Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 23, 2015 | Jun. 30, 2014 |
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 | 93,978,398 | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $673.60 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $211,249 | $186,342 |
Marketable securities | 261,136 | 76,647 |
Accounts receivable, net | 50,672 | 54,758 |
Inventory | 28,433 | 29,532 |
Deferred income tax assets, net | 11,009 | 9,076 |
Prepaid expenses and other current assets | 10,614 | 13,203 |
Total current assets | 573,113 | 369,558 |
Property and equipment, net | 1,971,839 | 1,575,579 |
Restricted cash | 86,104 | 81,223 |
Other assets | 7,726 | 8,909 |
Intangible assets, net | 47,416 | 57,452 |
Deferred financing costs | 136,444 | 130,036 |
Goodwill | 87,039 | 87,039 |
Total assets | 2,909,681 | 2,309,796 |
Current liabilities: | ||
Accounts payable | 17,677 | 12,934 |
Accrued expenses and other current liabilities | 38,419 | 39,209 |
Interest payable | 9,589 | 7,989 |
Deferred revenue | 36,665 | 41,367 |
Total current liabilities | 102,350 | 101,499 |
Accrued satellite operations and maintenance expense, net of current portion | 15,051 | 16,389 |
Credit facility | 1,291,401 | 1,039,203 |
Deferred income tax liabilities, net | 245,042 | 202,825 |
Deferred revenue, net of current portion | 20,689 | 7,000 |
Other long-term liabilities | 3,284 | 3,385 |
Total liabilities | 1,677,817 | 1,370,301 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock, $0.001 par value, 300,000 shares authorized and 93,905 and 76,690 shares issued and outstanding, respectively | 94 | 77 |
Additional paid-in capital | 1,033,176 | 801,262 |
Retained earnings | 201,514 | 138,845 |
Accumulated other comprehensive loss, net of tax | -2,920 | -689 |
Total stockholders' equity | 1,231,864 | 939,495 |
Total liabilities and stockholders' equity | 2,909,681 | 2,309,796 |
Series A Preferred Stock [Member] | ||
Stockholders' equity | ||
Preferred Stock Value | 0 | 0 |
Series B Preferred Stock [Member] | ||
Stockholders' equity | ||
Preferred Stock Value | $0 | $0 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets [Parenthetical] (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Preferred stock, par value (in dollars per share) | $0.00 | |
Preferred stock, shares authorized | 2,000 | |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 300,000 | 300,000 |
Common stock, shares issued | 93,905 | 76,690 |
Common stock, shares outstanding | 93,905 | 76,690 |
Series A Preferred Stock [Member] | ||
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 |
Series B Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 500 | 0 |
Preferred stock, shares issued | 500 | 0 |
Preferred stock, shares outstanding | 500 | 0 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue: | |||
Services | $309,424 | $292,092 | $273,491 |
Subscriber equipment | 78,152 | 73,303 | 93,866 |
Engineering and support services | 20,981 | 17,254 | 16,163 |
Total revenue | 408,557 | 382,649 | 383,520 |
Operating expenses: | |||
Cost of services (exclusive of depreciation and amortization) | 62,085 | 59,346 | 60,937 |
Cost of subscriber equipment | 54,569 | 52,062 | 53,285 |
Research and development | 17,587 | 11,149 | 15,525 |
Selling, general and administrative | 78,636 | 75,218 | 67,589 |
Depreciation and amortization | 72,769 | 74,980 | 81,110 |
Total operating expenses | 285,646 | 272,755 | 278,446 |
Operating income | 122,911 | 109,894 | 105,074 |
Other income (expense): | |||
Interest income, net | 3,640 | 2,276 | 1,072 |
Undrawn credit facility fees | -5,825 | -7,708 | -10,232 |
Other income (expense), net | -4,274 | 6,003 | -896 |
Total other income (expense) | -6,459 | 571 | -10,056 |
Income before income taxes | 116,452 | 110,465 | 95,018 |
Provision for income taxes | -41,463 | -47,948 | -30,387 |
Net income | 74,989 | 62,517 | 64,631 |
Net income attributable to common stockholders | 62,669 | 55,517 | 62,939 |
Weighted average shares outstanding - basic (in shares) | 88,080 | 76,909 | 74,239 |
Weighted average shares outstanding - diluted (in shares) | 109,400 | 87,511 | 78,182 |
Net income attributable to common stockholders per share - basic (in dollars per share) | $0.71 | $0.72 | $0.85 |
Net income attributable to common stockholders per share - diluted (in dollars per share) | $0.69 | $0.71 | $0.83 |
Comprehensive income: | |||
Net income | 74,989 | 62,517 | 64,631 |
Foreign currency translation adjustments, net of tax | -2,325 | -322 | -132 |
Unrealized gain (loss) on marketable securities, net of tax | 94 | -10 | 0 |
Comprehensive income | 72,758 | 62,185 | 64,499 |
Series A Preferred Stock [Member] | |||
Other income (expense): | |||
Preferred Stock dividends | 7,000 | 7,000 | 1,692 |
Series B Preferred Stock [Member] | |||
Other income (expense): | |||
Preferred Stock dividends | $5,320 | $0 | $0 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series A Convertible Preferred Stock [Member] | Series A Convertible Preferred Stock [Member] | Series B Convertible Preferred Stock [Member] | Series B Convertible Preferred Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Retained Earnings [Member] | Retained Earnings [Member] |
In Thousands, except Share data | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | |||||||||
Balance at Dec. 31, 2011 | $702,018 | $0 | $0 | $73 | $681,781 | ($225) | $20,389 | ||||||||||||
Balance (in shares) at Dec. 31, 2011 | 0 | 0 | 73,205,000 | ||||||||||||||||
Stock-based compensation | 8,150 | 0 | 0 | 0 | 8,150 | 0 | 0 | ||||||||||||
Issuance of Convertible Preferred Stock | 96,499 | 0 | 0 | 96,499 | 0 | 0 | |||||||||||||
Issuance of Convertible Preferred Stock (in shares) | 1,000,000 | 0 | |||||||||||||||||
Stock issued upon exercise of stock warrants | 9,114 | 0 | 0 | 1 | 9,113 | 0 | 0 | ||||||||||||
Stock issued upon exercise of stock warrants (in shares) | 0 | 0 | 1,302,000 | ||||||||||||||||
Stock issued upon exchange of warrants and related transaction costs | -2,073 | 0 | 0 | 2 | -2,075 | 0 | 0 | ||||||||||||
Stock issued upon exchange of warrants and related transaction costs (in shares) | 0 | 0 | 1,949,000 | ||||||||||||||||
Stock issued in connection with employee stock plan | 43 | 0 | 0 | 0 | 43 | 0 | 0 | ||||||||||||
Stock issued in connection with employee stock plan (in shares) | 0 | 0 | 5,000 | ||||||||||||||||
Stock withheld to cover employee taxes | 0 | ||||||||||||||||||
Net income | 64,631 | 0 | 0 | 0 | 0 | 0 | 64,631 | ||||||||||||
Dividends on Preferred Stock | 1,692 | 0 | 0 | 0 | 0 | 0 | -1,692 | ||||||||||||
Cumulative translation adjustments | -132 | 0 | 0 | 0 | 0 | -132 | 0 | ||||||||||||
Balance at Dec. 31, 2012 | 876,558 | 0 | 0 | 76 | 793,511 | -357 | 83,328 | ||||||||||||
Balance (in shares) at Dec. 31, 2012 | 1,000,000 | 0 | 76,461,000 | ||||||||||||||||
Stock-based compensation | 7,749 | 0 | 0 | 0 | 7,749 | 0 | 0 | ||||||||||||
Stock issued upon exercise of stock warrants | 4 | 0 | 0 | 0 | 4 | 0 | 0 | ||||||||||||
Stock issued upon exercise of stock warrants (in shares) | 0 | 0 | 1,000 | ||||||||||||||||
Stock issued in connection with employee stock plan | 25 | 0 | 0 | 1 | 24 | 0 | 0 | ||||||||||||
Stock issued in connection with employee stock plan (in shares) | 0 | 0 | 228,000 | ||||||||||||||||
Stock withheld to cover employee taxes | -26 | 0 | 0 | 0 | -26 | 0 | 0 | ||||||||||||
Net income | 62,517 | 0 | 0 | 0 | 0 | 0 | 62,517 | ||||||||||||
Dividends on Preferred Stock | 7,000 | 0 | 0 | 0 | 0 | 0 | -7,000 | ||||||||||||
Cumulative translation adjustments | -322 | 0 | 0 | 0 | 0 | -322 | 0 | ||||||||||||
Unrealized gain (loss) on marketable securities, net of tax | -10 | 0 | 0 | 0 | 0 | -10 | 0 | ||||||||||||
Balance at Dec. 31, 2013 | 939,495 | 0 | 0 | 77 | 801,262 | -689 | 138,845 | ||||||||||||
Balance (in shares) at Dec. 31, 2013 | 1,000,000 | 0 | 76,690,000 | ||||||||||||||||
Stock-based compensation | 10,860 | 0 | 0 | 0 | 10,860 | 0 | 0 | ||||||||||||
Stock issued in connection with employee stock plan | 1,508 | 0 | 0 | 1 | 1,507 | 0 | 0 | ||||||||||||
Stock issued in connection with employee stock plan (in shares) | 0 | 0 | 535,000 | ||||||||||||||||
Stock withheld to cover employee taxes | -87 | 0 | 0 | 0 | -87 | 0 | 0 | ||||||||||||
Issuance of common stock | 98,897 | 120,753 | 0 | 0 | 0 | 16 | 0 | 98,881 | 120,753 | 0 | 0 | 0 | 0 | ||||||
Issuance of common stock (in shares) | 0 | 0 | 500,000 | 16,680,000 | |||||||||||||||
Net income | 74,989 | 0 | 0 | 0 | 0 | 0 | 74,989 | ||||||||||||
Dividends on Preferred Stock | 7,000 | 5,320 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -7,000 | -5,320 | |||||||
Cumulative translation adjustments | -2,325 | 0 | 0 | 0 | 0 | -2,325 | 0 | ||||||||||||
Unrealized gain (loss) on marketable securities, net of tax | 94 | 0 | 0 | 0 | 0 | 94 | 0 | ||||||||||||
Balance at Dec. 31, 2014 | $1,231,864 | $0 | $0 | $94 | $1,033,176 | ($2,920) | $201,514 | ||||||||||||
Balance (in shares) at Dec. 31, 2014 | 1,000,000 | 500,000 | 93,905,000 | 0 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $74,989 | $62,517 | $64,631 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Deferred income taxes | 40,226 | 47,095 | 29,549 |
Depreciation and amortization | 72,769 | 74,980 | 81,110 |
Stock-based compensation | 9,601 | 6,715 | 7,332 |
Provision for doubtful accounts | 13 | -525 | 722 |
Provision for obsolete inventory | 931 | 1,479 | 0 |
Loss on equity method investment | 4,130 | 3,332 | 826 |
Amortization of premiums on marketable securities | 709 | 546 | 0 |
Non-cash foreign currency losses, net | 962 | 0 | 0 |
Realized loss on sale of marketable securities | 0 | 82 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 3,855 | 1,901 | 561 |
Inventory | 251 | -4,633 | -11,199 |
Prepaid expenses and other current assets | 1,520 | -7,684 | -200 |
Income tax receivable | 679 | 3,617 | 28 |
Other assets | -2,926 | -4,328 | 364 |
Accounts payable | -2,636 | -5,603 | 464 |
Accrued expenses and other current liabilities | 634 | 9,694 | -6,400 |
Deferred revenue | 10,603 | 5,612 | 7,310 |
Accrued satellite and network operation expense, net of current portion | -1,338 | -1,338 | -1,338 |
Other long-term liabilities | -100 | -10,411 | 263 |
Net cash provided by operating activities | 214,872 | 183,048 | 174,023 |
Cash flows from investing activities: | |||
Capital expenditures | -441,065 | -403,547 | -441,654 |
Purchases of marketable securities | -275,819 | -126,408 | 0 |
Sales and maturities of marketable securities | 90,630 | 49,119 | 0 |
Investment in equity method affiliate | 0 | -5,000 | -1,888 |
Net cash used in investing activities | -626,254 | -485,836 | -443,542 |
Cash flows from financing activities: | |||
Borrowings under the Credit Facility | 252,198 | 287,416 | 334,654 |
Payment of deferred financing fees | -17,580 | -18,716 | -22,168 |
Restricted cash deposits | -15,889 | -26,990 | -27,079 |
Releases from restricted cash | 11,009 | 0 | 0 |
Proceeds from exercise of warrants | 0 | 3 | 9,114 |
Proceeds from exercise of stock options | 1,508 | 25 | 43 |
Tax payment upon settlement of stock awards | -87 | -26 | 0 |
Payment of warrant exchange transaction costs | 0 | 0 | -2,073 |
Proceeds from issuance of common stock, net of issuance costs | 98,897 | 0 | 0 |
Net cash provided by financing activities | 438,844 | 234,712 | 387,571 |
Effect of exchange rate changes on cash and cash equivalents | -2,555 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 24,907 | -68,076 | 118,052 |
Cash and cash equivalents, beginning of period | 186,342 | 254,418 | 136,366 |
Cash and cash equivalents, end of period | 211,249 | 186,342 | 254,418 |
Supplemental cash flow information: | |||
Interest paid | 15,009 | 11,255 | 6,971 |
Income taxes paid (refunded), net | 184 | -2,920 | 348 |
Supplemental disclosure of non-cash investing activities: | |||
Property and equipment received but not paid for yet | 16,566 | 10,690 | 3,516 |
Interest capitalized but not paid | 9,589 | 7,989 | 5,359 |
Capitalized paid-in-kind interest | 34,147 | 25,715 | 16,059 |
Capitalized amortization of deferred financing costs | 11,174 | 12,475 | 3,896 |
Capitalized stock-based compensation | 1,259 | 1,034 | 819 |
Contribution of fixed assets to equity method investment | 0 | 0 | 1,353 |
Series A Preferred Stock [Member] | |||
Cash flows from financing activities: | |||
Proceeds from issuance of Preferred Stock, net of issuance costs | 0 | 0 | 96,499 |
Payment of Preferred Stock dividends | -7,000 | -7,000 | -1,419 |
Supplemental disclosure of non-cash financing activities: | |||
Dividends Payable, Current | 292 | 292 | 273 |
Series B Preferred Stock [Member] | |||
Cash flows from financing activities: | |||
Proceeds from issuance of Preferred Stock, net of issuance costs | 120,753 | 0 | 0 |
Payment of Preferred Stock dividends | -4,969 | 0 | 0 |
Supplemental disclosure of non-cash financing activities: | |||
Dividends Payable, Current | $351 | $0 | $0 |
Organization_and_Business
Organization and Business | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Organization and Business |
Iridium Communications Inc. (the “Company”), a Delaware corporation, offers voice and data communications services and products to businesses, U.S. and international government agencies and other customers on a global basis. The Company is a provider of mobile voice and data communications services via a constellation of low earth orbiting satellites. The Company holds various licenses and authorizations from the U.S. Federal Communications Commission (the “FCC”) and from foreign regulatory bodies that permit the Company to conduct its business, including the operation of its satellite constellation. | |
Significant_Accounting_Policie
Significant Accounting Policies and Basis of Presentation | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Significant Accounting Policies [Text Block] | 2. Significant Accounting Policies and Basis of Presentation | ||||||||||
Principles of Consolidation and Basis of Presentation | |||||||||||
The Company has prepared the consolidated financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The accompanying 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 intercompany transactions and balances have been eliminated. | |||||||||||
Use of Estimates | |||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ materially from those estimates. | |||||||||||
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 and other current assets, accounts receivable, accounts payable and 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. | ||||||||||
The carrying values of short-term financial instruments (primarily cash and cash equivalents, prepaid expenses and other current assets, accounts receivable, accounts payable, and accrued expenses and other current liabilities) approximate their fair values because of their short-term nature. The fair value of the Company’s investments in money market funds approximates its carrying value; such instruments are classified as Level 1 and are included in cash and cash equivalents on the accompanying consolidated balance sheets. 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 accompanying consolidated balance sheets. | |||||||||||
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 and are included in marketable securities on the accompanying consolidated balance sheets. For fixed income securities that do not have quoted prices in active markets, the Company uses third-party vendors to price its debt securities resulting in classification as Level 2. | |||||||||||
Concentrations of Credit Risk | |||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, and receivables. The majority of cash is swept nightly into a money market fund invested in U.S. treasuries, Agency Mortgage Backed Securities and/or U.S. Government guaranteed debt. While the Company maintains its cash and cash equivalents with financial institutions with high credit ratings, it often maintains those deposits in federally insured financial institutions in excess of federally insured (FDIC) limits. The Company’s marketable securities are highly-rated corporate and foreign fixed-income debt securities and commercial paper with an original maturity in excess of ninety days. The Company performs credit evaluations of its customers’ financial condition and records reserves to provide for estimated credit losses. Accounts receivable are due from both domestic and international customers. | |||||||||||
Cash, Cash Equivalents and Restricted Cash | |||||||||||
The Company considers all highly liquid investments with original maturities of ninety days or less to be cash equivalents. These investments, along with cash deposited in institutional money market funds, regular interest bearing depository accounts and non-interest bearing depository accounts, are classified as cash and cash equivalents on the accompanying consolidated balance sheets. 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 December 31, 2014 and 2013, 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 $86.1 million and $81.2 million, respectively. For further discussion on the cash reserve for debt service related to the Credit Facility, see the Commitments and Contingencies footnote below. | |||||||||||
Marketable Securities | |||||||||||
Marketable securities consist of fixed-income debt securities and commercial paper with an original maturity in excess of ninety days. These investments are classified as available-for-sale and are included in marketable securities within current assets on the accompanying consolidated balance sheets. 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 material realized gains or losses on the sale of marketable securities for the years ended December 31, 2014 and 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 the decline in fair value of these investments is temporary as the Company does not intend to sell these securities and it is not likely that the Company will be required to sell the securities before the recovery of their amortized cost basis. | |||||||||||
Accounts Receivable | |||||||||||
Trade accounts receivable are recorded at the invoiced amount and are subject to late fee penalties. Management develops its estimate of an allowance for uncollectible receivables based on the Company’s experience with specific customers, aging of outstanding invoices, its understanding of customers’ current economic circumstances and its own judgment as to the likelihood that the Company will ultimately receive payment. The Company writes off its accounts receivable when balances ultimately are deemed uncollectible. The allowance for doubtful accounts was $0.9 million and $0.5 million as of December 31, 2014 and 2013, respectively. | |||||||||||
Foreign Currencies | |||||||||||
The functional currency of the Company’s foreign consolidated subsidiaries is the local currency. Assets and liabilities of its foreign subsidiaries are translated to U.S. dollars based on exchange rates at the end of the reporting period. Income and expense items are translated at the weighted average exchange rates prevailing during the reporting period. Translation adjustments are accumulated in a separate component of stockholders’ equity. Transaction gains or losses are classified as other income (expense), net in the accompanying consolidated statements of operations and comprehensive income. | |||||||||||
Internally Developed Software | |||||||||||
The Company capitalizes the costs of acquiring, developing and testing software to meet its internal needs. Capitalization of costs associated with software obtained or developed for internal use commences when the preliminary project stage is complete and it is probable that the project will be completed and used to perform the function intended. Capitalized costs include only (i) external direct cost of materials and services consumed in developing or obtaining internal-use software and (ii) payroll and payroll-related costs for employees who are directly associated with, and devote time to, the internal-use software project. Capitalization of such costs ceases no later than the point at which the project is substantially complete and ready for its intended use. Internal use software costs are amortized once the software is placed in service using the straight-line method over periods ranging from three to seven years. | |||||||||||
Deferred Financing Costs | |||||||||||
Direct and incremental costs incurred in connection with securing debt financing are deferred and are amortized as additional interest expense using the effective interest method over the term of the related debt. | |||||||||||
As of December 31, 2014 and 2013, the Company had deferred approximately $136.4 million and $130.0 million, respectively, of direct and incremental financing costs, net of amortization, associated with securing debt financing for Iridium NEXT, the Company’s next-generation satellite constellation. | |||||||||||
Capitalized Interest | |||||||||||
Interest costs associated with financing the Company’s assets during the construction period of Iridium NEXT have been capitalized. Capitalized interest and interest expense were as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||
Capitalized interest | $ | 62,019 | $ | 52,136 | $ | 29,305 | |||||
Interest expense | 954 | 583 | 114 | ||||||||
Total interest | $ | 62,973 | $ | 52,719 | $ | 29,419 | |||||
Inventory | |||||||||||
Inventory consists primarily of finished goods, although the Company at times also maintains an inventory of raw materials from third-party manufacturers. The Company outsources manufacturing of subscriber equipment to third-party manufacturers and purchases accessories from third-party suppliers. The Company’s cost of inventory includes an allocation of overhead (including payroll and payroll-related costs of employees directly involved in bringing inventory to its existing condition, and freight). Inventories are valued using the average cost method and are carried at the lower of cost or market. Accordingly, the Company recorded a $0.9 million and $1.5 million expense included within cost of subscriber equipment for excess and obsolete inventory primarily related to Iridium 9505 handset accessories for the years ended December 31, 2014 and 2013, respectively. No similar charge was incurred during 2012. | |||||||||||
The Company has manufacturing agreements with two suppliers to manufacture subscriber equipment, one of which contains minimum monthly purchase requirements. The Company’s purchases have exceeded the monthly minimum requirements since inception. Pursuant to an agreement with the suppliers, the Company may be required to purchase excess materials if the materials are not used in production within the periods specified in the agreement. The suppliers will then repurchase such materials from the Company at the same price paid by the Company, as required for the production of the subscriber equipment. | |||||||||||
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 consolidated statements of operations and comprehensive income in a manner consistent with the classification of the recipient’s compensation. The expected vesting of the Company’s performance-based RSUs is based upon the likelihood that the Company achieves the defined performance goals. The level of achievement of performance goals, if any, is determined by the compensation committee. 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 consolidated statements of operations and comprehensive income. Classification of stock-based compensation for the years ended December 31, 2014 and 2013 is as follows: | |||||||||||
2014 | 2013 | ||||||||||
(In thousands) | |||||||||||
Property and equipment, net | $ | 1,176 | $ | 991 | |||||||
Inventory | 83 | 43 | |||||||||
Cost of subscriber equipment | 152 | 32 | |||||||||
Cost of services (exclusive of depreciation and amortization) | 824 | 550 | |||||||||
Research and development | 312 | 132 | |||||||||
Selling, general and administrative | 8,313 | 6,001 | |||||||||
Total stock-based compensation | $ | 10,860 | $ | 7,749 | |||||||
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 | 15-18 years | ||||||||||
Ground system | 5-7 years | ||||||||||
Equipment | 3-5 years | ||||||||||
Internally developed software and purchased software | 3-7 years | ||||||||||
Building | 39 years | ||||||||||
Building improvements | 5-39 years | ||||||||||
Leasehold improvements | shorter of useful life or remaining lease term | ||||||||||
The estimated useful lives of the Company’s current constellation of satellites reflect the remaining period of expected use for each satellite. Satellites are depreciated on a straight-line basis through the date they will be replaced by Iridium NEXT satellites. Based on the current launch schedule, the Company expects Iridium NEXT satellites to begin deployment in the second half of 2015, with the final launch expected to occur in 2017. | |||||||||||
The Company calculates depreciation expense using the straight-line method and evaluates the appropriateness of the useful life used in this calculation on a quarterly basis or as events occur that require additional assessment. During 2012, the Company updated its analysis of the current satellite constellation’s health and remaining useful life. Based on the results of this analysis, the Company estimated that its current constellation of satellites would be operational for longer than previously expected. As a result, the estimated useful life of the current constellation was extended and was consistent with the expected deployment of Iridium NEXT. In September 2014, the Company further updated its analysis of the current satellites’ remaining useful lives based on the refinement of the launch schedule and deployment plan for Iridium NEXT. As a result, the estimated useful lives of the satellites within the current constellation have been extended and are consistent with the expected deployment of Iridium NEXT. These changes in estimated useful life resulted in a decrease in depreciation expense compared to the prior year. The change in accounting estimate reduced depreciation expense in 2014 and 2012 by $3.8 million and $19.6 million, respectively. For the year ended December 31, 2014, the reduction in depreciation expense increased each of basic and diluted net income per share by $0.03 and $0.02, respectively. For the year ended December 31, 2012, the reduction in depreciation expense increased basic and diluted net income per share by $0.17 and $0.16, respectively. | |||||||||||
