Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 28, 2013 | |
Document Information [Line Items] | ||
Entity Registrant Name | Iridium Communications Inc. | |
Entity Central Index Key | 1418819 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | IRDM | |
Entity Common Stock, Shares Outstanding | 76,660,401 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2013 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $196,997 | $254,418 |
Marketable securities | 73,325 | 0 |
Accounts receivable, net | 64,550 | 56,135 |
Inventory | 28,188 | 26,335 |
Deferred tax assets, net | 9,743 | 21,160 |
Income tax receivable | 909 | 4,302 |
Prepaid expenses and other current assets | 4,767 | 4,816 |
Total current assets | 378,479 | 367,166 |
Property and equipment, net | 1,451,311 | 1,210,693 |
Restricted cash | 81,215 | 54,233 |
Other assets | 7,708 | 2,912 |
Intangible assets, net | 60,715 | 70,502 |
Deferred financing costs | 127,205 | 123,796 |
Goodwill | 87,039 | 87,039 |
Total assets | 2,193,672 | 1,916,341 |
Liabilities and stockholders' equity | ||
Accounts payable | 9,156 | 13,834 |
Accrued expenses and other current liabilities | 39,968 | 26,704 |
Interest payable | 16,912 | 5,359 |
Deferred revenue | 44,244 | 42,755 |
Total current liabilities | 110,280 | 88,652 |
Accrued satellite operations and maintenance expense, net of current portion | 16,723 | 17,727 |
Credit facility | 936,290 | 751,787 |
Deferred tax liabilities, net | 184,776 | 167,821 |
Other long-term liabilities | 20,433 | 13,796 |
Total liabilities | 1,268,502 | 1,039,783 |
Commitments and contingencies | ||
Stockholders' equity | ||
Series A Preferred Stock, $0.0001 par value, 1,000 shares authorized, issued and outstanding | 0 | 0 |
Common stock, $0.001 par value, 300,000 shares authorized, 76,660 and 76,461 shares issued and outstanding, respectively | 77 | 76 |
Additional paid-in capital | 800,879 | 793,511 |
Retained earnings | 124,992 | 83,328 |
Accumulated other comprehensive loss, net of taxes | -778 | -357 |
Total stockholders' equity | 925,170 | 876,558 |
Total liabilities and stockholders' equity | $2,193,672 | $1,916,341 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets [Parenthetical] (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares issued | 1,000 | 1,000 |
Preferred stock, shares outstanding | 1,000 | 1,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 300,000 | 300,000 |
Common stock, shares issued | 76,660 | 76,461 |
Common stock, shares outstanding | 76,660 | 76,461 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations and Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue: | ||||
Services | $75,381 | $71,403 | $215,569 | $206,736 |
Subscriber equipment | 20,253 | 26,371 | 57,399 | 71,825 |
Engineering and support services | 4,935 | 2,667 | 11,474 | 12,675 |
Total revenue | 100,569 | 100,441 | 284,442 | 291,236 |
Operating expenses: | ||||
Cost of services (exclusive of depreciation and amortization) | 14,776 | 14,000 | 43,458 | 47,991 |
Cost of subscriber equipment | 15,550 | 14,194 | 39,563 | 40,828 |
Research and development | 3,125 | 3,623 | 6,525 | 12,741 |
Selling, general and administrative | 18,290 | 16,452 | 55,054 | 52,570 |
Depreciation and amortization | 19,377 | 20,484 | 56,205 | 63,056 |
Total operating expenses | 71,118 | 68,753 | 200,805 | 217,186 |
Operating income | 29,451 | 31,688 | 83,637 | 74,050 |
Other income (expense): | ||||
Interest income, net | 557 | 399 | 1,835 | 588 |
Undrawn credit facility fees | -1,886 | -2,488 | -6,002 | -7,849 |
Other expense, net | -1,101 | -67 | -3,366 | -6 |
Total other expense | -2,430 | -2,156 | -7,533 | -7,267 |
Income before income taxes | 27,021 | 29,532 | 76,104 | 66,783 |
Provision for income taxes | -10,436 | -11,693 | -29,172 | -18,863 |
Net income | 16,585 | 17,839 | 46,932 | 47,920 |
Series A Preferred Stock dividends | 1,750 | 0 | 5,250 | 0 |
Net income attributable to common stockholders | 14,835 | 17,839 | 41,682 | 47,920 |
Weighted average shares outstanding - basic (in shares) | 76,962 | 74,376 | 76,877 | 73,738 |
Weighted average shares outstanding - diluted (in shares) | 87,591 | 76,131 | 87,532 | 75,886 |
Net income attributable to common stockholders per share - basic (in dollars per share) | $0.19 | $0.24 | $0.54 | $0.65 |
Net income attributable to common stockholders per share - diluted (in dollars per share) | $0.19 | $0.23 | $0.54 | $0.63 |
Comprehensive income: | ||||
Net income | 16,585 | 17,839 | 46,932 | 47,920 |
Foreign currency translation adjustments, net of tax | -94 | 5 | -355 | -80 |
Unrealized gain (loss) on marketable securities, net of tax | 219 | 0 | -66 | 0 |
Comprehensive income | $16,710 | $17,844 | $46,511 | $47,840 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ||
Net cash provided by operating activities | $144,332 | $132,715 |
Cash flows from investing activities: | ||
Capital expenditures | -263,445 | -221,343 |
Purchases of marketable securities | -100,794 | 0 |
Sales and maturities of marketable securities | 26,904 | 0 |
Investment in equity method affiliate | -5,000 | 0 |
Net cash used in investing activities | -342,335 | -221,343 |
Cash flows from financing activities: | ||
Borrowings under credit facility | 184,503 | 171,805 |
Payment of deferred financing fees | -11,704 | -11,980 |
Change in restricted cash - Credit Facility | -26,982 | -27,062 |
Proceeds from exercise of stock options and warrants | 15 | 9,143 |
Payment of offering costs | 0 | -245 |
Payment of Series A Preferred Stock dividends | -5,250 | 0 |
Net cash provided by financing activities | 140,582 | 141,661 |
Net increase (decrease) in cash and cash equivalents | -57,421 | 53,033 |
Cash and cash equivalents, beginning of period | 254,418 | 136,366 |
Cash and cash equivalents, end of period | 196,997 | 189,399 |
Supplemental cash flow information: | ||
Interest paid | 5,096 | 2,907 |
Income taxes paid (refunded) | -2,947 | 351 |
Supplemental disclosure of non-cash investing activities: | ||
Property and equipment received but not paid for yet | 6,382 | 2,821 |
Interest capitalized but not paid | 16,912 | 11,317 |
Capitalized amortization of deferred financing costs | 8,294 | 2,182 |
Capitalized paid-in-kind interest | 11,667 | 6,677 |
Capitalized stock-based compensation | $996 | $547 |
Basis_of_Presentation_and_Prin
Basis of Presentation and Principles of Consolidation | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Basis of Presentation and Principles of Consolidation |
Iridium Communications Inc. (the “Company”) has prepared its condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The accompanying condensed consolidated financial statements include the accounts of (i) the Company, (ii) its wholly owned subsidiaries, and (iii) all less than wholly owned subsidiaries that the Company controls. All material intercompany transactions and balances have been eliminated. | |
In the opinion of management, the condensed consolidated financial statements reflect all normal recurring adjustments that the Company considers necessary for the fair presentation of its results of operations and cash flows for the interim periods covered, and of the financial position of the Company at the date of the interim condensed consolidated balance sheet. The operating results for interim periods are not necessarily indicative of the operating results for the entire year. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to instructions, rules and regulations prescribed by the U.S. Securities and Exchange Commission (“SEC”). While the Company believes that the disclosures are adequate to make the information not misleading, these interim condensed consolidated financial statements should be read in conjunction with the 2012 annual consolidated financial statements and notes included in its Form 10-K filed with the SEC on March 5, 2013. | |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Accounting Policies [Abstract] | |||||
