||||||||||||||
Europe | 542 | 408 | ||||||||||||||
Central and South America | 3,717 | 3,595 | ||||||||||||||
Others | 1,023 | 1,177 | ||||||||||||||
Total long-lived assets | $ | 1,131,884 | $ | 1,169,785 | ||||||||||||
Supplemental_Condensed_Consoli1
Supplemental Condensed Consolidating Financial Information (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
SUPPLEMENTAL CONSOLIDATING FINANCIAL INFORMATION [Abstract] | ' | |||||||||||||||||||
Supplemental Condensed Consolidating Statement of Operations | ' | |||||||||||||||||||
Globalstar, Inc. | ||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Operations | ||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Guarantor | ||||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Service revenues | $ | 18,962 | $ | 1,541 | $ | 6,212 | $ | (8,828 | ) | $ | 17,887 | |||||||||
Subscriber equipment sales | 269 | 4,364 | 2,254 | (780 | ) | 6,107 | ||||||||||||||
Total revenue | 19,231 | 5,905 | 8,466 | (9,608 | ) | 23,994 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) | 2,419 | 2,385 | 2,431 | (115 | ) | 7,120 | ||||||||||||||
Cost of subscriber equipment sales | 212 | 3,187 | 2,672 | (1,739 | ) | 4,332 | ||||||||||||||
Cost of subscriber equipment sales - reduction in the value of inventory | 7,258 | 19 | 40 | — | 7,317 | |||||||||||||||
Marketing, general and administrative | 1,908 | 4,192 | 3,294 | (1,147 | ) | 8,247 | ||||||||||||||
Depreciation, amortization, and accretion | 19,135 | 3,084 | 6,530 | (6,736 | ) | 22,013 | ||||||||||||||
Total operating expenses | 30,932 | 12,867 | 14,967 | (9,737 | ) | 49,029 | ||||||||||||||
Loss from operations | (11,701 | ) | (6,962 | ) | (6,501 | ) | 129 | (25,035 | ) | |||||||||||
Other income (expense): | ||||||||||||||||||||
Loss on extinguishment of debt | (16,484 | ) | — | — | — | (16,484 | ) | |||||||||||||
Interest income and expense, net of amounts capitalized | (13,774 | ) | (9 | ) | (81 | ) | — | (13,864 | ) | |||||||||||
Derivative loss | (376,283 | ) | — | — | — | (376,283 | ) | |||||||||||||
Equity in subsidiary earnings | (14,889 | ) | (2,102 | ) | — | 16,991 | — | |||||||||||||
Other | (550 | ) | 44 | (586 | ) | — | (1,092 | ) | ||||||||||||
Total other income (expense) | (421,980 | ) | (2,067 | ) | (667 | ) | 16,991 | (407,723 | ) | |||||||||||
Loss before income taxes | (433,681 | ) | (9,029 | ) | (7,168 | ) | 17,120 | (432,758 | ) | |||||||||||
Income tax expense | 49 | 19 | 904 | — | 972 | |||||||||||||||
Net (loss) income | $ | (433,730 | ) | $ | (9,048 | ) | $ | (8,072 | ) | $ | 17,120 | $ | (433,730 | ) | ||||||
Comprehensive (loss) income | $ | (433,730 | ) | $ | (9,048 | ) | $ | (7,227 | ) | $ | 17,130 | $ | (432,875 | ) | ||||||
Globalstar, Inc. | ||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Operations | ||||||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Guarantor | ||||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Service revenues | $ | 16,598 | $ | 2,479 | $ | 4,269 | $ | (7,937 | ) | $ | 15,409 | |||||||||
Subscriber equipment sales | 54 | 2,903 | 10,196 | (8,727 | ) | 4,426 | ||||||||||||||
Total revenue | 16,652 | 5,382 | 14,465 | (16,664 | ) | 19,835 | ||||||||||||||
Operating expenses: | ||||||||||||||||||||
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) | 2,556 | 2,334 | 2,290 | 25 | 7,205 | |||||||||||||||
Cost of subscriber equipment sales | 1 | 2,388 | 10,204 | (9,006 | ) | 3,587 | ||||||||||||||
Marketing, general and administrative | 1,042 | 3,480 | 3,168 | (1,113 | ) | 6,577 | ||||||||||||||
Depreciation, amortization, and accretion | 17,416 | 5,394 | 5,689 | (6,432 | ) | 22,067 | ||||||||||||||
Total operating expenses | 21,015 | 13,596 | 21,351 | (16,526 | ) | 39,436 | ||||||||||||||
Loss from operations | (4,363 | ) | (8,214 | ) | (6,886 | ) | (138 | ) | (19,601 | ) | ||||||||||
Other income (expense): | ||||||||||||||||||||
Loss on extinguishment of debt | (47,240 | ) | — | — | — | (47,240 | ) | |||||||||||||
Loss on equity issuance | (13,969 | ) | — | — | — | (13,969 | ) | |||||||||||||
Interest income and expense, net of amounts capitalized | (14,669 | ) | (5 | ) | (542 | ) | — | (15,216 | ) | |||||||||||
Derivative loss | (29,903 | ) | — | — | — | (29,903 | ) | |||||||||||||
Equity in subsidiary earnings | (15,724 | ) | 1,794 | — | 13,930 | — | ||||||||||||||
Other | (339 | ) | (65 | ) | 133 | 47 | (224 | ) | ||||||||||||
Total other income (expense) | (121,844 | ) | 1,724 | (409 | ) | 13,977 | (106,552 | ) | ||||||||||||
Loss before income taxes | (126,207 | ) | (6,490 | ) | (7,295 | ) | 13,839 | (126,153 | ) | |||||||||||
Income tax expense | 65 | 21 | 33 | — | 119 | |||||||||||||||
Net (loss) income | $ | (126,272 | ) | $ | (6,511 | ) | $ | (7,328 | ) | $ | 13,839 | $ | (126,272 | ) | ||||||
Comprehensive (loss) income | $ | (126,272 | ) | $ | (6,511 | ) | $ | (7,409 | ) | $ | 13,839 | $ | (126,353 | ) | ||||||
Supplemental Condensed Consolidating Balance Sheet | ' | |||||||||||||||||||
Globalstar, Inc. | ||||||||||||||||||||
Supplemental Condensed Consolidating Balance Sheet | ||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Elimination | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 19,274 | $ | 1,708 | $ | 2,818 | $ | — | $ | 23,800 | ||||||||||
Accounts receivable | 5,875 | 5,696 | 5,030 | 166 | 16,767 | |||||||||||||||
Intercompany receivables | 701,523 | 428,676 | 22,764 | (1,152,963 | ) | — | ||||||||||||||
Inventory | 2,025 | 12,060 | 14,548 | — | 28,633 | |||||||||||||||
Advances for inventory | 2,181 | 28 | 44 | — | 2,253 | |||||||||||||||
Prepaid expenses and other current assets | 3,655 | 305 | 2,953 | — | 6,913 | |||||||||||||||
Total current assets | 734,533 | 448,473 | 48,157 | (1,152,797 | ) | 78,366 | ||||||||||||||
Property and equipment, net | 1,121,277 | 5,043 | 6,774 | (1,210 | ) | 1,131,884 | ||||||||||||||
Restricted cash | 37,918 | — | — | — | 37,918 | |||||||||||||||
Intercompany notes receivable | 13,178 | — | 4,285 | (17,463 | ) | — | ||||||||||||||
Investment in subsidiaries | (230,707 | ) | 2,114 | 28,033 | 200,560 | — | ||||||||||||||
Deferred financing costs | 69,871 | — | — | — | 69,871 | |||||||||||||||
Intangible and other assets, net | 6,269 | 799 | 2,266 | (15 | ) | 9,319 | ||||||||||||||
Total assets | $ | 1,752,339 | $ | 456,429 | $ | 89,515 | $ | (970,925 | ) | $ | 1,327,358 | |||||||||
LIABILITIES AND | ||||||||||||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current portion of long-term debt | $ | 7,271 | $ | — | $ | — | $ | — | $ | 7,271 | ||||||||||
Accounts payable | 8,542 | 1,544 | 2,288 | — | 12,374 | |||||||||||||||
Accrued contract termination charge | 23,919 | — | — | — | 23,919 | |||||||||||||||
Accrued expenses | 5,711 | 7,710 | 8,568 | — | 21,989 | |||||||||||||||
Intercompany payables | 475,965 | 541,788 | 137,147 | (1,154,900 | ) | — | ||||||||||||||
Payables to affiliates | 264 | — | — | — | 264 | |||||||||||||||
Deferred revenue | 3,625 | 14,920 | 2,926 | — | 21,471 | |||||||||||||||
Total current liabilities | 525,297 | 565,962 | 150,929 | (1,154,900 | ) | 87,288 | ||||||||||||||
Long-term debt, less current portion | 624,816 | — | — | — | 624,816 | |||||||||||||||
Employee benefit obligations | 3,336 | — | — | — | 3,336 | |||||||||||||||
Intercompany notes payable | — | — | 15,321 | (15,321 | ) | — | ||||||||||||||
Derivative liabilities | 773,816 | — | — | — | 773,816 | |||||||||||||||
Deferred revenue | 6,417 | 520 | — | — | 6,937 | |||||||||||||||
Debt restructuring fees | 20,795 | — | — | — | 20,795 | |||||||||||||||
Other non-current liabilities | 2,316 | 292 | 12,216 | — | 14,824 | |||||||||||||||
Total non-current liabilities | 1,431,496 | 812 | 27,537 | (15,321 | ) | 1,444,524 | ||||||||||||||
Stockholders’ equity | (204,454 | ) | (110,345 | ) | (88,951 | ) | 199,296 | (204,454 | ) | |||||||||||
Total liabilities and stockholders’ equity | $ | 1,752,339 | $ | 456,429 | $ | 89,515 | $ | (970,925 | ) | $ | 1,327,358 | |||||||||
Globalstar, Inc. | ||||||||||||||||||||
Supplemental Condensed Consolidating Balance Sheet | ||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
(Audited) | ||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Elimination | Consolidated | ||||||||||||||||
Company | Subsidiaries | Subsidiaries | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 12,935 | $ | 676 | $ | 3,797 | $ | — | $ | 17,408 | ||||||||||
Accounts receivable | 5,925 | 5,022 | 4,602 | 174 | 15,723 | |||||||||||||||
Intercompany receivables | 651,251 | 414,508 | 18,280 | (1,084,039 | ) | — | ||||||||||||||
Inventory | 1,161 | 14,375 | 16,281 | — | 31,817 | |||||||||||||||
Advances for inventory | 9,287 | 28 | 44 | — | 9,359 | |||||||||||||||
Prepaid expenses and other current assets | 4,316 | 311 | 2,432 | — | 7,059 | |||||||||||||||
Total current assets | 684,875 | 434,920 | 45,436 | (1,083,865 | ) | 81,366 | ||||||||||||||
Property and equipment, net | 1,152,734 | 11,621 | 6,889 | (1,459 | ) | 1,169,785 | ||||||||||||||
Restricted cash | 37,918 | — | — | — | 37,918 | |||||||||||||||
Intercompany notes receivable | 13,629 | — | 4,285 | (17,914 | ) | — | ||||||||||||||
Investment in subsidiaries | (209,592 | ) | 7,242 | — | 202,350 | — | ||||||||||||||
Deferred financing costs | 76,436 | — | — | — | 76,436 | |||||||||||||||
Intangible and other assets, net | 3,964 | 1,028 | 2,125 | (14 | ) | 7,103 | ||||||||||||||
Total assets | $ | 1,759,964 | $ | 454,811 | $ | 58,735 | $ | (900,902 | ) | $ | 1,372,608 | |||||||||
LIABILITIES AND | ||||||||||||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current portion of long-term debt | $ | 4,046 | $ | — | $ | — | $ | — | $ | 4,046 | ||||||||||
Accounts payable | 9,906 | 2,041 | 2,680 | — | 14,627 | |||||||||||||||
Accrued contract termination charge | 24,133 | — | — | — | 24,133 | |||||||||||||||
Accrued expenses | 6,160 | 8,203 | 8,337 | — | 22,700 | |||||||||||||||
Intercompany payables | 435,707 | 521,763 | 128,496 | (1,085,966 | ) | — | ||||||||||||||
Payables to affiliates | 202 | — | — | — | 202 | |||||||||||||||
Derivative liabilities | 57,048 | — | — | — | 57,048 | |||||||||||||||
Deferred revenue | 1,843 | 13,094 | 2,347 | — | 17,284 | |||||||||||||||
Total current liabilities | 539,045 | 545,101 | 141,860 | (1,085,966 | ) | 140,040 | ||||||||||||||
Long-term debt, less current portion | 665,236 | — | — | — | 665,236 | |||||||||||||||
Employee benefit obligations | 3,529 | — | — | — | 3,529 | |||||||||||||||
Intercompany notes payable | — | — | 15,772 | (15,772 | ) | — | ||||||||||||||
Derivative liabilities | 405,478 | — | — | — | 405,478 | |||||||||||||||
Deferred revenue | 6,583 | 496 | — | — | 7,079 | |||||||||||||||