Repairs and maintenance costs are expensed as incurred. | |||||||||||
Long-Lived Assets | |||||||||||
The Company assesses its long-lived assets for impairment when indicators of impairment exist. Recoverability of assets is measured by comparing the carrying amounts of the assets to the future undiscounted cash flows expected to be generated by the assets. Any impairment loss would be measured as the excess of the assets’ carrying amount over their fair value. | |||||||||||
During the period covered by this report, the Company lost communication with four of its in-orbit satellites, one in 2012 and three in 2014. As a result, impairment charges of $2.0 million and $2.2 million were recorded within depreciation expense during 2012 and 2014, respectively. The Company had in-orbit spare satellites available to replace the lost satellites. No similar satellite loss occurred during 2013. The Company does not believe the loss of these satellites is an indicator of impairment of the remaining individual satellites or the constellation as of December 31, 2014. | |||||||||||
Goodwill and Other Intangible Assets | |||||||||||
Goodwill | |||||||||||
Goodwill is the excess of the acquisition cost of businesses over the fair value of the identifiable net assets acquired. Impairment testing for goodwill is performed during the fourth quarter of each annual period or more frequently if indicators of potential impairment exist. Goodwill impairment is determined using a two-step process. The first step involves a comparison of the estimated fair value of a reporting unit to its carrying amount, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired and the second step of the impairment test is not necessary. If the carrying amount of a reporting unit exceeds its estimated fair value, then the second step of the goodwill impairment test must be performed. To measure the amount of impairment loss, if any, the implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. Specifically, the estimated fair value of the reporting unit is allocated to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the price paid to acquire the reporting unit. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. | |||||||||||
The Company operates in a single reporting unit, and the possibility of impairment is assessed by comparing the carrying amount of the reporting unit to its estimated fair value. The Company determines the estimated fair value of the reporting unit based on a combination of the market approach using comparable public companies (guideline company method) and the income approach using discounted cash flows. These valuation techniques involve the use of estimates and assumptions. | |||||||||||
The most recent annual assessment of goodwill and indefinite-lived assets was performed on October 1, 2014 (the “2014 Analysis”). The key assumptions used in the 2014 Analysis included: (i) cash flow projections through 2025, which include assumptions relative to forecasted service revenue, equipment revenue, engineering and support service revenue, hosted payload revenue, operating expenses and Iridium NEXT capital expenditures; (ii) a discount rate of 12.0% applied to the cash flow projections, which was based on the weighted average cost of capital adjusted for the risks associated for the business; (iii) selection of comparable companies used in the market approach; (iv) assumptions in weighting the results of the income approach and the market approach valuation techniques; and (v) expected distributions from Aireon. Based on the results of the first step of the 2014 Analysis, the estimated fair value of the reporting unit exceeded the carrying value. As such, the second step of the goodwill impairment test was not required and no impairment charge was recorded during the period. In future periods, if actual results are not consistent with our estimates and assumptions, the Company may be exposed to impairment losses that could be material to our results of operations. | |||||||||||
Intangible Assets Not Subject to Amortization | |||||||||||
A portion of the Company’s intangible assets are spectrum, regulatory authorizations, and trade names, which are indefinite-lived intangible assets. The Company reevaluates the useful life determination for these assets each reporting period to determine whether events and circumstances continue to support an indefinite useful life. The Company tests its indefinite-lived intangible assets for potential impairment annually in the fourth quarter or more frequently if indicators of impairment exist. If the fair value of the indefinite-lived asset is less than the carrying amount, an impairment loss is recognized. Based on the results of the 2014 Analysis, the fair value of the indefinite-lived intangible assets was greater than the carrying value. As such, no impairment charge was recorded during the period. | |||||||||||
Intangible Assets Subject to Amortization | |||||||||||
The Company’s intangible assets that do have finite lives (customer relationships – government and commercial, core developed technology, intellectual property and software) are amortized over their useful lives and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If any indicators were present, the Company would test for recoverability by comparing the carrying amount of the asset to the net undiscounted cash flows expected to be generated from the asset. If those net undiscounted cash flows do not exceed the carrying amount (i.e., the asset is not recoverable), the Company would perform the next step, which is to determine the fair value of the asset and record an impairment loss, if any. The Company also reevaluates the useful lives for these intangible assets each reporting period to determine whether events and circumstances warrant a revision in their remaining useful lives. | |||||||||||
Asset Retirement Obligations | |||||||||||
Liabilities arising from legal obligations associated with the retirement of long-lived assets are required to be measured at fair value and recorded as a liability. Upon initial recognition of a liability for retirement obligations, a company must record an asset, which is depreciated over the life of the asset to be retired. | |||||||||||
Under certain circumstances, each of the U.S. government, The Boeing Company (“Boeing”), and Motorola Solutions, Inc. (“Motorola Solutions”) has the right to require the de-orbit of the Company’s satellite constellation. One such right the U.S. government holds is to require the Company to de-orbit the satellite constellation if more than four satellites have insufficient fuel to execute a 12-month de-orbit, as is currently the case. In the event the Company was required to effect a mass de-orbit, pursuant to the amended and restated operations and maintenance agreement (the “O&M Agreement”) by and between the Company and Boeing, the Company would be required to pay Boeing $18.0 million, plus an amount equivalent to the premium for mass de-orbit insurance coverage ($2.5 million as of December 31, 2014). The Company has concluded that each of the foregoing de-orbit rights meets the definition of an asset retirement obligation. However, the Company currently does not believe the U.S. government, Boeing or Motorola Solutions will exercise their respective de-orbit rights. As a result, the Company believes the likelihood of any future cash outflows associated with the mass de-orbit obligation is remote and has recorded an asset retirement obligation with respect to the potential mass de-orbit of approximately $0.2 million at December 31, 2014, which is included in other long-term liabilities on the accompanying consolidated balance sheet. | |||||||||||
There are other circumstances in which the Company could be required, either by the U.S. government or for technical reasons, to de-orbit an individual satellite; however, the Company believes that such costs would not be significant relative to the costs associated with the ordinary operations of the satellite constellation. | |||||||||||
Revenue Recognition | |||||||||||
The Company derives its revenue primarily as a wholesaler of satellite communications products and services. The primary types of revenue include (i) service revenue (access and usage-based airtime fees), (ii) subscriber equipment revenue, and (iii) revenue generated by providing engineering and support services to commercial and government customers. | |||||||||||
Wholesaler of satellite communications products and services | |||||||||||
Pursuant to wholesale agreements, the Company sells its products and services to service providers who, in turn, sell the products and services to other distributors or directly to the end users. The Company recognizes revenue when services are performed or delivery has occurred, evidence of an arrangement exists, the fee is fixed or determinable, and collection is probable, as follows: | |||||||||||
Contracts with multiple elements | |||||||||||
At times, the Company sells services and equipment through multi-element arrangements that bundle equipment, airtime and other services. For multi-element revenue arrangements when the Company sells services and equipment in bundled arrangements and determines that it has separate units of accounting, the Company allocates the bundled contract price among the various contract deliverables based on each deliverable’s relative selling price. The selling price used for each deliverable is based on vendor-specific objective evidence when available, third-party evidence when vendor-specific objective evidence is not available, or the estimated selling price when neither vendor-specific evidence nor third party evidence is available. The Company determines vendor-specific objective evidence of selling price by assessing sales prices of subscriber equipment, airtime and other services when they are sold to customers on a stand-alone basis. The Company’s determination of best estimate of selling price is consistent with its determination of vendor-specific objective evidence of selling price and the Company assesses qualitative and quantitative market factors and entity-specific factors when estimating the selling price. When the Company determines the elements are not separate units of accounting, the Company recognizes revenue on a combined basis as the last element is delivered. | |||||||||||
Service revenue sold on a stand-alone basis | |||||||||||
Service revenue is generated from the Company’s service providers through usage of its satellite system and through fixed monthly access fees per user charged to service providers. Revenue for usage is recognized when usage occurs. Revenue for fixed-per-user access fees is recognized ratably over the period in which the services are provided to the end user. The Company sells prepaid services in the form of e-vouchers and prepaid cards. A liability is established equal to the cash paid upon purchase for the e-voucher or prepaid card. The Company recognizes revenue from the prepaid services upon the use of the e-voucher or prepaid card by the customer or upon the expiration of the right to access the prepaid service. In September 2012, the Company communicated a new expiration policy with respect to prepaid e-vouchers, effective December 2013. While the terms of prepaid e-vouchers can be extended by the purchase of additional e-vouchers, prepaid e-vouchers may not be extended beyond the new limits of three or four years, dependent on the initial expiry period when purchased. The Company does not offer refunds for unused prepaid services. | |||||||||||
Subscriber equipment sold on a stand-alone basis | |||||||||||
The Company recognizes subscriber equipment sales and the related costs when title to the equipment (and the risks and rewards of ownership) passes to the customer, typically upon shipment. | |||||||||||
Services sold to the U.S. government | |||||||||||
The Company provides airtime and airtime support to U.S. government and other authorized customers pursuant to the Enhanced Mobile Satellite Services (“EMSS”) contract managed by the Defense Information Systems Agency (“DISA”). The EMSS contract, entered into in April 2008, provided for a one-year base term and four additional one-year options which were exercised at the election of the U.S. government. Under the terms of this contract, the Company provided airtime to U.S. government subscribers through (i) fixed monthly fees on a per-user basis for unlimited voice services, (ii) fixed monthly fees per user for unlimited paging services, (iii) a tiered pricing plan (based on usage) per device for data services, (iv) fixed monthly fees on a per-user basis for unlimited beyond-line-of-sight push-to-talk voice services to user-defined groups (“Netted Iridium”), and (v) a monthly fee for active user-defined groups using Netted Iridium. Revenue related to these services was recognized ratably over the periods in which the services were provided, and the related costs were expensed as incurred. After the exercise of all available optional contract extensions, the EMSS contract as signed in April 2008 expired in October 2013. | |||||||||||
Effective October 22, 2013, the Company executed a new five-year EMSS contract. Under the terms of this new agreement, authorized customers continue to utilize airtime services, provided through the U.S. Department of Defense’s (“DoD”) dedicated gateway. These services include unlimited global secure and unsecure voice, low and high-speed data, paging, broadcast and Netted Iridium services for an unlimited number of DoD and other federal subscribers. The fixed-price rates in each of the five contract years, which run from October 22 through the following October 21 of each year, are $64 million and $72 million in years one and two, respectively, and $88 million in each of the years three through five. Under this contract, revenue is based on the annual fee for the fixed-price contract with unlimited subscribers, and is recognized on a straight-line basis over each contractual year. | |||||||||||
The U.S. government purchases its subscriber equipment from third-party distributors and not directly from the Company. | |||||||||||
Government engineering and support services | |||||||||||
The Company provides maintenance services to the U.S. government’s dedicated gateway. This revenue is recognized ratably over the periods in which the services are provided; the related costs are expensed as incurred. | |||||||||||
Other government and commercial engineering and support services | |||||||||||
The Company also provides engineering services to assist customers in developing new technologies for use on the Company’s satellite system. The revenue associated with these services is recorded when the services are rendered, typically on a partial performance method of accounting based on the Company’s estimate of total costs expected to complete the contract, and the related costs are expensed as incurred. Revenue on cost-plus-fixed-fee contracts is recognized to the extent of estimated costs incurred plus the applicable fees earned. The Company considers fixed fees under cost-plus-fixed-fee contracts to be earned in proportion to the allowable costs incurred in performance of the contract. The portion of revenue on research and development arrangements that is contingent upon the achievement of substantive milestone events is recognized in the period in which the milestone is achieved. | |||||||||||
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 consolidated statements of operations and comprehensive income. The Company experienced a $5.3 million decrease in its warranty provision for the year ended December 31, 2014 compared to the prior year. This decrease is primarily the result of fewer expected returns for the Iridium Pilot® sold in 2014 and decreased average repair costs, partially offset by $1.8 million in warranty-related initiatives for the Iridium OpenPort models sold in prior years. | |||||||||||
Changes in the warranty reserve for the years ended December 31, 2014 and 2013 were as follows: | |||||||||||
2014 | 2013 | ||||||||||
(In thousands) | |||||||||||
Balance at beginning of the period | $ | 8,853 | $ | 4,050 | |||||||
Provision | 6,390 | 11,690 | |||||||||
Utilization | -7,862 | -6,887 | |||||||||
Balance at end of the period | $ | 7,381 | $ | 8,853 | |||||||
Research and Development | |||||||||||
Research and development costs are charged to expense in the period in which they are incurred. | |||||||||||
Advertising Costs | |||||||||||
Costs associated with advertising and promotions are expensed as incurred. Advertising expenses were $0.5 million for the years ended 2014, 2013 and 2012. | |||||||||||
Income Taxes | |||||||||||
The Company accounts for income taxes using the asset and liability approach, which requires the recognition of tax benefits or expenses for temporary differences between the financial reporting and tax bases of assets and liabilities. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company also recognizes a tax benefit from uncertain tax positions only if it is “more likely than not” that the position is sustainable based on its technical merits. The Company’s policy is to recognize interest and penalties on uncertain tax positions as a component of income tax expense. | |||||||||||
Net Income Per Share | |||||||||||
The Company calculates basic net income per share by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share takes into account the effect of potential dilutive common shares when the effect is dilutive. The effect of potential dilutive common shares, including common stock issuable upon exercise of outstanding stock options and stock purchase warrants, is computed using the treasury stock method. The effect of potential dilutive common shares from the conversion of the outstanding convertible preferred securities is computed using the as-if converted method at the stated conversion rate. The Company’s unvested RSUs contain non-forfeitable rights to dividends and therefore are considered to be participating securities in periods of net income. The calculation of basic and diluted net income per share excludes net income attributable to the unvested RSUs from the numerator and excludes the impact of unvested RSUs from the denominator. | |||||||||||
Cash_and_Cash_Equivalents_and_
Cash and Cash Equivalents and Marketable Securities | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Cash and Cash Equivalents [Abstract] | ||||||||||||||||
Cash, Cash Equivalents, and Marketable Securities [Text Block] | 3. Cash and Cash Equivalents and Marketable Securities | |||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||
The following table summarizes the Company’s cash and cash equivalents as of December 31, 2014 and 2013: | ||||||||||||||||
Recurring Fair | ||||||||||||||||
2014 | 2013 | Value Measurement | ||||||||||||||
(in thousands) | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 86,792 | $ | 86,074 | ||||||||||||
Money market funds | 105,497 | 88,769 | Level 1 | |||||||||||||
Commercial paper | 18,960 | 11,499 | Level 2 | |||||||||||||
Total Cash and cash equivalents | $ | 211,249 | $ | 186,342 | ||||||||||||
Marketable Securities | ||||||||||||||||
The following table summarizes the Company’s marketable securities as of December 31, 2014 and 2013: | ||||||||||||||||
As of December 31, 2014 | ||||||||||||||||
Amortized | Gross | Gross | Estimated | Recurring Fair | ||||||||||||
Cost | Unrealized Gains | Unrealized Losses | Fair Value | Value Measurement | ||||||||||||
(in thousands) | ||||||||||||||||
Fixed-income debt securities | $ | 168,960 | $ | 397 | $ | -314 | $ | 169,043 | Level 2 | |||||||
Commercial paper | 78,915 | - | - | 78,915 | Level 2 | |||||||||||
U.S. Treasury Notes | 13,127 | 53 | -2 | 13,178 | Level 2 | |||||||||||
Total Marketable Securities | $ | 261,002 | $ | 450 | $ | -316 | $ | 261,136 | ||||||||
As of December 31, 2013 | ||||||||||||||||
Amortized | Gross | Gross | Estimated | Recurring Fair | ||||||||||||
Cost | Unrealized Gains | Unrealized Losses | Fair Value | Value Measurement | ||||||||||||
(in thousands) | ||||||||||||||||
Fixed-income debt securities | $ | 57,048 | $ | 45 | $ | -61 | $ | 57,032 | Level 2 | |||||||
Commercial paper | 19,615 | - | - | 19,615 | Level 2 | |||||||||||
Total Marketable Securities | $ | 76,663 | $ | 45 | $ | -61 | $ | 76,647 | ||||||||
The following table presents the contractual maturities of the fixed income debt securities, commercial paper and U.S. treasury notes held as of December 31, 2014 and 2013: | ||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | |||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||
Cost | Value | Cost | Value | |||||||||||||
(in thousands) | ||||||||||||||||
Mature within one year | $ | 177,011 | $ | 177,145 | $ | 25,527 | $ | 25,527 | ||||||||
Mature after one year and within three years | 83,991 | 83,991 | 51,136 | 51,120 | ||||||||||||
Total | $ | 261,002 | $ | 261,136 | $ | 76,663 | $ | 76,647 | ||||||||
The increase in marketable securities from December 31, 2013 to December 31, 2014 is due to the investment of proceeds from the sale of the Company’s common stock and 6.75% Series B Cumulative Perpetual Convertible Preferred Stock (the “Series B Preferred Stock”). For further discussion of the Company’s equity transactions, see the Equity Transactions and Instruments footnote below. | ||||||||||||||||
Equity_Transactions_and_Instru
Equity Transactions and Instruments | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | 4. Equity Transactions and 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. 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 Company’s 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”). Each $11.50 Warrant entitled the holder to purchase from the Company one share of common stock at a price of $11.50 per share. As of December 31, 2014, 277,021 of the $11.50 Warrants were outstanding. On February 14, 2015, the remaining 277,021 outstanding and unexercised $11.50 Warrants expired in accordance with their terms. | |
Preferred Stock | |
The Company is authorized to issue 2.0 million shares of preferred stock with a par value of $0.0001 per share. As described below, the Company issued 1.0 million shares of preferred stock in the fourth quarter of 2012 and 0.5 million shares of preferred stock in the second quarter of 2014. The remaining 0.5 million authorized shares of preferred stock remain undesignated and unissued as of December 31, 2014. | |
Series A Cumulative Perpetual Convertible Preferred Stock | |
In the fourth quarter of 2012, the Company issued 1.0 million shares of its 7.00% Series A Cumulative Perpetual Convertible 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 offering costs. The net proceeds of this offering are being used to partially fund the construction and deployment of Iridium NEXT and for other general corporate purposes. | |
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 and on parity with the Company’s Series B Preferred 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 at an initial 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 2014 and 2013, the Company paid $7.0 million in cash dividends to the holders of Series A Preferred Stock. As of December 31, 2014, the Company has accrued $0.3 million in cash dividends for the holders of the Series A Preferred Stock, which is included within accrued expenses and other current liabilities on the accompanying 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. | |
Series B Cumulative Perpetual Convertible Preferred Stock | |
In May 2014, the Company issued 500,000 shares of its Series B Preferred Stock in an underwritten public offering at a price to the public of $250 per share. The purchase price received by the Company, equal to $242.50 per share, reflected an underwriting discount of $7.50 per share. The Company received proceeds of $120.8 million from the sale of the Series B Preferred Stock, net of the $3.8 million underwriting discount and $0.4 million of offering costs. | |
Holders of Series B Preferred Stock are entitled to receive cumulative cash dividends at a rate of 6.75% per annum of the $250 liquidation preference per share (equivalent to an annual rate of $16.875 per share). Dividends are payable quarterly in arrears on each March 15, June 15, September 15 and December 15, beginning September 15, 2014. The Series B Preferred Stock does not have a stated maturity date and is not subject to any sinking fund or mandatory redemption provisions. The Series B Preferred Stock ranks senior to the Company’s common stock and pari passu with respect to the Company’s Series A Preferred Stock with respect to dividend rights and rights upon the Company’s voluntary or involuntary liquidation, dissolution or winding-up. Holders of Series B 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 B Preferred Stock may convert some or all of their outstanding Series B Preferred Stock at an initial conversion rate of 33.456 shares of common stock per $250 liquidation preference, which is equivalent to an initial conversion price of approximately $7.47 per share of common stock (subject to adjustment in certain events). | |