Significant Accounting Policies [Text Block] | 2. Significant Accounting Policies | ||||
Property and Equipment | |||||
Property and equipment is carried at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the following estimated useful lives: | |||||
Satellites | estimated useful life | ||||
Ground system | 5-7 years | ||||
Equipment | 3-5 years | ||||
Internally developed software and purchased software | 3-7 years | ||||
Building | 39 years | ||||
Building improvements | estimated useful life | ||||
Leasehold improvements | shorter of useful life or remaining lease term | ||||
The estimated useful lives of the Company’s satellites are the remaining period of expected use for each satellite. Satellites are depreciated on a straight-line basis through the earlier of the estimated remaining useful life or the date they are expected to be replaced by Iridium NEXT satellites. Based on the current launch schedule, the Company expects Iridium NEXT satellites to begin deployment in early 2015, with the final launch expected to occur by mid-2017. | |||||
Repairs and maintenance costs are expensed as incurred. | |||||
Warranty Expense | |||||
The Company provides the first end-user purchaser of its subscriber equipment a warranty for one to five years from the date of purchase by such first end-user, depending on the product. The Company maintains a warranty reserve based on historical experience of warranty costs and expected occurrences of warranty claims on equipment. Costs associated with warranties, including equipment replacements, repairs, freight, and program administration, are recorded as cost of subscriber equipment in the accompanying condensed consolidated statements of operations and comprehensive income. Due to an increase in the warranty provision related to projected higher warranty claims and other warranty-related initiatives for the Iridium Pilot® terminals, the Company recorded an additional $5.5 million to the warranty provision during the nine months ended September 30, 2013. Changes in the warranty reserve during the nine months ended September 30, 2013 were as follows: | |||||
Nine Months Ended | |||||
September 30, 2013 | |||||
(in thousands) | |||||
Balance at beginning of the period | $ | 4,050 | |||
Provision | 9,524 | ||||
Utilization | -4,707 | ||||
Balance at end of the period | $ | 8,867 | |||
Fair Value Measurements | |||||
The Company evaluates assets and liabilities subject to fair value measurements on a recurring and non-recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgments to be made by management of the Company. The instruments identified as subject to fair value measurements on a recurring basis are cash and cash equivalents, marketable securities, prepaid expenses, deposits and other current assets, accounts receivable, accounts payable, accrued expenses and other current liabilities. Fair value is the price that would be received from the sale of an asset or paid to transfer a liability assuming an orderly transaction in the most advantageous market at the measurement date. U.S. GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of observability of inputs used in measuring fair value. The fair value hierarchy consists of the following tiers: | |||||
• | Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; | ||||
• | Level 2, defined as observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and | ||||
• | Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | ||||
As of September 30, 2013 and December 31, 2012, the carrying values of short-term financial instruments (primarily cash and cash equivalents, prepaid expenses, deposits and other current assets, accounts receivable, accounts payable, accrued expenses and other current liabilities and other obligations) approximate their fair values because of their short-term nature. The fair value of the Company’s investments in money market funds approximates their carrying value; such instruments are classified as Level 1 and are included in cash and cash equivalents on the condensed consolidated balance sheet. The fair value of the Company’s investments in commercial paper and short-term U.S. agency securities with original maturities of less than ninety days approximates their carrying value; such instruments are classified as Level 2 and are included in cash and cash equivalents on the condensed consolidated balance sheet. | |||||
The fair value of the Company’s investments in fixed-income debt securities and commercial paper with original maturities of greater than ninety days are obtained using similar investments traded on active securities exchanges and are classified as Level 2. | |||||
Cash_and_Cash_Equivalents_Rest
Cash and Cash Equivalents, Restricted Cash and Marketable Securities | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||
Cash, Cash Equivalents, and Marketable Securities [Text Block] | 3. Cash and Cash Equivalents, Restricted Cash and Marketable Securities | ||||||||||
Cash and Cash Equivalents | |||||||||||
The Company considers all highly liquid investments with original maturities of ninety days or less to be cash equivalents. The cash and cash equivalents balance as of December 31, 2012 consisted of cash deposited in institutional money market funds and regular interest bearing and non-interest bearing depository accounts. In 2013, the Company began making investments in commercial paper and government-issued debt securities with original maturities within ninety days of purchase. These investments, along with cash deposited in institutional money market funds, regular interest bearing and non-interest bearing depository accounts, are classified as cash and cash equivalents as of September 30, 2013 on the condensed consolidated balance sheet. The following table summarizes the Company’s cash and cash equivalents as of September 30, 2013 and December 31, 2012: | |||||||||||
September 30, | December 31, | Recurring Fair | |||||||||
2013 | 2012 | Value Measurement | |||||||||
(in thousands) | |||||||||||
Cash and cash equivalents: | |||||||||||
Cash | $ | 91,911 | $ | 166,326 | |||||||
Money market funds | 88,589 | 88,092 | Level 1 | ||||||||
Commercial paper | 14,496 | - | Level 2 | ||||||||
Government-issued debt securities | 2,001 | - | Level 2 | ||||||||
Total Cash and cash equivalents | $ | 196,997 | $ | 254,418 | |||||||
Restricted Cash | |||||||||||
The Company is required to maintain a minimum cash reserve for debt service related to its $1.8 billion loan facility (the “Credit Facility”). As of September 30, 2013 and December 31, 2012, the Company’s restricted cash balance, which includes a minimum cash reserve for debt service related to the Credit Facility and the interest earned on these amounts, was $81.2 million and $54.2 million, respectively. | |||||||||||
Marketable Securities | |||||||||||