Debt restructuring fees | 20,795 | — | — | — | 20,795 | |||||||||||||||
Other non-current liabilities | 2,543 | 297 | 10,856 | — | 13,696 | |||||||||||||||
Total non-current liabilities | 1,104,164 | 793 | 26,628 | (15,772 | ) | 1,115,813 | ||||||||||||||
Stockholders’ equity | 116,755 | (91,083 | ) | (109,753 | ) | 200,836 | 116,755 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 1,759,964 | $ | 454,811 | $ | 58,735 | $ | (900,902 | ) | $ | 1,372,608 | |||||||||
Supplemental Condensed Consolidating Statement of Cash Flows | ' | |||||||||||||||||||
Globalstar, Inc. | ||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Guarantor | ||||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 920 | $ | 1,240 | $ | 193 | $ | — | $ | 2,353 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Second-generation satellites, ground and related launch costs | (3,315 | ) | — | — | — | (3,315 | ) | |||||||||||||
Property and equipment additions | (88 | ) | (208 | ) | (1,187 | ) | — | (1,483 | ) | |||||||||||
Net cash used in investing activities | (3,403 | ) | (208 | ) | (1,187 | ) | — | (4,798 | ) | |||||||||||
Cash flows provided by (used in) financing activities: | ||||||||||||||||||||
Proceeds from issuance of common stock and exercise of warrants | 8,986 | — | — | — | 8,986 | |||||||||||||||
Payment of deferred financing costs | (164 | ) | — | — | — | (164 | ) | |||||||||||||
Net cash used in financing activities | 8,822 | — | — | — | 8,822 | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 15 | — | 15 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | 6,339 | 1,032 | (979 | ) | — | 6,392 | ||||||||||||||
Cash and cash equivalents at beginning of period | 12,935 | 676 | 3,797 | — | 17,408 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 19,274 | $ | 1,708 | $ | 2,818 | $ | — | $ | 23,800 | ||||||||||
Globalstar, Inc. | ||||||||||||||||||||
Supplemental Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||||||
Company | Subsidiaries | Guarantor | ||||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Net cash provided used in operating activities | $ | (2,575 | ) | $ | 58 | $ | 691 | $ | — | $ | (1,826 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Second-generation satellites, ground and related launch costs | (27,666 | ) | — | — | — | (27,666 | ) | |||||||||||||
Property and equipment additions | — | (309 | ) | (260 | ) | — | (569 | ) | ||||||||||||
Investment in businesses | (355 | ) | — | — | — | (355 | ) | |||||||||||||
Restricted cash | 8,625 | — | — | — | 8,625 | |||||||||||||||
Net cash from investing activities | (19,396 | ) | (309 | ) | (260 | ) | — | (19,965 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from issuance of common stock and stock options | 1,206 | — | — | — | 1,206 | |||||||||||||||
Payments to reduce principal amount of exchanged 5.75% Notes | (13,544 | ) | — | — | — | (13,544 | ) | |||||||||||||
Payments to reduce principal amount of 5.75% Notes not exchanged | (6,250 | ) | — | — | — | (6,250 | ) | |||||||||||||
Payments to lenders and other fees associated with exchange | (2,482 | ) | — | — | — | (2,482 | ) | |||||||||||||
Proceeds from equity issuance to related party | 39,000 | — | — | — | 39,000 | |||||||||||||||
Payment of deferred financing costs | (1,481 | ) | — | — | — | (1,481 | ) | |||||||||||||
Net cash used in financing activities | 16,449 | — | — | — | 16,449 | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (213 | ) | — | (213 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (5,522 | ) | (251 | ) | 218 | — | (5,555 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 10,220 | 251 | 1,321 | — | 11,792 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 4,698 | $ | — | $ | 1,539 | $ | — | $ | 6,237 | ||||||||||
Schedule_of_Property_and_Equip
Schedule of Property and Equipment (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $1,466,921 | $1,460,102 |
Accumulated depreciation and amortization | -335,037 | -290,317 |
Property, Plant and Equipment, Net, Total | 1,131,884 | 1,169,785 |
Internally Developed and Purchased Software | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 15,921 | 14,931 |
Equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 12,531 | 12,385 |
Land and Buildings | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 3,866 | 3,768 |
Leasehold Improvements | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 1,672 | 1,644 |
Global Star System | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 1,432,931 | 1,427,374 |
Global Star System | Space Component | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 48,766 | 48,378 |
Global Star System | Second-generation satellites in service | Space Component | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 1,212,099 | 1,212,099 |
Global Star System | Prepaid long-lead items | Space Component | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 17,040 | 17,040 |
Global Star System | Second-generation satellite, on-ground spare | Space Component | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 32,365 | 32,365 |
Global Star System | Construction in Progress | Space Component | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 72 | ' |
Global Star System | Construction in Progress | Ground Component | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 121,144 | 116,377 |
Global Star System | Construction in Progress | Other | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $1,445 | $1,115 |
Capitalized_Interest_and_Depre
Capitalized Interest and Depreciation Expense (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Interest Costs Incurred [Abstract] | ' | ' | ' | ' |
Interest cost eligible to be capitalized | $11,361 | $11,927 | $23,615 | $25,732 |
Interest cost recorded in interest expense, net | -9,395 | -7,484 | -19,808 | -14,151 |
Net interest capitalized | 1,966 | 4,443 | 3,807 | 11,581 |
Depreciation Expense | $21,377 | $21,817 | $44,386 | $41,690 |
Schedule_of_Longterm_Debt_Deta
Schedule of Long-term Debt (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | 20-May-13 |
Principal Amount | ' | ' | ' |
Total Debt | $680,301,000 | $745,348,000 | ' |
Less: Current Portion | 7,271,000 | 4,046,000 | ' |
Long-Term Debt | 673,030,000 | 741,302,000 | ' |
Carrying Value | ' | ' | ' |
Total Debt | 632,087,000 | 669,282,000 | ' |
Less: Current Portion | 7,271,000 | 4,046,000 | ' |
Long-Term Debt | 624,816,000 | 665,236,000 | ' |
Facility Agreement | ' | ' | ' |
Principal Amount | ' | ' | ' |
Total Debt | 586,342,000 | 586,342,000 | ' |
Carrying Value | ' | ' | ' |
Total Debt | 586,342,000 | 586,342,000 | ' |
Thermo Loan Agreement | ' | ' | ' |
Principal Amount | ' | ' | ' |
Total Debt | 64,119,000 | 60,383,000 | ' |
Carrying Value | ' | ' | ' |
Total Debt | 27,721,000 | 22,854,000 | ' |
8.00% Convertible Senior Notes Issued in 2013 | ' | ' | ' |
Principal Amount | ' | ' | ' |
Total Debt | 29,840,000 | 46,971,000 | 54,600,000 |
Carrying Value | ' | ' | ' |
Total Debt | 18,024,000 | 26,291,000 | ' |
8.00% Convertible Senior Unsecured Notes Issued in 2009 | ' | ' | ' |
Principal Amount | ' | ' | ' |
Total Debt | 0 | 51,652,000 | ' |
Carrying Value | ' | ' | ' |
Total Debt | $0 | $33,795,000 | ' |
Facility_Agreement_Details
Facility Agreement (Details) (Facility Agreement, USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Debt Instrument [Line Items] | ' |
Interest above LIBOR rate | 2.75% |
Percentage of guarantee provided by French export credit agency to lending syndicate | 95.00% |
Debt service reserve account | $37.90 |
Domestic Subsidiaries | ' |
Debt Instrument [Line Items] | ' |
Percentage of equity pledged as collateral | 100.00% |
Foreign Subsidiaries | ' |
Debt Instrument [Line Items] | ' |
Percentage of equity pledged as collateral | 65.00% |
Minimum | ' |
Debt Instrument [Line Items] | ' |
Interest rate increase | 0.50% |
Maximum | ' |
Debt Instrument [Line Items] | ' |
Interest rate increase | 5.75% |
Thermo_Loan_Agreement_Details
Thermo Loan Agreement (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2011 | Jun. 30, 2009 | ||
Thermo | Thermo Loan Agreement | Thermo Loan Agreement | Thermo Loan Agreement | Thermo Loan Agreement | Thermo Loan Agreement | |||||
Thermo | Thermo | Thermo | ||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ||
Warrants outstanding (warrants) | 45,088,418 | 93,516,401 | ' | 0 | [1] | 4,205,608 | [1] | ' | ' | ' |
Maximum borrowing capacity | ' | ' | $37,500,000 | ' | ' | ' | $37,500,000 | $25,000,000 | ||
Loan interest rate | ' | ' | ' | ' | ' | 12.00% | ' | ' | ||
Maturity period after full payment of Facility Agreement | ' | ' | ' | ' | ' | '6 months | ' | ' | ||
Outstanding interest | ' | ' | ' | ' | ' | $26,600,000 | ' | ' | ||
[1] | As consideration for the Loan Agreement with Thermo, the Company issued Thermo warrants to purchase shares of common stock. The exercise period of the warrants issued in connection with the Thermo Loan Agreement was five years from issuance, which expired in June 2014. Thermo exercised all of these warrants in the second quarter of 2014. |
800_Convertible_Senior_Notes_I
8.00% Convertible Senior Notes Issued in 2013 (Details) (USD $) | 6 Months Ended | 0 Months Ended | 6 Months Ended | 13 Months Ended | |||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | 20-May-13 | Mar. 20, 2014 | Jul. 19, 2013 | 20-May-13 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | 20-May-13 | |
5.75% Convertible Senior Unsecured Notes | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of principal redeemed in exchange agreement | ' | ' | ' | 91.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, payable in cash | ' | ' | ' | ' | ' | ' | ' | 5.75% | 5.75% | 5.75% | ' | ' | 5.75% |
Debt | $680,301,000 | ' | $745,348,000 | ' | ' | ' | ' | $29,840,000 | $29,840,000 | ' | $46,971,000 | ' | $54,600,000 |
Loan interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | 8.00% |
Conversion price per share of common stock (USD per share) | ' | ' | ' | ' | ' | ' | ' | $0.73 | $0.73 | ' | ' | ' | $0.80 |
Number of shares of common stock convertible into (shares) | ' | ' | ' | ' | ' | ' | 1,250 | ' | ' | ' | ' | ' | ' |
Principal converted | $69,232,000 | $8,615,000 | ' | ' | $7,000,000 | $7,000,000 | $1,000 | ' | $25,600,000 | ' | ' | ' | ' |
Interest rate, payable in additional notes | ' | ' | ' | ' | ' | ' | ' | 2.25% | 2.25% | ' | ' | ' | ' |
Maturity date | ' | ' | ' | ' | ' | ' | ' | 1-Apr-28 | ' | ' | ' | ' | ' |
Percentage of debt that is convertible | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' |