During 2014, the Company paid cash dividends of $5.0 million to the holders of Series B Preferred Stock. As of December 31, 2014, the Company has accrued $0.4 million in cash dividends for the holders of the Series B Preferred Stock, which is included within accrued expenses and other current liabilities on the accompanying consolidated balance sheet. | |
On or after May 15, 2019, the Company may, at its option, convert some or all of the Series B 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 May 15, 2019, in the event of certain specified fundamental changes, holders of the Series B Preferred Stock will have the right to convert some or all of their shares of Series B Preferred Stock into the greater of (i) a number of shares of the Company’s common stock as subject to adjustment plus the make-whole premium, if any, and (ii) a number of shares of the Company’s common stock equal to the lesser of (a) the liquidation preference divided by the market value of the Company’s common stock on the effective date of such fundamental change and (b) 81.9672 (subject to adjustment). In certain circumstances, the Company may elect to cash settle any conversions in connection with a fundamental change. | |
Common Stock | |
Registered Direct Public Offering | |
In May 2014, the Company issued 7,692,308 shares of its common stock in a registered direct public offering to certain investment funds affiliated with Baron Capital Group Inc. (“Baron”) at a price of $6.50 per share for aggregate gross proceeds of $50.0 million. The Company received proceeds of $49.9 million from the sale of the common stock to Baron, net of offering costs of $0.1 million. | |
Under the stock purchase agreement entered into with Baron, Baron was entitled to receive additional shares if, during the 90-day period following the date of the stock purchase agreement, the Company issued or sold securities below specified prices. As a result of the Company’s public offering of common stock, described below, and its public offering of Series B Preferred Stock, described above, the Company delivered 504,413 additional shares of common stock to Baron on August 6, 2014. | |
Underwritten Public Offering | |
Concurrently with its public offering of Series B Preferred Stock in May 2014, the Company issued 8,483,608 shares of its common stock in an underwritten public offering, including 1,106,558 shares upon the underwriters’ exercise of their overallotment option in full, at a price to the public of $6.10 per share. The Company received proceeds of $49.0 million, net of $2.6 million of underwriting discount and $0.2 million of offering costs. | |
The net proceeds of these common stock offerings and the Series B Preferred Stock offering are being used to partially fund the construction and deployment of Iridium NEXT and for other general corporate purposes. | |
Debt
Debt | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Debt Disclosure [Abstract] | |||||||||||
Debt Disclosure [Text Block] | 5. Debt | ||||||||||
Credit Facility | |||||||||||
In October 2010, the Company entered into the $1.8 billion Credit Facility with a syndicate of bank lenders (the “Lenders”). The Credit Facility was subsequently amended and restated in August 2012. In May 2014, the Company entered into a supplemental agreement (the “Supplemental Agreement”) with the Lenders under the Credit Facility to further amend and restate the Credit Facility. Ninety-five percent of the Company’s obligations under the Credit Facility are insured by Compagnie Française d’Assurance pour le Commerce Extérieur (“COFACE”), the French export credit agency. The Credit Facility is comprised of two tranches, with draws and repayments applied pro rata in respect of each tranche: | |||||||||||
• | Tranche A – $1,537,500,000 at a fixed rate of 4.96%; and | ||||||||||
• | Tranche B – $262,500,000 at a floating rate equal to the London Interbank Offer Rate (“LIBOR”) plus 1.95%. | ||||||||||
Interest is payable on a semi-annual basis in April and October of each year. Prior to the repayment period described below, a portion of interest will be paid via a deemed loan and added to the related tranche principal, and the remainder is payable in cash. The amount of interest paid via a deemed loan for each tranche is as follows: | |||||||||||
• | Tranche A – fixed rate of 3.56%; and | ||||||||||
• | Tranche B – LIBOR plus 0.55%. | ||||||||||
For the years ended December 31, 2014, 2013 and 2012, the Company incurred total interest of $50.8 million, $39.6 million and $25.5 million, respectively, of which $35.3 million, $27.5 million and $17.8 million, respectively, is payable via a deemed loan and the remainder is payable in cash on the scheduled semi-annual payment dates. | |||||||||||
In connection with each draw it makes under the Credit Facility, the Company also borrows an amount equal to 6.49% of such draw to cover the premium for the COFACE insurance policy. The Company also pays a commitment fee of 0.80% per year, in semi-annual installments, on any undrawn portion of the Credit Facility. | |||||||||||
Funds drawn under the Credit Facility will be used to pay for (i) 85% of the costs under a fixed price full scale development contract (the “FSD”) with Thales Alenia Space France (“Thales”) for the design and manufacture of satellites for Iridium NEXT until the Credit Facility is fully drawn (ii) the premium for the COFACE policy, and (iii) the payment of a portion of interest during a part of the construction and launch phase of Iridium NEXT. | |||||||||||
Scheduled semi-annual principal repayments will begin six months after the earlier of (i) the successful deployment of a specified number of Iridium NEXT satellites or (ii) September 30, 2017. During this repayment period, interest will be paid on the same date as the principal repayments. All interest costs incurred related to the Credit Facility have been capitalized during the construction period of the assets. The Company pays interest on each semi-annual due date through a combination of a cash payment and a deemed additional loan. The following table presents interest activity for the Credit Facility for the years ended December 31, 2014 and 2013 payable via cash or deemed loan: | |||||||||||
2014 | |||||||||||
Cash | Deemed Loan | Total | |||||||||
(in thousands) | |||||||||||
Beginning interest payable | $ | 2,446 | $ | 5,543 | $ | 7,989 | |||||
Interest incurred | 15,499 | 35,257 | 50,756 | ||||||||
Interest payments | -15,009 | -34,147 | -49,156 | ||||||||
Ending interest payable | $ | 2,936 | $ | 6,653 | $ | 9,589 | |||||
2013 | |||||||||||
Cash | Deemed Loan | Total | |||||||||
(in thousands) | |||||||||||
Beginning interest payable | $ | 1,630 | $ | 3,735 | $ | 5,365 | |||||
Interest incurred | 12,071 | 27,523 | 39,594 | ||||||||
Interest payments | -11,255 | -25,715 | -36,970 | ||||||||
Ending interest payable | $ | 2,446 | $ | 5,543 | $ | 7,989 | |||||
As of December 31, 2014, the Company had borrowed a total of $1,291.4 million under the Credit Facility. The unused portion of the Credit Facility as of December 31, 2014 was $508.6 million. Under the terms of the Credit Facility, the Company is required to maintain a minimum cash reserve for debt service of $86.0 million as of December 31, 2014, which is classified as restricted cash on the accompanying consolidated balance sheet. The Company recognized the semi-annual commitment fee on the undrawn portion of the Credit Facility of $5.8 million, $7.7 million and $10.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||
The Credit Facility will mature seven years after the start of the repayment period. In addition, the Company is required to maintain minimum debt service reserve levels, which are estimated as follows: | |||||||||||
At December 31, | Amount | ||||||||||
(in millions) | |||||||||||
2015 | $ | 91 | |||||||||
2016 | 113 | ||||||||||
2017 | 189 | ||||||||||
These levels may be higher once the Company begins repayment under the Credit Facility. Obligations under the Credit Facility are secured on a senior basis by a lien on substantially all of the Company’s assets. In addition to the minimum debt service reserve levels, financial covenants under the Credit Facility include: | |||||||||||
· | an available cash balance of at least $25 million; | ||||||||||
· | a debt-to-equity ratio, which is calculated as the ratio of total net debt to the aggregate of total net debt and total stockholders’ equity, of no more than 0.7 to 1, measured each June 30 and December 31; | ||||||||||
· | specified maximum levels of annual capital expenditures (excluding expenditures on the construction of Iridium NEXT satellites) through the year ending December 31, 2024; | ||||||||||
· | specified minimum levels of consolidated operational earnings before interest, taxes, depreciation and amortization, or operational EBITDA, for the 12-month periods ending each December 31 and June 30 through December 31, 2017; | ||||||||||
· | specified minimum cumulative cash flow requirements from customers who have hosted payloads on our satellites, measured each December 31 and June 30, from June 30, 2016 through December 31, 2017; | ||||||||||
· | a debt service coverage ratio, measured during the repayment period, of not less than 1 to 1.5; and | ||||||||||
· | specified maximum leverage levels during the repayment period that decline from a ratio of 4.73 to 1 for the twelve months ending June 30, 2018 to a ratio of 2.36 to 1 for the twelve months ending December 31, 2024. | ||||||||||
The Company’s available cash balance, as defined by the Credit Facility, was $290.2 million as of December 31, 2014. The Company’s debt-to-equity ratio was 0.47 to 1 as of December 31, 2014. The Company was in compliance with the operational EBITDA covenant and the annual capital expenditure covenant as of December 31, 2014. | |||||||||||
The covenants regarding capital expenditures, operational EBITDA and hosted payload cash flows are calculated in connection with a measurement, which the Company refers to as available cure amount, that is derived using a complex calculation based on overall cash flows, as adjusted by numerous measures specified in the Credit Facility. In a period in which the Company’s capital expenditures exceed, or the Company’s operational EBITDA or hosted payload cash flows falls short of, the amount specified in the respective covenant, the Company would be permitted to allocate available cure amount, if any, to prevent a breach of the applicable covenant. As of December 31, 2014, the Company had an available cure amount of $7.5 million, though it was not required to maintain compliance with the covenants. The available cure amount has fluctuated significantly from one measurement period to the next, and the Company expects that it will continue to do so. | |||||||||||
The covenants also place limitations on the Company’s ability and that of its subsidiaries to carry out mergers and acquisitions, dispose of assets, grant security interests, declare, make or pay dividends, enter into transactions with affiliates, fund payments under the FSD with Thales from its own resources, incur additional indebtedness, or make loans, guarantees or indemnities. If the Company is not in compliance with the financial covenants under the Credit Facility, after any opportunity to cure such non-compliance, or the Company otherwise experiences an event of default under the Credit Facility, the lenders may require repayment in full of all principal and interest outstanding under the Credit Facility. It is unlikely the Company would have adequate funds to repay such amounts prior to the scheduled maturity of the Credit Facility. If the Company fails to repay such amounts, the lenders may foreclose on the assets the Company has pledged under the Credit Facility, which include substantially all of its assets and those of its domestic subsidiaries. | |||||||||||
The Supplemental Agreement includes revised financial covenant levels. The Supplemental Agreement also delays, until 2017, a portion of the contributions that the Company had been scheduled to make during 2014, 2015 and 2016 to the debt service reserve account that the Company is required to maintain under the Credit Facility. The Supplemental Agreement delays $22 million of the Company’s 2014 contributions, $22 million of the Company’s 2015 contributions and $32 million of the Company’s 2016 contributions, for a total of $76 million. As of March 31, 2014, prior to the execution of the Supplemental Agreement, the minimum required cash reserve balance was $94.5 million. As of June 30, 2014 after the execution of the Supplemental Agreement, the minimum required cash reserve balance was reduced to $83.5 million. As a result of this reduction, $11.0 million was released from restricted cash to the Company during the three months ended June 30, 2014. In accordance with the Supplemental Agreement, as of December 31, 2014, the minimum cash reserve for debt service was $86.0 million and was maintained and classified as restricted cash on the accompanying consolidated balance sheet. | |||||||||||
The Company believes that liquidity sources will provide sufficient funds for the Company to meet its liquidity requirements for at least the next twelve months. | |||||||||||
Boeing_Operations_and_Maintena
Boeing Operations and Maintenance Agreements | 12 Months Ended |
Dec. 31, 2014 | |
Boeing Operations And Maintenance Agreements [Abstract] | |
Operations And Maintenance Agreement [Text Block] | 6. Boeing Operations and Maintenance Agreements |
On July 21, 2010, the Company and Boeing entered into the O&M Agreement, pursuant to which Boeing agreed to provide transition services and continuing steady-state operations and maintenance services with respect to the satellite network operations center, telemetry, tracking and control stations and the on-orbit satellites (including engineering, systems analysis, and operations and maintenance services). Pursuant to the O&M Agreement, each of Boeing, Motorola Solutions and the U.S. government has the unilateral right to commence the de-orbit of the constellation upon the occurrence of certain enumerated events. | |
The O&M Agreement incorporates a de-orbit plan, which, if exercised, would cost approximately $18.0 million plus an amount equivalent to the premium of the mass de-orbit insurance coverage to be paid to Boeing in the event of a mass de-orbit of the satellite constellation. On July 21, 2010, the Company and Boeing entered into an agreement pursuant to which Boeing will operate and maintain Iridium NEXT (the “Iridium NEXT Support Services Agreement”). Boeing will provide these services on a time-and-materials fee basis. The term of the NEXT Support Services Agreement runs concurrently with the estimated useful life of the Iridium NEXT constellation. The Company is entitled to terminate the agreement for convenience and without cause commencing in 2019. | |
As of January 1, 2015, Boeing supports a hybrid operations mode involving network elements from both the original Iridium system and the Iridium NEXT system. Obligations to Boeing represent the not to exceed (the “NTE) price for O&M services for 2015 under the Company’s Iridium NEXT Support Services Agreement with Boeing. Boeing is the exclusive provider for the majority of O&M services through the end of the Iridium NEXT useful life, subject to the Company’s right to issue work to a third party in accordance with certain provisions in the agreement. Annually, the Company and Boeing will agree upon the NTE price for each year. | |
The Company incurred expenses of $30.7 million, $30.1 million and $31.9 million relating to satellite operations and maintenance costs for the years ended December 31, 2014, 2013 and 2012, respectively, included in cost of services (exclusive of depreciation and amortization) in the consolidated statements of operations and comprehensive income. | |
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | 7. Property and Equipment | |||||||
Property and equipment consisted of the following at December 31: | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Satellite system | $ | 323,607 | $ | 337,677 | ||||
Ground system | 41,365 | 41,247 | ||||||
Equipment | 26,961 | 25,019 | ||||||
Internally developed software and purchased software | 95,406 | 68,141 | ||||||
Building and leasehold improvements | 29,980 | 28,063 | ||||||
517,319 | 500,147 | |||||||
Less: accumulated depreciation | -339,155 | -296,716 | ||||||
178,164 | 203,431 | |||||||
Land | 8,037 | 8,037 | ||||||
Construction in process: | ||||||||
Iridium NEXT systems under construction | 1,755,974 | 1,341,148 | ||||||
Other construction in process | 29,664 | 22,963 | ||||||
Total property and equipment, net of accumulated depreciation | $ | 1,971,839 | $ | 1,575,579 | ||||
Other construction in process consisted of the following at December 31: | ||||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Internally developed software | $ | 20,779 | $ | 17,582 | ||||
Equipment | 859 | 3,684 | ||||||
Ground system | 7,862 | 1,177 | ||||||
Building and leasehold improvements | 164 | 520 | ||||||
Total other construction in process | $ | 29,664 | $ | 22,963 | ||||
Depreciation expense for the years ended December 31, 2014, 2013 and 2012 was $62.7 million, $62.0 million and $68.1 million, respectively. | ||||||||
Intangible_Assets
Intangible Assets | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | 8. Intangible Assets | |||||||||||||
The Company has identifiable intangible assets as follows: | ||||||||||||||
December 31, 2014 | ||||||||||||||
Useful | Gross | Accumulated | Net | |||||||||||
Lives | Carrying Value | Amortization | Carrying Value | |||||||||||
(In thousands) | ||||||||||||||
Indefinite life intangible assets: | ||||||||||||||
Trade names | Indefinite | $ | 21,195 | $ | - | $ | 21,195 | |||||||
Spectrum and licenses | Indefinite | 14,030 | - | 14,030 | ||||||||||
Total | 35,225 | - | 35,225 | |||||||||||
Definite life intangible assets: | ||||||||||||||
Customer relationships - government | 5 years | 20,355 | -20,355 | - | ||||||||||
Customer relationships - commercial | 5 years | 33,052 | -33,052 | - | ||||||||||
Core developed technology | 5 years | 4,842 | -4,842 | - | ||||||||||
Intellectual property | 16.5 years (1) | 16,439 | -4,248 | 12,191 | ||||||||||
Software | 5 years | 2,025 | -2,025 | - | ||||||||||
Total | 76,713 | -64,522 | 12,191 | |||||||||||
Total intangible assets | $ | 111,938 | $ | -64,522 | $ | 47,416 | ||||||||
December 31, 2013 | ||||||||||||||
Useful | Gross | Accumulated | Net | |||||||||||
Lives | Carrying Value | Amortization | Carrying Value | |||||||||||
(In thousands) | ||||||||||||||
Indefinite life intangible assets: | ||||||||||||||
Trade names | Indefinite | $ | 21,195 | $ | - | $ | 21,195 | |||||||
Spectrum and licenses | Indefinite | 14,030 | - | 14,030 | ||||||||||
Total | 35,225 | - | 35,225 | |||||||||||
Definite life intangible assets: | ||||||||||||||
Customer relationships - government | 5 years | 20,355 | -17,301 | 3,054 | ||||||||||
Customer relationships - commercial | 5 years | 33,052 | -28,094 | 4,958 | ||||||||||
Core developed technology | 5 years | 4,842 | -4,116 | 726 | ||||||||||
Intellectual property | 16.5 years (1) | 16,439 | -3,253 | 13,186 | ||||||||||
Software | 5 years | 2,025 | -1,722 | 303 | ||||||||||
Total | 76,713 | -54,486 | 22,227 | |||||||||||
Total intangible assets | $ | 111,938 | $ | -54,486 | $ | 57,452 | ||||||||
-1 | Intellectual property is amortized over the estimated useful life of the existing satellite systems and Iridium NEXT, which averages to 16.5 years. | |||||||||||||
The weighted average amortization period of intangible assets is 7.5 years. Amortization expense was $10.0 million for the year ended December 31, 2014 and $13.0 million for each of the years ended December 31, 2013 and 2012. | ||||||||||||||
Future amortization expense with respect to intangible assets existing at December 31, 2014, by year and in the aggregate, is as follows: | ||||||||||||||
Year ending December 31, | Amount | |||||||||||||
(In thousands) | ||||||||||||||
2015 | $ | 995 | ||||||||||||
2016 | 995 | |||||||||||||
2017 | 995 | |||||||||||||
2018 | 995 | |||||||||||||
2019 | 995 | |||||||||||||
Thereafter | 7,216 | |||||||||||||
Total estimated future amortization expense | $ | 12,191 | ||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies Disclosure [Text Block] | 9. Commitments and Contingencies | ||||
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 $2.3 billion, and the Company expects payment obligations under the FSD to extend into the first quarter of 2018. As of December 31, 2014, the Company had made aggregate payments of $1,331.1 million to Thales, of which $1,129.8 million were from borrowings under the Credit Facility, and which were capitalized as construction in progress within property and equipment, net in the accompanying consolidated balance sheet. The Company’s obligations to Thales that are currently scheduled for the years ending December 31, 2015, 2016, 2017 and 2018, are in the amounts of $554.2 million, $136.0 million, $166.7 million and $64.7 million, respectively. The Company currently uses the Credit Facility to pay 85% of each invoice received from Thales under the FSD, with the remaining 15% funded from cash on hand. Once the Credit Facility is fully drawn, the Company expects to pay 100% of each invoice received from Thales from cash and marketable securities on hand as well as internally generated cash flow, including potential cash flows from hosted payloads and Iridium PRIME. | |||||
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 (as amended to date, the “SpaceX Agreement”). The total price under the SpaceX Agreement for seven launches is $453.1 million. As of December 31, 2014, the Company had made aggregate payments of $152.6 million to SpaceX, which were capitalized as construction in progress within property and equipment, net in the accompanying consolidated balance sheet. In addition, the Company made a $3.0 million refundable deposit to SpaceX in the first quarter of 2014 for the reservation of additional future launches, which is not included in the total contract price. The Company's obligations to SpaceX under the SpaceX Amendment that are currently scheduled for the years ending December 31, 2015, 2016 and 2017 are in the amounts of $150.0 million, $126.0 million and $24.5 million, respectively. | |||||
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 originally provided 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. As of December 31, 2014, the Company had made aggregate payments of $28.8 million to Kosmotras, which were capitalized within property and equipment, net in the accompanying consolidated balance sheet. The option to purchase two dedicated launches expired as of December 31, 2013. The Company has agreed with Kosmotras to extend the option to purchase the remaining three dedicated launches through a date to be determined. The Company’s obligation to Kosmotras for the single launch purchased under the Kosmotras Agreement for the year ending December 31, 2015 is $23.0 million. | |||||
Supplier Purchase Commitments | |||||
The Company has a manufacturing agreement with two suppliers to manufacture subscriber equipment, one of which contains minimum monthly purchase requirements. The Company’s purchases have exceeded the monthly minimum requirement since inception. Pursuant to the agreement, the Company may be required to purchase certain materials if the materials are not used in production within the periods specified in the agreement. The supplier will then repurchase such materials from the Company at the same price paid by the Company, as required for the production of the devices. As of December 31, 2014 and 2013, the Company had $1.7 million and $2.4 million, respectively, of such materials and the amounts were included in inventory on the accompanying consolidated balance sheets. | |||||
As of December 31, 2014, unconditional purchase obligations were $52.4 million, which include the Company’s commitments with Boeing. The Boeing obligations represent the not to exceed (NTE) price for operations and maintenance (O&M) services for 2015 under the Company’s Iridium NEXT Support Services Agreement with Boeing. Boeing is the exclusive provider for the majority of O&M services through the end of the Iridium NEXT useful life subject to the Company’s right to issue work to a third party in accordance with certain provisions in the agreement. Annually, Boeing and the Company will agree upon the NTE price for that year. | |||||
Unconditional purchase obligations scheduled for the years ending December 31, 2015 and 2016 are in the amounts of $52.3 million and $0.1 million, respectively. | |||||
In-Orbit Insurance | |||||
Due to various contractual requirements, the Company is required to maintain a third-party in-orbit insurance policy with a de-orbiting endorsement to cover potential claims relating to operating or de-orbiting the satellite constellation. The policy covers the Company, Boeing as operator, Motorola Solutions (the original system architect and prior owner), contractors and subcontractors of the insured, the U.S. government and certain other sovereign nations. | |||||
The current policy has a renewable one-year term, which is scheduled to expire on December 8, 2015. The policy coverage is separated into Sections A, B, and C. | |||||
Section A coverage is currently in effect and covers product liability over Motorola’s position as manufacturer of the satellites. Liability limits for claims under Section A are $1.0 billion per occurrence and in the aggregate. There is no deductible for claims. | |||||
Section B coverage is currently in effect and covers risks in connection with in-orbit satellites. Liability limits for claims under Section B are $500 million per occurrence and in the aggregate for space vehicle liability and $500 million and $1.0 billion per occurrence and in the aggregate, respectively, with respect to de-orbiting. The balance of the unamortized premium payment for Sections A and B coverage as of December 31, 2014 is included in prepaid expenses and other current assets in the accompanying consolidated balance sheet. The deductible for claims under Section B is $250,000 per occurrence. | |||||