Marketable securities as of September 30, 2013 consisted of corporate and foreign fixed-income debt securities and commercial paper with an original maturity in excess of ninety days. These investments are classified as available-for-sale as of September 30, 2013 and are included in current assets on the condensed consolidated balance sheet. All investments are carried at fair value. Unrealized gains and losses, net of taxes, are reported as a component of other comprehensive income or loss. The specific identification method is used to determine the cost basis of the marketable securities sold. There were no realized gains on the sale of marketable securities for the three or nine months ended September 30, 2013. The Company regularly monitors and evaluates the fair value of its investments to identify other-than-temporary declines in value. The Company determined that no other-than-temporary declines in value existed at September 30, 2013. The Company did not have any marketable securities at December 31, 2012. The following table summarizes the Company’s marketable securities as of September 30, 2013: | |||||||||||
September 30, | Recurring Fair | ||||||||||
2013 | Value Measurement | ||||||||||
(in thousands) | |||||||||||
Marketable securities: | |||||||||||
Fixed-income debt securities | $ | 57,109 | Level 2 | ||||||||
Commercial paper | 16,216 | Level 2 | |||||||||
Total Marketable securities | $ | 73,325 | |||||||||
The following table presents the contractual maturities of the fixed income debt securities and commercial paper held as of September 30, 2013: | |||||||||||
Amortized | Unrealized | Estimated | |||||||||
Cost | Gain (Loss) | Fair Value | |||||||||
(in thousands) | |||||||||||
Fixed-income debt securities: | |||||||||||
Mature within one year | $ | 5,953 | $ | 2 | $ | 5,955 | |||||
Mature after one year and within three years | 51,264 | -110 | 51,154 | ||||||||
Commercial paper: | |||||||||||
Mature within one year | 16,216 | - | 16,216 | ||||||||
Total | $ | 73,433 | $ | -108 | $ | 73,325 | |||||
The Company’s gross and net-of-tax unrealized loss on marketable securities for the nine months ended September 30, 2013 was approximately $108,000 and $66,000, respectively. The change in unrealized loss on marketable securities, net of tax, is included within comprehensive income on the condensed consolidated statements of operations and comprehensive income. | |||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies Disclosure [Text Block] | 4. Commitments and Contingencies | ||||
Commitments | |||||
Thales | |||||
In June 2010, the Company executed a primarily fixed-price full-scale development contract (the “FSD”) with Thales Alenia Space France (“Thales”) for the design and build of satellites for Iridium NEXT, the Company’s next-generation satellite constellation. The total price under the FSD is $2.2 billion, and the Company expects payment obligations under the FSD to extend into the third quarter of 2017. As of September 30, 2013, the Company had made aggregate payments of $993.6 million to Thales, which were capitalized as construction in progress within property and equipment, net in the accompanying condensed consolidated balance sheet. | |||||
SpaceX | |||||
In March 2010, the Company entered into an agreement with Space Exploration Technologies Corp. (“SpaceX”) to secure SpaceX as the primary launch services provider for Iridium NEXT (the “SpaceX Agreement”). In August 2012, the Company entered into an amendment to the SpaceX Agreement (the “SpaceX Amendment”). The SpaceX Amendment reduced the number of contracted launches and increased the number of satellites to be carried on each launch vehicle. The maximum price under the SpaceX Amendment is $453.1 million. As of September 30, 2013, the Company had made aggregate payments of $65.1 million to SpaceX, which were capitalized as construction in progress within property and equipment, net in the accompanying condensed consolidated balance sheet. | |||||
Kosmotras | |||||
In June 2011, the Company entered into an agreement with International Space Company Kosmotras (“Kosmotras”) as a supplemental launch service provider for Iridium NEXT (the “Kosmotras Agreement”). The Kosmotras Agreement provides for the purchase of up to six launches with options to purchase additional launches. Each launch can carry two satellites. In June 2013, the Company exercised an option for one launch to carry the first two Iridium NEXT satellites; if the Company does not exercise any additional options, the total cost under the contract including this single launch will be $51.8 million. Prior to December 31, 2013, the Company may exercise its remaining option to purchase up to five additional launches. If all six launches are purchased, the Company will pay Kosmotras a total of $184.3 million. As of September 30, 2013, the Company had made aggregate payments of $18.3 million to Kosmotras, which were capitalized as construction in progress within property and equipment, net in the accompanying condensed consolidated balance sheet. The remaining amounts owed under the contract will be paid through 2015 or 2016, depending on the number of launches purchased and the launch schedule. | |||||
Operating Leases | |||||
The Company leases land, office space, and office and computer equipment under noncancelable operating lease agreements. In the first quarter of 2013, the Company renewed the lease term for its technical support center (the “TSC”) located in Chandler, Arizona. The lease for the TSC was extended from 2014 to 2024. Future minimum lease payments, by year and in the aggregate, under the noncancelable operating lease starting in 2014 for the TSC are as follows: | |||||
Operating | |||||
Year ending December 31, | Lease | ||||
(In thousands) | |||||
2014 | $ | 359 | |||
2015 | 730 | ||||
2016 | 755 | ||||
2017 | 779 | ||||
2018 | 804 | ||||
Thereafter | 4,621 | ||||
Total | $ | 8,048 | |||
Credit Facility | |||||
In October 2010, the Company entered into the Credit Facility with a syndicate of bank lenders (the “Lenders”). The Credit Facility was subsequently amended and restated in August 2012. The Company had borrowed an aggregate total of $936.3 million as of September 30, 2013. The unused portion of the Credit Facility as of September 30, 2013 was $863.7 million. Pursuant to the Credit Facility, the Company maintains a minimum cash reserve for repayment. As of September 30, 2013, the minimum required cash reserve balance was $81.0 million. This amount is included in restricted cash in the accompanying condensed consolidated balance sheet. This minimum cash reserve requirement will increase over the term of the Credit Facility and will be $189.0 million at the beginning of the repayment period, which is expected to begin in 2017. | |||||
Interest costs incurred under the Credit Facility were $10.3 million and $28.2 million for the three and nine months ended September 30, 2013, respectively. All interest costs incurred related to the Credit Facility have been capitalized during the construction period of the Iridium NEXT assets. The Company pays interest on each semi-annual due date through a combination of a cash payment and a deemed additional loan. The $10.3 million in interest incurred during the three months ended September 30, 2013 consisted of $3.1 million payable in cash and $7.2 million payable by deemed loans. The $28.2 million in interest incurred during the nine months ended September 30, 2013 consisted of $8.6 million payable in cash of which $3.5 million was paid during the period and $5.1 million was accrued at period-end, and $19.6 million payable by deemed loans, of which $7.9 million was paid during the period and $11.7 million was accrued at period-end. Total interest payable associated with the Credit Facility was $16.8 million and is included in interest payable in the accompanying condensed consolidated balance sheet as of September 30, 2013. | |||||