Price trigger for convertibility | ' | ' | ' | ' | ' | ' | $0.50 | ' | ' | ' | ' | ' | ' |
Percentage of principal converted | ' | ' | ' | ' | 15.00% | 12.90% | ' | ' | ' | ' | ' | ' | ' |
Conversion of notes into shares of common stock | ' | ' | ' | ' | 14,600,000 | 14,300,000 | ' | ' | 48,100,000 | ' | ' | ' | ' |
800_Convertible_Senior_Notes_I1
8.00% Convertible Senior Notes Issued in 2009 (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 13 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
20-May-13 | 21-May-13 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Apr. 15, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | 20-May-13 | Jun. 30, 2009 | ||||
8.00% Convertible Senior Unsecured Notes Issued in 2009 | 8.00% Convertible Senior Unsecured Notes Issued in 2009 | 8.00% Convertible Senior Unsecured Notes Issued in 2009 | 8.00% Convertible Senior Unsecured Notes Issued in 2009 | 8.00% Convertible Senior Unsecured Notes Issued in 2009 | 8.00% Convertible Senior Unsecured Notes Issued in 2009 | |||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Aggregate principal amount convertible notes maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $55,000,000 | |||
Convertible notes stated interest rate | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | 8.00% | ' | 8.00% | 8.00% | |||
Warrants exercised associated with conversion of notes (shares) | ' | ' | ' | 38,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Proceeds from warrant exercises | ' | ' | ' | 7,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of common stock shares to be purchased (in shares) | ' | ' | ' | 45,088,418 | 45,088,418 | 93,516,401 | 45,088,418 | ' | 0 | [1] | 0 | [1] | 39,842,813 | [1] | ' | 15,300,000 |
Number of shares issued (in shares) | 78,125,000 | 15,625,000 | 28,125,000 | ' | ' | 121,900,000 | ' | ' | 14,700,000 | ' | ' | ' | ' | |||
Proceeds from common stock | 25,000,000 | 5,000,000 | 9,000,000 | ' | ' | 39,000,000 | 65,000,000 | ' | ' | ' | ' | ' | ' | |||
Convertible debt, percentage of stock price trigger | ' | ' | ' | ' | 200.00% | ' | ' | ' | ' | 200.00% | ' | ' | ' | |||
Convertible debt, consecutive trading days threshold | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | '30 days | ' | ' | ' | |||
Debt conversion amount | ' | ' | ' | ' | ' | ' | ' | $37,800,000 | ' | ' | ' | ' | ' | |||
Conversion of notes into shares of common stock | ' | ' | ' | ' | ' | ' | ' | 34,500,000 | ' | ' | ' | ' | ' | |||
Exercise price of warrants (USD per warrant) | ' | ' | ' | ' | ' | ' | ' | 0.32 | 0 | [1] | 0 | [1] | 0.32 | [1] | ' | ' |
Conversion price per share of common stock (USD per share) | ' | ' | ' | ' | ' | ' | ' | $1.14 | ' | ' | ' | ' | ' | |||
[1] | The exercise period for the 8.00% Warrants began on December 19, 2009 and ended on June 14, 2014. All 8.00% Warrants were exercised in the second quarter of 2014. |
Warrants_Outstanding_Details
Warrants Outstanding (Details) | 0 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | |||||||||||||||||||
20-May-13 | 21-May-13 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Apr. 15, 2014 | Dec. 31, 2013 | 20-May-13 | Jun. 30, 2009 | Jun. 30, 2014 | Jun. 30, 2014 | |||||||||
Contingent Equity Agreement | Contingent Equity Agreement | Thermo Loan Agreement | Thermo Loan Agreement | 5.00% Convertible Senior Unsecured Notes | 5.00% Convertible Senior Unsecured Notes | 8.00% Convertible Senior Unsecured Notes Issued in 2009 | 8.00% Convertible Senior Unsecured Notes Issued in 2009 | 8.00% Convertible Senior Unsecured Notes Issued in 2009 | 8.00% Convertible Senior Unsecured Notes Issued in 2009 | 8.00% Convertible Senior Unsecured Notes Issued in 2009 | Thermo | Thermo | ||||||||||||||
Thermo Loan Agreement | ||||||||||||||||||||||||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Warrants outstanding (warrants) | ' | ' | ' | 45,088,418 | 93,516,401 | 37,088,418 | [1] | 41,467,980 | [1] | 0 | [2] | 4,205,608 | [2] | 8,000,000 | [3] | 8,000,000 | [3] | 0 | [4] | ' | 39,842,813 | [4] | ' | 15,300,000 | ' | ' |
Exercise price of warrants (USD per warrant) | ' | ' | ' | ' | ' | 0.01 | [1] | 0.01 | [1] | 0 | [2] | 0.01 | [2] | 0.32 | [3] | 0.32 | [3] | 0 | [4] | 0.32 | 0.32 | [4] | ' | ' | ' | ' |
Expiration period | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Number of warrants exercised (in warrants) | 78,125,000 | 15,625,000 | 28,125,000 | ' | 121,900,000 | ' | ' | ' | ' | ' | ' | 14,700,000 | ' | ' | ' | ' | 4,400,000 | 4,200,000 | ||||||||
Loan interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | 8.00% | ' | ' | 8.00% | 8.00% | ' | 12.00% | ||||||||
[1] | Pursuant to the terms of the Contingent Equity Agreement, the Company has issued to Thermo warrants to purchase shares of common stock pursuant to the annual availability fee and subsequent reset provisions in the Contingent Equity Agreement. These warrants have a five year exercise period from issuance. These warrants were issued between June 2009 and June 2012, and the exercise periods expire between June 2014 and June 2017. As of JuneB 30, 2014, Thermo exercised warrants to purchase approximately 4.4 million of these shares prior to the expiration of the associated warrants. | |||||||||||||||||||||||||
[2] | As consideration for the Loan Agreement with Thermo, the Company issued Thermo warrants to purchase shares of common stock. The exercise period of the warrants issued in connection with the Thermo Loan Agreement was five years from issuance, which expired in June 2014. Thermo exercised all of these warrants in the second quarter of 2014. | |||||||||||||||||||||||||
[3] | The 5.0% Warrants are exercisable until June 2016, which is five years after their issuance. | |||||||||||||||||||||||||
[4] | The exercise period for the 8.00% Warrants began on December 19, 2009 and ended on June 14, 2014. All 8.00% Warrants were exercised in the second quarter of 2014. |
Consent_Agreement_Details
Consent Agreement (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 13 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||
20-May-13 | 21-May-13 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | 20-May-13 | 20-May-13 | Jun. 30, 2014 | 20-May-13 | 20-May-13 | 20-May-13 | 20-May-13 | 20-May-13 | |
Nonvoting Common Stock | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | ||||||
Thermo Capital Partners LLC | Thermo Capital Partners LLC | Thermo Capital Partners LLC | Thermo Capital Partners LLC | Thermo Capital Partners LLC | Thermo Capital Partners LLC | Thermo Capital Partners LLC | |||||||||||
Scenario One | Scenario Two | Scenario Three | Scenario Four | ||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, payable in cash | ' | ' | ' | ' | ' | ' | 5.75% | 5.75% | ' | 5.75% | ' | ' | 5.75% | ' | ' | ' | ' |
Loan interest rate | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | 8.00% | ' | ' | ' | ' | ' | ' | ' |
Compensating balance, amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,000,000 | ' | ' | ' | ' | ' |
Amount of payment in exchange transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' |
Amount of third party credit enhancements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | 20,000,000 | 20,000,000 | 40,000,000 |
Proceeds from common stock | $25,000,000 | $5,000,000 | $9,000,000 | $39,000,000 | $65,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued (in shares) | 78,125,000 | 15,625,000 | 28,125,000 | 121,900,000 | ' | 171,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common_Stock_Purchase_Agreemen
Common Stock Purchase Agreement (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 13 Months Ended | |||||
20-May-13 | 21-May-13 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 27, 2013 | Oct. 14, 2013 | 20-May-13 | |
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued (in shares) | 78,125,000 | 15,625,000 | 28,125,000 | ' | ' | 121,900,000 | ' | ' | ' | ' |
Proceeds from common stock | $25,000,000 | $5,000,000 | $9,000,000 | ' | ' | $39,000,000 | $65,000,000 | ' | ' | ' |
Shares issued, price per share (USD per share) | ' | ' | ' | ' | ' | ' | ' | $0.52 | $0.52 | $0.32 |
Loss on sale of shares | ' | ' | ' | ($2,400,000) | ($14,000,000) | ' | ' | ' | ' | ' |
Nonvoting Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued (in shares) | ' | ' | ' | ' | ' | ' | 171,900,000 | ' | ' | ' |
The_Common_Stock_Purchase_and_
The Common Stock Purchase and Option Agreement (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Dec. 27, 2013 | Oct. 14, 2013 | Aug. 31, 2013 | Jul. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Nov. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | 20-May-13 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Option One | Option Two | Thermo Capital Partners LLC | |||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued per option agreement (in shares) | 26,000,000 | 11,538,461 | ' | ' | ' | ' | 38,461,538 | ' | ' | ' | ' | ' | 24,000,000 |
Shares issued, price per share (USD per share) | $0.52 | $0.52 | ' | ' | ' | ' | ' | ' | ' | $0.32 | ' | ' | ' |
Proceeds from equity issuance to related party | $13,500,000 | ' | $6,500,000 | $6,000,000 | ' | ' | ' | $0 | $39,000,000 | ' | ' | ' | $12,500,000 |
Value of shares issued per option agreement | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 13,500,000 | 11,500,000 | ' |
Percentage of average closing price | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on sale of shares | ' | ' | ' | ' | ($2,400,000) | ($14,000,000) | ' | ' | ' | ' | ' | ' | ' |
Terrapin_Opportunity_LP_Common
Terrapin Opportunity, L.P. Common Stock Purchase Agreement (Details) (USD $) | 0 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | 13 Months Ended | 6 Months Ended | |||
20-May-13 | 21-May-13 | Dec. 28, 2012 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 28, 2012 | Jun. 30, 2014 | |
draw_down_notice | Terrapin [Member] | ||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum value of shares required to be purchased per terms of stock purchase agreement | ' | ' | ' | ' | $24,000,000 | ' | $24,000,000 | $30,000,000 | ' |
Stock Purchase Agreement Term | ' | ' | '24 months | ' | ' | ' | ' | ' | ' |
Number of draw down notices (in notices) | ' | ' | ' | ' | 36 | ' | ' | ' | ' |
Draw down period | ' | ' | ' | ' | '10 days | ' | ' | ' | ' |
Minimum discount percentage per each share sold under the stock sold agreement | ' | ' | ' | ' | ' | ' | ' | 3.50% | ' |
Maximum discount percentage per each share sold under the stock purchase agreement | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' |
Maximum beneficial ownership percentage allowed per terms of stock purchase agreement | ' | ' | ' | ' | ' | ' | ' | 9.90% | ' |