Section C coverage is effective once requested by the Company (the “Attachment Date”) and covers risks in connection with a decommissioning of the satellite system. Liability limits for claims under Section C are $500 million and $1.0 billion per occurrence and in the aggregate, respectively. The term of the coverage under Section C is 12 months from the Attachment Date. The premium for Section C coverage is $2.5 million and is payable on or before the Attachment Date. As of December 31, 2014, the Company had not requested Section C coverage since no decommissioning activities are currently anticipated. The deductible for claims under Section C is $250,000 per occurrence. | |||||
Operating Leases | |||||
The Company leases land, office space, and office and computer equipment under noncancelable operating lease agreements. Most of the leases contain renewal options of 1 to 10 years. The Company’s obligations under the current terms of these leases extend through 2024. | |||||
Additionally, several of the Company’s leases contain clauses for rent escalation including, but not limited to, a pro-rata share of increased operating and real estate tax expenses. Rent expense is recognized on a straight-line basis over the lease term. The Company leases facilities located in Chandler, Arizona; Tempe, Arizona; McLean, Virginia; Canada; Russia; and Norway. Future minimum lease payments, by year and in the aggregate, under noncancelable operating leases at December 31, 2014, are as follows: | |||||
Operating | |||||
Year ending December 31, | Leases | ||||
(In thousands) | |||||
2015 | $ | 3,051 | |||
2016 | 2,782 | ||||
2017 | 2,890 | ||||
2018 | 2,972 | ||||
2019 | 3,055 | ||||
Thereafter | 6,814 | ||||
Total | $ | 21,564 | |||
Rent expense for the years ended December 31, 2014, 2013 and 2012 was $3.3 million, $3.2 million and $3.2 million, respectively. | |||||
Contingencies | |||||
From time to time, in the normal course of business, the Company is party to various pending claims and lawsuits. On October 7, 2014, Kappa Digital, LLC filed a complaint for patent infringement against the Company in the United States District Court for the Eastern District of Texas - Marshall Division. In this action, Kappa Digital alleges that the Company’s products, services and/or systems infringe on Kappa’s U.S. Patent entitled “Method And System For A Wireless Digital Message Service.” Kappa Digital is seeking a judgment that the Company has infringed on its patent and is seeking a permanent injunction enjoining the Company from further infringement, as well as damages, costs, expenses, interest and attorneys’ fees. On February 25, 2015, the parties filed a joint motion to dismiss the case without prejudice, which the Company expects to be granted. Kappa Digital would retain the right to file a new complaint with the same allegations. Given the early stage of this matter, the Company cannot provide a reasonable estimate of the possibility of loss, or of any potential amount of loss, at this time. | |||||
The Company is not aware of any other actions that it would expect to have a material adverse impact on its business, financial results or financial condition. | |||||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 10. Stock-Based Compensation | |||||||||||||
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 December 31, 2014, 13,416,019 shares of common stock were authorized for issuance as awards under the 2012 Stock Incentive Plan. | ||||||||||||||
Stock Option Awards | ||||||||||||||
The stock option awards granted to employees generally (i) have a term of ten years, (ii) vest over a four-year period with 25% vesting after the first year of service and ratably on a quarterly basis thereafter, (iii) are contingent upon employment on the vesting date, and (iv) have an exercise price equal to the fair value of the underlying shares at the date of grant. The stock option awards granted to the Company’s board of directors generally (i) represent a portion of their annual compensation, (ii) have a term of ten years, (iii) vest over the calendar year with 25% vesting on the last day of each calendar quarter, (iv) are contingent upon continued service on the vesting date, and (v) have an exercise price equal to the fair value of the underlying shares at the date of grant. The fair value of each option is estimated on the date of grant using the Black-Scholes option pricing model. Expected volatility for options granted was based on the actual historical volatility of the Company’s stock price. The expected term of the award was calculated using the simplified method as the Company currently does not have sufficient experience of its own option exercise patterns. The Company does not anticipate paying dividends during the expected term of the grants; therefore, the dividend rate was assumed to be zero. The risk-free interest rate assumed is based upon U.S. Treasury Bond interest rates with similar terms at similar dates. To the extent the Company’s actual forfeiture rate is different from its estimate of forfeitures, the stock-based compensation may differ in future periods. | ||||||||||||||
The stock options granted to consultants are generally subject to service vesting and vest quarterly over a two-year service period. The fair value of the consultant options is the then-current fair value attributable to the vesting portions of the awards, calculated using the Black-Scholes option pricing model. | ||||||||||||||
Assumptions used in determining the fair value of the Company’s options were as follows: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Expected volatility | 41% - 43% | 41% - 42% | 42% - 45% | |||||||||||
Expected term (years) | 5.25 - 10.00 | 3.00 - 6.25 | 5.50 - 6.25 | |||||||||||
Expected dividends | 0% | 0% | 0% | |||||||||||
Risk free interest rate | 1.10% - 2.35% | 0.58% - 1.93% | 0.78% - 1.17% | |||||||||||
During 2014, the Company granted approximately 987,000 and 45,000 stock options to its employees and non-employee consultants, respectively. The estimated aggregate grant-date fair values of the stock options granted to employees and non-employee consultants during 2014 was $3.0 million and $0.2 million, respectively. | ||||||||||||||
In January 2014, certain members of the Company’s board of directors elected to receive a portion of their 2014 annual compensation in the form of stock options in an aggregate amount of approximately 112,000 stock options. These options were granted in January 2014 and vested through the end of 2014, with 25% vesting on the last day of each calendar quarter. The estimated aggregate grant-date fair value of these options granted to directors in January 2014 was $0.3 million. In July 2014, a new member of the Company’s board of directors elected to receive a portion of his 2014 annual compensation in the form of stock options, in an aggregate amount of approximately 20,000 stock options which vested through the end of 2014, with 33% vesting immediately upon grant and 33% and 34% vesting on September 30, 2014 and December 31, 2014, respectively. The estimated aggregate grant date fair value of these stock options granted in July 2014 was $0.1 million. | ||||||||||||||
A summary of the activity of the Company’s stock options as of December 31, 2014 is as follows: | ||||||||||||||
Weighted- | ||||||||||||||
Weighted- | Average | |||||||||||||
Average | Remaining | Aggregate | ||||||||||||
Exercise Price | Contractual | Intrinsic | ||||||||||||
Shares | Per Share | Term (Years) | Value | |||||||||||
(In thousands, except years and per share data) | ||||||||||||||
Options outstanding at January 1, 2014 | 6,183 | $ | 7.89 | |||||||||||
Granted | 1,163 | $ | 6.85 | |||||||||||
Cancelled or expired | -414 | $ | 8.36 | |||||||||||
Exercised | -189 | $ | 7.98 | |||||||||||
Forfeited | -72 | $ | 7.11 | |||||||||||
Options outstanding at December 31, 2014 | 6,671 | $ | 7.68 | 6.9 | $ | 13,783 | ||||||||
Options vested and exercisable at December 31, 2014 | 4,626 | $ | 8.05 | 6.21 | $ | 7,856 | ||||||||
Options exercisable and expected to vest at December 31, 2014 | 6,634 | $ | 7.69 | 6.84 | $ | 13,674 | ||||||||
The Company recognized $4.3 million, $6.0 million and $6.0 million of stock-based compensation expense related to stock options in the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||
The weighted-average grant-date fair value of options granted during the years ended December 31, 2014, 2013 and 2012 was $2.97, $2.60 and $3.31 per share, respectively. | ||||||||||||||
As of December 31, 2014, the total unrecognized cost related to non-vested options was approximately $5.1 million. This cost is expected to be recognized over a weighted average period of 2.4 years. The total fair value of the shares vested during the years ended December 31, 2014, 2013 and 2012 was approximately $4.6 million, $6.3 million and $6.7 million, respectively. | ||||||||||||||
Restricted Stock Unit Awards | ||||||||||||||
In 2014, the Company granted approximately 786,000 service-based RSUs to its employees. Employee 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. In addition, the Company granted performance-based RSUs to its employees in 2014. The Company records stock-based compensation expense related to performance-based RSUs when it is considered probable that the performance conditions will be met. In March 2014, the Company awarded approximately 207,000 performance-based RSUs to the Company’s executives (the “March 2014 RSUs”). Vesting of these March 2014 RSUs is dependent upon the Company’s achievement of defined performance goals over fiscal years 2014 and 2015. The number of March 2014 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 March 2014 RSUs will vest at the end of two years and the remaining 50% will vest at the end of the third year, subject to continued service. In June 2014, the Company awarded approximately 323,000 performance-based RSUs to its executives and employees (the “June 2014 RSUs”). Vesting of the June 2014 RSUs is dependent upon the Company’s achievement of defined performance goals for the 2014 fiscal year. The level of achievement, if any, of performance goals in connection with the June 2014 RSUs will be determined by the compensation committee. The Company expects this determination to occur in the first quarter of 2015. The estimated aggregate grant date fair values of the March 2014 RSUs and June 2014 RSUs granted during 2014 were $1.3 million and $2.6 million, respectively. | ||||||||||||||
Certain members of the Company’s board of directors elected to receive a portion of their 2014 annual compensation in the form of RSUs. During 2014, the Company granted approximately 108,000 RSUs to its directors as a result of these elections. These RSUs were granted in January 2014 and vested through the end of 2014, with 25% vesting on the last day of each calendar quarter. The estimated aggregate grant-date fair value of the RSUs granted to directors during 2013 was $0.7 million. | ||||||||||||||
A summary of the Company’s activity for the year ended December 31, 2014 for outstanding RSUs is as follows: | ||||||||||||||
Weighted- | ||||||||||||||
Average | ||||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
RSUs | Per RSU | |||||||||||||
(In thousands) | ||||||||||||||
Outstanding at January 1, 2014 | 1,306 | $ | 6.76 | |||||||||||
Granted | 1,430 | $ | 6.8 | |||||||||||
Forfeited | -78 | $ | 5.87 | |||||||||||
Released | -376 | $ | 6.72 | |||||||||||
Outstanding at December 31, 2014 | 2,282 | $ | 6.8 | |||||||||||
Vested at December 31, 2014 | 398 | |||||||||||||
A summary of the Company’s activity for the year ended December 31, 2014 for unvested RSUs is as follows: | ||||||||||||||
Weighted- | ||||||||||||||
Average | ||||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
RSUs | Per RSU | |||||||||||||
(In thousands) | ||||||||||||||
Non-vested at January 1, 2014 | 960 | $ | 6.5 | |||||||||||
Granted | 1,430 | $ | 6.8 | |||||||||||
Vested | -428 | $ | 6.51 | |||||||||||
Forfeited | -78 | $ | 5.87 | |||||||||||
Non-vested at December 31, 2014 | 1,884 | $ | 6.72 | |||||||||||
The Company recognized $6.5 million, $1.7 million and $2.1 million of stock-based compensation expense related to RSUs in the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||
Segments_Significant_Customers
Segments, Significant Customers, Supplier and Service Providers and Geographic Information | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Segment Reporting [Abstract] | |||||||||||
Segment Reporting Disclosure [Text Block] | 11. Segments, Significant Customers, Supplier and Service Providers and Geographic Information | ||||||||||
The Company operates in one business segment, providing global satellite communications services and products. | |||||||||||
The Company derived approximately 21%, 20% and 20% of the Company’s total revenue in the years ended December 31, 2014, 2013 and 2012, respectively, from prime contracts or subcontracts with agencies of the U.S. government. For the years ended December 31, 2014 and 2013, no single commercial customer accounted for more than 10% of the Company’s total revenue. For the year ended December 31, 2012, two large commercial customers each accounted for approximately 10% of the Company’s total revenue. | |||||||||||
The Company derived approximately 30% and 34% of its accounts receivable balance at December 31, 2014 and 2013, respectively, from prime contracts or subcontracts with agencies of the U.S. government. As of December 31, 2014 and 2013, one commercial customer represented 12% and 14%, respectively, of the Company’s total accounts receivable balance. As of December 31, 2014, no other single customer accounted for more than 10% of the Company’s total accounts receivable balance. As of December 31, 2013, another customer accounted for 11% of the Company’s total accounts receivable balance. | |||||||||||
The Company contracts for the manufacture of its subscriber equipment primarily from two manufacturers and utilizes other sole source suppliers for certain component parts of its devices. Should events or circumstances prevent the manufacturers or the suppliers from producing the equipment or component parts, the Company’s business could be adversely affected until the Company is able to move production to other facilities of the manufacturer or secure a replacement manufacturer or an alternative supplier for such component parts. | |||||||||||
A significant portion of the Company’s satellite operations and maintenance service is provided by Boeing. Should events or circumstances prevent Boeing from providing these services, the Company’s business could be adversely affected until the Company is able to assume operations and maintenance responsibilities or secure a replacement service provider. | |||||||||||
Net property and equipment by geographic area was as follows as of December 31: | |||||||||||
2014 | 2013 | ||||||||||
(In thousands) | |||||||||||
United States | $ | 137,185 | $ | 118,011 | |||||||
Satellites in orbit | 57,494 | 96,231 | |||||||||
Iridium NEXT systems under construction | 1,755,973 | 1,341,148 | |||||||||
All others (1) | 21,187 | 20,189 | |||||||||
Total | $ | 1,971,839 | $ | 1,575,579 | |||||||
-1 | No one other country represented more than 10% of property and equipment, net. | ||||||||||
Revenue by geographic area was as follows for the years ended December 31: | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||
United States | $ | 194,060 | $ | 175,054 | $ | 178,145 | |||||
Canada | 44,933 | 49,541 | 53,279 | ||||||||
United Kingdom | 47,093 | 37,421 | 42,706 | ||||||||
Other countries (1) | 122,471 | 120,633 | 109,390 | ||||||||
Total | $ | 408,557 | $ | 382,649 | $ | 383,520 | |||||
-1 | No one other country represented more than 10% of revenue. | ||||||||||
Revenue is attributed to geographic area based on the billing address of the distributor. Service location and the billing address are often not the same. The Company’s distributors sell services directly or indirectly to end users, who may be located or use the Company’s products and services elsewhere. The Company cannot provide the geographical distribution of end users because it does not contract directly with them. The Company is exposed to foreign currency exchange fluctuations as foreign currency exchange rate movements create a degree of risk by affecting the U.S. dollar value of sales made and costs incurred in foreign currencies. | |||||||||||
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | 12. Employee Benefit Plan |
The Company sponsors a defined-contribution 401(k) retirement plan (the “Plan”) that covers all employees. Employees are eligible to participate in the Plan on the first day of the month following the date of hire, and participants are 100% vested from the date of eligibility. The Company matches employees’ contributions equal to 100% of the salary deferral contributions up to 5% of the employees’ compensation. Company-matching contributions to the Plan were $1.3 million, $1.2 million and $1.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. The Company pays all administrative fees related to the Plan. | |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
Income Tax Disclosure [Text Block] | 13. Income Taxes | ||||||||||
U.S. and foreign components of income before income taxes are presented below: | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||
U.S. income | $ | 115,858 | $ | 111,685 | $ | 94,719 | |||||
Foreign income (loss) | 594 | -1,220 | 299 | ||||||||
Total income before income taxes | $ | 116,452 | $ | 110,465 | $ | 95,018 | |||||
The components of the Company’s income tax provision are as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||
Current taxes: | |||||||||||
Federal provision (benefit) | $ | 50 | $ | -12 | $ | -47 | |||||
State provision (benefit) | -90 | 7 | 96 | ||||||||
Foreign provision | 1,260 | 723 | 849 | ||||||||
Total current tax provision | 1,220 | 718 | 898 | ||||||||
Deferred taxes: | |||||||||||
Federal provision | 40,155 | 39,041 | 30,014 | ||||||||
State provision (benefit) | -77 | 8,240 | -610 | ||||||||
Foreign provision (benefit) | 165 | -51 | 85 | ||||||||
Total deferred tax provision | 40,243 | 47,230 | 29,489 | ||||||||
Total income tax provision | $ | 41,463 | $ | 47,948 | $ | 30,387 | |||||
In 2011 and 2012, Arizona enacted tax law changes resulting in a benefit to the Company’s net deferred tax expense. Due to the size and nature of the Company’s operations in Arizona, such changes have a significant impact on the tax provision in a given period. As a result of these law changes, the Company’s deferred tax expense was reduced by approximately $5.5 million, $4.0 million and $9.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||
A reconciliation of the U.S. federal statutory income tax expense to the Company’s effective income tax provision is as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||
U.S. federal statutory tax rate | $ | 40,766 | $ | 38,668 | $ | 33,256 | |||||
State taxes, net of federal benefit | 4,991 | 9,048 | 3,837 | ||||||||
State tax valuation allowance | 380 | 3,151 | 1,943 | ||||||||
Arizona tax law change | -5,525 | -3,975 | -9,524 | ||||||||
Other nondeductible expenses | 903 | 1,185 | 414 | ||||||||
Liability for uncertain tax positions | - | -146 | -45 | ||||||||
Tax credits and other adjustments | -994 | -849 | 223 | ||||||||
Foreign taxes and other items | 942 | 866 | 283 | ||||||||
Total income tax provision | $ | 41,463 | $ | 47,948 | $ | 30,387 | |||||
The components of deferred tax assets and liabilities at December 31, 2014 and 2013 are as follows: | |||||||||||
As of December 31, | |||||||||||
2014 | 2013 | ||||||||||
(In thousands) | |||||||||||
Deferred tax assets | |||||||||||
Long-term contracts | $ | 49,207 | $ | 33,988 | |||||||
Deferred revenue | 6,357 | 4,086 | |||||||||
Federal, state and foreign net operating loss carryforwards and tax credits | 133,021 | 133,190 | |||||||||
Other | 24,571 | 21,571 | |||||||||
Total deferred tax assets | 213,156 | 192,835 | |||||||||
Valuation allowance | -6,806 | -6,567 | |||||||||
Net deferred tax assets | $ | 206,350 | $ | 186,268 | |||||||
Deferred tax liabilities | |||||||||||
Fixed assets and intangibles | $ | -95,797 | $ | -58,220 | |||||||
Research and development expenditures | -335,833 | -318,340 | |||||||||
Other | -8,753 | -3,457 | |||||||||
Total deferred tax liabilities | $ | -440,383 | $ | -380,017 | |||||||
Net deferred income tax liabilities | $ | -234,033 | $ | -193,749 | |||||||
The Company recognizes valuation allowances to reduce deferred tax assets to the amount that is more likely than not to be realized. In assessing the likelihood of realization, management considers: (i) future reversals of existing taxable temporary differences; (ii) future taxable income exclusive of reversing temporary differences and carryforwards; (iii) taxable income in prior carryback year(s) if carryback is permitted under applicable tax law; and (iv) tax planning strategies. | |||||||||||
As of December 31, 2014, the Company had deferred tax assets related to cumulative U.S. and state net operating loss carryforwards of approximately $323.6 million. These net operating loss carryforwards, if unutilized, will expire in various amounts from 2015 through 2033. The Company believes that the U.S. federal net operating losses will be utilized before the expiration dates and as such no valuation allowance has been established for these deferred tax assets. The Company does not expect to fully utilize all of its state net operating losses within the respective carryforward periods. As such, the Company has increased its state net operating loss valuation allowance by $0.4 million for the year ended December 31, 2014. As of December 31, 2014, the Company had deferred tax assets related to the foreign net operating loss carryforwards of approximately $0.1 million in various jurisdictions that begin to expire in 2016. The Company does not expect to fully utilize all of its foreign net operating losses within the respective carryforward periods and as such reflects a partial valuation allowance against these deferred tax assets on its consolidated balance sheet. The timing and manner in which the Company will utilize the net operating loss carryforwards in any year, or in total, may be limited in the future as a result of alternative minimum taxes, changes in the Company’s ownership and any limitations imposed by the jurisdictions in which the Company operates. | |||||||||||
As of December 31, 2014, the Company had approximately $4.4 million of deferred tax assets related to research and development tax credits that expire in various amounts from 2028 through 2034, $2.3 million of foreign tax credits which expire in various amounts from 2020 through 2024, and $1.3 million of deferred tax assets related to Alternative Minimum Tax credits which do not expire. The Company believes that the research and development credits will be fully utilized within the carryforward period. However, the Company does not expect to utilize all of its foreign tax credits within the respective carryforward periods. As such, the Company has a partial valuation allowance of $0.7 million for the year ended December 31, 2014. | |||||||||||
The Company has provided for U.S. income taxes on all undistributed earnings of its significant foreign subsidiaries since the Company does not indefinitely reinvest these undistributed earnings. The Company measures deferred tax assets and liabilities using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company recognizes the effect on deferred tax assets and liabilities of a change in tax rates in income in the period that includes the enactment date. | |||||||||||
Uncertain Income Tax Positions | |||||||||||
The Company is subject to income taxes in the U.S. and various state and foreign jurisdictions. Significant judgment is required in evaluating tax positions and determining the provision for income taxes. The Company establishes liabilities for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes may be due. These liabilities are established when the Company believes that certain positions might be challenged despite its belief that its tax return positions are fully supportable. The Company adjusts these liabilities in light of changing facts and circumstances, such as the outcome of a tax audit. The provision for income taxes includes the impact of changes to these liabilities. | |||||||||||
The amount of uncertain tax positions if recognized at December 31, 2014 was $1.2 million, as compared to $1.3 million at December 31, 2013. It is reasonably possible that $0.3 million of the unrecognized tax benefit reflected at December 31, 2014 may reverse in the next 12 months as the Company reassesses its filing positions in various foreign jurisdictions. Any changes are not anticipated to have significant impact on the results of operations, financial position or cash flows of the Company. All of the Company’s uncertain tax positions, if recognized, would affect its income tax expense. | |||||||||||
The Company has elected an accounting policy to classify interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2014 and 2013, potential interest and penalties on unrecognized tax benefits were not significant. | |||||||||||
The Company is subject to tax audits in all jurisdictions for which it files tax returns. Tax audits by their very nature are often complex and can require several years to complete. Currently, there are no U.S. federal, state or foreign jurisdiction tax audits pending. The Company’s corporate U.S. federal and state tax returns from 2009 to 2013 remain subject to examination by tax authorities and the Company’s foreign tax returns from 2007 to 2013 remain subject to examination by tax authorities. | |||||||||||