The Company also pays a commitment fee of 0.80% per year, in semi-annual installments, on any undrawn portion of the Credit Facility. The total commitment fee payable on the undrawn portion of the Credit Facility was $3.8 million and is included in accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheet as of September 30, 2013. | |||||
Contingencies | |||||
From time to time, in the normal course of business, the Company is party to various pending claims and lawsuits. The Company is not aware of any such actions that it would expect to have a material adverse impact on its business, financial results or financial condition. | |||||
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 5. Stock-Based Compensation |
The Company accounts for stock-based compensation at fair value. The fair value of stock options is determined at the grant date using the Black-Scholes option pricing model. The fair value of restricted stock units (“RSUs”) is equal to the closing price of the underlying common stock on the grant date. The fair value of an award that is ultimately expected to vest is recognized on a straight-line basis over the requisite service or performance period and is classified in the condensed consolidated statements of operations and comprehensive income in a manner consistent with the classification of the recipient’s compensation. Stock-based awards to non-employee consultants are expensed at their fair value as services are provided according to the terms of their agreements and are classified in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations and comprehensive income. | |
During 2012, the Company’s stockholders approved a stock incentive plan (the “2012 Stock Incentive Plan”) to provide stock-based awards, including nonqualified stock options, incentive stock options, restricted stock and other equity securities, as incentives and rewards for employees, consultants and non-employee directors. As of September 30, 2013, 13,416,019 shares of common stock were authorized for issuance as awards under the 2012 Stock Incentive Plan. | |
Members of the Company’s board of directors elected to receive a portion of their 2013 annual compensation in the form of equity awards, in an aggregate amount of approximately 68,000 stock options and 112,000 RSUs. These stock options and RSUs were granted in January 2013 and vest through the end of 2013, with 25% vesting on the last day of each calendar quarter. The estimated aggregate grant-date fair value of the stock options was $0.2 million. The estimated aggregate grant-date fair value of the RSUs was $0.8 million. | |
During the three months ended September 30, 2013, the Company granted approximately 92,000 stock options to its employees. During the nine months ended September 30, 2013, the Company granted approximately 1,226,000 stock options, 523,000 service-based RSUs, and 228,000 performance-based RSUs to its employees. Employee stock options and service-based RSUs generally vest over a four-year service period with 25% vesting on the first anniversary of the grant date and the remainder vesting ratably on a quarterly basis thereafter. The performance-based RSUs were awarded to the Company’s executives. Vesting of the performance-based RSUs is dependent upon the Company’s achievement of defined performance goals over a two-year measurement period. The number of performance-based RSUs that will ultimately vest may range from 0% to 150% of the original grant based on the level of achievement of the performance goals. If the Company achieves the performance goals, 50% of the RSU awards will vest at the end of two years and the remaining 50% will vest at the end of the third year. The Company records stock-based compensation expense related to performance-based RSUs when it is considered probable that the performance conditions will be met. The estimated aggregate grant-date fair value of the stock options granted to employees during the three months ended September 30, 2013 was $0.3 million. The estimated aggregate grant-date fair values of the stock options, service-based RSUs, and performance-based RSUs granted to employees during the nine months ended September 30, 2013 were $3.2 million, $3.2 million, and $1.4 million, respectively. | |
During the nine months ended September 30, 2013, the Company granted 45,000 stock options to non-employee consultants. The consultant options vest over a two-year period with ratable quarterly vesting. Expense related to stock options granted to non-employees is recognized over the vesting period of the award, which is the period during which services are rendered. At each vest date, the value of these options is re-measured. The aggregate estimated grant-date fair value of the consultant stock options was approximately $0.1 million. | |
Equity_Instruments
Equity Instruments | 9 Months Ended |
Sep. 30, 2013 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 6. Equity Instruments |
$7.00 Warrants | |
In connection with the Company’s initial public offering in February 2008, the Company sold 40.0 million units at a price of $10.00 per unit. Each unit consisted of one share of common stock and one common stock purchase warrant (a “$7.00 Warrant”). Each $7.00 Warrant entitled the holder to purchase from the Company one share of common stock at a price of $7.00 per share. | |
During 2012, the Company issued 1.3 million shares of common stock resulting from the exercise of 1.3 million $7.00 Warrants. The Company received proceeds of $9.1 million as a result of these warrant exercises. | |
During 2012, the Company entered into privately negotiated warrant exchange agreements with the largest holder of the outstanding $7.00 Warrants. Pursuant to these agreements, the Company issued 562,370 new shares of its common stock in exchange for 3,374,220 of the $7.00 Warrants (equivalent to approximately 0.1667 common shares for every $7.00 Warrant tendered), representing approximately 27% of the outstanding $7.00 Warrants. | |
In addition, during 2012, the Company initiated and completed a tender offer to exchange outstanding $7.00 Warrants for shares of its own common stock (the “2012 Tender Offer”). The Company offered holders of its $7.00 Warrants one share of common stock for every six of the $7.00 Warrants tendered (equivalent to approximately 0.1667 common shares for every $7.00 Warrant tendered). As a result of the 2012 Tender Offer, the Company issued an aggregate of 1,386,941 shares of its common stock in exchange for an aggregate of 8,321,433 of the $7.00 Warrants. | |
On February 14, 2013, the remaining 655,499 outstanding and unexercised $7.00 Warrants expired in accordance with their terms. | |
$11.50 Warrants | |
On September 29, 2009, in connection with the acquisition of Iridium Holdings LLC, holders of approximately 14.4 million $7.00 Warrants exchanged their existing warrants for new warrants to purchase the Company’s common stock at an exercise price of $11.50 per share (the “$11.50 Warrants”). | |
The Company may redeem each of the $11.50 Warrants at a price of $0.01 upon 30 days prior notice, provided that the warrants are exercisable and the registration statement covering the common stock issuable upon exercise of the warrants remains effective and available, and provided further that such redemption can only be made if the closing price of the common stock is at least $18.00 per share for any 20 trading days within a 30-trading-day period ending on the third day prior to the date on which notice of redemption is given. If the registration statement is not still effective at the time of exercise, the holders of the $11.50 Warrants will not be entitled to exercise the warrants, and in no event (whether in the case of a registration statement not being effective or otherwise) will the Company be required to net cash settle any such warrant exercise. Consequently, the $11.50 Warrants may expire unexercised and unredeemed. The number of shares of the Company’s common stock issuable upon the exercise of each $11.50 Warrant is subject to adjustment from time to time upon the occurrence of specified events. As of September 30, 2013, 277,021 of the $11.50 Warrants remained outstanding. Any remaining outstanding $11.50 Warrants will expire in February 2015. | |