Number of shares issued (in shares) | 78,125,000 | 15,625,000 | ' | 28,125,000 | ' | 121,900,000 | ' | ' | 6,100,000 |
Proceeds from common stock | $25,000,000 | $5,000,000 | ' | $9,000,000 | ' | $39,000,000 | $65,000,000 | ' | $6,000,000 |
Schedule_of_Fair_Value_of_Deri
Schedule of Fair Value of Derivative Instruments (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative assets: | ' | ' |
Intangible and other assets | $79 | $185 |
Derivative liabilities: | ' | ' |
Derivative liabilities, current | 0 | -57,048 |
Derivative liabilities, non-current | -773,816 | -405,478 |
Total derivative liabilities, current and non-current | -773,816 | -462,526 |
Interest rate cap | ' | ' |
Derivative assets: | ' | ' |
Intangible and other assets | 79 | 185 |
Warrants issued with 8.00% Notes Issued in 2009 | ' | ' |
Derivative liabilities: | ' | ' |
Derivative liabilities, current | 0 | -57,048 |
Compound embedded derivative with 8.00% Notes Issued in 2009 | ' | ' |
Derivative liabilities: | ' | ' |
Derivative liabilities, non-current | 0 | -66,022 |
Compound embedded derivative with 8.00% Notes Issued in 2013 | ' | ' |
Derivative liabilities: | ' | ' |
Derivative liabilities, non-current | -183,963 | -109,794 |
Compound embedded derivative with the Amended and Restated Thermo Loan Agreement | ' | ' |
Derivative liabilities: | ' | ' |
Derivative liabilities, non-current | ($589,853) | ($229,662) |
Schedule_of_Derivative_Gain_Lo
Schedule of Derivative Gain (Loss) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative loss | ($376,283) | ($29,903) | ($585,652) | ($29,377) |
Interest rate cap | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative loss | -58 | 101 | -105 | 116 |
Warrants issued with 8.00% Notes Issued in 2009 | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative loss | -31,725 | -23,411 | -67,523 | -22,626 |
Compound embedded derivative with 8.00% Notes Issued in 2009 | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative loss | 6,681 | -7,127 | -16,406 | -7,247 |
Contingent put feature embedded in the 5.0% Convertible Senior Notes | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative loss | 0 | 1,439 | 0 | 1,285 |
Compound embedded derivative with 8.00% Notes Issued in 2013 | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative loss | -93,471 | -905 | -141,427 | -905 |
Compound embedded derivative with the Amended and Restated Thermo Loan Agreement | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Derivative loss | ($257,710) | $0 | ($360,191) | $0 |
Derivatives_Details
Derivatives (Details) (USD $) | Jun. 30, 2014 | 20-May-13 | Jun. 30, 2009 | Jun. 30, 2013 | 20-May-13 | Jun. 30, 2014 | Jun. 30, 2009 | Jun. 30, 2009 | Jun. 30, 2009 | Jun. 30, 2009 |
In Millions, unless otherwise specified | 8.00% Convertible Senior Unsecured Notes Issued in 2009 | 8.00% Convertible Senior Unsecured Notes Issued in 2009 | 8.00% Convertible Senior Unsecured Notes Issued in 2009 | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | 5.00% Convertible Senior Unsecured Notes | Interest rate cap | Interest rate cap | Interest rate cap | Interest rate cap |
contracts | Minimum | Maximum | Six-month LIBOR Rate | |||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Interest rate cap agreements (in contracts) | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' |
Maturity period | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' |
Interest cap rate notional amount | ' | ' | ' | ' | ' | ' | ' | $14.80 | $586.30 | ' |
Base rate to be capped, should the Base Rate not exceed 6.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.50% |
Interest on outstanding amounts on the Facility Agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.50% |
Base rate to be lowered from LIBOR, should the base rate exceed 6.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% |
Fee for interest rate cap agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12.40 |
Loan interest rate | 8.00% | 8.00% | 8.00% | 8.00% | 8.00% | 5.00% | ' | ' | ' | ' |
Financial_Assets_and_Liabiliti
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Interest rate cap | $79 | $185 |
Total derivative liabilities, current and non-current | -773,816 | -462,526 |
Interest rate cap | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Interest rate cap | 79 | 185 |
Fair Value, Measurements, Recurring | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | 79 | 185 |
Total derivative liabilities, current and non-current | -773,816 | -462,526 |
Liability for contingent consideration | -1,545 | -1,923 |
Total liabilities measured at fair value | -775,361 | -464,449 |
Fair Value, Measurements, Recurring | Interest rate cap | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Interest rate cap | 79 | 185 |
Fair Value, Measurements, Recurring | Warrants issued with 8.00% Notes Issued in 2009 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total derivative liabilities, current and non-current | ' | -57,048 |
Fair Value, Measurements, Recurring | Compound embedded derivative with 8.00% Notes Issued in 2009 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total derivative liabilities, current and non-current | ' | -66,022 |
Fair Value, Measurements, Recurring | Compound embedded derivative with 8.00% Notes Issued in 2013 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total derivative liabilities, current and non-current | -183,963 | -109,794 |
Fair Value, Measurements, Recurring | Compound embedded derivative with the Amended and Restated Thermo Loan Agreement | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total derivative liabilities, current and non-current | -589,853 | -229,662 |
Fair Value, Measurements, Recurring | (Level 1) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | ' | ' |
Total derivative liabilities, current and non-current | ' | ' |
Liability for contingent consideration | 0 | 0 |
Total liabilities measured at fair value | ' | ' |
Fair Value, Measurements, Recurring | (Level 1) | Interest rate cap | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Interest rate cap | 0 | 0 |
Fair Value, Measurements, Recurring | (Level 1) | Warrants issued with 8.00% Notes Issued in 2009 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total derivative liabilities, current and non-current | ' | 0 |
Fair Value, Measurements, Recurring | (Level 1) | Compound embedded derivative with 8.00% Notes Issued in 2009 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total derivative liabilities, current and non-current | ' | 0 |
Fair Value, Measurements, Recurring | (Level 1) | Compound embedded derivative with 8.00% Notes Issued in 2013 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total derivative liabilities, current and non-current | 0 | 0 |
Fair Value, Measurements, Recurring | (Level 1) | Compound embedded derivative with the Amended and Restated Thermo Loan Agreement | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total derivative liabilities, current and non-current | 0 | 0 |
Fair Value, Measurements, Recurring | (Level 2) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | 79 | 185 |
Total derivative liabilities, current and non-current | ' | ' |
Liability for contingent consideration | 0 | 0 |
Total liabilities measured at fair value | ' | ' |
Fair Value, Measurements, Recurring | (Level 2) | Interest rate cap | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Interest rate cap | 79 | 185 |
Fair Value, Measurements, Recurring | (Level 2) | Warrants issued with 8.00% Notes Issued in 2009 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total derivative liabilities, current and non-current | ' | 0 |
Fair Value, Measurements, Recurring | (Level 2) | Compound embedded derivative with 8.00% Notes Issued in 2009 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total derivative liabilities, current and non-current | ' | 0 |
Fair Value, Measurements, Recurring | (Level 2) | Compound embedded derivative with 8.00% Notes Issued in 2013 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total derivative liabilities, current and non-current | 0 | 0 |
Fair Value, Measurements, Recurring | (Level 2) | Compound embedded derivative with the Amended and Restated Thermo Loan Agreement | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total derivative liabilities, current and non-current | 0 | 0 |
Fair Value, Measurements, Recurring | (Level 3) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | ' | ' |
Total derivative liabilities, current and non-current | -773,816 | -462,526 |
Liability for contingent consideration | -1,545 | -1,923 |
Total liabilities measured at fair value | -775,361 | -464,449 |
Fair Value, Measurements, Recurring | (Level 3) | Interest rate cap | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Interest rate cap | 0 | 0 |
Fair Value, Measurements, Recurring | (Level 3) | Warrants issued with 8.00% Notes Issued in 2009 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total derivative liabilities, current and non-current | ' | -57,048 |
Fair Value, Measurements, Recurring | (Level 3) | Compound embedded derivative with 8.00% Notes Issued in 2009 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total derivative liabilities, current and non-current | ' | -66,022 |
Fair Value, Measurements, Recurring | (Level 3) | Compound embedded derivative with 8.00% Notes Issued in 2013 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total derivative liabilities, current and non-current | -183,963 | -109,794 |
Fair Value, Measurements, Recurring | (Level 3) | Compound embedded derivative with the Amended and Restated Thermo Loan Agreement | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total derivative liabilities, current and non-current | ($589,853) | ($229,662) |
Schedule_of_Significant_Quanti
Schedule of Significant Quantitative Level 3 Inputs Utilized (Details) (USD $) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Compound embedded derivative with 8.00% Notes Issued in 2013 | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Risk-Free Interest Rate | 1.20% | 1.50% |
Note Conversion Price/Warrant Exercise Price (USD per share) | $0.73 | $0.73 |
Market Price of Common Stock | $4.25 | $1.75 |
Compound embedded derivative with 8.00% Notes Issued in 2013 | Minimum | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Stock Price Volatility | 65.00% | 65.00% |
Compound embedded derivative with 8.00% Notes Issued in 2013 | Maximum | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Stock Price Volatility | 95.00% | 100.00% |