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits which includes related interest and penalties: | |||||||||||
2014 | 2013 | ||||||||||
(In thousands) | |||||||||||
Balance at January 1, | $ | 1,259 | $ | 1,405 | |||||||
Change attributable to tax positions taken in a prior period | -51 | 54 | |||||||||
Change attributable to tax positions taken in the current period | 8 | 7 | |||||||||
Decrease attributable to lapse of statute of limitations | -66 | -207 | |||||||||
Balance at December 31, | $ | 1,150 | $ | 1,259 | |||||||
Net_Income_Per_Share
Net Income Per Share | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
Earnings Per Share [Text Block] | 14. Net Income Per Share | ||||||||||
The computations of basic and diluted net income per share are set forth below: | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands, except per share data) | |||||||||||
Numerator: | |||||||||||
Net income attributable to common stockholders | $ | 62,669 | $ | 55,517 | $ | 62,939 | |||||
Net income allocated to participating securities | -43 | -46 | -54 | ||||||||
Numerator for basic net income per share | 62,626 | 55,471 | 62,885 | ||||||||
Dividends on Series A Preferred Stock | 7,000 | 7,000 | 1,692 | ||||||||
Dividends on Series B Preferred Stock | 5,320 | - | - | ||||||||
Numerator for diluted net income per share | $ | 74,946 | $ | 62,471 | $ | 64,577 | |||||
Denominator: | |||||||||||
Denominator for basic net income per share - weighted average outstanding common shares | 88,080 | 76,909 | 74,239 | ||||||||
Dilutive effect of warrants | - | - | 1,272 | ||||||||
Dilutive effect of stock options | 85 | - | 6 | ||||||||
Dilutive effect of contingently issuable shares | - | - | - | ||||||||
Dilutive effect of Series A Preferred Stock | 10,602 | 10,602 | 2,665 | ||||||||
Dilutive effect of Series B Preferred Stock | 10,633 | - | - | ||||||||
Denominator for diluted net income per share | 109,400 | 87,511 | 78,182 | ||||||||
Net income per share attributable to common stockholders - basic | $ | 0.71 | $ | 0.72 | $ | 0.85 | |||||
Net income per share attributable to common stockholders - diluted | $ | 0.69 | $ | 0.71 | $ | 0.83 | |||||
For the year ended December 31, 2014, warrants to purchase 0.3 million shares of common stock and options to purchase 3.6 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 year ended December 31, 2014, 1.3 million unvested RSUs were excluded from the computation of basic and diluted net income per share. In January 2015, the Company granted approximately 0.2 million stock options and 0.1 million RSUs to employees and members of the Company’s board of directors. These grants could have dilutive effects on net income per share in future periods. | |||||||||||
For the year ended December 31, 2013, warrants to purchase 0.4 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 year ended December 31, 2013, 0.9 million unvested RSUs were excluded from the computation of basic and diluted net income per share. | |||||||||||
For the year ended December 31, 2012, warrants to purchase 0.3 million shares of common stock, 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 year ended December 31, 2012, 0.5 million unvested RSUs were excluded from the computation of basic and diluted net income per share. | |||||||||||
Selected_Quarterly_Information
Selected Quarterly Information (Unaudited) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Quarterly Financial Information [Text Block] | 15. Selected Quarterly Information (Unaudited) | |||||||||||||
The following represents the Company’s unaudited quarterly results for the years ended December 31, 2014 and 2013: | ||||||||||||||
Quarter Ended | ||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||
2014 | 2014 | 2014 | 2014 | |||||||||||
(In thousands, except per share data) | ||||||||||||||
Revenue | $ | 98,032 | $ | 102,521 | $ | 107,493 | $ | 100,511 | ||||||
Operating income | $ | 28,344 | $ | 29,713 | $ | 33,013 | $ | 31,841 | ||||||
Net income | $ | 16,543 | $ | 15,019 | $ | 20,388 | $ | 23,039 | ||||||
Net income per common share - basic | $ | 0.19 | $ | 0.14 | $ | 0.18 | $ | 0.2 | ||||||
Net income per common share -diluted | $ | 0.19 | $ | 0.14 | $ | 0.17 | $ | 0.19 | ||||||
Quarter Ended | ||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||
2013 | 2013 | 2013 | 2013 | |||||||||||
(In thousands, except per share data) | ||||||||||||||
Revenue | $ | 89,189 | $ | 94,684 | $ | 100,569 | $ | 98,207 | ||||||
Operating income | $ | 25,338 | $ | 28,848 | $ | 29,451 | $ | 26,257 | ||||||
Net income | $ | 14,934 | $ | 15,413 | $ | 16,585 | $ | 15,585 | ||||||
Net income per common share - basic | $ | 0.17 | $ | 0.18 | $ | 0.19 | $ | 0.18 | ||||||
Net income per common share -diluted | $ | 0.17 | $ | 0.18 | $ | 0.19 | $ | 0.18 | ||||||
The sum of the per share amounts does not equal the annual amounts due to changes in the weighted average number of common shares outstanding during the year. | ||||||||||||||
Significant_Accounting_Policie1
Significant Accounting Policies and Basis of Presentation (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Consolidation, Policy [Policy Text Block] | Principles of Consolidation and Basis of Presentation | ||||||||||
The Company has prepared the consolidated financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The accompanying 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 intercompany transactions and balances have been eliminated. | |||||||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates | ||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ materially from those estimates. | |||||||||||
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 and other current assets, accounts receivable, accounts payable and 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. | ||||||||||
The carrying values of short-term financial instruments (primarily cash and cash equivalents, prepaid expenses and other current assets, accounts receivable, accounts payable, and accrued expenses and other current liabilities) approximate their fair values because of their short-term nature. The fair value of the Company’s investments in money market funds approximates its carrying value; such instruments are classified as Level 1 and are included in cash and cash equivalents on the accompanying consolidated balance sheets. 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 accompanying consolidated balance sheets. | |||||||||||
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 and are included in marketable securities on the accompanying consolidated balance sheets. For fixed income securities that do not have quoted prices in active markets, the Company uses third-party vendors to price its debt securities resulting in classification as Level 2. | |||||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk | ||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, and receivables. The majority of cash is swept nightly into a money market fund invested in U.S. treasuries, Agency Mortgage Backed Securities and/or U.S. Government guaranteed debt. While the Company maintains its cash and cash equivalents with financial institutions with high credit ratings, it often maintains those deposits in federally insured financial institutions in excess of federally insured (FDIC) limits. The Company’s marketable securities are highly-rated corporate and foreign fixed-income debt securities and commercial paper with an original maturity in excess of ninety days. The Company performs credit evaluations of its customers’ financial condition and records reserves to provide for estimated credit losses. Accounts receivable are due from both domestic and international customers. | |||||||||||
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash, Cash Equivalents and Restricted Cash | ||||||||||
The Company considers all highly liquid investments with original maturities of ninety days or less to be cash equivalents. These investments, along with cash deposited in institutional money market funds, regular interest bearing depository accounts and non-interest bearing depository accounts, are classified as cash and cash equivalents on the accompanying consolidated balance sheets. 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 December 31, 2014 and 2013, 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 $86.1 million and $81.2 million, respectively. For further discussion on the cash reserve for debt service related to the Credit Facility, see the Commitments and Contingencies footnote below. | |||||||||||
Marketable Securities, Policy [Policy Text Block] | Marketable Securities | ||||||||||
Marketable securities consist of fixed-income debt securities and commercial paper with an original maturity in excess of ninety days. These investments are classified as available-for-sale and are included in marketable securities within current assets on the accompanying consolidated balance sheets. 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 material realized gains or losses on the sale of marketable securities for the years ended December 31, 2014 and 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 the decline in fair value of these investments is temporary as the Company does not intend to sell these securities and it is not likely that the Company will be required to sell the securities before the recovery of their amortized cost basis. | |||||||||||
Receivables, Policy [Policy Text Block] | Accounts Receivable | ||||||||||
Trade accounts receivable are recorded at the invoiced amount and are subject to late fee penalties. Management develops its estimate of an allowance for uncollectible receivables based on the Company’s experience with specific customers, aging of outstanding invoices, its understanding of customers’ current economic circumstances and its own judgment as to the likelihood that the Company will ultimately receive payment. The Company writes off its accounts receivable when balances ultimately are deemed uncollectible. The allowance for doubtful accounts was $0.9 million and $0.5 million as of December 31, 2014 and 2013, respectively. | |||||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currencies | ||||||||||
The functional currency of the Company’s foreign consolidated subsidiaries is the local currency. Assets and liabilities of its foreign subsidiaries are translated to U.S. dollars based on exchange rates at the end of the reporting period. Income and expense items are translated at the weighted average exchange rates prevailing during the reporting period. Translation adjustments are accumulated in a separate component of stockholders’ equity. Transaction gains or losses are classified as other income (expense), net in the accompanying consolidated statements of operations and comprehensive income. | |||||||||||
Internal Use Software, Policy [Policy Text Block] | Internally Developed Software | ||||||||||
The Company capitalizes the costs of acquiring, developing and testing software to meet its internal needs. Capitalization of costs associated with software obtained or developed for internal use commences when the preliminary project stage is complete and it is probable that the project will be completed and used to perform the function intended. Capitalized costs include only (i) external direct cost of materials and services consumed in developing or obtaining internal-use software and (ii) payroll and payroll-related costs for employees who are directly associated with, and devote time to, the internal-use software project. Capitalization of such costs ceases no later than the point at which the project is substantially complete and ready for its intended use. Internal use software costs are amortized once the software is placed in service using the straight-line method over periods ranging from three to seven years. | |||||||||||
Deferred Charges, Policy [Policy Text Block] | Deferred Financing Costs | ||||||||||
Direct and incremental costs incurred in connection with securing debt financing are deferred and are amortized as additional interest expense using the effective interest method over the term of the related debt. | |||||||||||
As of December 31, 2014 and 2013, the Company had deferred approximately $136.4 million and $130.0 million, respectively, of direct and incremental financing costs, net of amortization, associated with securing debt financing for Iridium NEXT, the Company’s next-generation satellite constellation. | |||||||||||
Interest Capitalization, Policy [Policy Text Block] | Capitalized Interest | ||||||||||
Interest costs associated with financing the Company’s assets during the construction period of Iridium NEXT have been capitalized. Capitalized interest and interest expense were as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||
Capitalized interest | $ | 62,019 | $ | 52,136 | $ | 29,305 | |||||
Interest expense | 954 | 583 | 114 | ||||||||
Total interest | $ | 62,973 | $ | 52,719 | $ | 29,419 | |||||
Inventory, Policy [Policy Text Block] | Inventory | ||||||||||
Inventory consists primarily of finished goods, although the Company at times also maintains an inventory of raw materials from third-party manufacturers. The Company outsources manufacturing of subscriber equipment to third-party manufacturers and purchases accessories from third-party suppliers. The Company’s cost of inventory includes an allocation of overhead (including payroll and payroll-related costs of employees directly involved in bringing inventory to its existing condition, and freight). Inventories are valued using the average cost method and are carried at the lower of cost or market. Accordingly, the Company recorded a $0.9 million and $1.5 million expense included within cost of subscriber equipment for excess and obsolete inventory primarily related to Iridium 9505 handset accessories for the years ended December 31, 2014 and 2013, respectively. No similar charge was incurred during 2012. | |||||||||||
The Company has manufacturing agreements with two suppliers to manufacture subscriber equipment, one of which contains minimum monthly purchase requirements. The Company’s purchases have exceeded the monthly minimum requirements since inception. Pursuant to an agreement with the suppliers, the Company may be required to purchase excess materials if the materials are not used in production within the periods specified in the agreement. The suppliers will then repurchase such materials from the Company at the same price paid by the Company, as required for the production of the subscriber equipment. | |||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | 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 consolidated statements of operations and comprehensive income in a manner consistent with the classification of the recipient’s compensation. The expected vesting of the Company’s performance-based RSUs is based upon the likelihood that the Company achieves the defined performance goals. The level of achievement of performance goals, if any, is determined by the compensation committee. 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 consolidated statements of operations and comprehensive income. Classification of stock-based compensation for the years ended December 31, 2014 and 2013 is as follows: | |||||||||||
2014 | 2013 | ||||||||||
(In thousands) | |||||||||||
Property and equipment, net | $ | 1,176 | $ | 991 | |||||||
Inventory | 83 | 43 | |||||||||
Cost of subscriber equipment | 152 | 32 | |||||||||
Cost of services (exclusive of depreciation and amortization) | 824 | 550 | |||||||||
Research and development | 312 | 132 | |||||||||
Selling, general and administrative | 8,313 | 6,001 | |||||||||
Total stock-based compensation | $ | 10,860 | $ | 7,749 | |||||||
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 | 15-18 years | ||||||||||
Ground system | 5-7 years | ||||||||||
Equipment | 3-5 years | ||||||||||
Internally developed software and purchased software | 3-7 years | ||||||||||
Building | 39 years | ||||||||||
Building improvements | 5-39 years | ||||||||||
Leasehold improvements | shorter of useful life or remaining lease term | ||||||||||
The estimated useful lives of the Company’s current constellation of satellites reflect the remaining period of expected use for each satellite. Satellites are depreciated on a straight-line basis through the date they will be replaced by Iridium NEXT satellites. Based on the current launch schedule, the Company expects Iridium NEXT satellites to begin deployment in the second half of 2015, with the final launch expected to occur in 2017. | |||||||||||
The Company calculates depreciation expense using the straight-line method and evaluates the appropriateness of the useful life used in this calculation on a quarterly basis or as events occur that require additional assessment. During 2012, the Company updated its analysis of the current satellite constellation’s health and remaining useful life. Based on the results of this analysis, the Company estimated that its current constellation of satellites would be operational for longer than previously expected. As a result, the estimated useful life of the current constellation was extended and was consistent with the expected deployment of Iridium NEXT. In September 2014, the Company further updated its analysis of the current satellites’ remaining useful lives based on the refinement of the launch schedule and deployment plan for Iridium NEXT. As a result, the estimated useful lives of the satellites within the current constellation have been extended and are consistent with the expected deployment of Iridium NEXT. These changes in estimated useful life resulted in a decrease in depreciation expense compared to the prior year. The change in accounting estimate reduced depreciation expense in 2014 and 2012 by $3.8 million and $19.6 million, respectively. For the year ended December 31, 2014, the reduction in depreciation expense increased each of basic and diluted net income per share by $0.03 and $0.02, respectively. For the year ended December 31, 2012, the reduction in depreciation expense increased basic and diluted net income per share by $0.17 and $0.16, respectively. | |||||||||||
Repairs and maintenance costs are expensed as incurred. | |||||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-Lived Assets | ||||||||||
The Company assesses its long-lived assets for impairment when indicators of impairment exist. Recoverability of assets is measured by comparing the carrying amounts of the assets to the future undiscounted cash flows expected to be generated by the assets. Any impairment loss would be measured as the excess of the assets’ carrying amount over their fair value. | |||||||||||
During the period covered by this report, the Company lost communication with four of its in-orbit satellites, one in 2012 and three in 2014. As a result, impairment charges of $2.0 million and $2.2 million were recorded within depreciation expense during 2012 and 2014, respectively. The Company had in-orbit spare satellites available to replace the lost satellites. No similar satellite loss occurred during 2013. The Company does not believe the loss of these satellites is an indicator of impairment of the remaining individual satellites or the constellation as of December 31, 2014. | |||||||||||
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangible Assets | ||||||||||
Goodwill | |||||||||||
Goodwill is the excess of the acquisition cost of businesses over the fair value of the identifiable net assets acquired. Impairment testing for goodwill is performed during the fourth quarter of each annual period or more frequently if indicators of potential impairment exist. Goodwill impairment is determined using a two-step process. The first step involves a comparison of the estimated fair value of a reporting unit to its carrying amount, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired and the second step of the impairment test is not necessary. If the carrying amount of a reporting unit exceeds its estimated fair value, then the second step of the goodwill impairment test must be performed. To measure the amount of impairment loss, if any, the implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. Specifically, the estimated fair value of the reporting unit is allocated to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the price paid to acquire the reporting unit. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. | |||||||||||
The Company operates in a single reporting unit, and the possibility of impairment is assessed by comparing the carrying amount of the reporting unit to its estimated fair value. The Company determines the estimated fair value of the reporting unit based on a combination of the market approach using comparable public companies (guideline company method) and the income approach using discounted cash flows. These valuation techniques involve the use of estimates and assumptions. | |||||||||||
The most recent annual assessment of goodwill and indefinite-lived assets was performed on October 1, 2014 (the “2014 Analysis”). The key assumptions used in the 2014 Analysis included: (i) cash flow projections through 2025, which include assumptions relative to forecasted service revenue, equipment revenue, engineering and support service revenue, hosted payload revenue, operating expenses and Iridium NEXT capital expenditures; (ii) a discount rate of 12.0% applied to the cash flow projections, which was based on the weighted average cost of capital adjusted for the risks associated for the business; (iii) selection of comparable companies used in the market approach; (iv) assumptions in weighting the results of the income approach and the market approach valuation techniques; and (v) expected distributions from Aireon. Based on the results of the first step of the 2014 Analysis, the estimated fair value of the reporting unit exceeded the carrying value. As such, the second step of the goodwill impairment test was not required and no impairment charge was recorded during the period. In future periods, if actual results are not consistent with our estimates and assumptions, the Company may be exposed to impairment losses that could be material to our results of operations. | |||||||||||
Intangible Assets Not Subject to Amortization | |||||||||||
A portion of the Company’s intangible assets are spectrum, regulatory authorizations, and trade names, which are indefinite-lived intangible assets. The Company reevaluates the useful life determination for these assets each reporting period to determine whether events and circumstances continue to support an indefinite useful life. The Company tests its indefinite-lived intangible assets for potential impairment annually in the fourth quarter or more frequently if indicators of impairment exist. If the fair value of the indefinite-lived asset is less than the carrying amount, an impairment loss is recognized. Based on the results of the 2014 Analysis, the fair value of the indefinite-lived intangible assets was greater than the carrying value. As such, no impairment charge was recorded during the period. | |||||||||||
Intangible Assets Subject to Amortization | |||||||||||
The Company’s intangible assets that do have finite lives (customer relationships – government and commercial, core developed technology, intellectual property and software) are amortized over their useful lives and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If any indicators were present, the Company would test for recoverability by comparing the carrying amount of the asset to the net undiscounted cash flows expected to be generated from the asset. If those net undiscounted cash flows do not exceed the carrying amount (i.e., the asset is not recoverable), the Company would perform the next step, which is to determine the fair value of the asset and record an impairment loss, if any. The Company also reevaluates the useful lives for these intangible assets each reporting period to determine whether events and circumstances warrant a revision in their remaining useful lives. | |||||||||||
Asset Retirement Obligations, Policy [Policy Text Block] | Asset Retirement Obligations | ||||||||||
Liabilities arising from legal obligations associated with the retirement of long-lived assets are required to be measured at fair value and recorded as a liability. Upon initial recognition of a liability for retirement obligations, a company must record an asset, which is depreciated over the life of the asset to be retired. | |||||||||||
Under certain circumstances, each of the U.S. government, The Boeing Company (“Boeing”), and Motorola Solutions, Inc. (“Motorola Solutions”) has the right to require the de-orbit of the Company’s satellite constellation. One such right the U.S. government holds is to require the Company to de-orbit the satellite constellation if more than four satellites have insufficient fuel to execute a 12-month de-orbit, as is currently the case. In the event the Company was required to effect a mass de-orbit, pursuant to the amended and restated operations and maintenance agreement (the “O&M Agreement”) by and between the Company and Boeing, the Company would be required to pay Boeing $18.0 million, plus an amount equivalent to the premium for mass de-orbit insurance coverage ($2.5 million as of December 31, 2014). The Company has concluded that each of the foregoing de-orbit rights meets the definition of an asset retirement obligation. However, the Company currently does not believe the U.S. government, Boeing or Motorola Solutions will exercise their respective de-orbit rights. As a result, the Company believes the likelihood of any future cash outflows associated with the mass de-orbit obligation is remote and has recorded an asset retirement obligation with respect to the potential mass de-orbit of approximately $0.2 million at December 31, 2014, which is included in other long-term liabilities on the accompanying consolidated balance sheet. | |||||||||||