Series A Cumulative Convertible Perpetual Preferred Stock | |
The Company is authorized to issue 2.0 million shares of preferred stock with a par value of $0.0001 per share. In the fourth quarter of 2012, the Company issued 1.0 million shares of its 7.00% Series A Cumulative Convertible Perpetual Preferred Stock (the “Series A Preferred Stock”) in a private offering. The Company received proceeds of $96.5 million from the sale of the Series A Preferred Stock, net of the aggregate $3.5 million in initial purchaser discount and additional offering costs. The Company intends to use the net proceeds of the private offering to partially fund the construction and deployment of Iridium NEXT and for other general corporate purposes. The remaining 1.0 million authorized shares of preferred stock remain undesignated and unissued as of September 30, 2013. | |
Holders of Series A Preferred Stock are entitled to receive cumulative cash dividends at a rate of 7.00% per annum of the $100 liquidation preference per share (equivalent to an annual rate of $7.00 per share). Dividends are payable quarterly in arrears on each March 15, June 15, September 15 and December 15. The Series A Preferred Stock does not have a stated maturity date and is not subject to any sinking fund or mandatory redemption provisions. The Series A Preferred Stock ranks senior to the Company’s common stock with respect to dividend rights and rights upon the Company’s liquidation, dissolution or winding-up. Holders of Series A Preferred Stock generally have no voting rights except for limited voting rights if the Company fails to pay dividends for six or more quarterly periods (whether or not consecutive) and in other specified circumstances. Holders of Series A Preferred Stock may convert some or all of their outstanding Series A Preferred Stock initially at a conversion rate of 10.6022 shares of common stock per $100 liquidation preference, which is equivalent to an initial conversion price of approximately $9.43 per share of common stock (subject to adjustment in certain events). | |
In 2012, the Company paid $1.4 million in cash dividends to its holders of Series A Preferred Stock. In March 2013, June 2013, and September 2013, the Company paid cash dividends of $1.75 million to holders of the Series A Preferred Stock. As of September 30, 2013, holders of the Series A Preferred Stock have accrued $0.3 million in cash dividends, which is included within accrued expenses and other current liabilities on the consolidated balance sheet. | |
On or after October 3, 2017, the Company may, at its option, convert some or all of the Series A Preferred Stock into the number of shares of common stock that are issuable at the then-applicable conversion rate, subject to specified conditions. On or prior to October 3, 2017, the holders of Series A Preferred Stock will have a special right to convert some or all of the Series A Preferred Stock into shares of common stock in the event of fundamental changes described in the Certificate of Designations for the Series A Preferred Stock, subject to specified conditions and limitations. In certain circumstances, the Company may also elect to settle conversions in cash as a result of these fundamental changes. | |
Net_Income_Per_Share
Net Income Per Share | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Share [Text Block] | 7. Net Income Per Share | |||||||
The computations of basic and diluted net income per share are set forth as follows: | ||||||||
Three Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands, except per share data) | ||||||||
Numerator: | ||||||||
Net income attributable to common stockholders | $ | 14,835 | $ | 17,839 | ||||
Net income allocated to participating securities | -11 | -11 | ||||||
Numerator for basic net income per share | 14,824 | 17,828 | ||||||
Dividends on Series A Preferred Stock | 1,750 | - | ||||||
Numerator for diluted net income per share | $ | 16,574 | $ | 17,828 | ||||
Denominator: | ||||||||
Denominator for basic net income per share - weighted | 76,962 | 74,376 | ||||||
average outstanding common shares | ||||||||
Dilutive effect of warrants | - | 1,731 | ||||||
Dilutive effect of stock options | 3 | 1 | ||||||
Dilutive effect of contingently issuable shares | 24 | 23 | ||||||
Dilutive effect of Series A Preferred Stock | 10,602 | - | ||||||
Denominator for diluted net income per share | 87,591 | 76,131 | ||||||
Net income attributable to common stockholders per share - basic | $ | 0.19 | $ | 0.24 | ||||
Net income attributable to common stockholders per share - diluted | $ | 0.19 | $ | 0.23 | ||||
For the three months ended September 30, 2013, warrants to purchase 0.3 million shares of common stock and options to purchase 4.8 million shares of common stock were not included in the computation of diluted net income per share as the effect would be anti-dilutive. Additionally, for the three months ended September 30, 2013, 0.9 million unvested RSUs were excluded from the computation of basic and diluted net income per share. | ||||||||
For the three months ended September 30, 2012, warrants to purchase 0.3 million shares of common stock and options to purchase 4.3 million shares of common stock were not included in the computation of diluted net income per share as the effect would be anti-dilutive. Additionally, for the three months ended September 30, 2012, 0.6 million unvested RSUs were excluded from the computation of basic and diluted net income per share. | ||||||||
Nine Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands, except per share data) | ||||||||
Numerator: | ||||||||
Net income attributable to common stockholders | $ | 41,682 | $ | 47,920 | ||||
Net income allocated to participating securities | -48 | -47 | ||||||
Numerator for basic net income per share | 41,634 | 47,873 | ||||||
Dividends on Series A Preferred Stock | 5,250 | - | ||||||
Numerator for diluted net income per share | $ | 46,884 | $ | 47,873 | ||||
Denominator: | ||||||||
Denominator for basic net income per share - weighted | 76,877 | 73,738 | ||||||
average outstanding common shares | ||||||||
Dilutive effect of warrants | 1 | 2,092 | ||||||
Dilutive effect of stock options | - | 8 | ||||||
Dilutive effect of contingently issuable shares | 52 | 48 | ||||||
Dilutive effect of Series A Preferred Stock | 10,602 | - | ||||||
Denominator for diluted net income per share | 87,532 | 75,886 | ||||||
Net income attributable to common stockholders per share - basic | $ | 0.54 | $ | 0.65 | ||||
Net income attributable to common stockholders per share - diluted | $ | 0.54 | $ | 0.63 | ||||
For the nine months ended September 30, 2013, warrants to purchase 0.3 million shares of common stock and options to purchase 5.2 million shares of common stock were not included in the computation of diluted net income per share as the effect would be anti-dilutive. Additionally, for the nine months ended September 30, 2013, 0.9 million unvested RSUs were excluded from the computation of basic and diluted net income per share. | ||||||||