Compound embedded derivative with the Amended and Restated Thermo Loan Agreement | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Risk-Free Interest Rate | 2.40% | 3.00% |
Note Conversion Price/Warrant Exercise Price (USD per share) | $0.73 | $0.73 |
Market Price of Common Stock | $4.25 | $1.75 |
Compound embedded derivative with the Amended and Restated Thermo Loan Agreement | Minimum | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Stock Price Volatility | 50.00% | 65.00% |
Compound embedded derivative with the Amended and Restated Thermo Loan Agreement | Maximum | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Stock Price Volatility | 100.00% | 100.00% |
Compound embedded derivative with 8.00% Notes Issued in 2009 | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Risk-Free Interest Rate | ' | 1.50% |
Note Conversion Price/Warrant Exercise Price (USD per share) | ' | $1.14 |
Market Price of Common Stock | ' | $1.75 |
Compound embedded derivative with 8.00% Notes Issued in 2009 | Minimum | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Stock Price Volatility | ' | 65.00% |
Note Conversion Price/Warrant Exercise Price (USD per share) | $1 | ' |
Compound embedded derivative with 8.00% Notes Issued in 2009 | Maximum | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Stock Price Volatility | ' | 100.00% |
Warrants issued with 8.00% Notes Issued in 2009 | ' | ' |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' |
Stock Price Volatility | ' | 100.00% |
Risk-Free Interest Rate | ' | 0.10% |
Note Conversion Price/Warrant Exercise Price (USD per share) | ' | $0.32 |
Market Price of Common Stock | ' | $1.75 |
Fair_Value_Measurements_Additi
Fair Value Measurements (Additional Information) (Details) (USD $) | 6 Months Ended | 1 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2014 | Dec. 31, 2009 | Jun. 30, 2014 | Jun. 30, 2014 | Apr. 15, 2014 | 20-May-13 | Jun. 30, 2009 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | 20-May-13 | |
Axonn [Member] | Axonn [Member] | 8.00% Convertible Senior Unsecured Notes Issued in 2009 | 8.00% Convertible Senior Unsecured Notes Issued in 2009 | 8.00% Convertible Senior Unsecured Notes Issued in 2009 | 8.00% Convertible Senior Unsecured Notes Issued in 2009 | 8.00% Convertible Senior Unsecured Notes Issued in 2009 | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | ||
Minimum | |||||||||||
Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan interest rate | ' | ' | ' | 8.00% | ' | 8.00% | 8.00% | ' | ' | 8.00% | 8.00% |
Stock issuance settlement period | '40 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible debt, consecutive trading days threshold | '30 days | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' |
Convertible debt, percentage of stock price trigger | 200.00% | ' | ' | 200.00% | ' | ' | ' | ' | ' | ' | ' |
Conversion price per share of common stock (USD per share) | ' | ' | ' | ' | $1.14 | ' | ' | $1 | $0.73 | ' | $0.80 |
Contingent consideration for earnouts | ' | $10,800,000 | $9,700,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Additional earnout payment period | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, shares outstanding (shares) | ' | 26,684,807 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company outstanding common stock, percent | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares to be issued to exercise cash payment option for earnout payments | ' | 13,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnout payments | ' | ' | 8,100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of voting common stock shares for settlement of earnout payments | ' | ' | 18,600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of contingent consideration | ' | ' | $1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Reconciliation_of_Assets_and_L
Reconciliation of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) (USD $) | 3 Months Ended | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Beginning balance | ($633,332) | ($464,449) |
Change in fair value of contingent consideration | -467 | -620 |
Unrealized loss, included in derivative gain (loss) | -376,225 | -585,547 |
Ending balance | -775,361 | -775,361 |
Guarantees | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Earnout payments made/Adjustments related to conversions and exercises | 377 | 998 |
Derivative Financial Instruments, Liabilities | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Earnout payments made/Adjustments related to conversions and exercises | $234,286 | $274,257 |
Accrued_Expenses_and_NonCurren2
Accrued Expenses and Non-Current Liabilities (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued expenses: | ' | ' |
Accrued interest | $897 | $1,200 |
Accrued compensation and benefits | 2,947 | 3,927 |
Accrued property and other taxes | 5,957 | 5,744 |
Accrued customer liabilities and deposits | 2,654 | 2,663 |
Accrued professional and other service provider fees | 1,684 | 705 |
Accrued liability for contingent consideration | 1,545 | 1,922 |
Accrued commissions | 1,008 | 1,316 |
Accrued telecommunications expenses | 1,322 | 649 |
Other accrued expenses | 3,975 | 4,574 |
Accrued Liabilities, Current | 21,989 | 22,700 |
Non-current liabilities: | ' | ' |
Long-term accrued interest | 170 | 451 |
Asset retirement obligation | 1,133 | 1,083 |
Deferred rent and capital lease obligations | 459 | 456 |
Liabilities related to the Cooperative Endeavor Agreement with the State of Louisiana | 1,608 | 1,575 |
Uncertain income tax positions | 6,937 | 5,918 |
Foreign tax contingencies | 4,517 | 4,213 |
Total noncurrent liabilities | $14,824 | $13,696 |
Commitments_Details
Commitments (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | 0 Months Ended | |||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | 31-May-14 | Jul. 01, 2014 | Jul. 31, 2014 | Jul. 01, 2014 | |
Qualcomm Incorporated | Qualcomm Incorporated | Hughes Network Systems LLC | Hughes Network Systems LLC | Ericsson Inc. | Hughes Network Systems LLC | ||||||
Subsequent Event | Subsequent Event | Subsequent Event | |||||||||
Commitments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in contract amount | ' | ' | ' | ' | ' | ' | ' | $3,800,000 | ' | ' | ' |
Discount on prepayment of contract obligations made by issuance of stock | ' | ' | ' | ' | ' | ' | ' | 7.00% | ' | ' | ' |
Payments made in convertible notes and common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,900,000 |
Loss on equity issuance | ' | ' | ' | ' | ' | ' | ' | ' | -700,000 | ' | ' |
Contract amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,400,000 | ' |
Advances for inventory | 2,253,000 | ' | 2,253,000 | ' | 9,359,000 | 2,000,000 | 9,200,000 | ' | ' | ' | ' |
Payments to take ownership of inventory | ' | ' | -3,524,000 | -3,493,000 | ' | 100,000 | ' | ' | ' | ' | ' |
Cost of subscriber equipment sales - reduction in the value of inventory | $7,317,000 | $0 | $7,317,000 | $0 | ' | $7,300,000 | ' | ' | ' | ' | ' |
Contingencies_Details
Contingencies (Details) (Thales Alenia Space, EUR €) | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jun. 24, 2012 | 10-May-12 | Jun. 03, 2011 | Sep. 30, 2013 | Dec. 31, 2013 | |
satellite | |||||
Thales Alenia Space | ' | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Number of second-generation satellites (in satellites) | ' | ' | 25 | ' | ' |
Contract termination, damages awarded | ' | € 51,330,875 | ' | ' | ' |
Contract termination charge | ' | 53,000,000 | ' | 17,500,000 | ' |
Gain on release of liability | 35,623,770 | ' | ' | ' | ' |
Settlement amount | ' | ' | ' | ' | € 17,530,000 |
Related_Party_Transactions_Add
Related Party Transactions (Additional Information) (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 27, 2013 | Oct. 14, 2013 | 20-May-13 | 21-May-13 | Oct. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Nov. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jul. 31, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | 20-May-13 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | 20-May-13 | Jun. 30, 2009 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Oct. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2011 | Jun. 30, 2009 | |||||||||
Thermo Loan Agreement | Thermo Loan Agreement | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | 8.00% Convertible Senior Notes Issued in 2013 | Thermo Loan Agreement | Thermo Loan Agreement | Contingent Equity Agreement | Contingent Equity Agreement | 8.00% Convertible Senior Unsecured Notes Issued in 2009 | 8.00% Convertible Senior Unsecured Notes Issued in 2009 | 8.00% Convertible Senior Unsecured Notes Issued in 2009 | 8.00% Convertible Senior Unsecured Notes Issued in 2009 | 5.00% Convertible Senior Unsecured Notes | 5.00% Convertible Senior Unsecured Notes | 5.00% Convertible Senior Unsecured Notes | Thermo Capital Partners LLC | Thermo Capital Partners LLC | Thermo Capital Partners LLC | Thermo Capital Partners LLC | Thermo Capital Partners LLC | Thermo Capital Partners LLC | Thermo Capital Partners LLC | Thermo Capital Partners LLC | Thermo Capital Partners LLC | Thermo Capital Partners LLC | Thermo Capital Partners LLC | |||||||||||||||||||||
5.00% Convertible Senior Unsecured Notes | 8.00% Convertible Senior Unsecured Notes Issued in 2009 | Thermo Loan Agreement | Thermo Loan Agreement | Thermo Loan Agreement | ||||||||||||||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Payables to Thermo and other affiliates | ' | ' | ' | ' | ' | ' | $300,000 | ' | ' | $300,000 | ' | $200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Deposit to contingent equity account | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000,000 | ' | 60,000,000 | ' | ' | ' | ' | ' | ' | ' | ||||||||
Notes purchased by related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | 11,400,000 | ' | ' | ' | ||||||||
Loan interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | 8.00% | ' | ' | ' | ' | 8.00% | ' | 8.00% | 8.00% | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | ' | ' | ||||||||
Short-term loan converted into nonvoting common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,300,000 | ' | 2,300,000 | ' | ' | ' | ' | ' | ' | ' | ||||||||
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,000,000 | ' | ' | ' | ' | 37,500,000 | ' | 37,500,000 | ' | ' | ' | ' | ' | 37,500,000 | 25,000,000 | ||||||||
Loss on equity issuance | ' | ' | ' | ' | ' | ' | 0 | -13,969,000 | ' | 0 | -13,969,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -13,969,000 | 0 | -13,969,000 | -16,400,000 | ' | ' | ' | ' | ' | ||||||||