There are other circumstances in which the Company could be required, either by the U.S. government or for technical reasons, to de-orbit an individual satellite; however, the Company believes that such costs would not be significant relative to the costs associated with the ordinary operations of the satellite constellation. | |||||||||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition | ||||||||||
The Company derives its revenue primarily as a wholesaler of satellite communications products and services. The primary types of revenue include (i) service revenue (access and usage-based airtime fees), (ii) subscriber equipment revenue, and (iii) revenue generated by providing engineering and support services to commercial and government customers. | |||||||||||
Wholesaler of satellite communications products and services | |||||||||||
Pursuant to wholesale agreements, the Company sells its products and services to service providers who, in turn, sell the products and services to other distributors or directly to the end users. The Company recognizes revenue when services are performed or delivery has occurred, evidence of an arrangement exists, the fee is fixed or determinable, and collection is probable, as follows: | |||||||||||
Contracts with multiple elements | |||||||||||
At times, the Company sells services and equipment through multi-element arrangements that bundle equipment, airtime and other services. For multi-element revenue arrangements when the Company sells services and equipment in bundled arrangements and determines that it has separate units of accounting, the Company allocates the bundled contract price among the various contract deliverables based on each deliverable’s relative selling price. The selling price used for each deliverable is based on vendor-specific objective evidence when available, third-party evidence when vendor-specific objective evidence is not available, or the estimated selling price when neither vendor-specific evidence nor third party evidence is available. The Company determines vendor-specific objective evidence of selling price by assessing sales prices of subscriber equipment, airtime and other services when they are sold to customers on a stand-alone basis. The Company’s determination of best estimate of selling price is consistent with its determination of vendor-specific objective evidence of selling price and the Company assesses qualitative and quantitative market factors and entity-specific factors when estimating the selling price. When the Company determines the elements are not separate units of accounting, the Company recognizes revenue on a combined basis as the last element is delivered. | |||||||||||
Service revenue sold on a stand-alone basis | |||||||||||
Service revenue is generated from the Company’s service providers through usage of its satellite system and through fixed monthly access fees per user charged to service providers. Revenue for usage is recognized when usage occurs. Revenue for fixed-per-user access fees is recognized ratably over the period in which the services are provided to the end user. The Company sells prepaid services in the form of e-vouchers and prepaid cards. A liability is established equal to the cash paid upon purchase for the e-voucher or prepaid card. The Company recognizes revenue from the prepaid services upon the use of the e-voucher or prepaid card by the customer or upon the expiration of the right to access the prepaid service. In September 2012, the Company communicated a new expiration policy with respect to prepaid e-vouchers, effective December 2013. While the terms of prepaid e-vouchers can be extended by the purchase of additional e-vouchers, prepaid e-vouchers may not be extended beyond the new limits of three or four years, dependent on the initial expiry period when purchased. The Company does not offer refunds for unused prepaid services. | |||||||||||
Subscriber equipment sold on a stand-alone basis | |||||||||||
The Company recognizes subscriber equipment sales and the related costs when title to the equipment (and the risks and rewards of ownership) passes to the customer, typically upon shipment. | |||||||||||
Services sold to the U.S. government | |||||||||||
The Company provides airtime and airtime support to U.S. government and other authorized customers pursuant to the Enhanced Mobile Satellite Services (“EMSS”) contract managed by the Defense Information Systems Agency (“DISA”). The EMSS contract, entered into in April 2008, provided for a one-year base term and four additional one-year options which were exercised at the election of the U.S. government. Under the terms of this contract, the Company provided airtime to U.S. government subscribers through (i) fixed monthly fees on a per-user basis for unlimited voice services, (ii) fixed monthly fees per user for unlimited paging services, (iii) a tiered pricing plan (based on usage) per device for data services, (iv) fixed monthly fees on a per-user basis for unlimited beyond-line-of-sight push-to-talk voice services to user-defined groups (“Netted Iridium”), and (v) a monthly fee for active user-defined groups using Netted Iridium. Revenue related to these services was recognized ratably over the periods in which the services were provided, and the related costs were expensed as incurred. After the exercise of all available optional contract extensions, the EMSS contract as signed in April 2008 expired in October 2013. | |||||||||||
Effective October 22, 2013, the Company executed a new five-year EMSS contract. Under the terms of this new agreement, authorized customers continue to utilize airtime services, provided through the U.S. Department of Defense’s (“DoD”) dedicated gateway. These services include unlimited global secure and unsecure voice, low and high-speed data, paging, broadcast and Netted Iridium services for an unlimited number of DoD and other federal subscribers. The fixed-price rates in each of the five contract years, which run from October 22 through the following October 21 of each year, are $64 million and $72 million in years one and two, respectively, and $88 million in each of the years three through five. Under this contract, revenue is based on the annual fee for the fixed-price contract with unlimited subscribers, and is recognized on a straight-line basis over each contractual year. | |||||||||||
The U.S. government purchases its subscriber equipment from third-party distributors and not directly from the Company. | |||||||||||
Government engineering and support services | |||||||||||
The Company provides maintenance services to the U.S. government’s dedicated gateway. This revenue is recognized ratably over the periods in which the services are provided; the related costs are expensed as incurred. | |||||||||||
Other government and commercial engineering and support services | |||||||||||
The Company also provides engineering services to assist customers in developing new technologies for use on the Company’s satellite system. The revenue associated with these services is recorded when the services are rendered, typically on a partial performance method of accounting based on the Company’s estimate of total costs expected to complete the contract, and the related costs are expensed as incurred. Revenue on cost-plus-fixed-fee contracts is recognized to the extent of estimated costs incurred plus the applicable fees earned. The Company considers fixed fees under cost-plus-fixed-fee contracts to be earned in proportion to the allowable costs incurred in performance of the contract. The portion of revenue on research and development arrangements that is contingent upon the achievement of substantive milestone events is recognized in the period in which the milestone is achieved. | |||||||||||
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 consolidated statements of operations and comprehensive income. The Company experienced a $5.3 million decrease in its warranty provision for the year ended December 31, 2014 compared to the prior year. This decrease is primarily the result of fewer expected returns for the Iridium Pilot® sold in 2014 and decreased average repair costs, partially offset by $1.8 million in warranty-related initiatives for the Iridium OpenPort models sold in prior years. | |||||||||||
Changes in the warranty reserve for the years ended December 31, 2014 and 2013 were as follows: | |||||||||||
2014 | 2013 | ||||||||||
(In thousands) | |||||||||||
Balance at beginning of the period | $ | 8,853 | $ | 4,050 | |||||||
Provision | 6,390 | 11,690 | |||||||||
Utilization | -7,862 | -6,887 | |||||||||
Balance at end of the period | $ | 7,381 | $ | 8,853 | |||||||
Research and Development Expense, Policy [Policy Text Block] | Research and Development | ||||||||||
Research and development costs are charged to expense in the period in which they are incurred. | |||||||||||
Advertising Costs, Policy [Policy Text Block] | Advertising Costs | ||||||||||
Costs associated with advertising and promotions are expensed as incurred. Advertising expenses were $0.5 million for the years ended 2014, 2013 and 2012. | |||||||||||
Income Tax, Policy [Policy Text Block] | Income Taxes | ||||||||||
The Company accounts for income taxes using the asset and liability approach, which requires the recognition of tax benefits or expenses for temporary differences between the financial reporting and tax bases of assets and liabilities. A valuation allowance is established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company also recognizes a tax benefit from uncertain tax positions only if it is “more likely than not” that the position is sustainable based on its technical merits. The Company’s policy is to recognize interest and penalties on uncertain tax positions as a component of income tax expense. | |||||||||||
Earnings Per Share, Policy [Policy Text Block] | Net Income Per Share | ||||||||||
The Company calculates basic net income per share by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share takes into account the effect of potential dilutive common shares when the effect is dilutive. The effect of potential dilutive common shares, including common stock issuable upon exercise of outstanding stock options and stock purchase warrants, is computed using the treasury stock method. The effect of potential dilutive common shares from the conversion of the outstanding convertible preferred securities is computed using the as-if converted method at the stated conversion rate. The Company’s unvested RSUs contain non-forfeitable rights to dividends and therefore are considered to be participating securities in periods of net income. The calculation of basic and diluted net income per share excludes net income attributable to the unvested RSUs from the numerator and excludes the impact of unvested RSUs from the denominator. | |||||||||||
Significant_Accounting_Policie2
Significant Accounting Policies and Basis of Presentation (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Interest Costs Incurred [Table Text Block] | Interest costs associated with financing the Company’s assets during the construction period of Iridium NEXT have been capitalized. Capitalized interest and interest expense were as follows: | ||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||
Capitalized interest | $ | 62,019 | $ | 52,136 | $ | 29,305 | |||||
Interest expense | 954 | 583 | 114 | ||||||||
Total interest | $ | 62,973 | $ | 52,719 | $ | 29,419 | |||||
Share Based Compensation Classification [Table Text Block] | Classification of stock-based compensation for the years ended December 31, 2014 and 2013 is as follows: | ||||||||||
2014 | 2013 | ||||||||||
(In thousands) | |||||||||||
Property and equipment, net | $ | 1,176 | $ | 991 | |||||||
Inventory | 83 | 43 | |||||||||
Cost of subscriber equipment | 152 | 32 | |||||||||
Cost of services (exclusive of depreciation and amortization) | 824 | 550 | |||||||||
Research and development | 312 | 132 | |||||||||
Selling, general and administrative | 8,313 | 6,001 | |||||||||
Total stock-based compensation | $ | 10,860 | $ | 7,749 | |||||||
Schedule of Product Warranty Liability [Table Text Block] | Changes in the warranty reserve for the years ended December 31, 2014 and 2013 were as follows: | ||||||||||
2014 | 2013 | ||||||||||
(In thousands) | |||||||||||
Balance at beginning of the period | $ | 8,853 | $ | 4,050 | |||||||
Provision | 6,390 | 11,690 | |||||||||
Utilization | -7,862 | -6,887 | |||||||||
Balance at end of the period | $ | 7,381 | $ | 8,853 | |||||||
Cash_and_Cash_Equivalents_and_1
Cash and Cash Equivalents and Marketable Securities (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
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 December 31, 2014 and 2013: | |||||||||||||||
Recurring Fair | ||||||||||||||||
2014 | 2013 | Value Measurement | ||||||||||||||
(in thousands) | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 86,792 | $ | 86,074 | ||||||||||||
Money market funds | 105,497 | 88,769 | Level 1 | |||||||||||||
Commercial paper | 18,960 | 11,499 | Level 2 | |||||||||||||
Total Cash and cash equivalents | $ | 211,249 | $ | 186,342 | ||||||||||||
Marketable Securities [Table Text Block] | The following table summarizes the Company’s marketable securities as of December 31, 2014 and 2013: | |||||||||||||||
As of December 31, 2014 | ||||||||||||||||
Amortized | Gross | Gross | Estimated | Recurring Fair | ||||||||||||
Cost | Unrealized Gains | Unrealized Losses | Fair Value | Value Measurement | ||||||||||||
(in thousands) | ||||||||||||||||
Fixed-income debt securities | $ | 168,960 | $ | 397 | $ | -314 | $ | 169,043 | Level 2 | |||||||
Commercial paper | 78,915 | - | - | 78,915 | Level 2 | |||||||||||
U.S. Treasury Notes | 13,127 | 53 | -2 | 13,178 | Level 2 | |||||||||||
Total Marketable Securities | $ | 261,002 | $ | 450 | $ | -316 | $ | 261,136 | ||||||||
As of December 31, 2013 | ||||||||||||||||
Amortized | Gross | Gross | Estimated | Recurring Fair | ||||||||||||
Cost | Unrealized Gains | Unrealized Losses | Fair Value | Value Measurement | ||||||||||||
(in thousands) | ||||||||||||||||
Fixed-income debt securities | $ | 57,048 | $ | 45 | $ | -61 | $ | 57,032 | Level 2 | |||||||
Commercial paper | 19,615 | - | - | 19,615 | Level 2 | |||||||||||
Total Marketable Securities | $ | 76,663 | $ | 45 | $ | -61 | $ | 76,647 | ||||||||
Schedule of Investments Classified By Contractual Maturity Date [Table Text Block] | The following table presents the contractual maturities of the fixed income debt securities, commercial paper and U.S. treasury notes held as of December 31, 2014 and 2013: | |||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | |||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||
Cost | Value | Cost | Value | |||||||||||||
(in thousands) | ||||||||||||||||
Mature within one year | $ | 177,011 | $ | 177,145 | $ | 25,527 | $ | 25,527 | ||||||||
Mature after one year and within three years | 83,991 | 83,991 | 51,136 | 51,120 | ||||||||||||
Total | $ | 261,002 | $ | 261,136 | $ | 76,663 | $ | 76,647 | ||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Debt Disclosure [Abstract] | |||||||||||
Line Of Credit Facilities Interest Payable [Table Text Block] | The following table presents interest activity for the Credit Facility for the years ended December 31, 2014 and 2013 payable via cash or deemed loan: | ||||||||||
2014 | |||||||||||
Cash | Deemed Loan | Total | |||||||||
(in thousands) | |||||||||||
Beginning interest payable | $ | 2,446 | $ | 5,543 | $ | 7,989 | |||||
Interest incurred | 15,499 | 35,257 | 50,756 | ||||||||
Interest payments | -15,009 | -34,147 | -49,156 | ||||||||
Ending interest payable | $ | 2,936 | $ | 6,653 | $ | 9,589 | |||||
2013 | |||||||||||
Cash | Deemed Loan | Total | |||||||||
(in thousands) | |||||||||||
Beginning interest payable | $ | 1,630 | $ | 3,735 | $ | 5,365 | |||||
Interest incurred | 12,071 | 27,523 | 39,594 | ||||||||
Interest payments | -11,255 | -25,715 | -36,970 | ||||||||
Ending interest payable | $ | 2,446 | $ | 5,543 | $ | 7,989 | |||||
Schedule Of Debt Service Reserve Minimums [Table Text Block] | The Credit Facility will mature seven years after the start of the repayment period. In addition, the Company is required to maintain minimum debt service reserve levels, which are estimated as follows: | ||||||||||
At December 31, | Amount | ||||||||||
(in millions) | |||||||||||
2015 | $ | 91 | |||||||||
2016 | 113 | ||||||||||
2017 | 189 | ||||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment [Table Text Block] | Property and equipment consisted of the following at December 31: | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Satellite system | $ | 323,607 | $ | 337,677 | ||||
Ground system | 41,365 | 41,247 | ||||||
Equipment | 26,961 | 25,019 | ||||||
Internally developed software and purchased software | 95,406 | 68,141 | ||||||
Building and leasehold improvements | 29,980 | 28,063 | ||||||
517,319 | 500,147 | |||||||
Less: accumulated depreciation | -339,155 | -296,716 | ||||||
178,164 | 203,431 | |||||||
Land | 8,037 | 8,037 | ||||||
Construction in process: | ||||||||
Iridium NEXT systems under construction | 1,755,974 | 1,341,148 | ||||||
Other construction in process | 29,664 | 22,963 | ||||||
Total property and equipment, net of accumulated depreciation | $ | 1,971,839 | $ | 1,575,579 | ||||
Other Construction In Process [Table Text Block] | Other construction in process consisted of the following at December 31: | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Internally developed software | $ | 20,779 | $ | 17,582 | ||||
Equipment | 859 | 3,684 | ||||||
Ground system | 7,862 | 1,177 | ||||||
Building and leasehold improvements | 164 | 520 | ||||||
Total other construction in process | $ | 29,664 | $ | 22,963 | ||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | The Company has identifiable intangible assets as follows: | |||||||||||||
December 31, 2014 | ||||||||||||||
Useful | Gross | Accumulated | Net | |||||||||||
Lives | Carrying Value | Amortization | Carrying Value | |||||||||||
(In thousands) | ||||||||||||||
Indefinite life intangible assets: | ||||||||||||||
Trade names | Indefinite | $ | 21,195 | $ | - | $ | 21,195 | |||||||
Spectrum and licenses | Indefinite | 14,030 | - | 14,030 | ||||||||||
Total | 35,225 | - | 35,225 | |||||||||||
Definite life intangible assets: | ||||||||||||||
Customer relationships - government | 5 years | 20,355 | -20,355 | - | ||||||||||
Customer relationships - commercial | 5 years | 33,052 | -33,052 | - | ||||||||||
Core developed technology | 5 years | 4,842 | -4,842 | - | ||||||||||
Intellectual property | 16.5 years (1) | 16,439 | -4,248 | 12,191 | ||||||||||
Software | 5 years | 2,025 | -2,025 | - | ||||||||||
Total | 76,713 | -64,522 | 12,191 | |||||||||||
Total intangible assets | $ | 111,938 | $ | -64,522 | $ | 47,416 | ||||||||
December 31, 2013 | ||||||||||||||
Useful | Gross | Accumulated | Net | |||||||||||
Lives | Carrying Value | Amortization | Carrying Value | |||||||||||
(In thousands) | ||||||||||||||
Indefinite life intangible assets: | ||||||||||||||
Trade names | Indefinite | $ | 21,195 | $ | - | $ | 21,195 | |||||||
Spectrum and licenses | Indefinite | 14,030 | - | 14,030 | ||||||||||
Total | 35,225 | - | 35,225 | |||||||||||
Definite life intangible assets: | ||||||||||||||
Customer relationships - government | 5 years | 20,355 | -17,301 | 3,054 | ||||||||||
Customer relationships - commercial | 5 years | 33,052 | -28,094 | 4,958 | ||||||||||
Core developed technology | 5 years | 4,842 | -4,116 | 726 | ||||||||||
Intellectual property | 16.5 years (1) | 16,439 | -3,253 | 13,186 | ||||||||||
Software | 5 years | 2,025 | -1,722 | 303 | ||||||||||
Total | 76,713 | -54,486 | 22,227 | |||||||||||
Total intangible assets | $ | 111,938 | $ | -54,486 | $ | 57,452 | ||||||||
-1 | Intellectual property is amortized over the estimated useful life of the existing satellite systems and Iridium NEXT, which averages to 16.5 years. | |||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Future amortization expense with respect to intangible assets existing at December 31, 2014, by year and in the aggregate, is as follows: | |||||||||||||
Year ending December 31, | Amount | |||||||||||||
(In thousands) | ||||||||||||||
2015 | $ | 995 | ||||||||||||
2016 | 995 | |||||||||||||
2017 | 995 | |||||||||||||
2018 | 995 | |||||||||||||
2019 | 995 | |||||||||||||
Thereafter | 7,216 | |||||||||||||
Total estimated future amortization expense | $ | 12,191 | ||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
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 noncancelable operating leases at December 31, 2014, are as follows: | ||||
Operating | |||||
Year ending December 31, | Leases | ||||
(In thousands) | |||||
2015 | $ | 3,051 | |||
2016 | 2,782 | ||||
2017 | 2,890 | ||||
2018 | 2,972 | ||||
2019 | 3,055 | ||||
Thereafter | 6,814 | ||||
Total | $ | 21,564 | |||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Assumptions used in determining the fair value of the Company’s options were as follows: | |||||||||||||
Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Expected volatility | 41% - 43% | 41% - 42% | 42% - 45% | |||||||||||
Expected term (years) | 5.25 - 10.00 | 3.00 - 6.25 | 5.50 - 6.25 | |||||||||||
Expected dividends | 0% | 0% | 0% | |||||||||||
Risk free interest rate | 1.10% - 2.35% | 0.58% - 1.93% | 0.78% - 1.17% | |||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of the activity of the Company’s stock options as of December 31, 2014 is as follows: | |||||||||||||
Weighted- | ||||||||||||||
Weighted- | Average | |||||||||||||
Average | Remaining | Aggregate | ||||||||||||
Exercise Price | Contractual | Intrinsic | ||||||||||||
Shares | Per Share | Term (Years) | Value | |||||||||||
(In thousands, except years and per share data) | ||||||||||||||
Options outstanding at January 1, 2014 | 6,183 | $ | 7.89 | |||||||||||
Granted | 1,163 | $ | 6.85 | |||||||||||
Cancelled or expired | -414 | $ | 8.36 | |||||||||||
Exercised | -189 | $ | 7.98 | |||||||||||
Forfeited | -72 | $ | 7.11 | |||||||||||
Options outstanding at December 31, 2014 | 6,671 | $ | 7.68 | 6.9 | $ | 13,783 | ||||||||
Options vested and exercisable at December 31, 2014 | 4,626 | $ | 8.05 | 6.21 | $ | 7,856 | ||||||||
Options exercisable and expected to vest at December 31, 2014 | 6,634 | $ | 7.69 | 6.84 | $ | 13,674 | ||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | A summary of the Company’s activity for the year ended December 31, 2014 for outstanding RSUs is as follows: | |||||||||||||
Weighted- | ||||||||||||||
Average | ||||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
RSUs | Per RSU | |||||||||||||
(In thousands) | ||||||||||||||
Outstanding at January 1, 2014 | 1,306 | $ | 6.76 | |||||||||||
Granted | 1,430 | $ | 6.8 | |||||||||||
Forfeited | -78 | $ | 5.87 | |||||||||||
Released | -376 | $ | 6.72 | |||||||||||
Outstanding at December 31, 2014 | 2,282 | $ | 6.8 | |||||||||||
Vested at December 31, 2014 | 398 | |||||||||||||
Schedule of Unvested Restricted Stock Units Roll Forward [Table Text Block] | A summary of the Company’s activity for the year ended December 31, 2014 for unvested RSUs is as follows: | |||||||||||||
Weighted- | ||||||||||||||
Average | ||||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
RSUs | Per RSU | |||||||||||||
(In thousands) | ||||||||||||||
Non-vested at January 1, 2014 | 960 | $ | 6.5 | |||||||||||
Granted | 1,430 | $ | 6.8 | |||||||||||
Vested | -428 | $ | 6.51 | |||||||||||
Forfeited | -78 | $ | 5.87 | |||||||||||
Non-vested at December 31, 2014 | 1,884 | $ | 6.72 | |||||||||||
Segments_Significant_Customers1
Segments, Significant Customers, Supplier and Service Providers and Geographic Information (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Segment Reporting [Abstract] | |||||||||||
Schedule Of Long Lived Assets By Geographical Areas [Table Text Block] | Net property and equipment by geographic area was as follows as of December 31: | ||||||||||
2014 | 2013 | ||||||||||
(In thousands) | |||||||||||
United States | $ | 137,185 | $ | 118,011 | |||||||
Satellites in orbit | 57,494 | 96,231 | |||||||||
Iridium NEXT systems under construction | 1,755,973 | 1,341,148 | |||||||||
All others (1) | 21,187 | 20,189 | |||||||||
Total | $ | 1,971,839 | $ | 1,575,579 | |||||||
-1 | No one other country represented more than 10% of property and equipment, net. | ||||||||||
Revenue from External Customers by Geographic Areas [Table Text Block] | Revenue by geographic area was as follows for the years ended December 31: | ||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||
United States | $ | 194,060 | $ | 175,054 | $ | 178,145 | |||||
Canada | 44,933 | 49,541 | 53,279 | ||||||||
United Kingdom | 47,093 | 37,421 | 42,706 | ||||||||
Other countries (1) | 122,471 | 120,633 | 109,390 | ||||||||
Total | $ | 408,557 | $ | 382,649 | $ | 383,520 | |||||
-1 | No one other country represented more than 10% of revenue. | ||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | U.S. and foreign components of income before income taxes are presented below: | ||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||
U.S. income | $ | 115,858 | $ | 111,685 | $ | 94,719 | |||||
Foreign income (loss) | 594 | -1,220 | 299 | ||||||||
Total income before income taxes | $ | 116,452 | $ | 110,465 | $ | 95,018 | |||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of the Company’s income tax provision are as follows: | ||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||
Current taxes: | |||||||||||
Federal provision (benefit) | $ | 50 | $ | -12 | $ | -47 | |||||