For the nine months ended September 30, 2012, warrants to purchase 0.3 million shares of common stock and options to purchase 4.1 million shares of common stock were not included in the computation of diluted net income per share as the effect would be anti-dilutive. Additionally, for the nine months ended September 30, 2012, 0.5 million unvested RSUs were excluded from the computation of basic and diluted net income per share. | ||||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Accounting Policies [Abstract] | |||||
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment | ||||
Property and equipment is carried at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the following estimated useful lives: | |||||
Satellites | estimated useful life | ||||
Ground system | 5-7 years | ||||
Equipment | 3-5 years | ||||
Internally developed software and purchased software | 3-7 years | ||||
Building | 39 years | ||||
Building improvements | estimated useful life | ||||
Leasehold improvements | shorter of useful life or remaining lease term | ||||
The estimated useful lives of the Company’s satellites are the remaining period of expected use for each satellite. Satellites are depreciated on a straight-line basis through the earlier of the estimated remaining useful life or the date they are expected to be replaced by Iridium NEXT satellites. Based on the current launch schedule, the Company expects Iridium NEXT satellites to begin deployment in early 2015, with the final launch expected to occur by mid-2017. | |||||
Repairs and maintenance costs are expensed as incurred. | |||||
Standard Product Warranty, Policy [Policy Text Block] | Warranty Expense | ||||
The Company provides the first end-user purchaser of its subscriber equipment a warranty for one to five years from the date of purchase by such first end-user, depending on the product. The Company maintains a warranty reserve based on historical experience of warranty costs and expected occurrences of warranty claims on equipment. Costs associated with warranties, including equipment replacements, repairs, freight, and program administration, are recorded as cost of subscriber equipment in the accompanying condensed consolidated statements of operations and comprehensive income. Due to an increase in the warranty provision related to projected higher warranty claims and other warranty-related initiatives for the Iridium Pilot® terminals, the Company recorded an additional $5.5 million to the warranty provision during the nine months ended September 30, 2013. Changes in the warranty reserve during the nine months ended September 30, 2013 were as follows: | |||||
Nine Months Ended | |||||
September 30, 2013 | |||||
(in thousands) | |||||
Balance at beginning of the period | $ | 4,050 | |||
Provision | 9,524 | ||||
Utilization | -4,707 | ||||
Balance at end of the period | $ | 8,867 | |||
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements | ||||
The Company evaluates assets and liabilities subject to fair value measurements on a recurring and non-recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgments to be made by management of the Company. The instruments identified as subject to fair value measurements on a recurring basis are cash and cash equivalents, marketable securities, prepaid expenses, deposits and other current assets, accounts receivable, accounts payable, accrued expenses and other current liabilities. Fair value is the price that would be received from the sale of an asset or paid to transfer a liability assuming an orderly transaction in the most advantageous market at the measurement date. U.S. GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of observability of inputs used in measuring fair value. The fair value hierarchy consists of the following tiers: | |||||
• | Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; | ||||
• | Level 2, defined as observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and | ||||
• | Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | ||||
As of September 30, 2013 and December 31, 2012, the carrying values of short-term financial instruments (primarily cash and cash equivalents, prepaid expenses, deposits and other current assets, accounts receivable, accounts payable, accrued expenses and other current liabilities and other obligations) approximate their fair values because of their short-term nature. The fair value of the Company’s investments in money market funds approximates their carrying value; such instruments are classified as Level 1 and are included in cash and cash equivalents on the condensed consolidated balance sheet. The fair value of the Company’s investments in commercial paper and short-term U.S. agency securities with original maturities of less than ninety days approximates their carrying value; such instruments are classified as Level 2 and are included in cash and cash equivalents on the condensed consolidated balance sheet. | |||||
The fair value of the Company’s investments in fixed-income debt securities and commercial paper with original maturities of greater than ninety days are obtained using similar investments traded on active securities exchanges and are classified as Level 2. | |||||
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Accounting Policies [Abstract] | |||||
Schedule of Product Warranty Liability [Table Text Block] | Changes in the warranty reserve during the nine months ended September 30, 2013 were as follows: | ||||
Nine Months Ended | |||||
September 30, 2013 | |||||
(in thousands) | |||||
Balance at beginning of the period | $ | 4,050 | |||
Provision | 9,524 | ||||
Utilization | -4,707 | ||||
Balance at end of the period | $ | 8,867 | |||
Cash_and_Cash_Equivalents_Rest1
Cash and Cash Equivalents, Restricted Cash and Marketable Securities (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||
Schedule of Cash and Cash Equivalents [Table Text Block] | The following table summarizes the Company’s cash and cash equivalents as of September 30, 2013 and December 31, 2012: | ||||||||||
September 30, | December 31, | Recurring Fair | |||||||||
2013 | 2012 | Value Measurement | |||||||||
(in thousands) | |||||||||||
Cash and cash equivalents: | |||||||||||
Cash | $ | 91,911 | $ | 166,326 | |||||||
Money market funds | 88,589 | 88,092 | Level 1 | ||||||||
Commercial paper | 14,496 | - | Level 2 | ||||||||
Government-issued debt securities | 2,001 | - | Level 2 | ||||||||
Total Cash and cash equivalents | $ | 196,997 | $ | 254,418 | |||||||
Marketable Securities [Table Text Block] | The following table summarizes the Company’s marketable securities as of September 30, 2013: | ||||||||||
September 30, | Recurring Fair | ||||||||||
2013 | Value Measurement | ||||||||||
(in thousands) | |||||||||||
Marketable securities: | |||||||||||
Fixed-income debt securities | $ | 57,109 | Level 2 | ||||||||
Commercial paper | 16,216 | Level 2 | |||||||||
Total Marketable securities | $ | 73,325 | |||||||||
Schedule of Investments Classified By Contractual Maturity Date [Table Text Block] | The following table presents the contractual maturities of the fixed income debt securities and commercial paper held as of September 30, 2013: | ||||||||||
Amortized | Unrealized | Estimated | |||||||||
Cost | Gain (Loss) | Fair Value | |||||||||
(in thousands) | |||||||||||
Fixed-income debt securities: | |||||||||||
Mature within one year | $ | 5,953 | $ | 2 | $ | 5,955 | |||||
Mature after one year and within three years | 51,264 | -110 | 51,154 | ||||||||
Commercial paper: | |||||||||||
Mature within one year | 16,216 | - | 16,216 | ||||||||