Interest rate, payable in cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.75% | 5.75% | ' | 5.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Proceeds from contingent equity agreement | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Number of shares issued per option agreement (in shares) | 26,000,000 | 11,538,461 | ' | ' | ' | ' | ' | ' | 38,461,538 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,133,656 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Discount on shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Fair value of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Loss on extinguishment of debt | ' | ' | ' | ' | ' | ' | ($16,484,000) | ($47,240,000) | ' | ($26,679,000) | ($47,240,000) | ' | ($66,100,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Number of warrants exercised (in warrants) | ' | ' | ' | ' | ' | ' | 4,400,000 | ' | ' | 4,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,400,000 | ' | 16,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,200,000 | ' | ' | ||||||||
Number of shares issued (in shares) | ' | ' | 78,125,000 | 15,625,000 | ' | 28,125,000 | ' | ' | ' | ' | ' | 121,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,400,000 | ' | ' | ' | ' | 4,200,000 | ' | ' | ||||||||
Warrants outstanding (warrants) | ' | ' | ' | ' | ' | ' | 45,088,418 | ' | ' | 45,088,418 | ' | 93,516,401 | ' | ' | ' | ' | ' | ' | 0 | [1] | 4,205,608 | [1] | 37,088,418 | [2] | 41,467,980 | [2] | 0 | [3] | 39,842,813 | [3] | ' | 15,300,000 | 8,000,000 | [4] | 8,000,000 | [4] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
[1] | As consideration for the Loan Agreement with Thermo, the Company issued Thermo warrants to purchase shares of common stock. The exercise period of the warrants issued in connection with the Thermo Loan Agreement was five years from issuance, which expired in June 2014. Thermo exercised all of these warrants in the second quarter of 2014. | |||||||||||||||||||||||||||||||||||||||||||||||
[2] | Pursuant to the terms of the Contingent Equity Agreement, the Company has issued to Thermo warrants to purchase shares of common stock pursuant to the annual availability fee and subsequent reset provisions in the Contingent Equity Agreement. These warrants have a five year exercise period from issuance. These warrants were issued between June 2009 and June 2012, and the exercise periods expire between June 2014 and June 2017. As of JuneB 30, 2014, Thermo exercised warrants to purchase approximately 4.4 million of these shares prior to the expiration of the associated warrants. | |||||||||||||||||||||||||||||||||||||||||||||||
[3] | The exercise period for the 8.00% Warrants began on December 19, 2009 and ended on June 14, 2014. All 8.00% Warrants were exercised in the second quarter of 2014. | |||||||||||||||||||||||||||||||||||||||||||||||
[4] | The 5.0% Warrants are exercisable until June 2016, which is five years after their issuance. |
Expense_Incurred_on_Behalf_of_
Expense Incurred on Behalf of Company (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Non-cash expenses | ' | ' | $0 | $13,969 | ' |
Loss on equity issuance | 0 | 13,969 | 0 | 13,969 | ' |
Thermo Capital Partners LLC | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
General and administrative expenses | 63 | 155 | 63 | 155 | ' |
Non-cash expenses | 137 | 137 | 274 | 274 | ' |
Loss on equity issuance | 0 | 13,969 | 0 | 13,969 | 16,400 |
Total | $200 | $14,261 | $337 | $14,398 | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Income Tax Contingency [Line Items] | ' | ' |
Undistributed earnings from certain foreign subsidiaries | $9.70 | ' |
Foreign Tax Authority [Member] | ' | ' |
Income Tax Contingency [Line Items] | ' | ' |
Tax liability | $2.30 | $2.20 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' | ' |
Accumulated other comprehensive loss, beginning balance | ($364) | ($2,327) | $871 | ($1,758) |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation adjustments | 857 | -81 | -378 | -650 |
Accumulated other comprehensive loss, ending balance | $493 | ($2,408) | $493 | ($2,408) |
Grants_to_Eligible_Participant
Grants to Eligible Participants of Incentive Stock Options, Restricted Stock Awards and Restricted Stock Units (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Grants of restricted stock awards and restricted stock units (in shares) | 127,000 | 838,000 | 155,000 | 838,000 |
Grants of options to purchase common stock (in shares) | 168,000 | 319,000 | 462,000 | 605,000 |
Total (in shares) | 295,000 | 1,157,000 | 617,000 | 1,443,000 |
Stock_Based_Compensation_Addit
Stock Based Compensation (Additional Information) (Details) (Employee Stock Purchase Plan [Member], USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Employee Stock Purchase Plan [Member] | ' | ' | ' | ' |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' | ' | ' | ' |
Percentage of share that can be purchased by eligible employees to their total compensation | 15.00% | ' | 15.00% | ' |
Maximum value of shares that can be purchased by eligible employee | ' | ' | $25,000 | ' |
Maximum number of shares that can be purchased by eligible employee | ' | ' | 500,000 | ' |
Percentage of fair market value of common stock payed by employee | ' | ' | 85.00% | ' |
Stock-based compensation expense | $100,000 | $100,000 | $100,000 | $100,000 |
Company issued shares related to this stock purchase plan | ' | ' | 2,486,902 | ' |
Information_by_Geographic_Area
Information by Geographic Area Revenues (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Service revenues | $17,887 | $15,409 | $34,136 | $30,799 |
Subscriber equipment revenues | 6,107 | 4,426 | 10,394 | 8,369 |
Total revenue | 23,994 | 19,835 | 44,530 | 39,168 |
United States | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Service revenues | 11,853 | 11,048 | 22,733 | 22,225 |
Subscriber equipment revenues | 3,515 | 2,828 | 5,829 | 5,068 |
Canada | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Service revenues | 3,636 | 3,035 | 6,869 | 5,677 |
Subscriber equipment revenues | 1,487 | 978 | 2,769 | 1,763 |
Europe | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Service revenues | 1,401 | 771 | 2,752 | 1,551 |
Subscriber equipment revenues | 555 | 401 | 1,087 | 900 |
Central and South America | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Service revenues | 783 | 633 | 1,447 | 1,293 |
Subscriber equipment revenues | 335 | 206 | 493 | 534 |
Others | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Service revenues | 214 | -78 | 335 | 53 |
Subscriber equipment revenues | $215 | $13 | $216 | $104 |
Information_by_Geographic_Area1
Information by Geographic Area, Long-Lived Assets (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Property and equipment, net | $1,131,884 | $1,169,785 |
United States | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Property and equipment, net | 1,126,323 | 1,164,358 |
Canada | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Property and equipment, net | 279 | 247 |
Europe | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Property and equipment, net | 542 | 408 |
Central and South America | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Property and equipment, net | 3,717 | 3,595 |
Others | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Property and equipment, net | $1,023 | $1,177 |
Supplemental_Condensed_Consoli2
Supplemental Condensed Consolidating Statement of Operations (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenue: | ' | ' | ' | ' |
Service revenues | $17,887 | $15,409 | $34,136 | $30,799 |
Subscriber equipment sales | 6,107 | 4,426 | 10,394 | 8,369 |
Total revenue | 23,994 | 19,835 | 44,530 | 39,168 |
Operating expenses: | ' | ' | ' | ' |
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) | 7,120 | 7,205 | 14,058 | 14,732 |
Cost of subscriber equipment sales | 4,332 | 3,587 | 7,404 | 6,527 |
Cost of subscriber equipment sales - reduction in the value of inventory | 7,317 | 0 | 7,317 | 0 |
Marketing, general, and administrative | 8,247 | 6,577 | 16,016 | 13,501 |
Depreciation, amortization, and accretion | 22,013 | 22,067 | 45,346 | 42,399 |
Total operating expenses | 49,029 | 39,436 | 90,141 | 77,159 |
Loss from operations | -25,035 | -19,601 | -45,611 | -37,991 |
Other income (expense): | ' | ' | ' | ' |
Loss on extinguishment of debt | -16,484 | -47,240 | -26,679 | -47,240 |
Loss on equity issuance | 0 | -13,969 | 0 | -13,969 |
Interest income and expense, net of amounts capitalized | -13,864 | -15,216 | -24,786 | -22,968 |
Derivative loss | -376,283 | -29,903 | -585,652 | -29,377 |
Equity in subsidiary earnings | 0 | 0 | 0 | 0 |
Other | -1,092 | -224 | -379 | 417 |
Total other income (expense) | -407,723 | -106,552 | -637,496 | -113,137 |
Loss before income taxes | -432,758 | -126,153 | -683,107 | -151,128 |
Income tax expense | 972 | 119 | 1,166 | 222 |
Net loss | -433,730 | -126,272 | -684,273 | -151,350 |
Comprehensive (loss) income | -432,875 | -126,353 | -684,651 | -152,000 |
Reportable Legal Entities | Parent Company | ' | ' | ' | ' |
Revenue: | ' | ' | ' | ' |
Service revenues | 18,962 | 16,598 | 37,370 | 31,626 |
Subscriber equipment sales | 269 | 54 | 315 | 159 |
Total revenue | 19,231 | 16,652 | 37,685 | 31,785 |
Operating expenses: | ' | ' | ' | ' |
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) | 2,419 | 2,556 | 5,056 | 5,108 |
Cost of subscriber equipment sales | 212 | 1 | 212 | 0 |
Cost of subscriber equipment sales - reduction in the value of inventory | 7,258 | ' | 7,258 | ' |
Marketing, general, and administrative | 1,908 | 1,042 | 3,596 | 2,548 |
Depreciation, amortization, and accretion | 19,135 | 17,416 | 38,457 | 32,893 |
Total operating expenses | 30,932 | 21,015 | 54,579 | 40,549 |
Loss from operations | -11,701 | -4,363 | -16,894 | -8,764 |
Other income (expense): | ' | ' | ' | ' |
Loss on extinguishment of debt | -16,484 | -47,240 | -26,679 | -47,240 |
Loss on equity issuance | ' | -13,969 | ' | -13,969 |
Interest income and expense, net of amounts capitalized | -13,774 | -14,669 | -24,598 | -22,092 |
Derivative loss | -376,283 | -29,903 | -585,652 | -29,377 |
Equity in subsidiary earnings | -14,889 | -15,724 | -29,818 | -30,223 |
Other | -550 | -339 | -528 | 436 |
Total other income (expense) | -421,980 | -121,844 | -667,275 | -142,465 |
Loss before income taxes | -433,681 | -126,207 | -684,169 | -151,229 |
Income tax expense | 49 | 65 | 104 | 121 |
Net loss | -433,730 | -126,272 | -684,273 | -151,350 |
Comprehensive (loss) income | -433,730 | -126,272 | -684,273 | -151,350 |