State provision (benefit) | -90 | 7 | 96 | ||||||||
Foreign provision | 1,260 | 723 | 849 | ||||||||
Total current tax provision | 1,220 | 718 | 898 | ||||||||
Deferred taxes: | |||||||||||
Federal provision | 40,155 | 39,041 | 30,014 | ||||||||
State provision (benefit) | -77 | 8,240 | -610 | ||||||||
Foreign provision (benefit) | 165 | -51 | 85 | ||||||||
Total deferred tax provision | 40,243 | 47,230 | 29,489 | ||||||||
Total income tax provision | $ | 41,463 | $ | 47,948 | $ | 30,387 | |||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the U.S. federal statutory income tax expense to the Company’s effective income tax provision is as follows: | ||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands) | |||||||||||
U.S. federal statutory tax rate | $ | 40,766 | $ | 38,668 | $ | 33,256 | |||||
State taxes, net of federal benefit | 4,991 | 9,048 | 3,837 | ||||||||
State tax valuation allowance | 380 | 3,151 | 1,943 | ||||||||
Arizona tax law change | -5,525 | -3,975 | -9,524 | ||||||||
Other nondeductible expenses | 903 | 1,185 | 414 | ||||||||
Liability for uncertain tax positions | - | -146 | -45 | ||||||||
Tax credits and other adjustments | -994 | -849 | 223 | ||||||||
Foreign taxes and other items | 942 | 866 | 283 | ||||||||
Total income tax provision | $ | 41,463 | $ | 47,948 | $ | 30,387 | |||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of deferred tax assets and liabilities at December 31, 2014 and 2013 are as follows: | ||||||||||
As of December 31, | |||||||||||
2014 | 2013 | ||||||||||
(In thousands) | |||||||||||
Deferred tax assets | |||||||||||
Long-term contracts | $ | 49,207 | $ | 33,988 | |||||||
Deferred revenue | 6,357 | 4,086 | |||||||||
Federal, state and foreign net operating loss carryforwards and tax credits | 133,021 | 133,190 | |||||||||
Other | 24,571 | 21,571 | |||||||||
Total deferred tax assets | 213,156 | 192,835 | |||||||||
Valuation allowance | -6,806 | -6,567 | |||||||||
Net deferred tax assets | $ | 206,350 | $ | 186,268 | |||||||
Deferred tax liabilities | |||||||||||
Fixed assets and intangibles | $ | -95,797 | $ | -58,220 | |||||||
Research and development expenditures | -335,833 | -318,340 | |||||||||
Other | -8,753 | -3,457 | |||||||||
Total deferred tax liabilities | $ | -440,383 | $ | -380,017 | |||||||
Net deferred income tax liabilities | $ | -234,033 | $ | -193,749 | |||||||
Summary of Income Tax Contingencies [Table Text Block] | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits which includes related interest and penalties: | ||||||||||
2014 | 2013 | ||||||||||
(In thousands) | |||||||||||
Balance at January 1, | $ | 1,259 | $ | 1,405 | |||||||
Change attributable to tax positions taken in a prior period | -51 | 54 | |||||||||
Change attributable to tax positions taken in the current period | 8 | 7 | |||||||||
Decrease attributable to lapse of statute of limitations | -66 | -207 | |||||||||
Balance at December 31, | $ | 1,150 | $ | 1,259 | |||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
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 below: | ||||||||||
Year Ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(In thousands, except per share data) | |||||||||||
Numerator: | |||||||||||
Net income attributable to common stockholders | $ | 62,669 | $ | 55,517 | $ | 62,939 | |||||
Net income allocated to participating securities | -43 | -46 | -54 | ||||||||
Numerator for basic net income per share | 62,626 | 55,471 | 62,885 | ||||||||
Dividends on Series A Preferred Stock | 7,000 | 7,000 | 1,692 | ||||||||
Dividends on Series B Preferred Stock | 5,320 | - | - | ||||||||
Numerator for diluted net income per share | $ | 74,946 | $ | 62,471 | $ | 64,577 | |||||
Denominator: | |||||||||||
Denominator for basic net income per share - weighted average outstanding common shares | 88,080 | 76,909 | 74,239 | ||||||||
Dilutive effect of warrants | - | - | 1,272 | ||||||||
Dilutive effect of stock options | 85 | - | 6 | ||||||||
Dilutive effect of contingently issuable shares | - | - | - | ||||||||
Dilutive effect of Series A Preferred Stock | 10,602 | 10,602 | 2,665 | ||||||||
Dilutive effect of Series B Preferred Stock | 10,633 | - | - | ||||||||
Denominator for diluted net income per share | 109,400 | 87,511 | 78,182 | ||||||||
Net income per share attributable to common stockholders - basic | $ | 0.71 | $ | 0.72 | $ | 0.85 | |||||
Net income per share attributable to common stockholders - diluted | $ | 0.69 | $ | 0.71 | $ | 0.83 | |||||
Selected_Quarterly_Information1
Selected Quarterly Information (Unaudited) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | The following represents the Company’s unaudited quarterly results for the years ended December 31, 2014 and 2013: | |||||||||||||
Quarter Ended | ||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||
2014 | 2014 | 2014 | 2014 | |||||||||||
(In thousands, except per share data) | ||||||||||||||
Revenue | $ | 98,032 | $ | 102,521 | $ | 107,493 | $ | 100,511 | ||||||
Operating income | $ | 28,344 | $ | 29,713 | $ | 33,013 | $ | 31,841 | ||||||
Net income | $ | 16,543 | $ | 15,019 | $ | 20,388 | $ | 23,039 | ||||||
Net income per common share - basic | $ | 0.19 | $ | 0.14 | $ | 0.18 | $ | 0.2 | ||||||
Net income per common share -diluted | $ | 0.19 | $ | 0.14 | $ | 0.17 | $ | 0.19 | ||||||
Quarter Ended | ||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||
2013 | 2013 | 2013 | 2013 | |||||||||||
(In thousands, except per share data) | ||||||||||||||
Revenue | $ | 89,189 | $ | 94,684 | $ | 100,569 | $ | 98,207 | ||||||
Operating income | $ | 25,338 | $ | 28,848 | $ | 29,451 | $ | 26,257 | ||||||
Net income | $ | 14,934 | $ | 15,413 | $ | 16,585 | $ | 15,585 | ||||||
Net income per common share - basic | $ | 0.17 | $ | 0.18 | $ | 0.19 | $ | 0.18 | ||||||
Net income per common share -diluted | $ | 0.17 | $ | 0.18 | $ | 0.19 | $ | 0.18 | ||||||
Significant_Accounting_Policie3
Significant Accounting Policies and Basis of Presentation (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounting Policies [Line Items] | |||
Capitalized interest | $62,019 | $52,136 | $29,305 |
Interest expense | 954 | 583 | 114 |
Total interest | $62,973 | $52,719 | $29,419 |
Significant_Accounting_Policie4
Significant Accounting Policies and Basis of Presentation (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accounting Policies [Line Items] | ||
Share Based Compensation Expensed And Capitalized | $10,860 | $7,749 |
Property and Equipment [Member] | ||
Accounting Policies [Line Items] | ||
Share Based Compensation Expensed And Capitalized | 1,176 | 991 |
Inventory [Member] | ||
Accounting Policies [Line Items] | ||
Share Based Compensation Expensed And Capitalized | 83 | 43 |
Cost Of Subscriber Equipment [Member] | ||
Accounting Policies [Line Items] | ||
Share Based Compensation Expensed And Capitalized | 152 | 32 |
Cost Of Services [Member] | ||
Accounting Policies [Line Items] | ||
Share Based Compensation Expensed And Capitalized | 824 | 550 |
Research And Development [Member] | ||
Accounting Policies [Line Items] | ||
Share Based Compensation Expensed And Capitalized | 312 | 132 |
Selling General And Administrative [Member] | ||
Accounting Policies [Line Items] | ||
Share Based Compensation Expensed And Capitalized | $8,313 | $6,001 |
Significant_Accounting_Policie5
Significant Accounting Policies and Basis of Presentation (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accounting Policies [Line Items] | ||
Balance at beginning of the period | $8,853 | $4,050 |
Provision | 6,390 | 11,690 |
Utilization | -7,862 | -6,887 |
Balance at end of the period | $7,381 | $8,853 |
Significant_Accounting_Policie6
Significant Accounting Policies and Basis of Presentation (Details Textual) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 04, 2010 | |
Accounting Policies [Line Items] | ||||
Decrease In Warranty Provision | $5,300,000 | |||
Allowance for Doubtful Accounts Receivable, Current | 900,000 | 500,000 | ||
Deferred Finance Costs, Noncurrent, Net | 136,444,000 | 130,036,000 | ||
Tangible Asset Impairment Charges, Total | 2,200,000 | 2,000,000 | ||
Depreciation Impact Change Of Accounting Estimate | 3,800,000 | 19,600,000 | ||
Impact Of Change In Accounting Estimate On Basic Earnings Per Share | $0.03 | $0.17 | ||
Impact Of Change In Accounting Estimate On Diluted Earnings Per Share | $0.02 | $0.16 | ||
Maximum De Orbit Asset Retirement Obligation | 18,000,000 | |||
De Orbit Insurance Coverage | 2,500,000 | |||
Asset Retirement Obligation | 200,000 | |||
Advertising Expense | 500,000 | 500,000 | 500,000 | |
Restricted Cash and Cash Equivalents, Noncurrent | 86,104,000 | 81,223,000 | ||
Asset Impairment Charges, Total | 900,000 | 1,500,000 | ||
US Government Contract Future Minimum Payments Receivable Year One | 64,000,000 | |||
US Government Contract Future Minimum Payments Receivable Year Two | 72,000,000 | |||
US Government Contract Future Minimum Payments Receivable Year Three | 88,000,000 | |||
US Government Contract Future Minimum Payments Receivable Year Four | 88,000,000 | |||
US Government Contract Future Minimum Payments Receivable Year five | 88,000,000 | |||
Line Of Credit Facility Maximum Borrowing Capacity | 1,800,000,000 | 1,800,000,000 | ||
Standard Product Warranty Description | 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 | |||
Cash Flow Projections, Discount Rate | 12.00% | |||
Amount Offset In Warranty Related Initiatives | $1,800,000 | |||
Satellites [Member] | Maximum [Member] | ||||
Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 18 years | |||
Satellites [Member] | Minimum [Member] | ||||
Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 15 years | |||
Ground System [Member] | Maximum [Member] | ||||
Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 7 years | |||
Ground System [Member] | Minimum [Member] | ||||
Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
Equipment [Member] | Maximum [Member] | ||||
Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
Equipment [Member] | Minimum [Member] | ||||
Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Software [Member] | Maximum [Member] | ||||
Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 7 years | |||
Software [Member] | Minimum [Member] | ||||
Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Building [Member] | ||||
Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 39 years | |||
Building Improvements [Member] | Maximum [Member] | ||||
Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 39 years | |||
Building Improvements [Member] | Minimum [Member] | ||||
Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
Leasehold Improvements [Member] | ||||
Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Estimated Useful Lives | shorter of useful life or remaining lease term |
Cash_and_Cash_Equivalents_and_2
Cash and Cash Equivalents and Marketable Securities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Cash and cash equivalents: | ||||
Cash | $86,792 | $86,074 | ||
Total Cash and cash equivalents | 211,249 | 186,342 | 254,418 | 136,366 |
Fair Value, Inputs, Level 1 [Member] | ||||
Cash and cash equivalents: | ||||
Money market funds | 105,497 | 88,769 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Cash and cash equivalents: | ||||
Commercial paper | $18,960 | $11,499 |
Cash_and_Cash_Equivalents_and_3
Cash and Cash Equivalents and Marketable Securities (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Marketable securities: | ||
Available-for-sale Securities, Amortized Cost | $261,002 | $76,663 |
Available-for-sale Securities, Gross Unrealized Gains | 450 | 45 |
Available-for-sale Securities, Gross Unrealized Losses | -316 | -61 |
Total Marketable Securities | 261,136 | 76,647 |
Fair Value, Inputs, Level 2 [Member] | Commercial Paper [Member] | ||
Marketable securities: | ||
Available-for-sale Securities, Amortized Cost | 78,915 | 19,615 |
Available-for-sale Securities, Gross Unrealized Gains | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Losses | 0 | 0 |
Total Marketable Securities | 78,915 | 19,615 |
Fair Value, Inputs, Level 2 [Member] | US Treasury Securities [Member] | ||
Marketable securities: | ||
Available-for-sale Securities, Amortized Cost | 13,127 | |
Available-for-sale Securities, Gross Unrealized Gains | 53 | |
Available-for-sale Securities, Gross Unrealized Losses | -2 | |
Total Marketable Securities | 13,178 | |
Fair Value, Inputs, Level 2 [Member] | Fixed Income Securities [Member] | ||
Marketable securities: | ||
Available-for-sale Securities, Amortized Cost | 168,960 | 57,048 |
Available-for-sale Securities, Gross Unrealized Gains | 397 | 45 |
Available-for-sale Securities, Gross Unrealized Losses | -314 | -61 |
Total Marketable Securities | $169,043 | $57,032 |
Cash_and_Cash_Equivalents_and_4
Cash and Cash Equivalents and Marketable Securities (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Marketable securities: | ||
Mature within one year - Amortized Cost | $177,011 | $25,527 |
Mature after one year and within three years - Amortized Cost | 83,991 | 51,136 |
Available-for-sale Securities, Amortized Cost | 261,002 | 76,663 |
Mature within one year - Estimated Fair Value | 177,145 | 25,527 |
Mature after one year and within three years - Estimated Fair Value | 83,991 | 51,120 |
Total - Estimated Fair Value | $261,136 | $76,647 |
Cash_and_Cash_Equivalents_and_5
Cash and Cash Equivalents and Marketable Securities (Details Textual) (Series B Preferred Stock [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Series B Preferred Stock [Member] | |
Cash and Cash Equivalents [Line Items] | |
Preferred Stock, Dividend Rate, Percentage | 6.75% |
Equity_Transactions_and_Instru1
Equity Transactions and Instruments (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-14 | Dec. 31, 2008 | Sep. 29, 2009 | Jun. 30, 2014 | Feb. 14, 2013 | Feb. 14, 2015 | |
Equity Transactions and Instruments [Line Items] | |||||||||
Preferred stock, shares issued | 1,000,000 | 500,000 | |||||||
Preferred Stock, Liquidation Preference Per Share | $100 | ||||||||
Preferred Stock, Par Or Stated Value Per Share | $0.00 | ||||||||
Preferred Stock, Shares Authorized | 2,000,000 | ||||||||
Preferred Stock, Shares Subscribed but Unissued | 500,000 | ||||||||
Common Stock Purchase Price Per Share | $6.50 | ||||||||
Proceeds From Issuance Of Common Stock Gross | $50,000,000 | ||||||||
Proceeds from Issuance of Common Stock | 98,897,000 | 0 | 0 | ||||||
Baron Capital Group Inc [Member] | |||||||||
Equity Transactions and Instruments [Line Items] | |||||||||
Stock Issued During Period, Shares, New Issues | 504,413 | ||||||||
Common Stock [Member] | |||||||||
Equity Transactions and Instruments [Line Items] | |||||||||
Stock Issued During Period, Shares, New Issues | 0 | ||||||||
Public Offering [Member] | |||||||||
Equity Transactions and Instruments [Line Items] | |||||||||
Proceeds from Issuance of Common Stock | 49,900,000 | ||||||||
Public Offering [Member] | Common Stock [Member] | |||||||||
Equity Transactions and Instruments [Line Items] | |||||||||
Payments of Stock Issuance Costs | 100,000 | ||||||||
Stock Issued During Period, Shares, New Issues | 7,692,308 | 8,483,608 | |||||||
Underwriter [Member] | Common Stock [Member] | |||||||||
Equity Transactions and Instruments [Line Items] | |||||||||
Stock Issued During Period, Shares, New Issues | 1,106,558 | ||||||||
Series A Preferred Stock [Member] | |||||||||
Equity Transactions and Instruments [Line Items] | |||||||||
Preferred stock, shares issued | 1,000,000 | 1,000,000 | |||||||
Preferred Stock Conversion Rate | 10.6022 | ||||||||
Preferred Stock Convertible Conversion Price | $9.43 | ||||||||
Dividends Payable, Current | 292,000 | 292,000 | 273,000 | ||||||
Preferred Stock, Par Or Stated Value Per Share | $0.00 | $0.00 | |||||||
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 | |||||||
Dividends, Preferred Stock, Cash | 7,000,000 | 7,000,000 | |||||||
Series A Cumulative Convertible Perpetual Preferred Stock [Member] | |||||||||
Equity Transactions and Instruments [Line Items] | |||||||||
Preferred stock, shares issued | 1,000,000 | ||||||||
Preferred Stock, Liquidation Preference Per Share | $100 | ||||||||
Preferred Stock, Dividend Rate, Per-Dollar-Amount | $7 | ||||||||
Convertible Preferred Stock, Terms of Conversion | 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. | ||||||||
Series B Preferred Stock [Member] | |||||||||
Equity Transactions and Instruments [Line Items] | |||||||||
Preferred stock, shares issued | 500,000 | 0 | |||||||
Preferred Stock, Liquidation Preference Per Share | $250 | ||||||||
Preferred Stock Conversion Rate | 33.456 | ||||||||
Preferred Stock Convertible Conversion Price | $7.47 | ||||||||
Dividends Payable, Current | 351,000 | 0 | 0 | ||||||
Preferred Stock, Par Or Stated Value Per Share | $0.00 | $0.00 | |||||||
Preferred Stock, Dividend Rate, Percentage | 6.75% | ||||||||
Preferred Stock, Shares Authorized | 500,000 | 0 | |||||||
Dividends, Preferred Stock, Cash | 5,000,000 | ||||||||
Preferred Stock, Dividend Rate, Per-Dollar-Amount | $16.88 | ||||||||
Convertible Preferred Stock, Terms of Conversion | On or prior to May 15, 2019, in the event of certain specified fundamental changes, holders of the Series B Preferred Stock will have the right to convert some or all of their shares of Series B Preferred Stock into the greater of (i) a number of shares of the Companys common stock as subject to adjustment plus the make-whole premium, if any, and (ii) a number of shares of the Companys common stock equal to the lesser of (a) the liquidation preference divided by the market value of the Companys common stock on the effective date of such fundamental change and (b) 81.9672 (subject to adjustment). In certain circumstances, the Company may elect to cash settle any conversions in connection with a fundamental change. | ||||||||
Series B Preferred Stock [Member] | Public Offering [Member] | |||||||||
Equity Transactions and Instruments [Line Items] | |||||||||
Preferred stock, shares issued | 500,000 | ||||||||
Net Proceeds From Issuance Of Convertible Preferred Stock | 120,800,000 | ||||||||
Preferred Stock Purchase Price Per Share | $242.50 | ||||||||
Price Per Share Of Preferred Stock | $250 | ||||||||
Convertible Perpetual Preferred Discount Per Share on Issue of Shares | $7.50 | ||||||||
Payment Of Underwriters Discount | 3,800,000 | ||||||||
Payments of Stock Issuance Costs | 400,000 | ||||||||
7.00 Warrants [Member] | |||||||||
Equity Transactions and Instruments [Line Items] | |||||||||
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 | ||||||||
Class of Warrant or Right, Outstanding | 655,499 | ||||||||
Unexercised Warrants Price Per Share | $7 | ||||||||
11.50 Warrants [Member] | |||||||||
Equity Transactions and Instruments [Line Items] | |||||||||
Stock Issued During Period Units Of Initial Public Offering | 14,400,000 | ||||||||
Price Per Share Of Common Stock | $11.50 | ||||||||
Class of Warrant or Right, Outstanding | 277,021 | ||||||||
Class Of Warrant Exercise Price Of Warrants | $11.50 | $11.50 | |||||||
11.50 Warrants [Member] | Subsequent Event [Member] | |||||||||
Equity Transactions and Instruments [Line Items] | |||||||||
Unexercised Warrants Expired | 277,021 | ||||||||
Unexercised Warrants Price Per Share | $11.50 | ||||||||
Private Offering [Member] | Underwriter [Member] | |||||||||
Equity Transactions and Instruments [Line Items] | |||||||||
Common Stock Purchase Price Per Share | $6.10 | ||||||||
Proceeds from Issuance or Sale of Equity | 49,000,000 | ||||||||
Preferred Stock, Discount on Shares | 2,600,000 | ||||||||
Other Underwriting Expense | 200,000 | ||||||||
Private Offering [Member] | Series A Preferred Stock [Member] | |||||||||
Equity Transactions and Instruments [Line Items] | |||||||||
Preferred Stock, Dividend Rate, Percentage | 7.00% | ||||||||
Private Offering [Member] | Convertible Preferred Stock [Member] | |||||||||
Equity Transactions and Instruments [Line Items] | |||||||||
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 | ||||||||
Preferred Stock, Liquidation Preference Per Share | $250 |
Debt_Details
Debt (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | |||
Beginning interest payable, Total | $7,989 | $5,365 | |
Interest incurred, Total | 50,756 | 39,594 | 25,500 |
Interest payments, Total | -49,156 | -36,970 | |
Ending interest payable,Total | 9,589 | 7,989 | 5,365 |
Beginning interest payable, Cash | 2,446 | 1,630 | |
Interest incurred, Cash | 15,499 | 12,071 | |
Interest payments, Cash | -15,009 | -11,255 | |
Ending interest payable, Cash | 2,936 | 2,446 | 1,630 |
Beginning interest payable, Deemed Loan | 5,543 | 3,735 | |
Interest incurred, Deemed Loan | 35,257 | 27,523 | 17,800 |
Interest payments, Deemed Loan | -34,147 | -25,715 | |
Ending interest payable, Deemed Loan | $6,653 | $5,543 | $3,735 |
Debt_Details_1
Debt (Details 1) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Line of Credit Facility [Line Items] | |
2015 | $91 |
2016 | 113 |
2017 | $189 |
Debt_Details_Textual
Debt (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Mar. 31, 2014 | Oct. 04, 2010 | |
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $1,800,000,000 | $1,800,000,000 | |||||
Percentage of Company Obligations Insured | 95.00% | ||||||
Line of Credit Facility, Increase, Accrued Interest | 50,756,000 | 39,594,000 | 25,500,000 | ||||
Interest incurred, Deemed Loan | 35,257,000 | 27,523,000 | 17,800,000 | ||||
Percentage Of Additional Amount Drawn To Cover Policy Premium | 6.49% | ||||||
Line of Credit Facility, Commitment Fee Percentage | 0.80% | ||||||
Undrawn Credit Facility Fees | 5,825,000 | 7,708,000 | 10,232,000 | ||||
Percentage Of Costs Under Development Contract | 85.00% | ||||||
Minimum Required Cash Reserve Balance For Credit Facility | 86,000,000 | ||||||
Long-Term Line Of Credit, Noncurrent | 1,291,401,000 | 1,039,203,000 | |||||
Minimum Cash Balance Under Line Of Credit | 25,000,000 | ||||||
Line of Credit Facility, Covenant Terms | a debt-to-equity ratio, which is calculated as the ratio of total net debt to the aggregate of total net debt and total stockholders’ equity, of no more than 0.7 to 1, measured each June 30 and December 31;specified maximum levels of annual capital expenditures (excluding expenditures on the construction of Iridium NEXT satellites) through the year ending December 31, 2024;specified minimum levels of consolidated operational earnings before interest, taxes, depreciation and amortization, or operational EBITDA, for the 12-month periods ending each December 31 and June 30 through December 31, 2017;specified minimum cash flow requirements from customers who have hosted payloads on our satellites during the 12-month periods ending each December 31 and June 30, beginning June 30, 2016 and ending on December 31, 2017;a debt service coverage ratio, measured during the repayment period, of not less than 1 to 1.5; and specified maximum leverage levels during the repayment period that decline from a ratio of 4.73 to 1 for the twelve months ending June 30, 2018 to a ratio of 2.36 to 1 for the twelve months ending December 31, 2024. | ||||||
Available Cash Balance As Defined Under Line Of Credit | 290,200,000 | ||||||
Available Cure Balance As Defined Under Line Of Credit | 7,500,000 | ||||||
Line Of Credit Facility Delay Of Contributions To Debt Service Reserve Account Description | The Supplemental Agreement includes revised financial covenant levels. The Supplemental Agreement also delays, until 2017, a portion of the contributions that the Company had been scheduled to make during 2014, 2015 and 2016 to the debt service reserve account that the Company is required to maintain under the Credit Facility. The Supplemental Agreement delays $22 million of the Companys 2014 contributions, $22 million of the Companys 2015 contributions and $32 million of the Companys 2016 contributions, for a total of $76 million | ||||||
Line Of Credit Facility Minimum Cash Reserve Required Prior To Execution Of Supplemental Agreement | 94,500,000 | ||||||
Line Of Credit Facility Minimum Cash Reserve Required After To Execution Of Supplemental Agreement | 83,500,000 | ||||||
Cash Restricted For Debt Service Reserve Decrease | 11,000,000 | ||||||
Line of Credit Facility, Frequency of Payment and Payment Terms | Scheduled semi-annual principal repayments will begin six months after the earlier of (i) the successful deployment of a specified number of Iridium NEXT satellites or (ii) September 30, 2017. | ||||||
Tranche One [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,537,500,000 | ||||||
Line Of Credit Facility Pro Rata Rate | 4.96% | ||||||
Line Of Credit Facility Interest Rate On Deemed Loan | 3.56% | ||||||
Tranche Two [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 262,500,000 | ||||||
Line Of Credit Facility Pro Rata Rate Description | (LIBOR) plus 1.95% | ||||||
Line Of Credit Facility Interest Rate On Deemed Loan Description | LIBOR plus 0.55% | ||||||
Line of Credit [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Remaining Borrowing Capacity | $508,600,000 | ||||||
Debt To Equity Ratio As Defined Under Line Of Credit | 0.47 to 1 |
Boeing_Operations_and_Maintena1
Boeing Operations and Maintenance Agreements (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Boeing Operations and Maintenance Agreements [Line Items] | |||
Satellite Operations And Maintenance Costs | $30.70 | $30.10 | $31.90 |
De Orbit Plan [Member] | |||
Boeing Operations and Maintenance Agreements [Line Items] | |||
De-Orbit Plan Cost Description | approximately $18.0 million plus an amount equivalent to the premium of the mass de-orbit insurance coverage to be paid to Boeing |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $517,319 | $500,147 |
Less: accumulated depreciation | -339,155 | -296,716 |
Property plant and equipment net excluding construction in process and land | 178,164 | 203,431 |
Land | 8,037 | 8,037 |
Construction in process: | ||