Total | $ | 73,433 | $ | -108 | $ | 73,325 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum lease payments, by year and in the aggregate, under the noncancelable operating lease starting in 2014 for the TSC are as follows: | ||||
Operating | |||||
Year ending December 31, | Lease | ||||
(In thousands) | |||||
2014 | $ | 359 | |||
2015 | 730 | ||||
2016 | 755 | ||||
2017 | 779 | ||||
2018 | 804 | ||||
Thereafter | 4,621 | ||||
Total | $ | 8,048 | |||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The computations of basic and diluted net income per share are set forth as follows: | |||||||
Three Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands, except per share data) | ||||||||
Numerator: | ||||||||
Net income attributable to common stockholders | $ | 14,835 | $ | 17,839 | ||||
Net income allocated to participating securities | -11 | -11 | ||||||
Numerator for basic net income per share | 14,824 | 17,828 | ||||||
Dividends on Series A Preferred Stock | 1,750 | - | ||||||
Numerator for diluted net income per share | $ | 16,574 | $ | 17,828 | ||||
Denominator: | ||||||||
Denominator for basic net income per share - weighted | 76,962 | 74,376 | ||||||
average outstanding common shares | ||||||||
Dilutive effect of warrants | - | 1,731 | ||||||
Dilutive effect of stock options | 3 | 1 | ||||||
Dilutive effect of contingently issuable shares | 24 | 23 | ||||||
Dilutive effect of Series A Preferred Stock | 10,602 | - | ||||||
Denominator for diluted net income per share | 87,591 | 76,131 | ||||||
Net income attributable to common stockholders per share - basic | $ | 0.19 | $ | 0.24 | ||||
Net income attributable to common stockholders per share - diluted | $ | 0.19 | $ | 0.23 | ||||
Nine Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands, except per share data) | ||||||||
Numerator: | ||||||||
Net income attributable to common stockholders | $ | 41,682 | $ | 47,920 | ||||
Net income allocated to participating securities | -48 | -47 | ||||||
Numerator for basic net income per share | 41,634 | 47,873 | ||||||
Dividends on Series A Preferred Stock | 5,250 | - | ||||||
Numerator for diluted net income per share | $ | 46,884 | $ | 47,873 | ||||
Denominator: | ||||||||
Denominator for basic net income per share - weighted | 76,877 | 73,738 | ||||||
average outstanding common shares | ||||||||
Dilutive effect of warrants | 1 | 2,092 | ||||||
Dilutive effect of stock options | - | 8 | ||||||
Dilutive effect of contingently issuable shares | 52 | 48 | ||||||
Dilutive effect of Series A Preferred Stock | 10,602 | - | ||||||
Denominator for diluted net income per share | 87,532 | 75,886 | ||||||
Net income attributable to common stockholders per share - basic | $ | 0.54 | $ | 0.65 | ||||
Net income attributable to common stockholders per share - diluted | $ | 0.54 | $ | 0.63 | ||||
Significant_Accounting_Policie3
Significant Accounting Policies (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Balance at beginning of the period | $4,050 |
Provision | 9,524 |
Utilization | -4,707 |
Balance at end of the period | $8,867 |
Significant_Accounting_Policie4
Significant Accounting Policies (Details Textual) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Contribution To Warranty Provision | $5.50 |
Satellites [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | estimated useful life |
Ground System [Member] | |
Property Plant And Equipment Estimated Life Minimum | 5 years |
Property Plant And Equipment Estimated Life Maximum | 7 years |
Equipment [Member] | |
Property Plant And Equipment Estimated Life Minimum | 3 years |
Property Plant And Equipment Estimated Life Maximum | 5 years |
Software [Member] | |
Property Plant And Equipment Estimated Life Minimum | 3 years |
Property Plant And Equipment Estimated Life Maximum | 7 years |
Building [Member] | |
Property, Plant and Equipment, Useful Life | 39 years |
Building Improvements [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | estimated useful life |
Leasehold Improvements [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | shorter of useful life or remaining lease term |
Cash_and_Cash_Equivalents_Rest2
Cash and Cash Equivalents, Restricted Cash and Marketable Securities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Cash and cash equivalents: | ||||
Cash | $91,911 | $166,326 | ||
Total Cash and cash equivalents | 196,997 | 254,418 | 189,399 | 136,366 |
Fair Value, Inputs, Level 1 [Member] | ||||
Cash and cash equivalents: | ||||
Money market funds | 88,589 | 88,092 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Cash and cash equivalents: | ||||
Commercial paper | 14,496 | 0 | ||
Government-issued debt securities | $2,001 | $0 |
Cash_and_Cash_Equivalents_Rest3
Cash and Cash Equivalents, Restricted Cash and Marketable Securities (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Marketable securities: | ||
Total Marketable securities | $73,325 | $0 |
Fair Value, Inputs, Level 2 [Member] | ||
Marketable securities: | ||
Fixed-income debt securities | 57,109 | |
Commercial paper | $16,216 |
Cash_and_Cash_Equivalents_Rest4
Cash and Cash Equivalents, Restricted Cash and Marketable Securities (Details 2) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Fixed-income debt securities: | |
Mature within one year - Amortized Cost | $5,953 |
Mature after one year and within three years - Amortized Cost | 51,264 |
Mature within one year - Gross Unrealized Gain (Loss) | 2 |
Mature after one year and within three years - Gross Unrealized Gain (Loss) | -110 |
Mature within one year - Estimated Fair Value | 5,955 |
Mature after one year and within three years - Estimated Fair Value | 51,154 |
Commercial paper: | |
Mature within one year - Amortized Cost | 16,216 |
Mature within one year - Gross Unrealized Gain (Loss) | 0 |
Mature within one year - Estimated Fair Value | 16,216 |
Total - Amortized Cost | 73,433 |
Total - Gross Unrealized Gain (Loss) | -108 |
Total - Estimated Fair Value | $73,325 |
Cash_and_Cash_Equivalents_Rest5
Cash and Cash Equivalents, Restricted Cash and Marketable Securities (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Restricted cash | $81,215,000 | $81,215,000 | $54,233,000 | ||
Line Of Credit Facility, Maximum Borrowing Capacity | 1,800,000,000 | 1,800,000,000 | |||
Available-for-sale Securities, Gross Unrealized Gain (Loss), Total | -108,000 | ||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) On Securities Arising During Period, Net Of Tax | $219,000 | $0 | ($66,000) | $0 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |
Year ending December 31, | |
2014 | $359 |
2015 | 730 |
2016 | 755 |
2017 | 779 |
2018 | 804 |
Thereafter | 4,621 |
Total | $8,048 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2011 | Sep. 30, 2013 | |
FSD [Member] | Thales Alenia Space France [Member] | Space Exploration Technologies Corp [Member] | Space Exploration Technologies Corp [Member] | Kosmotras [Member] | Kosmotras [Member] | Technical Support Center [Member] | ||||
Long-term Purchase Commitment, Description | The remaining amounts owed under the contract will be paid through 2015 or 2016, depending on the number of launches purchased and the launch schedule | |||||||||
Construction in Progress, Gross | $993,600,000 | $65,100,000 | $18,300,000 | |||||||
Maximum Commitments Amount | 453,100,000 | |||||||||
Commitments Price For Design and Build Of Satellites | 2,200,000,000 | |||||||||
Purchase Obligation | 184,300,000 | |||||||||
Credit facility | 936,290,000 | 936,290,000 | 751,787,000 | |||||||
Unused Portion Credit Facility | 863,700,000 | 863,700,000 | ||||||||
Minimum Required Cash Reserve Balance For Credit Facility | 81,000,000 | 81,000,000 | ||||||||