Reportable Legal Entities | Guarantor Subsidiaries | ' | ' | ' | ' |
Revenue: | ' | ' | ' | ' |
Service revenues | 1,541 | 2,479 | 3,365 | 6,066 |
Subscriber equipment sales | 4,364 | 2,903 | 7,495 | 5,764 |
Total revenue | 5,905 | 5,382 | 10,860 | 11,830 |
Operating expenses: | ' | ' | ' | ' |
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) | 2,385 | 2,334 | 4,448 | 4,821 |
Cost of subscriber equipment sales | 3,187 | 2,388 | 5,616 | 4,714 |
Cost of subscriber equipment sales - reduction in the value of inventory | 19 | ' | 19 | ' |
Marketing, general, and administrative | 4,192 | 3,480 | 8,144 | 7,044 |
Depreciation, amortization, and accretion | 3,084 | 5,394 | 7,710 | 11,022 |
Total operating expenses | 12,867 | 13,596 | 25,937 | 27,601 |
Loss from operations | -6,962 | -8,214 | -15,077 | -15,771 |
Other income (expense): | ' | ' | ' | ' |
Loss on extinguishment of debt | ' | ' | 0 | 0 |
Loss on equity issuance | ' | 0 | ' | 0 |
Interest income and expense, net of amounts capitalized | -9 | -5 | -20 | -36 |
Derivative loss | ' | ' | 0 | 0 |
Equity in subsidiary earnings | -2,102 | 1,794 | -4,216 | -1,065 |
Other | 44 | -65 | -9 | 1 |
Total other income (expense) | -2,067 | 1,724 | -4,245 | -1,100 |
Loss before income taxes | -9,029 | -6,490 | -19,322 | -16,871 |
Income tax expense | 19 | 21 | 27 | 29 |
Net loss | -9,048 | -6,511 | -19,349 | -16,900 |
Comprehensive (loss) income | -9,048 | -6,511 | -19,349 | -16,900 |
Reportable Legal Entities | Non- Guarantor Subsidiaries | ' | ' | ' | ' |
Revenue: | ' | ' | ' | ' |
Service revenues | 6,212 | 4,269 | 10,890 | 8,380 |
Subscriber equipment sales | 2,254 | 10,196 | 4,153 | 12,194 |
Total revenue | 8,466 | 14,465 | 15,043 | 20,574 |
Operating expenses: | ' | ' | ' | ' |
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) | 2,431 | 2,290 | 4,726 | 4,850 |
Cost of subscriber equipment sales | 2,672 | 10,204 | 4,592 | 12,504 |
Cost of subscriber equipment sales - reduction in the value of inventory | 40 | ' | 40 | ' |
Marketing, general, and administrative | 3,294 | 3,168 | 6,502 | 6,121 |
Depreciation, amortization, and accretion | 6,530 | 5,689 | 13,139 | 10,682 |
Total operating expenses | 14,967 | 21,351 | 28,999 | 34,157 |
Loss from operations | -6,501 | -6,886 | -13,956 | -13,583 |
Other income (expense): | ' | ' | ' | ' |
Loss on extinguishment of debt | ' | ' | 0 | 0 |
Loss on equity issuance | ' | 0 | ' | 0 |
Interest income and expense, net of amounts capitalized | -81 | -542 | -168 | -836 |
Derivative loss | ' | ' | 0 | 0 |
Equity in subsidiary earnings | ' | ' | 0 | 0 |
Other | -586 | 133 | 279 | -103 |
Total other income (expense) | -667 | -409 | 111 | -939 |
Loss before income taxes | -7,168 | -7,295 | -13,845 | -14,522 |
Income tax expense | 904 | 33 | 1,035 | 72 |
Net loss | -8,072 | -7,328 | -14,880 | -14,594 |
Comprehensive (loss) income | -7,227 | -7,409 | -15,273 | -15,244 |
Eliminations | ' | ' | ' | ' |
Revenue: | ' | ' | ' | ' |
Service revenues | -8,828 | -7,937 | -17,489 | -15,273 |
Subscriber equipment sales | -780 | -8,727 | -1,569 | -9,748 |
Total revenue | -9,608 | -16,664 | -19,058 | -25,021 |
Operating expenses: | ' | ' | ' | ' |
Cost of services (exclusive of depreciation, amortization, and accretion shown separately below) | -115 | 25 | -172 | -47 |
Cost of subscriber equipment sales | -1,739 | -9,006 | -3,016 | -10,691 |
Cost of subscriber equipment sales - reduction in the value of inventory | 0 | ' | 0 | ' |
Marketing, general, and administrative | -1,147 | -1,113 | -2,226 | -2,212 |
Depreciation, amortization, and accretion | -6,736 | -6,432 | -13,960 | -12,198 |
Total operating expenses | -9,737 | -16,526 | -19,374 | -25,148 |
Loss from operations | 129 | -138 | 316 | 127 |
Other income (expense): | ' | ' | ' | ' |
Loss on extinguishment of debt | ' | ' | 0 | 0 |
Loss on equity issuance | ' | 0 | ' | 0 |
Interest income and expense, net of amounts capitalized | ' | ' | 0 | -4 |
Derivative loss | ' | ' | 0 | 0 |
Equity in subsidiary earnings | 16,991 | 13,930 | 34,034 | 31,288 |
Other | 0 | 47 | -121 | 83 |
Total other income (expense) | 16,991 | 13,977 | 33,913 | 31,367 |
Loss before income taxes | 17,120 | 13,839 | 34,229 | 31,494 |
Income tax expense | ' | ' | 0 | 0 |
Net loss | 17,120 | 13,839 | 34,229 | 31,494 |
Comprehensive (loss) income | $17,130 | $13,839 | $34,244 | $31,494 |
Supplemental_Condensed_Consoli3
Supplemental Condensed Consolidating Balance Sheet (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' | ' | ' | ' |
Cash and cash equivalents | $23,800,000 | $17,408,000 | $6,237,000 | $6,237,000 | $11,792,000 |
Accounts receivable | 16,767,000 | 15,723,000 | ' | ' | ' |
Intercompany receivables | 0 | 0 | ' | ' | ' |
Inventory | 28,633,000 | 31,817,000 | ' | ' | ' |
Advances for inventory | 2,253,000 | 9,359,000 | ' | ' | ' |
Prepaid expenses and other current assets | 6,913,000 | 7,059,000 | ' | ' | ' |
Total current assets | 78,366,000 | 81,366,000 | ' | ' | ' |
Property and equipment, net | 1,131,884,000 | 1,169,785,000 | ' | ' | ' |
Restricted cash | 37,918,000 | 37,918,000 | ' | ' | ' |
Intercompany notes receivable | 0 | 0 | ' | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' | ' |
Deferred financing costs | 69,871,000 | 76,436,000 | ' | ' | ' |
Intangible and other assets, net | 9,319,000 | 7,103,000 | ' | ' | ' |
Total assets | 1,327,358,000 | 1,372,608,000 | ' | ' | ' |
Current liabilities: | ' | ' | ' | ' | ' |
Current portion of long-term debt | 7,271,000 | 4,046,000 | ' | ' | ' |
Accounts payable | 12,374,000 | 14,627,000 | ' | ' | ' |
Accrued contract termination charge | 23,919,000 | 24,133,000 | ' | ' | ' |
Accrued expenses | 21,989,000 | 22,700,000 | ' | ' | ' |
Intercompany payables | 0 | 0 | ' | ' | ' |
Payables to affiliates | 264,000 | 202,000 | ' | ' | ' |
Derivative liabilities | 0 | 57,048,000 | ' | ' | ' |
Deferred revenue | 21,471,000 | 17,284,000 | ' | ' | ' |
Total current liabilities | 87,288,000 | 140,040,000 | ' | ' | ' |
Long-term debt, less current portion | 624,816,000 | 665,236,000 | ' | ' | ' |
Employee benefit obligations | 3,336,000 | 3,529,000 | ' | ' | ' |
Intercompany notes payable | 0 | 0 | ' | ' | ' |
Derivative liabilities | 773,816,000 | 405,478,000 | ' | ' | ' |
Deferred revenue | 6,937,000 | 7,079,000 | ' | ' | ' |
Debt restructuring fees | 20,795,000 | 20,795,000 | ' | ' | ' |
Other non-current liabilities | 14,824,000 | 13,696,000 | ' | ' | ' |
Total non-current liabilities | 1,444,524,000 | 1,115,813,000 | ' | ' | ' |
Total stockholdersb (deficit) equity | -204,454,000 | 116,755,000 | ' | ' | ' |
Total liabilities and stockholdersb (deficit) equity | 1,327,358,000 | 1,372,608,000 | ' | ' | ' |
Reportable Legal Entities | Parent Company | ' | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' | ' |
Cash and cash equivalents | 19,274,000 | 12,935,000 | ' | 4,698,000 | 10,220,000 |
Accounts receivable | 5,875,000 | 5,925,000 | ' | ' | ' |
Intercompany receivables | 701,523,000 | 651,251,000 | ' | ' | ' |
Inventory | 2,025,000 | 1,161,000 | ' | ' | ' |
Advances for inventory | 2,181,000 | 9,287,000 | ' | ' | ' |
Prepaid expenses and other current assets | 3,655,000 | 4,316,000 | ' | ' | ' |
Total current assets | 734,533,000 | 684,875,000 | ' | ' | ' |
Property and equipment, net | 1,121,277,000 | 1,152,734,000 | ' | ' | ' |
Restricted cash | 37,918,000 | 37,918,000 | ' | ' | ' |
Intercompany notes receivable | 13,178,000 | 13,629,000 | ' | ' | ' |
Investment in subsidiaries | -230,707,000 | -209,592,000 | ' | ' | ' |
Deferred financing costs | 69,871,000 | 76,436,000 | ' | ' | ' |
Intangible and other assets, net | 6,269,000 | 3,964,000 | ' | ' | ' |
Total assets | 1,752,339,000 | 1,759,964,000 | ' | ' | ' |
Current liabilities: | ' | ' | ' | ' | ' |
Current portion of long-term debt | 7,271,000 | 4,046,000 | ' | ' | ' |
Accounts payable | 8,542,000 | 9,906,000 | ' | ' | ' |
Accrued contract termination charge | 23,919,000 | 24,133,000 | ' | ' | ' |
Accrued expenses | 5,711,000 | 6,160,000 | ' | ' | ' |
Intercompany payables | 475,965,000 | 435,707,000 | ' | ' | ' |
Payables to affiliates | 264,000 | 202,000 | ' | ' | ' |
Derivative liabilities | ' | 57,048,000 | ' | ' | ' |
Deferred revenue | 3,625,000 | 1,843,000 | ' | ' | ' |
Total current liabilities | 525,297,000 | 539,045,000 | ' | ' | ' |
Long-term debt, less current portion | 624,816,000 | 665,236,000 | ' | ' | ' |
Employee benefit obligations | 3,336,000 | 3,529,000 | ' | ' | ' |
Intercompany notes payable | ' | ' | ' | ' | ' |
Derivative liabilities | 773,816,000 | 405,478,000 | ' | ' | ' |
Deferred revenue | 6,417,000 | 6,583,000 | ' | ' | ' |
Debt restructuring fees | 20,795,000 | 20,795,000 | ' | ' | ' |
Other non-current liabilities | 2,316,000 | 2,543,000 | ' | ' | ' |
Total non-current liabilities | 1,431,496,000 | 1,104,164,000 | ' | ' | ' |
Total stockholdersb (deficit) equity | -204,454,000 | 116,755,000 | ' | ' | ' |
Total liabilities and stockholdersb (deficit) equity | 1,752,339,000 | 1,759,964,000 | ' | ' | ' |
Reportable Legal Entities | Guarantor Subsidiaries | ' | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' | ' |
Cash and cash equivalents | 1,708,000 | 676,000 | ' | 0 | 251,000 |
Accounts receivable | 5,696,000 | 5,022,000 | ' | ' | ' |
Intercompany receivables | 428,676,000 | 414,508,000 | ' | ' | ' |
Inventory | 12,060,000 | 14,375,000 | ' | ' | ' |
Advances for inventory | 28,000 | 28,000 | ' | ' | ' |
Prepaid expenses and other current assets | 305,000 | 311,000 | ' | ' | ' |
Total current assets | 448,473,000 | 434,920,000 | ' | ' | ' |
Property and equipment, net | 5,043,000 | 11,621,000 | ' | ' | ' |
Restricted cash | ' | ' | ' | ' | ' |
Intercompany notes receivable | ' | ' | ' | ' | ' |
Investment in subsidiaries | 2,114,000 | 7,242,000 | ' | ' | ' |
Deferred financing costs | ' | ' | ' | ' | ' |
Intangible and other assets, net | 799,000 | 1,028,000 | ' | ' | ' |
Total assets | 456,429,000 | 454,811,000 | ' | ' | ' |
Current liabilities: | ' | ' | ' | ' | ' |
Current portion of long-term debt | ' | ' | ' | ' | ' |
Accounts payable | 1,544,000 | 2,041,000 | ' | ' | ' |
Accrued contract termination charge | ' | ' | ' | ' | ' |
Accrued expenses | 7,710,000 | 8,203,000 | ' | ' | ' |
Intercompany payables | 541,788,000 | 521,763,000 | ' | ' | ' |
Payables to affiliates | ' | ' | ' | ' | ' |
Derivative liabilities | ' | ' | ' | ' | ' |
Deferred revenue | 14,920,000 | 13,094,000 | ' | ' | ' |
Total current liabilities | 565,962,000 | 545,101,000 | ' | ' | ' |
Long-term debt, less current portion | ' | ' | ' | ' | ' |
Employee benefit obligations | ' | ' | ' | ' | ' |