Iridium NEXT systems under construction | 1,755,974 | 1,341,148 |
Other construction in process | 29,664 | 22,963 |
Total property and equipment, net of accumulated depreciation | 1,971,839 | 1,575,579 |
Satellite System [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 323,607 | 337,677 |
Ground System [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 41,365 | 41,247 |
Construction in process: | ||
Other construction in process | 7,862 | 1,177 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 26,961 | 25,019 |
Construction in process: | ||
Other construction in process | 859 | 3,684 |
Software Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 95,406 | 68,141 |
Construction in process: | ||
Other construction in process | 20,779 | 17,582 |
Building And Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 29,980 | 28,063 |
Construction in process: | ||
Other construction in process | $164 | $520 |
Property_and_Equipment_Details1
Property and Equipment (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Total other construction in process | $29,664 | $22,963 |
Software Development [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total other construction in process | 20,779 | 17,582 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total other construction in process | 859 | 3,684 |
Ground System [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total other construction in process | 7,862 | 1,177 |
Building And Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total other construction in process | $164 | $520 |
Property_and_Equipment_Details2
Property and Equipment (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $62.70 | $62 | $68.10 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Indefinite life intangible assets: | ||||
Total Gross Carrying Value | $35,225 | $35,225 | ||
Total Accumulated Amortization | 0 | 0 | ||
Total Net Carrying Value | 35,225 | 35,225 | ||
Definite life intangible assets: | ||||
Total Gross Carrying Value | 76,713 | 76,713 | ||
Total intangible assets, Gross Carrying Value | 111,938 | 111,938 | ||
Total, Accumulated Amortization | -64,522 | -54,486 | ||
Total intangible assets, Accumulated Amortization | -64,522 | -54,486 | ||
Total, Net Carrying Value | 12,191 | 22,227 | ||
Total intangible assets, Net Carrying Value | 47,416 | 57,452 | ||
Customer Relationships Government [Member] | ||||
Definite life intangible assets: | ||||
Useful Lives | 5 years | 5 years | ||
Total Gross Carrying Value | 20,355 | 20,355 | ||
Total, Accumulated Amortization | -20,355 | -17,301 | ||
Total, Net Carrying Value | 0 | 3,054 | ||
Customer Relationships Commercial [Member] | ||||
Definite life intangible assets: | ||||
Useful Lives | 5 years | 5 years | ||
Total Gross Carrying Value | 33,052 | 33,052 | ||
Total, Accumulated Amortization | -33,052 | -28,094 | ||
Total, Net Carrying Value | 0 | 4,958 | ||
Core Developed Technology [Member] | ||||
Definite life intangible assets: | ||||
Useful Lives | 5 years | 5 years | ||
Total Gross Carrying Value | 4,842 | 4,842 | ||
Total, Accumulated Amortization | -4,842 | -4,116 | ||
Total, Net Carrying Value | 0 | 726 | ||
Intellectual Property [Member] | ||||
Definite life intangible assets: | ||||
Useful Lives | 16 years 6 months | [1] | 16 years 6 months | [1] |
Total Gross Carrying Value | 16,439 | 16,439 | ||
Total, Accumulated Amortization | -4,248 | -3,253 | ||
Total, Net Carrying Value | 12,191 | 13,186 | ||
Software Development [Member] | ||||
Definite life intangible assets: | ||||
Useful Lives | 5 years | 5 years | ||
Total Gross Carrying Value | 2,025 | 2,025 | ||
Total, Accumulated Amortization | -2,025 | -1,722 | ||
Total, Net Carrying Value | 0 | 303 | ||
Trade Names [Member] | ||||
Indefinite life intangible assets: | ||||
Total Gross Carrying Value | 21,195 | 21,195 | ||
Total Accumulated Amortization | 0 | 0 | ||
Total Net Carrying Value | 21,195 | 21,195 | ||
Spectrum And Licensing [Member] | ||||
Indefinite life intangible assets: | ||||
Total Gross Carrying Value | 14,030 | 14,030 | ||
Total Accumulated Amortization | 0 | 0 | ||
Total Net Carrying Value | $14,030 | $14,030 | ||
[1] | Intellectual property is amortized over the estimated useful life of the existing satellite systems and Iridium NEXT, which averages to 16.5 years. |
Intangible_Assets_Details_1
Intangible Assets (Details 1) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets [Line Items] | |
2015 | $995 |
2016 | 995 |
2017 | 995 |
2018 | 995 |
2019 | 995 |
Thereafter | 7,216 |
Total estimated future amortization expense | $12,191 |
Intangible_Assets_Details_Text
Intangible Assets (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | |||
Intellectual Property Useful Life | 16 years 6 months | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years 6 months | ||
Amortization of Intangible Assets | $10 | $13 | $13 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Year ending December 31, | |
2015 | $3,051 |
2016 | 2,782 |
2017 | 2,890 |
2018 | 2,972 |
2019 | 3,055 |
Thereafter | 6,814 |
Total | $21,564 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details Textual) (USD $) | 12 Months Ended | 3 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Jun. 30, 2010 | Mar. 31, 2010 | Jun. 30, 2013 | |
Commitments And Contingencies Disclosures [Line Items] | |||||||
Construction in Progress, Gross | $1,755,974,000 | $1,341,148,000 | |||||
Lease Extended Period | 2024 | ||||||
Operating Leases, Rent Expense | 3,300,000 | 3,200,000 | 3,200,000 | ||||
Construction In Progress Funded By Credit Facility | 1,129,800,000 | ||||||
Invoice Received Payment Term Description | The Company currently uses the Credit Facility to pay 85% of each invoice received from Thales under the FSD, with the remaining 15% funded from cash on hand. Once the Credit Facility is fully drawn, the Company expects to pay 100% of each invoice received from Thales from cash and marketable securities on hand as well as internally generated cash flow | ||||||
Maximum [Member] | |||||||
Commitments And Contingencies Disclosures [Line Items] | |||||||
Operating Lease Agreements Renewal Term | 10 years | ||||||
Minimum [Member] | |||||||
Commitments And Contingencies Disclosures [Line Items] | |||||||
Operating Lease Agreements Renewal Term | 1 year | ||||||
Section One [Member] | |||||||
Commitments And Contingencies Disclosures [Line Items] | |||||||
Insurance Policy Liability Limit Per Occurrence | 1,000,000,000 | ||||||
Section Two [Member] | |||||||
Commitments And Contingencies Disclosures [Line Items] | |||||||
Insurance Policy Liability Limit Per Occurrence | 500,000,000,000 | ||||||
Insurance Policy Liability Limit Aggregate | 1,000,000,000 | ||||||
Deductible For Claims | 250,000 | ||||||
Section Three [Member] | |||||||
Commitments And Contingencies Disclosures [Line Items] | |||||||
Insurance Policy Liability Limit Per Occurrence | 500,000,000,000 | ||||||
Insurance Policy Liability Limit Aggregate | 1,000,000,000 | ||||||
Deductible For Claims | 250,000 | ||||||
Insurance Policy Premium | 2,500,000 | ||||||
FSD [Member] | |||||||
Commitments And Contingencies Disclosures [Line Items] | |||||||
Commitments Price For Design and Build Of Satellites | 2,300,000,000 | ||||||
Thales Alenia Space France [Member] | |||||||
Commitments And Contingencies Disclosures [Line Items] | |||||||
Construction in Progress, Gross | 1,331,100,000 | ||||||
Contractual Obligation, Due in Next Twelve Months | 554,200,000 | ||||||
Contractual Obligation, Due in Second Year | 136,000,000 | ||||||
Contractual Obligation, Due in Third Year | 166,700,000 | ||||||
Contractual Obligation, Due in Fourth Year | 64,700,000 | ||||||
Space Exploration Technologies Corp [Member] | |||||||
Commitments And Contingencies Disclosures [Line Items] | |||||||
Construction in Progress, Gross | 152,600,000 | ||||||
Maximum Commitment Amount Due To Primary Launch Service Provider | 453,100,000 | ||||||
Contractual Obligation, Due in Next Twelve Months | 150,000,000 | ||||||
Contractual Obligation, Due in Second Year | 126,000,000 | ||||||
Contractual Obligation, Due in Third Year | 24,500,000 | ||||||
Refundable Deposit | 3,000,000 | ||||||
Kosmotras [Member] | |||||||
Commitments And Contingencies Disclosures [Line Items] | |||||||
Construction in Progress, Gross | 28,800,000 | ||||||
Purchase Obligation Amount For Single Launch | 51,800,000 | ||||||
Contractual Obligation, Due in Next Twelve Months | 23,000,000 | ||||||
Supplier Purchase Commitments [Member] | |||||||
Commitments And Contingencies Disclosures [Line Items] | |||||||
Purchase Obligation | 52,400,000 | ||||||
Contractual Obligation, Due in Second Year | 52,300,000 | ||||||
Contractual Obligation, Due in Third Year | 100,000 | ||||||
Other Inventory, Materials, Supplies and Merchandise under Consignment, Gross | 1,700,000 | 2,400,000 | |||||
space vehicle [Member] | Section Two [Member] | |||||||
Commitments And Contingencies Disclosures [Line Items] | |||||||
Insurance Policy Liability Limit Aggregate | $500,000,000,000 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility (minimum) | 41.00% | 41.00% | 42.00% |
Expected volatility (maximum) | 43.00% | 42.00% | 45.00% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Risk free interest rate (minimum) | 1.10% | 0.58% | 0.78% |
Risk free interest rate (maximum) | 2.35% | 1.93% | 1.17% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 10 years | 6 years 3 months | 6 years 3 months |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 5 years 3 months | 3 years | 5 years 6 months |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 1) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Schedule Of Share Based Compensation Company Stock Options Activity [Line Items] | |
Options outstanding at January 1, 2014 - Shares | 6,183 |
Options Granted - Shares | 1,163 |
Options Cancelled or expired - Shares | -414 |
Options Exercised - Shares | -189 |
Options Forfeited - Shares | -72 |
Options outstanding at December 31, 2014 - Shares | 6,671 |
Options vested and exercisable at December 31, 2014 - Shares | 4,626 |
Options exercisable and expected to vest at December 31, 2014 - Shares | 6,634 |
Options outstanding at January 1, 2014 - Weighted Average Exercise Price Per Share | $7.89 |
Options Granted - Weighted Average Exercise Price Per Share | $6.85 |
Options Cancelled or expired - Weighted Average Exercise Price Per Share | $8.36 |
Options Exercised - Weighted Average Exercise Price Per Share | $7.98 |
Options Forfeited - Weighted Average Exercise Price Per Share | $7.11 |
Options outstanding at December 31, 2014 - Weighted Average Exercise Price Per Share | $7.68 |
Options vested and exercisable at December 31, 2014 - Weighted Average Exercise Price Per Share | $8.05 |
Options exercisable and expected to vest at December 31, 2014 - Weighted Average Exercise Price Per Share | $7.69 |
Options outstanding at December 31, 2014 - Weighted Average Remaining Contractual Term (Years) | 6 years 10 months 24 days |
Options vested and exercisable at December 31, 2014 - Weighted Average Remaining Contractual Term (Years) | 6 years 2 months 16 days |
Options exercisable and expected to vest at December 31, 2014 - Weighted Average Remaining Contractual Term (Years) | 6 years 10 months 2 days |
Options outstanding at December 31, 2014 - Aggregate Intrinsic Value | $13,783 |
Options vested and exercisable at December 31, 2014 - Aggregate Intrinsic Value | 7,856 |
Options exercisable and expected to vest at December 31, 2014 - Aggregate Intrinsic Value | $13,674 |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 2) (Outstanding Restricted Stock Units [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Outstanding Restricted Stock Units [Member] | |
Schedule Of Share Based Compensation Restricted Stock Units Award Activity [Line Items] | |
Outstanding - Restricted Stock Units | 1,306,000 |
Granted - Restricted Stock Units | 1,430,000 |
Forfeited - Restricted Stock Units | -78,000 |
Released - Restricted Stock Units | -376,000 |
Outstanding - Restricted Stock Units | 2,282,000 |
Vested - Restricted Stock Units | 398,000 |
Outstanding - Weighted Average Grant Date Fair Value Per RSU | $6.76 |
Granted - Weighted Average Grant Date Fair Value Per RSU | $6.80 |
Forfeited - Weighted Average Grant Date Fair Value Per RSU | $5.87 |
Released - Weighted Average Grant Date Fair Value Per RSU | $6.72 |
Outstanding - Weighted Average Grant Date Fair Value Per RSU | $6.80 |
StockBased_Compensation_Detail3
Stock-Based Compensation (Details 3) (Unvested Restricted Stock Units [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Unvested Restricted Stock Units [Member] | |
Schedule Of Unvested Restricted Stock Units [Line Items] | |
Non-vested - Restricted Stock Units | 960,000 |
Granted - Restricted Stock Units | 1,430,000 |
Vested - Restricted Stock Units | -428,000 |
Forfeited - Restricted Stock Units | -78,000 |
Non-vested - Restricted Stock Units | 1,884,000 |
Non-vested - Weighted Average Grant Date Fair Value Per RSU | $6.50 |
Granted - Weighted Average Grant Date Fair Value Per RSU | $6.80 |
Vested - Weighted Average Grant Date Fair Value Per RSU | $6.51 |
Forfeited - Weighted Average Grant Date Fair Value Per RSU | $5.87 |
Non-vested - Weighted Average Grant Date Fair Value Per RSU | $6.72 |
StockBased_Compensation_Detail4
Stock-Based Compensation (Details Textual) (USD $) | 9 Months Ended | 12 Months Ended | 1 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2014 | Jan. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Quarterly Vesting Percentage | 33.00% | 34.00% | ||||
Allocated Share-based Compensation Expense | $4.30 | $6 | $6 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $2.97 | $2.60 | $3.31 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | 5.1 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 4 months 24 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 4.6 | 6.3 | 6.7 | |||
Restricted Stock or Unit Expense | 6.5 | 1.7 | 2.1 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,163,000 | |||||
Non Employee [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grant Date Fair Value Of Stock Options | 0.1 | 0.3 | ||||
Quarterly Vesting Percentage | 33.00% | 25.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 20,000 | 112,000 | ||||
2012 Stock Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 13,416,019 | |||||
Employee Stock Option [Member] | Non Employee [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grant Date Fair Value Of Stock Options | 0.2 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 45,000 | |||||
Employee Stock Option [Member] | Employee [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grant Date Fair Value Of Stock Options | 3 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 987,000 | |||||
First Anniversary Vesting Percentage | 25.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | ten years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
First Anniversary Vesting Percentage | 25.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||
Restricted Stock Units (RSUs) [Member] | Non Employee [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grant Date Fair Value Of Restricted Stock Units | 0.7 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 108,000 | |||||
Quarterly Vesting Percentage | 25.00% | |||||
Service Based Rsu [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 786,000 | |||||
Performance Based Rsu [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 207,000 | |||||
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% | |||||
Performance Based Rsu [Member] | Employee [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 323,000 | |||||
March 2014 Restricted Stock Units [Member] | Employee [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grant Date Fair Value Of Restricted Stock Units | 1.3 | |||||
June 2014 Restricted Stock Units [Member] | Employee [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grant Date Fair Value Of Restricted Stock Units | $2.60 |
Segments_Significant_Customers2
Segments, Significant Customers, Supplier and Service Providers and Geographic Information (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Segment Reporting Information [Line Items] | ||||
Property, Plant and Equipment, Net | $1,971,839 | $1,575,579 | ||
UNITED STATES | ||||
Segment Reporting Information [Line Items] | ||||
Property, Plant and Equipment, Net | 137,185 | 118,011 | ||
Satellites In Orbit [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Property, Plant and Equipment, Net | 57,494 | 96,231 | ||
Iridium Next Systems [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Property, Plant and Equipment, Net | 1,755,973 | 1,341,148 | ||
All Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Property, Plant and Equipment, Net | $21,187 | [1] | $20,189 | [1] |
[1] | No one other country represented more than 10% of property and equipment, net. |
Segments_Significant_Customers3
Segments, Significant Customers, Supplier and Service Providers and Geographic Information (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Segment Reporting Information [Line Items] | ||||||||||||||
Total Revenue | $100,511 | $107,493 | $102,521 | $98,032 | $98,207 | $100,569 | $94,684 | $89,189 | $408,557 | $382,649 | $383,520 | |||
UNITED STATES | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Total Revenue | 194,060 | 175,054 | 178,145 | |||||||||||
CANADA | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Total Revenue | 44,933 | 49,541 | 53,279 | |||||||||||
UNITED KINGDOM | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Total Revenue | 47,093 | 37,421 | 42,706 | |||||||||||
Other Countries [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Total Revenue | $122,471 | [1] | $120,633 | [1] | $109,390 | [1] | ||||||||
[1] | No one other country represented more than 10% of revenue. |
Segments_Significant_Customers4
Segments, Significant Customers, Supplier and Service Providers and Geographic Information (Details Textual) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Sales Revenue, Net [Member] | Large Commercial Customer One [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 10.00% | ||
Sales Revenue, Net [Member] | Large Commercial Customer Two [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 10.00% | ||
Sales Revenue, Net [Member] | Prime Contracts with U.S. Government [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 21.00% | 20.00% | 20.00% |
Accounts Receivable [Member] | Large Commercial Customer One [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 12.00% | 14.00% | |
Accounts Receivable [Member] | Prime Contracts with U.S. Government [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 30.00% | 34.00% | |
Accounts Receivable [Member] | Single Customet One [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 11.00% |
Employee_Benefit_Plan_Details_
Employee Benefit Plan (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan Employee Matching Contribution Annual Vesting Percentage | 100.00% | ||
Maximum Employee Contribution Percentage | 100.00% | ||
Maximum Deferral Contribution Percentage | 5.00% | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $1.30 | $1.20 | $1.20 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Line Items] | |||
U.S. income | $115,858 | $111,685 | $94,719 |
Foreign income (loss) | 594 | -1,220 | 299 |
Total income before income taxes | $116,452 | $110,465 | $95,018 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current taxes: | |||
Federal provision (benefit) | $50 | ($12) | ($47) |
State provision (benefit) | -90 | 7 | 96 |
Foreign provision | 1,260 | 723 | 849 |
Total current tax provision | 1,220 | 718 | 898 |
Deferred taxes: | |||
Federal provision | 40,155 | 39,041 | 30,014 |
State provision (benefit) | -77 | 8,240 | -610 |
Foreign provision (benefit) | 165 | -51 | 85 |
Total deferred tax provision | 40,243 | 47,230 | 29,489 |
Total income tax provision | $41,463 | $47,948 | $30,387 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Line Items] | |||
U.S. federal statutory tax rate | $40,766 | $38,668 | $33,256 |
State taxes, net of federal benefit | 4,991 | 9,048 | 3,837 |
State tax valuation allowance | 380 | 3,151 | 1,943 |
Arizona tax law change | -5,525 | -3,975 | -9,524 |
Other nondeductible expenses | 903 | 1,185 | 414 |
Liability for uncertain tax positions | 0 | -146 | -45 |
Tax credits and other adjustments | -994 | -849 | 223 |
Foreign taxes and other items | 942 | 866 | 283 |
Total income tax provision | $41,463 | $47,948 | $30,387 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets | ||
Long-term contracts | $49,207 | $33,988 |
Deferred revenue | 6,357 | 4,086 |
Federal, state and foreign net operating loss carryforwards and tax credits | 133,021 | 133,190 |
Other | 24,571 | 21,571 |
Total deferred tax assets | 213,156 | 192,835 |
Valuation allowance | -6,806 | -6,567 |
Net deferred tax assets | 206,350 | 186,268 |
Deferred tax liabilities | ||
Fixed assets and intangibles | -95,797 | -58,220 |
Research and development expenditures | -335,833 | -318,340 |
Other | -8,753 | -3,457 |
Total deferred tax liabilities | -440,383 | -380,017 |
Net deferred income tax liabilities | ($234,033) | ($193,749) |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Taxes [Line Items] | ||
Balance at January 1, | $1,259 | $1,405 |
Change attributable to tax positions taken in a prior period | -51 | 54 |
Change attributable to tax positions taken in the current period | 8 | 7 |
Decrease attributable to lapse of statute of limitations | -66 | -207 |
Balance at December 31, | $1,150 | $1,259 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Line Items] | |||
Deferred Tax Assets, in Process Research and Development | $4,400,000 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | 1,300,000 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 2,300,000 | ||
Foreign Tax Credit Carry Forward Valuation Allowance Increase | 700,000 | ||
Unrecognized Tax Benefits, Beginning Balance | 1,150,000 | 1,259,000 | 1,405,000 |
Unrecognized Tax Benefits Expected Reverse Rolling Twelve Months | 300,000 | ||
Income Tax Reconciliation Arizona Tax Law Change | -5,525,000 | -3,975,000 | -9,524,000 |
Maximum [Member] | |||
Income Taxes [Line Items] | |||
Research And Development Tax Credit Expiration Date | 2034 | ||
Foreign Tax Credit Carryforward Expiration Dates | 2024 | ||
Operating Loss Carryforward Expiration Dates | 2033 | ||
Minimum [Member] | |||
Income Taxes [Line Items] | |||
Research And Development Tax Credit Expiration Date | 2028 | ||
Foreign Tax Credit Carryforward Expiration Dates | 2020 | ||
Operating Loss Carryforward Expiration Dates | 2015 | ||
Domestic Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards | 323,600,000 | ||
State and Local Jurisdiction [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards Valuation Allowance Increase | 400,000 | ||
Foreign Tax Authority [Member] | |||
Income Taxes [Line Items] | |||
Operating Loss Carryforwards | $100,000 |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator: | |||||||||||
Net income attributable to common stockholders | $62,669 | $55,517 | $62,939 | ||||||||
Net income allocated to participating securities | -43 | -46 | -54 | ||||||||
Numerator for basic net income per share | 62,626 | 55,471 | 62,885 | ||||||||
Numerator for diluted net income per share | 74,946 | 62,471 | 64,577 | ||||||||
Denominator: | |||||||||||
Denominator for basic net income per share - weighted average outstanding common shares | 88,080 | 76,909 | 74,239 | ||||||||
Dilutive effect of contingently issuable shares | 0 | 0 | 0 | ||||||||
Denominator for diluted net income per share | 109,400 | 87,511 | 78,182 | ||||||||
Net income per share attributable to common stockholders - basic (in dollars per share) | $0.20 | $0.18 | $0.14 | $0.19 | $0.18 | $0.19 | $0.18 | $0.17 | $0.71 | $0.72 | $0.85 |
Net income per share attributable to common stockholders - diluted (in dollars per share) | $0.19 | $0.17 | $0.14 | $0.19 | $0.18 | $0.19 | $0.18 | $0.17 | $0.69 | $0.71 | $0.83 |
Equity Option [Member] | |||||||||||
Denominator: | |||||||||||
Dilutive effect | 85 | 0 | 6 | ||||||||
Warrant [Member] | |||||||||||
Denominator: | |||||||||||
Dilutive effect | 0 | 0 | 1,272 | ||||||||
Series A Preferred Stock [Member] | |||||||||||
Numerator: | |||||||||||
Dividends on Preferred Stock | 7,000 | 7,000 | 1,692 | ||||||||
Denominator: | |||||||||||
Dilutive effect of Preferred Stock | 10,602 | 10,602 | 2,665 | ||||||||
Series B Preferred Stock [Member] | |||||||||||
Numerator: | |||||||||||
Dividends on Preferred Stock | $5,320 | $0 | $0 | ||||||||
Denominator: | |||||||||||
Dilutive effect of Preferred Stock | 10,633 | 0 | 0 |
Net_Income_Per_Share_Details_T
Net Income Per Share (Details Textual) | 1 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities Excluded from Computation of Earnings Per Share, Amount | 1.3 | 0.9 | 0.5 | |
Subsequent Event Stock Options Issued | 0.1 | |||
Warrant [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.3 | 0.4 | 0.3 | |
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3.6 | 5.2 | 4.3 | |
Subsequent Event Restricted Stock Units Issued | 0.2 |
Selected_Quarterly_Information2
Selected Quarterly Information (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information [Line Items] | |||||||||||
Revenue | $100,511 | $107,493 | $102,521 | $98,032 | $98,207 | $100,569 | $94,684 | $89,189 | $408,557 | $382,649 | $383,520 |
Operating income | 31,841 | 33,013 | 29,713 | 28,344 | 26,257 | 29,451 | 28,848 | 25,338 | 122,911 | 109,894 | 105,074 |
Net income | $23,039 | $20,388 | $15,019 | $16,543 | $15,585 | $16,585 | $15,413 | $14,934 | $74,989 | $62,517 | $64,631 |
Net income per common share - basic (in dollars per share) | $0.20 | $0.18 | $0.14 | $0.19 | $0.18 | $0.19 | $0.18 | $0.17 | $0.71 | $0.72 | $0.85 |
Net income per common share -diluted (in dollars per share) | $0.19 | $0.17 | $0.14 | $0.19 | $0.18 | $0.19 | $0.18 | $0.17 | $0.69 | $0.71 | $0.83 |