Minimum Required Cash Reserve Balance For Credit Facility At Beginning Of Repayment Period | 189,000,000 | |||||||||
Interest Expense, Debt, Total | 10,300,000 | 28,200,000 | ||||||||
Line Of Credit Facility Interest Payable In Cash | 3,100,000 | 8,600,000 | ||||||||
Line Of Credit Facility Interest Payable In Deemed Loans | 7,200,000 | 19,600,000 | ||||||||
Line Of Credit Facility Interest Payable | 16,800,000 | 16,800,000 | ||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.80% | |||||||||
Line Of Credit Facility, Commitment Fee Payable | 3,800,000 | 3,800,000 | ||||||||
Lease Extended Period | extended from 2014 to 2024 | |||||||||
Line Of Credit Facility Cash Interest Payments During Period | 3,500,000 | |||||||||
Line Of Credit Facility Interest Payable In Cash Accrued | 5,100,000 | 5,100,000 | ||||||||
Line Of Credit Facility Interest Payments Via Deemed Loan During Period | 7,900,000 | |||||||||
Line Of Credit Facility Interest Payable In Deemed Loans Accrued | 11,700,000 | 11,700,000 | ||||||||
Purchase Obligation Amount For Single Launch | $51,800,000 | $51,800,000 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Grant Date Fair Value Of Stock Options | $0.30 | $3.20 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 92,000 | 1,226,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |
First Anniversary Vesting Percentage | 25.00% | |
Consultant [Member] | ||
Grant Date Fair Value Of Stock Options | 0.1 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 45,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |
2012 Stock Incentive Plan [Member] | ||
Number Of Shares Stock Incentive Plan Newly Authorized | 13,416,019 | 13,416,019 |
Employee Stock Option [Member] | Non Employee [Member] | ||
Grant Date Fair Value Of Stock Options | 0.2 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 68,000 | |
Quarterly Vesting Percentage | 25.00% | |
Restricted Stock Units (RSUs) [Member] | Non Employee [Member] | ||
Grant Date Fair Value Of Restricted Stock Units | 0.8 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 112,000 | |
Quarterly Vesting Percentage | 25.00% | |
Service Based Rsu [Member] | ||
Grant Date Fair Value Of Restricted Stock Units | 3.2 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 523,000 | |
Performance Based Rsu [Member] | ||
Grant Date Fair Value Of Restricted Stock Units | $1.40 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 228,000 | |
Share-Based Compensation Arrangement By Share-Based Payment Award, Restricted Stock Vesting Range Minimum | 0.00% | |
Share-Based Compensation Arrangement By Share-Based Payment Award, Restricted Stock Vesting Range Maximum | 150.00% | |
Percentage Of Restricted Stock Units Awards Vested After Two Years | 50.00% | |
Percentage Of Restricted Stock Units Awards Vested After Third Year | 50.00% |
Equity_Instruments_Details_Tex
Equity Instruments (Details Textual) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Feb. 14, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2008 | Sep. 29, 2009 | Sep. 30, 2013 | Dec. 31, 2009 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | |
Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Cumulative Convertible Perpetual Preferred Stock [Member] | 7.00 Warrants [Member] | 7.00 Warrants [Member] | 11.50 Warrants [Member] | 11.50 Warrants [Member] | 11.50 Warrants [Member] | Tender Offer Warrant Exchange [Member] | Private Warrant Exchanges [Member] | Private Offering [Member] | Private Offering [Member] | |||||
7.00 Warrants [Member] | Series A Preferred Stock [Member] | Convertible Preferred Stock [Member] | |||||||||||||||
Stock Issued During Period Units Of Initial Public Offering | 40,000,000 | ||||||||||||||||
Price Per Unit Of Initial Public Offering | $10 | ||||||||||||||||
Price Per Share Of Common Stock | $7 | $11.50 | |||||||||||||||
Price Per Share Of Warrants | $7 | $7 | $11.50 | ||||||||||||||
Shares Of Warrants Outstanding | 655,499 | ||||||||||||||||
Unexercised Warrants Price Per Share | $7 | ||||||||||||||||
Redemption Price Per Warrant | $0.01 | ||||||||||||||||
Investment Warrant Expiration Year | Feb-15 | ||||||||||||||||
Number Of Warrants Exchange For New Warrants | 14,400,000 | ||||||||||||||||
Common Stock Redemption Price Description | closing price of the common stock is at least $18.00 per share for any 20 trading days within a 30-trading-day period | ||||||||||||||||
Issuance Of Common Stock For Exchange Warrants | 1,300,000 | 1,386,941 | 562,370 | ||||||||||||||
Number Of Warrants Exchange To Common Stock | 8,321,433 | 3,374,220 | |||||||||||||||
Class of Warrant or Right, Outstanding | 277,021 | ||||||||||||||||
Class Of Warrant Exercise Price Of Warrants | $11.50 | $7 | |||||||||||||||
Warrants Exchange Percentage To Issue Common Stock | 27.00% | ||||||||||||||||
Ratio Of Shares Offered To Warrant Holders | one share of common stock for every six of the $7.00 Warrants tendered | ||||||||||||||||
Number Of Shares Issued For Each Warrant | 0.1667 | 0.1667 | |||||||||||||||
Preferred stock, shares issued | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||||||||
Convertible Perpetual Preferred Discount On Issue Of Shares Including Offering Costs | $3,500,000 | ||||||||||||||||
Net Proceeds From Issuance Of Convertible Preferred Stock | 96,500,000 | ||||||||||||||||
Cumulative Cash Dividends Rate | 7.00% | ||||||||||||||||
Preferred Stock, Liquidation Preference Per Share | $100 | $100 | |||||||||||||||
Preferred Stock Conversion Rate | 10.6022 | ||||||||||||||||
Preferred Stock Convertible Conversion Price | $9.43 | ||||||||||||||||
Adjustments to Additional Paid in Capital, Warrant Issued | 9,100,000 | ||||||||||||||||
Dividends Payable, Current | 300,000 | ||||||||||||||||
Preferred Stock, Par Or Stated Value Per Share | $0.00 | $0.00 | $0.00 | ||||||||||||||
Preferred Stock Shares Authorized Undesignated And Unissued | 1,000,000 | ||||||||||||||||
Payments Of Dividends | $5,250,000 | $0 | $1,400,000 | $1,750,000 | $1,750,000 | $1,750,000 | |||||||||||
Preferred Stock Shares Authorized Gross | 2,000,000 |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Numerator: | ||||
Net income attributable to common stockholders | $14,835 | $17,839 | $41,682 | $47,920 |
Net income allocated to participating securities | -11 | -11 | -48 | -47 |
Numerator for basic net income per share | 14,824 | 17,828 | 41,634 | 47,873 |
Dividends on Series A Preferred Stock | 1,750 | 0 | 5,250 | 0 |
Numerator for diluted net income per share | $16,574 | $17,828 | $46,884 | $47,873 |
Denominator: | ||||
Denominator for basic net income per share - weighted average outstanding common shares | 76,962 | 74,376 | 76,877 | 73,738 |
Dilutive effect of warrants | 0 | 1,731 | 1 | 2,092 |
Dilutive effect of stock options | 3 | 1 | 0 | 8 |
Dilutive effect of contingently issuable shares | 24 | 23 | 52 | 48 |
Dilutive effect of Series A Preferred Stock | 10,602 | 0 | 10,602 | 0 |
Denominator for diluted net income per share | 87,591 | 76,131 | 87,532 | 75,886 |
Net income attributable to common stockholders per share - basic (in dollars per share) | $0.19 | $0.24 | $0.54 | $0.65 |
Net income attributable to common stockholders per share - diluted (in dollars per share) | $0.19 | $0.23 | $0.54 | $0.63 |
Net_Income_Per_Share_Details_T
Net Income Per Share (Details Textual) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Restricted Stock Units (RSUs) [Member] | ||||
Securities Excluded from Computation of Earnings Per Share, Amount | 0.9 | 0.6 | 0.9 | 0.5 |
Warrant [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.3 | 0.3 | 0.3 | 0.3 |
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4.8 | 4.3 | 5.2 | 4.1 |