Intercompany notes payable | ' | ' | ' | ' | ' |
Derivative liabilities | ' | ' | ' | ' | ' |
Deferred revenue | 520,000 | 496,000 | ' | ' | ' |
Debt restructuring fees | ' | ' | ' | ' | ' |
Other non-current liabilities | 292,000 | 297,000 | ' | ' | ' |
Total non-current liabilities | 812,000 | 793,000 | ' | ' | ' |
Total stockholdersb (deficit) equity | -110,345,000 | -91,083,000 | ' | ' | ' |
Total liabilities and stockholdersb (deficit) equity | 456,429,000 | 454,811,000 | ' | ' | ' |
Reportable Legal Entities | Non- Guarantor Subsidiaries | ' | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' | ' |
Cash and cash equivalents | 2,818,000 | 3,797,000 | ' | 1,539,000 | 1,321,000 |
Accounts receivable | 5,030,000 | 4,602,000 | ' | ' | ' |
Intercompany receivables | 22,764,000 | 18,280,000 | ' | ' | ' |
Inventory | 14,548,000 | 16,281,000 | ' | ' | ' |
Advances for inventory | 44,000 | 44,000 | ' | ' | ' |
Prepaid expenses and other current assets | 2,953,000 | 2,432,000 | ' | ' | ' |
Total current assets | 48,157,000 | 45,436,000 | ' | ' | ' |
Property and equipment, net | 6,774,000 | 6,889,000 | ' | ' | ' |
Restricted cash | ' | ' | ' | ' | ' |
Intercompany notes receivable | 4,285,000 | 4,285,000 | ' | ' | ' |
Investment in subsidiaries | 28,033,000 | ' | ' | ' | ' |
Deferred financing costs | ' | ' | ' | ' | ' |
Intangible and other assets, net | 2,266,000 | 2,125,000 | ' | ' | ' |
Total assets | 89,515,000 | 58,735,000 | ' | ' | ' |
Current liabilities: | ' | ' | ' | ' | ' |
Current portion of long-term debt | ' | ' | ' | ' | ' |
Accounts payable | 2,288,000 | 2,680,000 | ' | ' | ' |
Accrued contract termination charge | ' | ' | ' | ' | ' |
Accrued expenses | 8,568,000 | 8,337,000 | ' | ' | ' |
Intercompany payables | 137,147,000 | 128,496,000 | ' | ' | ' |
Payables to affiliates | ' | ' | ' | ' | ' |
Derivative liabilities | ' | ' | ' | ' | ' |
Deferred revenue | 2,926,000 | 2,347,000 | ' | ' | ' |
Total current liabilities | 150,929,000 | 141,860,000 | ' | ' | ' |
Long-term debt, less current portion | ' | ' | ' | ' | ' |
Employee benefit obligations | ' | ' | ' | ' | ' |
Intercompany notes payable | 15,321,000 | 15,772,000 | ' | ' | ' |
Derivative liabilities | ' | ' | ' | ' | ' |
Deferred revenue | ' | 0 | ' | ' | ' |
Debt restructuring fees | ' | ' | ' | ' | ' |
Other non-current liabilities | 12,216,000 | 10,856,000 | ' | ' | ' |
Total non-current liabilities | 27,537,000 | 26,628,000 | ' | ' | ' |
Total stockholdersb (deficit) equity | -88,951,000 | -109,753,000 | ' | ' | ' |
Total liabilities and stockholdersb (deficit) equity | 89,515,000 | 58,735,000 | ' | ' | ' |
Eliminations | ' | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | ' | ' |
Accounts receivable | 166,000 | 174,000 | ' | ' | ' |
Intercompany receivables | -1,152,963,000 | -1,084,039,000 | ' | ' | ' |
Inventory | ' | ' | ' | ' | ' |
Advances for inventory | ' | ' | ' | ' | ' |
Prepaid expenses and other current assets | ' | ' | ' | ' | ' |
Total current assets | -1,152,797,000 | -1,083,865,000 | ' | ' | ' |
Property and equipment, net | -1,210,000 | -1,459,000 | ' | ' | ' |
Restricted cash | ' | ' | ' | ' | ' |
Intercompany notes receivable | -17,463,000 | -17,914,000 | ' | ' | ' |
Investment in subsidiaries | 200,560,000 | 202,350,000 | ' | ' | ' |
Deferred financing costs | ' | ' | ' | ' | ' |
Intangible and other assets, net | -15,000 | -14,000 | ' | ' | ' |
Total assets | -970,925,000 | -900,902,000 | ' | ' | ' |
Current liabilities: | ' | ' | ' | ' | ' |
Current portion of long-term debt | ' | ' | ' | ' | ' |
Accounts payable | ' | ' | ' | ' | ' |
Accrued contract termination charge | ' | ' | ' | ' | ' |
Accrued expenses | ' | ' | ' | ' | ' |
Intercompany payables | -1,154,900,000 | -1,085,966,000 | ' | ' | ' |
Payables to affiliates | ' | ' | ' | ' | ' |
Derivative liabilities | ' | ' | ' | ' | ' |
Deferred revenue | ' | ' | ' | ' | ' |
Total current liabilities | -1,154,900,000 | -1,085,966,000 | ' | ' | ' |
Long-term debt, less current portion | ' | ' | ' | ' | ' |
Employee benefit obligations | ' | ' | ' | ' | ' |
Intercompany notes payable | -15,321,000 | -15,772,000 | ' | ' | ' |
Derivative liabilities | ' | ' | ' | ' | ' |
Deferred revenue | ' | 0 | ' | ' | ' |
Debt restructuring fees | ' | ' | ' | ' | ' |
Other non-current liabilities | 0 | ' | ' | ' | ' |
Total non-current liabilities | -15,321,000 | -15,772,000 | ' | ' | ' |
Total stockholdersb (deficit) equity | 199,296,000 | 200,836,000 | ' | ' | ' |
Total liabilities and stockholdersb (deficit) equity | ($970,925,000) | ($900,902,000) | ' | ' | ' |
Supplemental_Condensed_Consoli4
Supplemental Condensed Consolidating Statement of Cash Flows (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | $2,353 | ($1,826) |
Cash flows from investing activities: | ' | ' |
Second-generation satellites, ground and related launch costs | -3,315 | -27,666 |
Property and equipment additions | -1,483 | -569 |
Investment in business | 0 | -355 |
Restricted cash | 0 | 8,625 |
Net cash used in investing activities | -4,798 | -19,965 |
Cash flows provided by (used in) financing activities | ' | ' |
Payment of deferred financing costs | -164 | -1,481 |
Proceeds from issuance of common stock and stock options | 8,986 | 1,206 |
Payments to reduce principal amount of exchanged 5.75% Notes | 0 | -13,544 |
Payments to reduce principal amount of 5.75% Notes not exchanged | 0 | -6,250 |
Payments to lenders and other fees associated with exchange | 0 | -2,482 |
Proceeds from equity issuance to related party | 0 | 39,000 |
Net cash provided by (used in) financing activities | 8,822 | 16,449 |
Effect of exchange rate changes on cash and cash equivalents | 15 | -213 |
Net increase (decrease) in cash and cash equivalents | 6,392 | -5,555 |
Cash and cash equivalents, beginning of period | 17,408 | 11,792 |
Cash and cash equivalents, end of period | 23,800 | 6,237 |
Reportable Legal Entities | Parent Company | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | 920 | -2,575 |
Cash flows from investing activities: | ' | ' |
Second-generation satellites, ground and related launch costs | -3,315 | -27,666 |
Property and equipment additions | -88 | ' |
Investment in business | ' | -355 |
Restricted cash | ' | 8,625 |
Net cash used in investing activities | -3,403 | -19,396 |
Cash flows provided by (used in) financing activities | ' | ' |
Payment of deferred financing costs | -164 | -1,481 |
Proceeds from issuance of common stock and stock options | 8,986 | 1,206 |
Payments to reduce principal amount of exchanged 5.75% Notes | ' | -13,544 |
Payments to reduce principal amount of 5.75% Notes not exchanged | ' | -6,250 |
Payments to lenders and other fees associated with exchange | ' | -2,482 |
Proceeds from equity issuance to related party | ' | 39,000 |
Net cash provided by (used in) financing activities | 8,822 | 16,449 |
Effect of exchange rate changes on cash and cash equivalents | ' | ' |
Net increase (decrease) in cash and cash equivalents | 6,339 | -5,522 |
Cash and cash equivalents, beginning of period | 12,935 | 10,220 |
Cash and cash equivalents, end of period | 19,274 | ' |
Reportable Legal Entities | Guarantor Subsidiaries | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | 1,240 | 58 |
Cash flows from investing activities: | ' | ' |
Second-generation satellites, ground and related launch costs | ' | ' |
Property and equipment additions | -208 | -309 |
Investment in business | ' | 0 |
Restricted cash | ' | ' |
Net cash used in investing activities | -208 | -309 |
Cash flows provided by (used in) financing activities | ' | ' |
Payment of deferred financing costs | ' | ' |
Proceeds from issuance of common stock and stock options | ' | 0 |
Payments to reduce principal amount of exchanged 5.75% Notes | ' | 0 |
Payments to reduce principal amount of 5.75% Notes not exchanged | ' | 0 |
Payments to lenders and other fees associated with exchange | ' | 0 |
Proceeds from equity issuance to related party | ' | 0 |
Net cash provided by (used in) financing activities | ' | ' |
Effect of exchange rate changes on cash and cash equivalents | ' | ' |
Net increase (decrease) in cash and cash equivalents | 1,032 | -251 |
Cash and cash equivalents, beginning of period | 676 | 251 |
Cash and cash equivalents, end of period | 1,708 | ' |
Reportable Legal Entities | Non- Guarantor Subsidiaries | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | 193 | 691 |
Cash flows from investing activities: | ' | ' |
Second-generation satellites, ground and related launch costs | ' | ' |
Property and equipment additions | -1,187 | -260 |
Investment in business | ' | 0 |
Restricted cash | ' | ' |
Net cash used in investing activities | -1,187 | -260 |
Cash flows provided by (used in) financing activities | ' | ' |
Payment of deferred financing costs | ' | ' |
Proceeds from issuance of common stock and stock options | ' | 0 |
Payments to reduce principal amount of exchanged 5.75% Notes | ' | 0 |
Payments to reduce principal amount of 5.75% Notes not exchanged | ' | 0 |
Payments to lenders and other fees associated with exchange | ' | 0 |
Proceeds from equity issuance to related party | ' | 0 |
Net cash provided by (used in) financing activities | ' | ' |
Effect of exchange rate changes on cash and cash equivalents | 15 | -213 |
Net increase (decrease) in cash and cash equivalents | -979 | 218 |
Cash and cash equivalents, beginning of period | 3,797 | 1,321 |
Cash and cash equivalents, end of period | 2,818 | ' |
Eliminations | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Net cash provided by (used in) operating activities | ' | ' |
Cash flows from investing activities: | ' | ' |
Second-generation satellites, ground and related launch costs | ' | ' |
Property and equipment additions | ' | ' |
Investment in business | ' | 0 |
Restricted cash | ' | ' |
Net cash used in investing activities | ' | ' |
Cash flows provided by (used in) financing activities | ' | ' |
Payment of deferred financing costs | ' | ' |
Proceeds from issuance of common stock and stock options | ' | 0 |
Payments to reduce principal amount of exchanged 5.75% Notes | ' | 0 |
Payments to reduce principal amount of 5.75% Notes not exchanged | ' | 0 |
Payments to lenders and other fees associated with exchange | ' | 0 |
Proceeds from equity issuance to related party | ' | 0 |
Net cash provided by (used in) financing activities | ' | ' |
Effect of exchange rate changes on cash and cash equivalents | ' | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' |
Cash and cash equivalents, beginning of period | ' | ' |
Cash and cash equivalents, end of period | ' | ' |